9 Smart Money Ideas to Get Your Business Off to a Great Start in 2018

From consolidating debt to putting a succession plan in place, here are nine ways you can ensure your business is well-positioned for 2018.

Smart companies realize three things:

Share
  • Email
  • Compass Payroll

    No. 1: The importance of making their balance sheets healthy.

    No. 2: How to access the extremely low cost of available capital.

    Pre-Check

    No. 3: Recognizing the demand in our economy is rising at a healthy 3% growth. 

    All three of these realizations will help your company to maintain or expand market share.  

    Now is a good time to review, correct and forecast your financial strategies to better leverage your firm for growth. This year-end review and forecast is important, due in part, to the changes underway on Capitol Hill and new federal policies on finance and regulations. The federal changes will have impact on most all businesses, no matter the size.

    Here are nine ideas that could help your 2018 get off to a roaring start.

    Idea No. 1: Taxes. The Big Elephant in the room. Contact your accounting firm to ensure you are taking full advantage of all your options to reduce taxes based on the new federal tax laws currently underway in Congress.  This also applies to your personal taxes.

    Idea No. 2: Investments. For most, this has been a robust year in the investment arena.  Review with your investment advisor your yearend picture to determine if there is a need to make any changes to better reflect your risk in the market on both the company and personal investment side. The deadline for your investment changes is Dec. 31.

    Idea No. 3: Insurance. Look over all company and personal insurance policies to ensure your assets are fully covered. These policies could include:

    • general liability insurance
    • professional liability insurance
    • business owner’s policy
    • directors and officers insurance
    • data breach
    •  property insurance
    • commercial auto insurance
    • worker’s compensation
    • homeowner’s insurance
    • renter’s insurance
    • life insurance
    • personal automobile insurance.

    Idea No. 4: Debt consolidation. Interest rates have been at historically low rates. Look at all outstanding loans, consider consolidating outstanding notes for a better rate. Credit cards continue to offer great rates for as low as 0% until 2019 when you consolidate debt from other credit card companies. Make sure you understand the fine print. Analysts forecast the Fed rate will increase before year end, and again slightly in the new year, however, will remain low in 2018, following retiring Janet Yellen’s past performance.

    Idea No. 5: New capital acquisition. Growing companies require more working capital for operations, inventory and equipment.  It takes money to make money. While conventional banks have kept interest rates attractively low, overall 12-month business loan growth is at the lowest since 2013. But they are still lending. Consider reviewing alternative financial options including interviewing potential private equity or venture capital partners, joint ventures/alliances with compatible companies that compliments your business strategy, large corporate sponsorship or grant funding,  public/private government sponsored funding. The beauty of preparing your 2018 business plan and forecast, is that you will be able to strategically see where and when you need funding. When you do sit down to negotiate new financing, most capital sources will ask to review many of the items listed here. Know where your realistic capital options are, including the requirements to secure the capital, before you need it.

    Idea No. 6: Leases. Capital spending on equipment leasing in the first three quarters of this year has risen at 7.3% annual rate, fastest in the past three years. Instead of outright purchasing equipment—whether a $5,000 video-conference system or a $500,000 injection molding machine—seriously consider leasing rather than tying up this capital that could be better used elsewhere. Additional leasing benefits include $1 buyouts at the end of the lease and the ability to upgrade equipment during the term of the lease to take advantage of newer technology platforms.  The trend today is for  larger equipment to have  built-in computer and artificial intelligence.

    Idea No. 7: Owner draws and distributions. Review with your CPA how your firm is paying out draws and/or distributions and how this impacts your overall tax picture.  The difference between a draw and a distribution is significant for tax reporting purposes. A sole proprietor or single-member LLC can draw money out of the business—this is called a draw. It is an accounting transaction, and it doesn't show up on the owner's tax return. A distribution or distributive share, on the other hand, must be recorded (using Schedule K-1) and it shows up on the owner's tax return. Further, depending on your tax bracket and forecasted 2018 compensation, determine if it would be better to take money out in 2017 or 2018. 

