“The fundamental task of parents is to raise responsible adults who have high self-esteem and can function independently in this world,” David Bork, The Little Red Book of Family Business.

The Family Firm Institute, a professional organization for individuals involved in family businesses have a list of recommended books on family businesses. The Little Red Book of Family Business is one of them. It is a pocket-sized book of wisdom about the complex and rewarding world of family businesses.

The advice in the book was culled from the author’s 40+ years of experience working as a family business counselor, covering topics such as family-work boundaries, competence, competition, being rich, sibling relationships, and spousal roles. Each point is brief, to-the-point, insightful and sometimes humorous. Their strength is probably as a conversation-starter for an indepth dialogue with family members.

The main focus of the book is helping owners manage their families rather than their business. Interference in business decisions, double standards in employment, and succession wars can make families the worst enemies of their own businesses.

Some of the advice from Bork includes:

• If the business does not prosper, the family will not be prosperous
• Money is a tool, but it should never be used as a hammer
• If the family ownership is used in marketing, then it is important for all family members to practice the values the family claims to have, and
• Sparking solitary soul-searching- from the section on wills: “Don’t try to legislate from ‘the other side.’”

Bork’s red book doesn’t provide a solution to every problem, nor does it claim to. “This is a little book, not a big one,” he writes. But its pithy phrases provide a benchmark for determining the strengths and weaknesses of a family’s relationship with their business.

Available from Amazon and other book sellers.

In the midst of a full staff meeting Jim’s father turned to him and announced loud enough for all to hear, “You’ll never have what it takes to run this business.”

When family issues overflow into the business it hurts the business, the employees as well as all family members, jeopardizing the sustainability of the family and the business.

Family businesses provide a unique cultural and economic tapestry within our society. Planning, starting with an end in mind of how the wealth within the business and familywill transition to the next generations, creates greater well-being within thefamily from one generation to the next.

Most programs and training of business owners and entrepreneurs, however, stop with maximizing the growthof the business – short of achieving the sustainability of the family and the business.

The fact is, though, family-business Best Management Practices, which support the growth of the business, grow the estate of the shareholders, promote the health and well-being of family members, and increase family harmony, can be learned.

Greetings. Wishing peace, joy and prosperity to you, your family and your friends. A winter solstice and the lunar eclipse of December help me recall how infinite the universe is. May you celebrate the unique gifts that you bring to the world, build a dream … so the dream will build you, and appreciate the moment … so your desires will become your future.

2010 has been a year of growth and new possibilities. I look forward to 2011 and hope you find the coming year full of many unexpected opportunities.

I am sure, by now, you’ve had enough “what are your resolutions or goals for 2011?” Seth Godin (author of business books Linchpin, Tribes & The Purple Cow) sent out in, his daily ezine recently with a list of his accomplishments – or as he calls it what he shipped – in 2010.

Godin stated: This might be a useful exercise. Doesn’t matter whether it was a hit or not, it just matters that you shipped it. Shipping something that scares you (and a lot of what follows did) is the entire point. [Funny, it’s actually difficult to publish a list like this… maybe that’s another reason we hesitate to ship, because we don’t want to tout too much]. … This obsession with shipping can really make things happen…… I didn’t do all this myself… far from it. Thanks to … the thousands of readers and volunteers and colleagues …. that pitched in and made these projects happen. There’s also another ten or fifteen projects that I started but couldn’t find the guts to finish or ship. If it doesn’t ship, it doesn’t count.

Godin added, “Your turn to post a list somewhere… You’ll probably be surprised at how much you accomplished last year. Go ahead and share with your friends, colleagues or the web… don’t be shy.”

And unexpectedly, in a conference call with several mentor coaches from around the country discussing purpose in the context of 2011 goals, we focused on the work of Thomas Leonard, considered by many as the father of coaching. He suggested we could be more successful seeking to attract what we want in our lives rather than pursue them as goals … it is by creating a vision of what we want and a vacuum that pulls us forward rather than goals that we strive after. A compelling vision is a product of purpose, a picture of the future, and our individual values.

We can create a vacuum by making a problem that needs a solution, for example, a promise that will be difficult to achieve. Robert Kennedy stated: I dream of things that never were, and ask why not? Oprah Winfrey created a vacuum and now is pulled forward by over 100 producers that create an arena in which she works.

Finally, Leonard stated that we could better attract what we want by surrounding ourselves with friends and colleagues who believe in our ideas, and will bring out the best in us. Leonard passed away in 2003 at the age of 47.

Best regard and wishing you a great year.

A publisher of a blog for the recreational boating industry recently asked me if I could write something to help his readership who are struggling to hang-in there until the economy improves. 

