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When to Fire an Employee: A Business Coach’s Guide for Small Businesses

As a business coach, one of the things that stresses my clients out the most is making the decision to fire an employee. The impact extends beyond the individual to your entire team and can affect your business’s performance and culture. However, knowing when it’s time to let an employee go is crucial for maintaining a healthy and productive work environment.

This guide will help you identify key situations where firing an employee might be necessary, drawing from our practical experiences of coaching 1,400 businesses globally, from Minnesota USA to Birmingham, UK and a few places in between1

1. Consistent Underperformance

In small businesses, every employee’s contribution is crucial. When an employee consistently underperforms, despite clear feedback, coaching, and support, it may be time to consider termination. For example, consider a Minneapolis based DEI consultancy firm where a consultant repeatedly fails to deliver on client expectations, resulting in negative feedback and lost contracts. Despite additional training and support, if there’s no improvement, retaining this employee could harm your firm’s reputation and client relationships.

Kaizen Tip: Always document your performance improvement efforts. This not only tracks progress but also ensures you have a clear record if termination becomes necessary.

2. Violation of Company Policies

Small businesses often operate on trust and a strong sense of integrity, making it critical to address any policy violations swiftly. Imagine a New York based financial advisory firm where an advisor breaches client confidentiality by sharing sensitive financial information. Such a violation could have severe legal and reputational consequences, necessitating immediate termination to protect the firm’s integrity and client trust.

Kaizen Tip: Ensure that your company policies are clearly communicated and understood by all employees. Regularly review these policies with your team to reinforce their importance.

3. Negative Impact on Team Morale

In small teams, one person’s negativity can quickly affect the entire group. Consider a Birmingham based law firm where a senior associate constantly undermines colleagues, creating a hostile work environment. This behavior can lead to decreased morale, increased stress, and even the loss of other valuable team members. If attempts to address these issues through mediation fail, it might be necessary to let the individual go to maintain a positive and productive work environment.

Kaizen Tip: Conduct regular one-on-one meetings and team check-ins to stay attuned to the team’s dynamics and address issues before they escalate.

4. Lack of Alignment with Company Values

For small businesses, aligning with company values is essential to maintaining a cohesive culture. Suppose you own a law firm that prides itself on inclusivity and respect, but you have an employee who regularly dismisses these values during client engagements. This misalignment can damage both your team’s cohesion and your company’s reputation. In such cases, termination may be necessary to uphold your core values and ensure your team remains aligned.

Kaizen Tip: During the hiring process, emphasize your company’s values and assess candidates on how well they align with those values. This proactive approach can help prevent misalignments later. For more hiring tips read our blog on how to create a winning team here.

5. Inability to Adapt to Change

In a small business, the ability to adapt to change is critical. Imagine you’re a tech startup in Edina, and you’ve recently implemented new software to improve efficiency. If an employee is unable or unwilling to learn the new system, despite training and support, their resistance can hinder the progress of your entire team. In such cases, it might be time to part ways.

Kaizen Tip: Foster a culture of continuous learning by offering regular training opportunities. Encouraging adaptability from the outset can help mitigate resistance to change.

Conclusion: Firing as a Last Resort

Firing an employee should always be the last resort after exhausting other options like coaching, training, and reassignment. When termination becomes necessary, it’s crucial to handle the process with professionalism and empathy, ensuring that the decision is well-documented and justified. 

The goal is to build a team that is aligned, motivated, and capable of driving your business forward. See our guide on creating a high performing team here. By making thoughtful decisions, even when they’re tough, you can maintain a positive workplace culture and protect the future of your small business.

Elevate Your Business with Expert Coaching

Looking for tailored advice on managing your small business? Business coaching can equip you with the tools and strategies to make informed decisions, including when to let go of an employee. Whether you’re in Minnesota or elsewhere, I’m here to help you build a thriving, resilient business. Contact me today to learn how business coaching can take your business to the next level.

The Recent Microsoft Windows Outage: A Wake-Up Call

In today's digital age, small businesses rely heavily on their IT infrastructure to operate smoothly and efficiently. From managing customer relationships to processing transactions, the backbone of many business operations is a robust and reliable IT system. However, what happens when that system fails? Recent events have underscored the importance of having a solid contingency plan in place for IT disruptions.

A global outage recently impacted Microsoft Windows PCs, causing significant disruptions across various industries. This incident, triggered by an update from a cybersecurity firm, led to widespread system crashes and operational downtime. While the details of this specific event are still unfolding, it serves as a stark reminder of the vulnerabilities inherent in our IT systems

IT contingency planning involves preparing for potential IT disruptions by developing strategies and solutions to minimize the impact on business operations. It's about being proactive, not reactive, ensuring that your business can continue to function even when faced with technical challenges.

Why Small Businesses Need IT Contingency Plans

1. Minimize Downtime: An effective contingency plan can significantly reduce the downtime your business experiences during an IT disruption. By having backup systems and procedures in place, you can maintain essential operations and continue to serve your customers.

2. Protect Data: Data is one of the most valuable assets for any business. Contingency planning ensures that your data is regularly backed up and can be quickly restored in the event of a system failure, preventing data loss and protecting your business from potential legal and financial repercussions.

3. Maintain Customer Trust: Customers expect reliability. An IT disruption that affects your ability to deliver services can damage your reputation and erode customer trust. A well-executed contingency plan demonstrates your commitment to reliability and customer satisfaction.

Key Components of an IT Contingency Plan

1. Risk Assessment: Identify the potential risks to your IT systems, including hardware failures, cyberattacks, software bugs, and natural disasters. Understanding these risks is the first step in developing effective mitigation strategies.

2. Backup and Recovery: Implement regular data backups and ensure that your recovery procedures are tested and effective. Cloud-based solutions can provide an additional layer of security and accessibility.

3. Redundant Systems: Invest in redundant systems and infrastructure to ensure that critical operations can continue even if one system fails. This might include secondary servers, alternative communication channels, and backup power supplies.

4. Incident Response Plan: Develop a clear incident response plan that outlines the steps to take during an IT disruption. This plan should include communication protocols, roles and responsibilities, and procedures for restoring normal operations.

5. Training and Awareness: Ensure that all employees are aware of the contingency plan and are trained on their roles within it. Regular drills and updates can help keep the plan current and effective.

Conclusion

The recent Microsoft Windows outage is a powerful reminder of the importance of IT contingency planning. For small businesses, the ability to quickly and effectively respond to IT disruptions can mean the difference between minimal impact and significant operational and financial loss. By proactively developing and maintaining a robust IT contingency plan, you can protect your business, your data, and your reputation, ensuring long-term resilience and success.

As a business coach, I encourage all small business owners to prioritize IT contingency planning as a critical component of their overall business strategy. Investing time and resources into this area can provide peace of mind and safeguard your business against the inevitable uncertainties of the digital world.

What to Do When a Prospect Ghosts You: Effective Strategies to Stay Connected

We've all been there. You have an amazing conversation with a prospect, they're interested in your services, and you know you can genuinely help them. The excitement is palpable. But then, silence. Days turn into weeks, and despite your follow-ups, you never hear from them again. It's frustrating, annoying, and can leave you questioning what went wrong.

Here are some strategies you can implement to prevent prospects from ghosting you and keep the momentum going:

1. Put an Expiration Date on Proposals

Creating a sense of urgency is crucial. When you send a proposal, include an expiration date. This not only sets clear expectations but also encourages your prospect to make a decision within a specified timeframe. For example, you could state, "This proposal is valid for 14 days from the date of receipt." This approach leverages the principle of scarcity, subtly nudging your prospect to act before the opportunity slips away.

2. Schedule a Follow-Up Meeting

Never end a promising conversation without scheduling the next step. Before you wrap up, set a specific date and time for a follow-up meeting. This could be a simple check-in to address any additional questions or concerns they might have. By having a follow-up meeting on the calendar, you keep the dialogue open and demonstrate your commitment to helping them. It also gives your prospect a structured timeline, reducing the chances of them fading away.

3. Send a Video Message

Relying solely on emails and text messages for follow-ups can be ineffective. These methods are easy to overlook or ignore. Instead, try sending a personalized video message. A video allows you to convey your enthusiasm, recap key points from your conversation, and remind them of the value you bring. It's more engaging and personal, making it harder for your prospect to disregard. Plus, it sets you apart from competitors who stick to traditional communication methods.

4. Send a Break-Up Message

If all else fails and you’ve tried multiple follow-ups without success, it might be time for a break-up message. This is a final attempt to elicit a response by letting them know you’re about to close their file. For instance, you could write, "I haven’t heard back from you and will assume you’ve decided to move in a different direction. Unless I hear otherwise, I’ll close your file in the next 24 hours." This approach often prompts a reaction because it creates a fear of loss. They may not want to miss out on your services and could respond to keep the conversation alive.

Conclusion

Ghosting can be disheartening, but with these strategies, you can minimize its occurrence and keep the lines of communication open with your prospects. By creating urgency with expiration dates, scheduling follow-up meetings, using engaging follow-up methods like video messages, and, if necessary, sending a break-up message, you can increase your chances of turning interested prospects into satisfied clients. Remember, persistence and creativity in your follow-up approach can make all the difference.

Mastering Communication Skills: A Guide for Entrepreneurs

Mastering Communication Skills: A Guide for Entrepreneurs

I recently had the pleasure of hosting a workshop at Breakthrough Fitness in North Minneapolis on one of the most crucial yet often overlooked aspects of entrepreneurship: non-verbal communication. The event was a fantastic opportunity to connect with fellow entrepreneurs and dive deep into strategies that can transform the way we present ourselves and our businesses.

The Importance of Communication Skills for Entrepreneurs

As entrepreneurs, developing strong communication skills is vital for success. Whether we're networking at events, pitching to investors, or creating social media content, the way we communicate and present ourselves has a significant impact on our business outcomes. I have included the main topics that we covered for those of you who were unable to join us. 

Embrace Positive Internal Chatter 

As a business coach, I often hear clients express that nerves and anxiety hinder their communication and presentations. To overcome this, start by changing your internal chatter. Instead of thinking, "I'm nervous and might mess up," or “I hate public speaking,”  tell yourself, "This is my opportunity to shine and showcase my business." Our thoughts significantly impact our outcomes. Believing in your capabilities and focusing on what makes your business unique will make your communication more engaging and confident.

Understanding the Impact of Communication

Research indicates that only 7% of our communication impact comes from the words we use. The remaining 93% is split between vocal tone (38%) and body language (55%). This highlights the importance of not just focusing on what we say, but how we say it.

Vocal Tone

Your vocal tone can make a significant difference in how your message is received. Here are a few practical tips to vary your vocal tones effectively. (It was fun watching people practice this at our event!)

Vary Your Volume:Use louder tones for emphasis on important points and softer tones to draw in your audience’s attention.

Adjust Your Pace: Speed up your speech to convey excitement and urgency, and slow down to emphasize key points and allow your audience to absorb the information.

Change Your Pitch: Higher pitches can express enthusiasm or questions, while lower pitches can convey seriousness and authority.

Incorporate Pauses: Strategic pauses can give your audience time to think and reflect, and also help emphasize the importance of what you just said.

Body Language

Body language includes facial expressions, gestures, and overall body movements that complement your verbal message. Here are some tips to enhance your body language:

Use Hand Gestures: Hand movements can help emphasize your points and keep your audience engaged. For example, counting on your fingers when listing points or using open palms to show honesty and openness.

Maintain Eye Contact: Making eye contact builds trust and rapport with your audience. Try to make eye contact with different individuals around the room to make everyone feel included.

Facial Expressions: Smile when appropriate to convey warmth and approachability. Use your eyebrows and other facial movements to express emotions and reactions.

Posture: Stand tall and avoid slouching to convey confidence and authority. Lean slightly forward to show interest and engagement with your audience.

Practical Exercises

During the workshop, we practiced changing our vocal tones and body language to enhance our communication. You can watch the replay of this Instagram Live session to see these techniques in action and learn how to apply them in your presentations:

Watch the Replay

Final Thoughts

Communication skills are one of the most important skills you can develop to succeed at business. Remember to spend more time focusing on how you are going to say it, not just what you are going to say. By emphasizing your vocal tone and body language, you'll be able to deliver your message more effectively and make a lasting impression on your audience.

Using client Case studies to sell

Case studies are real-life success stories from your clients that demonstrate the tangible benefits of your product or service. When prospects see the success others have had, it resonates with them on a deeper level, fostering trust and encouraging them to take the next step with your business. When done correctly, case studies are a great tool to drive up sales in your business.

Here's how you can create compelling case studies to drive more sales:

1. Highlight the Client's Problem

Start by identifying the specific problem your client was facing before they discovered your solution. Talk to the frustrations and impact this was having on them. This sets the stage for the narrative and helps potential customers relate to the scenario.

2. Showcase How Your Solution Helped

Detail how your product or service addressed and solved the client's problem. Be specific about the features or aspects of your solution that made a difference. This is where you highlight the unique value your business provides.

3. Explain the Results Achieved

Speak to the specific outcome that was achieved. The more details the better! Quantify the results whenever possible. Did your client see a 50% increase in sales? A 20% increase in muscle mass?  30% reduction in operational costs? Concrete numbers and data make your case study more compelling and credible.

Display Your Case Studies 

Maximize the visibility of your case studies by featuring them on your website, social media platforms, and other marketing materials. The more places prospects encounter these success stories, the more likely they are to be convinced of your value. If possible, include the client's name along with the picture. This adds a personal connection and brings their story to life.

Remember, real stories sell. By showcasing the success of your existing customers, you not only build credibility but also inspire confidence in potential customers. Harness the power of your existing customers to attract new ones by highlighting the real impact of your solutions and see the difference it makes in your sales.

How to Make Virtual Meetings Engaging: 3 Effective Tips for Better Connection and Participation

Virtual meetings have gained a reputation for being boring, not as engaging as in person meetings and a waste of time! However, it's not usually the virtual or in-person setting that makes meetings less engaging; it's usually the way the meeting is run. 

Here are three tips to make your virtual meetings feel more connected and engaging, along with practical instructions and tools to implement these strategies.

1. Be at the front of the ‘room’

To make your virtual meetings more engaging, position yourself at the front of the room virtually by appearing directly in your slides. This approach helps your audience focus on you rather than just seeing you as a small box in the corner. By being front and center, you maintain their attention and enhance personal connection.


How to Appear in Your Slides Using Keynote:

1. Click on the slide where you want to appear.
2. In the top menu, select Insert > Choose to add an image or video of yourself.
3. Resize and position the image or video as desired.

How to Appear in Your Slides Using PowerPoint:

1.Click on the slide where you want to appear.
2.In the top menu, go to Insert > Pictures or Insert > Video to add an image or video of yourself.
3.Resize and position the image or video as needed.

2. Use Interactive Tools

Interactive tools are a great way to encourage participation during virtual meetings. They increase engagement and ensure everyone's voice is heard, making the meeting more dynamic and inclusive.


Examples of Interactive Tools:

Mentimeter: Mentimeter allows you to create live polls, word clouds, Q&As, and quizzes. Tips for incorporating Mentimeter into your meetings:

• Use live polls to gauge participant opinions or knowledge on a topic.
• Create word clouds to visualize participant responses to open-ended questions.
• Utilize Q&A sessions to address participant questions in real-time.

Slido: Slido is another excellent tool for live polling, Q&As, and brainstorming. Tips for incorporating Slido into your meetings:

• Conduct live polls to gather instant feedback on key discussion points.
• Facilitate Q&A sessions to ensure all participant questions are addressed.
• Use brainstorming sessions to generate and organize participant ideas collaboratively.

3. Leverage the Chat Box

The chat box in virtual meeting platforms is an invaluable tool for getting quick responses from the group and gauging the energy in the room. Real-time feedback  keeps your audience engaged, helps you adjust your approach on the fly and keeps the meeting lively and responsive to participants' needs.

Tips for Using the Chat Box Effectively:

• Ask Open-Ended Questions: Encourage participants to share their thoughts and ideas by asking open-ended questions.
• Quick Polls: Use the chat box to conduct quick, informal polls by asking participants to type "yes" or "no" in response to a question.
• Acknowledge Contributions: Regularly acknowledge and respond to contributions in the chat box to show participants that their input is valued.

By implementing these tips, you can transform your virtual meetings from mundane to engaging, fostering a more connected and interactive environment.

3 Proven Strategies to Make Your Business Stand Out and Wow Customers

Creating an X factor that sets your business apart is essential for attracting and retaining customers. By focusing on exceeding customer expectations, you can transform ordinary interactions into extraordinary experiences. Here are three proven strategies to make your business stand out and wow your customers.

1. Special Touchpoints for WOW Moments

Incorporate Special Touchpoints: Strategically build special touchpoints into the customer journey to create ‘WOW’ moments that leave a lasting positive impression. For example, the Ritz-Carlton empowers its employees to create unique, memorable experiences for guests. When a child forgets their stuffed animal, a Ritz-Carlton employee might ship it back along with extra goodies and a photo album documenting the toy's 'extended vacation.' These magical touches make customers feel valued and special.

Kaizens Practical Steps for Success for your Business:

• Identify key points in the customer journey where you can add a special touch.
• Train your employees to recognize and act on opportunities to surprise and delight customers.
• Regularly brainstorm new ideas to keep your WOW moments fresh and impactful.

2. Go Above and Beyond to Rectify Mistakes

Exceed Expectations in Rectifying Mistakes: When mistakes happen, going above and beyond to rectify them can turn a negative experience into a positive one. Companies like Zappos are known for their exceptional customer service. If a customer receives the wrong shoes, Zappos not only sends the correct pair overnight but often lets the customer keep the original pair as a goodwill gesture. This proactive approach demonstrates a strong commitment to customer satisfaction.

Kaizens Practical Steps for Success:

• Develop a clear policy for handling customer complaints and mistakes.
• Empower your employees to take proactive steps to rectify issues and exceed customer expectations.
• Follow up with customers after resolving an issue to ensure they are satisfied with the outcome.

3. Build a Reputation Beyond Your Core Offering

Establish a Strong Reputation: Building a reputation based on something other than your core offering can help differentiate your business and attract customers who value those additional elements. TOMS, for example, is known not just for their stylish shoes but also for their commitment to social good. With their One for One program, TOMS donates a pair of shoes to someone in need for every pair purchased. This mission attracts customers who want their purchases to make a difference, creating a loyal and passionate customer base.

Kaizens Practical Steps for Success:

• Identify a cause or value that aligns with your brand and resonates with your customers.
• Develop programs or initiatives that support this cause and integrate them into your business operations.
• Communicate your commitment to this cause through your marketing and customer interactions.

Conclusion

Creating an X factor for your business involves building special touchpoints to wow customers, going above and beyond to rectify mistakes, and building a reputation on something beyond your core offering. These strategies enhance customer satisfaction and loyalty while differentiating your brand in a competitive market.

By implementing these proven strategies, you can make your business stand out, attract new customers, and retain existing ones, ultimately driving your business success. Start today by identifying opportunities to delight your customers, handle mistakes with exceptional service, and build a reputation that resonates with your values and mission.

3 Ideas to Run an Effective Team Meeting

Team meetings are a waste of time, don’t achieve anything, and can be downright boring. But they shouldn’t be like that! If this sounds familiar then don't worry!. Here are three tips to transform your team meetings into productive and engaging sessions.

1. Set Clear Objectives and Agendas

One of the most important steps to running an effective team meeting is setting clear objectives and creating a detailed agenda. This ensures that everyone knows the purpose of the meeting and what to expect.

Define Objectives: Before the meeting, identify the key objectives and desired outcomes. Communicate these to all participants beforehand. This keeps everyone aligned and focused on the same goals.

Create a Detailed Agenda: Outline the main topics, allocate specific time slots for each, and assign responsibility for leading each section. Distribute the agenda in advance so everyone can prepare accordingly and stick to the agenda!

Implementation Tips:

• Make sure all team members have the meeting blocked out in their schedule.
• Clearly communicate the focus of the meeting.
• Establish a culture of no waffling, no blaming, and backing up claims with data.

2. Encourage Active Participation

Fostering an environment where all team members feel comfortable contributing and sharing their ideas is essential for an effective meeting.

Rotate Meeting Roles: Assign different roles such as facilitator, timekeeper, and note-taker to various team members. This keeps everyone engaged and distributes responsibility. Rotating roles also gives team members a chance to develop new skills.

Use Interactive Tools: Incorporate interactive elements such as polls, brainstorming sessions, or breakout groups to encourage participation. Tools like whiteboards or digital collaboration platforms can help visualize ideas and keep everyone engaged.

Invite Input: Make it a practice to actively invite input from quieter team members. Direct questions to specific individuals to ensure diverse perspectives are heard and considered.

Implementation Tips:

• Rotate meeting roles to keep everyone engaged.
• Use interactive tools and methods to foster participation.
• Actively invite input from all team members, especially quieter ones.

3. Follow-Up and Accountability

Ensuring that meeting outcomes are implemented and progress is tracked is critical for maintaining momentum and achieving your goals.

Document Key Points: Record key decisions, action items, and deadlines during the meeting. Use a shared document or project management tool that everyone can access.

Assign Responsibilities: Clearly assign tasks and responsibilities to specific team members. Make sure everyone knows who is accountable for each action item.

Regular Check-Ins: Schedule follow-up meetings or check-ins to review progress on action items. This keeps the momentum going and ensures that commitments are met.

Implementation Tips:

• Document key decisions and action items.
• Assign clear responsibilities and deadlines.
• Schedule regular check-ins to track progress.

Conclusion

By setting clear objectives and agendas, encouraging active participation, and ensuring follow-up and accountability, you can transform your team meetings into productive, engaging, and impactful sessions that drive your business forward.

