tag:blogger.com,1999:blog-84988240275484193962023-06-20T23:22:07.745-05:00Homza: Fractional CFOProviding fractional CFO services to companies committed to improving business performance.Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.comBlogger101125tag:blogger.com,1999:blog-8498824027548419396.post-86258693174850827192014-10-22T05:15:00.000-05:002014-10-22T05:15:43.307-05:00New Location for Finance Matters Blog!<span style="font-family: "Tahoma","sans-serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">The archive of these monthly newsletters has moved and is
now posted at the <a href="http://www.homza.com/resources/"><span style="color: blue;">Resources</span></a> section of my website. Please check out newer editions (including all past articles), get the <a href="http://www.homza.com/feed/">RSS</a> feed or sign up for the newsletter at <a href="http://www.homza.com/"><span style="color: blue;">homza.com</span></a></span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-86542582828590982702014-08-02T05:48:00.000-05:002014-08-02T05:48:24.570-05:00Should You Fire You? (July 2014)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
recently had lunch with a colleague and the subject of my monthly newsletter
came up. I jokingly said that I should fire the guy responsible for building and
maintaining my email list. Frankly, he’s not very good at it.<span style="mso-spacerun: yes;"> </span>The problem is that the guy is me.<span style="mso-spacerun: yes;"> </span>And, yes, I should fire myself from this role
and find someone on whom I rely upon and that is better at it than me and have
decided to do just that!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">
There are things that we all do in our role of running our individual companies
that at which we do not excel. But for
one reason or another, we have never taken the time or energy to find a
suitable replacement.<span style="mso-spacerun: yes;"> </span>Maybe it is
because there is no one around us who immediately comes to mind, maybe it seems
like a task no one else could do, or it is so small that it doesn’t seem to be
worth the time to delegate.<span style="mso-spacerun: yes;"> </span>Maybe you
tried to delegate the item before but that effort failed so it landed back on
your plate. Whatever the reason, I think it is incumbent upon all of us to seek
to understand where we are our own roadblock to success.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Further,
think about the cost of doing something yourself that someone else could do
better.<span style="mso-spacerun: yes;"> </span>Don’t measure this against your
hourly salary, but rather measure this against the highest and best use of your
time. How much value could you generate for the business if you were operating
at your maximum rather than doing something that is of less value?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">For
some, it may be easiest to start with themselves and for others, this may be
the most difficult place to start. But, one should consider the cost of not
having everyone operating at their maximum value.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Years
ago when I was in a corporate job, my boss walked into my office and asked why
I had our administrative assistant working on spreadsheets and performing
financial analysis.<span style="mso-spacerun: yes;"> </span>Without skipping a
beat, I replied:<span style="mso-spacerun: yes;"> </span>“Because she can”.<span style="mso-spacerun: yes;"> </span>I had learned that our administrative
assistant was taking courses to complete her degree in finance.<span style="mso-spacerun: yes;"> </span>Not only were we leveraging a hidden skill
set and helping her develop, but we were freeing up others to work at higher
levels in the organization.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Every
organization should seek to get the most out of every employee . . . not by
asking them to work draconian hours, but by seeking out their strengths and
encouraging them to grow with the company. Part of this is constantly looking
for ways to bring new talent in at the bottom of the organization so that those
who have been around a while are able to move into higher level roles or take
on greater responsibility in order to maximize their potential and that of the
company at the same time. </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">The
effect of this over the long term is a more efficient organization that is
“firing on all cylinders”.<span style="mso-spacerun: yes;"> </span>In other
words, the organization maximizes revenue while minimizing cost which shows up
as stronger profits on the bottom line.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ask
yourself, do you have people that you should fire from certain roles that could
be better accomplished by someone lower and more cost efficient in the
organization structure? </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <br /><script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><br />
The archive of these monthly newsletters is also posted at the <a href="http://www.homza.com/resources/"><span style="color: blue;">Resources</span></a> section of <a href="http://www.homza.com/"><span style="color: blue;">homza.com</span></a> which you can visit for more information. </span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"><br />your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know
where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif"; font-size: 9pt;"><span style="font-size: small;">Ken
Homza</span><span style="font-size: small;"><span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc.</span><o:p></o:p></span></span><br />
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-75147087321898798402014-06-29T11:08:00.001-05:002014-06-29T11:08:24.443-05:00What Can You Learn From A Waterfall? (June 2014)
<span style="font-family: "Tahoma","sans-serif";">The
other morning my five year old asked what I was doing and I said I was starting
to write my monthly newsletter.<span style="mso-spacerun: yes;"> </span>He said,
“Daddy, why don’t you write about our waterfall?” It didn’t take me long to realize that our
waterfall is a great analogy for the cash flow of a business and obviously fits
nicely with my tag line:<span style="mso-spacerun: yes;"> </span>Your Cash Is
Flowing.<span style="mso-spacerun: yes;"> </span>Know Where.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Cash
flow is critical to a business and much like water flowing in a stream to a waterfall;
it’s very difficult to stop the flow. You can divert it, change its path,
create a pool, or make use of damns, but you can’t bring water to a stop other
than finding a way to shut it off at the source.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
There are places along the path of our waterfall where the water seems to be
very still, others where it is moving at a moderate place and others where it
is crashing over the waterfall with a great amount of force. There are places
where the water splits between two different paths and later comes back
together. There are still others where it ducks underground for a while and
then pops up later. Some of the water takes a very direct path while some
meanders from top to bottom.<span style="mso-spacerun: yes;"> </span>Some dirt
and rocks get washed away while some hold firm.<span style="mso-spacerun: yes;">
</span>Along its journey from top to bottom, the water can carry important
things (like sticks and leaves) that we send down from the top to see how long
they take to get to the bottom. <o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";">Think
about your business. Money comes in daily and goes out daily. The key is to
make decisions about the outflow of money that maximize the success and
profitability of the business.<span style="mso-spacerun: yes;"> </span>Often
this means looking for places where you can stop or slow a rate of spending so
that the same dollars can be used elsewhere. It might also mean making a long
term investment in capital equipment or technology in order to increase cash
flow at a point in the future.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">The
path to the waterfall has both calm sections where the water seems to be barely
moving and chaotic sections where the water has a lot of turbulence. <span style="mso-spacerun: yes;"> </span>Does your business have periods or perhaps
departments that are calm while others are turbulent? The turbulence in the
water is caused by rocks that interrupt the smooth flow of the water. <span style="mso-spacerun: yes;"> </span>Do you have unnecessary obstacles in your
business? <o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
We are able to walk along a path beside the waterfall from top to bottom . . .
and while I tend to take it in stride, my little guy always finds something new
. . . a stray golf ball or a rock shaped like a turtle on our last adventure. If
you walk along the path of your business, are you observant enough to find
something new with each trip? If not, perhaps you should have someone join you
on that walk and see what they observe about your business.<span style="mso-spacerun: yes;"> </span>Whether it’s something that your firm does
exceptionally well or seems to be a practice in need of change, you’ll likely
learn something from the observation.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">For
any business, it’s about getting customer dollars into the top of the flow and
managing the path and efficiency of that flow to ensure that you optimize (note
that I did not say maximize) company profitability.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Finally,
at the bottom of the waterfall is a large pool of water.<span style="mso-spacerun: yes;"> </span>Think of this as the accumulation of capital
resulting from the cash flow of your business.<span style="mso-spacerun: yes;">
</span>When you look at your balance sheet, can you see the accumulation of
capital resulting from your efforts? <b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";"></span> </div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";"><span style="font-family: "Tahoma","sans-serif";">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> </span></span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know
where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken
Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc.</span><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-92180970677644367762014-05-30T16:14:00.000-05:002014-05-30T16:14:17.561-05:00Do You Have An Effective Board? (May 2014)
<span style="font-family: "Tahoma","sans-serif";">What is the role of your board? <span style="mso-spacerun: yes;"> </span>While I realize that many small companies have
neither an official or unofficial board, bigger companies have a board of
directors. Articles abound about the purpose of a board of directors and I would
encourage readers to find a few and understand the legal responsibilities of a
board. But meeting the legal requirements doesn’t speak to whether the board is
effective and legal requirements are not the subject of this article (I’ll
leave that to the lawyers).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">This newsletter is about whether your board
is effective. <span style="mso-spacerun: yes;"> </span>Some of you may have been
involved with multiple boards over the course of your career, but some reading
this may be working with their first board or may not even have a board of
directors or advisors for their business (I’ll use directors and advisors
interchangeably for purposes of this discussion).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Let me share with you my view of the characteristic
of both good and bad boards.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";"><u>Good<o:p></o:p></u></span></div>
<u>
</u><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Consist
of people with subject matter expertise who bring additional and broad perspective
to the company <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Ask
thought provoking questions about the strategy of the business and seek to
understand why certain paths are being recommended over others<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Bring
strategic relationships to the table <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Challenge
management thinking in an effort to be helpful <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Independently
verify information about the business and industry <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Dot
the legal i’s and cross the legal t’s but have a broader purpose <o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";"><u>Bad<o:p></o:p></u></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Bring
limited outside perspective and do not fully understand the company operations<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Either
ask no questions at all or turn the board meeting into a detailed operational
review <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Rely
solely on management as a source for information about the company<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Offer
little in terms of relationship building to the company and industry <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Are
such good friends with the CEO that they will not challenge him or her and
exist merely to ratify decisions <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><!--[endif]--><span style="font-family: "Tahoma","sans-serif";">Focus
on the procedural and meeting the minimum legal requirements of their
responsibilities <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">While I rarely serve as a member of the board
for my client companies, I am almost always in attendance at meetings.<span style="mso-spacerun: yes;"> </span>Over the years, I have attended countless
board meetings and recently attended one of the best.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">A good board can help management guide and
transform a company while a bad board can sit idly by and watch a company fail
(and in fact, hasten that failure).<span style="mso-spacerun: yes;"> </span>I
have personally seen both.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
If you do not have a board, I would encourage you to start to build one.<span style="mso-spacerun: yes;"> </span>Over the life of your company, it could add
tremendous strategic value and could be the key difference between success and
failure if times get tough.<span style="mso-spacerun: yes;"> </span>If you have
an effective board, embrace it and leverage it to the best of your
abilities.<span style="mso-spacerun: yes;"> </span>Finally, if you have an
ineffective board, deliver a wake-up call.<span style="mso-spacerun: yes;">
</span>Tell members what you expect and start to replace those who do not
deliver. <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> <span style="font-family: "Tahoma","sans-serif";">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> </span></span><br />
</span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"></span></b><br />
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know
where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken
Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc.</span><o:p></o:p></span><br />
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-11098717060678633632014-04-30T08:30:00.000-05:002014-04-30T08:30:16.460-05:00Putting The Customer Last (April 2014)
