Archive for 'Business Planning' category
- Hoop Dreams
Posted by Beth Austin
Last week I heard Steve Abbott, the University of Maine's athletic director, speak at a local chamber event. Throughout his talk, he provided a number of examples of the broad-reaching effects of participating in athletics. In addition to the advantages for the college, he also suggested other benefits with "real-world" applicability for participants. Notably, he cited a recent study that found that 81% of women who are successful in business (defined as having an annual salary of $75K per year or higher) defined themselves as "athletic." We've all been subjected - to the point of tedium - with various sports-themed business analogies over the years, but, nevertheless, Abbott's example struck me as interesting. What is the connection between successful women and athletics? Sure, there may be a certain amount of response bias going on here, but the result suggests a broader connection between sports and business.
My initial impulse on what that connection might be focused on the more contrived (although accurate) concepts of strategy, teamwork, and practice. I think I even threw tenacity in there for good measure. But I could argue that these skills could be honed by being on the debate team or drama club or some other non-athletic focused activity. What's different about sports?
My son began his basketball season a few weeks ago and he's at the age where it's starting to be a Big Deal. I especially enjoy watching him work on drills. His focus and determination are something to behold, and ...
- Happy Thanksgiving
Posted by Heidi Wurpel
With Thanksgiving approaching, we are truly very thankful at Crescendo Consulting. We set out this year with a vision to help 250,000 people live better lives with regard to their health and finances. While the year is not yet over, we can already reflect that through our work in wellness promotion, employee communications, strategic planning, program management, and research, we have been able to see our clients through both good and bad times, and to help their employees and customers live richer, fuller lives. We, as consultants, have also had our share of ups and downs but stand today in a place of gratitude and reflection on how truly blessed we are to work in fulfilling careers that allow us to bring our unique skills and abilities to others.
Please join us at this time of Thanksgiving to step away from the day-to-day fire drills and to do lists that sometimes consume our work lives and take a moment to pause and reflect on the Strengths and Opportunities of your organization. (We can worry about Weaknesses and Threats come New Year's Resolution time). If you find yourself struggling to think of a list, simply hold a lunch with your co-workers and have each write one or more strengths and opportunities of the company that they see on a sticky-note - it will not take long for your wall and the S&O of your SWOT analysis to become filled.
"Happy Thanksgiving" from all of us at Crescendo Consulting Group.
- Lessons from the Great (Women)
Posted by: Heidi Wurpel
Paul Johnson recently wrote an article for Forbes magazine entitled, Lessons From the Great. I thoroughly enjoyed the piece and understand that in the history of human civilization "the great" has traditionally equated with being male but the fact that not a single woman was included* made me start wondering how the lessons may have differed if looking at some of the great females of American history.
Below are quotes from famous women and my notes on the lessons that I believe business men and women alike can learn from them. I will not say that I agree with everything that each of these women espoused to, nor am I trying to make a list of the "greatest" women, I merely selected some that I felt had something to say.
"A little of what you call frippery is very necessary towards looking like the rest of the world." Abigail Adams.
Abigail Adams understood that no movement of people can be all business all the time and that to engage the general populace's interest you must include some "frippery." This lesson has implications for both marketing and operations. People want to be involved with people and business that have a little fun. While professionalism is important, don't let it squelch your brand.
"Never do things others can do and will do if there are things others cannot do or will not do." Amelia Earhart.
This quote sums up perhaps the most important lesson for businesses; if you can't differentiate, fill ...
- Howard Beale Had it Right - Sort Of
Posted by Scott Good
Remember that famous line by Howard Beale from the movie, Network in which he told people to go to their open windows and shout out, "... I'm mad as hell, and I'm not going to take it anymore"? I'm not quite "there" yet, but was moved a bit closer to opening the window when I thought through the recent stock market volatility.
I am a staunch capitalist and believe that making money and capitalizing on opportunities is part of what makes America great and allows people of all economic strata the chance to prosper. I also believe just as strongly that people need to be treated fairly and with respect. Usually, both these tenets can live amiably side-by-side. However, the recent stock market volatility is frustrating in that it is, in large part, due to perfectly legal gamesmanship being played on Wall Street; resulting in tremendous gains for a small sector of traders and financial firms and massive losses (at least on paper) for about half of all US households.[1] The long and the short of it is that the financial regulations (e.g., margins and up-tick rules, decimalization, etc.) for the trading of stock, derivatives, and a host of other tools result in great market volatility which, in turn, offer savvy day-traders and brokers great opportunities from short sales and traders' transaction fees. "Savvy" is good and should be compensated, but "predatory" practices that hurt 100 for each one who benefits go beyond "okay".
My purpose for writing ...
- Trajectory
Posted by Scott Good
Many years ago, I spent a little time studying jet propulsion and other things physics. Newton’s Third Law of Physics and Euler’s Turbine Force equation are terms that I recognize but would generate only a “deer in the headlights” stare from me if I was asked to apply them. Propulsion implies some desired target and a trajectory and force to reach it. Certain targets are not reachable unless the trajectory is correct from the outset. My blog this week is about a business trajectory – not aerodynamics.