Implement these strategies in your next team meeting and watch how your team becomes more aligned, motivated, and effective. If you found these tips helpful, consider applying them to your business strategy. For more insights and personalized coaching, feel free to reach out!

How is the CoronaVirus Going to Affect Businesses in UAE?

Let's get the bad news out of the way first.


Yes, there may be another recession coming.


But a recession, in and of itself, isn't a bad thing. Think of it like the economy going on a diet.

1 - Remove the Excess

Diets focus on cutting excess, not the necessities. There are two kinds of excess in the business world. The first are luxuries, such as fancy events, entertainment and excessive marketing. Even if you run an events or marketing firm, the question you will need to consider is: how do we make ourselves indispensable to our clients? The second excess are businesses that are unethical, fly-by-night, cowboy types. These are the first to shut down during a recession, and it's their exits that typically make the number of "failed" businesses so high. Don't let it scare you...these guys were never going to last anyway.

2 - Temporary

Diets are temporary. They often don't last forever, and neither do recessions. Even if it isn't the best or easiest time, focus on the value you're delivering. In every industry, some businesses will make it through. You need to focus on what will carry you over to the other side and yes, managing cash flow is crucial. Speak to your accountant about contingencies, and temporary measures you can implement to relieve some of the pressure on the business. 

3 - Easier with Others

Diets are easier to stick to when you have a support network around you. In your business - who are the people that need you to succeed? Your team members, suppliers, strategic partners, investors, and your business coach. From negotiating better payment terms to communicating openly with your team, ensure you are leaning on your network for support - we are #inittogether. 

4 - End Result is Always Better

The situation at the end of a diet is better than the situation at the start. Diets end when the body is healthier. Recessions end when the economy is healthier. Of course, it's better to maintain good health so we don't need diets, but it doesn't normally happen that way. There will always be pollutants to a healthy system, and diets and recessions will be necessary to flush them out.


Your primary focus should be on scaling your company in a way that it can weather the storms, for there will be storms. It starts with getting the basics in place, allowing you to run your business from a position of strength and control, rather than firefighting problems. Then you build the money, not just revenue but profitability and predictable cash flow. Then comes the sustainability of both...and that's all there is to it. 


To support SMEs through this tough time, the Kaizen team are running free-to-attend online events throughout April 2020, in collaboration with our partners DMCC, In5 Dubai and AstroLabs, where we’ll discuss the changing business landscape, and what steps to take to stay ahead of the curve. Get in touch if you’d like to learn more. 


Here’s to a phenomenal 2020

Four Reasons Why Employees Don't Take Ownership

If there was a poll on why businesses don’t excel, the “My employees don’t want to take ownership” option would definitely be in the top three reasons. In the hundreds of conversations I’ve had with business leaders over the last seven years, this issue has been raised almost every single time.


So what is it about employment that brings about such disinterest? Or, is it even about employment at all - maybe the leadership, peers or company culture needs to be examined? Honestly, there’s usually more than one issue at play. Here are four possible reasons why this disenchantment may occur, and some suggested ‘antidotes’:

1- An employee doesn’t want to raise his/her own bar beyond his comfort level:

When you hire, you bring someone on to do a particular set of tasks. Over the months and years of doing the same (or similar) work with the same people, a level of comfort and complacency tends to set in.


You’d like the employee to proactively improve the role, continually increase output, and increase overall efficiency…but taking the ownership of improving the task would take away from that comfort - and few people look for discomfort. In addition, once a person has shown that he can deliver, you’d reasonably expect him to live up to that standard. If someone would rather just live on cruise control, they won’t make the mistake of showing you what they’re truly capable of.


If this disappoints you, let me offer a real-world reminder: someone who is driven, proactive, smart, generates ideas and follows through on them (does this sound like you?) is much more likely to be running their own business than working for someone else. This isn’t to say that no employees will be good; rather, understand that some will need you to help them become the best version of themselves, if they want it badly enough.


The Antidote: In business, as in life, prevention is better than cure. Don’t let complacency set in - keep people engaged and motivated to act, and encourage continuous learning and training. Let them see their own potential, excite them with their career prospects, and nurture their talents. Does that mean that some will get poached by your competitors? Yes. Is that a good reason to underachieve as an organization? Well…you decide.

2- An employee is afraid of blame if her initiative fails:

A common obstacle for many initiatives is the fear of failure. This fear is normal - it’s ok to be uncomfortable with the idea that an idea may not work. This can be overcome, through support, learning and continuous effort. In some organizations, however, there is another fear associated with taking the initiative: the fear of blame. This fear is paralyzing, and stronger perhaps than any other fear. But can you imagine a world without failure? What a bleak, boring world it would be. It was failure after failure that gave us the light bulb, the telephone, and every other breakthrough invention we can’t live without today. How likely would it be for us to have these tools, if every failure was met with blame and accusation?



The Antidote: “Show me a man who has never failed, and I’ll see a man who has never attempted anything.” If you want the firm to reach new heights, it will happen at the cost of some slip-ups. The greater the fear of the blame for slip-ups, the less likely that any new steps will be taken. This doesn’t mean everyone gets free rein to waste resources, though. Identify your future stars, sit with them, listen to their ideas and discuss the requirements. The greatest weapon in their arsenal will be your belief in their abilities - help them to help you.

3- There’s no glory in the grind:

As Maslow identified in his Hierarchy of Needs, once the “basic needs” are met, a person has two psychological requirements: ‘Belonging’ and ‘Esteem’. ‘Belonging’ is to do with an individuals’ personal and social circle, and ‘Esteem’ has two parts: Prestige and Feeling of Accomplishment. In a work setting, these are achieved through awards, recognition and titles. The “What’s In It For Me?” should be addressed, not just in marketing products to prospects, but also when encouraging participation internally. There is - perhaps rightfully, in some cases - the perception that employees are not valued by organizations, and this attitude is a major issue that needs to be addressed.



The Antidote: If a team member is going out on a limb, and is willing to take the risk that it may not work, it would only be fair to give them the appropriate glory for the effort, too. There are two direct benefits to this. Firstly, if the idea works out, the appreciation should cause a huge boost in their self-esteem, their pride in their work, and their reputation in the firm. If it doesn’t work, the acknowledgement will still show that the effort is appreciated, and that the firm believes in the person - this can work wonders for long-term loyalty. Secondly, it gives a message to every other person: your performance is not going unnoticed. A ‘not-A-but-not-C-level’ team member will see that those who try being praised, and it may be all the encouragement they need to up their game. Conversely, if someone is not willing to push themselves, their lack of effort will be highlighted over time. Either way, it benefits the company in the long-run.

4- There is a culture of apathy:

On her first day on the job, the bright-eyed, energetic young lady was brimming with ideas on how to improve performance. Everywhere she looked, she saw potential gains, growth and results. She started writing a list of all her thoughts, afraid to lose them if they weren’t committed to paper. Twenty minutes and seventeen ideas later, her assigned mentor - a middle-aged, pleasant man who had been in the company forever - looked over at the excited recruit muttering to herself, and saw her list. Interrupting her train of thought, he asks: “Do you truly think nobody here has ever thought of these ideas before?” She pauses, unsure how to reply. He continues: “See Alex over there? He still has his ideas list from three years ago in his drawer somewhere. Martin, over in the corner - his ten-point plan that he made a year ago was just taken off his wall last month. And the initiatives I proposed when I first joined - let’s just say, we’re still waiting for them to be reviewed. Don’t waste your time on this. Frankly, my dear, they don’t give a damn.”

And, just like that, another one bites the dust. She glances down at the paper, tears the sheet off, and drops it - along with her enthusiasm and dreams, into the trash basket.



The Antidote: you’ll need to take a long, hard, honest look at the culture that exists in your office. Remove the rose-colored glasses, and critically examine how people behave and interact. To have a beautiful garden, you must be willing to kill the weeds - but identifying them is a whole different challenge. Have in-depth conversations with both senior and junior people, understand if a culture of apathy exists, get real answers on the why and how. Then the process of culture change - and instilling a culture of ownership - can begin. It is a long and challenging journey, but the results are multifold.

The Real Cost of Inefficiency

Businesses typically sell a product or service that the end customer needs or wants. The profitability comes when the business is able to sell for more than what it costs to produce. This is of course an overly simplified view, but the basic premise remains the same regardless of company size, offering, industry or sector.


On paper (targets, plans and forecasts) it can all look pretty straightforward. In reality, there are endless variables, a dozen processes, several departments and anywhere from tens to hundreds of people involved to reach the end result.


So, what happens when:

The predictions aren’t right

The expected timelines are exceeded

The results are inadequate

The firefighting of any mistakes made eats up valuable time and resources

And when inefficiencies creep in?


The initial profit often quickly turns into operating cost to finish the project, and I’ve lost count of how many times I’ve heard of businesses finishing a project at a loss because they were contractually bound to the client.


The commitment to finishing is applaudable…finishing at a loss is anything but. Driving up efficiency in an organisation is essential to keeping it profitable. And, let’s face it: your involvement as a manager isn’t scalable or replicable. Your watchful eye may help run a smooth operation now, but what happens when the company grows to the point where you can’t keep an eye on everything? More importantly, what happens to the business when you want to set up a second business that demands your time, want to reduce your hours, or go on holiday (and answering emails and calls while on the beach is not a holiday!)?


The Kaizen system and strategies that we use with over 700 businesses in the UAE help business owners, c-level executives and senior management teams leverage their time and do “ever more with ever less”. Reducing the time and resource wasted in firefighting, overcoming obstacles to efficiency and creating systems and structure that are scalable are some of the goals we work towards.


If you’d like to see how this can work for you, get in touch and reserve an initial free business coaching session. Most business owners and team leaders haven’t been coached before, which is why the first session is always free: to give you value first, and then see if this is something you’d like to continue.

The 5 Critical Keys to Setting Powerful KPIs

With the growing pressure on businesses, people are working 9, 10, 11-hour days – powering through lunch, typing out reports with one hand while rummaging through a Fattoush salad with the other. Team members have missed birthdays, meals and exercise to try and reach their yearly goals, and yet, is your business truly better served?

What metrics (besides revenue and profits) are you utilising to predict how well your company will do at the end of the month, quarter or year?

The Role of KPIs (Key Performance Indicators)

Key Performance Indicators (or, KPIs) are trackable metrics which show how well a business is moving toward its goals. These numbers should tell you, in one look, the state of the company, the challenges that are ongoing, and the results you can expect in a week, month or even a quarter.

Stephen Hawking, world-renowned scientist & astrophysicist said “The universe is in a state of constant motion. It either expands or it contracts.” The same dynamic nature exists in business. The trick is identifying the change early enough to capitalise or make corrections.

As SME owners seeking explosive, lucrative growth, we need to look in the mirror and ask: is this the fastest, most sustainable way to:

•          Scale revenue

•          Decrease unnecessary expenses

•          Increase the results of each member of the team

Tracking these is the common aim when setting KPIs, yet most won’t hit the mark because setting and keeping great KPIs requires immersive, consistent and thoughtful work.

And we all know ‘busyness’ is a lot easier than business.

But, here’s the benefit: Truly effective KPIs should allow you to look into your business and, at a glance, say “If I stay at this speed on the current course… here’s where my business is heading, and here’s how long it should take me to get there.”

Since every business is unique in its strategic goals and how they wish to pursue them — we’ve put down the 5 key characteristics any powerful KPI should have.

5 Characteristics of Powerful KPIs

Simplicity

KPI’s must be easy to understand.

The best way to create crystal clear objectives for your team is to try and limit yourself to a 5-7 word description of a metric.

Remember KISSS: Keep It Short, Sweet and Simple — this will make it easier for your team to digest, and encourage you to focus in on what your business really needs.

Based on Valid Data

You can’t fix what you don’t track.

Set your KPIs only on the basis of what you can accurately measure. The system of collecting valid data doesn’t need to be complicated or overly-sophisticated, it just needs to be able, reliable and especially, accurate.

Bad data can be worse than none at all — which is why it’s critical to ensure you have proper systems in place to collect valid and usable information moving forward.

Context

What do these numbers mean?

We touched on the importance of setting clear, simple objectives (that is, clarifying the ‘what’). Context clarifies the ‘why’, helping us understand what hitting these targets would actually mean for our business.

Without context for you and your team, your KPIs have no specific meaning. Especially as it relates to how these metrics play into your short + long term goals, and whether the figures in the spreadsheet tell a story of expansion or contraction for your business.

Empower Users

Achieving KPI’s will likely make the business better and richer.

But what exactly is the personal/professional benefit for the people who helped the company reach this new level of success? Beyond their basic compensation, what incentive do they have to go the extra mile?

Psychologists studies have proven that people act most powerfully in their own self-interest. Tap into this part of human psychology and use it to fuel your business’ success.

Answer the innate silent question of WIIFM ‘what’s in it for me?’ — and supercharge your team by linking their benefit and progression with that of the company.

Audit

Business is dynamic.

Every so often, it’s a good idea to look around and ensure the indicators are still pointing us in the right direction. KPI Audits with necessary tweaks can keep your KPIs relevant — guiding your company’s workflow and business decisions along a successful path.

Look up, check your target, make sure you’re still on track to hit it.

Bonus Coaching Tip on KPIs:

While too few can make you ignore key areas for growth, too many can bring confusion regarding where the team should most focus their energy. The key is balance. Every objective must have a strong, clear and unique purpose to exist.

Next Steps

If this seems like a lot (which it can be), or if you aren’t sure if you’re on the right track, let us be an extra pair of eyes. Get in touch and quote “Free KPI Review”, and we’ll arrange a quick session to go through what you’re currently tracking, what you should be tracking, and the most powerful KPIs for your business.

I guarantee it will be worth the few minutes.

Happy Planning!

4 Ways to Increase Business Profitability

Business Profitability

There are two ways to make more profit:
a) generate more revenue, and 
b) lower costs (increase margin)
 
Every other ‘strategy’ will ultimately boil down to one of these two. Either increase the total, or increase your share of it.

The latter is a series of articles on its own – and a really good reason to have a great accountant! – but the former also deserves a lot of attention, primarily because it is often approached the wrong way in most businesses.

How to Generate More Revenue

Many times, companies have a single strategy: pushing their team to make ‘more sales’. Obviously, you want to have a larger number of transactions happening, but the focus is then immediately shifted away from the two other factors that can greatly impact results: up-selling and client servicing. (For now, we’ll focus on up-selling, and we’ll revisit the client servicing in another post.)

Up-selling (which is known by multiple aliases) is getting a customer to purchase more than they had initially planned. The core focus is to increase basket value. If we can get the customer to purchase 5%, 10%, 20% more, it increases revenue without any additional investment in marketing – the customer is already there! If you doubt how useful this really is, consider this one example: for a clients’ business, the average transaction value went up by over 35%, just by implementing a structured up-selling approach. That means 35% more revenue, by implementing something in less than a week, and with no added expense.

Structured Up-Selling Approach

So, how can you increase the value of a transaction? There are a few basic things you can do straight away:

1. Create Management and Reporting Structures
2. Increase Product Awareness
3. Make the Effort
4. Systemise the Process

Of these areas, without the first – the others will have low impact.

1 ) Create Management & Reporting Structures:

The importance of management and reporting of key metrics cannot be over-stated. In fact, this one step alone will make the difference in results, even if you don’t focus on anything else. A good quote to remember: What gets measured gets improved. If the average value of each transaction is tracked, it will probably start going up, just because of the additional focus on it.

Here’s how you can set the initial benchmark:

(total value of transactions) / (total number of transactions).

It’s not the best, but it’s an average across the board. If you have multiple distinct verticals/departments and you want to do this separately for each one, that’s fine too. Once the benchmark is established, it becomes the minimum goal for each transaction. This is tracked across all sales, and one of the learning sessions in your weekly meetings (you are doing weekly meetings with some time for learning, right?) can be on up-selling KPIs and strategies.

You may be very pleasantly surprised how well this ‘simple’ step can work.

2) Increase Product Awareness

Once a lead has become a client (agreed to buy), the next area to target is increasing your wallet share. This is different to market share, and both are important to focus on.

Market share is the percentage of business in your industry that you are winning. Wallet share is the percentage of client budget that is being allocated to you (as opposed to your competitors).

Increasing wallet share is one of the goals of upselling. In addition to the management and recording of average sale values, there are certain strategies we can focus on to increase ‘basket value’.

Perhaps the first and foremost is client education. If the client does not know what she wants, or isn’t aware that you can do something else, she will not buy it from you. For example: a Company Director comes to an audit firm to get an internal audit done. She’s already convinced about the need for the audit, and that sale is completed. But before signing all the contracts and rushing to do the sale, the Partner at the audit firm asks if she has Standard Operating Procedures (SOPs) in place, that would maximise the efficiency in the company. She knew about it, and was going to find someone to do it…any chance the audit firm has an idea? As it turns out, the firm can do it for her, and once the audit is completed and areas to improve identified, the audit firm can create SOPs with a priority on the areas of weakness. The client is relieved that this can be taken care of, and the firm increases the value of the sale by 50%.

3) Make the Effort

By ensuring the client knows the range of offerings available, it becomes a lot easier to increase the basket size. Related to this is the second area of focus: making the effort. This is a common shortfall on the sales side, and has got to do more with ‘not doing’ as opposed to ‘can’t do’. I know what my product/service range is, and I know the typical needs of my client. All I need to do is ask my industry-equivalent of the famous question: “Would you like fries with that?” That small, innocent question (and the related ones around adding a drink and/or upsizing) has brought McDonalds over $28 million per year!

4) Systemise the Process

One of the simplest ways to implement this in the team is to have scripts and/or checklists in place. When a salesperson has finalised a sale, and before leaving, he can have a script that prompts him to say: “Just before we wrap up; typically, the clients who purchase this also have a few other requirements. Can I just run them by you real quick, and if there’s anything that you’ll need, we can get it sorted for you at the same time?” Most clients would be happy to spend another minute going over other potential needs they’d have – and many may even buy something extra. The 35% increase example I gave last week came from this strategy. As an example: I know the client will need to buy pet food if they’re buying a pet, and they’re going to get it from somewhere. What if I got them on a monthly retainer to have the right amount of the perfect food delivered to their doorstep each week?

Next Steps

Here is a quick action point to implement: Do a pop quiz of your sales team. Do they know all the services/products you offer? Does your website list everything you can do? Does your office and/or store make it clear that there may be more things available than what is on display?

Consistent sales and revenue is one of the most crucial factors when it comes to building a high-value, high-performance business. However, it's not the only one. There are 3 other key factors that influence the value of any company - to find out more, download this in-depth e-book: 4 Keys to Driving the Value of Your Business

Are you ready to create real change in your business? Get in touch to book a free insight session with one of our award-winning business coaches, and see exactly what it takes to build a world-class business.

Leadership How-To: Building Your Personal Infrastructure

Infrastructure (def): The basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.

Living in the amazing city of Dubai, we can almost be forgiven for taking the brilliant infrastructure around us for granted. Assume, for a minute, if Sheikh Zayed Road was closed for a day. Or if the Metro stopped working. Or if the sewage treatment facilities, or telecommunication hubs, or the airport were to get intermittently interrupted.

We have become so accustomed to having these services available to us, we almost don’t notice them anymore. Yet, there was a time – not too long ago – when a lot of these were less reliable, or perhaps even non-existent. Sending an SMS was a big deal 20 years ago, and MMS was expensive (anyone remember MMS?)…today I can scan a cheque on my phone, submit it via an app and have the money transferred to my account in seconds. Creating the required infrastructure to meet the requirements of a country is no easy task – look at all the countries in the world that know what they need today, but aren’t able (or willing) to deliver it to their people. Anticipating what a country will need in a year – or five years, or a decade – in advance, and investing in building it…that is a whole other level of brilliance and foresight.

In admiring all this that we are blessed to have around us, however, there is a big lesson to be learnt: to be world-class tomorrow, the time/money/effort investment needs to be made today. No project with a large, sustained impact can be built in a hurry. You wouldn’t live in a tower that was designed and built overnight, nor would you put your hard-earned money in buying shares in a company that launched yesterday and IPO’d today.

Yet, you are investing all your effort, all your resources, and gambling your future – as well as the future of your family, friends, employees, families of your employees – on one investment: you.

You are today the sum total your experiences and learning over your lifetime, minus the lessons you have not yet learnt.

Question: Are you a solid investment?

To answer that question, let’s consider what a ‘sound investment’ comprises. Besides the obvious financials, what else would you consider when buying shares in a company? Their history to date, their management (and their reliability), their performance and growth across multiple sectors, the clarity of their plans, their provisions for setbacks, their potential for scaling up. Now, if you were to score yourself on these factors, how well would you do?

The truth is, doing all of the above alone is tough. It would take a very special sort of person enjoying very unique circumstances to be able to accomplish it. Most of us have multiple demands on our money, time and resources. From families, to work, to hobbies…juggling them all while still focusing on bettering ourselves is, well, hard! If we take ‘Doing it alone’ off the table, then we’re left with two options. The first is – regrettably – the more commonly selected one: doing nothing at all. “If I can’t do 100%, what’s the point of starting?” There’s enough logic there to reinforce a limiting belief, and, for some people, that’s enough.

Another – smaller – group of people have a different solution. They don’t try to do it alone, because they know the difficulty, and they don’t do nothing, because they recognize the price of inaction. For them, doing it well requires doing it together. They invest in their personal infrastructure, by building the channels to share information and resources, by creating systems to help prevent overwhelm, and by developing support networks to help them achieve their personal and professional goals. For them, there is no ‘if’ when it comes to getting what they want to get – only ‘when’ and ‘how’.

