A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are sh
Beware of the Top 20 Costly Mistakes, Even One Could Cost You Your BusinessA must read before you form your corporation.We've talked to literally hundreds of business owners over the years. If there's one thing we've learned beyond the shadow of a doubt from those who have been sued, needlessly poured money down bottomless tax or expense holes, or whose businesses have failed, it's this: NOT ONE was excited over the few bucks they saved by using a low cost incorporator -- or worse, flying solo -- to incorporate or establish an LLC for their business.Years and untold dollars later, they sorely regret the hard work, stress, and many, many lost hours of time with family and friends -- consumed instead by lawyers, bankers, accountants and creditors, while picking up the pieces of the wreckage from a devastating lawsuit or bankruptcy.All those losses could have been prevented by proper planning with the right company to support them. All those losses were the indirect, and sometimes direct result of “penny-wise, pound foolish” thinking. They've learned (the hard way) the value of having a company like NCP to be at their side, constantly guarding against missteps and roadblocks.We hear the same basic horror stories told over and over again. And while we'd never say “we told you
“Oh yeah, I definitely feel out of my depth at times. But I think that if you don’t occasionally feel out of your depth you’re either not growing anymore, or you’re kidding yourself, or you’re not pushing the organization hard enough.” Comment in Unlimited from Grainne Troute - CEO McDonalds. Grainne has an HR background.Potential CEO’s come from a much wider range of business disciplines than even five years ago and perhaps CEO applicants can benefit from my real-world, in-the-trenches questions and experiences on both sides of the CEO fence. If you have had a career largely in one discipline to this point then these questions will enable you to think of the CEO role in broader terms.
Questions, many of which are in the considered “soft” areas, have potential answers that will help you make a balanced decision as to whether your potential career move will be a good fit, and if so, increase your chances for success in the role.
The alternative?
I describe it as the “eighteen-month club.” You are hired, the board has great expectations on sales and profit growth….. you make the right noises, six months go by, twelve months and the board starts questioning “Where are the results?” and by eighteen months you are in the departure lounge along with 15-20% of the CEO’s from the Fortune 1,000. You have joined the eighteen-month club!
So it is time to start probing:
Q What stage in the business life-cycle is the organization in?
Initial high-growth; maturity; decline or the start of the 2nd growth cycle? Is there widespread recognition and acceptance by individual board members of the life-cycle stage?
Q. Does the company strategy have a long-term sustainable competitive advantage? How do you know?
A. Instead of just relying on information provided, have you completed a S.W.O.T? Talked to customers and ex-customers? Talked to competitors? Searched the internet? Found industry trend information? Looked at benchmarked data?
Q. Has the business model passed its “use-by” date?
Aggregators, e-commerce, new competitors or technology may all have had a major negative impact on the business. Does the board truly recognise it or are they still in denial and in the mode of trying to make a silk purse out of a sow’s ear?
Have they considered a Greenfields approach to the development of a business plan?
“If I were starting the business today would we do business the same way?”
If not, then the board should have directed the development of a business plan recognising: industry trends, new technology, competitors, factors impacting on the business model, geographic factors related to sales and support and traditional and non-traditional competitors. e.g., in the check printing business considering the impact of credit and smart cards.
Q. Has the board gone through the cost-cutting phase, or are they locked into ongoing cost-cutting?
A. No-one ever downsized to greatness. During the process of downsizing trust and morale typically are destroyed. Unless the board is focussed on re-growth strategies and not further cost-cutting, then I would suggest that your tenure will be short-lived as you will not be demonstrating additional profit from new business acquisition.
Q. Is the board focussed on the short or long-term?
While the board may talk about being “in it for the long-haul” look at what shareholders and board members have done in other situations. Are they long-term players or typically just looking for a quick return?
Q. Will there be a business reinvestment strategy or is there a single-minded focus on shareholder returns right now?
A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are sho
The Best Way to Start a Legal Work at Home JobYou have probably heard the many online opportunities that are opening everyday on the Internet and how many people are making their living online working in the comfort of their own home. However we also hear of so many scams and fake opportunities were people loss their money and even their shirt for investing so much money on things that don't work or that are scams.You should not be afraid of choosing a work from home and making your life the way you want it. What you should be doing is first getting your head straight on what do you really want to be working on. Do you want to work from home? do you want a stable income? do you want a business or a Job? Do you have money to invest? Do you have skills? Which are your skills?If you can answer the above questions you are on the right path to choose the best work at home opportunity for you. Now the problem is where to look for the best honest and reliable opportunities. Its not easy to just do a research on the Internet and make a informed decision of what is worth and what not.I have gone to this process of finding how to make money on the internet? and you know what? thats the wrong question. What you should be asking your self is do you want an Online
r chances for success in the role.
The alternative?I describe it as the “eighteen-month club.” You are hired, the board has great expectations on sales and profit growth….. you make the right noises, six months go by, twelve months and the board starts questioning “Where are the results?” and by eighteen months you are in the departure lounge along with 15-20% of the CEO’s from the Fortune 1,000. You have joined the eighteen-month club!
