Economy

When your organization is stuck and is unable to get to the next level or encounters an insurmountable business problem, consider the following: if you had to redesign your business today with no constraints, how would you do that?

Many of our business problems result from all the processes, procedures, and paradigms that we've put in place. Once they are in place, they become part of the organization's business culture and, unfortunately, seem unchangeable. And yet, we forget that we created these roadblocks and are hesitant to remove them.

One business owner was confronted with such an issue. He realized that his business was going to fail, and he would lose everything. He brought this issue to his Vistage Group and asked his peers for their counsel and advice. He wasn't expecting that they would save his business, but that's what they did by asking a simple question. The members asked this individual, "If you had to start over again, how would you redesign your business?" And the member responded by stating the number of people he would employ, the positions that would be filled, the facilities that he would use, and the processes that would be changed. At that moment, he recognized that there was an answer, but also, would he have the fortitude to make the necessary changes. It is easy for us to trick ourselves into believing we cannot change the components of a business. Yet, many areas can be modified respective to our level within the organization. The challenge is to have the courage to make the changes. When this question is answered, it leaves the decision-maker with a simple gap analysis.

The gap analysis is one of the most simplistic forms of a business or strategic plan, which can be summed up as follows: "Where am I, where do I want to be, how do I get there?"

Determining what change is necessary and how to implement is difficult because of the following:
• Unwillingness to change
• Political or family restrictions that may overrule the change
• Inability to see the change that is required

If you google ”small business failure,” you will find many different examples where companies went in the wrong direction. Consider the following instances that have resulted in business failure:
• Failure to establish and communicate company goals
• Lack of vision and purpose by principals
• Poor market segmentation and strategy
• Competition or lack of market knowledge
• Over-dependence on specific customers or individuals in the business
• Lack of management systems
• Absence of a standardized quality system
• Lack of financial planning and review
• Inadequate capitalization
• Owners or leaders concentrating on the technical rather than the strategic work at hand

It is easy to confuse cause and effect with lists such as these. Keep in mind that the items above are symptoms. For almost all business failure cases, regardless of company size, the main culprit or cause is ineffective, dysfunctional, or incompetent management teams. It is easy for a management team to be blindsided by a competitor, technology, or dysfunction. Overlooking any of these areas is one of the most fundamental reasons companies should have some form of outside board that is credible and persuasive to help management recognize potential problems and opportunities for the organization. It is also a group like this that can help your organization redesign itself and identify areas holding the organization back or opportunities that should be pursued. Consider how we witness this all the time with the national football league. General management attempts to secure impact players for the current season and impact players for the future. Roster changes are made where fans complain, critique and wring their hands over the future success or failure of the next football season.
The lesson for us is simple. Do not let the failures or successes of the past obstruct your future success. Critique your business as if you had to start again and see what changes you would make. Once the changes are identified, do you have the courage to make it happen?


Who is Jim Lindell

Jim Lindell is President of Thorsten Consulting Group, providing strategic and financial consulting, professional speaking, training and executive coaching. He is a Vistage Chair and responsible for two CEO groups in the Milwaukee area. He is an Award-winning Speaker and Best-Selling Author. Contact him at 262-392-3166 or [email protected].

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

Soft skills, which include emotional intelligence (EI), are becoming increasingly important in the workplace. For accountants, soft skills can be just as important as technical skills, as they help build strong relationships with clients, coworkers, and other stakeholders. Emotional intelligence, in particular, is essential for accountants to succeed in their roles.

There are five categories of emotional intelligence that are particularly important for accountants:

Self-awareness: Accountants with strong self-awareness understand their own strengths and weaknesses, and are better able to recognize and manage their own emotions. This helps them make better decisions, communicate more effectively, and build stronger relationships with others.

Self-regulation: Accountants who are able to regulate their own emotions are better equipped to handle stressful situations and maintain their composure under pressure. This can help them stay focused on their work and avoid making mistakes.

Motivation: Accountants who are motivated to succeed are more likely to set and achieve goals, take initiative, and be proactive in their work. This can lead to greater job satisfaction and a sense of fulfillment in their careers.

Empathy: Accountants who are empathetic are better able to understand the needs and perspectives of their clients and coworkers. This can help build trust and rapport, leading to stronger relationships and better outcomes.

Social skills: Accountants with strong social skills are effective communicators, able to build rapport, influence others, and resolve conflicts. This can help them work effectively in teams, manage client relationships, and collaborate with stakeholders across the organization.

