Business | Martin Willoughby

29 Feb 2016

Sticky Post By overseer Posted in Business Development, Decision Making, Entrepreneurship, Managing Your Business, Uncategorized Permalink

HOW TO VETT A BUSINESS OPPORTUNITY

Sticky Post By overseer On February 29, 2016

Like other high-income earners, physicians are often sought after sources of angel investment funds for start-up or growing businesses. I am often asked to review and analyze these business opportunities for physician clients.? In this article, I am summarizing the key considerations for evaluating potential investment business opportunities in startups or growth companies.

Vision, Values, and Strategy

Can the company?s management articulate a clear vision and strategy for the company? In other words, do they know what they stand for, and do they have a plan for where they are going?? Many companies suffer from a lack of focus.? Research supports that companies with a narrowly focused strategy will generally outperform the competition.? I am wary of any company that can?t clearly articulate their value proposition in the marketplace in 30 seconds or less.? I also look for whether management and employees are all in sync on the company?s vision and strategy.? Many companies overlook the creation of a value statement.? I prefer companies that know what they stand for.? Difficult times will face every organization.? Value statements that have real meaning and adoption provide anchors during turbulent times.

Execution

This is one of the hardest things to actually find out in due diligence, but probably the most important.? Here, I am trying to determine whether the management team can actually execute the company?s strategy.? Many people confuse effort and activity with execution.? Successful companies have high functioning teams that execute with purpose and passion to get things done.? I ask questions about how management creates accountability in the organization or look for examples of past execution to try and determine whether the management is execution-oriented.? Other clues to whether a management team can execute is the level of organization, timeliness, and if they are goal oriented.? I like to see clear written goals and action plans.

Products/Markets

People raising money for a company should have a clear command of the marketplace they are competing in and how their products and services stack up against the competition.? Is the company swimming in the ?red ocean? of a very competitive market or the ?blue ocean? of new and untapped markets??? If they are in a very competitive market, then can they clearly articulate why their product/service is differentiated from the competition?? In a new market, how are they pricing their products and gauging the overall market opportunity?? Many companies venture out and find that their market is actually much smaller than they thought. It is helpful if the company?s industry has solid data on size and growth.? High growth companies need large and growing markets to thrive.? I look closely at the price sensitivity of the products/services and the barrier to entry of other people to compete.?? I also prefer recurring revenue companies versus companies that only have one-time sales.? Is the company a one trick pony or is there a pipeline of other products/services?

Management

No matter how good the products and services a company may offer, ultimately the success of a business depends on the quality of the people. ??When you invest in a company, you are really investing in the management team.? Most companies in early funding stages lack a complete management team. I try to determine the strengths and weaknesses of the management group, and I want to understand how they will shore up the deficiencies in the short term and what their long-term plans are for fully staffing the management team. ??Does the management group complement each other or is there too much overlap?? Are any of the founders part of the management that may soon have to be replaced?? Replacing a management team member can be a time consuming distraction for a company.? I prefer managers who have experienced both success and failure.? We all know we learn more from our mistakes than our successes.? I would prefer that a management team not learn their failure lessons with my investment.? Great managers are great leaders.?? They are high performers and can attract top talent.? I have found that the best leaders are great coaches and know how to get the most from their employees.?? You want to avoid know-it-all?s and micro-managers because they will ultimately prove to be poor leaders and will run off talented employees.

What is the Exit?

Most investors eventually want their money back out of the company in a reasonable amount of time.? A typical time horizon is 5-7 years.? What are the long terms plans of the company?? Are the founders creating a lifestyle business or a high growth company??? Typically, lifestyle companies will have slower growth but greater profitability.? High growth companies, often referred to as gazelles, usually focus on top line revenue growth.? These companies will typically lose money at first.? I look carefully at the ?burn rate? of these type companies and want to understand when profitability will occur.? It is critically important that the owners and management all be in sync on the trajectory of the company and the goals for exit.

The Deal

Ultimately, the opportunity to own part of the company must be for the right price tag. ?All pro-formas tend to look alike with slow growth in the early years and then the proverbial ?hockey-stick?? high growth in the later years.? The investment and corresponding ownership should be reasonable based on very conservative financial projections. There are also a number of ways to creatively structure a deal to provide additional risk mitigation for investors.? In addition, the legal terms and conditions of the corporate documents you will be signing are a major factor to consider.? Structuring the financial deal and key terms and conditions will be explored in more detail in a future column.

While this is an abbreviated list of due diligence considerations when vetting investment opportunities, hopefully it will provide you a framework to begin to consider future investment deals.? For an easy checklist summarizing these points and others, feel free to email me, and I will send you a copy.?? Good luck in your investment future!

22 Feb 2016

Sticky Post By overseer Posted in Business, Business Development, Managing Your Business, Motivation and Encouragement Permalink

GETTING THE EDGE

Sticky Post By overseer On February 22, 2016

Did you get skip that workout you planned to do today or indulge a little extra at that meal last night?

Did you opt to put off that important customer feedback project that you had been planning to launch?

These are just a few of the many minor decisions we make everyday in our lives and business, and they usually don?t have immediate consequences.? If I choose to skip my exercise today, there probably is not a significant effect on my health.? If I skip the entire week, I am probably just fine. In fact, if I skip a whole month of exercise, there is probably not a consequence except that my pants may fit a little tighter. However, in time, the daily decision to not exercise will catch up with me.? It may be years down the road, but my decisions regarding my health habits will have a compounding effect on my life ? either for better or worse.? My point is not to create guilt or motivate exercise fanatics, but to simply point out an important concept that relates directly to our success in business: we are the sum of decisions.