If achieving excellence – personal or professional – is your target, and perhaps if you have already begun feeling the overwhelm of trying to do it yourself, here some five ‘personal infrastructure’ suggestions that can help you succeed:

Fix the cracks:

Where are you losing time, effort, money, and/or energy? These are precious resources, and losing what you need to keep growing is the best way to stunt your growth. Areas to improve on: have good time management systems in place, create and follow a personal budget, sleep and eat well, and monitor your mood. Once you identify where the leak is, stop everything to fix it immediately.

Clear the drainage:

While what we need is easily lost, what we don’t need somehow manages to stick around. There will always be wastage, and a good system has an efficient disposal mechanism. Cutting out the clutter in your life and work will leave you with more time and space to focus on the necessary. Some areas to look into and work on may include: organisation of your physical space, management of typical challenges and learning to ‘let go’ of things beyond your control.

Have a ‘Majlis’:

In Arabic custom, a ‘Majlis’ is where people regularly sit and meet, both socially and for work. It is a place where the focus is on human-to-human communication. Today, we have such a massive reliance on technology, we are losing the benefit of real human interaction. Create a space – both physically and in your calendar – to meet with friends, colleagues and guests. No amount of emails can communicate the trust conveyed in a handshake, and no voice message can truly convey the happiness of laughter. Develop strong friendships, nurture them, and use the power of relationships to your advantage.

Build a “City of You”:

The idea behind allocating entire areas to one activity is to boost chances of success in that focus area. Create a professional ‘city’ around you, where every element is designed to help you excel. You are what you make of yourself, so from office spaces that you enjoy working from, to people that support you, each customizable ingredient in your environment should be part of your recipe for success. While there are some things that you can’t influence, you can definitely: have metrics to track your professional growth (not just activity); carve out learning and self-development times; bring a coach or mentor on board to accelerate your growth; and continually seek out constructive feedback. There’s a huge difference between ten years of experience, and one year of experience repeated ten times.

Do a “Happiness Survey’:

At the end of the day, what more do we want from life than to be happy? Stop and reflect on your life, look back at your journey at appropriate intervals (birthdays are a good one) and study your highs and lows. Gratitude for what you have today is powerful, and reflection on the challenges will help you prepare to face them in your future. Invest in your learning, your reading, and your health. Your days at the peak of your game are already limited by time, don’t allow them to finish any sooner.

In the GCC, Mecca and Madina are perhaps the only locations that had something truly unique. All the other natural resources that the UAE enjoys are similar to the resources of the other Arab countries. Yet, this country is leading the way in terms of growth, business success and quality of life. The investment made by the country into itself has paid back hundreds of times over, and will keep paying back.

The people who take this approach to life see the same results…and it’s not just multi-millionaires and CEOs. All around us, there are people who have done and are doing what needs to be done to ensure their success. What we see is a result of years of efforts and investments. Yet, it is more than worth it. The takeaway to live by, in the words of Warren Buffet, is: “The best investment you will ever make is in yourself”.

How to Create a Culture of Accountability in Your Business

Conversely, stagnation, finger-pointing and under-performance are characteristic of businesses where this culture does not exist.

The question that business leaders often ask is: How can we create this culture of accountability in our company? There are two major parts to this question, and each one plays a large role in answering it.

Part One: A Structure for Accountability

It is only fair for a person to be accountable for an outcome if three things are in place:

• The Target
• The Measurements, and
• The Opportunity

If you want to see the level of accountability increase in your business, here are the steps you’ll need to take:

Step One: Set Clear Targets & Goals

Besides the CEO of the company, no one person is responsible for the performance of the entire firm. Therefore, targets should be split down to the lowest level of responsibility – but not further. Each person must have his/her individual outcomes made clear, discussed and agreed upon even before they join the team. If the individual and their manager have different expectations for the outcome, it is unlikely that the managers’ goals will be achieved.

Action point – ensure every department and every individual is aware of their targets (not just the sales teams). If everyone is pushing in the same direction, chances of success are much higher.

Step Two: Measurement of Completion

The metrics for measuring outcomes need to be correct. Metrics – also referred to as KPIs – need to be quantitative and outcome-based. They are the numbers which tell the story of how the business is performing. If these numbers are reported on time and analysed correctly, warning signs can be picked up early enough to make important changes before any damage is caused. Action point – every individual should have KPIs reflecting their targets. These should be analysed frequently, so as to rectify any issues early.

Step Three: Regular, Effective Communication Between Teams

KPIs assign responsibility, which is why it is crucial to understand where one teams’ responsibility ends and another teams’ begins. Marketing creates leads, which the sales team converts. Only then can operations service the customer. KPIs around the number of deliveries has to be tied to sales numbers, or else the Ops team will fall short on something outside their control. Each person and every team needs to have the opportunity to deliver, so that the measurement is both correct and fair. Action point – sit teams down and help them understand how the actions of one affect the other. Design and execution often live in different worlds, and finance is usually on a planet of their own.

If accountability was just a case of setting metrics and reporting KPIs, it would be relatively easy. Given that a vast majority of the companies we’ve worked with (from 10-people start-ups to 650+ staffed organisations) didn’t have this in place, it is safe to assume that the exercise is a lot harder than it seems. And yet, even the setting of KPIs is not quite the answer. That is where the next part plays a massive role.

Part Two: Creating Culture

There is a clear, structured process around setting KPIs. But the culture element, that is a whole new challenge. Culture is not a process, nor is it contained in employee handbooks. It is a living, dynamic entity, and affects the entire company – both positively and negatively. If there are noticeable ‘cliques’ in social settings – that is a culture. If managers come late and have reserved parking spots outside – that is a culture. If every time someone goes to make a cup of coffee asks the team if they’d like one too – that is a culture.

How does this all come about? Culture is created – it is shaped, refined, instilled and taught. Good culture is intentional, not automatic. Not-so-good culture, on the other hand, has a way of establishing itself in a company and spreads itself throughout. You don’t have to do anything to get a weed-filled backyard, but creating a beautiful garden is constant hard work. The same applies to culture – left to itself, it will often be counter-productive.

There are a few fundamentals to keep in mind for creating a culture of accountability, and each one plays a huge role.

1 - Transparency and trust

If I’m accountable to someone, it means I am putting myself up for review by them. If I don’t believe they have my best interest in mind, I would be hesitant to put my success and future in their hands.

What is the level of trust within your organisation? Do team members work well together or are there silos? Do individuals or teams have unhealthy competition between them?

The single best way to ensure there is trust across the board is insisting on transparency. Everyone speaks the same language, there are no hidden agendas, and everyone is on the same page. It is easy to feel everything is fine while sitting at the top, so make sure you hear the voices of those down the line. It could provide valuable insights.

2 - Two-way communication and pro-activity

There is a difference in ‘talking to’ and ‘talking at’. What we would consider a normal conversation is ‘talking to’. When the communication is in the form of orders issued, it’s ‘talking at’. If someone is being told what they need to do, it’s really difficult for them to feel motivated or excited about it, especially during tough times. This is why communication is such an important element for a successful company.

Imagine the difference in enthusiasm you’d feel in these two hypothetical conversations with your superior –

Scenario 1: “These are your targets. I expect this to be achieved by the end of this month, and let me know how you’re doing each week. Any questions?” Scenario 2: “These are the targets we have for the company. What do you think you need to do to help us achieve this number? And how do you see yourself doing that? What resources will you need? If we were to put a number on it to help us keep track, what should we aim for each week? How could I support you in this? Let’s have a 10 minute debrief each week to see how you’re getting on, shall we?”

Which would you feel more motivated to achieve? And which would make you more willing to be accountable? Note the way you are the other managers are communicating with the team members. Get their buy-in, talk to – not at, and let them be proactive about what they will achieve. It will be remarkable.

3 - Have – and be – a role model

There is a saying worth remembering: A fish rots from the head down.

If we don’t like what the organisation looks like in the middle, chances are the same issues exist further up the line. Here’s something worth considering: if the entire company behaved like the department heads, would the company be in better or worse shape? (I use department heads as indicative of senior team members but under the level of shareholders/C-suite). Are the team leaders good role models of culture for the rest of the team? Accountability begins with leaders acting like leaders. When you’re busy, it’s easy to let the small things slide, like not responding to emails or showing up to a meeting late. But it’s detrimental to workplace culture if employees see leadership as unaccountable or above-the-law.

4 - Autonomy

Micromanagement is exhausting, ineffective and – unsurprisingly – counter-productive. If accountability only happens when you follow-up a dozen times on what you need, the culture has not been adopted yet. The real value will be seen when team members put their hand up voluntarily on two occasions: to take on a task, and to offer updates. This is, arguably, the most difficult to get right. Autonomy means allowing someone the freedom to do their own thing but for that, you need to trust that they are capable and willing to actually do it. The only way to build this is ‘trial by fire’ – we try it, and either we were right to trust them and everything works, or we were wrong and get burnt. Start with small tasks, and watch closely; sometimes the ones you have the least expectations from will surprise you when given a free rein.

5 - Carrots and sticks!

As is normal for any organisation, there may be positive or negative results at the end of the day. What I often see are companies very quick to reward and incentivise, but very slow and unwilling to enforce consequences. Accountability does mean each person proactively says what they have and haven’t achieved, but it’s not a free pass for under-performance. If a team member hasn’t delivered, it’s good for them to admit it, and it’s better for management to support them and address the issue. If the lack of results is consistent, however, it would be unfair to the rest of the team to allow them to get away.

Accountability is not a straightforward business strategy. Sure, there are numbers and metrics we can utilise, but the core of it comes from fostering the right culture in the entire team. Every successful entrepreneur highlights the importance of having a great team. This is not just a workforce of competent employees – it’s a team of competent, reliable people, who work well together and trust each other. And that is what makes the difference.

A Personal Note: Three Game-Changing Strategies for Business Leaders in 2020

With the dawn of a new year, many individuals have made their resolutions. Weight, savings, travels - these are typical topics that many would include in their goals (and - statistics show - most won’t achieve them, unfortunately. Unless you implement the first suggestion below).

For business leaders - in particular - I want to offer three suggestions to consider when setting your resolutions. [Important side note: “Leaders” are not the ones with the longest titles, biggest offices, or highest rank. Leaders exist throughout the organisation, even in teams of two people. Having any number of direct reports is not the criterion for a leader; rather, it is the respect and engagement that one inspires and commands that determines who the leader is.]

You can use the suggestions in the manner presented below, or modify them to better fit your approach. The idea is to enhance your resolutions, not replace them. You know best what you need at this stage of your journey, and the suggestions below are intended to ensure your success. These ideas are proven game-changers - for you, your deliverables, and your organisations.

First: Have an Accountability Partner

Depending on which study you look at, the numbers change slightly, but the overall trend is the same: Over 80% (and up to 92%!) of resolutions will be dropped over the year. Of these, most (45%-60%) will be dropped within the first three months.

We can blame unrealistic expectations, incessant temptations or bad influences all we like, but the truth is: “I failed”. There’s a powerful quote to keep in mind from Rudyard Kipling: “If you did not get what you want, you either didn't really want it, or bargained over the price”.

If the goal is to lose 10kg, what is the price to pay? Stop eating out, skip desserts, eat earlier, sleep better, walk/work-out three times a week. If the goal is to have a certain amount in savings by the end of the year, the price would include limiting expensive entertainment, putting money aside as soon as you get paid, and tracking your spending.

If the “price is too high”, you won’t make the sacrifice, and therefore won’t see the full result. The issue is, when we set the resolution, the price seems manageable. As we go through the weeks and months, it starts adding up, and begins feeling harder. How can you avoid the costs piling up?

Answer: an “Accountability Partner”.

Imagine this: The goal was to work out for 20 mins a day, and - at the end of each day - your accountability partner was to call you and ask one question: “Did you do your workout today?”. If you didn’t for the first day or two, you might come up with a good excuse, but eventually you’d start working out, just so you can say that you did. It takes about 21 days to form a habit, so - by end of January - working out is part of your routine, and you’re on your way to achieving your goal. Or, say your work resolution is to plan your day before checking your emails. Your accountability partner - most likely your PA, but could be the receptionist, or even if the security guard if you come in before anyone else - can come see you twenty minutes after you get in to ask if you’ve done your planning yet. The same process works, whether it’s with the saving, the reading, or allocating family time.

The accountability partner can be whoever you want - just get someone who you can trust to keep you on track for your resolutions. You can have one for all your goals, or different partners for different goals – as long as you live up to your commitments to them.

Second: Read (and inspire others to read)

This is one of those topics that needs no introduction. Nobody knows everything that they’d like to know, and the lack has definitely been felt on occasion. But, due to being ‘busy’ and (insert a dozen other excuses here), most of us are guilty of not reading (or learning, in general) as much as we should.


On a personal level, this is a big enough deal. If you aren’t familiar with how Augmented Reality is changing the world of education and gaming, how will you know what impact this is having on your children? If your knowledge around nutrition and physiology is weak, how would you decide what lifestyle changes you need to make that will work best for you and your body?

On a professional level, this challenge is much bigger, exponentially so, and is related to the size of the organization. I’ll limit the reasoning around this to two arguments:

Number One:

When a team isn’t aware of what ideal performance looks like, or can’t accurately diagnose what isn’t working, they can’t change or improve. when one mistake is made on one job, it’s a rectifiable error. But when the shortfall is across multiple areas, replicated by multiple people, over multiple years…now it’s much harder to fix.

To make it a bit more realistic: imagine your senior management haven’t done any proactive learning for the past few years (this part you don’t need to imagine - it’s actually the norm in most businesses!). You, the CFO, COO, Sales Director, Marketing Director…nobody has correctly identified the challenge of executing a project in a different country. As a result, the efficiency is 25% less than it is when executing a project locally. Now multiply a 25% lower profit figure by the number of projects executed internationally over the last 5 years - and weep at the cash lost.

This is not an isolated case. We’ve seen this firsthand with clients, and the total revenues and profits lost really do hurt. Recoverable? Unlikely. Fixable, going forward? Absolutely.

Number Two:

On a less tangible level, change is hard. When there isn’t a learning culture - one in which norms are challenged, the bar is always raised, and team members are not hesitant to ask questions - the team moves at the speed of the slowest person, and improves marginally - if at all - overall. If the CFO is not learning newer, faster and better ways to analyze performance, and his/her team is doing what they were taught to do 7 years ago…it’s unlikely that even the new, eager, brimming-with-ideas accountant will be able to make a difference.

Compare the above scenario with a management team that includes a 15 minute learning session as part of the weekly huddle. Each huddle, a different person presents something that they have looked into, be it a book they’re reading, some new technology that will impact the business, or an explanation of how their department functions in the grand scheme of things. Which team would you put your money on? And, in the real world, which team have you been putting your money, time and trust in?

There is a direct, massive correlation between the learning culture in the organization and the results they produce with all the clients we’ve worked with over the last 7 years. This is an absolute must-do. It doesn’t have to be books - audio books, podcasts, e-learning…any medium works. A team that learns together, earns together.

Third: Become a better leader

One of the biggest leadership challenges is also the most obvious: you’re only as good as the performance of your team. Your best intentions, your late nights, your passion for the work, all gets washed away when your front-line staff mistreat a customer. The converse is also true. I regard certain people whom I’ve never met very highly, because their teams did a fantastic job with me.

Your leadership abilities, therefore, have very little to do with your technical and operational knowledge, and much more to do with getting the best from your team. So how, then, do you become a better leader?

Before I answer that (and you know the answer!), I’d like to present an example: if a company boasts about their product, but the customers say it’s terrible, who would you believe? From canned food to a condo, if the recipients and consumers of the product/service feel it isn’t great, the company’s claims don’t matter. That’s why you’d look up TripAdvisor before booking a hotel, or read Zomato reviews before trying a new restaurant.

So, to answer the previous question: who are the ‘consumers’ of your leadership ‘service’? If a business needs to hear their customers’ feedback to better their products, you need to hear the feedback from your ‘consumers’ to improve as a leader. So…ask them. Get your team together, and ask for candid feedback. Book a few 1:1s with key members (not your fan club!), and ask for suggestions. If your people see you trying to improve, they would likely be more motivated to support you in all your goals.

If the above suggestions sound good, but you’re not sure how to get them all in, I offer one last suggestion: work with a leadership coach. Get someone who will hold you accountable, who will push you to learn, and who can be of value in your leadership journey. This is your career and life that you’re working on, so don’t go for someone who you can’t trust to deliver the results you need. Be critical, ask lots of questions…and bite the bullet. We work on a “No Change, No Fee” guarantee, so - while we’re strict on who we work with - we always deliver results.

This is a new year. This is your year. May it be your best year yet.

Three Operational Oversights That Will Cost You Dearly

Winston Churchill famously said: Success is going from failure to failure with no loss of enthusiasm. The quote applies marvelously to business, with every phase, every quarter, and every strategy bringing a new, sometimes unexpected, challenge. At every turning point on your growth curve, there will be the need to revisit previous business decisions, and re-evaluate to see if they still apply. Miss them out, and you’ll be stunting your own growth and success.

One such major obstacle on the path to business growth - one that has brought down many good companies - is in the area of operations and execution: how do you continue to deliver great work while growing, and simultaneously maintaining profitability (net, not just gross!)? An added complication is that operations are often the hardest area to change in a business - it’s the ‘what we’ve been doing’ mindset that can make introducing any initiative an uphill battle.

In that light, here are three operational oversights which will have a disproportionate cost on the business, along with some suggestions for resolving them.

1- Time Cost

Whether your business sells products, services, or both, there is one key cost element that needs to be considered: time. While ‘obvious’, experience has shown that time is often not well-priced, largely underestimated, and poorly tracked. Here are some examples of missed time-related costs:

• Selling time (often involving multiple, senior people)
• Time to get paid (and associated financing cost, if applicable)
• Project overrun (the time cost [aka opportunity cost] can exceed penalties)

In most businesses, time is the unchangeable limiting factor. If you work on one project, you have limited time to work on another. If you’re preparing one order, the second will have to wait. What makes this even worse is the lack of data on time utilisation and efficiency. I can tell you minutes of server downtime, but I have no way of tracking time lost due to miscommunication, mistakes or laziness.

Ideas:

• Make time-tracking (or some version of it) a part of every departments’ KPIs.
• Quantify time spent on each phase of work, and notice trends and deviances.
• Find connections between efficiency and results; if you’re 60% efficient, then a 3% increase in efficiency will translate in to 5% extra profits. It’s not about the hours in the office or activity, it’s about performance and output.

2- Scalability

Almost every business I’ve asked both wants to grow 10x, and admits that 10x growth will likely break them. Short reason for this? Inability to scale. 10x growth is a lot, even doubling of demand will be difficult for most businesses.

So how do you prepare for massive scale - particularly while staying lean? Tripling the staff or doubling the machinery is not feasible - but also isn’t the real reason. The usual, main obstacle to growth: the execution.

Allow me to explain with a simplified and common example: have you ever had a favourite restaurant that became too popular? One where the owner and staff knew you by name and remembered your order, where the food was great, and - whether dinner date or business lunch - you knew it would be a good experience. And then, once it started getting famous, new staff came who weren’t as warm, new cooks came who weren’t as careful, and the larger crowd came and made the ambience and experience go down.

That’s similar to what happens in every growing business, unless its managed early-on. Your business will grow, and will need more people, and will get more customers. How are you going to maintain the standard you built your reputation on? There’s a reason so few SMEs manage to scale effectively over geographies - the people, who are the real asset - aren’t scalable.

Ideas:

• Plan for succession - actively. Everyone should have a ‘second in command’, who is able to pick up slack as and when needed. This will also allow people to move up and across with less inefficiencies.
• To whatever extent you can manage, create and implement processes and workflows. It will help keep quality levels up.
• Define and articulate your culture, and actively train people on it. Don’t assume they’ll learn, they might end up teaching something completely different! The real culture will only be revealed when you aren’t around to monitor it, so train your ‘employees’ to be your ‘team members’.

3- Internal feedback

If I had to pick only one area to focus this article on, it would likely be this. In so many situations, an ‘impossible’ problem got resolved through an off-the-cuff remark from one of the front-line team members. The only thing more surprising is that nobody thought to ask them earlier.

Your front-line team are your eyes and ears on the ground. They know your customers, your systems and - in some cases - your business better than you. They often aren’t the most influential within the team, and their voice doesn’t always get heard at the top. Yet, if asked, they could probably come up with insights, challenges and solutions that weren’t considered in any management meeting.

Ideas:

• Ask for ideas and suggestions proactively. Make it an important part of the managements’ work, not a ‘tick the box’ exercise. Celebrate good ideas, recognise participants, reward victories.
• Create a culture where people are empowered and encouraged to speak up.
• Get managers and team members to work in other departments or with other teams for short periods (or on specific projects). It’s always helpful to have a fresh pair of eyes.

This list isn’t exhaustive. Running a business successfully is about both capitalising early on opportunities and proactively preventing mistakes. There will always be more to do and more to learn. But start with these.

Why Automation Matters to Your SME

Fiery debates are sprouting all over the globe around how automation is rapidly changing the landscape for business. Like the digital revolution and industrial before it, a rise in automation points to a new way of doing business for everyone. While major corporations shell out waves of cash to test this new industry — with driverless cars, delivery drones, and even pizza making machines — what relevant keys can SMEs glean about the wave to come?

A valuable indicator for entrepreneurs is an honest look into markets already being disrupted with incredible speed. Below, we’ll list mindblowing innovations in 5 industries relevant to SMEs.

1. Delivery

Have you met DRU?

Domino’s Restaurant invested $30,000 to construct the Domino’s Robotic Unit. “DRU” is an automated delivery unit which keeps your pizza steaming hot and your drinks ice cold — and Domino’s is so all-in about the concept they’re already introducing DRU to the public as the next member of their delivery family.

Our key trend here isn’t that a larger restaurant chain is testing new tech, after all this could be a marketing or publicity ploy. It’s that larger companies are adopting automated delivery methods already proven successful by smaller businesses.

