GIE Expo Reflections

The 2009 GIE Expo, held again in Louisville, Kentucky was an action-packed week of networking and educational sessions. I had the honor of delivering two sessions, including a 3-hour workshop on Strategic Planning. I also met many new people from all over the U.S., Canada, and Puerto Rico. It’s very rewarding to be associated with such a fine group of individuals who care about and support our industry!

Bidding War

Have you ever been in a bidding war when you didn’t even realize it? I know I have. I’ll explain in a minute. But first, I want to give you some background.

I work with many clients who find themselves in bid situations. While they would all prefer not to have to bid on work against their competitors, they realize that in many cases they have no choice, unless they just want to walk away.

I understand this dilemma. I also don’t like to bid. I prefer to work with a client as a strategic partner to develop a customized solution. But sometimes I end up bidding, whether I know it or not.

Recently, I was one of two bidders for a consulting engagement. I didn’t realize it was a bid situation until after the decision was made. Thankfully, I was the winner and had the opportunity to see the other consultant’s bid. As you know, this market intelligence is often hard to get and is very valuable.

Buyers are becoming increasingly sophisticated in their approaches to making purchase decisions. For this reason, companies and salespeople must be aware of the psychology involved and do everything in their power to impact the situation in their favor. Old school cliches no longer apply.

Will I ever knowingly enter into a bid situation for my services? Probably not. Will I unknowingly enter into a bid situation for my services? Every day. There’s no way to avoid it.

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Healthy Subcontractor Relationships

This Thursday, I’ll be presenting an educational session on creating healthy relationships with subcontractors. My audience will be a large (hopefully!) group of contractors.

In my experience, I have seen two types of contractors. First, there are the contractors who could care less about their subs, outside of their performance related to the contract. Second, there are contractors who work to create long-term relationships with their subs.

I have seen plenty of examples of each type of contractor and look forward to sharing my experiences with others at the Michigan Green Industry Association Snow Expo this Thursday.

If you’re a contractor in Michigan, there’s still time to register at www.landscape.org. I hope to see you there!

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Seeing the Big Picture

We had an interesting discussion yesterday at church about creating vision and seeing the big picture, in the context of discovering God’s will for your life.

Our family attends Ward Evangelical Presbyterian Church in Northville, MI (www.wardchurch.org). We attend worship at 9:30am and then an adult education class at 11:00am. It was in this class where the discussion was held.

Our teacher, Pam Dodge, has been leading us through a video series by Andy Stanley on discovering God’s will. It’s been an outstanding series and has opened my eyes to many things.

Yesterday’s discussion centered on the “big picture” or a vision of the future in a particular area (career, marriage, family, spiritual growth, etc.).

While some of us create vision statements for our businesses, few of us doing any visionary thinking in other areas. We were challenged to do this.

In order to have a vision of the future, we need to take time to think; to ponder; to ask God to open our eyes.

As Andy Stanley points out, the more clear our vision is, the easier it becomes to make decisions. This makes perfect sense to me. I see this concept working in my client’s businesses. As they develop and implement strategic plans (which include creating a vision statement), they are able to eliminate many options, narrow their focus, and be much more efficient in their decision-making. It’s very logical.

So, it would make sense that this same concept would apply in areas other than business or career. It’s an interesting thought, isn’t it.

What do you think? I’d love to hear your thoughts on this topic!

Advisory Council

We’ve all heard the saying “Two heads are better than one.” We acknowledge the simple truth of it, that people make better decisions when they consult another person first. We know that our own decision-making is easily clouded by our emotions, selfish desires, and prejudices. We admit that we’re not capable of making optimal decisions by ourselves. We know we need help. However, this recognition is not enough. We need to do something about it.

Unfortunately, many of us fail to seek advice. We tell ourselves that we’re too busy or that it will cost too much. We convince ourselves that we’ll be just fine on our own. The reality is that we’re too prideful to open up to another person or our egos are too large for our own good. We rationalize our position and continue to procrastinate whenever we’re convicted to take action.

Once we are determined to seek out advisors, we need to do some soul-searching. We need to understand what types of advisors are needed. Seeking advisors requires more than finding willing participants. We should purposefully seek advisors with experience, objectivity, and expertise in areas we’re lacking.

Many business owners, executives, and other successful people surround themselves with a stable group of advisors- financial, legal, spiritual, health, nutrition, etc. They meet with these people as needed, depending on situations and circumstances. Executive coaches are often part of this group as well, providing advice, support, and accountability.

