Seeing the Big Picture

Last week, I got a copy of Kevin Cope's new book, "Seeing the Big Picture: Business Acumen to Build Your Credibility, Career, and Company." This is a great primer on how to figure out the real way your business works - I'm talking about money and profitability.

I wish I'd had this book a year ago. I work for a company that was purchased by a private equity firm last year, and I've had to learn a lot of new things about the financial aspects of business, as they were thrown at me. A lot of what I learned e hard way is presented very clearly in this book - along with some additional information I'm sure I'll need in the near future. Do yourself a favor and learn about it before you need to apply it.

You see, a lot of us know the basics - "A business should bring in more than it costs to run the business." But there is a lot more beyond that to help us use real data to not only run our businesses, but improve them and make them sustainable and profitable in the long term.

Knowing the key elements

Kevin Cope does a great job of explaining aspects of the business in a very understandable way, whether you've got a financial background or not. The sections include:

• Cash
• Profit
• Assets
• Growth
• People

Each of them is detailed in a way that unfolds very well - each section builds on the last, so you can better understand the relationships between these key elements of a business. He also does a great job of linking them so you can understand the interplay between these 5 elements.

Furthermore, Cope explains how to use and interpret some of the "artifacts" you'll encounter as you dig into the financials of a business, including how to read a balance sheet, how to interpret an income statement, and how to get real meaning out of financial reports.

One of the concepts I've had to learn about through hard knocks is EBITDA (Earnings Before Income Tax, Depreciation, and Amortization) which is a key indicator tracked by the private equity firm that owns my company. Cope explains this very succinctly in the book and relates it to the 5 elements, above.

Not just for managers

One of the things I love about this book is how relevant it is for anyone who wants to add value to the business they are involved in. This will add a lot of value for managers, but it will also help any individual contributor better understand how they can contribute to making the business more effective. In other words, if you want to figure out how and where you can add value to your company's success, this is a great book for you.

Cope also talks a lot about how you can use all of this information to make better decisions about your business - such as how you can make pod decisions about when to save earnings, when to reinvest them in the business, how to look after both short-term and long-term horizons for your business.

If you want to brush up on your financial acumen and learn some techniques to help you add more value to your business, grab a copy of "Seeing the Big Picture" - it's like a crash course MBA.

Business at the Speed of Now

I just finished reading "Business at the Speed of Now," by John Bernard. Wow, this is a good book.

I know of John because I worked with him on a small project about a year ago, and I saw a lot of the things he writes about first-hand.  Needless to say, when I heard he was writing a book, I could hardly wait to read it.  Now that it's available, I recommend you pick up a copy right away.

This book is designed to help you create an environment or culture within your business that aligns people for execution, then empowers people to make a difference.  There are some great stories in here comparing and contrasting "Now" cultures with much slower, more bureaucratic ones - some of those really hit the mark for me, and will stick with me.

The book also includes a number of tools to help you assess where your business's thinking is currently, as well as tools to help you take deliberate action to move toward a Now way of doing business.

According to this book, management must provide the rest of the company with 5 critical pieces of information for them to function in the now:

1. Context ("Where are we going?")
2. Accountability ("What role do I play?")
3. Skills ("What abilities must I possess?")
4. Facts ("What data must I access to make decisions?")
5. Authority ("Do I have the freedom to act without fear of reprisal?")

From my experience, #'s 4 and 5 are the hardest transition for control freak organizations.  Fear not, there are some good tips & tools in this book to help in all of these areas.

Guidance when you need it

I read the book all the way through, and it went quickly.  Going forward, I plan to use this as a reference guide to help me focus on what I believe is the "hottest fire" in whatever situation I'm experiencing.  If you scan this list, it not only helps you pinpoint specific challenges, it also guides you to the right chapters to find the help you need.

If you're anything like me, examples and stories are among the best ways to learn. Not only does John share stories he's learned through working with companies, he also uses a ficticious company known as "BearPaw" to show you how some of these ideas work in practice, as well as show you how to create a tracking and alignment system that keeps everyone in the business on the same page about what is important.

