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Name of author Rick Baker, P.Eng.

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Family business leaders versus managers...

by Rick Baker
On May 16, 2016

Managers outnumber leaders in business, by orders of magnitude.

Managers outnumber leaders in families, my orders of magnitude.

So, of course, managers outnumber leaders in family businesses, by orders of magnitude.

The imbalance we see between the number of leaders and managers is a problem. And the problem is compounded when family businesses are involved.

The solution is clear: leaders in family businesses need to increase the amount of leading they do and decrease the amount of managing they do. That's the simple solution to this problem. To implement the solution, some damage repair must be completed. Some knowledge must be gained. Some skills, new skills, must be practised and honed. Bad habits must be stopped. New things must be tried. And good habits must be developed…good leadership habits, that is.

It is far more natural for parents to manage their children than to lead their children. Sure, most parents want to be role models...as in leadership. Regardless, children do not arrive with a predisposition to follow leaders. Rather, the little ones are born with 'minds of their own' and many of them seem to be daredevils at heart, oblivious to the dangers in the world around them. Consequently, all children act in ways that sream out for parental management. And, their parents feel both the desire and obligation to deliver that management.

Time passes.

Patterns of management become habits.

And, once a parent has experienced a long term relationship filled with managing children, it is very difficult to break the managing habits and alter the parent-child relationships by converting management habits to leadership habits.

Then, the next thing you know, the children become adults and they want to manage themselves and others...and some want to lead!

Tags:

Family Business and CFFB | Humour | Leaders' Thoughts

Know People

by Rick Baker
On Dec 23, 2015
Father-to-Son Business Lesson #19
 
Below is a note sent by me to my son, over 5 years ago.
 
This note was #19 in a long series of father-to-son Business Lessons.
 
In this note, I was trying to present my thoughts about ‘knowing people’, as it relates to business and particularly to sales.
***
“We must work continuously to understand ourselves and to understand others. This is important for business success in any role. This is important for business success in a Sales role.

Responding in the same order you have written...

Centaurs: just like "perfect salesmen", they do not exist

Motivational Momentum: my philosophy is: "Only you can motivate you. Only me can motivate me. So, seek the motivation from within. If you wait for others to motivate you then you will be either disappointed or their slave."

Sales: for sales this is the most-important lesson I can offer…
Sales is not about products and product knowledge.
Sales is not about services.

The essence of sales is: the customer.

The essence of the customer is: people.

The essence of people: maybe it is 'emotions'? I think there is a good argument to support: the essence of people is emotions. Even if it is not the essence it is wrapped up in the same package as the essence....emotions, conscience, thought, wonder, etc.

Sales is about understanding people. What they fear and what they desire....

What makes them happy? They want that.
What do they fear? They want to avoid that.
What do they need? They want that.

The training for Sales is about knowing what makes people tick.

The training for Business is about knowing what makes people tick.

To learn sales - learn people.
To learn people - start with yourself.

What inspires you?

What do you fear?

What do you desire?

What do you need?

Those sorts of questions....

As you start to learn about yourself, and it will be a lifetime task, try to expand your knowledge of people by adding others....those you feel you can trust.

Study famous people who clearly understood people: Gandhi, for example.

Listen to motivational tapes: Covey's 7 Habits, etc

Business = Sales = People.

Get my point?”


First posted July 5th, 2011

Money, Pay Cheques, Family-Business Anxiety & Anger

by Rick Baker
On Oct 13, 2015

Each person in a family business has an opinion about the value of his or her services. Put another way, each person has an opinion on how much he or she should be paid.

Do you know those opinions at your business?

Do you agree with those opinions?

Money - specifically, the size of pay cheques received by family members - can become a big problem in family business.

Some people have told me that money's not a problem at their family business because their children - all the siblings - get paid the same amount. Other family-business people - some of those siblings - have complained to me that they are only paid the same amount as their brothers and sisters...who contribute far less value.

A couple of things are clear: pay-cheque money is important and discussions of money are not happening and/or are not handled well.

There is another factor: the pay-cheque discussions or the verbal and silent objections around pay-cheques can permeate the family...in the business environment and in the family homes.

Money disputes can sour family members against one another and the resulting injuries they inflict on one another often spread into the workplace.

Pay-cheque money is a sensitive issue…whether the shy family members say so or not.

An essential consideration…

How do you communicate about the money paid to the family members at your family business?

Tags:

Abundance | Family Business and CFFB

Taking another SWOT at strategic planning

by Rick Baker
On Jul 6, 2015

Recently, I created the following [SWOT-grounded] table to help organize thoughts for a mid-year Strategic Planning session.