It has been said that if you want to understand where you are today, then you should examine your daily habits in the past.

If you want to understand your future, then you should examine what your daily habits are today.

These principles apply in our businesses as well as in our personal lives. We are always trying to get a leg up on our competition.? We read books, go to seminars, learn knew skills, work harder and faster ? all to try and inch out our competition in an ultra-competitive global marketplace.?? These are all important parts of building a successful business. ?For entrepreneurs desiring to build successful companies, there is another key ingredient that is often overlooked ? the ?Slight Edge.” ?Jeff Olson, in his book The Slight Edge, points out that the keys to your personal and business success are the things you do every single day, the things that don?t look dramatic or like they matter.? He argues that the little daily decisions not only make a difference ? they make all the difference.? The Slight Edge is simply a commitment to making the right choices day in and day out in your life and business.? It is a philosophy that helps us understand that we make decisions knowing that the results are long term.? We know that in time, if we make the right choices, our lives and businesses will be better off.

Most of us have seen the chart that shows us that if we start investing a few dollars in our early twenties and stick with it, then we will retire with lots of money.? These charts, which are often used by financial planners, illustrate the powerful principle of compound interest. When you look at the chart, it appears that you are making great progress for a number of years, but over time, the true power of compounding becomes evident.? For entrepreneurs, the key is to begin making good daily choices with your time and priorities early. Don?t let everyday distractions deter you away from doing the rights things for your business.? I often see companies ignore basic corporate housekeeping and other similar non-revenue producing activities in order to deal with urgent, but usually unimportant, issues.? While there is no immediate consequence to your business for skipping over these often seemingly mundane details, they can have long term consequences.? Often, when a company gets ready to sell or raise money and the microscope is turned on their business through due diligence, the compounding effect of poor habits in these areas truly come to light.

Most ?overnight? success stories are actually the result of years of hard work and effort.

We became spoiled in the dot-com era of companies starting up and then selling out for millions.? We need to be reminded that companies such as Starbucks, which has over 13,000+ stores in 39 countries, only had 165 stores after being in business 21 years.? The Slight Edge is no ?get-rich-quick? scheme. It is an invaluable philosophy to apply in your business to develop positive daily habits which will help maximize its potential to become a fast growth venture.

15 Feb 2016

Sticky Post By overseer Posted in Attitude Permalink

HOW TO GROW YOUR WILLPOWER

Sticky Post By overseer On February 15, 2016

At the 2009 U.S. Open, Serena Williams lashed out at a lineswoman in a profanity laced tirade that not only cost her the match, but also $82,500 in fines. Serena, a former No.1 ranked tennis player in the world and holder of 27 grand slam titles, had a lapse in self-control.? Our ability to self-regulate has tremendous impact on our lives.? The lack of self-control by many politicians and celebrities has led to public displays of the disastrous results (e.g. Rep. Anthony Wiener, Gov. Mark Sanford, Charlie Sheen, etc.).? A study published in 2010, tracked one thousand children from birth to age thirty two and found that the greatest predictor of ?success? in life was the trait of self-control.? Interestingly, in a study with over one million survey responses, participants were asked to list their personal strengths, and self-control was dead last. We seem to know our own limitations when it comes to our willpower. ??Unfortunately, the challenge of self-control has led to alarming rates for crime, divorce and sexually transmitted diseases in our modern times.? In fact, social psychologist Dr. Roy Baumeister in his 1994 book ?Losing Control? argued that, ?Self-regulation failure is the major social pathology of our time.?

For entrepreneurs and business leaders, the ability to exercise self-control is extremely important.

In today?s business environment, we have constant distractions competing for our focus and energy.? We have the vast array of information of the internet readily available ? just tempting us to explore.? We can watch our favorite movies and television shows any time on portable devices we carry around with us.? Even going to the grocery store presents us with a dizzying array of choices as local groceries have now grown into megastores.? Author and performance coach Tony Schwartz noted, ?Self-control is the ability to say no, in the face of temptation, and to take sustained action, despite the difficulty of a given challenge.?? I have the good fortune to interview leaders on a regular basis. One of the common themes I hear is that it is critical for leaders to separate ?the great from the good? by learning to say no.? By saying ?no? to very good things, we are able to ?yes? to the truly great opportunities. Leaders have to make difficult decisions and lead by example.? Nobody wants to follow people who routinely exhibit poor self-control.

Schwartz also emphasized, ?Over the years, we?ve learned that nearly everything people tend to believe about self-control is wrong. Most of us assume the only way to resist our impulses, or persevere under pressure, is to grit our teeth, furrow our brows, steel our nerves, and tough it out. Precisely the opposite is true.?? In his recently published book entitled ?Willpower,? Baumeister shares the results of over two decades of rigorous scientific study on this topic which I believe will reframe how think about self-control.? Baumeister and his co-author John Tierney share that ?willpower is a form of energy in the brain. It?s like a muscle that can be strengthened with use, but that it also gets fatigued.?