The most important thing?

Want to get something done? Use this book to create your "Breakthrough Plan."

I got a taste of this while working with John, and he tells you how to create one in this book.  A breakthrough plan keeps you focused on a specific objective and provides triggers to ensure that resources & dependencies are identified and dealt with,  This is one of the highest-leverage activities in this process, in my opinion (and it isn't as hard as you think).

My favorite part

Yes, I liked the part about Breakthrough Plans.  But I must admit, my favorite chapter in the book was Chapter 8, in which we're exposed to the "Seven-Step Problem Solving" approach.  This is a fantastic model to guide you through a data-driven process to get everyone on the same page about the problem, the desired outcomes, the approach you'll take, and how success will be measured along the way.  Of course, a big part of the formula is accountability, which is well-handled.

If you want a taste of the book, they are offering a sample chapter of Business at the Speed of Now at the author's site. If you really want to jump into the Now, you can click one of the following links to order it on Amazon in either hardcover, or Kindle formats.

What can you change - yourself or others?

Just reading a thoughtful post on Management Craft, in which Lisa Haneberg raises two points:

1. You cannot expect people to be what you aren't.

2. You cannot expect your employees to think or act like you.

Interesting to think about, eh?  How does this match up with the notion that you should surround yourself with people who are weak in your areas of strength? It aligns very well, I think.

One of the temptations I fight is trying to get people to do what I would do in a given situation when, in fact, I may be asking them to fight their nature.  If I let them use their strengths instead of mimicking mine, maybe they'll come up with something awesome that I'd never have dreamed up on my own.

It seems to me that the finesse of managers is to stick to advising and steering our employees on the "how" instead of the "what."  In other words, letting people come up with their own solutions but providing guidance on the best ways to get the idea implemented in light of politics, personalities, and preconceived notions they may have to overcome to be sucessful.

What do you think?

Listen, don't just explain.

I've run into a bunch of situations recently (both work and personal) in which two people get more and more irritated at each other.  In each of these situations, both parties believed they were "right" and both parties went to great lengths to convince the other person.

This is "human nature 101" stuff, but why is it so hard for people to turn off their "explain" gene so they can listen to what the other person is saying?  It happens to us all, so what do you do about it?

If you can't turn off the urge to talk, sometimes it's useful to bring in someone to mediate.  I've found that in most of these cases, the viewpoints are not as far apart as they seem and a few tweaks can result in a solution both people can be happy with (or at least agree to live with).

What solutions have you found to this problem?  Are you a good mediator?  Please share your secrets.

"You - call 911!"

In times of great change, as in times of crisis, leaders sometimes need to jump into "directive" mode.

That's what I realized during some chatting today with fellow managers.  You see, we were talking about how managers and leaders can be more effective in times of change and uncertainty, as part of a discussion about 'situational leadership' and we reckoned that even experienced employees often welcome specific, unambiguous direction in times of crisis.  This is sometimes difficult for managers with experienced teams, as we often think the best thing is just to stay out of their way because they'll figure it out quickly enough.  In reality, even experienced employees can stall out and panic during these times of great change.

This rang true for me, and reminded me of my first aid / emergency medical training.  In that training, they tell you that when someone is having a medical emergency, one of the worst things you can do is trust / hope that 'someone' will do the right thing.  In medical emergencies, they tell you to take charge, look at a specific person and say to them, "You - call 911!" so you don't have to leave things to chance.  In other words, give a specific person a specific thing to do so they can focus on what's required of them.

In times of organizational upheaval or uncertainty, the same principle holds true.  Rather than hope that everyone gets back to work and figures out what to do next, many people look to company leaders to jump into "take charge" mode and start giving specific instructions.  "You - go work on x, and get it done by the end of the week."  This gets people working again, gets them focused, and takes their mind off the chaos.

I've been in uncertain and rapidly changing situations quite a bit in my life, and there are a lot of changes going on in my world right now.  Maybe it's time for me to be more directive to get people focused and moving forward.  What about you?  Any of this sound familiar?  Share your thoughts, please.