<span style="font-family: "Tahoma","sans-serif";">What
do my doctor’s office and the local Chevrolet dealer have in common?<span style="mso-spacerun: yes;"> </span>Recently, they both decided to put the
customer last.<span style="mso-spacerun: yes;"> </span>While my doctor’s office
probably considers me a patient as opposed to a customer, people have choices
when it comes to medical care just like they do with any other service. And
poor service usually means customers choosing to spend their dollars
elsewhere.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">On
a recent afternoon, the Chevy dealer explained to me why my wife’s car (which
was in their shop to correct a problem with a prior repair that they had made)
would not be ready at the end of the day despite a 7:00 AM appointment. You
see, they have a “policy” which states that they assign the same technician who
did the original repair to correct any customer satisfaction issues.<span style="mso-spacerun: yes;"> </span>While that sounds good in theory, in practice
it just aggravated the situation as that technician was overbooked that
day.<span style="mso-spacerun: yes;"> </span>Rather than have someone else
resolve the issue, they decided that their policy should superseded good
customer service and the customer would just have to wait another day to get
their car back. The fact that they didn’t call me to give me an update and that
I had to call them near the very end of the day to check on the status of the
car just made matters worse.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">On
the same day, I drove to my doctor’s office as they couldn’t manage to return a
phone call to schedule a routine test. They seem to have a plethora of
procedures about who returns which calls, at what times, and also seem to have
a policy that every call goes straight to voice mail.<span style="mso-spacerun: yes;"> </span>I have never had them answer a call. As I
walked into the waiting room, I could hear the person at the front desk ask a
very sweet looking elderly woman to fill out a survey on the office phone
system.<span style="mso-spacerun: yes;"> </span>She (in a not so sweet voice)
replied, “Your phone system is terrible – I can never get through.”<span style="mso-spacerun: yes;"> </span>I followed up with, “I drove here because
you don’t return calls.”<span style="mso-spacerun: yes;"> </span>With that, I
was ushered straight through to meet with the person responsible for
scheduling.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">In
both instances, those in charge don’t seem to appreciate the customers’
perspective and are abiding by rules, practices and procedures that ultimately
put the customer last.<span style="mso-spacerun: yes;"> </span>The result of
this lack of customer perspective is that over time, the customer will decide
to choose another provider.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Too
often companies let policies and procedures get in the way of good customer
service.<span style="mso-spacerun: yes;"> </span>When I start to work with a new
client, I frequently deal with issues that don’t originate in the finance and
accounting departments but have tremendous financial impact over time.<span style="mso-spacerun: yes;"> </span>The above are just two examples of customer
service issues which have financial impact by reducing top line revenue and
bottom line profitability.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">As
you think about your business, ask yourself, do you have policies and
procedures which end up putting the customer last?<span style="mso-spacerun: yes;"> </span>And if so, have you thought about the financial
impact they might have?<span style="mso-spacerun: yes;"> </span>Wouldn’t it be
better to fix these issues and improve customer service and your bottom line at
the same time? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script>
<span style="font-family: "Tahoma","sans-serif";"><span><span style="font-family: "Tahoma","sans-serif";"><span><span><span><span>For more information, visit </span></span><a href="http://www.homza.com/"><strong><span style="color: #669922;"><span><span>www.homza.com</span></span></span></strong></a> <b><span style="color: black; font-family: "Century Gothic","sans-serif";"><br /></span></b></span></span></span></span></span><span><br /></span></span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;">
</span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc.</span><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-23383701527948944972014-03-31T16:55:00.000-05:002014-03-31T16:55:00.442-05:00Hustle (March 2014)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Do your
employees hustle . . . and do you give them a reason to? The other day a young
man came walking up my driveway with a leaf rake. Usually I rake the leaves
myself – I actually enjoy it; but I was busy and getting ready for vacation so
I met him at the door before he even knocked. He gave me a price range (I
agreed to the high end of the range – after all, this was a young guy on spring
break trying to make a few extra bucks – so why not be generous). <span style="mso-spacerun: yes;"> </span>I went back to my office and worked.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><span style="font-family: "Tahoma","sans-serif";">Forty-five
minutes later, he knocked on the door. I was amazed how quickly he had
finished<span style="mso-spacerun: yes;"> </span>. . . and at how thoroughly he
had done the job.<span style="mso-spacerun: yes;"> </span>He proudly announced
he was the “fastest leaf raker around” and told me he had been doing it since
he was seven years old. This guy had just made about $50 per hour raking leaves
. . .<span style="mso-spacerun: yes;"> </span>and I was glad to pay it. Before
he left, he said can’t make any money raking leaves by the hour!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Many
mornings I am among the first to arrive at my local coffee and bagel shop. Sometimes,
I’ll see the people who service the restaurants pull up and make their morning
delivery.<span style="mso-spacerun: yes;"> </span>They are always hustling -- moving
as fast as they can. These people get paid by the amount of product they
deliver with a customer service component included in their compensation
package.<span style="mso-spacerun: yes;"> </span>They are not hourly employees. <span style="mso-spacerun: yes;"> </span>In some ways, they are in business for
themselves because what they earn is based upon their own productivity.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Many years
ago when I was about 13 years old, I used to help a neighbor deliver milk. He
owned the route. He hustled and hired me
so he could get done faster.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">By now, I’m
sure you see the common thread. So ask yourself, do you give your employees a
reason to hustle?<span style="mso-spacerun: yes;"> </span>Are there incentives
in place for those who perform better than average? Are top performers
recognized, can they get promoted, do they make more money if they perform at
their best?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Providing
proper incentives and motivations for employees is an important role of the
executive team. I am called upon multiple times every year to work with various
executive teams on designing employee incentive plans.<span style="mso-spacerun: yes;"> </span>Every CFO should take an active role in this
process.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Below is a
fable that I heard years ago . . . the exact source is somewhat unclear but I
have always liked the message.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<i><span style="color: #373737; font-family: "Georgia","serif"; mso-bidi-font-family: Helvetica;">Every morning in Africa, a
gazelle wakes up. It knows it must run faster than the fastest lion or it will
be killed. Every morning a lion wakes up. It knows it must outrun the slowest
gazelle or it will starve to death. It doesn’t matter whether you are a lion or
a gazelle: when the sun comes up, you’d better be running.</span></i><span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">When the sun
comes up, are you and your employees running? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="font-size: x-small;"><span style="mso-spacerun: yes;"><span style="font-size: small;"> </span><span style="font-family: "Tahoma","sans-serif";"><span><span style="font-family: "Tahoma","sans-serif";"><span><span><span><span style="font-size: small;">For more information, visit </span></span><a href="http://www.homza.com/"><strong><span style="color: #669922;"><span><span style="font-size: small;">www.homza.com</span></span></span></strong></a> <b><span style="color: black; font-family: "Century Gothic","sans-serif";"><br /></span></b></span></span></span></span></span><span><br /></span></span></span></span><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;">
</span></span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;">
</span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="font-size: x-small;"><span style="color: #333333;"><span style="font-size: small;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc</span>.</span><o:p></o:p></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-6678386580650404492014-02-27T17:36:00.000-06:002014-02-27T17:36:36.875-06:00Pay More Taxes (February 2014)<!--[if gte mso 9]><xml>
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<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">There, I
said it, pay more taxes.<span> </span>While most
people react negatively to paying more taxes, I actually think it ought to be
everyone’s goal!<span> </span>As tax deadlines
approach (March 17 this year for corporate returns and April 15 for
individuals, partnerships, and trusts) few are facing those days with the
thought of delight about paying more taxes.<span>
</span></span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<br /></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">This
newsletter is not about tax policy or the politics in Washington, DC.<span> </span>Aside from voting, contributing to the
candidate of one’s choice, being politically active, or running for office, all
that any of us can do is operate within the rules that exist at any particular
point in time. Rather, this newsletter is about recognizing that there is a
broader scope to the finance function other than the preparation of tax
returns.<span> </span>I have seen some business
owners put so little emphasis on the finance function that I believe they
wouldn’t even have an accounting system but for the need to file tax returns.</span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<br /></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">Businesses that
utilize no financial resources other than a CPA who specializes in tax
preparation are short changing themselves. <span> </span>If the CPA has the desire and abilities to
provide a broader scope of services, business owners who don’t extend the
engagement beyond the narrow scope of tax planning and preparation are missing
the bigger picture.<span> </span>Clearly, proper
preparation of tax filings and related long term tax planning is an important function.
<span> </span>Of course, minimize your tax liability
for a given level of income.<span> </span>But if you
only engage a financial partner for tax work, either by their choosing or
yours, then you are missing a substantial portion of value that the finance
function can and should be adding to your organization.<span> </span></span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<br /></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">I have
actually seen business owners react favorably to the statement, “Good news, you
don’t owe any taxes; you lost money last year.”<span>
</span>The goal of a business isn’t to avoid paying taxes; the goal of a
business is to maximize profitability and cash flow.<span> </span>Businesses without a sustained level of
profitability lack the capital accumulation that is necessary for growth and to
survive economic downturns. <span> </span>They are
disadvantaging themselves when it comes time to exit because they are more
likely to end up selling under distress conditions, have smaller top-line, and
lower EBITDA, compared to businesses that had a broader financial strategy in
place. </span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";"><br />
Broadly speaking the finance function is about providing an understanding of
how sales, operations, manufacturing, R&D, administrative areas, etc.
relate to each other and contribute to the profitability of the
enterprise.<span> </span>A good finance function
helps you understand the competitive landscape and make decisions about how to
maximize your potential.<span> </span>It provides decision
support, valuable insights, and contributes to the long term strategic direction
of the firm in order to enhance shareholder value.<span> </span></span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<br /></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">So, go
ahead. <span> </span><span> </span>Make more money . . . pay more taxes . . .
isn’t that better than the alternative? </span></span></div>
<span style="font-size: small;">
</span><div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance to speak with you.<span> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="font-family: "Tahoma","sans-serif";"><span><span style="font-family: "Tahoma","sans-serif";"><span><span><span>For more information, visit </span><a href="http://www.homza.com/"><strong><span style="color: #669922;"><span>www.homza.com</span></span></strong></a> <b><span style="color: black; font-family: "Century Gothic","sans-serif";"><br /></span></b></span></span></span></span></span><span><br />
</span><span><br />
</span></span><b><span style="color: black; font-family: "Century Gothic","sans-serif";">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif";">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif";"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif";">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif";"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif";">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif";">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span>®<span> </span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span> </span><br />
Copyright @ 2014 Homza Consulting, Inc.</span></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-24060971249572593392014-01-31T10:06:00.000-06:002014-01-31T10:06:02.852-06:00Are You Using The Right Tools? (January 2014)
<span style="font-family: "Tahoma","sans-serif";">Like many
others, I worked construction jobs during my high-school and college days.<span style="mso-spacerun: yes;"> </span>I remember one particular job remodeling a
bar when the boss asked me to knock a hole in a solid concrete wall for an
electrical outlet. <span style="mso-spacerun: yes;"> </span>He handed me a hammer
and chisel (and a small hammer at that).<span style="mso-spacerun: yes;">
</span>I’d been doing this kind of work long enough to know those weren’t the
best tools for the job and had worked around the boss long enough to know it
was no use arguing with him about it.<span style="mso-spacerun: yes;">
</span>Fortunately, another contractor I also worked for arrived as I was
starting to work.<span style="mso-spacerun: yes;"> </span>I asked him if I could
borrow his electric demolition hammer and a few minutes later the job was done.