In summary, emotional intelligence is critical for accountants because it helps them build strong relationships with clients, coworkers, and other stakeholders. By developing self-awareness, self-regulation, motivation, empathy, and social skills, accountants can become more effective and successful in their roles.


Connect with me!

I'm Jim Lindell of Thorsten Consulting. If your organization or association needs a speaker for a keynote or breakout session on practical business topics, please call me.
In addition, if you or your team needs executive coaching or leadership development, I can help your staff reach a higher level. Please give me a call. Thank you for your time.

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

Business culture is the way things get done in an organization. It encompasses the values, beliefs, behaviors, and attitudes that define how individuals and groups interact with each other and with customers. Culture is often described as the "personality" of a company and plays a crucial role in shaping the organization's success. It's important to recognize that no culture is inherently right or wrong. Each culture has its strengths and weaknesses, and what works for one organization may not work for another. What's crucial is that the culture aligns with the organization's values, goals, and strategies. It's up to the organization's leaders to shape the culture to create a cohesive and productive work environment.

Formal Culture - Orchestra

In a formal culture, there are clear rules, regulations, and protocols that govern how individuals interact with each other and with customers. Communication tends to be hierarchical, with decisions made at the top and cascaded down the organization. Employees are expected to follow established procedures and adhere to strict standards of behavior.
The orchestra is an apt metaphor for a formal culture. Members of an orchestra must follow the conductor's cues and play their instruments in a precise and coordinated way. The conductor is the leader who sets the tone and direction for the performance.


Informal Culture - Irish Rovers

In an informal culture, the focus is on relationships and collaboration. Employees are encouraged to share their ideas and opinions, and communication tends to be more horizontal than vertical. There may be fewer formal rules and procedures, and employees may be given more autonomy to make decisions.
The Irish Rovers, a folk music group, exemplify an informal culture. Folk music is often passed down through generations, with each musician adding their own interpretation and improvisation. Collaboration and spontaneity are key elements of folk music, much like an informal business culture.


Chaotic Culture - Heavy Metal Group

In a chaotic culture, there may be little structure or organization. Communication may be unclear or even non-existent, and there may be a lack of direction or strategy. Employees may feel unsupported or uncertain about their roles and responsibilities. A heavy metal group is an appropriate analogy for a chaotic culture. Heavy metal is known for its loud, aggressive sound and rebellious attitude. The lack of structure and rules in heavy metal music is often seen as a form of artistic expression, but it may also lead to chaos and disorganization.


"Go with the flow" culture - Jazz group

A "go with the flow" culture is characterized by a sense of fluidity and adaptability. In a "go with the flow" culture, employees are encouraged to be flexible and open to change, and there is a sense of collaboration and cooperation among team members. A jazz group provides a good metaphor for this type of culture, as jazz musicians often improvise and build on one another's ideas, creating a dynamic and evolving sound. In a "go with the flow" culture, employees are empowered to take ownership of their work, and are encouraged to experiment and take risks. This can lead to a sense of excitement and innovation, as employees work together to explore new ideas and approaches. However, without clear guidelines and procedures, a "go with the flow" culture can also be unpredictable, and may require strong leadership to ensure that everyone stays aligned with the organization's goals.


In conclusion, understanding the culture of an organization is crucial to its success. Culture is the way business gets done, and it shapes everything from how employees collaborate to how they approach problem-solving and decision-making. It is important to recognize that there is no "correct" culture, and that what works for one organization may not work for another. However, it is also important to ensure that the culture is aligned with the organization's strategic goals, and that employees are recruited based on how well they fit with the culture. Hiring the wrong employee can spell disaster for an organization, particularly if the employee does not match the established culture. While it may be tempting to shake things up by hiring someone who is radically different from the rest of the team, this can lead to conflict and dysfunction. Instead, future employee recruitment should focus on finding candidates who are a good fit with the culture, and who share the organization's values and goals. Ultimately, a strong culture is a competitive advantage for any organization. It creates a sense of unity and purpose among employees, and can help to attract and retain top talent. By understanding and nurturing the culture of the organization, business leaders can create a thriving and successful enterprise that is built to last.



Connect with me!

I'm Jim Lindell of Thorsten Consulting. If your organization or association needs a speaker for a keynote or breakout session on practical business topics, please call me.
In addition, if you or your team needs executive coaching or leadership development, I can help your staff reach a higher level. Please give me a call. Thank you for your time.