Starship Technologies has been using automated bots to deliver food and merchandise around places like London and San Francisco for over a year now. Their fleet of bots raked in 17.2 million (USD) in funding last year, earned a partnership with Mercedes-Benz Vans and is currently delivering over one million packages a day. Safe to say there’s some faith in the model — and we may see automated delivery bots released/partnering with more companies.

Future quotables: “Where the hell is that bot with my shawarma?”

2. Medical

STAR, a medical service robot, has just performed its first successful surgery — stitching up the bowels of a pig without side-by-side human assistance. What’s more, during surgery STAR set sutures, connecting parts of the intestines, with more accuracy than its human counterparts.

Also in the field, human organs are being generated via a 3D printing method called ‘bio-printing’. Bio-printing works using a combo of human cells from the intended patient and a 3D printing material. SME medical suppliers may benefit from pondering if the next big wave could be supplying machines with what they need to heal, improve and sustain human life.

Future quotables: “Sir, your robot was late for surgery because he needed an oil change.”

3. Real estate

A 3D printer building a house in a day isn’t necessarily new. China successfully automated 10 houses in a day, back in 2014. What’s new is: company Apis Cor has built the first on-location house, in under 24-hours with a price tag of less than $11,000! What remained for the crew was to paint, pop in windows, add roofing materials, wiring and insulation.

This represents serious industry-growth in: efficiency, mobility and affordability. SMEs who have a stake in: construction, development, supply, contractors, staffing companies, real estate buyers, sellers, agents — may benefit from keeping an eye on exactly how quickly this tech may be integrated. Especially now, since Apis Cor printer’s been proclaimed “ready for mass market use”.

Future quotables: “Habibi…was this house here yesterday?”

4. Customer service

“Excuse me! Do I look like I work here? Do I look like a robot to you? ”

Customer service has seen significant disruption from the automated phone service to online digital assistants. Now, with online shopping and fully automated grocery stores the phrase “how may I help you?” may become something more read than heard.

But, now automation is taking a curve in retail as places like Lowe’s and Best Buy are testing automated customer service agents. Robots, like Chloe & Oshbot, now help humans in California and Manhattan find or access things they need in the store. And not to be outdone, Pepper, a robotic customer service agent in Japan was just promoted to a Carrefour in France for superb performance.

Future quotables: “The Employee of the Month is… XP99765!”

(Dangit! Again!)

5. Hospitality

“Bot-spitality.”

Yotel, a hotel in New York, has adopted a 100% automated hotel check-in system — where the process can be managed top to bottom via touch screens and even robots who handle your luggage. While, Yotel admits it wants to be considered a ‘tech hotel’, history shows if this model proves cheaper, more efficient and accepted by patrons — Yotel might not be the only one seeking to blend this tech with their strategy.

Future quotables: “I promise, this cafe has some of the best bots you’ll find in the city.”

The takeaway

Truth is, business risks haunt either edge of the stratum. Early adoption could lead to anguish around financials, quality, safety and process. Yet, sluggish adoption could give competitors time to encroach on your market share, endear their service to your customers, and hurt your bottom line. Since we haven’t yet a magic mirror with automation to predict how big of a splash these innovations will make and how quickly, here’s what you should do:

Learning from the dynamic boom of the car, cell phone and computer; the critical key is to be aware of the changes to come in both your immediate market and parallel industries. [Remember: how the advent of video conferencing impacted the necessity of business travel. Or how email affected snail mail. Or how mobile payment options – and the benefits that come with it – are changing the way people shop. Consider for the future how self-driving cars will impact the transportation industry.]

Equip yourself with reliable, consistent information in regards to rising tech across industries, and you’ll be able to re-position your firm (and yourself!) to ride the coming wave…or at least not be crushed by it.

Exponential Organisations

Not too long ago, giants like Google, Airbnb, Uber and Facebook started out with a few developers piecing together code from their garage-turned-office. Now they're defining the way we live our lives. It seems a new business-building model -- one some are deeming a Fourth Industrial Revolution -- has risen, characterized by intense technological innovation and whirlwind growth. This has prompted many businesses to ask the question: "How are these new companies growing exponentially when we aren’t?"

The core notion is simple: Rather than increasing human capital or physical assets, the most successful 21st-century companies leverage information and technology to achieve rapid expansion in pursuit of a "Massive Transformational Purpose" (MTP). In doing so, they're able to scale their business strategies, culture, organizational frameworks and purpose at the same rate as the technology, i.e. one that follows an exponential curve. 

Of the 11 fundamental factors that drive exponential growth, one of them is Autonomy.
 

Autonomy

Businesses run on people, and Exponential Organisations need to run faster than others. The pressure on getting people to continually work better in shorter times is not feasible in typical businesses - which is where the massive benefits of Autonomy come in. 

 
There is the old model of managing employees, with hierarchical structures and multiple layers of management, where information slowly cascades down from the senior management. Direction is given, data is collected, and slowly goes back up the chain. The business loses a lot of the value in the intermediary levels. It also just takes a long time, and we just don't have that level of time today. Autonomy allows businesses to distribute authority levels right down to the edges as much as possible. 

 
At Zappos, for example, the employees have the obligation and the mandate to do whatever it takes to get the customer happy. They're not measured by how long or little they spent on the phone with a customer, it's how happy the customer is at the end of the call (The record is 15 hours that somebody spent on the phone!). The classic example is when the Zappos employee ordered the pizza when the customer called up, which was totally outside their scope of actually selling shoes. 

 
Another brilliant example is the Ritz-Carlton, where team members are given a budget that they can spend on a customer, no questions asked. The famous example of the stuffed giraffe’s extended holiday at the Ritz has been told many times, but it’s an excellent example of what happens when team members are given the opportunity to step up.

 
The main reason that autonomy is important is that it increases the agility of the organisation, there's much more accountability at the customer face. There's much faster reaction reaction times, and shortened learning times for the organisation as a whole. Perhaps the single biggest benefit is the better morale, because the team and the staff feels so much more empowered than in a traditional organisation, where they’d need to get approval every single time they want to do something.

The Investor Obstacles: Common Challenges and How to Maximise Funding Success

The well-known storyline looks something like this: innovative-but-broke entrepreneur comes up with an amazing idea, but can’t fund it. After teetering on the edge of bankruptcy, she meets an investor that believes in her and in the dream, and funds the endeavour. Along the way, the investor also provides insight, ideas and introductions, all which are invaluable for the budding entrepreneur. A few years later, the business is sold for tens of millions, and everyone is happy.


The typical story, however, is often quite different. There are a thousand things that can go wrong, changing the narrative from the above version to the version where the business shuts down and the money is lost. (Shameless pitch: our role - and our goal - at Kaizen Consulting Group is to minimise these obstacles, and give the business the best chance of success).


But what do you do when the investor is the obstacle? I’d like to take a minute, and highlight three instances where the investor - usually unintentionally and inadvertently - becomes the impediment. 


A note to investors: As an investor, you’re probably the last person to be expected to limit the success of any venture. And, in most cases, you probably aren’t. Certain actions, though, however well-intentioned, can backfire, and slow down (or stop!) growth in the startups you’re funding. 

Firstly: keep your financial promises.

Of the three, this may be the most common issue. A pitch is made, terms and commercials agreed, investment confirmed…and then nothing. The entrepreneur is unsure whether to nag for the money and risk upsetting you, or wait silently and hope you haven’t forgotten about her. 


On the face of it, this is already a problem. The business needs the funding, it is time-sensitive, and there is no clarity on when things will change. What exasperates the issue is the knock-on effect that will most-likely happen in good businesses*: the next required cash injection will be a higher value than initially planned. Why? Cashflow. By not getting the first funds in on time, product roll-out slows, marketing is suffocated, and fixed/running costs stay the same, all while revenue (or revenue supporting activities) are on hold. Result: six months later, she needs more money to achieve the same goal. And for you, as an investor, that’s not good news.


On a related note: if you are having trouble with funding the business, let it go - whether all or part of it. If you had committed to $500K for a 10% stake, and now money is tight, take 5% at $250K and let the business continue, rather than grind to a halt due to a lack of liquidity.


(*as a general rule of thumb: good businesses are the ones that are relying on the money to take steps towards making money. Bad businesses tend to invest in areas where the utilisation plan for funding is vague, unclear and/or haphazard. As with all investment advice, there are exceptions to this rule too.)


So, what can you do? Don’t make promises that you know you won’t be able to keep. Sure, it’s nice to lock in a significant share for a lower price, but - if you commit the money - release the funding. If you can’t, please be transparent around that too. Entrepreneurs and startup founders shouldn’t mind hearing ‘No’ - so no need to sugarcoat anything.

Secondly: clarify expectations.

There probably isn’t a better way to lose money than to give it to a startup and hope for the best. That’s why most investors are quite insistent on being kept updated with the situation of the company and progress made. That’s good, always.


What’s not good is when reporting and updates become a part-time (or even full-time!) job. If the person you’ve trusted and taken a bet on doesn’t get the time to execute, it’s your money that’s being wasted. When does this happen? If you’re insisting on weekly meetings, where you want to see reports, statistics and data, you’re effectively asking them to allocate a minimum of 20% of their time to non-growth related activity. You need to ensure your money is being spent wisely, but your money is buying this person time, and time needs to be spent in the right areas.


As a suggestion: when negotiating terms, make it clear what your expectations are with regards to reporting and meetings. If you want daily updates, make that known. If you need weekly meetings, and monthly reports, make that known. If the entrepreneur commits to a frequency, hold them to that. But please, ensure that the entrepreneur looks forward to the time she gets with you, not resents it.


On a related side-note, make life easier for her. If your current setup has accounting, inventory or HR software (as an example) that she can use, give her access. Let the system do the reporting for you, that’s probably not her strength anyways. If your accountant can spare two hours a week to look over her numbers, ask them to. If you need to, keep a small fee on the startup to pay for the support services, it’ll be a good investment if it frees up her time.

Thirdly, and this is a delicate one: know the game.

This is probably more for individual investors, rather than firms: before you invest, become familiar with what you’re putting money into. The first fault of this misunderstanding is on the entrepreneur, when they sell a vision without explaining the detail. The second fault is on the investor: if the business is building a new technology, understand the development. If it’s creating a new market, familiarise yourself with the landscape. Sure, the entrepreneur needs to know and work out the details, but arguably your biggest contribution to the venture will be the wisdom and experience you can bring to the table.


Make the time to learn the industry, don’t just go by business plans and figures. It’s impossible to build every eventuality into the plan, and the more you are aware of what you’re venturing in to, the better the chances you’ll spot potential problems, and the more applicable your advice will be.


Entrepreneurs are always going to be more trusting, more optimistic and in more of a hurry. That’s fine - in fact, that’s the passion and enthusiasm that you’re buying in to. There will always be obstacles along the way…don’t let your relationship with your new partner struggle due to any preventable ones.

Five Strategies Business Owners can Work on Remotely

If you run a business, and are being responsible about social distancing and staying at home, you’re probably wondering what the heck you can do. It’s a bit of a perfect storm with plummeting markets, virus-related quarantine and uncertain economies. The one thing you can be sure about is that the storm will eventually pass. We may not know how long it’ll take or what the full impact will be, but there’s no sense doing nothing in the meantime.


Here are five things you can do from home (or anywhere), and it’ll benefit the business in the short and long term.

Number one: Create digital assets. 

You know that book you always wanted to write? Or those blog drafts that you haven’t completed yet? Now is the perfect time to start working on them.


As the world gets more used to the idea of moving online, it will be a necessity - not a luxury - to have digital assets. An asset is something that makes you money. Digital is when the existence is non-physical. Your digital assets can be your e-book, your online course, or your proprietary software. Start creating.

Number two: Work on internal systems and processes.

There are inefficiencies in the business that have cost you time and money, and you’ve always been a bit too busy to address them. Well, here’s the time you lacked, and internal processes are a great place to start.


Two suggestions to get you started: 

One: Have your team collaboratively create the internal and external processes, get them scored by the team, and start fixing them from the lowest ranking one up. It’s not a complicated procedure, but is a lengthy one, so the sooner you get started, the better. A great resource to aid you in this exercise is the principle of the book “The Goal” by Eliyahu M. Goldratt.

Two: ask every contributing member of the team to come up with 3 ideas for improving the business; one logical and straightforward, one interesting but challenging, and one bold and crazy. Get into teams - based on who likes what ideas - and start executing. Nothing like some quiet time to get creative!

Number three: Redo expenses and look at saving costs. 

When was the last time you did a comprehensive expense overview? Your profitability will come from revenue generated minus cost of running the company…and revenue generation is quieter right now. Take this time to sit with your accounts and go over every line item, consolidate your purchasing, get vendors to give you fixed prices and rates - and start saving some money.

Number four: Improve team collaboration and communication

In an office setting, everyone is everywhere, ‘meetings’ are always happening, and there’s a buzz going. Working alone may give you some quiet time, but it also reduces collaborative work. 


Use this time to experiment with social tools that maximise productivity, while minimising disruption (Watsapp Web may allow instant messaging, but won’t stop all those blasted Corona forwards). Tools like Slack, Quip or Google Docs are brilliant for working on stuff together, while others like Trello and Monday.com are invaluable when it comes to ensuring project milestones are being adhered to.

Number five: Keep up learning and reading. 

It’s easy to get into a routine that includes unhealthy amounts of Netflix and YouTube. Make sure you’re also taking care of your most important asset: your mind. That pile of books you’ve been promising yourself you’ll read, that new language you wanted to learn, that hobby you said you’d take up - now’s the time. Keep up the mental activity, and the physical becomes easier. Let the brain start getting bored and rusty, and your work will suffer.

A Quick Guide: What to Expect When You Work with a Business Coach

Business Coaching: A Quick Guide

Time, money and manpower are all limited resources in any business setting. However, in a competitive and fast-moving economy like the US, these resources become even more valuable. Businesses are always under pressure to do more with less. You must enhance your performance while elevating that of your team.

In a game with such high stakes, efficiency is crucial. Here are some questions you are probably asking yourself:

• How do we optimise our resources?
• How do we raise our game?
• How do we increase market share?

There are a lot of tools to help you – from books and seminars to training and consultancy, but all these will cost you either in terms of time or money. Business coaching is one of the most effective and proven solutions to help you overcome current challenges and to strategise for the future.

Just as you wouldn’t expect a top athlete, no matter how gifted and hardworking, to succeed without a good coach, the same applies to business owners and managers at all levels. Having someone beside you to challenge you, provide personalised support, and a needed outside perspective can give you the extra edge to succeed.

Recent research has demonstrated that individualised coaching achieves quantifiable results. For instance:

MetrixGlobal LLC conducted a recent study showing that companies that invested in coaching received an average return of $7.90 for every $1 invested

Another MetrixGlobal study on leadership in a Fortune 500 firm linked a 529% return on investment and other important non-quantifiable benefits to business coaching.

The Personnel Management Association showed in a study that when training is combined with coaching, managers can lift their productivity by 86% versus 22% when they only receive training.

A recent field study looking at results of individual coaching, self-coaching and group training in reducing procrastination found that recipients of individual coaching were more satisfied and felt that they were better able to achieve their goals.

Coaching Basics: Expectations & Results

There is a misconception among some that business coaching is only for start-ups or for businesses that are struggling. Although it is true that these types of enterprises can benefit from coaching services, any business leader at any stage of their career and at any point of business development can benefit from business coaching. Coaching is suitable at any stage of a business lifecycle, whether a start-up or a well-established company struggling to cope with market changes. Coaching bridges the gap between your personal goals and those of your company.

A coach is typically a person with a versatile background, combining experience in training and management, with the ability to help you identify your challenges, set your targets and hold you accountable in a way you would not be able to do on your own.

Here is what you can expect from your engagement with a business coach:

1. Leave your comfort zone

Growth only occurs when you step outside your comfort zone. A business coach will not only challenge you and your decisions, but will also dig deep into the areas of the business that are 'not working' and encourage you to tackle those challenges head on. 

2. Personalised support

An experienced business coach will have the ability to draw insights from the overall business landscape, whilst also understanding the specific challenges within your own industry.

3. Direct, honest feedback and Accountability

The role of your coach is to provide honest (sometimes brutal! But always constructive) feedback and advice. A business coach will remind you of the commitments you have made to yourself / your business and spur you forwards. 

4. Tangible, measurable results

A business coach bridges the gap between the often overly theoretical world of consultants, and the unpredictable, ever-changing reality of business. Your coach will help you identify the challenges, strategies, solutions and improvements that will work in your unique business circumstances. At Kaizen, when you start on a business coaching program, we discuss the outcomes that you can expect, and these are guaranteed, meaning they are measurable, tangible results that you will definitely see.

5. Get a confidante

The key to having an effective coaching relationship is clear and open communication. Your business coach’s first loyalty is to you, and his/her objective is to enable you to succeed by helping identify your weaknesses and strengths, overcoming the first and building on the second. A business coach is someone you can speak to openly, and be a sounding board when you need them to be.

6. Expanded Network

A business coach is your advocate, both inside and outside the organisation. When you hire a qualified and experienced coach, your range of contacts expands exponentially. From being connected to like-minded business owners and entrepreneurs, to having a network of tried-and-tested suppliers and service providers, you immediately gain access to a solid network that will help you grow.

Business Coaching Works: Get the Support You Need Today

Still wondering about how coaching can benefit you and your business? It’s difficult to know unless you really try it. At Kaizen Consulting Group, we support hundreds of companies around the world to create a culture of accountability and strong leadership, and to develop a clear strategy for future growth. Among the brilliant results we've seen, companies have experienced rapid, sustainable growth, a future-focussed innovation strategy, and double-digit increases in revenue and profits year-on-year.

If you’d like to see the same for you, get in touch with us to learn more. We’re happy to answer any questions you may have, and arrange a free business insight session with one of our award-winning coaches, so you can see whether coaching would work for you - click here to contact us now.

How to Manage Cashflow Effectively

When the discussion of managing financials and overheads comes up, there’s often mixed reactions. It is an unavoidable truth that the language of business is numbers; the University of Hertfordshire showed in a study that one of the biggest causes of business failure was a lack of good, “numbers-based decision-making”. The better your and your team's understanding of the numbers, the easier it is for you to succeed.


There is another element of the money side of things that needs to be considered: Do you have enough? And I don’t just mean in your bank account - though that’s nice. What I mean is: does your business have the financial fuel it needs to grow?


There are your regular expenses, such as rent, salaries, etc. You need to have enough money to run the business and meet your operational breakeven. However, if you want to grow, what sort of things would you need to invest in? Some thoughts are:

1. Marketing: investing in new channels, campaigns, or mediums
2. Hiring new staff, operational, sales or otherwise
3. Rebranding
4. Capital Expenditures, such as getting new assets, moving location, or so on

All the above require money to be invested (note I say “invest”, not “spend”. It’s easy to spend, but hard to invest). Is this money available? If not, what options have you considered to raise it?


The next thing to consider is: If or when you need an injection of funds, how you’re going to get it and what it’s going to require. There are several possible ways to raise money:


Loans: This is the most straight-forward, but often comes with the highest cost.
Investors: This is usually the most complicated, and comes with the benefit that often the investment doesn’t need to be paid back. The added consideration is you lose a share of the company. If it means growth, it’s worth it. As Jay Samit says: I’d rather have half the ocean than the whole of the lake.


Personal injection: This is often the easiest to arrange…no bankers or investors to convince (unless you have a spouse whom you need to win over!). This does come, however, with the highest “opportunity cost”, so proceed with caution.


Discipline: Sounds like an odd one to include here, but it can work wonders. One of the things we talk about in Money Mastery is setting up a “Profit Budget” to fund growth. This is an account into which you put a certain amount every month, and it has a fixed target amount and target date. The opportunity cost exists here too, but you don’t need to get anyone on board, and you don’t lose any part of the company. This can, however, be the hardest to stick to…which is why so few people do it.


This is quite an in-depth topic, and over the next few posts we will cover some other key areas of business financial management. Get this aspect right, and business becomes a whole lot easier. Get it wrong, and you risk stunting your growth.

Whether you're looking to improve the way you collect outstanding receivables to weighing up the different options for raising capital, if there is something you’d like to discuss that is unique to you, drop us an email: hello@kaizen.ae.

Leadership Coaching & High-Performance Teams: 7 Essential Techniques

Leadership Team Coaching: Seven Proven Strategies in Creating High Performance Teams

Team coaching encourages the leadership team to work together as a system so that the competencies of each individual are fully maximised. The leverage for higher performance comes from coaching the team as a system over time. Systemic team coaching works with the interaction of the team as a whole rather than focusing on individual performance.

There are a variety of ways to deliver effective leadership coaching. Any organisation focused on improving its overall performance and increasing the capabilities of its employees should combine:

• Business seminars
• Workshops
• Webinars
• Training – off-site and on the job
• Workplace Coaching

If you are interested in getting the best out of your team, here are some proven coaching techniques to turn them into high performing players.

1. Team Building

Putting a team together is not an easy task. Sometimes, you don’t have the option of selecting all the team members you will be working with, but there are a few things that you can do to meld a disparate group of individuals into a single high performing entity.

1. Take time to know each team member – their working history, strengths and areas that need to be developed
2. Use the knowledge you have gained to assign tasks and distribute responsibilities, keeping in mind the need to challenge team members and to provide them with opportunities to increase their capabilities.
3. Create opportunities for team building – where a shared experience can deepen emotional links and enhance work cooperation. Such opportunities can include participating in joint training, attending off-site events, or even having a set monthly team meal such as a potluck breakfast or lunch.

2. Team Maintenance

Once you have set up a team, take the time to manage their activities.

