TimesAreChanging

The Times, They Are a’Changing Click here for Mp3 Version

Many of you know that I facilitate The Alternative Board® - groups of business owners who meet monthly, resourcing each other and holding each other accountable for strategic growth. In the last year, an alarming number of our board members have experienced “shocks” as a result of unexpected changes from a variety of directions. This issue is to serve as a wake-up call to all business leaders. Can you almost hear Bob Dylan twanging, “And the times, they are a’changing?”

Focus your attention on just three areas, and you will likely run up a list of action items to start on once you finish this article.

Employees and Employment are changing. I’ve written before about the generations and the changes we are seeing just as our population changes (Is Makeover a Part of Your Company Strategy?). The people we are hiring or will be hiring in the near future are different from those of earlier generations. We need to study what that means in terms of our work culture, task assignments, motivations, and performance styles. Even if your office isn’t changing, those of your competitors, vendors and customers are. Educate yourself about the changes, then sit down and have a serious conversation about what they mean for your organization.

A side note on employees. We have seen a jump in employee lawsuits. I suspect there is no single cause, but rather it comes from a combination of culture-clash on the job, dire economic circumstances, and a disappearing sense of loyalty to employers. It is more important than ever to examine your personnel policies and ensure they are fair, transparent, complete and consistent with all current local and federal laws.

Professional Services Industries are changing. Several of our members received their second shock after an employeeor customer lawsuit, when they found their insurance coverage was not up to the task. Insurance policies and what they cover and what is excluded change annually. Examine your insurance and ask direct questions of your agent and put their answers in writing. Shop around. Insurance carriers and their industry ratings are always changing. Make sure you have the right insurance partner and the right coverage.

As if that weren’t enough of a shock, our board members almost all have seen surprising changes in their banking relationships. Credit lines are being severely limited or even eliminated. Uncollateralized loans are rarely available. Banking service fees are increasing both in amount and scope. Sit down with your banker(s) and ask questions. Reevaluate their ability to finance and support your business.

The Culture is Changing. The economic challenges of the last few years have pushed a lot of people into “fight or flight” mode. Some businesses are resorting to cut-throat, unethical and even illegal practices to survive. Consumers are demanding price concessions, even while holding businesses to higher standards of safety, quality and customer service. Many employees are severely distracted by economic woes, higher health care costs and foreclosures. We, as employers would do well to convene regular forums to actively listen to our constituents, hear what pain they are experiencing, and then formulate our own strategies to deal with the changes.

The take-away from this article is this: Do not engage in business as usual. The times, they are a’ changing and unless you are proactively engaging yourself and your staff in discovering, understanding and adapting to the change, you are likely to be “shocked,” and it may be fatal.

This may be a shameless plug, but an effective antidote is for you to join a peer advisory group such as The Alternative Board® so that you have a continuing forum of like-minded professionals who understand how important it is to be actively engaged in on-going strategic planning, thinking and execution.

About Purpose is about your purpose.

Aim: Identify and articulate your purpose.

Arm: Shape yourself around your purpose.

Act: Achieve your purpose.