Learning from Conductors

Entrepreneurs can learn some lessons from great conductors. Leading a successful company is like conducting a symphony.

An enchanting performance by a symphony involves perfect teamwork. A great symphony involves accomplished musicians playing their specialty instruments at a world-class level, while the conductor guides them on a common score with tempo to produce melodious music.

A great company should have experienced and qualified functional leaders guided by a CEO who leads them to the accomplishment of a vision around a well-defined mission. The Entrepreneur/CEO is like a conductor leading the orchestra by gently waving the proverbial baton.

Like a wonderful musical performance, achieving significant milestones towards a vision can be a pleasing melody.

Ravi Patel

www.patelCFOservices.com

Having Too Many Cooks

You might have heard of the common saying “Too many cooks spoil the broth.”

Is this always true in an Entrepreneurial company? Not really.

For any major project, such as new product/service development, IT hardware/software selection or implementation, or building expansion, it is critical to have input from multiple sources to come up with the best specification for the new project. This type of diligence up front ensures that most ideas are considered and there is no critical issue of “second-guessing’ later on. The specification should not be a hodgepodge of ideas, but a solid framework that takes into account (though not necessarily includes) different viewpoints.

Once the project specification is defined, there should be minimal changes and the project management should be delegated to responsible staff without micromanaging by “too many cooks.”

Entrepreneurs need to know when to have too many cooks involved in a project, and when not to.

Ravi Patel

www.patelCFOservices.com

Dealing With Crisis Situations

 

Everyone occasionally faces a crisis situation or perceived irregularities in their business. Entrepreneurs are no exception. How they deal with the crisis and potential negative perceptions separates calm, professional leaders from all others.

Some suggestions for Entrepreneurs:

• Never overreact to situations where there is employee dissatisfaction, customer, or vendor complaints. Analyze the situation calmly before taking proper corrective action, instead of taking hurried actions due to external pressure.
• If you do have a serious situation, do not create a smokescreen and divert attention away from it to hide the real problem.
• Do not focus on the small or minor issues in managing your companies; focus on the larger or macro issues for greater impact. Let your management team manage the details.
• If you need to make a statement or message regarding any irregularities in your company, do it for significant issues not trivial ones. If you mostly emphasize minor matters, your employees are going to be dismissive of such gestures.
• Be sensitive to the message that you send with your actions. For example, if you are being austere or are having cost reduction programs, do not have bonuses or spending that is contrary to the current environment in your company. Having incentives is not inappropriate, but make sure that they are related to the right objectives and are perceived positively.
• When you are borrowing a lot of money, do not spend it on bonuses or management extravagance.

While the above sound obvious, sometimes we tend to lose sight of reality and the negative perceptions that are created.

Ravi Patel

www.patelCFOservices.com

 

Build a Solid Foundation for Growth

Watching a tree sway with gusty winds creates a business analogy in my mind.

To survive wind gusts, a tall, growing tree needs to have a strong foundation (deep roots) combined with the flexibility to sway with the gusts instead of being rigid.

Similarly an Entrepreneur needs to build a solid foundation to combat competition, market and regulatory forces and an uncertain economic environment. Without a solid foundation a business might not be able to grow significantly. It would be akin to building a castle on sand.

What are some of the key ingredients to build a strong foundation? It starts with a system to deliver quality products and services repeatedly and consistently. In order to do that one needs a competent and dedicated team of employees and management utilizing robust business processes and procedures. A superior customer service mentality coupled with continuous innovation and improvement adds to the mix.

Just as a tree cannot remain rigid to survive gusty winds, a company must be nimble and flexible to adapt to the changing environment and customer needs to grow the business.

With such a foundation and flexibility not only survival but also significant growth is possible. Have you built a solid foundation for growth?

Ravi Patel

www.patelCFOservices.com