Business planning and strategic planning are extremely important for the good health of any company. Defining your organization’s trajectory will help both processes and better manage expectations.
To develop a trajectory model, begin by understanding the course that your company is already on. To do this, do the following:
- Use existing financial data to develop trajectories in terms of a “4D” perspective – revenues, fully loaded cost of goods or services, net profits, and time.
- Go back at least two (preferably five) years, and collect monthly or quarterly data for each measure – the more granular, the better.
- Put on your “statistics” hat, and adjust the data for seasonal and cyclical trends.
- Plot these four relatively simple measures and drop in a regression line. This is your actual trajectory.
- Extend out your trajectory line and see where you are expected to be in one, three, and five years. Do you like what you see?
Comparing your trajectory to your goals
Your business plans and marketing ...
- Use existing financial data to develop trajectories in terms of a “4D” perspective – revenues, fully loaded cost of goods or services, net profits, and time.
- Row, Row, Row Your Brand
Posted by Heidi Wurpel
Most people have a sense of what the term "Brand" or "Branding" means but would have a hard time giving a laundry list of its various components. Many view managing a brand as simply managing the advertising of the company (logo, tagline, ads) others declare that it is managing "everything" - the customer service, quality control of products, pricing strategy, happiness of employees. I would say that both are somewhat true.
A brand is an encompassing term that refers to a snapshot and extreme simplification of what a company is (culturally) and does (product or service offered). The brand image is not what the company believes the brand to be, but what the public believes it to be. "Branding" is conditioning the public through repetition so that multiple aesthetic or mnemonic indicators become synonymous with a company name and then secondly, the ability of those indicators to induce an emotional sense or logical understanding of the company's brand (culture and offering). For example: I see two golden arches and hear, "I'm Lovin' It" and think McDonald's/fast food.
With the fact that a brand image is what the public believes it is, it becomes clear why a strong and consistent long-term brand strategy is extremely important. It takes people a long time to learn something, and learning a company brand is no exception. It is no surprise that some of the most powerful brands such as Coca-Cola, Disney, Starbucks, and Nike are careful to refresh their brands just a little ...
- Shifting the Curve
Posted by Scott Good
The tumultuous economy over the past three years has tested the viability of businesses and individuals, alike. Many have had to work harder, think faster, and move more quickly in order to maintain economic parity to the pre-2008 status. In some cases, though, organizations are seeing the economic environment as an exceptional opportunity for bold reinvention. By working harder, faster, and more quickly within our current regimen, we will “ride the curve” up or down – depending on our level of success. In this blog, I’d like to talk about ways to reinvent your organization and shift the curve – not just ride the old one.
First question, “What is the curve?”
The curve is simply a graphical representation of corporate returns based on the amount of resources expended. Consider this very simplistic example: The hypothetical Scott’s BBQ Delight Restaurant (not to be confused with Scott’s BBQ in Cincinnati … a wonderful place I once visited) sells an average of $15,000 worth of food per week.
Actual sales from Scott’s single location are based on structural issues (floor space, menu, location, etc.), environmental issues (e.g., the weather, time of year, etc.), and marketing (advertising, social media efforts, product variety, price aggressiveness, etc.). If Scott increases marketing efforts, sales increase along a curve (see below). To earn more business, Scott has historically pumped more money into advertising or rearranged the menu items – things pretty easy to change.
However, Scott’s revenue is going to max out at around $18,000 ...
- Boomer Retirement Approaches Raise Interesting Questions About the Economy
Posted by Jim Kupel
Over recent years a few friends, colleagues and clients have retired. There is consistency in each of the stories and it raises some interesting questions about the new economy. Other than being active business people, their jobs were not similar: a hospital CEO, a partner in an accounting/consulting firm, a business group leader, a Senior Vice President at a financial institution, a land surveyor. But before retirement they all said: "The first thing I want to do is to spend time to decompress and think about what I'm going to do next; reevaluate things; play a lot of golf."
What does retirement mean for baby boomers? Upon listening carefully, I understood part of this "reevaluation" was learning to live on less income and part of it was rediscovering meaning. Neither is an easy task. Many baby boomers have taken part-time post-retirement jobs at much less pay. How does this impact young workers coming up?
Others discover that after a year or two of "reevaluating" and realizing that they can in fact live on a fixed income that there are very few "real" jobs that interest them more than their hobbies and family. They discover a whole bunch of other things to occupy their intellectual curiosity and their prolific thought processes. In some cases their knowledge has been transferred to others and is still at work. Knowledge and innovation is closely liked. So how do we as a society ensure a lifetime of "lessons learned" is not slipping away?
A category ...
- Free Webinar - Managing Generation Z
The economy is recovering, and in one month, thousands of college graduates will begin to enter the workforce. The youngest of this group are in a new generation, with unique traits, requiring a new management style. Responding to the needs of local business leaders, Crescendo Consulting Group, LLC, is hosting a free webinar entitled Managing Generation Z to help management prepare for this transition.