This group of advisors is not a peer group that meets on a regular basis. While peer groups serve a purpose, a personal advisory council is a collection of personal relationships with trusted advisors, with each advisor providing specific expertise in a critical area of need.

Developing a personal advisory council is an essential element of organizational success. When people are receiving good advice, they make better decisions. According to the Bible, people who seek out and listen to the counsel of their advisors are wise.

For lack of guidance a nation falls,
but many advisers make victory sure.
- Proverbs 11:14

The way of a fool seems right to him,
but a wise man listens to advice.
- Proverbs 12:15

Pride only breeds quarrels,
but wisdom is found in those who take advice.
- Proverbs 13:10

Plans fail for lack of counsel,
but with many advisers they succeed.
- Proverbs 15:22

Listen to advice and accept instruction,
and in the end you will be wise.
- Proverbs 19:20

A wise man has great power,
and a man of knowledge increases strength;
for waging war you need guidance,
and for victory many advisers.
- Proverbs 24:5-6

Perfume and incense bring joy to the heart,
and the pleasantness of one’s friend springs from his earnest counsel.
- Proverbs 27:9

What about you? Do you have an advisory council? Who’s on it? Do they realize they’re on it? How often do you meet with each council member? What steps do you need to take to shore up your advisory council?

P

Welcome

Welcome to all of you who recently heard me speak at the SIMA conference! I’m glad to found your way to my blog!

Unlike my company website, which is about the company, my blog is much more personal in nature. I write about things that are on my mind from the world of business, politics, religion, or whatever I’m interested in writing about.

Thanks for stopping by.

If you have comments, please don’t be shy. Post your comment or hit me with an email.

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The Government Option

In tonight’s address to the nation, President Obama stated that competition was a good thing. I agree. When there is true competition, the competitors strive to deliver the greatest value. If they fail, they’re out of business. If they succeed, they’re rewarded. This is what I consider competition. I like it and I support it.

He also said that the proposed Federal government’s health insurance program would compete with private health insurance plans in the open market. He said that this competition would create better outcomes for everyone. I disagree. Here’s the problem. Government has no risk of failure. If a government program is a loser, it doesn’t disappear. Instead, it gets more money thrown at it. I hate to be the one to explain this fact to the President, but this is not competition. This is simply a new government program that will displace private industry and degenerate into another giant cesspool of waste and inefficiency.

The waste and inefficiency of government programs is legendary. You  know this to be true. So do I. What makes anyone think that the government could ever compete head to head with the private sector? Please show me an example of a government program that competes with private industry in an open market. One example. From all of recorded history. Please. Let’s not drink the Koolaid, folks. I know it’s tempting. I know you’re thirsty. But let’s show some restraint.

There has to be a better way; a different solution. The problem here is that President Obama knows that he’s working on a short timetable. If he doesn’t ram this sucker down our throat now, regardless of how partisan or unsavory it tastes, he won’t get it done. For many, this will be the declaration of failure for his administration. So, he’s pushing, scheming, and twisting arms to sell a program that is so undefined, so unclear, and so complex that even he could not articulate what it was or was not in tonight’s sales pitch. It’s truly amazing.

I vote ’no’ on the government option. Sorry Mr. President. Please take a community college course in economics before you try to tell the American public that the government will compete with the private sector in an open market. I can hardly type the words without laughing at the nonsensical absurdity of the concept. And it was said with a straight face. Truly amazing.

Stay tuned for Part 3.

Business and the U.S. Health Care Debate

Like many of you, I have had plenty of varied experiences with the U.S. health care system. I grew up in the 1960’s in a family business. We had no health insurance. My parents either paid for our health care out of pocket or bartered for services. Life was much simpler back then. Costs for health care services were affordable. Providers would work with families who couldn’t pay the entire bill much like the corner grocery store would keep a tab for families in their neighborhood.

In the 1980’s I graduated from college and got married. My wife worked for a major state university. Thanks to the taxpayers in our state, we paid nothing for the best health insurance available. When my children were born, we paid less than $100 for a private room. That was the total charge.

In the 1990’s I worked for a publicly traded corporation while my wife stayed home to raise our children. Every year our health insurance plan changed. Every year our out-of-pocket premiums increased while our coverage was reduced due to the exponential increase in health insurance costs. I didn’t blame the company. I knew they had no choice but to make these tough decisions.

In 1993, my wife underwent brain surgery. Our health insurance company declined to cover a large portion of the tab. While reviewing the hospital bill, I was stunned to see that we had been charged for a master case of band-aids when we used one. We were charge hundreds of dollars for a foam pad that we could buy at the store for $20. The list of obscene charges went on and on. It was enough to make us sick. The system was out of control.