I was a bit baffled at first what to write because it looked like we were in a state of beginning recovery in some arenas and still stuck in stagnated growth in other places.

I spent several hours reading on the internet, and came to realize that businesses need to employ tactics as though they were entering a recession, to shore up the business and maintain a presence for your customers, as well as tactics intended to make it easy for your customers to buy from you and keep them as fans of your business as the economy thaws and peoplestart to spend money.

The seven things businesses should be doing now in light of the current economy are:

1. Keep an eye on cash flow …and work closely with your customers and your suppliers to help keep your checking account in the black. If stuck don’t be reluctant to ask suppliers to allow you to extend your payments – smaller amounts over time when short of cash. Be sure, however, to keep up with the new arrangement to avoid souring the relationship. Equally allow others who owe you money to extend payments when you can. Several of my clients showed me that the customers and suppliers that you come-through the recessions will be the ones you can count on also when things get better.
2. Continue to cut back on unnecessary expenses. Continue to go slow on unnecessary expenses to build your cash reserves. The recovery has been called a 2-step one: two steps forward and one back. You’ll want cash for the “one–back” step as well as the “two-forward” steps as the economy improves. A silver lining to a recession is that it helps us get rid of dead wood that seemed to creep up when money was more abundant.
3. Pay as you go. Capital business expenses should be made on corresponding sales. Known as “bootstrapping,” strive to make sure that elective expenses relate to sales generated within that period of time. This is important. As the economy strengthens there may be temptation to spend on things you have wanted, but held off buying. Continue to hold off for now. If sales are not forth coming, then you need to put in more effort with respect to marketing.
4. Strengthen your community. A community’s collective and individual strengths grow from supporting one another. The downturn hit some sectors harder than others. Understand how your customer base was affected, and adjust your strategy accordingly. For example, if your customers are short on inventory, offer a re-stocking promotion. Partnerships built in hard times lead to strong business relationships that last for many years.
5. Spend on marketing and advertising.This is a necessary expense during a recession. Be visible and let your customers know you are still there. Also, people see the product or service they want when they are ready to buy. Even if they were your customers before, when they are ready to buy they won’t unless they see you. Knock on doors now, and be ready for when they are ready to spend.
6. Offer dramatic, attention getting and significant discountsto reward your existing customers and attract new ones that will stay with you. By managing and engineering your cost carefully, a discount will mean thinner profit margins, but will result in increased cash flow and market share. A restaurant, for example, that offered a significantly discounted Sunday dinner saw its weekend revenue more than double.
7. Stick to your knitting. Build on your strengths; don’t diversify into areas that stretch your ability or are simply too risky. For most businesses, this is the time to reorganize and improve on what you do best. Seek growth a bit slower than you would have 4 years ago. It is not the time to absorb the financial repercussions of a bad decision.

The principles are the same for a service as well as a retail business: A service business needs to continue to manage cash flow carefully; spend on marketing, so people know you are still out there; offer incentives for clients to buy from you – if selling B2B, help your clients re-ignite their own recovery by offering discounts on materials they need; and importantly build community.

Linchpins

“People today are being encouraged to make connections, solve interesting problems and to lead”, declared Seth Godin, business guru, author of at least a dozen books including Purple Cow and Tribes. Godin was the keynote speaker at the 2010 Small Business Summit in New York City last week.

The Summit was a remarkable opportunity to be with over 500 small business owners and hear from thought leaders like Seth Godin. The best thing I can share with you about the Summit was some of Godin’s ideas from his recent book Linchpin (Penguin Books), in which he describes a revolution of people becoming essential building blocks of great organizations. The following are some of the highlights as they touched us.