So it is time to start probing:
Q What stage in the business life-cycle is the organization in?
Initial high-growth; maturity; decline or the start of the 2nd growth cycle? Is there widespread recognition and acceptance by individual board members of the life-cycle stage?
Q. Does the company strategy have a long-term sustainable competitive advantage? How do you know?
A. Instead of just relying on information provided, have you completed a S.W.O.T? Talked to customers and ex-customers? Talked to competitors? Searched the internet? Found industry trend information? Looked at benchmarked data?
Q. Has the business model passed its “use-by” date?
Aggregators, e-commerce, new competitors or technology may all have had a major negative impact on the business. Does the board truly recognise it or are they still in denial and in the mode of trying to make a silk purse out of a sow’s ear?
Have they considered a Greenfields approach to the development of a business plan?
“If I were starting the business today would we do business the same way?”
If not, then the board should have directed the development of a business plan recognising: industry trends, new technology, competitors, factors impacting on the business model, geographic factors related to sales and support and traditional and non-traditional competitors. e.g., in the check printing business considering the impact of credit and smart cards.
Q. Has the board gone through the cost-cutting phase, or are they locked into ongoing cost-cutting?
A. No-one ever downsized to greatness. During the process of downsizing trust and morale typically are destroyed. Unless the board is focussed on re-growth strategies and not further cost-cutting, then I would suggest that your tenure will be short-lived as you will not be demonstrating additional profit from new business acquisition.
Q. Is the board focussed on the short or long-term?
While the board may talk about being “in it for the long-haul” look at what shareholders and board members have done in other situations. Are they long-term players or typically just looking for a quick return?
Q. Will there be a business reinvestment strategy or is there a single-minded focus on shareholder returns right now?
A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are sh
Why Should You Get A Letterhead Logo Design?A nice letter head logo design can be the best way to make a business known so clients and customers realize it is a company in which they can trust. This could not seem too important for a large and well-known company, but a logo could actually have a lot of influence on how the business it stands for fares in its market. Whether it is a big or small business, a logo can have a considerable impact to make people accept a company. That is why most companies give a lot of importance to this little symbol.If you are starting a new business, a letter head logo design must be at the top of your priority list, it must be a logo that represents correctly the ideas and interests of your company. Also it is of great help to give a good first impression of a business to their potential customers. That is why a logo design letterhead is a key element to get brand recognition for a business. It advertises a product and makes it look good to customers. The marketing of a brand can be successful if it includes a well designed letter head logo.But, what can make a logo design look good? There are several factors, one of the main factors is originality. A good letter head logo must be one of a kind and be able to stand on its
leted a S.W.O.T? Talked to customers and ex-customers? Talked to competitors? Searched the internet? Found industry trend information? Looked at benchmarked data?Q. Has the business model passed its “use-by” date?
Aggregators, e-commerce, new competitors or technology may all have had a major negative impact on the business. Does the board truly recognise it or are they still in denial and in the mode of trying to make a silk purse out of a sow’s ear?
Have they considered a Greenfields approach to the development of a business plan?
“If I were starting the business today would we do business the same way?”
If not, then the board should have directed the development of a business plan recognising: industry trends, new technology, competitors, factors impacting on the business model, geographic factors related to sales and support and traditional and non-traditional competitors. e.g., in the check printing business considering the impact of credit and smart cards.
Q. Has the board gone through the cost-cutting phase, or are they locked into ongoing cost-cutting?
A. No-one ever downsized to greatness. During the process of downsizing trust and morale typically are destroyed. Unless the board is focussed on re-growth strategies and not further cost-cutting, then I would suggest that your tenure will be short-lived as you will not be demonstrating additional profit from new business acquisition.
Q. Is the board focussed on the short or long-term?
While the board may talk about being “in it for the long-haul” look at what shareholders and board members have done in other situations. Are they long-term players or typically just looking for a quick return?
Q. Will there be a business reinvestment strategy or is there a single-minded focus on shareholder returns right now?
A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are sh
Innovation Expenses - Finding the Right BalanceThink a moment about the journalist and the historian. The former is presenting the new(s) the latter combines the new into a (historic) perspective.If you want to be in the lead with new trends like the innovator you should know the new(s). You should know about all new developments and more important, you should try and proof them. This is more than a single experiment with new technology. Blogging for example is such a new trend, and the innovator (journalist) will experiment with it. Like the investment journalist who is commenting on a financial movement during the day, the innovator will not be able to determine in what direction the trend will go, nor whether the new movement is strong enough to be a real trend.The more conservative investor and entrepreneur will wait to take action on all those pre-trend movements. He wants to value the new movement before betting his money on it. To do this you need to put things into (historic) perspective.The approach of the innovator brings advantage in the sense that he is up to date, and gains hands on experience on the matter. The disadvantage is that each such an experience costs time and money that could have been spent otherwise. But once one of the litt
s. e.g., in the check printing business considering the impact of credit and smart cards.Q. Has the board gone through the cost-cutting phase, or are they locked into ongoing cost-cutting?