The boss had a surprised look on his face when I asked:<span style="mso-spacerun: yes;"> </span>“What’s next?” <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Obviously, I
no longer work construction, but the underlying lesson remains valuable to this
day.<span style="mso-spacerun: yes;"> </span>Are you using the right tools for
the job?<span style="mso-spacerun: yes;"> </span>I can’t count the number of
times that I have started to work with clients and find that their financial
reporting is lacking, they have multiple unanswered questions about their
business, and people are busy compiling data but have very little useful
information. <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>At the same time, I find they are versions
behind important software upgrades, are using outdated versions of Excel, and
their computers are painfully slow (one recently suggested I use a laptop at
their office which is the same model as one I retired years ago . . . no,
thanks).<span style="mso-spacerun: yes;"> </span>Equally frustrating, people
don’t know how to use the tools that they do have (they haven’t been to a
training course to enhance their skills in years). </span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">People
cannot be at their most productive if they don’t’ have the right tools and
aren’t properly trained.<span style="mso-spacerun: yes;"> </span>A true
craftsman would never set out to work without making sure his saw was sharp and
he had the right hammer for the job. <span style="mso-spacerun: yes;"> </span>Why
should professionals in your office attempt to do their job with anything less?
<span style="mso-spacerun: yes;"> </span>You might as well ask them to perform
with one hand tied behind their back while hopping on one leg. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">I once
experienced this exact situation with a new client that was two major releases
behind in software upgrades to their ERP (Enterprise Resource Planning) system.
<span style="mso-spacerun: yes;"> </span>There were upgrades available at no cost
except for the time and energy it takes to put them in place.<span style="mso-spacerun: yes;"> </span>They literally had the tools at their
disposal but were choosing not to use them.<span style="mso-spacerun: yes;">
</span>We moved ahead with the first major release upgrade (a necessary step)
and plan to follow with the second shortly thereafter.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Whatever job
you are doing, ask yourself if you are using the right tools for the job?<span style="mso-spacerun: yes;"> </span>Consider whether you have upgraded your
software releases lately and take the time and energy to explore what new
capabilities are available to you. <span style="mso-spacerun: yes;"> </span>Think
about how some simple software changes or upgrades can improve work flow
changes to streamline processes and produce a better result at the same
time.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">In addition
to having the right tools, make sure your people know how to use them.<span style="mso-spacerun: yes;"> </span>Too often, companies avoid spending on a
$1,000 training course and then spend $10,000 paying that same employee to get
the job done in an inefficient manner over the next twelve months.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Finally, eliminate
any “that’s the way we’ve always done it” attitudes from your company.<span style="mso-spacerun: yes;"> </span>Continually search for new and better ways
to do things and challenge whether or not current processes are the best
approach (particularly in light of new and ever changing software tools).<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="font-family: "Tahoma","sans-serif";"><span><span style="font-family: "Tahoma", "sans-serif";"><span style="mso-spacerun: yes;"><span style="mso-spacerun: yes;"><span>For more information, visit </span><a href="http://www.homza.com/"><strong><span style="color: #669922;"><span>www.homza.com</span></span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></span></span></span><span style="font-size: x-small;"><br />
</span><span style="font-size: x-small;"><br />
</span></span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2014 Homza Consulting, Inc.<o:p></o:p></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-79047799030035366752013-12-31T05:45:00.003-06:002013-12-31T05:45:38.349-06:00What's Driving You? (December 2013)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Last month,
I asked “What Are You Driving?” which was targeted at the change and results
for which you are responsible rather than the car that gets you to work and
back.<span style="mso-spacerun: yes;"> </span>Today, I’d ask a different but
related question:<span style="mso-spacerun: yes;"> </span>“What’s Driving You?”<span style="mso-spacerun: yes;"> </span>Why do you get up and go to work in the
morning?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">For all of
us, this answer is different, but unless it involves something that you are
passionate about, then it’s unlikely you are going to get the maximum
result.<span style="mso-spacerun: yes;"> </span>Money may provide some short
term spark, but money alone is never a sufficient driver to lead to
extraordinary results.<span style="mso-spacerun: yes;"> </span>Over time,
people grow accustomed to a certain level of income and the dollars that may
have provided motivation at one point become an expectation.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">For most,
the passion that drives comes from making a difference and feeling that our efforts
have favorably impacted others or are appreciated.<span style="mso-spacerun: yes;"> </span>As you think about your company, department,
or even your own individual performance, ask yourself what is driving force?<span style="mso-spacerun: yes;"> </span>What is causing you to wake up every morning
and try to make a difference?<span style="mso-spacerun: yes;"> </span>If you’ve
lost sight of it, I’d encourage you to find a way to reconnect with the passion
that may have fueled you at one point in time.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">I was once
on a due diligence trip to a steel fabricator.<span style="mso-spacerun: yes;">
</span>The business was a mess.<span style="mso-spacerun: yes;">
</span>Operations were disorganized, bids didn’t seem to bear any relationship
to costs, accounting was in poor shape – I could go on and on.<span style="mso-spacerun: yes;"> </span>But the key finding was that the founder
started as an artist working in steel.<span style="mso-spacerun: yes;">
</span>At some point, he did some small fabrication work to pay the bills in
order to support his artistic passion. Over time, the fabrication work had
taken over and was consuming 100% of his time and had extinguished the fire
that driven the entrepreneur and artist.<span style="mso-spacerun: yes;">
</span>Instead of doing something that he was passionate about he found that
owning a business was preventing him from doing what he loved.<span style="mso-spacerun: yes;"> </span>And because he had no passion for the
business, he wasn’t doing it very well; so it wasn’t even meeting the minimum
standard that he had set for it – to pay his bills and provide a
livelihood.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">He would
have been better off being an employee in steel fabrication company . . . at
least then he would have had a “9 to 5” job and could have used his weekends
and evenings to pursue his artistic endeavors.<span style="mso-spacerun: yes;">
</span>But as any business owner can attest, running a business is rarely a “9
to 5” endeavor.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">The purpose
of a business is to support the dreams of the business owner, whatever they may
be, not to quench them.<span style="mso-spacerun: yes;"> </span>Think about
this as you go about your day . . . what is the passion that fuels your
performance? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">As we wrap
up another year, I’d like to thank all of you who read this monthly newsletter
and especially those who take a moment to drop me a note and share your own
thoughts about the topic of the month.<span style="mso-spacerun: yes;">
</span>Wishing you a happy, healthy and productive 2014! <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;"><span style="font-size: small;">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> </span><span style="font-family: "Tahoma", "sans-serif";"><span style="mso-spacerun: yes;"><span style="mso-spacerun: yes;"><span style="font-size: small;">For more information, visit </span><a href="http://www.homza.com/"><strong><span style="color: #669922;"><span style="font-size: small;">www.homza.com</span></span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></span></span><span style="font-size: x-small;">
</span><span style="font-size: x-small;">
</span></span><span style="font-size: x-small;"><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"><br />your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b></span><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;">®<span style="mso-spacerun: yes;">
</span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;">Ken Homza</span><span style="font-size: x-small;"><span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2013 Homza Consulting, Inc.</span><o:p></o:p></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-73353494214712985932013-11-25T17:01:00.000-06:002013-11-25T17:01:05.520-06:00What Are You Driving? (November 2013)
<span style="font-family: "Tahoma","sans-serif";">Clearly, that’s
a question that can be taken more than one way.<span style="mso-spacerun: yes;"> </span>If the headline brought to mind the vehicle
that gets you to work, around town, and on family vacations, that’s a
reasonable way to think about the question.<span style="mso-spacerun: yes;"> </span>But I actually meant it quite differently.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Rather, what
is the agenda that you are pushing forward every day?<span style="mso-spacerun: yes;"> </span>What key difference are you trying to make
in your job, be it at the executive level or elsewhere in the organization?<span style="mso-spacerun: yes;"> </span>Do you start your day with a mission that
you are trying to advance or are you just trying to complete tasks that, while
necessary, serve no larger purpose?<span style="mso-spacerun: yes;"> </span>Do
you have a vision for your company or your department that provides a framework
upon which you decide which items are worthy of your time and which are
not?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">People (and
therefore companies) who approach their roles with a vision of what they are
trying to accomplish have a framework for making decisions.<span style="mso-spacerun: yes;"> </span>That is not to say that the vision won’t
change (in fact, it should be reviewed when facts come to light which would
suggest it is not the best approach).<span style="mso-spacerun: yes;"> </span>Nor
is it to say you won’t have days just keeping the train on the tracks (we all
have days like that despite our best efforts to be forward thinking).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">But having a
vision allows you to not only set your own course but it provides a vehicle to
communicate how others should approach their roles as well.<span style="mso-spacerun: yes;"> </span>Not only do you have a vision and framework
for approaching your work but that vision can be shared with those around you.<span style="mso-spacerun: yes;"> </span>When those around you are making decisions,
they can then apply that same framework and determine to what extent their
actions are consistent with the longer term goals.<span style="mso-spacerun: yes;"> </span>If they find that they are operating in a
manner that they believe to be inconsistent with that vision, they can raise
their hand and have a discussion about those actions and determine if there is
something different they could be doing that is more consistent with the longer
term direction.<span style="mso-spacerun: yes;"><br /></span></span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Unless you
are trying to drive something and invoke change, then your destiny will
ultimately be controlled by people and circumstances around you rather than by
yourself.<span style="mso-spacerun: yes;"> </span>That is almost always less
than ideal.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If you find
yourself or your company in this situation, then it is time for a change.<span style="mso-spacerun: yes;"> </span>Take the initiative and stake out a
vision. <span style="mso-spacerun: yes;"> </span>Putting that first stake in the
ground doesn’t have to be a long, drawn out process but it does require some
focused energy and thinking.<span style="mso-spacerun: yes;"> </span>I recently sketched
out a 2014 vision for the finance and accounting group of one of my
clients.<span style="mso-spacerun: yes;"> </span>After having solicited input
from some key constituents, I spent an hour with the team and a blank sheet of
paper on an easel. <span style="mso-spacerun: yes;"> </span>By the end of that
hour, we had thoughts around eight key initiatives that we could use to
transform the department and positively impact the business over the coming
year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Are we
finished?<span style="mso-spacerun: yes;"> </span>No.<span style="mso-spacerun: yes;"> </span>We will have to decide upon specific actions
and work over the next year in order to make significant progress.<span style="mso-spacerun: yes;"> </span>But we have charted a course and are on our
way.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="font-family: "Tahoma", "sans-serif";"><span style="mso-spacerun: yes;"><span style="mso-spacerun: yes;">For more information,
visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></span><br />
</span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;">
</span><br />
</span></span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2013 Homza Consulting, Inc.</span><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-42437401804473045472013-10-31T07:14:00.000-05:002013-10-31T07:14:17.764-05:00Doing Things "Righter" (October 2013)<span style="font-family: "Tahoma","sans-serif";">Last month I
wrote about Strategy vs. Execution and one of my readers wrote back and defined
the terms as “Doing the Right Things” <span style="mso-spacerun: yes;"> </span>(strategy) vs. “Doing Things Right”
(execution).<span style="mso-spacerun: yes;"> </span>I have never heard it
expressed quite so simply before.<span style="mso-spacerun: yes;"> </span>I
almost always find that simpler is better as simple provides clarity.<span style="mso-spacerun: yes;"> </span>Therefore, that saying has stuck with me and
will for a very long time.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">While I
enjoy working on strategic issues I find that most companies devote much of
their time and energy to day-to-day execution.<span style="mso-spacerun: yes;">
