Traction Page 5

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  Randall Industries

  • Collaboration

  • Enthusiastic, energetic, tenacious, and hardworking

  • Honesty and integrity

  • Humility

  • Pride in work

  • Ability to adapt/adjust

  Professional Grounds Services

  • We do whatever it takes in every situation

  • We have fun

  • We are passionate about our work

  • We have integrity in all that we do

  Don’t run out and tell everyone immediately after you’ve established your core values. Instead, let them simmer for 30 days and then meet one last time as a team to sign off once and for all on the final list.

  The next step in the process is to communicate these core values to the rest of the organization. It’s time to create your presentation speech. People won’t necessarily understand what you mean if you merely state each core value. That’s why each one needs to be backed up with stories, analogies, and creative illustrations to drive home its importance.

  When writing your core values speech, make sure you word each core value with the same pattern or tense (e.g., “To always …” or “We always …”). Make sure to bullet-point three to five supporting examples under each. This will give you a rough guide of how the speech should be laid out. From there, you can improvise.

  Below is an example of an actual outline for a core values speech.

  Team-oriented approach

  • You can get what you want by helping others get what they want. It’s all about service. How can we serve our customers and fellow employees?

  • Strive to always act for the greater good of the organization, not our self-interest.

  • We should view ourselves as playmakers—a good assist is often more satisfying than getting the goal in sports and at work.

  • In sports, team play overcomes raw talent if that talent is not playing together. This applies equally in the work environment.

  • We are a team and presently a very good one. Let’s together aspire and work to become great!

  Commitment to excellence

  • As the saying goes, “We only get one chance to make a first impression.” Let’s make it a good one.

  • The written word. It should be clear, concise, and directly to the point. My dad is fond of saying, “If I had more time, I would have written a shorter letter.” His point is this: Let every word tell.

  • Use we vs. I. Using “we” signifies you are a representative of an organization larger than yourself. The use of “I” can connote ego.

  • Be professional when the situation calls for it, and, likewise, feel free to be casual in the right circumstances. Use your emotional intelligence here. However, when in doubt, err on the side of professionalism and conservatism.

  • Reputation outweighs profit every time.

  Problem-solving approach

  • What do we do well? Solve problems.

  • How do we solve problems well?

  • Get the facts

  • State the issues correctly and succinctly

  • Ask the right questions

  • Engage in unrestricted but efficient debate

  • Listen carefully to all arguments

  • Based on relevant facts and persuasive argument decide next course of action

  • Assign responsibility for “next steps”

  • Promptly execute on agreed-upon course of action

  • Follow up on progress at next meeting

  • Sometimes a decision is made by not making a decision.

  • Sometimes a “wrong decision” produces a better outcome than no decision at all. Velocity of decision-making is often as important as the quality of the decision. Other times protracted contemplation is warranted in order to get the right outcome. This is an art, not a science. Experience counts here.

  Candor

  • Open and honest communication should be our goal.

  • We can all pursue improvement if we are constructively apprised of our strengths and shortcomings.

  • Be clear and honest, yet sensitive and supportive.

  • Avoid “talking down” to others.

  • Seek to communicate with proper balance of confidence and humility.

  • When a decision is made that is not in line with your recommendation, simply move on. Don’t take it personally. It does not reflect negatively on the value of your input.

  Fairness

  • Demand results.

  • Have a sense of equity. What is a just result under the facts?

  • It’s OK to be tough when circumstances call for it, but do not take unfair advantage of your strength.

  • Be compassionate.

  • If you’re dealing with a ruthless or unethical opponent, fight hard but always within the rules of engagement. Don’t fall into the trap of stooping to his or her level.

  Balance

  • Work smart. Do what is necessary to get the job done right.

  • Valuable output is the greatest measure, not hours put in. Anyone can keep busy, but that does not equate to productivity.

  • The story of the accountant who works until 11 p.m. during tax season but has ample time for golf/family in the off-season months—an example of life in balance?

  • Volunteer in the community. Always seek to give back. Involve your family.

  For more inspiration, here is a complete core value speech as it was delivered to the 51 employees at Wolff Group by the co-owner, Stuart Wolff:

  We at Wolff Group are about to embark on our 10-year anniversary! One decade in business as Wolff Group!

  But actually, nothing is more important than the number 51.

  Yes, 51. That’s the number of individuals, people—yes, you—that make up the Wolff Group team, the Wolff Group family. Here are a few more numbers: We could not have been in business for 10 years with four offices in three states as one team if it were not for each and every one of you. Each and every one of you adds something to define who we as Wolff Group are. We are one of the leaders in our industry, yes, but we are so much more.

  Enough about numbers, let’s use some words. Words such as:

  Integrity and honesty

  Hard work

  Service-oriented

  Dedicated

  Teamwork

  The words above describe us as Wolff Group. These words describe what makes us tick, what drives our passion, what is at our core, the heart of Wolff Group, the heart of us. These words describe a part of each and every one of you.

