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Business Value Indexing and Analysis

Value Pillars and Drivers

Maximizing Business ValueEvery business has different value streams that add to business value. These are composed of intangible value pillars and drivers that are governed by principles and laws of business value. After careful business value analysis, the stream and pillars/drivers begin to emerge from within. What are your company’s value pillars and drivers? How do they create business value?

The value pillars are evolving in your business right now. It may be a sales pitch, leadership, patent, product feature, integrity, perseverance, determination, innovation, respect, passion and fair-mindedness or other. It takes a trained expert, to look from the outside-in to begin to see/understand them, so you could capitalize on them. Contact us for an online complimentary review to begin to identify what creates your company’s business value.

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Business Value Indexing and Analysis

Business Value Indexing

Business Value Indexing

“An agile company for the changing world demands data information based on a solid platform.” Adobe

What is the big picture? Have you ever wondered how the business is doing? Is it your own or have you invested time and money into it? Yet, you know the business is unique and hard to measure. Traditional indexing usually compares numbers to other businesses that are in the same industry but not similar. As we are customizing the business value variables to the business we first provide a unique business value index from historical data. The software uses proprietary formulas to determine this unique number. This index from past index averages gives a holistic view of the health of a company that relates to principles and laws of business value, not another business or a small department or division. We look at business value of the company.

“Organizations must focus on promoting a culture of agility across people, processes, and technology, to respond in the moment….” Adobe

Future reports of the business value index could give the impact of an initiative or program on the company’s value. Business Value is what matters most, not some comparison to what another business is doing. We all know there could be other intangibles that could factor into numbers like employee dissatisfaction and or unforeseen incidents, but we do take these into consideration until when we view deeper into the value stream along with value pillars and drivers.  This proprietary way gives you efficiency and effectiveness of people, process, information, and technology based on principles and laws of business value.

How do you start indexing with your business? We first set key indicators of crucial areas to the company’s situation. We then provide a report with a  Business Value Index (Includes business value, based on EBITADA) that forms a reference point. This point tells us how close a business is running with the principles and laws of business value. As time goes on your company’s score will be more accurate and useful in day-to-day operations, strategic planning, projections, and eventually the exit. If you would like we could develop other key variables of your business or initiatives for risk evaluation.

Each key indicator helps you decide a question between power and liberty with your business model.

Here are a few of the benefits of the Business Value Index.

* Helps keep a pulse on the company from a broad view

*A way to start Optimizing a company’s  business value

* Focuses on the value drivers of the company, not problems

* Continuous improvement mentality

There is no charge for setting up the Business Value Index for your specific situation. Start today and contact us for an online complimentary review of your situation.

 

Categories
Business Value Indexing and Analysis

5 Business Value Myths

5 Business Value Myths

  1. The value of your business is what you think it is.
  2. Employees are going to stay in the business you sell or buy.
  3. A Franchise is a better buy than an established business or E-Distributorship.
  4. Someone will tell you the “true” value of your business.
  5. You will know why they are really selling the business.

The principles or laws in the book are either working for or against your company’s business value, right now. Find the untapped value within your business with an online complimentary review and report with an Ambassador of Business equity. Contact us today!

Categories
Business Value Indexing and Analysis

Retirement Income?

How Much do you Need to Retire?

Not too many Business Owners will use this equation before it is too late; business value – business debt = business equity + personal equity = retirement income. What is the gap between what you need for retirement and what you have in business equity?

Maximizing Business ValueOne small change in business value in the above equation could make a Business Owner $100,000s for retirement. What is it? How much do you need to retire comfortably? We discuss these questions and more in an online complimentary review of your specific situation. Set a time with a Senior Business Value Analyst at this link.

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Business Value Indexing and Analysis

An Ideal Organization

Maximizing Business Value

What is the Ideal Business Organization?

From the picture above you could visualize how a business must have the ideal business organization, at the sale for maximum value. Just like a business, you cannot sell a car with the owner driving it. You might not be thinking about selling now but every Business Owner either shuts the doors or exits. How close are you to an absentee run business?