What the authors found was that our energy is the key to our self-control.? We all have a pool of energy to complete our physical and mental tasks each day.? Each time we exercise self-control in an important or even trivial matter, we draw down on this available energy.? The energy source in our bodies is glucose, the simple sugar produced in our body from the foods we eat.? Researchers found that there was a direct correlation between glucose levels and self-control.? In fact, they found that, ?As the body uses glucose during self-control, it starts to crave sweet things to eat . . .?? I know when I skip a meal that I become ravenous and my own willpower to eat healthy tends to go out the door ? just give me a piece of pizza!

As we learn more about how our brains and bodies work, we can put this information to use in our daily lives. By learning to improve our willpower, we can create a huge competitive advantage in work and life.? To have more self-regulated lives, we have to learn how to manage our energy.? Below are some of the core concepts from this emerging of field of research that we can start to apply today.

Maximize Your Energy

Based on the research, we could draw the wrong conclusion that we need to have Snickers? bars with us all the time to fuel our glucose so we can exhibit better self-control.? This is obviously not the way to go. However, the key is to maintain healthy glucose levels throughout the day.? Nutritionists would tell us to accomplish that by eating more frequently throughout the day (5-6 times a day).? My own research on this topic has convinced me to be a ?grazer? throughout the day and avoid large meals.? This research also validates the advice your mother gave you to ?eat a healthy breakfast!?? Starting your work day without having a good breakfast puts you at a competitive disadvantage from the beginning of the day.? We also know that we should eat low-glycemic foods which provide sustainable sources of energy throughout the day.? When our bodies crave the afternoon snack, we need to refuel with good sources of glucose and not the cookie or Coke.? ?In addition, the research is clear that regular exercise and sleep all help us maintain the right levels of energy.? The average American only gets six hours of sleep, but performance expert Dr. Anders Ericcson has shown peak performers sleep eight or more hours a night on average. ?The bottom line is that we can be intentional about improving our willpower by better managing our energy levels.

Make Your To Do List

Baumeister and Tierney also found that one the keys to improving our willpower is have a good ?to do? list.? However, this does not mean creating pages of things that we need to get done.? Instead, they noted, ?an executive?s daily to-do list for Monday often contains more work than could be done the entire week.? We tend to have too many goals and to-do?s which diffuses our focus and energy.? Baumeister and Tierney shared a best practice for team members to weekly share up to three goals that they plan to focus on for the following week and to create a weekly accountability loop on those goals.? It is also important to pre-plan your reward for achieving your goal. ?I enjoy the great feeling of scratching an item off my to-do list. It is a simple act but brings me joy!

Clean Your Room

Research has also found that having a messy workspace leads to less self-control.? Unfortunately, those stacks of paper piled up on our desks actually are hurting our ability to exhibit willpower and achieve our goals. By ordering our workspace, we create positive momentum and don?t deplete our willpower resources. ?In fact, a clean workspace is an integral part of the Japanese 5S system of workplace organization used by many companies.

Conclusion

One of the interesting findings from research on willpower is that people with more self-control are more altruistic.? They give more to charity, volunteer more, and are more likely to be concerned about others in society.? ?It is also encouraging to me to learn that I am not a slave to my weaknesses, but that I can actually learn to have better willpower to accomplish positive things in my life.? Through implementing some of the findings described in this article and others from this emerging field of research, we have the ability to improve not only our own lives, but also those around us.? For entrepreneurs and business leaders, reclaiming this character trait of willpower and learning how to grow it could be the most important element of future success.

05 Feb 2016

Sticky Post By overseer Posted in Business Development Permalink

MARKETING YOUR BUSINESS

Sticky Post By overseer On February 5, 2016

Marketing is a very common business concept, but one that I find is interpreted and applied very differently by business people. Marketing is often seen as a luxury, and not a necessity, so it is often first on the chopping block during budget cuts.? Hundreds, if not thousands, of marketing books are published each year trying to influence the way business leaders plan and execute their marketing strategies.? Over the years, Al Ries, Jack Trout, Robert Cialdini, and Seth Godin are a few of the authors and consultants that have risen above the pack to make a major impact on the way we think about marketing. For most entrepreneurs who don?t have a direct background in marketing, sorting through the various theories of marketing can be a difficult thing.? Part of the confusion lies in how we think about advertising, public relations, sales, and marketing.

I recently spoke with Bryan Carter, founder of thinkWEBSTORE.com, to get his thoughts on how entrepreneurs should approach their marketing strategies.? Carter has a very interesting background in design, technology, psychology, and business. His experiences include being a national consultant and speaker, authoring journal and industry articles, working for a large advertising agency, and developing award winning multimedia learning tools.? In 2007, he opened thinkWEBSTORE.com with a clear purpose in mind ? to offer a ?one stop shop? for businesses and their marketing needs. The services offered include marketing strategy, website design and hosting, search engine optimization and marketing, email marketing and advertising services for small and mid-sized businesses. Part of what makes Carter?s business model different is that he provides these services from a retail location versus a traditional office environment. Carter?s success is no accident. He knew his target market and designed a whole business around meeting the needs of that underserved market. Carter leveraged his experience and expertise in planning out the entire business concept in great detail and now has executed that plan diligently.