1. The industrialization model of the past century was effective in maximizing production efficiency. It produced scaleable cookie-cutter businesses, but also ordinary products and ordinary people. The model depended upon a workforce culture of obedience and conformity. It carried a promise to people working in the factories that they would be safe, but they would have to follow the rules and perform work that did not require thinking. The result was that it created a labor pool that was easily replicable, interchangeable and dispensable.
2. The problem, however, with a business based on inexpensive, interchangeable, dispensable parts is that once the system is determined others will be able to replicate it less expensively. Management, as a result, would have to produce a product without personalization or connections, and would have to lower its prices to compete, which means a race to the bottom.
3. The world is a different place (again). Today, people are not obedient and are not following rules. They are instead being asked to think. They are being encouraged to make connections, solve interesting problems, lead, and express the art of what they do. This is a race to the top.
4. These people are the linchpins. They are people who lead regardless of title. They connect others, invent, make things happen, and create order out of chaos. They stand up and do work that matters. They make significant differences in whatever they do. They are making their own choices for their own futures. They are the essential building blocks of great organizations.
5. Under the old model there was management and workers. Management needed workers for its factories, and workers needed factories for work, but workers were more dependent upon the factories than factories were dependent on workers. Today, the means of production are a worker and a laptop connected to the Internet,which results in a fundamental shift in power and control. This shift has released the genius in people, who are breaking away from everything they learned. They are breaking away from everything that meant being obedient to the rules of industrialized productivity that produced “perfect” products.
6. Doing it perfectly is boring. It results in ordinary people and ordinary products. Godin sees that what new business really wants is to pay people, not for being competent, but to invent… to be adverse to bowling and every game where what’s perfect is pre-determined.
7. Linchpins do two things for their organizations. They exert emotional labor and they make a map. And when they do that they are indispensable to the organization. They then have more power than management, andwhen management attracts, motivates, and retains great talent it has more leverage than the competition.

Seth Godin may be ahead of the curve for many small businesses that are following an industrialization model for their small businesses by creating systems and hiring qualified, but “least” qualified people, to handle routine tasks, as described by Michael Gerber in his best-selling book, The E-Myth Revisited (Harper Business). Godin even writes about Gerber’s model in Linchpin. We may still struggle with how would we get anything made if there were only leaders and no followers. But that may be the wrong question. Rather, what could you accomplish if a leader made everything you produced.

The time with Seth Godin was exciting. I hope I have shared a small sense of his creativity and passion; and I encourage you to go to his website (www.sethgodin.com), and follow his blog (http://sethgodin.typepad.com/).

I am preparing my class on Starting A Small Business that I teach at New York University several times a year, and found this great metaphor (Kaplan, Patterns of Entrepreneurial Management,Wiley) about the small business and the spider web.

The skills needed to successfully run a small business with few resources are significantly different than those needed to be successful in a large corporation; and executives who left corporate jobs and are starting businesses will find that they need to look at their new business more like a spider web than a castle.

In the early stages, small businesses are fragile like a spider web, where loss of one or two of the main strands can result in the loss of the entire web. The corporation, however, is more like a castle with strong protection. The start-up has no legal department, marketing department, separate sales team, or someone to call when the computers stop talking with one another, except perhaps themselves. The start-up small business owner has to do it all at first, and often with no experience being a multitasking, always-on-duty spider!

Thomas Jefferson did it. So did Andrew Carnegie and Anita Brittina (she wrote “Diary of A Small Businesses Owner: A Personal Account of How I Built a Profitable Business,” and had what she called a self-board, which meet regularly to cross educate and support). And Napoleon Hill wrote about it in his classic and timeless book, Think and Grow Rich.They all had mastermind groups to help them achieve success.

Hill writes in Think & Grow Rich, “No two minds ever come together with a common purpose without creating a third, invisible intangible force, which may be likened to a third mind.” He further described the mastermind as the “coordination of knowledge and effort of two or more people, who work toward a definite purpose, in the spirit of harmony.”

The value of a mastermind group is in the participants who are a catalyst for growth and a source of knowledge. It’s like having a supportive board of directors, from which you can gain tremendous insights for both your business and personal life.

Participants raise the bar, challenging each other to set goals, brainstorm ideas, and create a structure of accountability that helps keep you focused in a manner that embraces honesty, respect, and compassion.

The mastermind groups I lead have 6-8 small business owners, and meet either monthly or bi-monthly. The members are fairly close in the stage of their business development, with similar goals and challenges. While I set a learning focus for each meeting, the agenda belongs to the group, and each person’s participation is key.

Mastermind groups can be established around nearly any group of individuals who have a common interest. In addition to a small business owner mastermind group, there are masterminds for the self-employed, the job seeker, individuals working on advancing their career, or spiritual thinkers, as well as play-writes, stand-up comedians, and people seeking to have an extraordinary year.

Martin Luther King said ‘I have a dream,’ not ‘I have a strategy and vision.’

A dream is so much more compelling than a strategy or vision. We have all experienced dreams and know what they are. We can get our arms around them and can imagine them. Strategies and vision, on the other hand, are too often associated with power point presentations.

About Story Telling

The age-old practice of storytelling is one of the most effective tools of a business leader. It is a skill that connects and engages people at their deepest level.

Stories are critical to every aspect of your business and help the listener to consider their own possibilities in the context of the story. They can inspire everything from understanding to action. They help galvanize an organization around a defined business goal by telling about where you business is and where it is going. Stories help clients decide to work with you. Some of our most acknowledged leaders in business including Steve Jobs of Apple, Lou Gerstner of IBM, and Jack Welch of GE owe their success in part to their story telling abilities.

