Judy McGruther, the CEO for the past six  years – she joined when “the Hill” was still under construction – has had her work cut out for her.  With the economy giving them a run for their money and the “normal” issues that all startups have to deal with, she and her team have been challenged to build revenues, manage expenses AND provide the high level of service that is a critical part of their Brand Promise.

Last year was the year to get their occupancy rate up to give them a strong revenue basis.

2012’s focus?

Keeping their budget in line.

“Meeting budget is table stakes this year,” shared Judy. “We’re really focused on controlling our expenses.” And that means a real push on labor dollars, food and supply costs and the other key components of running an enterprise with a $35+ million budget.

So what’s Judy’s “daily” number for 2012? Labor Hours…

“If we can manage our labor hours,” says Judy, “And meet or exceed our budgeted occupancy, we’ll be in great shape by year end.”

So with great discipline, every day, every week her team is looking at their productivity, along with other key performance indicators on their “scorecard” AND they have a weekly contest between departments to see who can do the best job of managing their labor hour budget numbers.

The reward that everyone’s so gung ho to win?

A penguin…

“We needed an award to recognize the winner,” recalls Peter Fleming, the CFO, “And I had a penguin paper weight on my desk and on a whim said, ‘How about this?’.  Surprisingly, it worked!  Now it’s a battle every week to see who gets the penguin.  Initially the Dining group was winning but then Resident Services got into the game.  By the end of the quarter, it was a real race to see which department would win for the quarter overall.”

Dining did win, and got penguin pins and gift cards as an award – but the whole team got movie tickets as a reward for all of their hard work in keeping their labor numbers in line.  They did beat the budget and are continuing the race in the second quarter.

It will certainly be a race to the finish…even if we did have a mild winter here in Philly!

For more info on the Hill, check out their website here.

Stay tuned for more ideas on how to keep Execution on track in your company in 2012!  Next week, I’ll be sharing my learnings from the Fortune/ Gazelles Leadership Conference in Atlanta…

At a recent lunch with him and a couple of my clients, Ed turned to one of the CEOs and asked,

“So, what’s the first number that you look at when you come to work each day?”

The CEO was caught off guard…”Wow, that’s a great questions,” he replied after a moment of silence.

So, in a follow up to my last blog post ‘How are you turning up the heat?’…

My next question is…

‘How will you know that “it’s” working?”

What number(s) do you look at when you walk in the door?

If you don’t have the right set of measurements in place to track your progress – on a weekly AND daily basis – as well as monthly and quarterly, you can’t possibly know whether your efforts are bearing fruit…and whether or not you need to make a mid-course correction.

But what should that number be?…

What are other companies doing?…

Stay tuned for some great examples in next week’s post!

Are you working on GREAT Execution – incorporating the rhythm of daily huddles and weekly tacticals to stay on top of your game and your plan?

Is your focus TopGrading your Talent - defining and filling the right “strategic” position in your company which will help you grow?

Or maybe you’re continuing to REFINE your Strategy – staying in touch with your Customers and reaching out – personally – to understand better how you can serve them?

In her effort to focus on GREAT Execution, Liz Jaworksi, CEO of Ron Jaworski Golf is turning up the heat at RJG…literally.  The THEME that they’ve adopted for 2012 is a takeoff on the year’s numbers appropriately:

“212 Degrees”

So, taking her cue from the video from Simple Truths, this year she’s pushing her whole company for “that extra degree” of effort that can be the difference between good results and GREAT results.

For those of you unfamiliar with Ron Jaworski Golf (or RJG for short), they’ve been in business for over thirty years – and have been a mainstay of the Greater Philly and Southern NJ business community.  Currently, they run three golf courses in Southern New Jersey, Running Deer, Riverwinds, and Valley Brook – not far from where I live.  But they also offer indoor tennis at RiverWinds and do a brisk business in special events like Weddings and Outings.  AND – this year – Liz and her team have adopted the “Rockefeller Habits” for their strategic thinking and execution planning process to support their growth goals.

Not that they didn’t have a lot of great business practices in place already.  They’ve always been disciplined about Execution, looking at their numbers, having weekly meetings to stay on top of their goals and having fun while they’re doing it all BUT they wanted to take those good “best practices” further.  Thus the push for getting everyone at the company – they employ over 300 people in the high season – figuring out how they can turn things up a notch, both on the top and bottom-line.