</span>Things that should work like a well-oiled machine often don’t.<span style="mso-spacerun: yes;"> </span>And the cumulative effect of <u>not</u>
“doing things right” shows up on the income statement.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">But what
exactly does “right” mean when it comes to a particular work process or
outcome?<span style="mso-spacerun: yes;"> </span>In many instances, right is not
simply the opposite of wrong but rather is somewhere on the continuum of just
OK to truly excellent or exceptional.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">There are
times when “good enough” actually is all that is needed and going beyond the
minimum standard doesn’t add any value.<span style="mso-spacerun: yes;">
</span>But in most instances, performance is measured on a continuum of
outcomes and constantly striving to do better is critical.<span style="mso-spacerun: yes;"> </span>In these instances, it is not just about
doing things right, it is about doing things “righter” than you did them
yesterday.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">It is
important to always seek to improve business processes.<span style="mso-spacerun: yes;"> </span>While a process that was put in place years
ago may be working, that doesn’t mean it is at optimal efficiency.<span style="mso-spacerun: yes;"> </span>Customers change, products and services
change, new competitors spring up while old ones fade away, and technology has
dramatically changed the way we all live and work.<span style="mso-spacerun: yes;"> </span>That means that business processes need to
change as well.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">This isn’t
limited to your core manufacturing or service processes (although those are
critical) but also includes your HR practices, accounting procedures, customer
service interactions, and everything else you do in your organization.<span style="mso-spacerun: yes;"> </span>Think about it, even janitorial staffs have
had to change their processes to deal with recycling as opposed to throwing
everything in the trash.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";"><br />
In a world where change is the ever present constant, it’s more important than
ever to ask if your business processes are not just keeping pace with the times
but helping your company outperform its competitors. </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Are you
doing things “righter” today than you did them yesterday? </span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="mso-spacerun: yes;"> <span style="font-family: "Tahoma", "sans-serif";"><span style="mso-spacerun: yes;"><span style="mso-spacerun: yes;">For more information,
visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></span></span><br />
</span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif"; font-size: small;">®<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span><br />
</span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><br />
Copyright @ 2013 Homza Consulting, Inc.</span><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-47063382361169571062013-09-29T16:59:00.001-05:002013-11-25T17:36:11.716-06:00Strategy vs. Execution (September 2013)<!--[if !mso]>
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<![endif]--><span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">The other
evening I was at a dinner party and the subject of strategy vs. execution came
up. I’ve played lead roles on both
strategy and implementation teams so I have experience in both areas (still it
was a Saturday evening and I tried to steer the conversation back to favorite
vacation spots). </span></span><br />
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">In my
opinion, however, the question of asking whether strategy or implementation is
more important is analogous to asking what’s more important in a car, the
engine or the transmission. Neither is
more important than the other because unless you have both, you’re not going
anywhere. The same is true of strategy
and execution. You can have a brilliant
strategy but if you don’t execute, it’s meaningless. Similarly, you can be great at execution but
unless you have a strategy that is in tune with the marketplace and your competitive
position you will find yourself perfectly executing a strategy that doesn’t
move the business forward in any meaningful way. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">Early in my
career, I was part of a company that was well known for strategy development
but fell short on implementation. The
company never achieved its potential and lost significant momentum and market
share as a result. It had leading
products and great ideas about how to position them in the marketplace as well
as future needs but was always a step behind when it came to
implementation. In short, something was
“lost in translation”. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">On the other
end of the spectrum, I have worked with teams who are excellent at implementation
but never take a moment to step back and ask if they are doing the right
things. They would benefit tremendously
from taking the time to step away from day to day implementation and think
strategically about how to grow their business. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">A business
is a system and the only way to maximize the efficiency of that system is to
make sure that the system is operating effectively as a whole. Over
emphasis of one component to the detriment of others does not accomplish this
goal. Rather, every area of the business
needs attention. If a business does not
regularly think about its long term strategic vision and where it is trying to
go over the next three to five years relative to its external operating environment
then it is leaving its future to chance and is likely to fall short of its
competitors. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">On the other
hand, if the business has a brilliant strategy but cannot effectively execute
on that strategy by doing literally thousands of things well every single day,
then the vision is unlikely to turn into reality. Rather the company will be finding itself
revisiting and updating the strategy but never making progress toward its
goals. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">Obviously,
any discussion about strategy could take up far more space than I devote to it
here and countless books have been written on the subject. And the same is true of implementation and
operations. But excellence in both
strategy and execution is necessary to achieve optimal performance and stand
out from the crowd regardless of industry.
</span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">Think about
your company. Are you both thinking
strategically as well as striving for excellence in the implementation of that
strategy? </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you. Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> </span></span><span style="font-family: "Tahoma","sans-serif";"><span style="mso-spacerun: yes;"><span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></span></div>
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "Tahoma","sans-serif";">
</span></span><span style="font-size: small;"><b><span style="color: black; font-family: "Century Gothic","sans-serif";">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif";">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif";"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif";">is
flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif";"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif";">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif";">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";">®
<br />
</span></sup><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"> <br />
Copyright @ 2013 Homza Consulting, Inc.</span></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-26052659359025982892013-08-30T06:59:00.001-05:002013-08-30T06:59:09.299-05:00(Little) Buying Influencers (August 2013)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Last month I
wrote about customer loyalty and posed the question of whether businesses understood
why customers stay with them.<span style="mso-spacerun: yes;"> </span>But what
influences buyers in the first place? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">As a former
finance leader at LensCrafters I was one of the key proponents of attracting
kids into the buying cycle for their first pair of glasses.<span style="mso-spacerun: yes;"> </span>Fortunately, not many children need glasses
but getting them into the cycle early can create an enormous value chain.<span style="mso-spacerun: yes;"> </span>If you develop a buying habit early, it can
be tough to break – particularly if the business provides a great product or
service.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Businesses,
particularly retail, need to realize that kids can be tremendous influencers.<span style="mso-spacerun: yes;"> </span>Now, they are clearly not making major buying
decisions but they can be influential enough to push decisions that are on the
margin.<span style="mso-spacerun: yes;"> </span>Large companies spend huge
amounts marketing to kids but even products and services not marketed to
children can be influenced by them.<span style="mso-spacerun: yes;"> </span>Here
are a few examples (all from a five year old).<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">More than
once I’ve gone to the car wash with the “rainbow colored soap” because my
little guy thinks it’s fun to watch the colors run together.<span style="mso-spacerun: yes;"> </span>I can’t help wondering if the soap
manufacturer thought of this or if it is just accidental.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">I bought a
dishwasher at a Sears Appliance retail store in part because it was easy to
shop with a child.<span style="mso-spacerun: yes;"> </span>Yes, they have good
selection, pricing and service, but they also have a small table, chairs,
crayons and coloring book to keep the little ones entertained so that you
actually have time to make a buying decision.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">My new
favorite place for a burger is Five Star, in part because they serve great
burgers and in part because they have a good children’s menu.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
Many businesses don’t have the opportunity (or the desire) to have children
help influence the buying decision.<span style="mso-spacerun: yes;"> </span>But
the broader point of this message is for businesses to stand back and
understand the key motivations for customers to come to them in the first
place.<span style="mso-spacerun: yes;"> </span>What brings them in the door and
what keeps them coming back?<span style="mso-spacerun: yes;"> </span>What makes
a customer loyal to such a great extent that they don’t even consider other
options?<span style="mso-spacerun: yes;"> </span>What makes a customer choose
one business over another in their initial buying decision?<span style="mso-spacerun: yes;"> </span>Particularly for this last question, the
answer can help formulate a long term buying cycle of substantial value.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Businesses
that understand customer motivations can do a better job of attracting (and
retaining) customers.<span style="mso-spacerun: yes;"> </span>This translates
into top line growth and ultimately into enhanced shareholder value.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">As you think
about your business, ask yourself the following:<span style="mso-spacerun: yes;"> </span>What were the key influencers that motivated customers
to try your business the first time and what is the strategy to leverage the
same motivations to attract new customers? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <span style="mso-spacerun: yes;"><a href="http://www.blogger.com/null"><script a=""> type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></a></span></span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span></span></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="color: #333333; font-family: "Tahoma","sans-serif";">Copyright @ 2013 Homza Consulting, Inc.</span><span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-86146650968008608732013-07-31T06:31:00.001-05:002013-07-31T06:31:37.484-05:00Loyalty vs. Inertia (July 2013)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Are
your customers loyal or are they returning due to habit or the inertia of not
wanting to invest the energy to find an alternative?<span style="mso-spacerun: yes;"> </span>For some businesses, it is easy for
customers to change.<span style="mso-spacerun: yes;"> </span>For others, it
takes a bit of work so customers continue to patronize a business even after
the quality of the product or service has declined.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">
I recently had a customer service representative for an insurance company thank
me for my loyalty to which I responded:<span style="mso-spacerun: yes;">
</span>“Don’t confuse loyalty with inertia.”<span style="mso-spacerun: yes;">
</span>They were taken aback by my response but I had been disappointed with my
agent’s service for some time and it has only been my busy schedule and limited
agent interaction that kept me from making a change.<span style="mso-spacerun: yes;"> </span>Fortunately (for me) and unfortunately (for
my prior agent) that question alone was the spark I needed to look for a new
agent.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";">The
straw that broke the camel’s back literally came the next day when I was trying
to get a loaner car and was carrying an expired insurance card.<span style="mso-spacerun: yes;"> </span>At 4:30 in the afternoon no one answered my
insurance agent’s phone.<span style="mso-spacerun: yes;"> </span>Typical, but even
had someone answered their employee turnover is so high that the person
answering is almost always too new to help.<span style="mso-spacerun: yes;">
</span>I solved the insurance card problem without their assistance.<span style="mso-spacerun: yes;"> </span>It was now after 5:00 and I returned a call
from a new agent hoping to get my business.<span style="mso-spacerun: yes;">
</span>He had time to see me before he left for the day.<span style="mso-spacerun: yes;"> </span>I went straight to his office and made the
switch.<span style="mso-spacerun: yes;"> </span>While I was there, he showed me
the app they have so that I can always have my current insurance card on my
phone . . . apparently, I’m not the only one who forgets to put the new card in
their wallet.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">This
story is one of the reasons I am a fan of tools that are aimed at better
understanding the customer experience.<span style="mso-spacerun: yes;"> </span>For
a business to improve customer service, they have to understand their service
levels from the perspective of the customer.<span style="mso-spacerun: yes;">