1. Set up a “Buddy system” matching more experienced team members with those who are less so – encouraging knowledge-sharing and mutual team learning
2. Focus on “team dynamics” creating the space for individuals to get along and ensuring that when differences arise between team members, they can be contained and resolved in productive ways, for example by spurring on positive competition rather than increasing conflict.

3. Alignment: Creating a Common Vision

Teams that are motivated get more work done. Motivation derives from understanding the importance of the tasks undertaken both to individual development and to the overall organisation strategy. The team needs to know why it exists – its purpose and agenda, and it needs to understand how to achieve its objectives.

1. Set goals & milestones: Use SMART objectives to align the team towards shared goals
2. Monitor progress and allow for re-alignment
3. Align individual achievement with that of the overall team to encourage shared accountability

4. Communication

Communication from leader to team, within the team, and from team members to leader is critical. Communication means clarity, conciseness and veracity.

1. Use communication to build trust between you and your team members and among team members.
2. Establish standards of courtesy and politeness in all team communications and set expectations for responses so that team members feel engaged but not overwhelmed.
3. Use available technologies and business communication platforms such as video conferencing, Slack, Microsoft teams and WhatsApp groups.
4. Ensure that everyone has the opportunity to contribute to discussions and that communication is not dominated by some individuals in the team.
5. Carve out space for face-to-face communication, which is more valuable than other communication tools.

5. Set an Example “Role Modelling”

As a leadership coach or team leader, practice what you preach. Be an example of your organisation’s culture. Demonstrate in your interactions how you expect your team to behave and to achieve. Highlight in your own behaviour the values of:

• Trust
• Loyalty
• Integrity
• Commitment
• Reliability
• Engagement

6. Feedback

Feedback is related to communication but should be considered as a separate tool because its goal is more specific.

1. Establish 360° Feedback – from you as a leader to team members, between team members, and from team members to you.
2. Set the rules for feedback – focusing on recognising achievement and addressing problem areas in a constructive and proactive manner

7. Create and Maintain an Enabling Environment

Once you have created the conditions for your team to work, allow your team the autonomy and freedom to innovate, collaborate and perform. You may need to step in to ensure realignment and to provide direction, but once you have a culture that rewards achievement, encourages feedback and promotes collaboration, you are well on your way to enjoying the benefits of a high performing team.

Leadership Coaching: Making it Work for You & Your Teams

Not all groups of people working together on a common goal represent a team. According to Jon R. Katzenbach and Douglas K. Smith’s The Wisdom of Teams: Creating the High-Performance Organization, “a team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable”. Creating a high performance team is part-art part-science, and it may be the most important thing that you will ever do at work.

Leadership coaching can help you acquire and enhance the skills you need to create and maintain such teams. Now more than ever with the challenges we face dealing with Covid-19, and in an uncertain economic climate, you need to develop your own leadership abilities to ensure that your teams are performing at their best. At Kaizen Consulting Group, we’ve developed and tested coaching strategies over the last 10 years for company owners and senior management teams. Our systemised approach ensures that you will acquire valuable skills that you can transmit and cascade down through your organisation. Leadership coaching is an investment that delivers multiple benefits, providing the leaders within your team with more knowledge, practical skills and tools that help deliver better business results. To learn more about what leadership coaching can mean to you and your teams, reach out to us today.

How to Select the Best Business Coach for your Business

Are they a non-business and business coach?

Life coaching, success coaching, confidence coaching - these are all really powerful…but not the same as business coaching. Life coaches help you live more fulfilling lives, success coaches help you to focus on your strengths, confidence coaches show you how to speak to people better, passion coaches encourage you to follow your dreams. All of these will help you be more successful in your life and your endeavours…but business coaches have one core goal: to help your business improve. This is through business systems, strategies, and processes. It’s not about making you a better person or loving yourself, which are also important…it’s about business results. 

Pro Tip: Ask how they will get you results. If it’s by ‘finding your passion’ or ‘creating harmony’, it’s not business coaching.

Do they have a proven system, or will they create next steps as they go along?

“If you can learn to run one business successfully, then there’s no reason you can’t run any number at the same time. The principles are all the same.” - Richard Branson

                            

Are results guaranteed, or will it be a one-sided risk?

Business Coaching in Dubai: How Much Should It Cost?

When we speak to business leaders or senior managers who are considering working with a business coach, there are a few questions that come up again and again. Of those, the ones below are probably the most frequently asked:

1. How does business coaching work – is it just theory / feel-good fluff?
2. Will business coaching work for me / my industry?
3. How much does business coaching cost?

You can find more of our FAQs here. 


The last one is not only an important question to ask – it will also help determine whether this is the right investment for you to make.

It’s normal for entrepreneurs to be concerned about the financial and non-financial investment that business coaching would require. Consider business coaching the same way you’d consider any other investment – here are some key questions you may want to ask:

1. Do I invest now, or should I wait until _______ ? (The situation gets better, I have more time, I have more money, etc. – fill in that blank however you like).
2. What is the expected ROI, and is it worth the initial investment?
3. What is the risk involved – is there a guarantee to ensure I don’t lose out?

In this article, we dive a little deeper into how you should assess the costs and benefits of business coaching in Dubai.

Why Hire a Business Coach in Dubai

Now Vs. Later

Every smart investor will tell you that investing early trumps investing later – even if later means you’ll be able to invest a larger monetary value. In his book ‘Unshakeable’ Tony Robbins emphasises that the biggest mistake people make is not starting early – even if it means starting small.

In order to create massive long-term sustainable impact through business coaching, you need to start making small, incremental changes today in the areas of business that matter. It’s not just about adding more resources or acquiring larger investments, it’s about identifying the gaps, plugging the holes, and knowing where you need to add pressure to give you the greatest gains – in terms of the business’ value, scalability, revenue, culture, innovation and growth.

What is the expected ROI from Business Coaching

Spending Vs. Investing

As a professional, you probably do all that you can to remain healthy and productive. You try to eat right, work out and get enough sleep. You try to make time to keep up to date with industry news and to read the latest business books. You know that a healthy body and a healthy mind enable you to deliver peak performance at work. This personal investment in yourself is the first step to growing your business and accelerating success.

Let’s make a quick comparison: how much does a gym membership cost? The financial cost: On average, say about AED 600 per month. But what about the non-financial costs? And if you’re wondering what those could possibly be, here’s a quick list:

- Travel time to and from gym: average 15-25 mins each way
- Workout time: average 1.5 hours per session (including showering and changing out)
- Healthy foods and snacks (no more cheap fast food)
- No/Fewer late nights, caffeine, nicotine and other substance intake
- No/Fewer popcorn at the movies, cakes at parties and sugars in teas/coffees

On a basic 3 sessions a week routine, it’s already 6 hours a week in just getting there and back, which adds up to 24 hours a month, or about half a working week each month! What would that mean on your average earning-per-hour rate? On a nominal 25K salary, that’s just under AED 4000 per month, in terms of the time it takes.

And yet…people sign up to gyms all the time. Not because they are happy to give away AED 4000 each month and miss out on all the fast food and sugar, but because what they get back is worth much more than the money, effort and time they are investing in themselves. Not spending - investing.

There is a fundamental difference between spending and investing, and until you understand it, you can only be successful through sheer luck. Spending is giving something of value (time, money, etc) without expectations of it coming back. Investing is giving it away, but expecting to come back in multiples. As long as the money and time I dedicate to the gym yields results (better health, better focus and productivity, better life), I’m happy to keep investing. And that is why fit, healthy people always pay top dollar for good personal training. They may need it less than someone significantly overweight, but want and value it the most.

Business coaching is a lot like joining the gym or getting a personal trainer. There is a straight-forward financial investment required to getting a good coach. And the financial returns on that investment are multiple. There are also non-financial, indirect investments involved: trust is invaluable, but if you can’t trust your coach, you’ll hold ideas and information back - the keys to breakthroughs. Another major investment is time: no coach can work miracles overnight; significant changes may take time to uncover, implement and show results. 


Want to know more? Read our insights on the benefits of business coaching

How much does a business coach in Dubai cost?

Is there a guarantee in place?

If you add up all the financial implications of a coaching program, and put a number on the hours you’re investing, plus the intangible - and immeasurable - value of trust, it’s a lot. But if you compare it to the tremendous financial increase, the accelerated learning curve, and your own growth in leaps and bounds - it’s a bargain. The best coaching firms should even offer a guarantee, which removes the risk entirely.

Working with Kaizen, there is a range of investment levels, depending on what your business needs. For younger businesses that are looking to join a Mastermind community of driven entrepreneurs, the investment will begin from $500/month. For the 1:1 coaching options, you're going to be investing between $2500 - $11,000/month, depending on which program is right for you.

All of Kaizen's coaching programs have guarantees in place, to give you the confidence that you're making the best possible decision for your business. 

Read more about our Kaizen 6-Point Guarantee


Every business wants to make more money and improve efficiency, but only few will actually take the steps. And of those, only the best will utilise what they’ve learnt and apply it to bettering their firms. But that’s ok…if it was easy to do, everyone would be doing it. And success will never come easy.

Are You Willing to Invest in a Business Coach?

Create a Strategic Roadmap

Before you hire a business coach, you should ask them a lot of questions – about their experience, process and what they can do for you. You also need to ask yourself some important questions, including how much are you ready to invest towards a better business and a better you, because how much you are willing to invest in the process is an indicator of how committed you are to achieving your overall goals.

The best way to approach this is to sit down with your business coach and work out together:

● What you think you need – your expectations
● What you need to do – your commitment
● What the business coach brings to the table – experience, insight, process
● Business coach pricing model


Book a free insight session with one of our award-winning coaches to create your business coaching roadmap


To return to our analogy of physical fitness and personal training, you will begin feeling a change almost immediately once you start working out, and the longer you spend at it, the more impact it will have.

If you’re ready to invest in business coaching, reach out to us to discuss in more depth what you need as a business leader and how we can help you overcome your short-term goals and achieve your long-term objectives.

The Second Wave of Business Impact (and HOW YOU CAN PREVENT IT)

From the desk of Murtaza Manji:

Over the second quarter of the year, local and global economies faced an onslaught of challenges. The immediate response, for many businesses across the world, and in the UAE in particular, was to batten down the hatches and cut any extras costs. This manifested in job cuts, salary cuts, suppliers unpaid, rents and assets unpaid...all of which, while conserving short-term cashflow, may also have set the business up for later problems.

The knock-on impact on the market was not positive, and the rapidity with which everything happened left most people scrambling to catch up. The entire lockdown, the abrupt loss of cashflow, the contraction of business - nobody could have foreseen it early enough to have prepared adequately for it.

I’d now like to highlight a potential second wave of challenges to local businesses. It’s not a definite, and it is avoidable. But - armed with foresight - we need to actively do something to steer clear. The second wave may be even more difficult than the first - we haven’t all yet found our feet after being knocked over. Before I suggest some actions we can take to avoid it, here’s why I feel it may happen.

Firstly: The full impact of first wave hasn’t yet washed over

Outstanding receivables, liquidity, resourcing - there is still a lot to do to get back to some kind of business normalcy. Not life normalcy, that isn’t going to happen. We will need to adjust to a new world, which will be - hopefully in many cases - for the better. Business normalcy is having work, billing, reliable cashflow, working on new opportunities and jobs. We have yet to get back to normal. Imagine someone slipping on ice - arms flailing wildly, feet scrambling to get a grip, dropping whatever may have been in the hands. That’s kind of like what businesses are looking like right now. And, until we find a stable footing, we are one short slip away from a potentially painful fall.

Secondly: Inverse relationships between fear and cashflow

There’s a higher level of uncertainty and fear right now. And it’s only natural. But, when fear levels go up, there tends to be an inverse relationship on cashflow. The only certainty I have is how much cash I have in the bank, and how long I can stretch it - and I’m not keen on trading that certain cash for uncertain business opportunities. As a result, businesses will keep cash locked away as long as possible - and that is the problem. If the river stops flowing at any point, the lack will be felt at many places downstream. When businesses restrict cashflow, all of their immediate (plus second and third level) suppliers, their team members, their shareholders, their secondary markets…all take a hit. And, in the current uncertain times, fear levels are extremely high.

Thirdly: Activity, but no forward movement

One good thing that is being noticed is the increased level of activity, as compared to Q2. There are more RFPs and RFQs, more website enquiries, more first and second meetings. All that is great. The not-so-great part is the lack of conversions - a number of businesses have put out more proposals and had more meetings over the last 2 months than ever before…but no new clients, no contracts signed off, and no work begun. And this is a problem - if I feel like I’m going to land a project any day now, I’m more likely to keep my team, my warehouse, my inventory. But when it’s been several weeks, and I’m still not mobilising anything, it gets frustrating and expensive. After all, I’ve been burning cash reserves to keep capacity, while the client - who may have verbally confirmed the work - isn’t giving me the green light. It may be because of internal issues they are facing, and nobody wants to blame anyone for intentionally not keeping their word, but such is the reality. And it’s become more and more commonplace.

The above are being noticed in a number of businesses, across industries and across cities. All of the above, and many more reasons, may contribute to a second wave of business impacts. Is it inevitable? I don’t think so. Is it avoidable? Yes, I believe it is. How? Here are some ideas.

Number 1: Buy local

You can’t succeed in a vacuum. If the tide rises, we all rise. Keep the tide rising by buying local as much as you can. This country has some excellent suppliers and vendors for pretty much any need, and you can find someone to fulfil your requirements. It will support the local economy, the money will flow in the markets you’re in, and the tide will rise.

Number 2: Buy something

The projects aren’t getting started because it’s a big commitment, no one is sure of what is going to happen in the next week or month, and so nothing gets initiated. My humble suggestion: start something. Kick of Phase 1. Begin the due diligence. Restart the marketing. Don’t keep waiting and seeing, because the impact of the current non-movement is suffocating. Make sure the contracts allow you to pause or stop if things go downhill again - but take some action. Someone has to be the first to move, we can’t all wait for someone else to act.

Number 3: Settle your dues

There are few things less pleasant in business than having to chase up overdue invoices. The work has been done, the product delivered, the process all signed off…and no payment. Now the long, painful, time-wasting dance of follow-ups, promises, follow-ups, excuses, follow-ups, negotiations. In good times, it’s frustrating. In tough times, it’s fatal. Your suppliers are out-of-pocket for the products/services you purchased, and by not settling the outstanding, you’re pushing them to breaking point. True, times are tough and money isn’t available, but please don’t use that as a reason to not pay, to insist on unreasonable discounts, and to take advantage.

We’re in this together. “If you want to go fast, go alone. If you want to go far, go together.” No one of us can change the economy, but all of us together can impact it positively.

There is no doubt that the end of the tunnel is coming closer, but there may be some more dips along the way. Maintain the standards and expectations you have for yourself and your business partners, support where you can - even a small amount, and let’s reignite the fire. This is a beautiful country, and we have benefitted tremendously from it over the years. Now is the time to give back.

Let’s do this.

#buylocal #sme #businessimpact #secondwave

Business Coaching in the Age of COVID: A Luxury or a Necessity?

"The only constant is change, and the rate of change is increasing" - Peter Diamandis, Founder of Singularity University 

The Changing Business Landscape

Making good decisions in uncertain times is often what great leadership is about. Currently, business leaders are not only faced with an onslaught of external challenges such as market instability and faster growing competition, but also internal challenges within the company. As millennials become a bigger part of the workforce, technological advancements enable businesses to do far more with far less, and the old ways of managing a team become redundant, business leaders need to be able to navigate the changing business landscape, and gain clarity on the steps they need to take to move forward.



At times like this, bringing on a business coach can often feel like a luxury. However, a business coach will support you not just in making the strategic adjustments needed to navigate the current landscape, but also by having a direct positive impact on the business’ revenues, profits, operational efficiency and employee performance. The decisions you make now will be critical for your organisation, as they will decide whether you sink, survive, or thrive. The businesses that will come out on top are the ones who embrace this shift, and have the guidance and support to see the forest from the trees.

You can read more about The Second Wave Of The COVID-19 Crisis' Impact On Businesses here

Why Every Business Leader Needs a Coach

A recent study by Infusionsoft revealed that business coaches are increasingly being used by SMEs as a key resource. The report states that:

“Several factors are driving the use of coaches and training. Business has gotten more complex and changes more rapidly. There simply is no longer the time to “learn while doing” or the margin of error to “learn by making mistakes” as in the past.”

Business coaching is not about “you” personally (the entrepreneur or the business leader). While business coaching happens through you, and also through your teams, the real client and ultimate objective is the business or enterprise itself.

The goals of business coaching usually falls into at least two of the following three goals:

• Make the business more money, both through increased revenue generation, as well as increased profitability from existing operations.
• Get the business to run more efficiently, particularly without the owners’ constant involvement, and to maintain efficiency as the number of clients and team members grow.
• Get the valuation of the business to increase in the long-term, in a sustainable, reliable way, by implementing the principles of successful business into the core of the organisation. The Coach will also support you through the merger/exit, and help you find your next big business adventure.

As a business leader, it’s crucial for you to be focused on the big picture, but also direct every-day tasks like leading a team, driving sales, and managing operations. Business Coaching is an ongoing process where you’ll implement small, consistent improvements to see significant and sustainable impact in the long-term.


Read more about the Kaizen Approach here

Finding the Right Coach is Important

Given that you have to balance both the immediate and the long-term success of the company, your coach should be someone who, firstly, has faced similar challenges in their own career, and secondly, can help you work through it. A great coach will wear many hats, depending on what you need at the time:

• Change catalyst
• Sounding board
• Impartial external advisor
• Devil’s advocate
• Insights and ideas stimulator
• Window to best practice, in the same industry and other industries
• Friend and guide
• Someone to hold you accountable to your commitments

Read this post on the 7 criteria to consider before working with a coach

If you already have a business coach, but are not seeing the results you want, here are some questions you should ask:

• Do they meet you where you are? Do they take the time to celebrate you, as well as be there for you when something really goes wrong?
• Do they know where you're headed? Do they have a proven map that they use to ask the right questions for your business in the specific stage it’s in? Don’t assume they have a real plan or any legitimate training just because they have the word “coach” on their business card.
• Can they hold a long-term vision while they help you fix the problems that exist in your business today? Do they notice patterns and trends, or are they just reacting to your daily frustrations? You want wise counsel, not just quick fixes.
• Do they make you more curious? Their way of thinking about things should be infectious—you should find yourself asking other people the kinds of questions they ask you.
• Do they understand what coaching is? Watch out for consultants in disguise and amateur therapists without the real training or experience to guide you.
• Do they truly hold you accountable? They should be willing to call you out if you don't show up, do the work and make real change.
• Do they hide behind lingo, lists or tricks? It shouldn't feel complicated to translate the work you do with your coach into your business and your life—hard maybe, but never complicated or unclear.

A true business coach will help you deliver measurable results on your key objectives: revenue, profitability, efficiency, employee engagement, or something else.


Want to learn more about how you can benefit from business coaching? Reach out to us today

Why Client Acquisition Cost is Crucial to your Marketing Strategy

Minimum Effective Dose

The Minimum Effective Dose (MED) is simply defined as “the smallest dose that will produce a desired outcome.”

The concept has been around for many decades, but has more recently been associated with exercise and weight training in particular. The idea is simple - any resources allocated beyond the MED is wasteful.

To boil water, the MED is 100C at standard air pressure. Boiled is boiled. Higher temperatures will not make it ‘more boiled’. In fact, higher temperatures just consume valuable resources that could be used for something else more productive. To overcome a sickness, the doctor prescribes a routine of antibiotics. Having double the dose won’t heal faster - indeed, that may prove damaging.

The opposite is also damaging - instead of having 3 pills a day, having 1 won’t heal the sickness, and the issue will last longer.

In business, results can be disappointing - but the decision-maker is not always clear if it’s because the strategy is flawed, if the resources allocated aren’t sufficient, if there is something that isn’t being done...As a result, the business owner continues to pump in valuable resources - time, money, talent - without getting the results that they know the business is capable of achieving.

We often speak to business owners who fall into the unpleasant side of the 80-20 rule: they are doing 80% of the work, but seeing only 20% of the results.

Identifying the Leaks in your Marketing

If you take a business as a car, and the aim is to scale using a finite amount of resource (i.e. fuel), to maximise the output (i.e. mileage), you want to ensure the car is running as efficiently as possible, and more importantly, there are no leaks that may drain your tank. If you want to increase your mileage, you don’t do it by pumping in more fuel than your tank will carry - you look for areas where you can minimise leakage, and increase efficiency.

What does this mean for your marketing?

The fuel represents the investment you make in your marketing (paid advertising, networking, industry events, whatever else you do to bring in leads), the mechanics of the car represent your marketing and sales process (how you convert a lead into a prospect), and the output represents the number of clients that you get out the other end (clients signed, cash in the bank).

Creating a Solid Marketing Process

While no marketing process is 100% efficient (100% of leads converted to clients), the consequences of a leaky marketing process are more dire - and sometimes easier to address - than you may think.

We started working with a client a few months ago - this client’s business has been around for decades, and their monthly Google Ads budget is in the range of AED 30K per month. In addition, they ran several other lead generation activities, including a referrals-generating strategy, email marketing, posting on social media, and running free events with strategic partners. However, none of these activities cost quite as much as their paid online ads, and they could see from the stats that the ads were bringing in a lot of enquiries.

From the outside it looked great - hundreds of leads coming in, and sales people always busy. The challenge: single digit conversion rate.

In the first month of working together, we sat down and got them to crunch the numbers - not just looking at the input, but a detailed audit including the conversion rate from lead, to prospect, to client, and examining which channel they came from, at which points the lead ‘dropped off’, and what was the end result they were getting from their time and money.

The results were mind-blowing.