  Why do customers do business with Wolff Group—with a Scott*, with a Tina, with a Bill, with a Lynn, with a Josh, with a Debbie, with a Hank, with a Barb, with a Sean, with a Steve, with a Kelly, just to name a few?

  Because these people I just mentioned and all of you understand the importance of treating others with respect, and being honest, sincere, and trustworthy. We know how important …

  Integrity and honesty are to a relationship, any relationship, whether it be a business or personal one. Tie that in with a sincere interest in understanding the needs of our customers, listening to their needs, and being ready to assist when needed. To jump in and help out makes us …

  Service-oriented. This is why when a customer like [ABC Company] calls and tells Tina that the new product is on their menu next week and the supplier is out of stock, Barb stops what she is doing and adds onto the supplier’s order to take care of the increased demand for this product. And then again when we find out that the supplier’s order is on hold due to a credit issue and Debbie has to stop what she is doing to help get that deduction cleared so the order will ship on time. That shows that we are …

  Dedicated and don’t mind Hard Work. Then Sean gets an urgent call from [XYZ Company] on a Thursday afternoon saying, “We need you in a sales meeting first thing tomorrow morning with [PDQ Company]
.” So Sean calls Debbie in a panic to help him out and put together a custom flyer for the next morning that she completes and e-mails to Sean at 1:00 a.m. that night. That proves we thrive on …

  Teamwork. We respond with a yes, we can do it for you, we can make it happen. This is a team of service-oriented individuals that are focused on their customer needs, work hard, and are ready to do whatever it takes! I can go on sharing more and more stories, but luckily for all of you, I will just name a few.

  One thing you will notice about these words is that they’re virtues that we can’t teach in a class or train you on; they are part of what makes up each and every one of you. It’s your core, these are your core values, and it’s what makes your heart go pitter-patter every day. Whether it is in your upbringing or in your genes, I am not really sure, but one thing is for sure: People with these virtues are the ones we want to be a part of our team, of our family. Continuing to be committed to finding the right people will be one of the keys to taking Wolff Group to the next level.

  Identifying what makes us tick is important, because it lays the groundwork for who we are, where we are going, how we are going to get there, and when. We are on a path that will take us to places we have never been before, and things we have not achieved before. We are on a path that will send us and drive us to wherever we want to go. It is a very exciting time at Wolff Group. I am so glad that each and every one of you is a part of it.

  I am driven and dedicated to making the next 10 years at Wolff Group the best ever. I hope you will all join me for this ride—it’s going to be fun! Here’s to our next decade of blazing a new trail!”

  * * *

  This core value speech was a tipping point for Stu Wolff to catapult his company to four times its size. He delivered this speech five years ago, and since then, with clarity of his culture, he and his partner decided to part ways due to a lack of core value fit. He found a new partner with matching core values.

  Once he built a strong culture and crystallized his business model, he then acquired three companies that doubled the size of his company and recently completed the acquisition of an equal-sized company.

  Wolff Group is now a $16-million company with a strong culture—very well run and well respected in its industry.

  * * *

  Your core values should become a guiding force in your organization and should be incorporated into your hiring process. When you interview employee candidates, they need to hear that speech. They need to know who you are. It’s easy to find people with the right skill set, but you want the one that rows in your direction. You will find that your hiring success ratio will increase if you evaluate applicants’ core values before their skill. Every one of my clients follows this exact same process. The reason? It works.

  Once your speech is written, delivered, and incorporated into your hiring process, it will become common language within your organization, and that’s where your core values will start to come to life. There are many creative ways to keep them alive. For example, one particular client with an amazing culture names each of its conference rooms after a core value. McKinley has a core value called “Gumby.” It gave each of its employees a Gumby doll with an attached label explaining that Gumby is flexible, helpful, optimistic, honest and pure, adventurous, fearless, loving, and everybody’s friend.

  * * *

  I’ve worked with many clients that have acquired other companies, merged with other companies, and have been acquired (incidentally, five of my clients have been acquired, and in every case, they sold for unusually high multiples and the acquiring company said they were the best-run small company they’d ever seen). The number one reason those deals were successful and continue their success is due to core value alignment. I advised every client to start each due-diligence process with core value fit; if there’s a fit, everything flows. If not, I advise them not to move forward.

  * * *

  In short, it doesn’t matter what your core values are as much as it does that you’ve clearly defined, communicated, and are living them as an organization. Only then can you truly surround yourself with the people who will prepare your organization for growth.

  Work on establishing your core values now. Once you’re finished, plug them into the V/TO.

  WHAT IS YOUR CORE FOCUS?

  It doesn’t take much for an organization to get off track in the hustle and bustle of the business world. Businesses can easily become distracted by opportunities that are wolves in sheep’s clothing. Others falsely assume that since they are succeeding in one business, they can succeed in any. Others simply get bored.