    Idea No. 8: Succession plan. Discuss and review any needed business succession planning updates. During the year were there retirement events, disability or death of an owner or other foreseeable events affecting the company? Review age of the owner(s) and family stage, business stage, size of the business, direction of the business and future leadership. Ensure that succession viability, retirement exit strategy, transition strategy in place.  In the event of death or disability of an owner, take into consideration tax planning, family law considerations, shareholder’s agreements and determining the selection a successor and future management to liquidation of assets or sale of business.

    Idea No. 9: Estate plan. Review and update your will to reflect current situation. Consider a trust if you have property and you don’t wish to have your survivors to go through the sometimes long and arduous task of going thru probate court.  Review and update health care directives, financial powers of attorney, beneficiary forms, protect your children’s property, estate taxes, funeral arrangements and expenses. Store your documents with your attorney-in-fact and/or your executor, the person you choose in your will to administer your property after you die. You will sleep better knowing your wishes are in place.

    Marsha L. Powers, a finance and strategic development professional, author, entrepreneur and investor is the founder of Powers Advisors and Shale Capital Resources. She has been a contributing writer on Finance for Crain’s Cleveland Business for nine years. Her management consulting areas of expertise includes finance – ranging from senior debt, government finance programs to private equity, market strategy, operations, marketing communications and economic development.  She’s a recognized award-winning leader with proven strategic direction and leadership to over 1500 companies, from early stage to Fortune 50 companies. You can reach Marsha at (216)965-3633, marsha@powersadvisors.com and www.powersadvisors.com to learn more about how she can help your company succeed.

    Grasshopper
    Next up: Active Shooter Planning: 9 Things You Must Include in Your Emergency Action Plan

    Active Shooter Planning: 9 Things You Must Include in Your Emergency Action Plan

    It’s everyone’s worst nightmare and something we never expect will actually happen in our own places of business. But understanding the warning signs and having an effective plan in place should an emergency like this arise, can help reduce fears and prepare your workforce as much as possible.

    Every business, no matter the size or type, is a potential target for an active shooter. It can happen anywhere including malls, businesses, movie theaters, schools and places of worship. As a business owner or manager, you should have a thorough understanding of the warning signs, preparations that need to be taken, and a plan for actions and responses in the event you are ever confronted by an active shooter.

    Share
  • Email
  • Compass Payroll

    The FBI conducted a study of active shooter incidents that occurred from the years 2000-2013. In order for the incident to be classified as an active shooter incident, there had to be four or more deaths or people who were injured from that incident. Within the13-year study, an average of 11.4 incidents occurred annually. During the first seven years of the study, there was an average of 6.4 incidents and it increased to an average of 16.4 over the last seven years of the study.

    According to the FBI, 2014 and 2015 each saw 20 active shooter incidents. That’s more than any two-year average in the past 16 years, and nearly six times as many as the period between 2000 and 2001. Seventy percent of incidents occurred in either a commerce/business or educational environment. And 60% of these incidents ended prior to police arriving. That means you must know what to do in the event you are confronted by an active shooter incident at your business.

    Pre-Check

    Be knowledgeable and prepared

    Understanding an active shooter is a good starting point. An active shooter is an individual actively engaged in killing or attempting to kill people in a confined and populated area. Often, they use fir­­­­earms and there may be no pattern or method to their selection of victims. 

    An active shooter looks for ease of movement that allows them to just walk into a business. This means a retail store, movie theater or any other business that has open public access is a prime target for them. The reason for this is that they can enter the building without having to go through security checkpoints. So, while your business may need to maintain open access there are actions you can take to prevent shootings and to know how to properly respond in the event of a shooting.

    It is also important to understand that an active shooter can be either an employee or someone off the street. While you have no influence on a stranger, it is easier to deter an employee shooter because they have contact with co-workers and managers on a daily basis. There is a personal relationship that may work in your favor. Keep in mind that active shooters may be motivated by external circumstances such as marital issues, custody issues or financial issues, as well as by workplace issues.

