family business


Thursday, December 18th, 2008

Where Troubles Melt Like Lemon Drops…

I’m working through a series of questions about purpose. The first one is: “Why do we feel an organization should aspire to make the world a better place?”

Making the world a better place seems to be more important now than ever before among all generations.

To me, the glam and glitter of bright lights and fast paced living have lost their shine.

The new Civic Generation will fully take control of culture during 2009. This doesn’t mean Silent, Boomers, and X’ers need not show up for work after the New Year. Just the opposite is the case. The still-young Millennials need your leadership.

A Civic Generation is shaped when a “crisis arises in response to sudden threats that previously would have been ignored or deferred, but which are now perceived as dire. Great worldly perils boil off the clutter and complexity of life, leaving behind one simple imperative: The society must prevail. This requires a solid public consensus, aggressive institutions, and personal sacrifice.” (The Fourth Turning
by William Straus and Neil Howe)

Doesn’t this sound like the economic meltdown of 2008? And 1929? And 1869? Do you see a pattern here?

Soon the mood will transform into one of exhaustion, relief and optimism. This optimism is brought about by faith in the group and in authorities. The leaders plan, people hope, and a society yearns for good things and simpler times.

Can you imagine somewhere over the rainbow?

Consumers, congregations, sport teams and of course companies can, and they will all be looking to partner with organizations of purpose. Make sense?

Are you getting yours ready?

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Wednesday, December 17th, 2008

Purpose serves as a principle around which to organize our lives.

Have you ever thought about the questions leaders need to ask in order to instill purpose within their companies?

This has really been top-of-mind for me lately, because so much is riding on the decisions leaders are making today.

It seems as if the margin of error has completely evaporated in the last six months.

I believe the generational transfer from Boomer to X is nearly complete. X’ers will only be a speed bump in time until the Millennials takeover.

Why do we feel an organization should aspire to make the world a better place?

What is the implied value of organizations of greater purpose?

How do we choose to live, interact, and behave as an organization in order to achieve this higher purpose?

How will we know when we are on the right track?

What does it look like (or feel like) when we achieve our organizational greater purpose?

These are hard questions!

I will try over the next several days the answer each of them in detail.

It will be great if you’ll help me clarify the answers by providing some feedback.

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Tuesday, December 2nd, 2008

What are you going to make happen in 2009?

Profits are meaningless without a cash reserve. From 23 years of personal experience and two very difficult periods of my life I want you to realize cash is king. It doesn’t matter if you make money in the next 90 days if you don’t have enough cash reserves to pay the bills from ongoing operations.

But is it stupid to benchmark profit without benchmarking cash flow?
Yes, it is. The most critical business indicator at this moment in time is the concept of ‘reserves.’ Reserves simply mean: How long will you last if you stopped working today?

Would you last three months?
Six months?
A year?

So this brings up a very pertinent question:
Do you know how long you can last without earning an income?
Do you even know how much you need to earn?

Most people don’t.
They pursue profits and revenues like androids.
They earn. They spend.
Never any talk of reserves.

And then a splendid year like 2009 rolls along.
Customers are few and far between. They are buying less.
Work slows down. And then comes to a grinding halt.

It’s time to dip into the reserves.

Get yourself trained and ready for 2010. How are you going to do that if you have no reserves? You’re wondering how to pay rent. How will you buy fresh inventory? You’re cutting back on everything in sight.

The real reason you got into business was to create more control over your life.
Not to earn endless amounts of money then blow it all. This is not meant to be painful. Remember the old English idiom, “A fool and his money are easily parted.”

It sure ain’t a fancy balance sheet with fancy gross revenue and handsome profits that keep you in business- it’s cash. After personally painful lessons, I’ve learned to help others learn from my mistakes. You should learn these lessons before you are forced too.

One of my favorite singer-song writers, Steve Earle, says, “I got a job but it ain’t nearly enough, a twenty thousand dollar pickup truck – belongs to me and the bank and some funny talkin’ man from Iran.” Let’s narrow the ownership pool.