Many service professionals suffer from the ?cobbler who has no shoes? problem, but Carter has certainly avoided that and done an excellent job of marketing his own business. Even though the economy tanked soon after it opened, thinkWEBSTORE.com is ahead of its goals, and Carter anticipates executing soon on his plans to expand the concept regionally and nationally.? According to Carter, ?Marketing is how you put all the pieces together of advertising, PR, and sales.? It is your overall strategy which should be consistent and well thought out.?? Carter described advertising as the tool that gets people to your door and sales as a delivery mechanism.? Marketing, he emphasized, is where you ?think through the details of your business including such things as pricing, positioning, and delivery ability.?? He also noted that while marketing is comprehensive, it does not have to be complicated.? Carter also believes that a company?s website, regardless of the type of business, is really the core that should be used as a guide for all other aspects of marketing.

Operating a service business, Carter noted that he emphasizes quality as they key.? In order to do that, he has a simple credo for his employees:? Be aware; Think things through, and Own it! He pointed out that when you are aware and think things through, owning the issue is usually not a problem.? I see many businesses where a lack or ?ownership? is a major problem. Lack of ownership leads to no accountability which usually results in disastrous results both for both customers and the company. Ultimately, Carter?s passion and business is about helping entrepreneurs help themselves.? Many business owners come to thinkWEBSTORE.com with ideas and dreams, and Carter and his team help them accomplish them.

I am inspired by the detailed thought and planning that Carter puts into his business. For entrepreneurs and business people, I think we can all do better at being more diligent in thinking through the details of our business.? This type of planning is a fluid and ongoing process, and one which is important for the long term success of a venture.? For me, it involves a bit of a paradigm shift to try and clearly see a business through the eyes of the clients and prospective clients.? Truly great businesses see this view. They design not only their products and services, but the entire experience to maximize it for their clientele.? I am sure that we will continue to see the impact of Carter?s attention to this detail in the success of his business and his client?s businesses in the years to come.

25 Jan 2016

Sticky Post By overseer Posted in Uncategorized Permalink

THE VALUE OF CULTURE

Sticky Post By overseer On January 25, 2016

I must have looked lost as I was meandering down the food aisle at a Publix Super Market.? As I was unsuccessfully trying to pick up a few items off my ?honey do? list from the grocery store, I heard the words from a friendly Publix employee, ?Can I help you find something??? I was a little caught off guard because I couldn?t remember the last time I was asked in a grocery store if I needed some help with my shopping.? I was prepared for some directions on where I could find the missing item; but instead, the employee insisted on retrieving the product for me while I continued my shopping.? WOW!? I was blown away.? As a business coach and consultant, I take note of great service.?? I was also intrigued.? What kind of organization was this with employees who were so passionate about customer service?? As I was in the checkout line, I shared my positive experience with the checkout clerk (who was also very friendly).? I asked to speak to the manager of the store so I could report this excellent customer service.

I learned a lot in my brief exchange with the store manager.? This young man shared with me that this was normal behavior for their employees.? I learned that he had been with the company for over twenty years and started as a part time employee in high school bagging groceries.? As I pressed in for the secret sauce to the great service, he pointed my attention to their secret – THE CULTURE!? He shared with me how important the company?s culture is and how much attention they pay to cultivating and reinforcing it throughout the organization.? The focus on culture has paid off for Lakeland, Florida based Publix. It is the largest and fastest growing employee owned super market in the country.? With over $27 billion in sales, 1,056 stores, and 157,000 employees, Publix is ranked 106 on the Fortune 500.? What caught my attention though was that the company had been on FORTUNE magazine?s ?100 Best Companies to Work For” for over 16 years.

Publix?s emphasis on its culture dates back to 1930 and the company?s founder George Jenkins. Jenkins held himself to the high standards he expected of others and created a culture of service ?not only to the customer who came into the store to shop, but to every associate as a customer of another associate.? Jenkins and other leaders believed that ?people want to help, and, if given the resources to do so will provide extraordinary service.??? One of the ways they create such loyalty is by promoting from within.? The current CEO and President each started out in Publix as front-service clerks over 25 years ago.? I also took note that, the average tenure at Publix for store managers is 25.1 years, retail hourly workers average about 5.1 years, and hourly support workers average about 9.1 years.

As I have studied companies like Publix, I have become convinced that building a great culture is absolutely one of the keys to building a great company.? It is particularly important for any company that wants to grow and expand with people.? For some, talk about culture may sound ?soft? or of secondary importance.? These type naysayers may believe that having a great culture is a ?nice to have? versus a ?must have.?? Very few companies can afford to ignore their company culture.? If your company involves people interacting with people, then you should be paying attention to your culture.

?For definitional purposes, I describe a company?s culture as the shared values and practices of the people in the organization.? These are the common beliefs and habits of the organization.? Here is the critical part ? your employees represent YOUR BRAND.? They are the living, breathing implementers day to day of what your company stands for.? In other words, they are the front line in creating your brand in the marketplace.? Companies can spend millions on positive advertising but one bad interaction with a representative can destroy the customer?s feelings about the company.

I was attending a conference at the Ritz Carlton in New Orleans recently, and as I was leaving a member of the housekeeping staff stopped me on my way to the elevator and wanted to make sure I had enjoyed a great stay at the hotel and wished me safe travels on my journey home.? She did not have to do that.? It was probably not part of her job description.?? However, with a smile and genuine sincerity she made a point to wish me well on my way.? I have shared with dozens of people about this simple exchange and how that positively reflects on the brand of The Ritz Carlton.