Please join us for a free webinar on Managing Generation Z.
Date: Thursday, April 14th
Time: 11:30am-12:30pm (eastern standard time)
Cost: FREE
Register with Presenter: Heidi Wurpel at heidiw@crescendocg.com or 207.774.2345 ext.12
- Spring Cleaning
Posted by Scott Good
I don't usually piggyback on my colleague's blog themes, but today, I am making an exception. Last week, my office neighbor Jim Kupel, wrote about springtime's seasonal transition and the parallel to how Generation Z will respond to the changing economic climate. I live 20 miles inland, so I often get a different weather pattern than those who dwell near the coast (i.e., Jim). Last night, for instance... Jim got mostly rain at his house, I got five inches of snow and was shoveling out my driveway at 6:15 this morning.
My point is not necessarily "snow" versus "rain". My point is the juxtaposition of variant outcomes. In this simple case, a short geographic difference drove the outcomes ("snow", I lose; "rain" I win). Translating this to the business climate is a short walk. For many years, I have studied and had the pleasure of working with large and small businesses from almost every industry you can imagine. I have wrestled first hand with what makes them successful. The obvious things often percolate to the top such as the marketing "4-P's"; one of those P's is Place. The success of a company is often dictated by location (which, as the adage goes, comprises the three most important factors for retailers - "location, location, location"). I suggest that the location issue is as much of a strategic issue as a physical place, for most industrialists. As business leaders, we need to have the ability to "take a ...
- An Armchair Economist's Predictions for 2011
Posted by Scott Good
I work as a business consultant, but I like to think of myself as a B-league economist, as well. As I have written in prior blogs, I find the field very interesting. At the beginning of each year, I typically draft “Scott’s Prognostications” – a little, internal-use-only memo to my colleagues in the office about how I think the economy will shake out over the upcoming year. Sometimes I’m right, sometimes I’m off the mark, but more often than not, the general direction is pretty good. For 2011, I didn’t “prognosticate” because of the very high level of uncertainty and the shrinking “middle ground” available to individuals and companies – oddly enough, much of which comes down to commodity prices.
Commodities can be thought of in three big groups: Investment commodities (e.g., gold, silver, platinum), industrial commodities (e.g., iron ore, copper, aluminum, coal), and food commodities (e.g., soybeans, wheat, animal based products).
Everyone knows something about investment commodities – they are seen as an inflation hedge and have increased tremendously over the past couple years as people expected higher inflation or otherwise sought to balance their portfolios. My guess is that they have nearly run their course – especially after the Fed’s QE2 (“quantitative easing” policies expire in June, thus tightening the money supply). I’m not really concerned about these commodity types.
Prices for industrial and food commodities are a different story and underscore my trepidation to make a 2011 forecast. These markets are driven in large ...
- Tearing Down, Building Up
Posted by Jim Kupel
The Jasmine Revolution is what some are calling the month-long protests that ended the 23-year rule of Tunisia's President Ben Ali on Friday. Another name might be the Online Revolution. What started as riots over unemployment and corruption, sparked by the suicide of an educated young man who was barred from making a livelihood selling fruit without a permit, turned into a movement as young people used their mobile phones and the internet to communicate real time information while the state-run media ran regular programming and ignored the events in the streets.
As police militia continued to battle the military on Sunday in pockets of the capital and the interim government called for democratic elections in the upcoming months, there will be on-going discussions about how to bring about an orderly transition to a broader democracy. This is the challenge. How does one translate a spirit of outrage into solid social policy that corrects the ills that prompted the protest?
To put a finer point on it, how do you create jobs in a country of 10 million people where nearly half the population is under the age of 25 with 14% unemployment overall and an economy largely comprised of mining, agriculture and tourism?
The challenge is not unlike the challenge that we have here in the US. How will a Tea Party inspired House of Representatives actually create jobs? As one who has helped to build American jobs for nearly a quarter of a century, I still find the question ...
- The Miners' Lesson
by Scott Good
Like much of the world, I paid more than a passing glance at the television earlier this week as the Chilean miners were extracted from their collapsed mine. Beyond the human interest story, there are some important lessons that are taught; if we closely observe what occurred, we can learn some things that may help us in our own organizations.
Planning The process of surviving this cataclysmic event began long before August 5 when the collapse occurred. I do not pretend to be a mining expert, but I do know that the mining company in Chile had created a "safe room" or "gathering area" deep in the mine. Second, they had developed a process of what to do in case an emergency occurred. Third, employees were trained in how to execute the emergency procedures.
Situational evaluation and initial response As reported, immediately after the collapse, the trapped miners assembled in the designated area. Providentially, many of them were on their lunch break and were already in a safer location. After gathering, they quickly reviewed what they thought had occurred and developed a plan to ration food, preserve some basic degree of hygiene, and otherwise survive. Those 17 days between the mine collapse and communication with the outside world must have been beyond the pale of anything most of us can imagine. However, their preparation and initial response to the situation probably saved their lives.
Identifying and using resources to implement the plan The President of Chile effectively led rescue efforts by first stating ...