The owner of a business usually controls most of what is going on at first to her or his advantage. But as time goes on and sales come in things change. She or he cannot do it alone and the team starts to grow. If she or he is not leaving it for chance, since a business sells, on average, every 3 to 5 years (a good one) then employees are empowered, teams are formed, trade secrets are transparent and the big picture of building business value is on the radar. That is why moving toward the ideal business organization starts now.

As the team grows money(compensation) begins to be dispersed while roles and responsibilities change. Whether you are in a partnership, family business, or proprietorship, finding the “right” person for team players while growing could be one of the most difficult tasks to encounter as an “Owner”. If you want an absentee-run business, then moving towards an “ideal business” model is on the top of the list at that time. When the Owner starts moving towards working on the business and not in it, then the business value goes up.

During this overall reorg, a Business Owner could lose value or make it depending on compensation, roles, and responsibilities. This is one of the most difficult organizational structure changes a Business Owner(s) or HR manager participates in, yet is rarely looked at through the eyes of business value. Read the example in the book “14 Immutable Laws of Business Value” of how the business value was increased by $100,000s with one move. To get more insight into how making the “right” organizational move could bring move business value while preparing for the future exit ask one of our Business Value Experts.

CEO Analyzer along with proprietary process has been designed to assist a Business Owner or HR Manager get the highest business value while succession planning or exiting. Without the software suite, it would be virtually impossible to fine-tune the culture, employees, roles, responsibilities, and processes for building value. When are you exiting? Sometimes we do not know. Start getting prepared today and set a time for a complimentary review of your specific situation. Start evolving your company’s culture and organization closer to an ideal organizational structure” utilizing an Advisor’s guidance. Connect with a Senior Advisor on the contact page for a complimentary review of your situation.

A company’s value is less with the Owner working inside the business. From, “14 Immutable Laws of Business Value“, Rule 12, Pg. 26..

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Business Value Indexing and Analysis

What Makes Your Business Tik?

What makes your Business Tik?

Is it you? Are you the Tik? Or is it the business model, culture, style, employees, product features, approach, or what? Do you really know? Why? Did you know a business sells on an average of 3 to 5 years?  Like a home sells in 7.5 years or a car about 2.5 years. Understanding the “why” for building comes before the howto.

Whether you like it or not a potential buyer is probably looking at your business now. Yes, to buy. They know all about your business and you. And yes they want something at a rock bottom price. So, how are you going to get back what you have been putting into this business of yours?

What is your business value now and what could it be in 6 months or a year. Do you have a business value strategy? How does retirement fit in or are you a serial entrepreneur? These critical areas of your business are covered in an online review of your company’s business value. Get it ticking for you so you get bought at the right price. Contact us for an online complimentary review of your company’s business value to begin getting at the Tok of your business.

Categories
Business Value Indexing and Analysis

Leadership

This is an article about leadership that could relate to a value pillar or driver from Dialouge Works on leadership. How would your company find and then evolve an intangible value pillar or driver for more value?

Maximizng Business Value

12 Tips for Supercharging Your Leadership Credibility

Some of the best leaders that I ever had were not my direct managers. One such individual was an Executive VP and Chief Legal counsel at the first company I worked for. Because I was single at the time and didn’t really know anyone, I frequently stayed late in the evenings to catch up on my work. Noticing I was often there after hours, this executive would frequently visit my office, pull up a chair, ask me questions, and offer advice for dealing with challenging situations. Late one evening before I left the company, he visited my office to wish me well and offer encouragement in my next assignment.

These types of individuals seem to take an interest in those around them. They have a knack for connecting with people no matter who they are. People end up gravitating to them and seek them out whenever they have concerns and challenges. They have the ability to make everyone feel important and valued. I have been lucky over the years to have known many of these types of individuals.

Here are 12 tips for supercharging your leadership and improving your relationships with your people.

1. Be a super human, not super-human. Being kind, considerate, and polite to people will help build respect and improve your relationships. People who are cold, terse, sarcastic, cynical, aloof, and demeaning to others do not inspire engagement or trust in people. Likewise, always having the last word on every idea, solution, or plan does not inspire the participation of others. You may think you are too busy to notice other people, but being oblivious to others will undermine your credibility as a person and a leader.