    Shooting events are not spontaneous…they require planning. They are unpredictable and evolve quickly, often taking only ten to 15 minutes and usually before law enforcement arrives. The shooter plans knowing the layout of the business and determining its security and access features. They then select their target by deciding on a favorable feature or convenience that makes it easier for them.

    Planning is crucial for handling an active shooter situation

    One of the first actions you should take is to assemble a planning team that works with your HR department. If you are too small of a business to have an HR department, you still need to develop a plan. The role of this team is to teach employees how to identify potentially dangerous behavior and to develop a method to report any behavior issues.

    To best prepare your staff for an active shooter situation, create an Emergency Action Plan (EAP), and conduct regular training exercises. Create the EAP with input from your human resources department, your training department (if one exists), owners / operators/ managers, and always include local law enforcement and/or emergency responders. 

    This is where your preparedness comes into play. Determine the best way to protect your own life and everyone around you. People will follow the lead of employees and managers who are trained for the situation. Your EAP should include the following nine things:

    Safety tip No. 1: A preferred method for reporting emergencies.

    Safety tip No. 2: An evacuation policy and procedure that includes emergency escape procedures and route assignments (i.e., floor plans, safe areas). Leave personal items behind. Keep your hands visible. Do not move anyone who is wounded. Follow police instructions.

    Safety Tip No. 3: A crisis plan including contact information for, and responsibilities of, individuals to be contacted under the EAP, as well as designated spokespeople who have been trained to talk to the media or others.

    Safety tip No. 4: Information concerning local area hospitals (i.e., name, telephone number and distance from your location).

    Safety tip No. 5: An emergency notification system to alert various parties of an emergency including: Individuals at remote locations within premises, law enforcement and area hospitals.

    Safety tip No. 6: Mock active shooter training exercises and information on how to recognize and react to the sound of gunshots. Training exercises are the most effective way to train your staff to properly respond to an active shooter situation.

    Safety tip No. 7: Information on how and where to hide out. Lock doors and block with heavy furniture if possible. Hide under furniture or in closets. Stay quiet and as calm as possible.

    Safety tip No. 8: At least two evacuation routes that you post on the premises.

    Safety tip No. 9: A plan to stay aware of indications of workplace violence and take immediate actions in an attempt to avert any workplace violence situations.

    Taking these steps and preparing for workplace violence and active shooters will help keep everyone safe in the event of a confrontation.


    President, SACS Consulting & Investigative Services, Speaker, Trainer, Corporate Security Expert Timothy A. Dimoff, CPP, president of SACS Consulting & Investigative Services, Inc., is a speaker, trainer and author and a leading authority in high-risk workplace and human resource security and crime issues. He is a Certified Protection Professional; a certified legal expert in corporate security procedures and training; a member of the Ohio and International Narcotic Associations; the Ohio and National Societies for Human Resource Managers; and the American Society for Industrial Security. He holds a B.S. in Sociology, with an emphasis in criminology, from Dennison University. Contact him at info@sacsconsulting.com

    Grasshopper
    Next up: Are You a Strategically Valuable CIO

    Are You a Strategically Valuable CIO

    Information technology has the potential to transform an enterprise and drive performance to unseen levels. But it’s not just about deploying new technologies or keeping servers running or ensuring everyone’s email is working. 

    Information technology has the potential to transform an enterprise and drive performance to unseen levels. But it’s not just about deploying new technologies or keeping servers running or ensuring everyone’s email is working. 

    Share
  • Email
  • Compass Payroll

    To really drive the enterprise, IT must be business partner and be integrated within business operations. While that’s easy to say and many companies purport to do so, many are not successful. 

    Matt LoPiccolo, Swagelok CIO, shares his experiences with achieving incredible synergies between information technology services, operations and strategies with enterprise planning. Ensuring the strategic value of IT to Swagelok has helped the company achieve incredible growth results and helped position it as a market leader in multiple areas. 

    Listen here.

    Pre-Check
    Next up: Are You an Effective Leader? 5 Hard Questions to Ask Yourself

    Are You an Effective Leader? 5 Hard Questions to Ask Yourself

    Read on below for the first in a series of articles examining what you need to do to develop your leadership influence.