From the hundreds of enquiries they were getting through their paid ads, only a fraction were actually qualified into prospects, and even fewer ended up converting into clients. Apart from the 30K / month ad budget, if you take into account the number of hours the sales team were spending with each lead on the phone and in meetings, it added up to over AED 1m per year! In comparison, generating referrals from existing clients (although much fewer in number) had an almost 100% conversion rate, took almost no investment, and converted with far less sales effort. By getting them to work on a referral-generation strategy, they started seeing double-digit percentage growth before the end of the year.

Results-Driven Marketing Strategy

Armed with this new information, the marketing team was able to make crucial strategic decisions that allowed the company to stop leaking resources, and start investing rather than spending. (Invest: pay out, make back over time multiples of what was put in. Spend: pay out.)

Tim Ferris writes in The 4 Hour Body: “In biological systems, exceeding your MED can freeze progress for weeks, even months.” What that means is: over-investing resources past the point of benefit may have negative effects on the entire system which will take a long time to undo.

How to get around this? Get really familiar with the numbers. Once you know your numbers, it’s a mathematics game.

The Marketing Numbers you Need to Know

We’ll run through a very straightforward example, just to explain the idea:

Example numbers:

• Marketing Investment: $5000
• Number of Leads: 100
• Cost per Lead: $50
• Conversion Rate: 20%
• Client Acquisition Cost: $250

If you run the numbers above, and figure out that it requires a $250 investment to get a client, what should happen if you spend $200 on marketing? Conversely, what should happen if you spend $500 on marketing? (Above assumes a linear result, which isn’t always true in the real-world, but this is an example). If we knew our numbers, we would invest in marketing in a heartbeat. But we don’t, so we throw money at ideas, at gut feelings, at new social tools, without adequately measuring which strategies are working and which aren’t.

Pro Tip: Run the above data for each of your current marketing strategies separately. Knowing your Lead Acquisition Cost (LAC) and Client Acquisition Cost (CAC) per strategy will provide clarity on where to invest, and the expected outcome.

To help you do this, download our free LAC and CAC Calculator here. 

And if you want to talk through how to best apply this in your business, get in touch.

Budgeting After a Tough Year

Budgeting isn’t the most pleasant thing to do. Having to justify why each department needs the money (“How much did you say???”) is disheartening enough in good times. Add a challenging previous year into the mix, and “getting budget approved” is now at the top of the never-again list.

But, there’s no good business without good budgets, and - like it or not - the conversation needs to happen. How, then, do you get the Management to approve your budget? 2021 was, for many businesses, a difficult year. The bank accounts are not exactly overflowing, and - while 2022 has started relatively positively - there is a lot of hesitation and concern.

As a business, you need to spend money to make money. And you, being the person responsible for your department / vertical / country, need to get the money to spend. Here are three steps, plus a bonus idea, for overcoming the hesitation that the Board or Management will have.

First: Take Ownership / Be Clear

Explain, with no ambiguity or finger-pointing, what happened over 2021. Nobody needs a reminder that there’s a pandemic going on - chances are, you’re going to have this meeting over Zoom. To the extent possible, pinpoint exactly what happened in the market, in the business, in your sphere of control. “Market dropped” isn’t good enough - get really specific.

If applicable, also identify preventable issues and reasons that may have contributed to results. Over-reliance on a single customer, overdue collections, operational inefficiencies - hindsight is 20/20, but not learning from experiences is 0/10. Whatever happened last year, happened. The least you can do is take lessons and implement them in future decisions

(Bonus: Read “Principles: Life and Work” by Ray Dalio. He gives a fantastic insight into how the practice of learning from experiences made him a billionaire).

Second: Be Responsible

Once you’ve identified what happened in the previous year, make your case about how and why this year would be any better. This isn’t about wild claims or bold predictions - just logical, data-driven insights into what is happening internally and externally, and how it can be channelled to benefit the company. If you were able to pinpoint some of the preventable reasons that occurred last year, go over what will be changed to overcome them in this year.

In good times, mistakes and oversights are accommodated and excused. In tough times, every penny counts. Your approach and plan should - to the extent possible - take into account every predictable eventuality, and weigh the costs of different outcomes. One of the most powerful in-house workshops we do with clients is the Pre-Mortem exercise, where we go over an incredibly wide range of potential challenges and pitfalls, and use that discussion to craft a winning plan. Even in the massively challenging year we just went through, most clients made even more profits than they had in the previous year. (If you’d like to learn more about the Pre-Mortem exercise, please get in touch.)

Third: Hold Accountable

You’ve identified what went wrong, and have a plan of action to get back on track. But, after you’ve delivered a killer presentation, there will always be that one Board/Management member who says “Well, all that’s great - but how do we know it’s going to work?”. And, they’ve got a point - how do they know that it’s going to work, without losing out on irrecoverable time and opportunity?

This is where real-time (or, at least as real-time as possible) KPIs come into the picture. KPIs should give you live updates, actionable insights, and be future-focused. If your KPIs are not providing the above, you need to revisit your KPIs (Have a quick read of this article on KPI setting if you’d like to learn more - What are the Five Most Important Key Performance Indicators). Prepare and present the metrics that will show impact and growth in real-time. Let the Management know what the metrics will show, what the target range you’re aiming for is, and what the early warning signs will be. This will give them the confidence that you’re on top of it, and - hopefully - will get that approval signed!

A Bonus:

When budgets are presented, they’re usually annual. As an example: you ask for $44,000 to spend on paid online advertising, like Google Ads. Management is wary of losing money, you’re convinced it’s the only way forward. Here’s a suggestion: break down the budget.

An example sentence from your presentation:

“For this year, we’re targeting customers that will be looking for us online. To this end, I propose we increase our focus on Google Ads. Our average Lead Acquisition Cost is $235, and - on average - we convert 32%. That gives us an annual target of 187 leads, and 59 clients. Our average project value is $145,000, which gives us a total of $8.55m in new revenue this year. My suggestion is to split the budget into quarters, with the understanding that, if the marketing investment delivers on its target, the next 25% of the budget is released. So, for the next few months, I’d like approval on an advertising spend of $11,000, and the metrics we will be tracking will be (KPI1), (KPI2) and (KPI3).”

{Break for applause from your audience}

By the way, if you don’t know your Lead and Client Acquisition Cost, use this calculator in this post to help you identify it: Role of Client Acquisition Cost in Your Marketing Strategy. The incremental budget approach will allow you the resource to move forward, and will provide the Management the clarity to be able to approve the ask. Rather than a lump-sum approval, this will be more stepwise - give; prove; give; prove.

In the event that you are the owner of the business, feel free to forward this to your team so they can prepare better!

As always, if there is an area in which the business has potential to go further, or if you’re facing a set of challenges that is slowing you down, please get in touch. A problem shared is a problem halved.

Business Consultants & Coaches in Dubai: What You Need to Know

In the UAE, the terms Business Consultant and Coach are used quite interchangably, and it's important to identify what specifically you are looking for.

One major difference between the two is that business consultants usually focus on their own niche area of expertise, such as business set-up, IT, marketing, financial management, and so on. Business coaches, on the other hand, have a broader view and are sought to massively increase revenue, profits, and company performance.

A second difference is in the process of implementing change. A business consultant’s role is to identify the issues and recommend the solutions, often resulting in a strategy document or report.

The best business coaches will use a much more collaborative approach with their client. Beginning with identifying the issues, gaps, and potentials, and providing a framework and proven system to effect positive change in those areas, a business coach will work closely with the client through the implementation of the solutions, in a way that gives the client greater control, autonomy, and confidence.

Both business consultants and coaches will improve your business model, provided they possess the right specialties and experience. The first step is to understand what it is that you need based on your requirements. Do you need help in a particular area of your business, for example financial reporting, and need someone to look into it? Or, are you looking for more to make more money, increase productivity within your organisation, and help you achieve sustainable growth? If it’s the latter, or if you’re now curious, read on to know more about why the most ambitious entrepreneurs invest in a great business coach.

Kaizen: The Leading Business Coaching Firm

At Kaizen, we provide a tailored approach to coaching with guaranteed results. We focus on your people and processes, bringing out the best in your company just as we have done for over 1,450 other businesses worldwide.

Through our coaching methodology, and using the battle-tested Kaizen System, we have helped our clients meet 100% of their leadership goals, with a massive increase in productivity and profitability. Over 2,000 new jobs have been created as a result of the growth we have seen clients achieve, and our clients have seen their revenue grow by an average of 41%, year on year.

In 2021 alone, despite the ongoing difficulties, over half of our clients were more profitable than in the year preceding the pandemic. Throughout this challenging time, Kaizen’s award-winning business coaches supported clients in the creation of 74 jobs, witnessed the generation of 337,000,000 AED in cumulative revenue, and raised 72,700,000 AED in funding. Never resting on our laurels, we expect to increase these figures even further for our clients in 2022 and 2023.

Want the Same for Your Business?

At Kaizen, we help your business make money, move faster, and work without being reliant on you. By targeting the root causes - as opposed to just treating the symptom - we ensure business growth and vitality throughout our coaching engagement and beyond.

Clarity in communication is important to ensure problems are accurately identified and attended to, and at Kaizen, we let you know exactly what to expect from business coaching. If your business will benefit from getting guaranteed results from tailored business coaching, feel free to reach out to us for a chat.

How Hard Is It to Spot the Leak in your Business?

In business, it’s often the same. The failures don’t happen because of a large, unavoidable occurrence; rather, they happen because a small, easy-to-miss detail was overlooked. A mistake in how something is priced. A drop in performance. A broken link on the website. Over time, these leaks add up to large-scale challenges and losses.

The question, therefore, is: how do you spot the leaks?
There are three things I’d propose you do regularly. 

First: Get your metrics in place

Secondly: Keep your accountant close

Thirdly: Change your perspective

6 Lessons to Learn from Business Coaches

A business coach is a professional advisor who uses their entrepreneurial, training and management experience to help you identify your company’s challenges, set specific targets, and hold you accountable for achieving these goals. It’s important to note that business coaches deal with companies of all sizes, as there is a misconception that only start-ups consult business coaches. At Kaizen, the average age of clients is over 5 years, and several clients have been in business for close to two decades. Kaizen’s business coaches work closely with the Management and Executives of small, medium and large businesses, at whichever stage of their business journey they are in.

In tumultuous and volatile times like these, where there is so much uncertainty, having a business coach becomes particularly beneficial. Your Kaizen Business Coach will support you in identifying the greatest opportunities and challenges, keep you aware of what is happening outside your industry, focus on immediate and future actions you can take to maximise impact, and ultimately accelerate your business success.

So what might clients take away when working with their Kaizen Business Coach? Whether you’re a large business or a young, scrappy start-up, the following six lessons can be taken on board to start boosting your success.

6 Vital Insights from Your Business Coach

Kaizen’s Business Coaches work very closely with company owners, managers and entrepreneurs, always tailoring solutions to fit their needs. While this level of specialisation can only be garnered through an understanding of your individual company, we have outlined below some of the broader techniques that can be applied to benefit a wide range of companies.

1. Define - and execute! - S-M-A-R-T Goals

You may have a long list of to-do’s or even aspirations, but the key to achieving these is to clarify these goals and their impact on your organisation. So how is this done? Your SMART goals are generated through questions such as these:

• Specific

When writing your goals, it’s important to clearly detail what you want, but also what the measurement of success will be, and what metrics will be used to track progress.

• Measureable

The goal needs to be objective, not subjective. How will you measure your success? Analytics, sales figures, scores. It’s important to take ongoing snapshots of these so that you can effectively measure your progress.

• Achievable and Action-oriented

Is your goal realistic? Can it be simplified into smaller, more actionable steps? At the same time, is it something you can work towards? Or will it involve waiting on elements that you may not be able to control?

• Revelant

Should this goal take priority over others? And if not, is it still necessary to start at this time? Prioritising between a never-ending list is a skill, and - done well - is a game-changer for busy executives. Not all goals should happen immediately, but it’s still worth writing them down so they are not forgotten at a later date.

• Time-bound

Defining a deadline helps minimise procrastination. Knowing how long something will take will help with prioritisation. Some goals take a long time, and breaking it down into time-bound milestones helps accelerate achieving them.

By the end of this process, you will have made yourself an actionable roadmap that is easily transferred onto a calendar. You should be clearer on your priorities and aware of what is -- and isn’t -- important right now.

2. Identify Loopholes

Take a close look at your business processes, including sales, operations, and financial management. If one or several are not operating as you would like, now is the time to go in and identify why. Once you know what the problem is, you can decide how to address it.

3. Spot and Plug Gaps

Gaps exist in process and in people. Assuming you identify the loopholes in the process, work proactively on closing them one by one. Additionally, having the right people in the right place often results in problems being taken care of quickly, so tactical hiring could be worth considering where operational or performance issues are arising.

In order to find the best fit for your company, Coach Murtaza Manji recommends hiring based upon their cultural fit within your organization, rather than their level of skill. Skill, after all, can be gained, but the integral values and motivations of an employee cannot be changed. Ali Moledina, Managing Partner (Kaizen Consulting Group USA), works extensively with his clients on building a winning team, which has positioned them as leaders in their industries.

4. Hyper-Focus on Productive Tasks

Time management is improved through focusing on tasks that produce results, and reducing or delegating the tasks that waste your time. It is particularly important as a business leader that you remain focused on steering the company, yet many become caught up in the day-to-day and lose sight of the bigger picture. Your Business Coach will always challenge you when you start putting time towards tasks that won’t move you a step forward!

5. Improve Communication Across the Board

It can be difficult to get a team to talk openly and honestly to each other, and mistakes are often made when team members feel pressured. No one can know everything, but establishing a supportive and communicative environment will encourage problem-solving to occur amongst your employees. This also reduces the number of problems that need your attention.

Encouraging collaboration and proactive problem-solving not only boosts productivity, it also creates a positive company culture. Through continuous performance management, team coaching, constructive criticisms, and honest but empathic feedback, your team will start to produce better quality work and enjoy improved co-working relationships.

6. Making Sound, Measured, Smart Business Decisions

As a business owner, you are bound to have a long list of tasks, questions and decisions that all seem to need your attention. On top of this, it can be challenging to keep a track of all of this while still staying on top of changes in the micro and macro environments. By far, the most impactful strategy is to bring in a culture of coaching.

Coaching maintains an overarching view of your business for each member of the team, helps identify what is important and when, and ultimately leads to more clarity in your business decisions. Coaches also act as a soundboard to bounce ideas off, helping you to make more informed and inspired decisions, with a better understanding of their consequences.

The best way to do this is to bring in an experienced, qualified Business Coach to work with the CEO/Owner of the business. The pressure of running a business can become overwhelming, so having the personal support of an experienced professional is beneficial on a personal level, as well in business. Ultimately, your Coach will always maintain an overarching view of your business, goals and obstacles, and support you in creating an achievable action plan that works for you.

In Conclusion

The techniques above are a great way to get started on clarifying your goals, more effective time management and making better decisions, however it requires a great deal of dedication and persistence on your part. As a shortcut - and to exponentially increase the benefits - those who wish to upgrade their business skills, be held accountable to their goals and consistently make better business decisions should seek the assistance of a qualified Business Coach.

However, it is also important to ensure your prospective business coach is the right fit for you. Your Coach should be easy to talk to, with a good understanding of your vision, industry and company culture. When you find the correct fit, hiring a Business Coach is the easiest way to unburden yourself from unnecessary stress and set yourself up for success.

If you’re looking for the kind of Business Coach who will get you big results fast, click here to get in touch, or give us a ring on 800 - COACH (26224).

ROI: Is Business Coaching worth it?

Any investment made needs a good return to make it worthwhile. A business investment into coaching is no different: there needs to be strong, quick ROI to justify the investment. Time is money, and you need to see how quickly and effectively your coach can get you results.

Time, money and manpower are all limited resources in any business setting. However, in a competitive and fast-moving economy like the UAE, these resources become even more valuable. Businesses are always under pressure to do more with less. You must enhance your performance while elevating that of your team.

Read: Leadership How-To: Building Your Personal Infrastructure

In a game with such high stakes, efficiency is crucial. Here are some questions you are probably asking yourself:

• How do we optimise our resources?
• How do we raise our game?
• How do we increase market share?

There are a lot of tools to help you – from books and seminars to training and consultancy. All of these will cost you either in terms of time (more mistakes, trial and error, take longer to reach your goal) or money (higher investment). Business coaching is one of the most effective and proven solutions to help you overcome current challenges and to strategise for the future, and while the initial investment can seem high, the return on investment is guaranteed to be long-term and sustainable.


Just as you don't see a top athlete, no matter how gifted and hardworking, succeeding without an amazing coach, the same applies to business owners and managers at all levels. Having someone in your corner to challenge you, provide personalised support, and a needed outside perspective can give you the extra edge to succeed.

Coaching Basics: Expectations & Results

There is a misconception among some that business coaching is only for start-ups or for businesses that are struggling. Although it is true that these types of enterprises can benefit from business coaching services, established businesses often have more to gain, as they have the resources to be able to do more - and to implement strategies and bring about change quicker and more effectively. Coaching is suitable at any stage of a business lifecycle, whether a start-up or a well-established company, as it bridges the gap between your personal goals and those of your company. Interestingly, the profile for Kaizen's elite 1:1 programs are businesses that have been around for over 10 years, have at least 25 employees, and over $11m in annual revenue.

A business coach is typically a person with a versatile background, combining experience in training and management, with the ability to help you identify your challenges, set your targets and hold you accountable in a way you would not be able to do on your own. At Kaizen, our coaches are experienced entrepreneurs themselves, having started and grown multiple companies in various different industries.

What should you expect from your business coach?
 What does a business coach do?

1. Push you far out of your comfort zone

Growth doesn't happen in the comfort zone, and comfort doesnt occur in the growth zone. A business coach will not only challenge you and your decisions, but will also dig deep into the areas of the business that are 'not working' and encourage you to tackle those challenges head on. 

2. Personalised support + Proven systems

An experienced business coach will have the ability to draw insights from their other clients and overall business landscape, whilst also understanding the specific challenges within your own industry. Drawing on their experience, a good business coach should be able to demonstrate their process of improving businesses through their system, which encompasses the breadth and depth of the business challenges and opportunities you are working with.

3. Direct, honest feedback and Accountability

 The role of your coach is to provide honest (sometimes brutal! but always constructive) feedback and advice. A business coach will remind you of the commitments you have made to yourself / your business and spur you forwards. 

4. Tangible, measurable results

A business coach bridges the gap between the often overly theoretical world of consultants, and the unpredictable, ever-changing reality of business. Your coach will help you identify the challenges, strategies, solutions and improvements that will work in your unique business circumstances. At Kaizen, when you start on a business coaching program, we discuss the outcomes that you can expect, and these are guaranteed, meaning they are measurable, tangible results that you will definitely see.

5. Be a confidante

The key to having an effective coaching relationship is clear and open communication. Your business coach’s first loyalty is to you, and his/her objective is to enable you to succeed by helping identify your weaknesses and strengths, overcoming the first and building on the second. A business coach is someone you can speak to openly, and be a sounding board when you need them to be.

6. Expanded Network


A business coach is your advocate, both inside and outside the organisation. When you hire a qualified and experienced coach, your range of contacts expands exponentially. From being connected to like-minded business owners and entrepreneurs, to having a network of tried-and-tested suppliers and service providers, you immediately gain access to a solid network that will help you grow.

Business Coaching in Dubai Works: Get the Support You Need Today

Still wondering about how coaching can benefit you and your business in Dubai? It’s difficult to know unless you really try it. At Kaizen Consulting Group, we support hundreds of companies around the world to create a culture of accountability and strong leadership, and to develop a clear strategy for future growth. Among the brilliant results we've seen, companies have experienced rapid, sustainable growth, a future-focussed innovation strategy, and double-digit increases in revenue and profits year-on-year.

If you’d like to see the same for you, get in touch with us to learn more. We’re happy to answer any questions you may have, and arrange a free business insight session with one of our award-winning coaches, so you can see whether coaching would work for you - click here to contact us now.

Timely Financial Reporting: Three Tips

Average companies usually have these in common:
 

• They have a bookkeeper or an accountant (no Financial Controller, Director, or CFO); 
• The financial reports (not just outstandings) are prepared 2-4 times per year - usually within 30 days of end of period; 
• These reports are actually reviewed by the owner/manager within 15 minutes every few months - and usually more than 30 days after the end of period.

If you do more than the above, including reviewing finances regularly (and I don’t just mean overdue receivables), then congratulations – you’re doing better than most! But if you’re not quite there yet, here are three ways to make your financial reviews more beneficial.

The Rewards of Reporting

Granted, finance is not the most exciting topic in business, but it is definitely among the most essential. Most entrepreneurs don't prioritise finance because it’s boring, it’s stressful, and it’s all in the past. They would rather be working on new products, pushing sales, and putting out fires.

You likely understand – at least theoretically – how important finance is in business, but perhaps you haven’t discovered the full benefits of financial reporting yet. And I’d like to propose a reason for that: you’re looking at your financial data too late.

There’s no excitement in looking at something weeks or months after it happened. If you want your numbers to tell you an exciting story, you need to hear it in real-time (or as close to real-time as possible). Timely financial reporting is the name of the game, and ’timely’ really is the key factor here. One of the best performing strategies we work on with clients is streamlining and speeding up their reporting processes. And here are three easy-to-implement tips to initiate those improvements.

Three Tips for Timely Financial Reports:

1. Set a hard deadline

Set your financial report date and stick to it – chopping and changing the date can affect the accuracy of your reports.

“End of month” may mean the report is prepared by the 5th/6th of the next month, but getting it in by the 15th/20th of the next month is ridiculous. You may mess up 1-2 months of reporting by changing the deadline (moving from 15th to 1st might mean less invoices recorded in month 1 and more in month 2), but you’ll get back on track within the quarter. Hard deadlines mean no excuses, and no exceptions.