</span>A business should actively solicit customer feedback . . . and it
doesn’t have to be a formal survey.<span style="mso-spacerun: yes;"> </span>A
visit from the company owner or president is likely to turn up some interesting
insights.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Further,
it’s important to seek out problems in order to find areas to meaningfully
improve.<span style="mso-spacerun: yes;"> </span>Some of your most frustrated
customers won’t bother to spend the time to respond to a survey.<span style="mso-spacerun: yes;"> </span>I have literally scribbled “your service is
terrible” across surveys and given my phone number to see if anyone would call
me.<span style="mso-spacerun: yes;"> </span>I have never gotten a call.<span style="mso-spacerun: yes;"> </span>The business wasted a great opportunity to
get candid feedback.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">The
goal of these tools isn’t to validate that things are OK.<span style="mso-spacerun: yes;"> </span>Too often, customer surveys are considered a
waste of money because no one really digs in and understands unique experiences
that are driving the numbers.<span style="mso-spacerun: yes;"> </span>Customer
experiences can’t be understood statistically without the person interpreting
them having actually experienced what the customer encounters.<span style="mso-spacerun: yes;"> </span>It’s also important to keep in mind that the
buying process is more emotional than analytical.<span style="mso-spacerun: yes;"> </span>The goal is to hear from the most outspoken
customers and consider the validity of their feedback, learn from it, and
improve the customer experience.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Are
your customers true fans or are they returning out of habit or just haven’t yet
taken the time to actively seek an alternative?<span style="mso-spacerun: yes;"> </span>Unless they are true fans, it only takes a
chance encounter with a better vendor or one event that loses a customer
forever.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
If your customers can’t honestly say that they would recommend your business to
a friend then they are at risk.<span style="mso-spacerun: yes;"> </span>What
keeps your customers coming back . . . is it loyalty or inertia?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span><br />
</span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know
where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span></span></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="color: #333333; font-family: "Tahoma","sans-serif";">Copyright @ 2013 Homza
Consulting, Inc.</span><span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-87092590837852335112013-06-28T11:24:00.000-05:002013-06-28T11:35:52.091-05:00The Art of Delegating (June 2013)<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Delegating
is an art.<span style="mso-spacerun: yes;"> </span>There is a huge difference
between delegating responsibility versus tasks.<span style="mso-spacerun: yes;">
</span>There are also vast differences between delegating to one individual
versus another.<span style="mso-spacerun: yes;"> </span>To delegate
responsibility can initially take more effort than doing something yourself but
in the long run, it is worth it.<span style="mso-spacerun: yes;"> </span>When
you delegate responsibility, you are ultimately teaching others what you know
and adding to their skill base.<span style="mso-spacerun: yes;"> </span>Initially,
it might require a fair amount of time and follow up but in the long run, you
will have transferred a skill or knowledge to someone else which will make them
a more valuable resource to the organization.<span style="mso-spacerun: yes;">
</span>In addition, it also gives you more time to think more strategically and
take on bigger challenges.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">With respect
to individuals, some people take the ball and run with it while others need
constant direction in order to accomplish even the simplest tasks.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>It is
this former group that is likely to learn and grow with an organization while
the latter will likely remain in a similar position doing routine tasks for an
extended period of time.<span style="mso-spacerun: yes;"> </span>In some
instances, there is a place for them, in others, their lack of growth makes
them less relevant to the organization over time and they end up out of a
job.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Generally,
my goal is to delegate responsibility to the greatest extent possible so that I
can move onto other items (hopefully more important tasks that add more value
to the organization).<span style="mso-spacerun: yes;"> </span>Delegating is a
tool to allow me to become more effective.<span style="mso-spacerun: yes;">
</span>I never want to do the same thing more than a couple of times which is
what it takes to understand the process, improve it, and transfer the knowledge
to someone else. <span style="mso-spacerun: yes;"> </span>To the extent this is
practiced across the organization (accompanied by automating tasks – effectively
delegating to a machine) this allows an organization to move forward.<span style="mso-spacerun: yes;"> </span>Certainly there is a role for adding people
as an organization grows and at times it is appropriate to “throw more bodies”
at the task in order to get the job done; however, this is a short term
solution and a distant second to improving processes and automating.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">In order for
delegation to work effectively, however, there must be two parties.<span style="mso-spacerun: yes;"> </span>Someone to throw the ball, if you will, and
someone to catch it.<span style="mso-spacerun: yes;"> </span>If you don’t have
someone on the receiving end who is willing to accept responsibility and grow
in their role, then the process will likely be frustrating and the results will
not be worth the effort.<span style="mso-spacerun: yes;"> </span>In addition,
you need a party who is willing to “let go” and transfer some of their
responsibility to other individuals. Some
people look for opportunities to do this so that they can accept new
challenges.<span style="mso-spacerun: yes;"> </span>Others seem to hoard their
current responsibilities.<span style="mso-spacerun: yes;"> </span>Sometimes this
is because they fear a loss of control, loss of perceived power, or believe no
one can perform as well as they can.<span style="mso-spacerun: yes;"> </span>Whatever
the reason, they eventually become a barrier to both their own success and the
success of the organization.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Think about
how effectively you delegate and whether you are maximizing the potential of
yourself and those around you.<span style="mso-spacerun: yes;"> </span>Ultimately, the success of the organization is
at stake. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span>
<o:p></o:p></span></div>
<br />
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span></span></span></sup><br />
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2013 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-11413449894127617882013-05-31T06:02:00.000-05:002013-05-31T06:02:28.722-05:00Less Is More (May 2013)<span style="font-family: "Tahoma","sans-serif";">I am
currently working on presenting an analysis of spending over various
categories, time periods, and numerous items that are inconsistent from year to
year.<span style="mso-spacerun: yes;"> </span>Fortunately, we have a
substantial amount of detail.<span style="mso-spacerun: yes;"> </span>Sometimes
a lack of detail is the problem in trying to understand a problem. <span style="mso-spacerun: yes;"> </span>In this case, however, the problem is not a
lack of detail but rather being able to distill a large amount of data into a
concise story.<span style="mso-spacerun: yes;"> </span></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">It can be a
difficult balancing act to explain a complex situation simply but that is often
what is required in order for senior executives (who often have neither the
time nor the patience to delve into the details) to arrive at a decision.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">Once you
believe that you understand the problem and you begin trying to put together a
clear, concise summary for others to understand, you may find yourself going
back to the details and doing further exploration.<span style="mso-spacerun: yes;"> </span>I have often found that in trying to provide
an explanation, more questions arise and that the very process of trying to distill
a complex issue to a limited number of underlying root causes requires one to
refine their thinking in order to be crystal clear. </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">In a world
where email and texting have become the primary form of business communication
(often dashed off far too quickly), the well thought out business memo is
somewhat of a lost art.<span style="mso-spacerun: yes;"> </span>And while that
seemingly antiquated form of communication may seem inefficient, there are
times when it was certainly more efficient than a plethora of hastily prepared
emails that are misunderstood and serve primarily to generate more emails.<span style="mso-spacerun: yes;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">As I am
preparing the analysis and trying to explain how a large number of issues have
impacted the financial statements from one year to the next, my initial
assessment is that the issues can be summarized into three key bullets.<span style="mso-spacerun: yes;"> </span>Underneath each of those will be a very
limited number of items listed from largest to smallest.<span style="mso-spacerun: yes;"> </span>While I could list 20-30 items underneath
each bullet, the top three to four will account for 80% of the variance, and listing
more will simply cause the reader to lose focus.<span style="mso-spacerun: yes;"> </span>Instead, we’ll have the detail at hand or in
an appendix in the event that someone wants to see it (usually, there is
comfort taken that the detail is available but people usually trust others to
do the analysis and don’t dive in more deeply than necessary).<span style="mso-spacerun: yes;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">As you think
about any business problem, whether you are trying to explain it to the next
level of management or understand it yourself, try to distill it to its simplest
form.<span style="mso-spacerun: yes;"> </span>Through this process, you’ll
likely gain more clarity of the underlying issues which will help in
identifying potential solutions. <o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">This article
is shorter than most that I publish . . . but then again, less is more. </span><br />
<span style="font-family: Tahoma;"></span> </div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: "Tahoma","sans-serif";">If your
business could benefit from fractional CFO services, I would welcome the chance
to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call
at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span>
</span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<span style="font-family: "Tahoma","sans-serif";"><br />Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span></span></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-size: x-small;"><span style="color: #333333; font-family: "Tahoma","sans-serif"; font-size: small;">Copyright @ 2013 Homza Consulting, Inc.</span><span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-30302111494207683182013-04-29T10:04:00.000-05:002013-04-29T13:57:04.277-05:00What Is Your CFO Thinking About? (April 2013)<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">The
other day I was in a Board meeting awaiting my portion of the presentation I
began thinking about the level of detail that I had at hand.<span style="mso-spacerun: yes;"> </span>Other than to gather a few last minute facts
and write the materials (memo, PowerPoint, etc.) I don’t prepare for Board
meetings.<span style="mso-spacerun: yes;"> </span>I feel it is like preparing
for a test of what you have learned in life . . . either you know and
understand the company or you don’t.<span style="mso-spacerun: yes;"> </span>What
occurred to me, however, is the very different level of detail I have in my
head for various client companies at the same time.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
have a client who is in a very challenging position and as a result I can speak
to the exact amount of cash they collected each day last week.<span style="mso-spacerun: yes;"> </span>I know the AP balance and the five most
critical bills we have to get paid in the coming days.<span style="mso-spacerun: yes;"> </span>I know precise amounts of payroll runs, the
day the cash pulls from the bank and how we have to manage cash so that payroll
clears.<span style="mso-spacerun: yes;"> </span>All of this is important, but
none of it adds long term value other than for the company to survive the next
week so that perhaps we can think about the long term sometime down the road.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">On
the other hand, the Board meeting that I was attending was for one of my most
successful clients.<span style="mso-spacerun: yes;"> </span>Four months into the
year we are ahead of our most aggressive expectations.<span style="mso-spacerun: yes;"> </span>I can speak off the cuff to revenues,
expenses and cash balances relative to plan.<span style="mso-spacerun: yes;">
</span>I can speak to where we have favorable and unfavorable variances and
why.<span style="mso-spacerun: yes;"> </span>I have a framework for speaking to
the amount of cash we will build between now and year end as well as the amount
of debt we will repay. But the facts that do not need to occupy my mind are
exact dates and amounts of specific vendor payments, payroll runs, cash
collection dates, etc.<span style="mso-spacerun: yes;"> </span>As long as we are
managing according to plan all of this can take care of itself and I can leave
the details to the accounting managers.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Instead,
I can use my time to think about various scenarios that we might encounter over
the next three to five years. <span style="mso-spacerun: yes;"> </span>We can develop
scenario planning models on how we will operate under different sets of
economic and industry circumstances.<span style="mso-spacerun: yes;">
</span>The Board kicked off an active discussion of risks the company could
face in the future.<span style="mso-spacerun: yes;"> </span>We plan to follow up
this discussion with an
in-depth call and spend additional time on this topic at a future Board
meeting. <span style="mso-spacerun: yes;"> </span>The night before I had dinner
with a Board member and had a discussion about how we could improve the
financial operations of the firm.<span style="mso-spacerun: yes;"> </span>He
had some good outside perspective and offered to spend some time with the team.
