Planning to Win in 2023 – Cash Strategy, Employee ownership and work benefits & Good Director vs Bad Director
15 January 2023 Newsletter
“If you build your business on customer needs, not technology, you have good chance of success because customer needs do not change.” Hermann Simon
Hope you’re Thriving!
I hope your New Year is off to a good start.
Over the holiday season, I’ve collected some of my favourite articles and podcasts from the year to share with you. Kind of like a best-of from 2022.
Couple this with my recommended reading list and hopefully, there is something of real interest and value for you each week.
I’m keeping them short and sharp.
Enjoy your holidays, stay safe, and I hope you enjoy them.
Employee ownership and work benefits
Over the last couple of years, I’ve seen some fantastic Employee Share Ownership Plan (ESOP) success stories.
I’ve seen ESOP used quite effectively as a tool to retain staff and lock in the best talent in a growing firm.
I thought you’d be interested in this infographic from The National Center for Employee Ownership (NCEO) outlining the benefits of being an employee-owner.
Also, if you’re looking for an Australian based ESOP lawyer, message me, as I know a great one I can recommend.
This week, Kevin Lawrence and I appeared on the Acquisitions Anonymous podcast, the internet’s number 1 podcast about buying and operating small businesses. It was a great chat, with many laughs, and the hosts provided some great questions.
We talked about:
• What is Scaling up?
• What business is it useful for?
• Scaling Up vs. EOS,
• What are predictable issues of Scaling?
• What is the role of a CEO?
• How to hire a CEO?
Listen or watch on the links below:
Acquisitions Anonymous Episode 95 – Learn business as we review businesses for sale: Scaling Up – More brains, more cash, more momentum… more problems?!
Good and Bad Directors
There is no manual about being a good or bad board member or director.
Many people try to do their best but don’t know when they are doing good or bad.
This week I came across this awesome list that was so good that I wanted to share it with you below.
Good Director knows they only have two jobs:
Hire and compensate the right CEO.
Approve the budget and strategic plan.
Bad Director thinks their main job is to provide good ideas. They think the board’s job is to micro-manage the CEO.
Good Director knows that things always go wrong. They make it safe to share bad news and simply ask: “So what are we doing about it and how can I help?”
Bad Director loses their temper and berates management when they get bad news. They incentivize management to hide bad news.
Good Director hits a home run once or twice a year. Typically a recruit, strategic partnership, new investor, etc. They are always looking for opportunities to help.
Bad Director just shows up for the meetings and otherwise doesn’t think much about the company.
Good Director trusts the CEO completely until they don’t. Once they don’t, it is time to make a change. There’s no in between.
Bad Director constantly tests and scrutinizes the CEO, making them feel insecure in their role and always on the brink of being fired.
Good Director has extremely high standards for board meetings and communicates them clearly. That means clear presentation, timely financials/KPIs, focus on strategy not reading materials out loud.
Bad Director takes whatever management gives them as “normal”.
Good Director never undermines the CEO in front of their team. Any difference of opinion is resolved privately and with ultimate deference to the CEO.
Bad Director will be unaware of who is on the email thread or in the room and will be “fast and loose” with their words.
Good Director will request the materials 48 hours or more in advance and will have read them. They will say “We have all read the materials, so let’s dive right into the most important things.”
Bad Director will show up having read nothing and expect management to read aloud.
Good Director will recognise when they are too busy to be useful/engaged and step aside, ideally recommending someone with the time and energy.
Bad Director will be unwilling to give up the power no matter what.
Good Director knows that management can only focus on 1-2 things at once.
Bad Director forwards an article they read with the subject line: “Why Aren’t We Doing THIS?!?!”
Good Director always remembers that they are a fiduciary of all shareholders.
Bad Director looks at every decision as: “What is in it for my firm/pocketbook?”
You can check out the thread here: Xavier Helgesen on Twitter
This week on The Growth Whisperers Podcast
Planning to Win in 2023 – Cash (5 of 5)
What cash decisions do you need to make to win in 2023?
2023 looks to have major challenges that are slowly developing. And this is especially so when considering your cash and how it might be impacted by the changing environment. One of the most important questions to answer to best prepare for 2023 is how can I maintain consistent financial performance if my customer’s needs or spending changes?
Notable quotes from the episode:
“Profit is an opinion, but cash is a fact”
“How can you have and generate more cash to grow and handle the bumps that might be in the road ahead?”
This week we discuss how to maintain consistency if your customers are impacted and how can you win in 2023 through the cash lens.
Episode 144 – The Growth Whisperers
Listen to The Growth Whisperers
Or watch it on YouTube
Onboarded: Fast Track New Hires to Success – Live Virtual Masterclass with The Growth Faculty – 22 February 2023
In partnership with Growth Faculty, we are pleased to offer you 25% discount for Onboarded: Fast Track New Hires To Success – Live Virtual Masterclass with Brad Giles.
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“The new hire traverses three stages of understanding, learning and applying, which should be embedded, whereby at the end they are a successful fit into the role,” says Brad.
Founder of Evolution Partners, Brad works with CEOs and leadership teams to build enduring, great companies. He is the author of Made to Thrive and Onboarded.
“By implementing Brad’s onboarding strategies outlined in this book our team retention for new starters within the first 12 months doubled which had a huge impact on the culture of Aventus and ultimately our financial results.”
Darren Holland, CEO, Aventus
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