This 'SWOT activity' brought back fond memories of time spent with Don Peart...as captured below, in the Fall of 2013 Don Peart introduced our CFFB roundtable group to his broader perspective on SWOT. Don's message was an exceptional improvement on SWOT. Don's recommendations meshed perfectly with Talents & Strengths thinking and with solutions-focused thinking...i.e., thinking progressive business leaders need to embrace. Ever since that morning with Don, every time I think of SWOT I review his messages and how they can help individuals put their Talents to good use and do their work with a positive, solution-aimed attitude.

I work at creating simple tools to help expand the use of SWOT. For example, the following simple table helps focus thinking and discussion on S & W & O & T while also considering what has changed since the last strategy session.

Of most importance:

  • What lessons have we learned from the changes? and 
  • Why did those changes happen?
 

 

  

The following was first published October 28, 2013

STRENGTHS: The Gallup people presented Strengths as a combination of Talent, Knowledge, & Skills. Talent is not enough on its own. It must be coupled with Knowledge. We clarify that the Knowledge must be specialized, focused, and consistent with what it takes to achieve goals. Talent coupled with Knowledge is not enough...it is essential that Skills be practised until tasks and processes are mastered. Only then can one possess and vent Strengths. On top of that Gallup wisdom, we added Opportunities. That's where leaders fit in. Leaders recognize Talent, provide access to Knowledge and training & development in the form of practising. In this way, leaders provide the Opportunities for the development of Strengths.

P=2S+O: Bosses exist to delegate tasks and processes and manage the people who do those tasks and processes. That being the framework for business, bosses really don't want to hear Problems. Bosses only want to hear Problems when the Problems are used to introduce Solutions...and, every once in a while, Opportunities. That's the P=2S+O philosophy. That's why we created the P=2S+O tool.

SWOT is a strategic planning tool developed a couple of generations ago. It can be used to sort thoughts about business processes & business situations. And, as was recently brought to our attention by Don Peart, SWOT can be used to sort thoughts about people.

Business Contains Only 3 Things: People, Process, & Situations.

The thinking around SWOT's application for business Processes & Situations is on the record. Just Google 'SWOT' and you will find much theory and practical advice.

The first 3 thoughts that came to me when Don Peart talked about applying SWOT thinking to People were:

1.     There's a lot of common ground shared by SWOT and our definition of personal Strength.

2.     P=2S+O is a practical tool, designed to cause people to focus on Solutions while keeping their minds and eyes open for Opportunities.

3.     When recruiting we could use SWOT thinking as an umbrella over our definition of Strengths and our P=2S+O philosophy.

 Here's the picture...

 

Quests, Questions & Cats

by Rick Baker
On Jun 23, 2015

Shame on the people who admonish, “Curiosity kills the cat”.

How many spirits have those people confined? How much motivation have those people stifled? How much innovation water have those people muddied?

It's interesting to see how the things we are taught when we are young can stick with us throughout our lives. And, it's interesting to think about the impact advice has on the character we develop and carry with us throughout our lives.

It seems to me, Curiosity is a gift of Nature. It is a gift of human nature. It is also a gift enjoyed by many in the animal kingdom. We see young animals of all sorts exhibiting curiosity. We see protective parents of all kinds working to limit the extent their of their infant’s curiosity. We see parents of all kinds reaching out to save their little children. We also see their children, over time, learning how to live safely and how to self-control their curiosity.

For many of us, cats stand out as particularly curious creatures. Whether large cats or small cats, wildcats or domestic cats, cats seem to maintain their curiosity longer than other creatures. We see adult cats behaving more playfully than other domestic animals. We see adult cats being more adventuresome. We see adult cats behaving more independently.

Such spirited cat-qualities.

…and some people teach our young that curiosity kills them!

Automation & Family Business

by Rick Baker
On Feb 26, 2015

Excerpts from a Son-Father Chat

Automation solidifies Processes...to help People and to provide value to People. That's why automation exists; that's why automation has 'gone exponential'.

Automation removes People's excuses. At least, you'd think that would be the case. On the other hand, to some degree the excuses just change in form. [It is even easier to blame inanimate things than it is to blame other people.]

Regardless, automation is the wave of present change and it will be the wave of future change...because...automation provides value to People.

That's why Robots have become so popular. Robots do tasks. Robots do processes, step-by-step, moving in a straight line. Unlike People, Robots are linear 'doers'. Robots have a task and they do that task. No excuses. No confusion. Simply doing what they have been instructed to do. In addition, in comparison to People, Robots do tasks quicker and more accurately.

Delivering value. Quicker. More accurate. No excuses.

Considering these advantages, it's no wonder Robots have gained such a foothold. 

And, considering these advantages, no doubt Robots will continue to take over the workload, replacing People at work.

***

Now, People still hold some advantages over Robots.

Don't you agree?

 

***

PS:

Son - Software Engineer

Father - Mechanical Engineer

Family Business - Helping business leaders solve People & Process problems.

 

 

Tags:

Family Business and CFFB

Copyright © 2012. W.F.C (Rick) Baker. All Rights Reserved.