If you’re like most business owners (or people for that matter), you’d like to make more money, work fewer hours and enjoy what you do – that combination is the updated version of the American dream.  However for most of us, reaching that kind of outcome requires significant changes to what we’re doing now. 

And successful change requires several things – I’m sure you’ve heard the following:

"A vision without a plan is just a dream. A plan without a vision is just drudgery. But a vision with a plan can change the world."
~ An Old Proverb

As a quick sound bite, that’s very inspirational, but it leaves a few things out.  I’m more partial to Gleicher’s Formula for Change – developed almost 40 years ago by David Gleicher and Richard Beckhard (who apparently got shortchanged in the recognition category).  Their formula was developed as a way to look at the relative ingredients required for success in organizational change, but I think it works well for change initiatives overall.

If you’re not familiar with it, here’s Gleicher’s Formula for Change:

Gleicher’s Formula        D x V x F > R

Simple right?  Actually it is fairly straightforward, but not necessarily simple to do.   Here’s what the formula means:

D = Dissatisfaction with how things are now

V = Vision of what’s possible (tangible and concrete)

F = First steps that can be taken towards achieving the vision

R = Resistance to the change (monetary, psychological, etc.)

So the idea is that the product(multiplication) of DV and F must be greater than the overall resistance to change.  So if any of the 3 components are low or close to zero, then it’s unlikely that the change will be able to overcome the resistance.

Let’s look at what this means in a little more detail.

D = Dissatisfaction with how things are now

How many times have you been in the situation where you’re trying to get something done, get a new process or system implemented, get rid of outdated tools or maybe even something like lose some weight and then it just ends up falling by the wayside.

One possibility for the failure is that the dissatisfaction for the current situation either isn’t very strong or doesn’t really exist.

This happens a lot in corporate environments where there’s a ‘company’ mandate to get something done, but there’s never an explanation for why the status quo is a problem…in short, there’s not a pressing need for the change to occur and eventually the initiative will either die a quiet death or get escalated with more urgency.

This also comes into play if you’re trying to sell a solution to a customer.  You know your product is better, you know and can communicate the long term benefits and you know and can communicate exactly how they could implement your solution.  However, if it turns out the prospects really don’t mind the current situation, you are never going to close the sale.  This is exactly what’s covered in Spin Selling (a great sales book by Neil Rackham).

V = Vision of what’s possible (concrete and tangible)

When  you’re trying to change, you are changing to something, but unless you can paint an extremely clear picture of an end result that everyone can understand and buy into, you will not have support and more than likely the initiative will fail.

A detailed vision that people can believe is important is so that you have everyone that’s impacted pulling in the same direction.  If everyone is clear on what the outcome is, then they can start actively finding better ways to solve problems to get there. 

It’s hard to get excited or make tangible progress towards a goal that is fuzzy.  A goal of ‘Make More Money’ might be exciting, but it’s not specific and because it’s not specific it’s not credible.  Does it mean make an extra $10 per week or $10,000 per week?  My commitment level would be different for those two scenarios and non-existent without some clarity.

Finally, without a compelling vision (detailed or not) you aren’t giving anyone a reason to take action.  You might be in pain and you might know what steps you can take for action, but without having a destination, it will be very easy to get off course and lose your way.  This is like the really smart person that hates their job, but they don’t really know what they want to do…so they stay in a job they hate because it’s not possible to overcome the resistance to changing without a viable vision of where they’re going!

F = First steps that can be taken towards achieving the vision

This is where a lot of change initiatives get bogged down.  You’re dissatisfied with what you’ve got going on, you are excited about a clear and tangible vision for the future, but you have no idea how to make that vision happen.

Everyone knows someone that would like to lose weight.  The problem most run into is that it’s not clear how to actually make that happen.  They see success stories so they know it can be done, but without having a clear idea of how to start (one that they believe will actually work) the whole process is stuck before it gets started.

First steps doesn’t mean you have to have an explicit map for the entire effort, but you need to take action that makes sense and moves the effort forward (towards the vision).

R = Resistance to the Change

Resistance really depends on what you’re trying to do.  At an individual level, the resistance to breaking habits can be extremely difficult  Exercising, smoking, drinking, eating are primarily driven by habits (with some substance abuse issues in there as well).

At more of an organizational level, there is still individual resistance but there’s also organizational resistance.  People will ask…What’s in it for me?  Maybe a change is good for an organization over all, but if it makes the job harder for the Sales department, it’s likely they’re resistance will be high.  They will need to feel the dissatisfaction and appreciate the vision for themselves to overcome that resistance.

C = Coaching…how changes get done!

Coaching is all about helping people and organizations change.  A coach will help you clarify and communicate the dissatisfaction.  A coach will help you create a compelling and believable vision and a coach will help you figure out (and take) those important first steps towards a successful change.