The theme, as you can imagine, has already begun to have an effect on how they’re doing business AND lends itself to all sorts of fun activities and great motivating rewards, but Liz and her team aren’t the only ones implementing new “best practices” to drive results…

There are other companies, like Datacolor, which has benefited from a clear Focus on People and using the TopGrading tools to interview and hire and others like CHBriggs which, in a highly commoditized market, is continuing to tighten and refine their Strategy, leveraging “Customer Intimacy”, something Dave Power emphasized at our Growth Strategies Breakfast.

Look for more in upcoming blogs…and if part of your goals for the year including keeping yourself sharp as a Leader, considering joining me in Atlanta on May 15th and 16th for the Fortune Leadership Conference.

Let me know if you can attend!

Some of the key highlights…

• Businesses that survived the downmarket are now investing and growing

  • Finding, developing and keeping good people is a top priority (although with all of the competition out there the Institute for Trends Research is predicting wage inflation especially for key jobs)

    • Over half of the CEO’s who responded say that their revenue grew over 10% in 2011 and almost 9 out of 10 are predicting revenue growth in the coming year

      • Investments are also predicted in 2012 for capital expenditures and training and development – and about a third of those surveyed are investing in their Executive team – which I find very encouraging…

But some of the best news I think is that the companies surveyed are growing – profitably…almost 80% said that profitability last year was up.

And while 40% are missing their targets, that’s a huge improvement from the results over the last few years.

BTW, if you’d like to read more, click here for the link to the survey…and the powerpoint presentation.

And if you’re one of the CEO’s looking to develop your leadership team, join me in Atlanta on May 15th and 16th for the Fortune Leadership Summit with the likes of Jim Collins – who’s keynoting and Jim Stengel, former Global Marketing Officer at my old stomping grounds, Procter and Gamble and author of “Grow:  How Ideals Power Growth and Profit at the World’s Greatest Companies”. Here’s the link for more info…let me know if you can attend!

For those of you who missed our Sixth Growth Strategies Breakfast last Friday, I wanted to share Dave Power’s recent blog on “Four Keys to Innovation and Growth”.

Not quite as good as seeing him “live” but a good summary of the concepts he shared with us AND…with the added bonus of links to some very practical tools that will make you think differently about your market, your offerings and your business model.

Next week’s blog?  The results from our Sixth Annual Growth Strategies Survey!

“Business model innovation has a lot of facets to explore,” said Dave in a recent conversation.  “You could be changing your channels, your pricing model, your value proposition – you don’t HAVE to dream up a brand new product or service.”

But what about some of those “practical” examples that I promised?  Let’s talk about one that most people know…

Do you know who was one of the lead innovators in the arena of software as a service?

SalesForce.com

They were one of the first companies to come up with the idea of selling software on a subscription basis and getting paid monthly.  Basically they said to their customers, “We’ll keep the software here, we’ll run it, and you’ll go on the internet and access it.”  They’re in the software business but in a very different way.

Very radical thinking at the time but what’s the benefit for their customers?

I don’t have to keep upgrading.

I don’t have to have an IT department to make it work.

I’m not having to purchase expensive software.

I can access it from everywhere.

The cost is much more manageable.

I don’t have to do my own upgrades.  Salesforce does it for me.

And the benefits for Salesforce?

First, they have regular recurring revenue – which is always a great model, especially for increasing your valuation.

Second, YOU as their customer put all of your customer data in THEIR product.  Very sticky product and customer relationship.

Third, they lowered their cost of software development….and finally…

All of the software upgrades are done in their shop and they notify people with “Here’s a new feature” and it’s done.

Now, everyone’s doing it.  They changed the paradigm – and successfully navigated the “S” curve!

What about other examples?

Well, Dell changed their distribution channel.  Instead of having their customers going to Best Buy or some other store, they created the do-it-yourself model.  You go online – in the comfort of your own office or home, you decide what parts and equipment that you want, then you order and they ship.  (And they’re getting paid up front with very little in carrying costs.)

But here’s the big question:  How do you know that the changes that you make will be successful?  How do you know the new model will work?

Dave says that making the right decisions requires a deep insight into your customers.  You’ve got to get out of the office and talk with them and if possible, seeing them use your product and service.  If you have customers, you have a BIG advantage.

“Be very close to them,” he shares, “AND know what the problem is that YOU can solve. Then, do a positioning  strategy around a problem.  If you have the right problem statement, then you can do a much better job of getting the attention of YOUR market.“

Sounds intriguing doesn’t it?  Want to hear some other examples?  And get a few practical tools to do this type of strategic thinking and positioning in your business?

