| Every week I take a few minutes to reflect on topics from coaching calls. That reflecting time usually turns into Thursday Thoughts. This past weekend I had the opportunity to spend 10 hours a day for two days in a small group with a billionaire. I thought my bullet pointed notes from those two days would add more value than my reflecting time. Please enjoy the notes below from my two days with Keith Cunningham. (Rich Dad – from the book Rich Dad Poor Dad.) Topic: Plan Or Get Slaughtered. Enjoy We make the fatal mistake of executing an idea rather than a plan. A description of a destination is not a substitute for a roadmap. The reason most of our ideas fail is because we do not have a plan. Are you making plans to fix a symptom or self the underlying problem. For example: If you step on the scale and you’re over weight it isn’t because you don’t have a peloton, a gym membership, or a jump rope. If you want to have dessert that’s an idea. The recipe is the plan. If you can’t description your plan you have no idea where you’re going. There are some inherent problems with goal setting. Stop goal setting and start planning. – Goals are disconnected from reality – Ignores your calendar – They usually address a symptom not a problem. – There is no threshold of effort. – They promote massive action rather than consistent action. 95% of us will die of a chronic problem not an emergency. This means we will die from a lack of consistency not from a sudden event. There are two different types of time. Horizontal time and vertical time. Emergencies take up a massive amount of vertical time. We’re usually very good in emergencies and crisis. Many of us struggle with horizontal time. That’s where the chronic issues are. This is what will cause most of us and our businesses to die. Not doing the little things for 30 minutes each day consistently will kill you and your business. If you throw vertical time at a horizontal problem you only get hurt. – For example: If you step on the scale and realize you’re 20lbs over weight and decide to work out 12 hours per day for the next 7 days you aren’t going to fix the problem. You’re probably going to be sore and make the problem worse. Conversely if you took 30 minutes a day for the next 6 month the problem goes away. Don’t mistake crisis for chronic. Are you addicted to massive action? Many of us are. When you’re making a plan ignoring the environment is a mistake. When you’re making a plan ignoring reality is a mistake. When building a plan there is what “is” and what “ought to be” the gap between the two is usually the symptom. When building a plan you must know what IS. The obstacle keeping you from being where you “ought” to be is what the leader must chip away at consistently. That’s the plan. In other words what is in the way, is the way. Using a car as an example: Many business owners design their “car,” create the “car,” then like an idiot decide they’re the right person to drive the “car.” Out of everyone on the planet you nominate yourself as the absolute best person to run your company. Many of you have designed a Ferrari. They’re designed to go fast in the best conditions with no obstacles. As long as the environment is perfect you’re moving along. One little pothole can derail your Ferrari and before you know it you’re in a corn field. In todays environment a Jeep may be more practical. We’re seeing more obstacles on the horizon than ever in history. If you attempt to drive your Ferrari across a corn field you’re going to break it. A recent poll shows 30% of all US employees are actively looking for another job and an additional 20% says they’re thinking about it. 50% of all employees are either looking or thinking about looking for a new job. The number 1 reason people are stating as the reason is lack of engagement. What should you do with this information? The people that say what doesn’t kill you makes you stronger are stupid people. You may want to reserve some cash because if we go into another lockdown the government may not be willing (or able) to be your sugar daddy again. NOT ALL PROGRESS IS MEASURED BY GROUND GAINED. SOMETIMES PROGRESS IS MEASURED BY LOSSES AVOIDED. Winter is coming. Are you prepared. What is the season we’re in? Winter in Fiji is different than St Petersburg. Knowing the environment will allow you to prepare for whatever needs to be prepared for. If your activities next year are the same and the environment is the same you will get the same results. If the activities are the same and the environment is different you may go backwards. Knowing the environment to prepare your plan is key. What impact will the labor shortages have on our businesses? What customers have a high margin and low cost? How do I insulate and protect them. (Real estate agents…..database) The value of planning is… – it allows you to see how things are interconnected – gives you clarity on the critical drivers required to deliver results – Gives us the ability