<o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";">My
point is that your CFO should be thinking about long term issues and related
consequences.<span style="mso-spacerun: yes;"> </span>He or she should be part
of an active discussion about long term risks and opportunities to the
business.<span style="mso-spacerun: yes;"> </span>They should either be part of
or driving the strategic planning process.<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span>If they are spending the majority
of their time dealing with near term tactical issues or crises, then that is a
sure sign that the business is troubled and the entire management team needs to
be pulling together to get the company on a stable footing.<span style="mso-spacerun: yes;"> </span>It’s only from that position that the
company can grow and become successful.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If
you’re not sure where your company stands, walk into your CFO’s office and
ask:<span style="mso-spacerun: yes;"> </span>What are you thinking about? <o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"></span><br />
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span>
</span><br />
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<br />
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="color: #333333; font-family: "Tahoma","sans-serif";">Copyright @ 2013 Homza Consulting, Inc.</span><span style="font-family: "Tahoma","sans-serif";"><o:p></o:p></span></div>
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-39800994176511355942013-03-29T07:38:00.002-05:002013-03-29T07:38:42.039-05:00Do What You Should: Not What You Want (March 2013)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">We
can all fall victim to doing things that we like to do rather than doing things
that we should.<span style="mso-spacerun: yes;"> </span>As you go about your
day, and more importantly as you plan the future, it is important to distinguish
between things that you should (or must) do for the growth of your business as
opposed to taking on tasks that feel like progress but are not on the critical
path to truly making the business a success.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
Years ago, I met an entrepreneur who was seeking financial advice.<span style="mso-spacerun: yes;"> </span>At the time we met, he was literally down to
a few weeks of cash to run his business.<span style="mso-spacerun: yes;">
</span>He told me about some wonderful sales opportunities that were “low
hanging fruit” but expressed concern about the ability of his lead sales person
to close the deals.<span style="mso-spacerun: yes;"> </span>I asked him:<span style="mso-spacerun: yes;"> </span>“What are you doing?”<span style="mso-spacerun: yes;"> </span>His eyes lit up as he told me about the next
generation of product he was developing.<span style="mso-spacerun: yes;">
</span>My advice to him was to “stop working on the product and to go close
those sales.”<span style="mso-spacerun: yes;"> </span>He replied: “Oh, I don’t
like doing that.”<span style="mso-spacerun: yes;"> </span>I told him it didn’t
matter what he liked doing it was about what he needed to do.<span style="mso-spacerun: yes;"> </span>Without those sales he had no hope of getting
to the next generation of product yet he was choosing to do what he liked to do
– developing software – as opposed to doing what he should be doing – closing
sales.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<span style="font-family: "Tahoma","sans-serif";">There
is a lesson in this for all of us.<span style="mso-spacerun: yes;"> </span>While
the situation may not be as extreme as in my example (and hopefully it is not)
it is a glaringly obvious example to which you may be able to relate.<span style="mso-spacerun: yes;"> </span>We need to prioritize the limited amount of
time we have in our work lives to do what is most important for the betterment
of our companies, clients, and individual careers.<span style="mso-spacerun: yes;"> </span>It is easy to spend time doing things that
you can justify as important, and perhaps they actually are important, but are
they the most important things you can do?<span style="mso-spacerun: yes;">
</span>Are they the things that add the most value or are they merely things
that we can justify to ourselves and others as being important?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"><br />
One of the things we all have to do in order to do this effectively is to be
able to effectively delegate.<span style="mso-spacerun: yes;"> </span>And to do
that, you need to have some talent around you to whom you can delegate. I am
constantly amazed by people who fail to develop the people around them
(including their own subordinates).<span style="mso-spacerun: yes;"> </span>The
only way you can raise your game (and that of your company) is to work at a
higher level today than you did yesterday.<span style="mso-spacerun: yes;">
</span>For most of us, this means constantly learning and growing so that you
can delegate (or in some cases eliminate) tasks that you have mastered.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"><br />
If you are a leader, you have to spend more of your time thinking and acting on
big picture items that could have significant impact on the business whether or
not that is where you want to be spending your time.<span style="mso-spacerun: yes;"> </span>Ask yourself, what you could do today, this
week, this month, this year that will change the trajectory of your business.
Not by 5% or 10% but by 100% or 1,000%.<span style="mso-spacerun: yes;">
</span>It’s only by thinking about ways to have big impact that you are going
to start to make significant progress.<span style="mso-spacerun: yes;">
</span>Even if you fall short of a 100% goal you will certainly have achieved
more than if you succeed in hitting a 10% goal.<span style="mso-spacerun: yes;">
</span>As Les Brown is quoted as saying, “Shoot for the moon. <span style="mso-spacerun: yes;"> </span>Even if you miss, you'll land among the
stars.” <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> <span style="mso-spacerun: yes;">For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span></div>
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup></div>
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="color: #333333; font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;"><span style="font-size: small;">Copyright @ 2013 Homza
Consulting, Inc.</span><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span><br />
Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-48534939094896312602013-02-28T14:15:00.000-06:002013-02-28T15:03:06.091-06:00Be Here Now (February 2013)<span style="font-family: "Tahoma","sans-serif";">Years
ago, I frequently participated in professionally facilitated strategic planning
sessions.<span style="mso-spacerun: yes;"> </span>I still remember the leader of
one session standing up at the beginning and asking everyone to “Be Here
Now”.<span style="mso-spacerun: yes;"> </span>What did he mean by that?<span style="mso-spacerun: yes;"> </span>Well, it was actually a plea to the people in
the room to be focused on the discussion at hand. This meeting was before the
time when literally everyone was multi-tasking and attending to emails, texts,
and countless other items that now fill our daily work lives. Today, some
companies actually have a “cell phones off” policy during meetings and <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>I
certainly understand why those policies exist. While people are obviously physically present
during meetings their thoughts can be very far away.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">We
have all seen this happen and most of us have been part of the problem when we
were barely paying attention while in a supposedly important meeting.<span style="mso-spacerun: yes;"> </span>While it’s easy to blame the participants
it’s often the case that they are sucked into a meeting which has no agenda, no
set end point, a wandering discussion, and almost no intellectual stimulation.<span style="mso-spacerun: yes;"> </span>No wonder people are bored and trying to get
other tasks done in a work world that has gone far beyond the old
“9 to 5”.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">How
do you keep people engaged?<span style="mso-spacerun: yes;"> </span>Make sure
that there is a compelling reason for people to be at the meeting.<span style="mso-spacerun: yes;"> </span>If the purpose is to convey information, make
sure that it is both relevant and concisely presented. If the purpose is to
make a decision, make sure people know what decision they are being asked to
make up front. <span style="mso-spacerun: yes;"> </span>Stick to the agenda.<span style="mso-spacerun: yes;"> </span>Minimize extraneous conversations that are
not relevant.<span style="mso-spacerun: yes;"> </span>End the meeting on
time.<span style="mso-spacerun: yes;"> </span>Almost everyone’s schedule is
booked non-stop; once you start to encroach upon the other items on people’s
calendar you will undoubtedly lose their attention.<span style="mso-spacerun: yes;"> </span>If you can end the meeting early, don’t drag
it out just to fill the allotted time.<span style="mso-spacerun: yes;"> </span>I
have never heard anyone complain about a meeting that accomplished the
objective but ended early.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Pay
attention to the reactions of people in the room.<span style="mso-spacerun: yes;"> </span>If you can see that you are starting to lose
their attention, do something to get it back.<span style="mso-spacerun: yes;">
</span>Ask them to “Be Here Now” or find some other way to pull their attention
back to the topic at hand.<span style="mso-spacerun: yes;"> </span>If necessary,
quit and reschedule with a better agenda and better prepared materials.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">People
who know me well know that unless it is a strategic planning session or
similar, that my tolerance for a meeting rarely extends beyond an hour.<span style="mso-spacerun: yes;"> </span>If used effectively, a lot can be
accomplished in that time period.<span style="mso-spacerun: yes;"> </span>I
recently participated in a quarterly Board of Directors meeting that covered
2012 full year results, accounting changes, key performance metrics, new
business development initiatives, January revenue performance to plan, status
of the year end audit, performance measures we wanted to introduce for the
upcoming year, an update to 2013 goals and budget, approval of prior meeting
minutes, and a few new business items as well as a potential problem area we
wanted to let the Board know we were watching.<span style="mso-spacerun: yes;">
</span>It was certainly a lot to cover but the meeting ran barely more than an
hour.<span style="mso-spacerun: yes;"> </span>Materials were well prepared and
circulated in advance, people arrived prepared, were focused during the meeting
and none of us who were presenting felt the need to fill more time than was
absolutely necessary.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";">The
next time you are in a meeting, think about that phrase:<span style="mso-spacerun: yes;"> </span>Be Here Now! <o:p></o:p></span><br />
<br />
<span style="font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">If your business could benefit from fractional CFO
services, I would welcome the chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me a call at (314) 863-6637 or
send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span></span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-13069039984566838682013-01-31T07:40:00.000-06:002013-01-31T07:41:39.267-06:00Titles Don't Matter (January 2013)<span style="font-family: "Tahoma","sans-serif";">Titles
don’t matter to true leaders.<span style="mso-spacerun: yes;"> </span>True
leaders do not lead from their title but rather by their actions. They lead by
the decisions they make and how they make them. They lead by including others and
by getting broad input. They embrace others who may disagree with them and seek
to learn from their views.<span style="mso-spacerun: yes;"> </span>They accept
responsibility for both good and bad.<span style="mso-spacerun: yes;">
</span>They delegate authority to act rather than tasks.<span style="mso-spacerun: yes;"> </span>They help those around them learn and
grow.<span style="mso-spacerun: yes;"> </span>They surround themselves with the
smartest people they can find and are not worried if they are not the smartest
person in the room.<span style="mso-spacerun: yes;"> </span>They are not afraid
to admit their mistakes and learn from them.<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"><br />
Whenever someone makes a decision and justifies the decision by reminding
people that their title gives them the authority to make that decision, then
one knows that they do not have the support of the organization.<span style="mso-spacerun: yes;"> </span>They also are admitting that they have little
confidence in their own decision if they have to use their title to back it up
as opposed to making a compelling case based upon logic and the facts at
hand.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Please
note that this is different than “the buck stops here” message.<span style="mso-spacerun: yes;"> </span>All CEO’s know there are times that tough
decisions need to be made and that the executive team is split.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
recently had the opportunity to attend a portion of an all company meeting of a
client firm.<span style="mso-spacerun: yes;"> </span>The leadership openly
talked about both the successes and failures of the recent past.<span style="mso-spacerun: yes;"> </span>When they discussed the successes, they were
quick to share credit.<span style="mso-spacerun: yes;"> </span>When the
discussed the shortcomings, they were quick to take ownership and talk about
what they leaned in the process.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><br />
Another characteristic of leaders that I have noticed over the years is that
they usually introduce themselves without a lot of fanfare. I once heard a
company founder and president introduce himself by saying: “I’m with ABC Company”.<span style="mso-spacerun: yes;"> </span>It was a very modest introduction given his
role and ownership stake. I personally learned the value of this approach during
my tenure at Lens<i style="mso-bidi-font-style: normal;">Crafters</i>.<span style="mso-spacerun: yes;"> </span>I had introduced myself as “one of the