Gregg Lederman, founder of Brand!ntegrity and author of the book entitled Engaged! Outbehave Your Competition to Create Customers for Life, travels the country helping companies realize the value of culture and how important it is in developing their brands.? He notes, ?Branding is not part of the business, it is the business. Every interaction with an employee, with a coworker or a customer has the power to strengthen or hinder the brand image of your company.?? Lederman emphasizes that branding is about experiences and not logos and taglines. ?He teaches companies that the little things that they do daily are more important than the big things they may say about themselves.? I believe and share with my clients that every day their doors are open is ?Game Day,? and they should treat it with the opportunity for greatness.? Unfortunately, for too many companies it becomes like ?Groundhog Day,? and mediocrity can creep in.

I recently discovered Lederman?s company and work, and I have been impressed.? In addition to his thought leadership on this subject, his company has come up with something truly unique in my opinion.? They have created a proprietary software system that actually allows companies to better manage their brand by tracking and measuring customer satisfaction, employee engagement, and financial results. What they have accomplished is the linking together of these critical aspects of the business in a quantifiable way that encourages the right behaviors.? This use of metrics and creative ways to reinforce positive behaviors strengthens and builds the culture, and it is all tied back to the company?s profitability.?? I believe in the future we will see more and more organizations focused on building powerful brands, and I think we should all start to consider what is our R.O.C. ? Return on Culture. ?

08 Jan 2016

Sticky Post By overseer Posted in Health Care Permalink

THE CRITICAL NEED FOR TEAMWORK

Sticky Post By overseer On January 8, 2016

Teamwork has been a buzzword around the business culture for some time.? Leading businesses know that well performing teams are the key to profits in a business.? However, teamwork takes on a whole new level of importance in life or death situations such as military combat, airline travel, and healthcare. In 1999, the Institute of Medicine (IOM) published To Err Is Human: Building a Safer Health System, which was a revealing review of the U.S. medical care system and the inadequacy of safety practices used in the treatment of patients. The IOM report estimated that medical errors result in 44,000 to 98,000 deaths annually?more than automobile accidents (43,458), breast cancer (42,297), or AIDS (16,516). Since then, there have been a number of initiatives and task forces to address this problem, including the development and research of team based training to improve patient safety.

While the focus on teamwork in healthcare has brought improvement, there is still work to be done. The study, “Medical Errors Involving Trainees: A Study of Closed Malpractice Claims from 5 Insurers,” appeared in the October 22, 2007, issue of the Archives of Internal Medicine. The lead author, Hardeep Singh, M.D., M.P.H., noted, “Our study confirms the relationship of poor teamwork to preventable errors and quality of care.”? The Agency for Health Research and Quality (AHRQ) Director Carolyn M. Clancy, M.D. stated about this study, “This study reminds us that we have a lot to do to ensure that hospitals are providing appropriate supervision to trainees and implementing team-training programs, both in the inpatient and outpatient setting.”

In addition to the obvious importance of teamwork for patient safety, there is also a critical need for effective teamwork to create the efficiencies needed to deal with increased patient volumes and decreasing reimbursements. Physicians today need to make sure they have expert teams, not just teams of experts.? Expert teams aren?t created overnight.? It?s a process and takes purposefulness and commitment.? Teams typically begin in the formation stage where people are learning, leaders are directing, and people are getting to know one another. Unfortunately, this is usually followed by the storming stage where clicks can development, a great deal of supervision is required, and disagreements can ensue.? While many teams get permanently bogged down in the storming stage, better performing teams will enter a norming stage.? In this stage, the team starts to actually work together as a team, goals and directions become clear, and the overall performance improves. Truly high performing teams will enter a performing stage where team members all exhibit leadership, self-motivation is high, and the team members all have strong skills and knowledge.? The reality is that most teams will move up and down this spectrum as they progress and decline in their teamwork.

For some, discussions about teamwork and team building conjures up images of warm and fuzzy games and retreats.? Working on teamwork can be seen as a waste of time and money and not ?real work.?? The reality is quite different.? From 1955-2008 there were over 300 empirical articles on teamwork studying over 10,000 teams. For example, a study by Eduardo Salas, Diana R. Nichols and James E. Driskell Small Group Research 2007; 38; 471 entitled ?Testing Three Team Training Strategies in Intact Teams: A Meta-Analysis? found unequivocally that team training improved performance.

There are a number of training methods that can be used to deliver results including: cross-training, event-based approach to training, scenario-based training, self-correction training, stress exposure training, team adaptation training, and team leader training.?? The reality is that physician team settings vary dramatically from emergency room, to general surgery, to primary care physicians.? The key is adapting your training to your specific environment. For those considering team training, it can be a waste of time and money unless the design and delivery of the training is based on scientific principles, the physicians take ownership, teamwork is rewarded and encouraged, and there is feedback loop to debrief and measure success.? True team development should focus on building the knowledge, skills, and attitudes of your team members and should be an ongoing process.

The handwriting is on the wall.? There is no doubt that quality of care will continue to be scrutinized with greater intensity, particularly with the shift to electronic medical records.? The link between pay and quality of care is only going to get stronger.? Physicians will have to continue to do more with less.? There will be increase pressure to see more patients and be highly efficient. At EMHC, we are continuously striving to stay up-to-date on the quality of our patient care. While more studies need to be done, we have enough data from the commercial airline industry and the military to show us that we need to strive for better teamwork in healthcare to improve safety.? Since many physicians are also entrepreneurs, they must keep an eye on the bottom line and the work of business has shown us undoubtedly that it?s hard to be profitable with a poorly performing team. In the near future developing your healthcare team won?t be a luxury, but a necessity.