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Saturday, November 29th, 2008

Four Freedoms

On January 6, 1941 President Roosevelt forever changed to direction of the nation.

He single handedly added freedoms beyond the American Constitution. It was never implied Americans should expect freedom from “want and fear.”

While these are wonderful ideals, as “rights” they are ridiculous.

It is written, “‘I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.”

This ancient instruction was given as individual responsibility for one man to care for another.

Clearly, freedom from want and fear was not talked about here.

In 1943 Walter Russell’s monument “Four Freedoms” was dedicated in Madison Square Garden. Four times this same year The Saturday Evening Post ran covers depicting theses freedoms.

Norman Rockwell gave us a vision of the America that could be.

I wonder if he truly believed these freedoms to be rights?

Later in 1948, Eleanor Roosevelt repeated these rights to the United Nations in General Assembly Resolution 217A.

Four Freedoms have gone on to take on a life of their own. Marvel Comics even created a superhero team called the Fantastic Four. Their headquarters? You guessed it, Four Freedoms building.

So, what does this have to do with retail? Everything!

Discovery of your untold story is foundational to speaking life into your business.

When you have tickled the brain of your customer, when you have provided them with a struggle they can share with others, when your words allow their shared hopes and dreams for the future to appear possible, and when you have won their hearts, you can count on their mind to follow.

Customers always buy with emotion and then justify with intellect.

Can you hear retail freedom in your future? Would you like to talk more about this?

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Tuesday, November 18th, 2008

History does repeat.

491 years and 18 days ago, the 95 Thesis was nailed to the door in Wittenberg. In its day, this was the means of inviting scholars to debate important issues. Not a single person took the challenge.

A decree condemning the views was issued. The decree was later burned. The rest is history.

Eight or so years ago Christopher Locke, Doc Searls, and David Weinberger bought their 95 Thesis to the marketplace in The Cluetrain Manifesto.

I’ll not force feed 95 points down your throats.

However in dealing with some important copy writing today, the kind that has family’s lives hanging in the balance, I was moved by how little some have changed.

Clearly we continue to miss the main idea from these authors, who wrote, “Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.”

Here are only a few of their thoughts. If you would like to see all 95, you can read them here. Surely you can find the time.

#4 Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.

#11 People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.

#14 Corporations do not speak in the same voice as these new networked conversations. To their intended online audiences, companies sound hollow, flat, and literally inhuman.

#15 In just a few more years, the current homogenized “voice” of business—the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th century French court.

# 24 Bombastic boasts—”We are positioned to become the preeminent provider of XYZ”—do not constitute a position.

#61 Sadly, the part of the company a networked market wants to talk to is usually hidden behind a smokescreen of hucksterism, of language that rings false—and often is.

#75 If you want us to talk to you, tell us something. Make it something interesting for a change.

#91 Our allegiance is to ourselves—our friends, our new allies and acquaintances, even our sparring partners. Companies that have no part in this world, also have no future.

#95 We are waking up and linking to each other. We are watching. But we are not waiting.

I beg you in the most human of voices to hear this mad man’s voice from the wilderness and respond. Call me, email me, snail mail me, or comment right here on our blog.

Please join this conversation. Your business life probably depends on it.

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Monday, October 13th, 2008

Independent Retailers Win Again

Daily life keeps me humble.

Killing lions and bears like my namesake has never out of the question.

Of course with killing you create a lot of mess. Mess always has to be cleaned up. (Notice the current financial condition of GM and Chrysler.)

When we think about the victory of the fighting and killing of bears and lions we focus on the positive outcome. The dangers of taking on these sorts of battles are not for the faint of heart.

For those of you who enjoy old stories of truth this one begin with a young boy bringing lunch to his brothers when the neighborhood bully provokes a fight.

This bully’s challenge offers big rewards. There is a law of the universe that says, “Opportunity and security are inversely proportionate: as one goes up, the other goes down.”

As we head into the final quarter of this year the opportunity to gain market share is better than it has been in years. The risk of trying to grow during rough times is also bigger now than in many years.

