The Courage to Handle the
Truth
Remember the movie "A Few Good Men" starring Jack
Nicholson, Demi Moore, and Tom Cruise? Jack's famous quote
recently inspired me to launch this month's topic: "You
want the truth? You can't handle the truth!" How many
entrepreneurs are willing to handle the truth about their
own talents-and shortcomings, and take decisive actions
to address them?
I've worked with hundreds of leaders from several industries,
including investment banking, high technology, and professional
services. The consistent trend across all of these industries
is that leaders who can ask the tough questions, fearlessly
face their limitations, and make regular adjustments are
the ones who make huge leaps in their business. Entrepreneurs
who create sustainable businesses know how to ask great
questions that help them handle the truth head on-even when
it hurts.
Since I, too, am an entrepreneur, I've been using the month
of January to ask those tough questions about things that
we've avoided or ignored. I found that these insightful
questions opened the door to more success and growth in
my business more than any past New Years resolutions have!
I'm pleased to share them with you.
First, let's get clear on how we define "entrepreneur."
A standard dictionary defines an entrepreneur as someone
who organizes, operates, and assumes the risk for a business
venture.
Here's my revised, 2003 version of an entrepreneur: "A
person or group who engages in the art of starting and building
something of significance that reflects the talent and values
of the originator." As Peter Drucker, in Management:
Tasks, Responsibilities, Practices, clearly states, entrepreneurship
is a very special management responsibility. Your talents
and values are a precious commodity, and without regular
care and feeding, lose their momentum.
1. Where am I lacking systems that would allow me
to be better at what I do?
Let's face it, we entrepreneurs just love a tad of chaos
and disorganization in our work lives. Business plans? ROI
models? Processes and procedures? Not our strength. Here's
how to eliminate that nagging sense of inefficiency and
chaos in your work life: Keep a log of your work hours and
how you spend your time for one week. Summarize what 2 key
activities you spend more than 2 hours per week doing that
you least enjoy. Ask 3 trusted colleagues what tools and
systems they are using to automate those processes. (example:
Do you still get paid by paper checks? Still driving to
the bank to deposit them? Visit paypal.com
and practicepaysolutions.com
and determine how you can enable more paperless transactions).
Commit to eliminating 20% of the time (16 hours per week)
you're wasting by doing the things you least enjoy, and
to creating systems for them by February 1.
2. What avenues can I pursue to reduce my sense
of isolation?
This is a classic symptom for entrepreneurs-isolation and
loneliness can tap us dry of our enthusiasm and creativity.
In one instance, a client who recently launched a services
company here in San Diego decided to close the business.
Is it because he has no clients? Bad business model? Lack
of funding? Not at all. It's because he misses that regular
"coffee room chat" he once had in a large office
setting. He's now actively re-entering the corporate job
market.
Here are 3 ways to reduce isolation: List 3 key projects
where you can involve your staff or business partners to
increase their sense of participation and collaboration.
Find 2 local professional peer groups in your area and ask
the host to allow you to sample an upcoming meeting. (Inner
Circle, Young Presidents Organization, TEC to name a few).
Alternatively, ask your coach how you can start your own
MasterMind group.
3. What is it costing me to be right all the time,
or to hold on to an idea for too long?
Does anyone remember the rise and fall of the business incubator
concept? Idealab, the "gorilla" of this business
model, was founded by uber-optimist Bill Gross in 1996.
Idealab raised capital four times, which moved the valuation
of the company from $35 million to $9 billion within 4 years.
(remember how nutty life was inside the Internet bubble?).
With investors such as Steven Spielberg, everyone thought
that Idealab's IPO was imminent.
Between that fourth offering and the end of 2000, Idealab
went on a stupendous spending spree that left it with only
$50 million in cash. Ironically, Bill Gross' bravado and
commitment to the business model soared. (If you're curious
where all the money went, see Fortune's article entitled:
Why
Is This Man Smiling?) The IPO was, thankfully, called
off. An investor lawsuit ensued. The relationship between
Gross and his investors deteriorated. Fortune was quoted
as saying, "Gross, as CEO, has proven long on vision
and short on business discipline."
Here's a way to keep your own bravado in check: List all
albatross ideas might you be carrying around with you that
have overstayed their welcome. If you can't find 5, ask
your employees for help. Find a way to sell off or release
those dead projects from life support by March 1.
4. How much more effective can I be by outsourcing
certain functions/projects?
Ask the model of all models: Dell Computer! Did you know
that the Dell business model has enabled the company to
re-invent the PC industry, without inventing anything other
than process improvements? They have spent only 1.3% of
their revenues in research and development, compared to
15% at Intel and Microsoft. Their business processes are
streamlined to the point where they can rely on standardized
parts from multiple vendors to manage the demand.
Can you name 3 projects worth outsourcing in your company
right now? PC maintenance, HR support, administrative assistance
(www.assistu.com), and back office functions are a good
place to evaluate.
5. What would the value be of outsourcing the "people
development" to someone else in my company? (or,
what leadership or peer groups would help me refine those
skills?)
Many of us can hardly find the time to manage our own schedules
and performance, let alone our employees'. Attrition due
to poor leadership and people management can cost 2-5 times
an employees' salary! Case in point: One of my clients lost
$500K in revenues from a bad COO hiring decision. That's
25% of her company's annual revenues. She attributes that
costly experience to a lack of "people development"
skills and systems to minimize bad hiring decisions.
If you feel differently from that CEO and are serious about
becoming a leader, find some great development programs
at your local university and surround yourself with the
leaders you emulate. Join their business groups. Make it
an ongoing process and be prepared to do the work. Ask your
coach to recommend some business organizations and local
university programs. Be prepared to offload assignments
that are consuming your time and are non-strategic, because
this will consume significant time.
Still Feeling Fearless? Here's another free resource:
Entrepreneur Stress Test
Just email
us and we'll send you one. It will take you only 5 minutes
to complete. See how you score in 50 categories.
Send us your responses.
Please email
us your comments and success stories answering these
Five Fearless Questions. We'll showcase 3 entrepreneurs
in a future ezine, and how they fearlessly answered these
questions. We can handle the truth! And you'll receive free
publicity for your company in our next issue!
Two Upcoming Events For Fearless
Entrepreneurs:
FREE TELECLASS FEBRUARY 3, 2003-- -- "TANDEM
FLYING: 8 STEPS TO LAUNCHING YOUR OWN MASTERMIND GROUP"
Monday, Feb. 3, 2003, 7-8 pm ET/New York time
We'll share the secrets of successful business MasterMind
groups, distribute an extensive resource list and share
8 steps for launching your group in less than 14 days.
TO REGISTER: RSVP to Julie
with your name, company name, and contact information in
the body of the email. In the Subject line, include the
Session Date/Time, and the Title of the teleclass ("Tandem
Flying: Register Me for XYZ Date"). We'll send you
the bridge number to call.
TELECLASS BEGINS FEBRUARY
3, 2003 -- "STOP CONTROLLING AND START ENROLLING OTHERS"
Four Mondays: February 3, 10, 17, & 24, 2003 from 5-6
pm ET/New York time
Fee: US $159.00
Enrollment is a proven method to increase response rates
to your messages and ideas by 50-75%. Learn new approaches
to consistently create awareness with business associates,
influence them from a place of integrity, and help them
take positive action. You'll be putting this model into
practice immediately after each teleclass.
TO REGISTER, please send payment before January 30 via paypal.com
to lisa@energizegrowth.com.
Want more event details? Please visit our website www.energizegrowth.com
Until next month, be fearless!
--Lisa Nirell
http://www.energizegrowth.com/