In the 2000’s I was a partner in a small business. Every year we had to re-evaluate our health insurance plan. Every year we had to choose between increasing our employee’s health insurance premiums, reducing coverage, or both. Health insurance costs continued to spiral out of control.

Today, my wife and I are self-employed. We pay for our own health insurance and also pay for much of our health care out of pocket.

I’m guessing that my experience is typical of many Americans. We’ve watched as the health insurance industry has picked our pockets over the years, robbing us of our wealth and creating a system of care that benefits the insurance company first, the provider second, and the user third.

So, as you can imagine, I have no sympathy for the U.S. health care insurance industry as the Obama administration proposes to establish a “government option” which everyone knows will lead to the eventual government takeover of the entire health system in the U.S.

I recently heard a report about a poll claiming that 84% of Americans are happy or very happy with their current health insurance and that the majority of those without health insurance don’t want it. I don’t believe that this poll accurately reflects the true feelings in America. I’d like to see how the questions were worded and who was actually polled.

Anyone who has had their health care insurance premiums jacked up while benefits were slashed certainly can’t be all that happy. Anyone who has lost their insurance certainly can’t be that happy. Anyone who was denied coverage can’t be that happy. I’m guessing this covers about 90% of everyone in America. I’m guessing if I took my own poll and asked my questions, I could come back to you and report that 84% of Americans are unhappy or very unhappy with the state of heath insurance in America.

Our health care system truly needs an overhaul. I agree with President Obama on this point. At the same time, there are parts of it that are the envy of the world. The key is to find a solution that maintains the better parts of our current system while fixing the parts that are broken. If we instead destroy what is good and fail to fix what is broken, we would have been better off to just leave it alone.

Stay tuned for part 2!

What You Don’t Know

There are certain things that I know. In fact, I’m proud to say that I know many things. For example, I know how to create, implement, and execute strategic plans for organizations. This is an example of what I know.

I also know that there are things I don’t know. I know that I don’t know how to build a hydrogen fuel cell. This is an example of what I know that I don’t know.

However, there are things that I don’t know I don’t know. I can’t give you examples because I don’t know about these things.

The interesting thing is that we’re all different. My set of experiences is different that everyone else’s. In fact, I may even know some things that you don’t know you don’t know.

We’ve all heard the phrases ‘two heads are better than one’ and ‘iron sharpens iron.’ This is because each person is limited by what they know and by what they know they don’t know. When two people work together, the base of knowledge and experience expands. In general, better outcomes will result.

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Committed to Marketing?

Do you find that it’s difficult to remain committed to marketing? Many business owners struggle in this area. I know that I do from time to time.

Here’s how it plays out in my world. When I’m really busy, I reduce my marketing. It’s a function of my time. I don’t have a huge staff. Marketing requires my time and I only have some much time. But, there’s more to it than just the time element.

When I have lots of work, I’m less motivated to commit time to marketing because I’m not hungry. On the contrary, I’m often too busy, concerned about meeting all of my client’s expectations. Why add more fuel to the fire when the fire is burning just fine? That’s the psychological element.

When I combine the time element and the psychological element and I can convince myself that my time and money is not well spent on marketing during these times of peak activity. However, this is not clear thinking. Let me explain.

The effects of marketing usually are delayed. Marketing activities today will not likely produce sales tomorrow. Instead, today’s marketing activities are measured over the next weeks and months. Because of this, if I only market my services when I’m slow, I’m actually creating a feast or famine situation, exactly what I want to avoid. If I continue to invest in marketing even when I’m busy, the results will help fill in the slow times.

The other reality of marketing is that it is much more effective when it’s consistent. Marketing that starts and stops is less effective. Developing trust and a solid brand image requires ongoing investment and support. If I were to stop marketing during busy times, I’d have to start over to some degree. This is not smart or effective.

The optimal solution is to remain committed to marketing regardless of how slow or busy we are. We should make these commitments when we craft our strategic and marketing plans. 

My fears that I’m going to be buried in an avalanche of work if I continue to market when I’m already very busy are unfounded. The result of higher demand for my services would not that I would crumble. The result would be that I would be choosier about what work I accept. I may even raise my prices or find ways to be more productive. I may hire people to help me.  What a terrible position to be in!

What about you? Are you committed to marketing? Or do you only think about marketing when business slow? Are you creating the feast or famine world that you actually wish to avoid? More importantly, what are you going to do about?

If you need help in this area, call us. We can help. We are part of the team. What is it costing you not to have us on your team? 

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