to compare actual results vs what we thought would happen so we can course correct. There is very little value in a plan but there is extreme value in planning. Emergencies hijack your calendar. We spend so much time putting out fires we can’t focus on our plan. Crisis sabotages progress. Crisis’ creates drama. Business owners are usually drama queens and thrive in crisis. Questions: – Is the growth I want available in this current environment – Is there a need for me to adjust my expectations – How do I build a plan congruent with the environment I’m in Feedback tells me what I did wrong. Coaching tells me what I can do better. Nothing can change until the unsaid is said. Ask yourself, as it relates to growth what worked last year? Whatever your answer is worked because you did the right thing in the right environment. Where did we miss delivering the growth we originally planned? Don’t repeat those mistakes. The results we are not getting are directly tied to the training we are not doing. Inconsistent education is the mother of mediocrity. You can’t hire someone until you have their training program already in place. RISK Paradigm is a problem solving model. What may seem impossible with the old paradigm may be easy with a new one. When a paradigm shifts everyone goes back to zero. (Playing field is equal) What is currently impossible that a change in paradigm would make easy? Risk doesn’t seize to exist because you ignore it. The truth is the same. Questions everyone should ask themselves: – What am I missing? – Where am I wrong? – What do I need to learn? – Why aren’t the people who need my services calling me? Risk reduction HAS TO BE INCLUDED IN YOUR PLAN. A house that can withstand a hurricane and a house that can’t are indistinguishable until after the hurricane. There is no reason to go outside and yell at the hurricane. That’s exactly like the current environment. You can’t control it but you can consider it. Are you executing an idea or a plan? The CEO cannot delegate the priorities of an organization. How do I organize my calendar so I can make an impact on my priorities? Humans aren’t designed to retain information we’re designed to create. Write stuff down. PAY ATTENTION (soapbox statement) The current environment is different than anything he’s ever seen. Business owners are matching builders. If you don’t know the problem you’ll build a machine to overcome the wrong obstacle. In this environment something different needs to happen. You’re going to have to chance your “machine” or your execution. Probably both. Is your business plan built for crisis or chronic? Are you spending time fixing a symptom or problem? The value of your enterprise includes risk and growth. In this environment labor is a big concern. Plan for turnover….. – What is your onboarding plan? – How do you get someone up to speed asap? Corrections are essential to mastery. You can have anything you want you just can’t have everything you want. Plans create competing priorities and as a CEO you have to decide what priority is best situated for the environment. – Retaining customers may compete with raising prices – Reducing debt may compete with building reserves Keith again emphasized the unique situation with supply chain and labor. He’s concerned about raising interest rates and inflation. There is a price for everything in life. – A price for being fat and a price for fit – Price for rich and a price for poor. Are you willing to pay the price? What price are you paying? Leadership leads to decisions which leads to activities which translates to results your accountant puts on an income statement. There are two reasons businesses spend money. – Get new customers – Retain existing customers Anytime you say I want $X in revenue you’re irresponsible if you don’t immediately follow that sentence with and it’s going to cost me $Y to get it. Lack of training is the primary saboteur of growth. A true growth funnel looks like this.Keep existing customers > Increase referrals and repeats > add more value and certainty of success > Increase conversion > Increase transaction value > Increase frequency > drive new leads Many of you are leading with driving leads. A PLAN ISN’T TO GROW THE BUSINESS. A PLAN IS TO MAKE A BUSINESS MORE VALUABLE. Value = Earnings X a multiple. That multiple is determined by growth and risk. The CEO is in charge of earnings. The BOD is in charge of the multiple. Growing a business starts with culture. When facts meet assumptions or opinions facts win. Build your plan on facts. When you do this your plan will allow you to have a picnic in the rain. Keith’s 5 beliefs about business – There is no such thing as a natural business owner. You must work out the muscle. – Trail and error is the hardest most expensive way to learn – Practice doesn’t make perfect. It makes permanent – The person with the fewest blind spots wins – People with the best lives make the best choices. |
Topic: Plan Or Get Slaughtered