    “Leadership is Influence—nothing more, nothing less.”—John C. Maxwell, international leadership guru. 

    Share
  • Email
  • Compass Payroll

    So, you are in a leadership role and you have authority to make things happen. You have people reporting to you and looking for direction. This is positional leadership and is the least impactful level of leadership. To be successful as a leader and have people follow you because they believe in you, you need to grow your level of influence.  There are nine key elements important in developing influence that are listed below, we will dive into two of them here and more in the following series.

    Pre-Check

    Let’s begin by examining what exactly comprises a person of influence. A person of influence:

    • Maintains integrity with people.
    • Nurtures other people
    • Has faith in people.
    • Understands people.
    • Enlarges people.
    • Navigates for other people.
    • Connects with people.
    • Empowers people.
    • Reproduces other influencers.

    *Source: Becoming a Person of Influence, John C. Maxwell

    Genuine integrity is not for sale—and having personal integrity as a leader means that your character is one that is honest, can be trusted and carries this into everything they do at home and in the workplace.  There are multiple ways to influence people but those with strong character have long lasting influence.   

    What’s your influencing style?

    How do you influence others?  Which of these methods (listed from worst to best) do you practice most often?

    1. Force—there is no choice in the decision.
    2. Intimidation—“My way or the highway.”
    3. Manipulation—there is a winner and a loser.
    4. Positional—we follow because we have to.
    5. Exchange—we both win something.
    6. Persuasion—we follow because we want to.
    7. Respect—we follow because of the request and respect for the influencer.

    Answer these hard questions

    How do you measure your integrity?  Here are five questions to ask yourself:

    • How well do I treat people from whom I can gain nothing?
    • Am I transparent with others?
    • Do I quickly admit wrongdoing without being pressed to do so?
    • Do I put other people ahead of my personal agenda?
    • Do I make difficult decisions, even when they have a personal cost attached to them?

    Take time to answer these questions. If character development is a need for you, it is better to know this now and begin working on this. If the answer you give isn’t what you wish was true, then work on those areas and get clear about what you want those answers to be in the future.

    Abraham Lincoln once stated, “When I lay down the reins of this administration, I want to have one friend left. And that friend is inside myself.”  He was a man of principle and integrity was his best friend. 

    Why should you focus on integrity?  It allows others to trust you—and without trust you have nothing.

    Jill Windelspecht of Talent Specialists Consulting is an executive organizational consultant, coach, trainer and keynote speaker.  Leveraging neuroscience to focus on People…Science….Purpose. Contact her at jillwindel@talentspecialists.net.


    Grasshopper
    Next up: Be the Best CEO You Can Be

    Be the Best CEO You Can Be

    You are the Majority Owner, so you are the CEO. Right? Not necessarily. There are generally three paths to majority ownership of a company. You started it. You acquired it from an unrelated third party. You bought or inherited it from a related party.

    You are the Majority Owner, so you are the CEO. Right? Not necessarily. There are generally three paths to majority ownership of a company. You started it. You acquired it from an unrelated third party. You bought or inherited it from a related party.

    Share
  • Email
  • Compass Payroll

    Each path has some common similarities and differences. The goal is to be an effective CEO and it is worth exploring what each of the paths take. We will begin by examining what it takes to be an effective start up CEO. 

    Path 1: You Started the Company 

    Pre-Check

    If you started the company, chances are you’re automatically the CEO because startups rarely begin with a fully developed management team. Many startups are the activation of a dream or invention by highly motivated people who may or may not have sufficiently developed skills to build, guide and direct the growth of their firms.

    Some inventors fall into this category. The story of  The Polaroid Land Camera Company illustrates the problems of the inventor as the CEO, Dr. Ed Land, the founder, was a pure inventor. He lacked most of the skills and mindset to become the effective CEO needed to drive his company. His investors eventually realized Dr. Land would never be the person to drive the company to its zenith, and they relegated him to his laboratory, trotting him out once a year to show off his latest creative products. If he had remained at the helm, it would never have been the success it was in the mid-20th century.