2. Get to know people. I worked for a major aerospace company as a consultant for a number of years. I once had the opportunity to run into the CEO of the company. He introduced himself and asked who I was and what I did for the company. From then on, whenever he saw me he always called me by name and asked how I was doing. Over time, I noticed he did this with everyone. He spoke to each individual by name and he always asked them how they were doing. Everyone felt that he had their best interest at heart.

3. Identify individuals’ strengths. Take the time to identify and recognize individuals’ strengths including those that may go beyond their job. Look for opportunities to help people use their strengths and talents in a way that brings out the best in them and their contributions. This will reduce turnover and create a sense of satisfaction in the work that people are doing.

4. Ask for and give feedback. People like to know how they are doing. Giving them feedback allows people to make immediate adjustments and meet your expectations. Asking for feedback from your people signals that you are serious about your leadership and making changes that will help you improve. This requires humility and a desire to learn from those you lead. This also allows you to give people more of what they want and eliminate any unwanted behaviors that may be impacting your effectiveness.

5. Ask people for their ideas. The CEO I mentioned earlier often asked, “What one thing have you learned about the company that you think I should know?” If you ask a person for their ideas or if you ask them to help you solve a problem, you are not only sending the message that you value their ideas and experience, but you are also creating a learning opportunity to hear something that you may need to know.

6. Listen to what people say. If you ask questions, it’s important to truly listen to the responses or you will undermine your credibility as a leader. Ask questions that are deliberately framed to help you gain insight on a particular topic. Notice what people say in response, and equally as important, what they are not saying.  After identifying what’s going unsaid, formulate and ask additional questions to help you understand what matters most to them. For example you might ask, “How respectful are people in our department?” Suppose the person says, “It could be better.” Notice that the person didn’t address what disrespectful behaviors were occurring. You might follow with the question, “How are people being disrespectful to one another?”

7. Communicate, communicate, communicate. Connections are established by communicating with people. Receiving and providing feedback, establishing expectations, celebrating successes, identifying concerns or fears, making process improvements, and fostering a culture of candor and openness is all done through communication. You can greatly enhance the engagement of your team by being thoughtful and deliberate in your messaging, rather than letting people try and figure it out on their own.

8. Recognize people for their accomplishments. This requires that you catch people doing the right things, otherwise you will have nothing to say. Observing others’ performance or behavior and then saying something about it will help people recognize that you are appreciative of their efforts while establishing the value you place on their contributions. I once had an employee tell me that after working for a certain telecommunications company for 19 years, not once did anyone ever say, “Thank you.” Hopefully this is not the norm at your company. Recognizing and acknowledging people’s contributions makes them feel valued and will motivate them to continue to provide their best efforts.

9. Speak victory into people. After providing constructive feedback, we sometimes forget to speak victory or to encourage others to continue in their efforts. Saying something like, “I know that you can do this. Don’t give up. Just keep trying and learning and making adjustments. You can achieve the results you want.” Encouraging words from a leader when a person doubts themselves or their abilities will make a huge difference to people. It gives them hope and confidence to continue along the course they have chosen.

10. Allow autonomy. Once you have given clear directions, allow people to do their work. If they can’t complete the task assigned in the required way, perhaps they need more training before they can measure up to the appropriate standards. Setting clear expectations and providing feedback will allow the person to learn and take responsibility for their results. Micromanaging people sends the message that you don’t trust them and their abilities. After a while, people will get discouraged and give up. Give people what they need to be successful then let them do their job.

11. Be visible and available. Set appropriate times when people can ask for your assistance or instruction. Being an absentee leader may hinder your results if people cannot get the direction or information they need to proceed when challenges arise.

12. Be supportive. Frequently ask people what they need in order to complete their projects on time. Consider asking them about any additional resources, manpower, time, money, equipment, or training they may need. Check in with your people regularly and offer your support as you ask for regular updates about their progress. On the occasion that things don’t turn out as planned, stand behind your people. One of the worst things you can do is to throw people under the bus to save your reputation. There is nothing that will erode trust and devalue your leadership faster.

Cultivating these essential leadership behaviors will not only improve your results, but connect you with your people and inspire them now and for the rest of their lives. They will remember you and what they were able to accomplish under your guidance. Don’t we all want that kind of legacy?

Need more tips on leadership engagement? Contact us.