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

Recently there was a commercial about Guinness starring Joe Montana, the famous football great. Unless you're a football fan, you might not even remember Joe, one of the greatest quarterbacks ever. In the commercial, Joe is sitting at the bar. And a young person beside him, unaware of his celebrity status, asks him if he used to be a tennis player. Rather than challenging the young kid about his football greatness, Montana smirks and says, "Sure, kid."

In this article, I want to talk about legacy versus impact. Many people worry about how they will be remembered once they are gone. What will their legacy be? Or how will they be remembered? Concerned about being remembered, people try to establish non-profit foundations, achieve some form of greatness, have their name on a building or company, make an endowment to a University, et cetera. But here's the problem these legacies will, for the most part, not be remembered. And I don't say this out of meanness or to discredit those that want to do something good. However, most of us will not be remembered in the long run outside of our loved ones and close friends.

Think of famous historical people. Unfortunately, some of the names you remember have a negative connotation because the people did horrible things. On the other hand, some people did beautiful things. And yet, after a short period, just like Joe Montana, people will not remember it or remember a name but have nothing else associated with it. So this doesn't mean we don't try to achieve good things for the rest of society, but I would suggest that we change our outlook and not think about how you will be remembered years from now. Think about what impact you can have today because, as we help one another, other people will start to develop thoughts and memories of their interactions with you. It will lead to one form of a legacy of helping others.

You may have had this experience when you go to a funeral of a loved one, your mom, or your dad. Somebody comes up to you and says, "Do you know there was a time when your mom or dad did this for me? It was so unique, and it impacted my life." And once we affect other people's lives, you can be assured that you will be remembered most appropriately. Contrast that with the statues and monuments that you have visited. Go back and challenge yourself. Do you know what the person stood for? Do you know what they did for society? Even today, our society is questioning our history, and people are tearing down monuments for various reasons. Those monuments were erected to honor individuals of that period. They had made a significant impact on their community, at least from the perspective of their peers. You may not be able to have a long-lasting legacy, but you can impact the lives of people today, which is more significant.


Connect with me!

I'm Jim Lindell of Thorsten Consulting. If your organization or association needs a speaker for a keynote or breakout session on practical business topics, please call me.
In addition, if you or your team needs executive coaching or leadership development, I can help your staff reach a higher level. Please give me a call. Thank you for your time.

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

In today's rapidly changing world, "unthinkable events" has become increasingly relevant. These events are so unexpected and unpredictable that they catch us off guard and leave us scrambling to respond. Such events may be similar to black swan events or fall into the "unknown self" quadrant of the Johari Window, where we are unaware of our blind spots.
Recent examples of unthinkable events include the East Palestine, Ohio train derailment, the COVID-19 pandemic, and the SVB bank foreclosure. While these events may seem unrelated, they share commonalities regarding their disruptive impact on individuals, organizations, and society.

Companies, in particular, need to be prepared for a vast array of disruptions that could have similar consequences to these events. While it may be impossible to predict the specific nature of these events, companies can develop strategies and contingency plans to mitigate the impact of disruptions and minimize the risk of catastrophic consequences.
One approach is to develop a culture of resilience, where organizations cultivate the ability to adapt to changing circumstances and maintain their core functions in the face of unexpected events. Resilience requires a focus on risk management and disaster preparedness and a willingness to embrace innovation and change. Another critical aspect of preparing for unthinkable events is to ensure that communication channels are in place to keep stakeholders informed and engaged. Communication channels include employees, customers, suppliers, and other stakeholders impacted by an unthinkable event. Effective communication can help to reduce confusion and anxiety and promote a sense of shared responsibility and collaboration.

Companies should also invest in technology and infrastructure that can support remote work and business continuity in the event of a disruption. Items to consider are cloud-based systems, virtual meeting tools, and other technologies enabling employees to work from anywhere and stay connected with customers. Preparing for unthinkable events requires a proactive and holistic approach to risk management and disaster preparedness. Companies need to be aware of the potential risks they face and develop strategies to mitigate them while also cultivating a culture of resilience that enables them to adapt and thrive in the face of unexpected challenges.

In conclusion, the East Palestine, Ohio train derailment, COVID-19 pandemic, and SVB bank closure are unthinkable events that can disrupt our lives and businesses. While we may not be able to predict the specific nature of these events, we can prepare for them by developing a culture of resilience, investing in technology and infrastructure, and maintaining effective communication channels. By taking these steps, we can reduce the impact of disruptions and ensure that our businesses can weather the storms of uncertainty and change.


Connect with me!