30 Dec 2015

Sticky Post By overseer Posted in Culture and Worldview, Uncategorized Permalink

LEADERSHIP RESOLUTIONS

Sticky Post By overseer On December 30, 2015

The New Year brings a sense of renewal and change.? Studies show that almost half of Americans make New Year?s resolutions. Unfortunately only about 10% of those will actually achieve their goals. As you might imagine, resolutions to improve health and finances rank at the top of the wish list. ?One of the key ways to achieve resolutions is to let them become a habit.? Psychologist Williams James noted, ?All our life, so far as it has definite form, is but a mass of habits.?? While it is frequently said that it only takes 21 days to make a new habit stick, my review of the scientific literature on the subject indicates that it takes our brains closer to 60 days to actually rewire around a new habit.? As we enter 2015, here are a few leadership ideas to consider making a habit.

Just Say No

It?s tough to say no.? We might offend someone or miss an opportunity.? A friend of mine describes the need to ?chase shiny things? versus staying focused.? However, great leaders know that the ability to say no is critical.? As Gandhi said, ?A ‘No’ uttered from the deepest conviction is better than a ‘Yes’ merely uttered to please, or worse, to avoid trouble.?? Leadership expert Tony Schwartz similarly emphasized, ?Saying no, thoughtfully, may be the most undervalued capacity of our times.? We have more options than ever and countless opportunities vying for our attention.? It is more important than ever to be purposeful about what we say yes to.? However, this is no easy task.? We often have to say no to many good things.? However, unless we say no to the ?good? then we will never be able to focus our time, talent, and energy on the ?great.?

Show Appreciation

Studies have shown that for knowledge workers, money alone is insufficient to motivate performance.? Dan Pink summarized this research in his book Drive and noted that workers are best incentivized by creating an atmosphere of autonomy, mastery, and purpose. ?In addition, I believe that people need authentic and genuine appreciation.? As I interview employees in organizations, I am amazed at the number of them who have never been shown appreciation in any form.? Appreciation is like a gift.? There is no reason as a leader to be stingy with this gift. ?Whether a subordinate, co-worker, or a boss, I highly encourage people to get in the habit of showing appreciation.

Follow Up

I believe one of the most difficult aspects of leadership today is living by the motto ?say what you are going to do, and do what you say.? ?As I was beginning my career, a wise businessman told me that if I would do good work, return phone calls, and do what I said then I would always have plenty of work to do.? I believe there is great truth in his advice.? As leaders, we need to make a habit of being excellent at follow up and execution.? In addition, if you have people that you are delegating to then you need to be very intentional about follow up.? One of my early mentors kept a legal pad where he wrote down every promise someone gave him regarding delivery on a project or task.? If you missed a deadline, you could expect an immediate phone call from him.? My observation was that his team knew that when they were assigned a task and deadline that he meant it.

I hope these ideas will be an encouragement to you to be the best leader you can be in 2016.

28 Dec 2015

Sticky Post By overseer Posted in Business Development, Entrepreneurship, Managing Your Business, Structuring Your Business Permalink

5 WAYS TO RAISE CASH FOR YOUR BUSINESS

Sticky Post By overseer On December 28, 2015

For many entrepreneurs, these are trying and uncertain times. Cash is critical and many companies are facing the twin fronts of attack of vendors wanting their money up front and customers delaying payments.? All the while, employees still need their regular paychecks. Therefore, if a business is experiencing a liquidity crisis, management (and their key advisors) must act quickly to assess the situation and determine the appropriate plan of action.

The first course of action is to determine whether, and on what terms, additional cash resources might be made available.? There are a number of ways a business can free up cash.? The determination of what options to pursue will depend on the specific facts and circumstances and must take into account the health of key relationships (i.e. vendors and bankers) and the general economic climate.? Below is a list of some of the options available for entrepreneurs:

Trim the fat: Reduce overhead and cut expenses

Most businesses wisely start here because the decision to cut expenses is within the control of management and generally does not require the need to get approval from outside parties such as lenders. This cost reduction could include closing unprofitable store locations or divisions. Sound accounting and reporting makes this analysis and cost reduction process much easier.? However, from a strategic standpoint, you need to make sure the cuts are not so deep that they disrupt the business? core economic engines.

Get stingy:? Aggressively monitor collections and trade credit (especially to new customers)

A liquidity crisis often happens in an economic slow-down (like the current one we are experiencing) when all businesses are fighting over limited cash resources.? Therefore, many customers become ?slow pay? or ?no pay? and cash receipts begin to shrink. If your business is owed money, you need to obtain it.? Even if you have to bonus your collections personnel or use an outside agency, this additional cost is worth it if it brings precious cash in the door.?? Keep in mind, however, that aggressive collections also requires a balance ? you don?t want to alienate key relationships.

Consider your leverage: Cash out or refinance existing debt

If your company is paying above-market interest rates on debt or is carrying debt against assets with substantial equity, then you should exhaust every effort to refinance the debt to cash out equity or to lower its interest carry.? However, it would be better to keep above market debt (especially if is revolver with an additional room for draws), then to obtain a new loan with financial covenants that will ultimately restrict flexibility and further distress the company.? Also, the time required (and closing costs involved) must be considered in determining whether refinancing current debt is a feasible option.