It’s certainly possible to make big changes in your business on your own, make more money, work less hours, etc. but you’re more likely to succeed and succeed more quickly…and have more fun if you’re working with a coach.  I happen to know a coach that would be happy to talk about the changes  you’d like to see in your business…!     Give me a call and we’ll talk – I’d love to hear your thoughts on change in the comments below.

Shawn Kinkade  Kansas City Business Coach

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Photo by hrtmnstrfr

You (and your business) are really good at something.

Maybe it’s a tangible skill related to how you create or deliver your product or service.  Maybe it’s an intangible soft skill like active listening or customer follow-up.

Whatever it is, it’s one of only a few things that really makes you different than your competition…but if you’re like a lot of business owners, you don’t play up that strength when you tell people what you do.

Southwest Airlines is a great example of a business that plays up their strengths.  They’ve built their business and gone to great lengths to tell people they are the Low Cost airline and the On Time airline – in fact these are key drivers that they consistently use to manage their business. 

They’re so effective at being the low cost airline, that I rarely even check alternatives if I’m looking for a flight – wouldn’t you like to put your business into a category without real competition!  That’s what playing to your strengths can do.

What’s your strength?

You probably have several of them, but what really makes you stand out…what are the 2 or 3 differentiators that your competition has trouble matching?  What aspect of what you do is different or better than most of the rest of your industry?

Are you the hairdresser that listens and does what the client wants rather than pushing her own style, that specializes in curly and difficult hair?

Are you the marketing writer that brings big time Ad Agency experience with a 1 on 1 personal touch?  That excels at writing for the web?

If you’re having trouble coming up with something, call a few of your best customers and ask them what makes you stand out – why did they choose to go with you?

If you still can’t figure it out or if you don’t really like what you’ve got, maybe it’s time to consciously create some differentiators.  What do you want to be known for?  What are you willing to commit to that goes above and beyond expectations?

What do you do with your strength?

You should pick out 2 or 3 key strengths – if you’ve really thought it through, there really shouldn’t be a competitor that shares all of your strengths.

Now here’s the important part – you know what your strengths are or what you want them to be going forward.  Now you need to start building your marketing message around those strengths, those things that really make you different. 

Prospects need to understand what makes you stand out (and it shouldn’t be price unless you’re Wal-Mart).  To avoid just being one in the crowd, you’ve got to play up your strength.

People that know you want a way to refer you that’s different – let them know what it is that you’re especially good at.  I can refer my friend that does credit card processing, or I can refer my friend that does an audit of your payment processes and find the most effective credit card processing for your business…see the difference?

Start thinking today about what really makes you different and start incorporating that into all of your marketing communications.  Start playing to your strengths.

What’s different about you?  Share your thoughts here, I’d love to hear them.

Shawn Kinkade  Kansas City Business Coach

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In the past, if a major news organization or television show didn’t make a topic, an event or a person a priority story – more than likely you wouldn’t know anything about it.

Today, for virtually no cost, almost anyone in the modern world can put a story into the reach of millions of viewers…immediately.  Sometimes that has shocking implications if it’s a video of a terrible shooting in Oakland or a miraculous plane landing in the Hudson. 

But not everything on YouTube is shocking or horrifying.  It also allows a platform for truly inspirational stories that many people might not have seen a couple of years ago (or seen at all 20 years ago).

Attached below is one of those stories – this is a 5:00 minute video that will move you and whenever you’re feeling defeated, I would suggest firing this back up as a reminder that you can get back up and the important thing isn’t how you started or if you struggled, it’s how you finish!

If the video above doesn’t work, use this link – Get Back Up

Shawn Kinkade  Kansas City Business CoachSimilar Posts:

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Buy low, sell high!                  Use a consistent look and feel for marketing!

Sell benefits not features!            Keep in touch with existing customers!

It costs 6x as much to get new customers as it does to keep old ones!

Know your target market!       Include a clear ‘Call To Action’!

People generally buy from people that they Know, Like and Trust!

Most business owners I know are really smart people – they’ve read a lot of books, they’re likely to have a business degree or even an MBA.  In general, people know what they’re supposed to do when it comes to marketing their business.  There aren’t a whole lot of new ‘silver bullets’ that they haven’t heard about.

But when push comes to shove and it’s been another long day and you’re not selling nearly as much stuff as you think you should be selling, it can be hard to shake things up and leverage all of the stuff you know.  Sometimes you need a different perspective!

Momentum is great – until it’s gone!

The first issue that most business owners face is that it’s really difficult to change – especially after you’ve gotten established and you’ve had a marketing campaign that’s worked in the past.

Maybe you went to a lot of effort when you were first launching your business (or a product).  You developed a thorough marketing plan, clearly identified the target market you were going after and tested different messages until you came up with something that worked.

Then you stuck like glue to that formula and moved on to fighting fires somewhere else in the business.  Time passes and gradually your marketing gets old.  Maybe a competitor started copying you and diluted the message, maybe the marketplace changed and your message didn’t.  Maybe your prospects just got tired of seeing the same thing from you and moved on.

You would totally buy your product!