  Your job as a leadership team is to establish your organization’s core focus and not to let anything distract you from that. Many things have the potential to distract us from our core focus. Steve, a member of one leadership team, calls it “shiny stuff.” A competitor, a new idea, a new product, and poor advice that looks like good advice at the time are just a few examples.

  The central concept of a core focus has been given many different names over time, including “mission statement,” “vision statement,” “core business,” “sweet spot,” “the zone,” and “the ball” (as in “keep your eye on the”). In his book The 8th Habit, Stephen Covey calls it “voice.” Dan Sullivan calls it Unique Ability®. And in Good to Great, Jim Collins calls it “the hedgehog concept.” I call it core focus because it should come from your company’s core and you must stay laser-focused on it.

  Russell H. Conwell’s story “Acres of Diamonds” illustrates this point well. To paraphrase: There was once a man named Ali who owned a large farm with many orchards. Ali was perfectly content with his lot in life until one day, when a local priest told him how the Almighty had created diamonds, and how one stone the size of his thumb was worth enough to purchase an entire county. As the story goes, Ali went to bed a poor man. He sold his farm and set out to seek a fortune in diamonds.

  After years of searching all over Palestine and Europe and not finding a single diamond, he ended up penniless. In a fit of despair, he threw himself into the raging tide and drowned. Soon afterward, the purchaser of Ali’s farm was visited by the same priest that told Ali about diamonds. The priest noticed a small diamond on the mantelpiece and asked, “Where did you find this?” To which the man replied, “There’s a brook that runs through our farm, and it’s full of them.”

  Most people are sitting on their own diamond mines. The surest ways to lose your diamond mine are to get bored, become overambitious, or start thinking that the grass is greener on the other side. Find your core focus, stick to it, and devote your time and resources to excelling at it.

  When business owners get bored, there is always the potential for them to get distracted by the shiny stuff and inadvertently sabotage what they’ve created. Fading passion and losing sight of why you’re in business are other pitfalls that could lead to the same fate. Defining your core focus will return you to your original levels of clarity and excitement.

  A great example of a company distracted by shiny things was Broder & Sachse Real Estate Services Inc. Just prior to starting its EOS process, the real estate management company had dodged a bullet.

  This particular bullet came in the form of a business proposal from a man who wanted Broder & Sachse to buy an industrial building he owned so he could start an engine powder-coating company. The deal was that he would lease the building from Broder & Sachse and would use the proceeds of the sale to build the line and the facilities. The man had customers already lined up; he just needed to build the company and open its doors. On paper, it was a million-dollar idea. Excited by the prospect, co-owners Rich Broder and Todd Sachse decided to go one further and partner with the man in the powder-coating business.

  After investing a million dollars of their own money and a year and a half of their time, Rich and Todd eventually closed the business. In the three months it had been open, it had lost a total of $300,000. Clearly, it was the worst business decision of their careers. Th
ere was, however, a silver lining. Six months later, someone stepped in and bought the company for almost as much as they had put into it. They got lucky. On the other hand, they still lost a year and a half of time and focus on their core business, and that loss is incalculable.

  Their mistake is now known around the office as a CCT, which stands for the short-lived company’s name: Capital Coating Technologies, Inc. Now, whenever they see something shiny, they jokingly dub it a CCT and direct their energies elsewhere.

  Broder & Sachse’s core focus is owning and managing real estate, not powder coating. While a new idea may look like a no-brainer on paper, it’s simply not worth doing if it’s not a part of your core focus.

  When your core focus is clear, you’re going to come to several important realizations. You’ll realize that certain practices, people, and, sometimes, entire divisions and/or product lines don’t fit into your core focus. As a direct result of this discovery, past EOS clients have gotten rid of entire departments and excelled as a result.

  Once Image One, a $7 million laser printer service and supply company, was clear on its core focus, it eliminated its computer networking business unit and focused entirely on simplifying its clients’ printing environments. The decision was a painful and emotional one, but the company did it. As a result, it’s grown by an average of 30 percent for every year of the past four, resulting in a sale to a publicly traded company in its industry for high multiples.

  Image One’s president and co-owner, Rob Dube, says, “The decision to close our computer division after six months was a turning point in our company’s history. Once our core focus was clear, there was no turning back.” Incidentally Rob and Joel have purchased the business back and continue to grow it at 30 percent per year. Image One was recently selected as the Small Business of the Year by Crain’s Detroit Business and also as a finalist for the Ernst & Young Entrepreneur of the Year award.

  Decide what business you are in, and be in that business. As the old saying goes, “He who chases two rabbits catches neither.” Or as Al Ries pointed out in Focus, “Imagine a medical practice saying to itself: ‘We are known as terrific brain surgeons, so let’s get into the heart, liver, lung, and limb businesses.’”