Sign up to hear Dave speak at our Sixth Annual Growth Strategies Breakfast on Friday, March 16^th!

We’ll look forward to seeing you there!

Dave Power has spent his career helping growth companies to grow…and helping them do what they don’t want to always do – acknowledge that today’s success doesn’t insure any success going forward, unless you’re willing and able to innovate.

Dave brings a unique perspective to the issue of growth – one could say a 360 Degree view of the problem.  He’s sat in many seats from CEO to General Manager to Board member to Advisor to Educator.  And no matter what seat he’s sitting in, he firmly believes that if companies fail to keep a constant eye towards innovation, they’ll ultimate hit a plateau and fail to deliver on their potential.

“There’s no rising tide to lift you now,” he told me in a recent call.  “We’re not going to have the economy to help businesses who can’t innovate.  And no matter what business you’re in, all of them will reach an “S” curve.  You can buy time and stretch the curve out with your current customer base, or product, or business model or market – but you’re just delaying the inevitable.”

He goes on to say that growth requires asking some key questions of yourself, your team, your customers and the market.

* Why is the engine sputtering?

* How can we get it going again?

* What kind of problems are our customers and our markets having that haven’t been solved?

* What can we learn from other companies like SalesForce.com, Zoots and Dell that can give us an edge in our market?

And – you’ve got to make getting the answers to those questions just part of your routine of doing business.

But what about some practical examples of companies that have done exactly that?  Stay tuned – I’ll be sharing some in my next post.

And if you haven’t yet registered to hear Dave speak at our Sixth Annual Growth Strategies Breakfast on Friday, March 16^th, sign up here!

But what are the “healthy habits” for maintaining and growing a healthy business year after year?

The economy may be coming back but that’s not a reason to slack off on all of the good business practices that many of you have been putting in place over the last year or so.

So, in case you need a little “reminder”, I’ve put together a new white paper, “Prepping for the Next Recession” with SEVEN RULES that you can use as a checklist once a quarter or so to help you keep your eye on the ball.

Click here to download the paper – the “rules” are listed below – and don’t forget...

A key component to growing a sustainable business is staying ahead of the growth curve and being Innovative with your products, services and processes –

So if you haven’t signed up for our “Sixth Annual Growth Strategies” Un-Marketing Event on Friday, March 16^th with private equity investor and advisor Dave Power of Power Strategy. SIGN UP NOW and hear the results from our Sixth Annual Survey of small and mid-market businesses too!

THE “RULES”

1. Take the time at least quarterly…to define and/or REFINE a clear and Robust Strategy that clearly defines your objective, sandbox and competitive advantage.

2. Set Long-term and Short-term goals…Not just where you want to be in the next three to five years, but also your 12 month and 90 day plan.

3. Define your Success Metrics…and make sure that they’ll give you actionable information against your plan(s).  Put in place the right set of Meeting Rhythms to keep you and your team on TRACK and ACCOUNTABLE.
   

4. Hire the RIGHT people…they’re your most important asset and remember that a Great “A” player is worth three “B’s”.

5. Keep your TEAM energized…by making sure that they understand the business and their own goals AND by getting them involved in short and longer-term business decisions.

6. Solicit Feedback constantly…from your customers, your employees and the market.  Have a regular process in place (at least monthly) to review what you’re learning.

7. Manage and grow your CASH…and put in place the right forecasting tools to keep you honest.

Again, for the full paper, click here…and let me know what your “Rules” are…

Most of my clients…and many of my business colleagues, believe that my “secret” profession is bookseller.

I’m always recommending a book (or usually a chapter or two of a book) or sending them a Harvard Business Review article or citing the line from a recent Fortune business column I’ve read because of an issue or problem that they’re having that’s come to my attention.

In the last few months, three books have been high on my list of recommended readings – I’ve easily given away two dozen copies (if not more) to business people and CEO’s with the words, “Just read chapter [fill in the blank]…”. Or, if in one case because the client is in Europe, I scanned the chapter and sent it to him via email with the words, “You have to read this!”

So for those of you who I haven’t seen or spoken with, and have missed my onslaught – here’s my reco’s – and depending on what your challenge and / or focus is for 2012 – Pick Your Poison!

For those of you with a #1 Goal this year around PEOPLE, whether it’s finding and recruiting the right people…

or developing the ones that you have…

or doing a better job of keeping the “virtual bench” full…

– definitely check out “Who” by Geoff Smart and Randy Street.