finance guys” to a new employee.<span style="mso-spacerun: yes;"> </span>As I
stepped into the next cubicle to talk to someone else, I could overhear the
conversation that followed.<span style="mso-spacerun: yes;"> </span>A long time
employee laughed at the modesty of my introduction and went on to explain the
scope of my team’s role in the company. It was a much more glowing description
than I would have ever given myself.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Titles
don’t bequeath authority as many seem to think. True authority comes from
leadership.<span style="mso-spacerun: yes;"> </span>And titles are simply the
acknowledgement that later follows. They are nice to have, but you certainly
can’t rely on them to get the job done.<span style="mso-spacerun: yes;"> </span>Whether
you are a C-level executive or low man on the totem pole, think about how you
demonstrate your leadership every day. <span style="mso-spacerun: yes;"> </span>It
has been said if even one person is following you, then you are a leader.<span style="mso-spacerun: yes;"> </span>Think about why people follow your lead.<b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span><br />
</span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<br />
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2013 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-28089353775067042592012-12-31T11:30:00.001-06:002012-12-31T11:30:13.582-06:00Synthesis (December 2012)
<span style="font-family: "Tahoma","sans-serif";">The
Random House College Dictionary defines synthesis as a “process of reasoning in
which the conclusion is reached directly from given propositions and
established or assumed principles.”<span style="mso-spacerun: yes;">
</span>When communicating (whether in business or your personal life) it is
critically important to communicate the complete picture presenting both sides
of any argument along with the perspective and conclusions that are drawn from
the facts at hand.<span style="mso-spacerun: yes;"> </span>Too often, people
communicate disjointed facts and snippets of information without taking the
time to bring true meaning and value to the words they are putting “on paper” (of
course, on paper intended to cover electronic communications as well).<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Too
often, readers end up shaking their heads and wondering what the sender was
trying to tell them.<span style="mso-spacerun: yes;"> </span>Frequently, this
generates a quick email reply and before you know it, there are dozens of
emails flying back and forth in an effort to get a point across.<span style="mso-spacerun: yes;"> </span>The time wasted trying to make sure that all
parties understand each other can be enormous especially when compared to the
amount of time proper communication would have taken in the first place.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Worse,
is when the “sound bite” sized communication is completely misunderstood and
left unquestioned.<span style="mso-spacerun: yes;"> </span>The writer has one
thing in mind, the reader something quite different but the communication was
so limited that the interpretation is literally left to the imagination.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Often
miscommunication is unintentional, but there are also times when it is truly
the case that the sender is simply not relaying all the information they have
at hand.<span style="mso-spacerun: yes;"> </span>The sender may be trying to
paint a version of the truth to portray him or herself in the best possible
light; and at times is intentionally misleading.<span style="mso-spacerun: yes;"> </span>We all make honest mistakes and miscommunicate
from time to time, but to intentionally leave out facts and mislead is
unforgivable.</span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">We
have all seen people act based upon misinformation. <span style="mso-spacerun: yes;"> </span>I am in the midst of cleaning up one such mess
right now.<span style="mso-spacerun: yes;"> </span>In this case, there are at
least five parties (myself included) to be blamed (not that establishing blame
at this point does much good).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">When
you are on the receiving end of communications, step back and consider whether
or not it appears you are getting all of the relevant information.<span style="mso-spacerun: yes;"> </span>Are there facts that you wish you had that
might change the overall conclusion?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Also,
“consider the source”.<span style="mso-spacerun: yes;"> </span>If you read with
a critical eye, you will begin to learn who communicates to you in a “fair and
balanced” approach versus those that are “leading the witness” with a slanted view
of the facts driven at trying to reach a spurious conclusion. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">
When you are the sender, make sure that you take the extra time to communicate
properly.<span style="mso-spacerun: yes;"> </span>Sometimes, it is as easy as an
introductory sentence or two in an email about the spreadsheet or word document
that is attached.<span style="mso-spacerun: yes;"> </span>Too often, people
simply say, “See attached” without a word as to what they wanted the reader to
take away from the attachment.<span style="mso-spacerun: yes;"> </span>Proper
synthesis of information will make for better communications, quicker and more
appropriate action, and ultimately a more profitable company.<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> <b><span style="color: black; font-family: "Century Gothic", "sans-serif"; mso-bidi-font-family: Arial;"><br /></span></b></span><br />
</span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";"></span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup></div>
<br /><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2012 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-81028503187661978732012-11-30T13:37:00.000-06:002012-11-30T13:37:15.002-06:00Action (November 2012)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
am always amazed at the lack of action I see in companies that are in the midst
of crisis.<span style="mso-spacerun: yes;"> </span>Problems abound and people
generally know what they are but everyone seems to tolerate them for some
reason or another.<span style="mso-spacerun: yes;"> </span>In cases such as
these, I ask a lot of questions but then finding myself telling people what to
do.<span style="mso-spacerun: yes;"> </span>My preference is not to give orders
but rather to help people learn how to make better decisions.<span style="mso-spacerun: yes;"> </span>Ultimately, I want to leave each of my
clients better than I found them.<span style="mso-spacerun: yes;"> </span>I want
their processes to be better and more efficient.<span style="mso-spacerun: yes;"> </span>Revenues and profits should be up and the
staff should have skills they didn’t have before I arrived on the scene.<span style="mso-spacerun: yes;"> </span>That being said, sometimes I have to make
staff development a longer term goal in order to be effective immediately. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
always get surprised looks when I tell people to change operating procedures,
to do things they haven’t done before, to stop doing things they have done
“forever”, and when I invariably restructure financial reports.<span style="mso-spacerun: yes;"> </span>A typical question I get is whether the CEO
or owner had said “yes” to my direction.<span style="mso-spacerun: yes;">
</span>My response is always the same. “I didn’t ask.”<span style="mso-spacerun: yes;"> </span>Too many people, sometimes even at
surprisingly high levels, have the belief that they should get permission for
everything that they do.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">
A favorite boss of mine told me something early in my career that I will always
remember. It is better to ask for forgiveness than permission.<span style="mso-spacerun: yes;"> </span>He added, you’ll always get forgiveness but
you’ll never get permission. <span style="mso-spacerun: yes;"> </span>He had a reputation
for being a bit of a cowboy in the organization.<span style="mso-spacerun: yes;"> </span>He also had the reputation for being highly
effective.<span style="mso-spacerun: yes;"> </span>He and I shared the belief
that if you wait for permission, you’ll never get anything done.<span style="mso-spacerun: yes;"> </span>In the entire time we worked together we were
only challenged once for breaking the rules.<span style="mso-spacerun: yes;">
</span>It was a challenge that was easily overcome. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Another
question I often get is “What if we make a mistake?” <span style="mso-spacerun: yes;"> </span>“Then we’ll fix it”, I reply.<span style="mso-spacerun: yes;"> </span>Everyone makes mistakes but what people
often don’t realize is that they are making mistakes every day by not doing
things differently.<span style="mso-spacerun: yes;"> </span>They feel that by
following rules and procedures they are “being safe”.<span style="mso-spacerun: yes;"> </span>Usually the opposite is true.<span style="mso-spacerun: yes;"> </span>They are developing a reputation for
themselves of not being effective.<span style="mso-spacerun: yes;"> </span>Moreover,
that puts them in the “part of the problem” camp as opposed to the “part of the
solution” camp.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
am not suggesting breaking rules or abandoning procedure just for the sake of
doing so.<span style="mso-spacerun: yes;"> </span>Processes and procedures do
exist for a reason. <span style="mso-spacerun: yes;"> </span>But when a company
is in crisis, things need to change and change comes from taking action. <span style="mso-spacerun: yes;"> </span>Often, a big part of the reason a company is
in crisis is due to lack of action. <span style="mso-spacerun: yes;"> </span>People wait and hope for things to get better
even in the face of overwhelming evidence that something needs to change.<span style="mso-spacerun: yes;"> </span>Sure, there will be a few mistakes along the
way but if action is well thought out it’s highly unlikely that those mistakes
will be any worse than the alternative.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Look
around your organization. <span style="mso-spacerun: yes;"> </span>Think about
the way things are being done and what is not being done.<span style="mso-spacerun: yes;"> </span>Then take action.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">If
your business could benefit from fractional CFO services, I would welcome the
chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please give me
a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;"> For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> </span></span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"><br />your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup></div>
<br />
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2012 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-33220864559363271822012-10-31T12:38:00.000-05:002012-10-31T12:38:32.339-05:00Are You Driving Busines Away? (October 2012)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">I
know this sounds ridiculous but October seemed to be the month where retailers
were determined to drive business away.<span style="mso-spacerun: yes;">
</span>Maybe it is just me but with third quarter economic growth just 2%, I’d
think more businesses would be doing everything they could to get more
customers.<span style="mso-spacerun: yes;"> </span>Frankly, I think many
businesses are trying but something is clearly getting lost in the translation
between owners and the front line customer service people.<span style="mso-spacerun: yes;"> </span>Here are a few examples.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">My
wife and I were out on a Saturday evening.<span style="mso-spacerun: yes;">
</span>It was about 5:40 PM and I called a new restaurant to ask if they had a 6:00
o’clock table.<span style="mso-spacerun: yes;"> </span>The person on the other
end of the phone said she didn’t know how crowded it would be . . . they were
expecting a lot of people very soon.<span style="mso-spacerun: yes;"> </span>She
basically discouraged us from coming. <span style="mso-spacerun: yes;"> </span>They are new and I have never seen them that
busy.<span style="mso-spacerun: yes;"> </span>Besides, this is fairly early
dining on a Saturday.<span style="mso-spacerun: yes;"> </span>It was on the
way home so we just swung by . . . they were half empty!<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>We had
a nice dinner but I still wonder what was going through her mind when she
answered the phone?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">The
same weekend (on Sunday) we stopped by a local garden center.<span style="mso-spacerun: yes;"> </span>We had a coupon and were told it wasn’t good
until Monday (it was in the fine print which I will admit that I rarely read).<span style="mso-spacerun: yes;"> </span>Ordinarily, I’d just say “OK” but the person
went on to tell me I wasn’t the first customer to ask and that management knew
everyone would want to use the coupon that weekend and decided it was better to
say “no”.<span style="mso-spacerun: yes;"> </span>She then further proceeded to
explain how they couldn’t take a $5.00 coupon a day early without reprogramming
the computer system and how much work that would have been.<span style="mso-spacerun: yes;"> </span>I shook my head, made a $2 purchase (because
it was something my four year old had selected and I didn’t want to disappoint
him) and left $30 worth of flowers behind. <span style="mso-spacerun: yes;"> </span>I’m not sure why the employee felt she had to explain
so much but I just couldn’t bring myself to patronize a business that intentionally
made a decision which was adverse to the customer.<span style="mso-spacerun: yes;"> </span>I bought the flowers at a different garden
center on the way home.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">A
local personal services company sent me an email offering a discount on a punch
card.<span style="mso-spacerun: yes;"> </span>I don’t frequent them very often
(which they actually mentioned in the email – they were trying to get me in the
door more frequently). <span style="mso-spacerun: yes;"> </span>It was a nice
email and a good offer so I decided that I’d stop in and buy the card the next