Go back to the drawing board:? Seek concessions from existing creditors

If new financing is not available, then existing creditors are another option to consider.?? Keep in mind that ?creditors? includes not only traditional lenders, but also includes vendors that may provide goods and/or services on short-term credit.? Therefore, among the options for resolving a liquidity crisis is to ask vendors to extend payment terms, grant discounts, or provide other forms of relief.

Get a shot in the arm:? Obtain cash through an equity injection

There are many investors that are not afraid to look for value in the form of distressed companies.? However, the ?cost of equity? is often far greater than the cost of debt ? particularly in high-risk scenarios.?? Furthermore, these investors will usually want to protect their cash via a controlling economic and/or voting interest in the company.?? This option often does not sit well with management, particularly if the company is still in control of its founders.

Again, these are just a few of the many options available.? Some of the most successful companies were founded in recessions (e.g. Southwest, Microsoft, Genetech).? By proactively and realistically addressing the liquidity crunches in their businesses, hopefully many companies will weather the current storm and potentially even turn this downturn into an opportunity for growth.

Originally published in Pointe Innovation Magazine

07 Dec 2015

Sticky Post By overseer Posted in Managing Your Business, Motivation and Encouragement Permalink

SHOW YOUR APPRECIATION!

Sticky Post By overseer On December 7, 2015

Even back in the 1970?s, Daniel (Rudy) Ruettiger was an undersized football player.? Standing 5 feet 6 inches and weighing 165 pounds, he was a longshot at best to play on Notre Dame?s football team. Through courage and commitment, he made it as a ?walk on? onto the scout squad which helped the varsity team prepare for games.? On November 8, 1975, Coach Dan Devine allowed Rudy in his senior year to dress out with the team for the final game against Georgia Tech.? He only played two plays that day.? One was a kickoff and the other was the final play of the game where he sacked the quarterback.? At the end of the game, Rudy?s teammates carried him off the field. Rudy was only one of two players in Notre Dame history to be carried off the field by his teammates.? This dramatic story was captured in the movie Rudy, and the image of him being carried him off the field is a moving example of showing deep appreciation.

The Challenge: Keeping Good People

While it is unlikely that we will ever parade a co-worker through the office on our shoulders, we do have the opportunity to show appreciation to our employees and co-workers in the workplace. This is not just a ?feel good? exercise, but instead a solid best practice of successful companies. A number of surveys suggest that the number one issue facing business is finding and keeping good employees. High employee turnover can have a direct impact on the bottom line. The costs of turnover include recruiting replacement costs, administrative costs, lost productivity, training, and supervisory time. In fact, experts estimate that the costs of employee turnover average twice an employee?s salary.

The mistake is to assume that if we just throw money at employees that it will ensure that we keep them.? While monetary rewards are nice, the reality is that employees want to feel valued and appreciated in their jobs. In The 5 Languages of Appreciation in the Workplace, Dr. Gary Chapman and Dr. Paul White noted that based on extensive research, 89% of managers believed that employees left jobs for more money; however in reality, only 12% of employees actually reported that they resigned over compensation. In a four year analysis of more than 100,000 employees worldwide, the Corporate Leadership Council discovered that while workers ?join companies for rational motives (better compensation, benefits, and career opportunities), they stay and work hard for emotional ones.?

In The 7 Hidden Reasons Employees Leave, employee retention expert Leigh Branham noted, ?Everyone wants to feel important, yet many organizations make their people feel quite the opposite. It could be seen as a lack of simple appreciation, or a greater focus on making numbers, and not valuing employees.? The Gallup organization has conducted extensive research based on interviews with more than 17 million people over more than 30 years.? They identified 12 core elements that link directly to critical organizational outcomes. Interestingly, one of the core elements was that, ?employees receive regular recognition or praise for doing good work.? Gallup also found that almost 70% of the employees in the United States say they receive no praise in the workplace.

The Opportunity: Showing Appreciation at Work

Dr. Gary Chapman, best-selling author of The Five Love Languages and Dr. Paul White, a nationally recognized family and business coach, teamed up to write their book to help us understand how we are encouraged in the workplace as well as how to best show appreciation to others. Their book provides the tools, resources, and information to help apply these concepts in a practical way in the workplace.? One of the most compelling aspects of learning to show appreciation in the workplace is that it can be done for very little cost, yet it can accomplish significant results. For those that may think showing appreciation is too ?touchy feely,? the reality is that there is a significant return on time and investment for creating a positive work environment where appreciation is shown.? The key is simply being intentional about how we show appreciation so that we don?t take a ?one size fits all? approach.

In fact, providing the wrong type of appreciation can actually do more harm than good. Chapman pioneered the idea that we all have different communication ?languages.? He has described the five languages as words of affirmation, quality time, acts of service, tangible gifts, and physical touch.? Chapman and White have applied and adapted these concepts to the workplace to show how we can better communicate appreciation to our co-workers and employees.? They developed the Motivating by Appreciation (MBA) Inventory to identify your individual language of appreciation.? Purchasers of their book are provided a code to take the test and determine their appreciation language.