Geoff is part of the father/ son team of Brad and Geoff Smart who developed TopGrading at General Electric and “WHO” does a fabulous job of “codifying” the code of TopGrading, basically giving you a recipe to sourcing, recruiting, interviewing and developing an “A” team. I found chapters 2 and 4 to be particularly helpful especially the part about developing a position scorecard and the Four-step Interview process which when applied properly results in a 90% success rate for new hires – that’s better than 3x the average results most businesses get.

If your challenge this year is better Fiscal Management, Increasing Profitability and Generating more CASH,

Check out Greg Crabtree’s wonderfully simple and to-the-point book, “Simple Numbers, Straight Talk, Big Profits!”

Greg is a CPA, an EO’er and has run a highly successful accounting firm in Alabama for a couple of decades advising the small and mid-market to “see beyond the numbers”. I especially liked Chapter 2 – on why 10% profit is the new ZERO and – for those of you less than $10Million in revenue – definitely check out Chapter 3 about “Surviving the Black Hole”.

And for those of you who have been working diligently to bring your STRATEGY up to snuff…

and haven’t picked up a copy of “Great By Choice”, Jim Collins’ new book,

download it NOW and read Chapter 6 where he introduces the concept of a SMaC recipe…

a key component to develop as a part of creating a durable strategy.

The word “SMaC” stands for Specific, Methodical and Consistent and according to Collins’ is a set of durable operating practices that create a replicable and consistent success formula for your business. It turns strategic concepts into reality and is a more enduring set of practices than mere tactics. In the Appendix you can find examples from the highly successful companies that he studied of the SMaC’s that have propelled them including ones from Southwest, Microsoft, Intel and Progressive Insurance. Very helpful for those of you who are working to really codify what you’re doing and make it durable.

And…Make sure to SAVE THE DATE!

Our 6th Annual Growth Strategies Breakfast is coming on March 16th - Invites coming shortly!

“What was your biggest learning in the last 12 months…and what will you do the same or differently going forward as a result?”

The answers always are intriguing and more often than not I get, “Wow!  That’s a great question…I hadn’t thought about it.”

Most of us don’t. We’re so swamped just trying to get done what needs to be done that we don’t take the time to pause and reflect, let alone use our new-found knowledge to inform our planning and decision-making processes going forward.

As for me, I’ve got two that I’d like to share with you – lessons gleaned from the last year or so that I’m going to make Darn sure that I continue to apply in the year ahead.

My first and most important lesson?  “Win Win or No Deal.”

A wonderful life learning and what has become my rule to live by in all of my relationships – both business and personal.  Courtesy of Stephen Covey, author of another “Habits” book, “The Seven Habits of Highly Successful People”, this one is Habit #4 and comes right after his fabulous chapter on “The Paradigms of Interdependence” – what I think is required reading for everyone who wants to have fully engaged relationships with all of the important people in your life.

Habit #4 basically states that if we can’t find a solution (or approach or path forward) that works for and benefits both of us, we agree to disagree agreeably – No Deal. As Covey says, “I don’t hire you or we don’t take on a particular assignment together because it’s obvious that our values or our goals are going in opposite directions.”

He goes on to say that it’s so much better to realize this up front in a relationship instead of downstream when expectations have been created and both parties have been disillusioned.  When you live by this motto you can honestly say, “I only want to go for Win/ Win – if both of us can’t win, then it’s okay to go our separate ways or not work together.”

The amazing thing for me as I’ve been applying #4 over the past few months is how freeing this “Habit” is – for myself as well as the other important people that I know and meet in my life.  It’s made a significant difference in how I approach my family, my friends as well as my business associates, prospects and clients.  I’ve been able to be more open, to not make compromises and have found as Covey says that it contributes to an emotional honesty that results in deeper and more meaningful relationships.  A very cool thing…

My second lesson?  “The past is unalterable.”

I don’t share this lesson lightly. I’m probably one of the worst people I know for second-guessing myself and using my mistakes as my personal whipping post.  No matter how much we beat ourselves up over a bad decision we made or what we didn’t do, however, all that we can do is learn from our past and use it to create the future.

The last half of 2011 I had this lesson highly visible – sitting right on my desk where I would look at it every day - a reminder that every day is a new day, that there is nothing I can do about changing the past (until someone invents a time machine ) and all we can do is learn from our experiences – all of them – and go forward.

So what are your lessons from the past year?  What will you continue to do or do differently in 2012?  I’m curious to know…so email me.  I’d love to hear about them from you!