time I was in the area.<span style="mso-spacerun: yes;"> </span>In theory, this
is great for the business.<span style="mso-spacerun: yes;"> </span>They get cash
up front and the card in my wallet is a constant reminder that I should
patronize them (especially since I‘ve already paid for services).<span style="mso-spacerun: yes;"> </span>I stopped in to buy it.<span style="mso-spacerun: yes;"> </span>The person at the front desk said he had
heard something about the email but didn’t really know the specifics of the
deal.<span style="mso-spacerun: yes;"> </span>He suggested I go home, print the
email and bring it back so he could honor it.<span style="mso-spacerun: yes;">
</span>Unbelievable.<span style="mso-spacerun: yes;"> </span>The owner sent out
an email, actually got me to stop by with cash in my pocket, and the guy at the
front desk turned me away.<span style="mso-spacerun: yes;"> </span>I’d still go
there – but just haven’t been back.<span style="mso-spacerun: yes;">
</span>Shouldn’t they have taken my money when I offered it to them? <o:p></o:p></span></div>
<span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";">So,
what’s the point?<span style="mso-spacerun: yes;"> </span>Make sure you understand
how the people who interact with customers (or potential customers) are
behaving.<span style="mso-spacerun: yes;"> </span>Are they doing everything
possible to win business or acting like the people I mentioned above.<span style="mso-spacerun: yes;"> </span>Big companies “secret shop” their own
stores.<span style="mso-spacerun: yes;"> </span>They do this for a reason.<span style="mso-spacerun: yes;"> </span>Are you driving business away? <o:p></o:p></span><br />
<span style="font-family: "Tahoma","sans-serif";"><span style="mso-spacerun: yes;"> </span><br />
If your business could benefit from fractional CFO services, I would welcome
the chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please
give me a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script><span style="mso-spacerun: yes;">
For more information, visit <a href="http://www.homza.com/"><strong><span style="color: #669922;">www.homza.com</span></strong></a> </span><br />
</span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<br />
<div class="MsoNormal" style="margin: 9pt -9pt 0pt 0in; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2012 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-88128322030905366722012-09-29T06:49:00.000-05:002012-09-29T06:56:07.235-05:00Thinking Beyond Tomorrow (September 2012)<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Most
businesses think that strategic planning is something that only Fortune 500
companies need to worry about.<span style="mso-spacerun: yes;"> </span>The truth
is that all businesses need to think about their strategic direction.<span style="mso-spacerun: yes;"> </span>While the time devoted to the strategic
planning process differs depending upon the size of the company, the thought
process is the same. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Generally,
strategic planning focuses on what you want to achieve and tactical planning
focuses on the specific steps of how to get there.<span style="mso-spacerun: yes;"> </span>There have been countless books written on strategic
planning so I won’t spend any time on that today.<span style="mso-spacerun: yes;"> </span>Instead, I want to emphasize the importance
of the strategic planning processes to a business . . . especially if you are
not doing it today. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Unless
management takes time out from day to day activities to plan its future, it
will likely end up doing more of the same which is almost always sub-optimal.<span style="mso-spacerun: yes;"> </span>Specifically, management needs to give
consideration to the core strengths of the organization and how those fit against
market opportunities. <span style="mso-spacerun: yes;"> </span>It is also
important to consider how core strengths differ from that of the competition. If
all of your competitors are equally good at something, then it isn’t much of a
differentiator.<span style="mso-spacerun: yes;"> </span>Whereas if you are
clearly better at something compared to your competitors then that is an
opportunity to differentiate yourself in the marketplace assuming the customer
cares about that difference and is willing to act because of it.<span style="mso-spacerun: yes;"> </span>That action may be simply choosing you over
your competitor or the advantage may be so great that they are willing to pay a
premium.<span style="mso-spacerun: yes;"> </span>The exercise may also help
identify gaps that need to be filled in order to make the company more
successful.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">
Turning the strategic planning process into goals and a roadmap will help the
organization focus on what it wants to take on over the next 2-3 years.<span style="mso-spacerun: yes;"> </span>Just as importantly, it can help the
organization decide the kinds of things that it will <i style="mso-bidi-font-style: normal;"><u>not</u></i> try to do over the same time period.<span style="mso-spacerun: yes;"> </span>Both are important. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">
I have seen organizations suffer from a lack of ideas just as I have seen them
suffer from too many ideas.<span style="mso-spacerun: yes;"> </span>Some
companies are so rooted in “we’ve always done it that way” that they are living
in the past.<span style="mso-spacerun: yes;"> </span>They have not changed their
product, marketing, or their internal process and haven’t looked outside
themselves to recognize their deficiencies.<span style="mso-spacerun: yes;">
</span>Accordingly, they are not set up to compete in the world in which we
live.<span style="mso-spacerun: yes;"> </span>On the other hand, some businesses
suffer from so many new ideas that none of them actually get fully
implemented.<span style="mso-spacerun: yes;"> </span>They start implementing a
new idea and stop to go onto the next one without ever making much progress. <span style="mso-spacerun: yes;"> </span>In both cases, a few days invested in
purposefully planning the business can make a dramatic difference.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";">Strategic
planning is really a matter of asking oneself “what do we want this business to
look like at some point in the future and what specific actions do we have to
take in order to get there from where we are now?”<span style="mso-spacerun: yes;"> </span>Do you have a plan? </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="font-family: "Tahoma","sans-serif";"><span style="mso-spacerun: yes;"> </span><br />
If your business could benefit from fractional CFO services, I would welcome
the chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please
give me a call at (314) 863-6637 or send an email to <a href="mailto:ken@homza.com"><span style="color: blue;">ken@homza.com</span></a><span style="mso-spacerun: yes;"> For more information, visit <a href="http://www.homza.com/">www.homza.com</a> </span></span><br />
<span style="font-family: Tahoma;"></span><br />
<span style="font-family: "Tahoma","sans-serif";">
<script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script>
</span><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup></div>
<span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="color: #333333; font-family: "Tahoma","sans-serif";"><span style="font-size: x-small;"><span style="font-size: small;">Copyright @ 2012 Homza
Consulting, Inc.</span><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0tag:blogger.com,1999:blog-8498824027548419396.post-8954954214075409442012-08-31T13:09:00.001-05:002012-08-31T13:09:43.235-05:00Exit Timing (August 2012)
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<span style="font-family: "Tahoma","sans-serif";">Companies
are sold for a variety of reasons.<span style="mso-spacerun: yes;"> </span>The
driving issue can be strategic fit, capital needs, succession planning
(especially in the case of family held businesses), duration (in the case of
private equity firms) or others.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Tahoma","sans-serif";"><span style="mso-spacerun: yes;"></span></span> </div>
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<span style="font-family: "Tahoma","sans-serif";">Regardless
of the reason, however, for businesses that have reached some level of maturity
(i.e., other than high growth businesses that need capital to grow the company)
the best way to maximize value is to have a company that you do <b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">not</i></b>
have to sell.<span style="mso-spacerun: yes;"> </span>When a company is forced
to sell, they often have few alternatives and will be lucky to find one potential
buyer if they can get a deal done at all.<span style="mso-spacerun: yes;">
</span>In these situations, the golden rule prevails (he who has the gold
rules).<span style="mso-spacerun: yes;"> </span>The seller is likely to end up
with a “take it or leave it” offer and with no other choices will likely “take
it”. </span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
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<span style="font-family: "Tahoma","sans-serif";">On
the other hand, when a company is strong there may be multiple potential buyers.<span style="mso-spacerun: yes;"> </span>Some may see a strategic fit, some may see
substantial operating synergies, while some others may be purely financial
buyers seeking to acquire the company for its strong operating cash flows.<span style="mso-spacerun: yes;"> </span>In cases such as these, a seller will likely
be able to generate interest from a handful of potential buyers and create a
bidding war for the company.<span style="mso-spacerun: yes;"> </span>The result
will be a much higher transaction price than what could be obtained in the
absence of competition.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
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<span style="font-family: "Tahoma","sans-serif";">So,
how does one arrive in such an enviable situation that there are multiple
potential buyers clamoring for the same business.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>The
answer is that one has to build a business that has real value.<span style="mso-spacerun: yes;"> </span>That may be intellectual property, strong
distribution, a particularly strong product line-up, real or perceived barriers
to entry, or strong EBITDA and cash flow. <span style="mso-spacerun: yes;"> </span>Most likely, the business has more than one
of these characteristics.<span style="mso-spacerun: yes;"> </span>When
businesses have one or more key value propositions, they have options when it
comes to exit timing.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
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<span style="font-family: "Tahoma","sans-serif";">Too
often, businesses, especially small businesses, are looking to sell at a time
when they are weak.<span style="mso-spacerun: yes;"> </span>For one reason or
another (usually cash flow or lack thereof, they have to sell).<span style="mso-spacerun: yes;"> </span>I have literally sat across the table from
sellers like this and while they try to argue for higher value, an astute buyer
knows that they are in control.<span style="mso-spacerun: yes;"> </span>They
will put just enough on the table to get a deal done.<span style="mso-spacerun: yes;"> </span>Not a penny more.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
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<span style="font-family: "Tahoma","sans-serif";">There
are some who argue that the sale of a business is something that should be
planned three to five years in advance.<span style="mso-spacerun: yes;"> </span>If
you are running a business that doesn’t have one of more of the value propositions
mentioned above, that is certainly true. <span style="mso-spacerun: yes;"> </span>You will need time to develop value in the
business.<span style="mso-spacerun: yes;"> </span>If, on the other hand, the business
has been run from day one with an eye toward value creation, then I would argue
that the business is always in shape for a transaction.<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Tahoma","sans-serif";"><o:p> </o:p></span></div>
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<span style="font-family: "Tahoma","sans-serif";">Run
your business in order to create lasting value.<span style="mso-spacerun: yes;">
</span>That puts you in control when the time comes to sell your business
(whether you initiate the sale or the opportunity of a lifetime comes your
way).<span style="mso-spacerun: yes;"> </span>A business of lasting value gives
you options.<span style="mso-spacerun: yes;"> </span>And options are always
valuable.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Tahoma","sans-serif";"><span style="mso-spacerun: yes;"> </span><br />
If your business could benefit from fractional CFO services, I would welcome
the chance to speak with you.<span style="mso-spacerun: yes;"> </span>Please
give me a call at (314) 863-6637 or send an email to <script type="text/javascript">document.write(unescape("%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%22%20%3e%6b%65%6e%40%68%6f%6d%7a%61%2e%63%6f%6d%3c%2f%61%3e"));</script> For more information, visit <a href="http://www.homza.com/">www.homza.com</a> <br />
</span></div>
<b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">your </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">cash</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">is flowing.</span></b><b><span style="color: red; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> </span></b><b><span style="color: green; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">know where</span></b><b><span style="color: black; font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">.</span></b><sup><span style="font-family: "Tahoma","sans-serif";"><span style="font-size: small;">®<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></sup><br />
<br /><span style="font-family: "Tahoma","sans-serif";">Ken Homza<span style="color: #333333;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="color: #333333; font-family: "Tahoma","sans-serif"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Copyright @ 2012 Homza Consulting, Inc.</span>Ken Homzahttp://www.blogger.com/profile/10496667962888033933noreply@blogger.com0