A. No-one ever downsized to greatness. During the process of downsizing trust and morale typically are destroyed. Unless the board is focussed on re-growth strategies and not further cost-cutting, then I would suggest that your tenure will be short-lived as you will not be demonstrating additional profit from new business acquisition.
Q. Is the board focussed on the short or long-term?
While the board may talk about being “in it for the long-haul” look at what shareholders and board members have done in other situations. Are they long-term players or typically just looking for a quick return?
Q. Will there be a business reinvestment strategy or is there a single-minded focus on shareholder returns right now?
A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are sh
Let the Bells Ring OutSpecial offer, special deal, or special delivery are words that we see emblazoned on products everywhere. Why would advertisers go to that effort to make their product seem special to us? Because we’ve been raised to respond to the word 'Special'. A few examples are special occasion, that special someone or in that special place and time.Before I send clients out to apply for a position or job, I encourage them to come up with five key reasons why their product is special and stands out from the rest. Why would an employer pick them over the other hundred or more applicants? It is YOUR five key reasons as to why you’re special that will have them offering YOU the position.I will ask my class, "If you were an employer, would you hire you?" The general response is a resounding YES! On occasion, I will get someone who says, "No way, I’ve worked with me before and I don’t like the effort I put in." After that outburst of information the rest of the class gets a pretty good idea as to why that person is unemployed. If your answer was yes, then why, why would you hire you? Is it because of your work ethic, your training, your dedication, initiative, drive, history of success or your outstanding attitude? Whatever
eturns right now?A. To this point there may not have been calls to reinvest in the business. A leading question to ask then is: “What has been their track record either in this or other business interests?”
Q. Is it a public or private company?
If private, who are the key shareholders? It is important to meet one-on-one with each of them to consider such things as:
- is there a dominant personality?
- will they let the chair do their job?
- has the board been “stacked” or are there the right disciplines to take the company forward?
- will directors do what is right for the company, or dosome board members pursue personal agendas?
- will primary shareholders continually second-guess the
CEO by calling in regularly at offices or taking staff to
social events etc?
- Is the owner or dominant shareholder an entrepreneur?
Typically they are short-term players, not interested so
much in planning and have a “Do it – fix it” mindset.
Q. Does the board truly understand their role?
A. My experience with private corporations in particular is that the board does not stick to strategy design, and then evaluate the CEO on his or her execution of that strategy. Too much time is spent debating operations. This discussion does little to ensure the long-term profitable operation and market superiority of the business. Again, using my experience this is not such a factor in public corporations.
Q. Governance charter…. Is it just a wall-hanging, or a code they live by?
A. Quiz board members on their knowledge of the charter and answers will provide your first clue.
Q. Do board members seem “tenured” or do board members change according to the skill mix needs of the organization’s life-cycle?
A. Very easy to see how long each board member has continuously served and whether board members have to retire by rotation and offer themselves for re-election, and whether after say two terms they have to stand down for one complete term.
Q. Does the Board go through a formal evaluation process?
Whole Board?
Chairman?
Individual Board members?
A. If not, why not? Perhaps it has never occurred to them, perhaps the Board is too new or perhaps it is considered too threatening by individual Board members.
Q. What are the sacred cows?
A. I am pleased to report that in most cases there are none. However, understand whether there are any sacred business processes, unprofitable/low-profit customers you are “requested” to retain, or any untouchable personnel.
Q. Why did they consider making the job offer to you?
A. Job descriptions are broad and so what specifically out of your background is it that they think you will do?
Were they looking for a celebrity CEO, someone who will build a leadership team, a consensus builder or someone who will drive change? Roles are broadly characterised as growth navigators; execution maestros; turnaround surgeons or business model transformers.
Do you think they will want you over the longer term, or will they transition to someone else once their initial goal with you is met?
Q. Have they structured your proposed compensation package for growth or stability? Do they want you for the long term?
A. An easy way to determine the answer to the first question is to look at what percentage of the package is at risk? Twenty to thirty percent probably means that they are looking for high growth. That said; make sure you can control all KPI’s. For example if there is a percentage related to EBITDA growth and you are in a service business will they let you change staffing ratios to improve profitability?
A balanced approach is to weight a portion for sales and customer growth, net profit improvement, plus a percentage for business reinvestment. BP is the best example of this balanced approach to senior executive compensation
Q. Is there a stock option component?
A. How will it be triggered? After KPI’s are achieved, after a set time period, or at the discretion of the board? Are they just holding out a “future promise” or is it a genuine offer? What is their track record in this area?
Q. Finally, what is the board attitude to people? Do they have a view that “people are our most important asset” or do they view staff as a “cost of business” or some point in between. Do they believe in investing in people?
A. Unless you have the ability to hire, motivate and retain the strongest team then the business is likely to remain a “