    Path 2: You Inherited or Bought the Company

    If the company you have started isn't your first rodeo (i.e., you have been the majority owner/CEO of another firm or firms before), you have a leg up on some of the things that an effective CEO needs to do. Unfortunately, most CEOs get to some semblance of effectiveness through trial and error, with a lot of emphasis on the error part of the equation. There is no handbook with checklists available to prescribe the exact ways to get to effectiveness, but experiences as part of a key management team help in making decisions about what to do and what not to do and when to do them.

    I think it helps you become the CEO or owner of your company if you have done three things: 

    Get an education in a field appropriate to the industry in which you will be. While an English major education might be good intellectual capital, that education is unlikely to provide you much intelligence for running your manufacturing company.

    Get a job with a company in a field related to your intended industry. Learn from seasoned professional managers how they do business, make decisions and decide policy. That usually means working for a public firm or a large private firm. Perform to a level that earns you one or more promotions. It is quite useful, by the way, to try to operate in different functional areas so you get a semblance of the bigger picture that is so important to the growth and success of any firm, including yours. 

    Get a job in a smaller firm in the industry you intend to enter. See how the CEO of that firm does things. Compare your experience there with your experience in the larger firm. Particularly for those who are going to be inheritors of a family business, this is important. If all you learn about running a company is the way your family does it, you are going to need significant outside advice to work your way through the minefield of your business landscape.

    Path 3: You Acquired the Company from an Unrelated Party

    The problems of the startup CEO are similar, but not the same, for the "Acquired It" CEO. Unless you have experience with the company you purchased, you are starting fresh but with an existing management team and employees you know little about other than what you have been told and what your due diligence in the acquisition process has told you. The good news is you have a management team and employees who don't have to be built from ground zero. The bad news is you have a management team and employees who already know the company, its history, climate, culture, etc., before you try to imprint your own values and culture on the entity you acquired.

    One of several acquisitions I have been involved with illustrates the conundrum described above. The CEO, in his terminal illness days, brought in a new CEO who had related industry experience and a solid track record of success in his prior employment with a professionally managed firm. This was a last-ditch effort to sell the company because he had offered favorable terms of sale to the four key managers (I called them the "Gang of 4") only to have them reject the offer because, frankly, there was not an entrepreneurial manager in the group. That led to a two-year war with the management team where they undermined him and thwarted progress. The dying CEO was smart enough (thanks to good advisors and legal advice) to put into place a golden parachute for the new CEO which would have made "the Gang of 4" finally realize their financial future was closely tied to this CEO's and the firm's success. I might add this firm was successful before the transition and the "Gang of 4" could have purchased the firm with its own cash reserves without hurting the capital/cash flow needs of the business. Sometimes things aren't rational!

    End note on the story above: The new CEO gradually overcame the "Gang of 4" resistance, added key management talent, repurposed the roles of the gang members and continued to build the business. Many of the things he did are integrated into this blog. The company got substantially larger, profitably, and was acquired by a major player in its industry a few years ago for a payoff several times larger than the value of the company at the time of the aborted transaction. 

    Key Actions of the Effective CEO

    There are three critical actions that must take place if you are to become an effective CEO, regardless of whether you are the starter, the acquirer or the inheritor. They are:

    1. Creating a clear vision of what you want the company to become.

    2. Developing a clear articulation of the core values you espouse to guide the execution of that vision.

    3. Building a cohesive team to support that execution. 

    Clear Vision

    A clear vision of what you want your company to become over a specified time line is the starting point. It is your company, after all, so what do you want it to look like when it is finished?

    If you started the company because you decided that because you know how to do something, you can run a business that does that something (Gerber's definition of a "technician"), you might have only traded a job for a job because having a technician's vision does not translate well into creating and developing a successful company.

    Core Values

    You need to establish early on the core values on which you want to build your company. This is true whether it's a startup, acquired company or inherited organization. This might be the most important part of what you need to do to create a successful firm. If your core values are not clearly built and defined, the rest of the development process will be flawed and could result in a lot of trial and error. 