The second big issue is that you are too close to the problem (and you know everything).  You know why your product is great – you also know why people should buy it.  You’d buy it and it should be perfectly obvious to everyone else what a great deal it is.

However…you’re not your customer (probably not really anything like them at all) and because you know so much about your product, it’s next to impossible for you to step into your target’s shoes.  Unless you really make an effort, it’s very difficult to step into your customer’s shoes and figure out why they buy (or don’t buy).

Time to try something different

The good news is that because you’re really smart and you do know a lot about marketing and your product, there are lots of opportunities for a turn around…if you’re open to some different ideas and perspectives.

Here are some suggestions to think about:

1.  Go to some training (I happen to be doing a marketing workshop in a couple of weeks – I’m just sayin’).

2.  Build a regular marketing review into your schedule – depending on your product, that could be quarterly or maybe longer, but you should review your Return On Investment regularly and create some totally new campaign ideas a couple of times a year.  Maybe focus on a different product or a totally different angle.

3.  Find somebody to talk to (and more importantly listen to) about your marketing efforts.  Get together with friends, a Peer Group Advisory Board, an industry group – somebody that can give you a different perspective and candid feedback.

4.  Keep an open mind and a positive outlook.  Yes you know everything and you know that something didn’t work 2 years ago, but that doesn’t mean that a similar strategy won’t work now.

Marketing can be really challenging, but it can also be a lot of fun.  Maybe it’s time to shake some things up and try something different.  What do you think might work for your marketing?  Share your thoughts here.

Shawn Kinkade  Kansas City Business Coach

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We’re hearing a lot about the incoming government’s plan for job creation.  From a macro economic perspective, jobs are the foundation that has to be in place for all the other stuff to matter.  (And small businesses account for the lion’s share of jobs, so small business relief should be front and center).  Unfortunately, it’s a really complex issue and there aren’t any easy answers.

Along those lines, it’s always good to learn a new perspective – I was having a discussion last night and picked up on a couple of issues with some of the job creation ideas that are being proposed that I hadn’t considered, especially around the idea of tax credits to the business owner for new hires.

On the surface, if the idea is to encourage people to create more jobs, then paying them as a reward for every new job created sounds like a good idea.  There would be issues around how it’s managed, what does a ‘new’ job actually look like, etc., but the spirit of the idea makes sense.

However…and this is where the new perspective for me came in, there are at least a couple of major flaws in the philosophy.

Rewarding new growth – punishing stable existing business

The first issue is that this approach could unfairly impact business owners that have done well and have reached a more mature point in their business.  It opens the door for a competitor to be able to undercut them because of the reduced cost in wages.

Say I’ve got a roadside widget stand that is doing fine and has employed 20 people for the last 3 years.  My largest single cost component is wages for the 20 employees.  The legislation passes for tax credits for new hires, but the underlying economy hasn’t really changed (it’s probably worse due to the recession) so despite the incentive I end up only hiring 1 new employee for a very moderate benefit.

However, right after the legislation passes – Joe’s widget shop opens up next door.  Joe is starting from scratch, he’s got a very similar and competitive product and he’s hiring 20 people – and getting credits for 20 people.

At an estimated benefit of $3000 – $4000 per new hire, my costs drop by $3000, but Joe is able to reduce his costs by $60,000, putting Joe in a position to undercut my prices or do some serious advertising during this year.  Either way, it will make for an unbalanced challenge to my widget stand that could cause me a lot of problems.

I’m all for competition, but it is important to keep things on an even keel.

Rewarding questionable behavior

The other thing that came up in the discussion was speculation that the hiring tax credit proposal was potentially already driving some marketplace behavior, specifically some layoffs going on now.

If I’m fairly sure that I will get a credit for hiring people in a month or two, wouldn’t I be better off to lay off a bunch of people now, or at least right before the legislation goes through so I could then hire them back to take advantage of the credit?

It would be a hassle, but it’s potentially a viable strategy that will be difficult to stop and certainly doesn’t create any real economic benefits – except maybe to the business owner for exploiting loopholes and impacting employees.

So what should be done?

I don’t have a great answer to this.  There’s a good write-up in the Baltimore Sun from a few days ago that addresses a few ideas – making it easier for small business owners to get access to capital and giving them tax relief, both make a lot of sense.  Make it generally more profitable to own a small business and put more money into the hands of those business owners that are taking the risks and pushing the dream.

I also think that the right kinds of infrastructure development on long term things that the public will really benefit from could be a boon to business owners – potentially directly if they have businesses that support that kind of work, or even indirectly just by getting more money into play in the economy and getting people to spend more.

It’s a tough situation, with a lot of moving parts and the last thing we can do is sit on our hands and hope the problems go away.  President-elect Obama has made it clear he’s going to take action – and any action will be better than doing nothing, but here’s to hoping that he’ll be able to find at least a few things that will really make a long term difference.

What ideas do you have on how to increase small business hiring?  Share them here – I’d love to hear your thoughts.

Shawn Kinkade  Kansas City Small Business Coach

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