Commit to the deadline. Communicate it to the relevant team. Hold them to it.

2. Empower and Delegate

Your Head of Finance is in the position to look over your finances, and as such it’s important that you give them the autonomy and access they need to perform their job well. This may be an information requirement, or addressing a communication bottleneck, but it should be within their scope to demand information from anyone within the company.

This also means that the Finance team should not be ‘looked down on’ by the rest of the company. There is an unfortunate prevalence of finance not being in the cool club, and this will impact the benefit that they can bring to the company.

3. Ongoing Reporting

By frequently updating your financial data into pre-prepared templates throughout the month, you alleviate some of that end-of-month pressure. Entering numbers weekly makes the report a compilation exercise, rather than a daunting, labour-intensive task that is due alongside all those other deadlines.

Not only is this technique faster and more efficient, it can also be easily delegated – and not just to the finance team. Each member of your company can (and should) enter their department data as required, allowing the finance team to focus on control and reporting, rather than invoice chasing and data entry.

Bonus:

If you dont already have a system set up, please look into getting one arranged. We - and a number of clients - use Zoho Books, as well as some of the other products in the Zoho suite.The other common options are Xero and Quickbooks

Financial Reporting Going Forwards

Timely and accurate financial reporting is essential to your business’ successful operation. It provides the CEO, Executives and other Decision Makers with a deeper and more accurate understanding of operational issues. Financial reporting should be the basis of informed decision making and planning. A lack of financial visibility is a handicap to yourself and your business.

At Kaizen, we’ve worked with over 1400 businesses in the last 11 years, identifying how to improve financial reporting systems and show you how to operationalise insights gleaned from reporting to make quick and effective business decisions. Let’s talk about how much more money your business can make.

Budget vs Actual: The Golden Ratio

Note before reading:

Category 1: No (real) budget created;
Category 2: Budget created, not reviewed;
Category 3: Budget created, reviewed regularly.

If you are in the first or second category above, the ideas in this article may be a stretch. If you are in either of the top 2, and want to move into the third, get in touch. You’ll be on top of your finances within 2 weeks - guaranteed.

_________________________________________________________________________


Budgeting is vital, and accuracy is paramount, when you’re trying to manage cashflow. If you budget incorrectly either way, you could have a challenge.

Under-budget: You need more money than planned, now you’re scrambling to raise cash for managing expenses.

Over-budget: Too much resource tied up, could have been used better elsewhere. Other areas had to plan around a smaller budget, potentially losing out on a lot of benefit.

Setting a budget that is regularly reviewed is tough enough (and not every business even does this). What would the next level up look like? Real-time review of Performance against Planned, and taking proactive and/or remedial actions.

Enter: The Golden Ratio. This is my favourite financial tool (and it goes beyond strictly finance, too. I’ll explain that shortly), and is surprisingly easy to implement. The Ratio is Budget v/s Actual.

On the face of it, it may seem overly simple. But the usefulness of this tool is in the timing. If you could see, in real-time, where the business was getting dangerously close to a budget limit, you can work to manage it proactively, instead of finding out when your team comes asking for funds, or - even worse - after-the-fact. On projects, through departments, across multiple time-periods, this Ratio can help show where assumptions were right or wrong, and help mitigate problems in real-time.

How does it go beyond finance? You can use this tool to track the ‘budget’ for almost any resource in the company. Some examples are:

1. Time (per project, per customer, overtime) allocated v/s utilised
2. Material (usage, inventory management, shortage, defect) allocated v/s utilised
3. Issues or complaints (contingency planning, manpower or personnel requirement, supplier or customer complaints) expected v/s real

How do you start using the Golden Ratio?

Personalise:

Ensure that every department develops their own ‘budgets’ to track (remember, it doesn’t have to be just money).

Populate:

Set the process in motion so that departments populate data categories accurately and regularly. This can be run daily or weekly, but not less frequently than weekly (unless the number doesn’t change in between).

Publicise:

Share the budget v/s actual variances with the team. This will have a huge impact on accountability, and will help to ignite a competitive spirit to keep the numbers where they need to be.

There are many tools available to help you do this. The simplest way is to use Excel, developing a simple spreadsheet, with a date, metric, budget and actual numbers. At Kaizen, we (and a number of our clients) use Zoho, which can provide even better visibility. To get started properly, you need to be monitoring the right items or categories.

Want to accelerate your success on this initiative, and get a better handle on your money? Get in touch, and let’s see how much more your business can do.

The Hybrid360 - Feedback, Done Different

To illustrate, let’s look at an example when results may be misleading.

The Participant: a subject matter expert, in a highly technical role.

The results of the 360 show a consensus towards the need for the Participant to delegate more. 

Don’t Confuse Criticism with Feedback!

If you are a small business owner who is leading a team, then one of the most important skills that you need to develop is how to provide effective feedback to your team members. If you are not providing feedback in an appropriate way, then there is a risk that you are not getting the best out of your team.

The real challenge is making the distinction between criticism and feedback. Because when our team members are not performing as well as they should be, it's really important to be able to provide feedback and not criticize. In the video below, I show you the difference between feedback and criticism.

The difference between criticism and feedback

Criticism is when you dump your frustration or your anger out on a team member, it's very general, it can often turn into blame on an individual, and it focuses on the person as opposed to the problem.

Whereas feedback actually presents the need for your team member to change and is specific to a particular situation. The objective of feedback is to focus on what needs to change in the future to work towards a solution.

An example of both

Let's say you have a team member called John, and you're not happy with their sales numbers. An example of Criticism would be.

“Hey, John, I'm looking at your numbers here, and they're just no good, what is going on, you don't come prepared to the sales meetings. You really need to work on this, I just kind of get the feeling you don't care about this organization. You don't care about this team. And hey, look, if you're not happy here, then there's plenty of other people that are willing to take your job”.

Feedback might look like this.

“Hey, John, I'm looking at your sales figures. and your conversion. I can see that your conversion percentage is much lower than the other team members and what we expect as an average as an organization. I've observed a few of your sales meetings and what I'm finding is that your presentations are not really tailored towards the client. Therefore, I'm going to ask you to really go into these meetings prepared, make sure that you have done your research about the company. Make sure you understand what their pain points are and instead of just using one of our company presentations, I would like you to adapt the presentation to the client's needs.”

If you would like some more details on how to structure a feedback conversation, feel free to message me and I will happily send you a guide on how you can structure your feedback to make sure you're getting the best out of your team.

Overcoming the Big ‘BUT’

So you’re on the final step of your sales process with a prospect.

They’ve been telling you how much they love your product and service up until now.

They say they really want what you are selling.

Then they say the words you dread…

“This is great, BUT... it's too expensive." OR "Now is not the right time.”

• What do you do now?
• Do you offer a discount?
• Do you explain the benefits again?
• Or do you just walk away?

Objection handling is a key skill that every entrepreneur (and their sales team) should learn, BUT most entrepreneurs don't because they don’t want to seem too “salesy” or pushy. As a result, they’re unable to grow their business to the level they want.

So what is the key to overcoming the objection? It is “coaching,” and I’m not talking about me (although that will certainly help!). It’s about coaching your prospect through their issue and helping them make the best decision for themselves. If you genuinely feel they can benefit from your product or service, it’s up to you to help them see that. If you don’t challenge them, you’re doing a disservice to your prospect and your market.

My suggestion to every entrepreneur is as follows:

• Write a list of the most common objections that you receive. Most businesses have about 3 common objections that they often receive.
• Ask follow up questions. Questions put you in the driver’s seat, and they allow you to understand your prospects on a deeper level.
• Offer a solution to their objection. If you can find a solution to their objection then why would they not want to work with you, right? Be ready with a solution and guide them through that journey.

Here’s an example of how I coach my prospects who initially object to coaching:

Objection from Client	My Follow-up Question	My Challenges to the Question
I don’t have time for coaching right now.	How many hours are you working a week? Where are you spending your time? If you could gain an extra 2 hours a week, what would it mean to you?	One of the first things I do with a client is focus on time management. On average, a client gains an additional 2-3 hours a week from this session. I can work with somebody else in your organization who can implement the strategies.
I need something specific for my industry.	Why is that important to you?	If you look for an industry-specific coach, you’ll get solutions that your competitors are using. By working with me, you’ll get a unique, tailor-made solution. We have the ability to take best practices from other industries and apply it to your industry.
I don’t feel comfortable spending this much on coaching.	What ROI would you need to see to justify the investment?	Let’s discuss the value of coaching and explore if the ROI will pay for itself. We guarantee to bring you results and achieve progress to clearly defined goals.

These are just 3 examples of how I handle objections with my prospects. Whilst I always aim to achieve a balance, being a coach is about challenging clients’ mindsets and setting them up for success. For me, the coaching starts long before a client ever signs an agreement with me.

To your success!

Ali

3 Tips on Reducing Accounts Receivables (and How to Get Paid)

For small to medium businesses, collecting payments from customers (usually bigger ones!) can be a challenge. Accounts receivable (AR) is money owed to you by customers, and not collecting payments on time has a massive negative impact on your business’ cash flow.

Here are 3 tips on reducing your accounts receivable.

1. Create payment terms and stick to them

The first step to reducing AR is to create payment terms and stick to them. This means setting the payment due date, payment methods, and late fees. Be sure to communicate these terms clearly to customers and include them in contracts and invoices. This will help ensure that customers are aware of the payment terms and are more likely to pay on time.

2. Utilise automated payment systems

Automated payment systems can help reduce AR by making it easier for customers to pay. Automated payment systems allow customers to set up recurring payments, which can help ensure that payments are made on time. Additionally, automated payment systems can be integrated with accounting software, which makes the accounting process more efficient. Most banks have something in place, speak to your RM to learn more.

The other option is to partner with payment solution providers who would give you the total amount upfront and collect from the client incrementally. This is a fast-growing area, get in touch if you’d like to learn more.

3. Follow up and be proactive

Finally, it’s important to follow up on late payments and to be proactive in collecting payments. This means sending out reminders and follow-up emails and calls when payments are overdue. Additionally, offering incentives to customers who pay early can help encourage timely payments.

We had a client who offered a discount if the invoice was settled prior to the due date, as well as a late penalty if it was settled beyond the agreed time. The impact was tremendous: most of the good clients paid early, which massively helped the cash flow. By following these tips, SMEs can reduce their AR and improve their cash flow.

                              Also read "How to Manage your Cash Flow Effectively"

The importance of having clear payment terms can not be overstated, and utilising automated payment systems can help make the payment process more efficient.

Finally, being proactive and following up on late payments can help ensure that customers are paying on time.

4 Suggestions for SMEs to Get Better Pricing from Suppliers

As a business owner, you know how important it is to get the best pricing from your suppliers. While it can be difficult to get the lowest prices, here are 4 suggestions to help you secure the best possible deal from your suppliers.

1. Establish a Long-Term Relationship

Developing a long-term relationship with your suppliers is key to getting better pricing. When your suppliers know that you’re not looking to jump ship and that you’ll be sticking around for the long haul, they’ll be more likely to give you better pricing. This would include getting to know them better, working together on marketing strategies, discussing long-term plans with them, and inviting them to join on brainstorming sessions for business improvement.

2. Negotiate Volume Discounts

Many suppliers offer volume discounts, so it’s worth asking for them. As your business grows, you’ll definitely be able to negotiate bigger discounts. In the meantime, give them a 6 or 12 month plan, so they can see you have the capacity to take on more.

3. Take Advantage of Bulk Purchasing

If you’re able to purchase in bulk, it’s worth taking advantage of this. Many suppliers offer discounts for bulk purchases, so it’s worth looking into this option. Depending on your line of business, it may be worth speaking to other businesses who are not competitors to come together and create a buying group. That way, everyone wins.

4. Leverage Technology

Technology can be a great way to get better pricing from suppliers. There are many online platforms available that connect you with suppliers and allow you to compare prices and find the best deal, and then using that information in price negotiations.

Pricing is a delicate game, and getting good cost prices is even more important than setting selling prices. Get better at this element, and business becomes a lot easier and more profitable.

Getting a Business Loan in the UAE: Top 5 Tips to Get your Loan Approved

If you’re looking to launch or scale your business in the UAE, getting a business loan is a great way to get the capital you need to get your venture off the ground and accelerate growth. But before you apply, you need to understand the process and the different tips and tricks that can help you get your loan approved.

Here are the top 5 tips to keep in mind when getting a business loan in the UAE.

1. Have a Clear and Detailed Business Plan

To get a business loan in the UAE, you need to have a well thought out business plan that outlines your business’s goals, budget, and strategy. Having a clear, concise plan with well informed and realistic projections, budgets, and data will help the loan officer understand your business’s needs and goals, and make it easier for them to approve your loan.

2. Have Good Credit

Credit is a major factor in getting a loan in the UAE, so it’s important to make sure your credit score is good. Make sure to pay your bills on time, keep your debt-to-income ratio low, and check your credit report regularly to ensure accuracy. You can obtain a credit report for your business through the Etihad Credit Bureau
.

3. Gather Comprehensive Documentation

You need to provide comprehensive documentation to the loan officer to demonstrate that you are a responsible borrower. In addition to a solid business plan, this includes your financial statements, tax statements, references from suppliers about their relationships with you, and any other documents that provide an accurate picture of your financial situation.

4. Talk to a Financial Advisor (If You’re the Sole Proprietor)

Before you apply for a business loan, it’s always a good idea to talk to a financial advisor to make sure you are making the right decision. An experienced advisor can help you understand the nuances of the loan process and provide valuable advice on which loan is best suited to your needs, particularly when it’s your name on the license.

5. Shop Around

Don’t settle for the first loan you come across - even if it’s from your own bank. Shop around and compare the different loan options available to you. This will help you get the best terms and rates possible, ensuring that you will get the most out of your loan. Remember to look at alternative sources of funding too, to compare the pros and cons. If you’d like to learn a bit more about the options available, please get in touch.

Following these tips will help you get your business loan approved in the UAE. Make sure to do your research and evaluate all your options to ensure you make the best decision for your business. Good luck!

How Can a Small Business in Dubai Create Fresh and Engaging Social Media Content Without a Big Budget?

Creating engaging social media for SMEs in Dubai can be a challenge, especially when working with a limited budget. But, with the right mix of creativity and strategy, you can create fresh and engaging content that will attract new customers and help you stay connected with your existing customers.

Here are 6 tips to help you create fresh and engaging social media content, without a big budget:

1. Talk To Your Audience

Before you start creating content, it’s important to know who your audience is and what they’re interested in. You’re going to waste time trying to engage everybody, so focus on what resonates with your community. By understanding your audience’s needs, wants, and triggers, you can create content that speak directly to them.

2. Leverage User-Generated Content (AKA: get people to write content for you)

User-generated content is an effective way to create engaging content without spending a lot of money. One of the easiest ways to do this is by asking your customers to share their experiences and feedback about your product or service. You can also use customer photos and reviews to add more authenticity to your content.

3. Use Branded Visuals

Visuals are a great way to capture attention and create a memorable experience for your customers. Create visuals that reflect your brand’s personality and include compelling captions. This includes using your brand colours consistently, going beyond just the logo, and showcasing your product.

4. Tell Your Story

People love stories, so tell yours! Share stories about your brand, your customers, and your employees. This will help people connect with your business and feel more invested in it. Examples of stories can be: customers enjoying the product, the development journey, behind-the-scenes of the team at work…get creative with this!

5. Repurpose Content

If you have limited resources, repurpose content that you’ve already created. You can repurpose blog posts, videos, podcasts, and more to create fresh content for your social media channels. You can have a few related blogs turned into an e-book, for example, or make a video series out of the most popular videos.

6. Collaborate with Other Brands

Collaborating with other brands can be a great way to create fresh and engaging content without spending a lot of money. Reach out to complementary brands that share your target audience and collaborate on content. These would be companies that sell to your target market but are not your competitors.

Start with these 6 tips, and see how far you can go. You can create fresh and engaging social media content without a big budget. So get creative, experiment, and most of all, have fun!

What Are the Top 3 Methods Venture Capitalists Use to Value Businesses for Acquisition?

"Business Valuation" is the general term for determining the current "worth" of a business, by using quantitative and qualitative measures, and evaluating all the elements of the business. A business valuation would probably cover the management of the company, the current and future revenue, and the value of the tangible and intangible assets.

Why would a business owner want to do a valuation of their business? Businesses are valued for a number of reasons: you may have a potential buyer, or you want to get ready to start having acquisition conversations, or because you're making some big moves and want to have everything in order.

Assuming you're talking to a firm that wants to acquire your business, it would be helpful to know what you can expect. When it comes to valuing businesses for acquisition, venture capitalists (VCs) use a variety of methods to determine the value of a business. While there is no one-size-fits-all approach to valuing a business, the most common methods VCs use are:

• Multiple of Earnings
• Market Comparables
• Discounted Cash Flow

We'll take a look at these, and some steps that businesses can take to improve their valuation.

1. Multiple of Earnings:

This is one of the most common methods VCs use to value businesses for acquisition. The Multiple of Earnings method of business valuation is a way to estimate a company's value based on its past financial performance. The earnings (income or profit) of a business are used to value a business in this multiple method. By the way, the terms “Earnings”, “Income”, and “Profit” have essentially the same meaning.

Depending on what is included, earnings can be calculated in different ways. At which point do you deduct taxes? Does the calculation include non-sales income like interest? In most cases, EBIT (earnings before interest and taxes) is the measure used in this measurement, and other times EBITDA (Earnings before interest, taxes, depreciation, and amortisation) is used.

This method relies on the premise that the value of a business is equal to a multiple of its past earnings. The multiple is determined by comparing the company's financial metrics to other similar companies. For example, a business with a current earning of £1 million and projected earnings of £1.5 million could be valued at four times its current earnings, or £4 million.

To maximise valuation:

To maximise the valuation under the MoE method, a business should strive to increase its profitability, and reduce its operating costs. Additionally, focus on increasing cash flow, reducing debt, and diversifying revenue streams. All of these will boost the earnings in the financial reports, and help the company valuations look strong.

2. Market Comparable:

VCs will often look at the market comparable of a business to determine its value. The Market Comparable method of business valuation is a valuation technique that uses the values of similar businesses in the same industry to determine the value of a target company. This method compares the financial and operational metrics of similar companies to arrive at a reasonable value for the target company.

To maximise valuation:

Businesses being valued through this method can maximise their valuation by refining their financials and operational metrics to align with those of the companies being used in the comparison. Companies should also focus on demonstrating the ways in which they are different from other companies, in order to set them apart and add to their value. Additionally, businesses should focus on increasing market share to increase the value of their company.

3. Discounted Cash Flow (DCF):

The DCF method is a more complex way of valuing a business. The Discounted Cash Flow (DCF) method of business valuation is a method of valuing a business by analysing its projected cash flows, discounted to their present value. It is used to estimate the value of a business today, based on the expected future cash flows it will generate. In simple terms, a discounted cash flow valuation is used to determine if an investment is worthwhile in the long run. The fundamental thinking of DCF is that £10 today is worth more than £10 a year from now. While this approach feels more complex, there are a number of free resources and calculators available to help you get a better understanding of how this works.

To maximise valuation:

To maximise your valuation if the investor is using this model, focus on increasing its future cash flows and reducing risk. This can be done by steadily and consistently increasing revenue, focusing on reducing costs, and increasing the efficiency of operations.

Additionally, the business can seek to strengthen relationships with existing customers, expand into new markets, and develop new products or services.

When it comes to valuing businesses for acquisition, these are the top three methods VCs use. Regardless of which method is being used, to improve your valuation, focus on improving profitability, increasing competitive advantage and market share, and reducing costs.

Top 5 Mistakes Businesses Make While Automating Internal Operations

Business automation is quickly becoming an essential tool for optimising internal operations and improving efficiency. However, with any technology-related project, there are always risks of failure and mistakes to be made.

Here are the top five mistakes businesses make when trying to automate their internal operations, as well as a checklist of what businesses should focus on before investing in automation.

1) Insufficient Research:

Before investing in any automation project, it’s vital to do plenty of research and determine which techniques and tools are the most suitable for your business. There are so many options available these days, from established players like Zoho and SAP, to customised providers that make bespoke software.

Make sure to research the various automation tools available, read customer reviews to get a better understanding of what’s out there, and always get a hands-on demo of the tool.

2) Over-Automating:

Too often, businesses try to automate as many processes as possible, and end up making their operations too complex. Automation should not replace the human touch, but rather complement it. Aim to automate only those processes that can benefit from automation and require the least amount of human intervention. Rule of thumb: if it is a repetitive task, and can be done faster, cheaper, and with fewer mistakes, it’s usually automatable.

3) Not Testing the Automation:

As with any technology-related project, testing is essential in order to ensure the system is working properly and meeting expectations. Just because the installation is complete, it doesn’t mean it’s road-ready yet. Make sure to thoroughly test the automation system before deploying it in production. The testing and sign-off should always be done by the person/team that will be using the software in their day-to-day work, not by anyone else. That way, any real issues can be identified and solved immediately.

4) Ignoring Security:

In today’s world, security is one of the most important factors when deploying any type of technology. There have been dozens of issues, lawsuits, and scandals due to poor security procedures and weak implementation.

Before investing in automation, it’s important to ensure that any data collected and stored is kept secure at all times. Security measures should also be taken to protect any automated system from potential cyber threats. Lastly, ensure the entire team is trained on appropriate security policies.

5) Neglecting User Experience:

Automation projects should always prioritise user experience. This means designing the automation system in such a way that it’s easy to use and understand, as well as being able to integrate seamlessly with existing systems. There is nothing more frustrating than having to use a new tool that is slower, clunkier, or less usable than the old. As a suggestion: have the person/team that will be using the tool involved heavily in designing the workflow and experience. That way, the tool will be optimised for those roles, and make the uptake much smoother and easier.