    If you are acquiring or inheriting a company, a substantial change in already established core values will be problematic. Most established firms inherently resist change and it might not be a pleasant experience. If you are a startup, you start with a clean slate, but that creates its own problems unless you have spent some quality creative time defining what you want your company to be and become.

    Build a Team

    You need to build a team capable of executing the vision and the core values. Again, this is problematic for all situations. The startup rarely has the right people to grow the firm because of limited resources and time. The acquisition firm will find a lot of the incumbents unworthy or inadequate after applying Gino Wickman's "Traction People Analyzer" (Gets It, Wants It, has the Capacity to Grow) evaluation of the existing team. The family business equation gets more complex many times since relatives often occupy positions in the firm are there because they have the right last name, not necessarily the right talents. Changing that, regardless of the ownership circumstance, is rarely easy or painless. Getting the right people on your bus is critical to venture success. 

    You might have noted to this point I have not used the words "leader" or "leadership" even one time. The most effective CEOs lead by inspiring their team to execute coordinated strategies and plans consistent with the company vision and  core values. Thus, leadership is implicit in all that has been stated in this treatise.  

    Getting Help

    The effective CEO addresses all three components whether personally or through the help of others because that foundation makes or breaks the progress and success of the enterprise. All three paths to majority ownership and potential effective CEO title have a common problem here: none of them can do the three essential tasks of the effective CEO without help. The help, and the degree to which it is needed, is usually a function of the experiences, vision and team development available to the CEO. 

    For the startup CEO especially, the needs for outside help and advice are critical. For those who have never navigated the breadth and growth of their enterprises before, seeking advice and guidance from others who have already do it is central to success.  No CEO is an island.

    Finding and utilizing the experience, practice and wisdom of others who have "been there, done it" is a major part of the learning curve.  That can be accomplished in several ways, including:

    l. Seeking out a guru who has successfully navigated the waters in which you are about to dip your toes. 

    2. Create a Board of Advisors or join a group of CEOs whose willingness to guide you through the uncharted waters and listen to your concerns and fears is another way to get this help. 

    3. Embrace the EOS (Entrepreneurial Operating System) Gino Wickman details in his book, Traction.  The EOS/Traction process is difficult for start up firms.   It is imperative, in my opinion, that it be implemented in acquisition and inherit situations. 

    4. The COSE Strategic Planning/CEO Development course is a logical way to help those facing the acquisition/inheritance situation.  The course provides tools and information that helps with both strategy formulation and strategy execution.  Moreover, it gives participants access to over 800 business owners/key employees with at least one thing in common - they all have "drunk the kool aid" of the course and are almost always willing to share their experiences and expertise with those who have also taken the course. 

    I've Tried Becoming an Effective CEO, But I Am Failing

    Now what? You can usually deal with the vision and the core values, but not always. Some entrepreneurs simply cannot get past the habit of chasing new ideas much of the time so that the Vision is never in equilibrium. If that's your case, you need to really embrace EOS and the Traction process so you can stay focused. Where a large portion of would-be effective CEOs fall down is in team building. The solution: Hire an “Integrator” (Wickman's terminology) who can do that for you. You might even have to make that person COO or President, and she or he will run your company while you focus on those ideas and inspirations that are the next steps for the advancement of the company. It’s important to recognize and reconcile the possibility you are not the person to lead your company day to day. Remember Dr. Land earlier in this blog? It is not a weakness to realize that to achieve company success you need to take a different role. It is better to be the designer who recognizes his or her weaknesses and finds a solution to overcome them than to forge blindly ahead towards sub-par performance.  

    5 Takeaways

    Takeaway No. 1: It isn't easy to become an effective CEO. If it were easy, a lot more people would be effective CEOs.

    Takeaway No. 2: Becoming an effective CEO is a process, not an event. Getting relevant experience and education helps a lot.

    Takeaway No. 3: Get help from those who have successfully been in your shoes. Their experiences frequently stop you from going down blind alleys, helps you keep focus and form a safety net for you while giving you "next steps" insight.  "Been there, seen it, done it" is rarely overrated!