Stories can create legends that an entire workplace culture can build upon, and they have the power to break down barriers and turn a bad situation into a good one. They capture our imaginations and make things real in a way that cold, hard facts can’t.

Stories help people learn, absorb, remember and share information and ideas. They motivate, persuade, inform and inspire. Compelling stories have far-reaching emotional impact – and a far longer shelf life than the dry, abstract, one-way methods of corporate communications that clutter businesses today. Stories demonstrate what success looks and feels like, painting a clear picture of how we might need to change the way we think and do things.

Stories are the compelling message that enroll others in your vision, and enable you to create an organization where the employees join you in creating equity in your business.

Every story has a purpose that you want to clarify at the outset, as well as selected to match the listeners’ interest or situation. Each recipient of your story is unique and your story wants to reflect the needs of each audience.

As a small business owner, many of your stories will be intended to move prospective clients to use your services. Story objectives for the small business owner include:

• Have a prospective client identify with the problems you solve
• Communicate who you are and who you work with
• Transmit a sense of your values
• Foster collaboration
• Leading clients and staff into the future

There Are 5 Basic Elements To A Story

A protagonist the listener cares about

The story must be about a person or group whose struggles we can relate to – your client, your team, your associates, and service providers.

A catalyst compelling the protagonist to take action

The listeners’ desire, pain, need or challenge. The facts. What is it that your client comes to you for? Look beyond he obvious and understand what he or she wants more deeply. For example the person shopping for a Mercedes Benz is shopping for prestige more so than transportation. This is your stories first act.

Trials and tribulations

The story’s second act commences as obstacles produce frustration, conflict, and drama, and leads the protagonist to seek change in an essential way – to use your product or services.

A turning point

This represents a point of no return, which closes the second act. The protagonist can no longer see or do things the same way as before. She takes an action as a result of your intervention.

A resolution

The third act tells how the protagonist either succeeds magnificently (or fails tragically if she did not use your services).

This is the classic beginning-middle-end story structure defined by Aristotle more than 2,300 years ago and used by countless others since. It seems to reflect how the human mind wants to organize reality.

What’s your story?

Your story may be for your prospective clients, your employees, or other stakeholders

In crafting a story to attract clients, begin with identifying a specific prospective, new client that you want and create a story to narrate how you helped someone else who struggled with the same challenges. You will have to do some homework in understanding your prospective client’s needs. Identify the situation that is similar, and begin a story about the problem that client had. You can start your story with “Once upon a time….”.

And most importantly, practice. You can begin simply what a story about how you helped a client. Practice and practice your story, before different audiences – at first low stake audiences. Watch and listen to see how your story resonates; and experiment with different element and expressions until you get the reaction you want, “Can I hire you?”

If you want to read one of my stories see my blog of December 2005 that tells how it is that I came to be doing what I do.

A pinnacle of the interaction with your clients is becoming a trusted advisor. The more that clients trust you, the more they will reach out to you for your advice, bring you in on more advanced, complex strategic issues, pay your bills without questions, refer you to their friends and business acquaintances, and forgive you when you make a mistake.

A trusted advisor handles a broad range of business issues for their clients as well has a deep personal relationship with them. The trusted advisor acts variously as a mirror, a sounding board, a confessor, a mentor, and even, at times, as the jester. It is the depth of the relationship that makes it trust based. Building this trust is a significant step in growing yourself and your business.You won’t become a trusted advisor to all your clients, but if the connection is there you can move the relationship to one of trust.

David H. Maister, Charles H. Green and Robert Galford in their book The Trusted Advisor describe several stages in the evolutionary process of becoming a trusted advisor: the subject matter or process expert, the subject matter expert with related capabilities, a valuable resource, and ultimately the trusted advisor.

The trusted advisor focuses on the client as an individual rather than a person filling a role for themselves. Problem definition and resolution is more important than technical or content mastery; and she has a strong competitive drive to find new ways to be of greater service. Also, trusted relationships grow rather than appear. The trusted relationship is both rational and emotional, and it is different for the client than for the advisor.

There are several principles of the trusted relationship that will help you build creditability and the trusted relationships: Go first and illustrate, rather than tell; listen for what’s different, not necessarily what’s the same; ask permission; say what you mean; have a sincere interest in the other person; be appreciative; and do your homework on your client.

Grow Your Level of Trust

You can increase the level of trust you have with your clients. First, importantly determine what stage you are at with them in terms of being a trusted relationship: a subject matter expert, an expert plus additional areas, a resource, or a trusted advisor. Clarify what it is you do that indicates the level of trust you currently have, set your intention to move the relationship to new level, and create a plan to develop the level of trust you want.