I'm Jim Lindell of Thorsten Consulting. If your organization or association needs a speaker for a keynote or breakout session on practical business topics, please call me.
In addition, if you or your team needs executive coaching or leadership development, I can help your staff reach a higher level. Please give me a call. Thank you for your time.

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

I want to talk to you about ChatGPT and ESG. I think ChatGPT is a phenomenal tool and will change everything we do in business today. I want to highlight a concern as I asked ChatGPT about ESG. I gave it two questions that were identical other than one word. One sentence was: argue against companies adopting ESG. And the other was: to argue for companies adopting ESG.

Here is the response to the first question, argue against companies adopting ESG.
" As an AI language model, It is important to present our arguments on both sides of an issue. Even if I personally believe that adopting ESG (environmental, social and governance) is beneficial for companies and society as a whole. So here are some potential arguments against companies adopting ESG. " The preceding was verbatim from ChatGPT.

ChatGPT provided a nice list of arguments against adopting ESG. The first was increased costs, one of the concerns of CFOs today. Does it cost too much to follow an ESG agenda? Second, ESG policies may have a limited impact on the environment or society. The third concern was that there might be a competitive disadvantage because the competitors may not adopt ESG and incur costs or compliance issues. The fourth item was a lack of standardization. Across the globe, people are interpreting ESG in very different ways. As a result, there isn't one standard report being used, and comparisons are difficult. And finally, the risk of shareholder backlash. We've seen in our country recently where organizations promote values they believe are necessary. Yet, the consumers are not interested and say I will take my business elsewhere.

Next, I asked ChatGPT to argue for companies adopting ESG. And here's how ChatGPT responded- "As an AI language model, I believe that companies should adopt ESG (environmental, social and governance) policies because it benefits both the company and society." Here are some arguments in favor of companies adopting ESG:

1. A company can improve its reputation. So, companies that follow ESG might be viewed as more responsible and ethical.
2. Companies can reduce risk. Suppose companies employ more tools and tactics to monitor the items that impact the environment, society and governance. In that case, there's a good chance that they will eliminate risks that could hurt the company.
3. Companies can increase innovation and creativity with ESG policies.
4. Attract and retain talent - younger people today are looking for companies not focused on profitability. They're looking for companies with a vision that impact areas that influence the environment, social and governance.
5. Long-term financial performance. ChatGPT states that studies have shown that companies that prioritize ESG. Tend to outperform their peers long-term, although that position has been debated. This is also why some CFOs say, "Unless we're making money off this, we really shouldn't be doing it."

Both positions for and against are pretty well presented from ChatGPT. However, the concern that I have is with the bias of ChatGPT. I asked two separate questions; argue for and argue against ESG. Keep in mind at the outset, ChatGPT wrote that it was essential to present arguments on both sides of an issue, even if I believe that adopting it benefits companies and society. However, when I asked ChatGPT to argue for companies adopting ESG, it never mentioned that there were both sides to the argument. It just wrote I believe that a company should adopt ESG policies because it is beneficial. ChatGPT didn't mention anything about having two sides to the argument.

What is the lesson?

As we use ChatGPT, remember to question the information for potential bias. ChatGPT is revolutionizing the way we are and will be conducting business. The expansion of AI tools will be tremendous in the following months. Learn and adopt with caution.


Connect with me!

I'm Jim Lindell of Thorsten Consulting. If your organization or association needs a speaker for a keynote or breakout session on practical business topics, please call me.
In addition, if you or your team needs executive coaching or leadership development, I can help your staff reach a higher level. Please give me a call. Thank you for your time.

Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

Recently, I saw a quote from General Douglas Macarthur:

"We are not retreating. We are just advancing in another direction."

I love the quote's simplicity and positivity. Too often, we continue on a particular path in our personal lives and business careers, when perhaps we should choose an alternate route. It's not always easy to see where the alternate path may end up, but the current direction might lead us into a terrible situation or severe limitations. Whenever we can assess the situation, ask ourselves, "are there alternatives out there that would be worth considering in our business and our careers as well?" We should determine where we or our business is going utilizing strategic planning. Also, consider contingency and succession plans in case something happens. For example, when facilitating strategic planning, people ask me, "Should businesses have seen Covid coming?" And the answer is yes, absolutely, they should have. Now when I say that, that's tongue in cheek because we might not have recognized Covid specifically. Still, somebody in the strategic planning process should have said, what if something happens, like a tsunami, an electromagnetic pulse, something ridiculous that could shut down our business? At least at that point, someone would have said, "let's talk about what happens if the company gets impacted severely. This allows us to discuss contingencies or even succession planning. So when you think about your career or business, constantly evaluate alternative paths. Be aware of events or concerns that might force you to use an alternative approach. Most importantly, take the time to prepare yourself or your company for any of these areas that could significantly impact your organization.