Before investing, tick off on the following checklist:

• Is this the best tool for what we require (not just ‘popular’)?
• What are we automating? Why is this a good idea to automate? How will it help?
• Where can it break? How can we protect the data and systems once this goes live?
• Where are the vulnerabilities? How easy is it to be hacked?
• How easy and intuitive is the interface? Would a new joiner be able to get up to speed faster using this?

If you’re looking at bringing automation into the business, download the Technology Implementation Checklist here.

What is Factoring and How Can it Help with Improving Cashflow?

Factoring is a financial solution that allows businesses to convert their accounts receivable into immediate cash. It can be used as an alternative to traditional financing and provides businesses with the ability to access funds quickly and easily, without having to wait for customer payments or apply for bank loans. With factoring, businesses can improve their cash flow while still being able to meet customer demands.

There are two main types of factoring: recourse and non-recourse.

Recourse Factoring

Recourse factoring involves an agreement between the business and the factor (the lender) in which any unpaid invoices will be returned back to the seller if they remain unpaid after an agreed upon period of time (generally 60 days).

Non-Recourse Factoring

Non-recourse requires no such agreement; instead, it simply means that once payment has been received from customers, all outstanding invoices have been paid off in full.

Additionally, there are also a few different methods available depending on what kind of services a business needs from its factor, such as: spot factoring, selective factoring, portfolio factoring and whole turnover/invoice discounting.

Spot Factoring

Spot Factoring is when you only need help with one invoice at a time – this could be useful if your company experiences sporadic demand or does not generate enough sales volume for regular use of other forms of funding like lines of credit or asset-based lending products.
Selective Factoring is when you select specific invoices that need quick payment.

Portfolio Factorings

Portfolio Factorings covers all receivables within your organization over a certain period.
Whole Turnover/Invoice Discounting gives you access to funds against all outstanding invoices up front, along with additional working capital options throughout the year as needed.

Factors generally charge fees based on either flat rates per invoice or percentage rates applied across entire portfolios - though terms may vary depending on factors’ individual policies regarding how much risk they are willing take on for each client relationship.

Fees may also include setup costs associated with setting up new accounts, as well as ongoing servicing fees which cover administrative tasks. Such as data entry and tracking customer payments against open balances due from customers who have purchased goods/services from your company but haven’t yet paid them off in full yet.

Overall, using some form of commercial finance product like Invoice Financing can provide companies with flexible working capital solutions. It is designed specifically around their own unique needs – allowing them more control over cash flow management by converting existing receivables into immediate liquidity without taking out further debt obligations through banks or other lenders.

If your business would benefit from being introduced to companies that can provide this service, and who are comfortable with higher levels of risk than traditional banks, get in touch, and we can make the introductions.

‘Whale Done’ - Review and Takeaways

I recently re-read 'Whale Done' by Ken Blanchard – a brilliant author, and I highly recommend all of his books.

The main idea of the book is to focus on positive reinforcement in order to achieve desired outcomes, rather than relying solely on negative feedback. This concept has been proven time and time again to be more effective for both employees and business owners alike.

The authors provide a multitude of examples from their own experiences that demonstrate how this approach can be applied in any environment, whether it's at home or work. They also discuss specific methods that can help individuals become better managers. Such as praising good behaviour instead of punishing bad behaviour, setting clear expectations with rewards when goals are met, and recognising effort even if results don't turn out as expected.

Overall, I'd recommend this book to anyone looking to improve their management skills or create a more positive working environment.

Here are three actions businesses can take to implement the Whale Done philosophy:

Provide consistent recognition for success

Create an atmosphere where employees feel appreciated by rewarding them with verbal praise or tangible rewards when they hit targets or exceed expectations. Even better, make it such that the team are recognising each other, rather than it being a top-down approach.

Focus on problem-solving

Instead of immediately pointing out mistakes made by employees, give them the opportunity to come up with solutions themselves, so they learn from their errors without feeling embarrassed or discouraged. In the long run, this has the massive benefit of having team members come to management with solutions and ideas, rather than just problems and issues.

Make use of “time-outs”

When tensions run high during meetings, allow team members a few minutes away from each other, so everyone can clear their heads before continuing the discussion in a calmer manner.

While there are no “silver bullets” in business, the ideas from Whale Done are relatively easily implementable, and the results are seen quickly. At Kaizen, we have worked with hundreds of businesses, and usually the largest improvements are seen when we start working with the whole team. People really do make or break businesses, and Whale Done is a fantastic approach at maximising the positive impact that they have.

Lack of Accountability? Here Are 4 Reasons Why

One of the most common challenges that businesses face is a lack of ownership and ‘buy-in’ from the team. This becomes apparent when team members don't take the initiative, do the bare minimum required by bosses or clients, and drag their feet when new ideas are being implemented.

While it’s easy to point and blame, it’s worth looking internally, and seeing if there is something that the management may or may not be doing that is driving and contributing to this culture. Based on experience, here are 4 of the top reasons why we’d see this behaviour in otherwise competent, intelligent, hard-working team members.

First: No buy-in to the company vision

This is the first, because it’s among the most common and most apparent. The lack of ownership is often linked to a lack of buy-in to company goals. When the overarching vision of a company is centered around being the industry leader or achieving a specific revenue target, employees who are not owners may struggle to find personal motivation to actively contribute towards those goals. Without a sense of ownership or direct stake in the company's success…why would they care?

As a result, they may fail to fully comprehend the significance of their individual contributions and the impact they can have on achieving those objectives, their commitment and dedication to the company's goals may waver.

Imagine a software development company with a vision to become “The leading provider of innovative solutions" in its industry. The CEO sets an ambitious goal of reaching $10 million in revenue within the next fiscal year. However, one of the senior developers, Alex, who is not a shareholder in the company, fails to see the personal relevance of this objective. On the contrary, to Alex, the goal of hitting $10 million may be more demotivating, since he doesn’t see any of it. Consequently, Alex's motivation and commitment to their work begin to wane, resulting in missed deadlines, decreased productivity, and ultimately, a lack of accountability towards the company's revenue goal.

Action Ideas:

1- Foster a sense of purpose and alignment:

Set the vision based on impact, outcomes, and contribution to the world. Honestly speaking, no one really cares about your company vision, if all it does is talk about how great the company is going to be.

2- Clearly communicate the company's vision, mission, and goals to all employees.

Emphasize how their individual contributions directly impact the achievement of those goals. Help employees understand the larger purpose behind the company's objectives and how their work fits into the bigger picture. This can be done through regular communication, town hall meetings, or team-building exercises that highlight the importance of their roles.

3. Promote transparency and involvement:

Encourage open dialogue and feedback channels within the organization. Provide opportunities for employees to contribute their ideas, suggestions, and concerns related to the company's goals. When employees feel heard and involved in decision-making processes, they are more likely to develop a sense of ownership and accountability. Additionally, transparent communication about the company's progress towards its goals can help employees see the collective impact of their efforts and reinforce their commitment.

Second: No ongoing visibility, and inefficiencies are hidden

A lack of ongoing visibility and the absence of tracking key performance indicators (KPIs) publicly can contribute MASSIVELY to underperformance. When poor performance, inefficiencies, and shortcomings remain hidden due to a lack of transparency, employees may not feel the pressure to address them, or take ownership of improving their performance. This lack of public accountability can hinder productivity and the company's ability to achieve its goals efficiently.

An industrial business client had an issue with poor cashflow, and this - as it turned out - was the result of poor follow up on receivables (to the tune of millions every year!). Since there were no KPIs, there was no public sharing of information, no public accountability, no promises to fix that were followed.

In the first week of setting up and sharing the KPIs, the finance team suddenly had nowhere to hide anymore. Every manager knew the cause, impact, and person behind the (very avoidable!) problem. Within the first month, things changed drastically, and the cashflow problem disappeared, literally overnight.

Action ideas:

1- Track your KPIs!!

Establish a system for tracking KPIs and regularly measuring progress. This can involve setting clear performance metrics, establishing regular reporting mechanisms, and leveraging appropriate technology or tools to gather and analyze data.

2- Foster a culture of transparency and feedback:

KPIs are meant to help, not punish. Encourage open communication and create an environment where employees feel comfortable sharing their progress, challenges, and ideas openly. Implement regular check-ins, performance reviews, or team meetings where employees can discuss their achievements, roadblocks, and receive constructive feedback.

THIRD: No reason to step up

A lack of accountability among employees can - and does! - arise when there is no incentive or reason to step up and go beyond the minimum requirements. If underperformance is treated the same as meeting or exceeding targets, why would anyone put in extra effort or strive for exceptional results?

Without a clear distinction or recognition for those who excel, there is little motivation for individuals to push themselves or take on additional responsibilities. This lack of differentiation between performance levels can create a sense of complacency, leading to a diminished drive to try harder and ultimately hindering overall productivity and growth within the organization.

Consider a customer service team where there is no differentiation between underperformance and exceeding expectations. In this scenario, all customer service representatives are treated equally, regardless of their individual performance. For instance, Sarah consistently goes above and beyond to provide exceptional customer support, resolving complex issues and receiving positive feedback from clients. On the other hand, Hanna consistently falls short, displaying minimal effort and frequently receiving customer complaints. However, both Sarah and Hanna are treated the same, with no recognition or consequences for their respective performances.

As a result, Sarah would be very justified in asking why she should continue putting in extra effort if there is no acknowledgment or reward for her exceptional performance. This lack of accountability and recognition stifles motivation, leading to a decreased willingness to go the extra mile, and ultimately impacting the overall quality of customer service provided by the team.

Action items:

1- Check your bias.

Is there someone in the team who is being treated differently to others, or are different people help to different standards? As a suggestion: it’s really hard to be objective when doing this on yourself, so get the input from all the relevant stakeholders. If and when you do see bias, be proactive in removing it. This may have to do with race/culture/gender/etc…it has no place in your company.

2- Implement a performance-based reward system:

Establish a reward system that recognises and rewards high performers. This can include bonuses, incentives, or promotions based on individual or team achievements. By linking rewards to exceptional performance, employees are motivated to strive for excellence and take ownership of their work. Recognizing and appreciating those who consistently exceed expectations sends a clear message that going above and beyond is valued and encouraged.

FORTH: No culture of trust (AKA: Micromanagement)

Nothing kills motivation faster than mistrust and micromanagement. When employees are constantly subjected to excessive scrutiny, their autonomy and decision-making authority are undermined. The lack of opportunity, space, and trust to carry out their responsibilities can quickly erode their motivation. Without a sense of ownership or empowerment in their roles, employees may become disengaged, resulting in diminished accountability for their work. This toxic culture stifles initiative and innovation, hampering the overall productivity and success of the organization.

A client had a well-resourced sales team, reporting to a toxic sales manager. There was an unmissable culture of micromanagement and mistrust. The sales manager scrutinised every action of the team, constantly checking on their progress, involving himself in their interactions with clients, and providing unsolicited detailed instructions on how to handle every sales opportunity. The team members were not given the opportunity to exercise their own judgment, or use their expertise to adapt their approaches to different situations.

Unsurprisingly, the team constantly underperformed, the better team members left, and the ones who stayed were moving on the outside, but dead on the inside. One of the first actions we took when starting to work with this business was to remove the toxicity, and within the first 60 days, sales people who had never hit more than 50% of their target were already on track, earning bonuses and commissions, and coming to work happier.

Action items:

1- Enable, empower and trust:

Encourage managers to empower their team members by delegating authority and providing them with autonomy in their roles. Promote open and transparent communication, where team members feel comfortable discussing their ideas, mistakes, and suggestions without fear. Build trust by recognizing and celebrating individual and team achievements, allowing employees to take ownership of their work, and providing constructive feedback rather than constant monitoring.

2. Develop leadership and communication skills:

Invest in leadership coaching that focuses on developing the skills of managers and supervisors. Provide them with the necessary tools to effectively communicate, delegate, and trust their team members. Encourage managers to foster an environment that values collaboration, open dialogue, and employee development. By improving leadership skills and creating a supportive work environment, the culture of micromanagement can be replaced with a culture of accountability and trust.

Ownership and accountability can not be imposed or forced on anyone. The more willing someone is to take on the responsibility, the better they will do.

Business Trends 2023: How to Stay Ahead of the Curve

The business landscape is constantly evolving, with new technologies and innovative practices reshaping the way we work. In an increasingly competitive environment, it is crucial for business owners to stay ahead of the curve and adapt to these changes. This article will explore the top business trends of 2023 and provide insight into how your organisation can capitalise on these emerging trends to maintain a competitive edge.

Understanding and anticipating these trends will enable you to make strategic decisions, invest in the right areas, and develop a workforce equipped to navigate the future. By keeping a finger on the pulse of the industry, you can identify opportunities for growth, manage risks effectively, and ensure long-term success in a rapidly changing world.

What are the top four business trends?

The top four business trends poised to make a significant impact in 2023 are as follows:

1. Remote and Hybrid Work Models

Remote work has become more mainstream due to the COVID-19 pandemic, and many organisations have discovered that they can function efficiently with a distributed workforce. In 2023, we will continue to see companies adopting hybrid work models, which combine remote work with in-person collaboration. As a business owner, some key aspects to consider for successful implementation include:

• Ensuring robust communication channels and project management tools.
• Providing appropriate training and resources for remote employees.
• Maintaining a strong company culture and encouraging social interaction among team members.

It is important to remain adaptable and open to refining your hybrid work model based on employee feedback, industry best practices, and technological advancements. Emphasising flexibility allows you to adjust your approach and meet the evolving needs of your workforce, which ultimately contributes to higher productivity and employee engagement.

2. Artificial Intelligence and Automation

Artificial intelligence (AI) and automation technologies are becoming increasingly prevalent in various business sectors. From chatbots and data analytics to supply chain management and customer service, these tools have the potential to enhance efficiency and productivity. To maintain a competitive edge, you should:

• Invest in AI and automation technologies that are relevant to your industry.
• Upskill your employees to work alongside AI and automation tools effectively.
• Stay informed about the latest developments and ethical considerations surrounding AI.

You must ensure that you are using AI and automation responsibly and transparently. This means being aware of potential biases in data sets, addressing ethical concerns, and clearly communicating the role of these technologies to both your employees and customers.

3. Sustainability and Social Responsibility

As environmental and social concerns gain more traction, businesses are expected to demonstrate a commitment to sustainability and social responsibility. This involves not only reducing your carbon footprint but also adopting ethical practices in sourcing, production, and labour. To keep pace with evolving expectations, you should:

• Develop and implement a comprehensive sustainability strategy.
• Collaborate with stakeholders to identify areas for improvement.
• Communicate your sustainability efforts to customers, investors, and other stakeholders.

In addition, you must be prepared to adapt and evolve your sustainability strategies in response to new challenges, regulatory requirements, and customer expectations. This may involve adopting new technologies, forging partnerships with environmentally-focused organisations, or joining industry initiatives to drive sustainable practices.

4. Personalisation and Customer Experience

In an age of information overload, personalisation has become a key differentiator for businesses. By offering tailored products, services, and experiences, you can attract and retain customers in a competitive market. To embrace this business trend, you should:

• Leverage data analytics to understand customer preferences and behaviours.
• Implement personalisation strategies across marketing, sales, and customer service channels.
• Regularly evaluate and refine your personalisation efforts based on customer feedback and changing preferences.

To maintain a high level of personalisation, you should stay updated on the latest technological advancements and tools in the field. This includes keeping an eye on innovations in data analytics, machine learning, and customer relationship management systems that can help deliver more targeted and relevant experiences to your customers.

The Rise of Digital Transformation: An Emerging Trend

As digital technologies become increasingly integrated into our lives, it is essential to prioritise digital transformation in order to maintain competitiveness. This involves leveraging digital tools and strategies to improve business processes, enhance customer experiences, and drive innovation. To keep up with the rapidly evolving landscape, you should:

• Assess your business's current digital maturity and identify areas for improvement.
• Develop a digital transformation roadmap with clear goals and objectives.
• Invest in digital infrastructure, including cloud computing, cybersecurity, and data management solutions.
• Encourage a culture of innovation and digital-first thinking within your organisation.

By embracing digital transformation, you can optimise your business operations, unlock new growth opportunities, and provide better value to your customers. In a constantly evolving business environment, staying ahead of emerging trends like digital transformation will help you maintain a competitive edge and ensure long-term success.

Seizing Opportunities and Ensuring Growth in 2023

Adapting to the ever-changing business landscape is crucial for business owners who want to stay ahead of the curve. By embracing the top business trends of 2023, including remote and hybrid work models, AI and automation, sustainability and social responsibility, and personalisation and customer experience, you can maintain a competitive edge. Moreover, staying attuned to emerging trends, such as digital transformation, will ensure your business remains agile and responsive to the evolving needs of your customers and industry.

To capitalise on these business trends and emerging opportunities, it is essential for you to:

• Foster a culture of continuous learning and development, allowing your employees to stay updated with the latest skills and knowledge required to thrive in the changing business environment.
• Encourage collaboration and cross-functional teamwork, as this will enable your organisation to leverage diverse perspectives and skill sets in addressing new challenges and opportunities.
• Regularly review and update your business strategy to reflect the latest industry insights and market shifts, ensuring that your organisation remains aligned with its long-term goals and objectives.
• Maintain a proactive approach to innovation and change, by exploring new technologies, business models, and partnerships that can unlock growth potential and create value for your stakeholders.

The key to thriving in the dynamic business environment of 2023 lies in your ability to embrace and adapt to the top business trends, while also remaining vigilant and responsive to emerging trends that could shape the future of your industry. By investing in your employees, fostering a culture of innovation, and staying informed about the latest developments, you can maintain your competitive edge and continue to grow.

Navigating the Future with Kaizen

At Kaizen, we understand the challenges and opportunities presented by the rapidly evolving business landscape. Our team of experts are dedicated to helping business owners like you navigate these changes and capitalise on the top business trends of 2023. From strategic planning to talent development, we can support you in staying ahead of the curve and achieving long-term success.

If you are looking to embrace the future and unlock your business's full potential, reach out to us today. Together, we can help you build a resilient, agile, and innovative organisation that is ready to thrive in the dynamic world of 2023 and beyond.

Get stuff OFF your plate!

“Busy?" You’re probably swamped, but you gotta do what you gotta do, right?

And if you do mention you have your hands full, people often come up with the super-helpful suggestion: “Why don’t you just get someone to help with that?”

No way...If only you had thought about that! (sarcasm there, in case you think I’m serious)

How many times have you tried delegating some work, only for it to come back to you incomplete, poorly done, or worse off than before…and now with even less time to finish it? And it’s not that you don’t want to give, the problem is what to give, who to, and how to not find out at the 59th minute that nothing’s been done.

The good news is that effective delegation is not a fantasy or dream. It can be done, it is being done by hundreds of our clients, and you can do it too. The not so great news is that it will take work. It’s not easy, but the payoff is more than worth it.

What does success look like? Effective delegation:

Frees up valuable time for entrepreneurs to focus on the stuff they’re the best at
Empowers team members to showcase their skills and contribute to the company's success
Leverages resources of time and people (remember the saying: many hands make light work?)



However, it isn't just about assigning tasks - that’s easy. Effective delegation is about ensuring accountability and fostering clear communication channels. Below, I’ll outline the 3+1 steps of effective delegation, and give an idea or two about how to use follow-up in order to maximise productivity and foster a high-performing team.

Step 1: Identify the right (a) tasks and (b) people

Begin by identifying what you aren’t going to delegate. These are the tasks that align with your core competencies as an entrepreneur. Focus on delegating routine administrative tasks, repetitive activities, or roles that require specialized expertise, that is either outside your skill set (like finance!) or not vital to your primary responsibilities.

Once you have defined the tasks suitable for delegation, spend time identifying the right team members who possess the necessary skills and competence. Evaluate their readiness and capacity to assume responsibility without compromising quality. Hint: do this as a discussion with the individual, rather than just data-driven. Effective delegation is dependent on a solid foundation of trust, competence, and mutual respect.

Step 2: Clearly communicate expectations, deliverables, and deadlines

“Oh, I didn’t know that’s what you meant”.

Did that trigger any unpleasant feelings? Let’s actively avoid those conversations.

Clearly communicate your expectations, objectives, and desired outcomes, emphasizing any specific parameters or limitations. Encourage your team members to ask questions and seek clarification, avoiding any ambiguity that might hinder their performance. Provide them with the necessary authority and resources to execute their responsibilities effectively. Empowered employees are more likely to approach tasks with creativity, innovation, and a sense of accountability.

And while it is tempting to push people to work faster and harder…set realistic deadlines. Establishing realistic and achievable deadlines is a critical factor in the effective delegation process. Collaborate with your team members and consider their workload, priorities, and required support. By setting deadlines that are reasonable, you promote a well-balanced work environment while enhancing productivity and minimising unnecessary stress.

Step 3: Establish accountability and follow-up procedures

If there is one major misalignment in this dynamic, it’s usually on follow-up. Determine in advance if the individual is giving you updates, or if you are going to ask. Decide in advance what is being updated, how frequently, and to what standards.

Follow up can be annoying. But it is important to ensure things flow. You’re getting to give the whole task away…you can do the follow up yourself! This also allows for continuous feedback, mentorship opportunities, and the ability to navigate potential obstacles early on.

Bonus: Acknowledge and reward accomplishments

Recognition and acknowledgment of outstanding performance not only inspires and motivates team members but also encourages them to take ownership and excel in their delegated tasks. Regularly measure and evaluate their accomplishments, and reward exceptional efforts to promote a positive work environment and encourage a culture of continual improvement.

You have more than enough to do, and less than enough time to do it. Take the steps, have the conversations, and get the team to step up. If you need a hand, let me know.

Here’s to a less busy week and month ahead!

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