Some of the actions you take are internal, such as learning about your client and his or her business, and listening without judgment, and some are external such as anticipating needs or adding more value than expected. Finally, don’t go it alone. Involve a colleague, advisor, coach, or mentor for reality checks and feed-back. You will get there faster with less wrong turns.

I wish you growth and success as you build your valuable client relationships.

I having been reading Patrick Lencioni’s book, “The Five Dysfunctions of a Team,” and I’m finding that the team function has been in my conversations with others lately.  I don’t know if it is the “yellow Volkswagen syndrome,” which is that you never see a yellow Volkswagen until you are thinking about buying one.  Lencioni’s fifth dysfunction of a team is “Inattention to Results” which he identifies as the pursuit of individual star status and ego over the team.  Team-work defines organizations as apart from a sole proprietorship, and John Wooden, the storied UCLA basketball coach, said that stars win games, but teams win championships.

My yellow Volkswagen was an email from Zig Zigler who told a story about teams in another way.  He wrote:

When my wife and I were in Sydney, Australia, we had an opportunity to attend a performance of the Sydney Philharmonic Orchestra at the famed Opera House.  The seats were choice, our night was free, so we jumped at the opportunity.  When we arrived 30 minutes early, the orchestra members were already warming up.  The individuals came in all sizes, ages and colors, and were both male and female.  Some of them, like the cymbals player, would perform five or six seconds during the entire evening, while the cellist had one part that would extend over 20 minutes.  As they warmed up, the “music” sounded like noise to me.

At one minute before eight the conductor walked into the orchestra pit.  Immediately, everybody sat up straight.  As he stepped to the podium, everybody was at attention.  At eight o’clock, he raised the baton and when his arms came down the music started.  What had been “noise” a few seconds earlier became a beautiful melody.

The orchestra leader had converted a team of all-stars to an all-star team.  While each instrument produced entirely different tones, they all blended together in harmony.  No one instrument dominated any other, but rather harmonized with and became a part of the others.  Can you imagine what the results would have been, had every artist made up his or her mind that their instrument should be the star of the performance?

This conductor had, for a number of years, been a musician in an orchestra.  He had learned to be “obedient” andfollow the orchestra conductor when he was a performer.  In short, he had learned to obey in order that later he could command.  I once saw a young man with a t-shirt emblem that said “I follow no one.”  What a tragedy! Because, until he learns to follow, he will never be able to lead.  Think about it and I’ll SEE YOU AT THE TOP!

This is the antithesis of Lencioni’s fifth dysfunction of a team.

I have been re-examining Asset-Based Thinking (ABT), which is a valuable leadership tool for creating personal mastery that supports your work and career. Very simply, it is about your glass being half-empty or half-full, when in actuality it is probably both.

ABT is a cognitive process for identifying our assets, strengths, talents, synergies and possibilities that are available in you, other people and any situation. It is about viewing your business, yourself and life in terms of opportunities rather than problems, strengths more so than weaknesses, and what can be done instead of what can’t be done. ABT creates a focal point of concentration and mental energy that will keep us alert and inspired to maximize all there is to gain from situations.

ABT is not blind optimism; and major companies, such as Monsanto, DuPont, Microsoft, Starbucks, Peabody Energy, Deloitte & Touche, MasterCard and the US Air Force have adopted ABT thinking in its approaches to developing leaders and managing change.

The opposite of ABT is deficit based thinking:  telling yourself “it is not going to work, it can’t be done.” One problem is that deficit based thinking is hard-wired into our thinking as a survival mechanism. Survival, however, is no longer a controlling theme in our lives.  The good news is that ABT is hard-wired also but less utilized and therefore takes a slight shift, conscious at first, in how we see things.

DEVELOP YOUR ABT 

To strengthen your ABT make a list of three to five things you have accomplished in the past week or so.  Now, reflect on the personal talents, strengths, and skills you used in making those accomplishments happen. Jot those down next to each accomplishment.

Take a good, long look at your talents, strengths and skills, making notes about common traits and how these traits are experienced.  This is your ABT profile. What patterns do you see? Think about how you can leverage this particular positive pattern of skills, talents, and strengths-today, tomorrow, and next weekend! Do this reflection on a regular basis and you will be amazed at what you discover about yourself. (We all have major blind spots when it comes to our own unique assets).

Change The Way You See Everything, Thought Asset-Based Thinking, Cramer, Kathryn & Hank Wasiak. 2006. Running Press.