We tend to show appreciation based on our own language and not that of those around us.? By taking the time learn the languages of your team, you will be able to much better show them effective and meaningful appreciation.? In today?s economy, it would be foolish to just think, ?Well, my employees should just be thankful they have a job.?? This view is short sighted and misses the point that by taking a little time to show appreciation in the workplace based on individual needs, leaders can create a positive work environment that is more pleasant and productive.

Build a Great Habit

I believe that great companies have great habits.? Being intentional about communicating personalized appreciation is one of those habits.?? It is important to recognize the challenges that can exist to effectively create this great habit.? One of the biggest challenges is the ?tyranny of the urgent? that keeps everyone so busy that they don?t take time to communicate effectively. Don?t let showing appreciation fall into the ?important but not urgent? bucket that never gets done. Take time and be purposeful on this important task. Finally, some people may not feel comfortable showing appreciation.? The more you educate yourself on this important area the more comfortable you will feel.? Also, remember this is not about you, but what you can do for other people.

As the old saying goes, ?nobody cares what you know, until they know that you care.?? I hope that you will consider the value and benefits of making your workplace one in which appreciation is shown.? Remember, even if your whole workplace is not on board with this concept, we each have the opportunity to create a positive impact by starting to show appreciation to those we work with today!

04 Dec 2015

Sticky Post By overseer Posted in Entrepreneurship, Health Care, Healthcare, Leadership Permalink

ARE YOU A MEDICAL ENTREPRENEUR?

Sticky Post By overseer On December 4, 2015

Successful Medical Practices

All doctors are medical entrepreneurs to some degree. Since the pioneer days in America when they hung a shingle outside their practice door, doctors have been the original medical entrepreneurs.

A simple definition of an entrepreneur is ?a person who has possession of a enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome.?

Sound familiar? Physicians, like other professionals, often practice in solo or group settings where they are the boss and certainly experience the intrinsic risks and rewards of their medical practice. You may not necessarily feel like an entrepreneur and that?s certainly understandable. A physician?s first and foremost responsibility is obviously patient care. In fact, almost all of medical training prepares physicians just for that task. However, most professionals, including physicians, rarely are trained on how to run their own practices.

I have spent more than 25 years operating and working with entrepreneurial business ventures, and I?am now the CEO of an emergency health care company in Memphis, TN, Emergency Mobile Health Care. I have had the good fortune to study with and learn from some great mentors in this arena, and I?m passionate about seeing people fulfill their entrepreneurial potential. I?m excited to share with you in this column some of the key principles I?ve learned about entrepreneurial success, and specifically, how those can be implemented in a physician practice setting. In addition, I?ll highlight some notable medical entrepreneurs and offer tips on how to evaluate business opportunities outside of your core medical practice.

I begin with the simple premise that your medical practice is an entrepreneurial business, and that your practice shares many common features of any entrepreneurial organization. Common characteristics include people management, implementing systems and processes, taking care of your customers, and financial risks and rewards.

People Management (or Cat Herding)

Rarely do I find an entrepreneur or a physician who operates as a solo act. To run your practice, it takes nurses and staff to operate effectively. Therefore, your success becomes interwoven with your ability to get the most out of the people you work with. Anyone who has every managed an employee knows that hiring and developing talent is no easy task. Therefore, the questions become: what kind of leader are you? Are you getting 100 percent from your team or are they giving you the bare minimum to get by? Building a great team around you is a key step in your path to success.

Systems Management

Every medical office, like every business, also has systems for doing things. The question is whether you know what those systems are and how are they working.? Are you streamlined and efficient, or are you daily enduring broken systems?? Exemplary practices have written ways to do things that people understand and follow. The way Chic-fil-A can serve up a great chicken sandwich no matter what store you visit in the country is based on one simple thing: a great system!

Customer Management

Your patients and referral partners are your ?customers.? Every time one interacts with you, they have a customer experience. Do you know what that customer experience is? Have you thought through your interaction from first contact to final communication? Is there consistency and predictability in what your customers experience with you? Great practices have a well thought out customer experience cycle that is clear and repeatable.

Financial Management

What about the bottom line? While we all hopefully work to pursue a calling and seek personal fulfillment, we also are trading our time and effort for money.? Today?s medical practices are complicated and can be difficult to manage financially. There are lots of expenses, and reimbursements tend to go down and not up. Therefore, keeping a careful eye on the bottom line is critical. Physicians, like many busy entrepreneurs, tend to entrust financial responsibilities to others in the organization. However, I believe it?s also critical for physicians to know and have clear visibility into the key economic drivers of their businesses.

Thinking Strategically

Finally, as entrepreneurs, I encourage physicians to take time to work ?on their practice? and not just ?in their practice.? Most people are so thankful for a day off that they rarely want to turn around and think more about work. However, most of us stay in the trees and rarely plan and dedicate time thinking about the forest.? The end result is that we often feel like we?re on a treadmill we just can?t seem to get off.

I spoke with Robert Harris, MD, a urogynecologist with Women?s Specialty Center in Jackson, MS, who is a well known entrepreneur physician. He shared:

?I try to purposefully take time away from my day-to-day practice each week and work on improving both my practice and my life.?

For Dr. Harris, this has allowed him to not only strategically improve his medical practice, but also to create the time to pursue medical start-up businesses outside of his bread-and-butter practice.

In sum, we give a great deal of ourselves to our work and professions. By becoming entrepreneurially minded, you help not only gain better control over your practice, but also your life.

(c) Martin E. Willoughby, Jr.

Originally published in Medical News