Our new partnership and expanded services have created a one-two punch of opportunity.

I’ll be in High Point Sunday evening through Wednesday midday. If you would like to talk let me know. I’d love to talk shop.

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Thursday, September 25th, 2008

Can You Imagine?

An entire generation of Americans is growing up with no newspapers and very few catalogs. They might not even know what a phone book looks like.

Scary stuff for an old retail fart like me!

This group is more concerned about value than privacy. They’ve never believed they had privacy, anyway. How to pay for something is often more important than how much something sells for. Possibly, this is a holdover view shared with their over-extended parents.

They live lives online and offline. Spending 6-plus hours a day in the cyber world is not uncommon. SecondLife, MySpace, YouTube and avatars are common place.

Other generations remember new fangled inventions like TV, microwave ovens and ATM machines. This generation has never lived without internet. Their worldview is different.

You’ll only keep their attention for nanoseconds. They are capable of doing three things at once. They prioritize time and money differently than previous groups of consumers. They even think buying software is old fashioned. (Can you believe it?)

Do you want to be in business in twenty years? You’d better see the world through their eyes.

These “digital natives” have laptops, cell phones, IPods, Black-berry, DS, digital cameras, DVD burners. They are connected, and they are on the prowl for more.

They are working in nearly every retail setting already. If you want to keep up you ought to be hiring more of them at every turn.

I’m not suggesting picking them while alienating older consumer groups which have a lot more spending money. I am suggesting, however, that technology today allows us to talk to different consumers in their language. But you must know their language in order to speak it. The BS meters of this group are well tuned and waiting to pounce

Now don’t go running out half-cocked thinking you’re going to dominate this group. Don’t, however, wait with your head in the sand for them to choose you when they have the money, because by then it will be too late. They will already have chosen your competition.

Are you spending your advertising money and recruiting people the way you did five years ago? If the answer is yes to either of these questions, then please change. If not, don’t say you haven’t been warned.

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Wednesday, September 24th, 2008

What A Shame.

“It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.” Thomas Jefferson

After listening to President Bush and then a dozen channels of political pundits and Wall Street hacks I went searching for some sage generational advice. It seems Thomas Jefferson was clearly foreseeing the problems of today!


Which generation do you think he might have been talking to? I have an opinion. Email me if you would like to know. The answer will be two short words.

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Sunday, September 21st, 2008

Generational Training

Greed-is-good Yuppies and Bible-believing conservatives each handle training the same way.

This morning I was thinking about personality type as it relates to training. Of course, wondering always leads me to generational questions.

Remember we are living and working in an unprecedented four generational time. Never in earth’s history have four generations worked together – before right now!

Feedback from training might sound like this:

  • WWII Generation says, “I learned it the hard way, and you should, too.”
  • Baby Boomers say, “If you train people too much, they’ll leave.”
  • Generation X says, “The more they learn, the longer they’ll stay.”
  • Millennials say, “Always be learning, it’s a way of life.

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Monday, September 1st, 2008

It’s not your fault.

Sometimes leaders just have to pay the price.

The price of people’s failures: People just “leave the ranch,” they break laws, they backslide and backstab, they believe it’s your job to solve their problems, the list could go on. Leaders have to understand why they are leaders and others are not.

The price of complaining: As a leader you’ll have to face the failure of others to be content. The opposite of complaining is gratitude. Be grateful for the complaining employees. Without them it could be worse. Sometimes it might be an hour-by-hour thankfulness that gets you through.

The price of comparison: Recognize when others are reliving the glory days and move on quickly. People use selective memory. The good ole days were never as good as people claim them to be. Don’t fall into this trap yourself.

The price of playing God: What do you expect of me? My situation is terminally unique. Understand there is a big difference between being responsible FOR somebody and being responsible TO somebody. Don’t try to solve problems that aren’t yours.

The price of being placed on a pedestal: I’ve only heard of a single man who was willing the pay the price for all of the rest of us. Each of us is replaceable. Don’t fall into the trap of believing you’re indispensible.

Check out these leaders. Some might say they are crazy. What do you think?
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