    Takeaway No. 4: Recognize you might not ever have the tools to be the effective CEO of your business. Someone else might need to be brought in to take that role.

    Takeaway No. 5: Remember the goal, not the ego. The name of the game is a successful, profitable enterprise with great rewards for all concerned (employees, customers, and you).

    Jeffrey C. Susbauer, Ph.D. is Associate Professor Emeritus at the Monte Ahuja College of Business, Cleveland State University where he has taught strategic management and entrepreneurship courses since 1970. A long-time consultant to scores of businesses, a member of the boards of advisors to over 60 companies, he co-founded and serves as the principal instructor for the COSE Strategic Planning/CEO Development Course for the past 36 years. The course is concerned with providing entrepreneurs with education to guide their vision, strategic thinking and execution in their businesses. 

    Learn more about the Strategic Planning/CEO Development course or contact Jeff via email

    Grasshopper
    Next up: BizConCLE Spotlight: Live Your Mission Statement

    BizConCLE Spotlight: Live Your Mission Statement

    Erica Javellana joined Zappos.com, Inc. in 2007 as a Human Resources Generalist where she quickly rose through the ranks to lead the team as the Employee Relations Manager. We sat down with her recently to gain insight on what other businesses can learn from Zappos’ unconventional organizational structure.

    By developing a company culture and committing to it, you can make a positive change within your organization. Zappos.com has grown their business because of their unique culture and the service they provide to their customers. Prior to her upcoming keynote at BizConCLE, we sat down with Zappos Insights’ Speaker of The House, Erica Javellana to talk more in-depth about finding your company’s culture and what it takes to bring about organizational change.

    Share
  • Email
  • Compass Payroll

    Q: What is one takeaway you want people to walk away from your keynote having learned?

    Pre-Check

    Javellana: It’s about finding your culture. And the most important thing about that is committing to it. You can have a mission statement. You can claim to have a culture. But if you’re not committed to that, it’s a moot point. The emphasis has to be on finding your culture. Find what works best for you and what defines your company and culture and commit to that. You can list off all you want from your value statement, but it doesn’t mean anything if you’re not going to live by it.

    It starts with the onboarding process and being transparent to the candidates when you’re bringing them in. If you hire the right people, you get the right culture. People will understand what they’re coming into. You can tell them, “We’re not a company that just says it. We’re going to walk it.” When I first started at Zappos, the hiring manager told me that all of the basic foundations I knew about HR were great and we want that. But everything else, just ignore because what we’re doing here is we’re willing to make exceptions to the rule. It created an environment where autonomy speaks volumes. We hire adults and treat them like adults. Let’s trust our employees to be adults and make smart choices. Autonomy is important. Trust your employees. And tell them when they’re brought on and when they’re interviewing that you’re a company that lives its core values.

    Q: Is it possible to change a company’s culture entirely?

    Javellana: Absolutely. And it depends on scale. I hear people say all the time, “I just don’t have that kind of clout.” Of course you do. Maybe it’s not to go straight to the CEO or the VP or the president, but you can begin making those small changes in your job, or your department, or your team. Be that part of the change. Everyone else is going to be wondering, “What is that department so darn happy?” Those are the small changes you can make in your own power. Change your mindset. Love what you do, be passionate about what you do, and it will trickle over to others. People always say, “I’m just a whatever.” Well, be the best damn whatever you can be. That’s going to trickle down.

    Q: What’s the most important lesson you’ve learned working at Zappos?

    Javellana: You’ve heard of KISS: Keep It Simple Stupid? It’s a cliché, but the most important thing I’ve learned is really simple: You can’t have happy customers if you don’t have happy employees. It’s so simple, but it’s huge. That alone drives the quality of customer service and your company’s brand. We believe if our employees are happy, our customers will be happy. People expect that we have some sort of secret formula at Zappos and it’s not a secret formula. If you follow the simple clichés and commit to them, you will be surprised. I think people overanalyze things.

    Want to hear more about what Javellana has to say about the best way to look at your company’s organizational structure? Register for the BizConCLE show on Oct. 12 to find out.

    Grasshopper