Connect with me

My name is Jim Lindell. I'm a CSP-Certified Speaking Professional and an executive coach, and I have been doing both for the last couple of decades. Please contact me if your conference needs an entertaining, practical business speaker for keynotes or breakout sessions. If you'd like to see your career grow, please talk to me about being your executive coach.


Email: [email protected]
LinkedIn: https://www.linkedin.com/in/jimlindell/
Twitter: https://twitter.com/thorlessons

Registration is Open! Please join me on December 28 for your Year-end CPE. Please visit https://thorstenconsulting.com/webcasts to Register. Year-end CPE for CPAs, Controllers, CFOs, Accountants, Accounting Professionals "Controller/CFO Strategic Outlook-2023," or "Data and Predictive Analytics / Business Intelligence." You can also register for both at the same time.

Alrighty then! SVB, Signature, Credit Suisse, East Palestine OH , etc. Companies must include contingency planning, risk analysis, scenario planning into the overall planning process. Anything less is incompetence on the part of management. This also holds true for us as individuals and our careers. What will you do, if your company closes, you lose your job, you have to change locations due to spousal move, etc. It is time for serious "Plan B" analysis. #careers #change #planning #management #job #svb #signature #creditsuisse #contingencyplanning

Have you taken the time to create a Plan B for your Business and your Career? If not, you are inviting a breakdown when difficult times or Black Swan events occur. Preparing a Plan B will help in business and career continuity. The embedded video outlines the general concepts of Plan B.

(c) 2023 & 2022 - Thorsten Consulting Group, Inc.

Many corporate teams have used SWOT analysis. There is another tool known as the PESTLE analysis. Pestle stands for Political, Economic, Social, Technological, Legal and Environmental. Please watch the following excerpt from a recent speech to delve further into the topic.
Strategic Trends - PESTLE Analysis - Jim Lindell CSP CPA

As you may know, the American Institute of CPAs (AICPA) announced an exciting proposal to create a new association with The Chartered Institute of Management Accountants (CIMA) that will represent and advocate for the entire accounting profession, while preserving the member bodies of both organizations. As a CPA in business for over 30 years, I am excited by this proposal because I believe it is the next logical step to meet the needs of our evolving profession. That’s why I will vote “yes” and I encourage you to do so as well.

CPAs are fast becoming thought leaders in the business world, and with our growing scope comes a need for broader skills and resources. This proposal would deliver that. While maintaining all the benefits we have as AICPA members, we would also receive automatic membership to this new association, providing access to more international research, tools and market insights to keep our skills sharp in rapidly changing business world. We would gain a ton and lose nothing. It’s as simple as that.

Also, the proposal has the support of the AICPA’s Board of Directors, governing Council, Business and Industry Executive Committee, Government Performance and Accountability Committee, and Women’s Initiatives Executive Committee; 52 state CPA societies; and employers and finance leaders in the U.S. and around the world.

Voting “yes” on this proposal is important to the CPA’s continued growth and success today and into the future.

Take action now
Voting is quick and easy, and I encourage you to join me in submitting your “yes” vote today. Personal and confidential ballot links were emailed out from the third-party vote administrator called, “AICPA Independent Tabulator.” If you missed it, you can visit www.directvote.net/aicpa to retrieve your voting credentials. But don’t wait — voting closes at 5pm ET on June 16. You can learn more about the proposal, by visiting www.aicpa.org/horizons.

The ability to accurately forecast the economy and the markets is similar to the search for the Holy Grail. This chart shows the previous two recessions as contrasted with the Industrial Production Statistics (G17) and the respective 3 and 12-month averages. Note that the crossover at the end of 2015 is very similar to the crossovers that occurred just before the onset of the last two recessions. I believe that this does not bode well for the rest of our economy. Six months from now, it will be easy to see in retrospect. The real challenge will be navigating through those six months.

I remember a story that was shared by a pastor. He said that "if giving a sermon and the argument is weak, pound loudly on the pulpit." When it comes to the economy, the stock market, the unemployment, the student loan debt, the extended automobile terms and interest rates - pundits are pounding loudly all around.

One of these things is not like the others,
One of these things just doesn't belong,
Can you tell which thing is not like the others
By the time I finish my song?

Did you guess which thing was not like the others?
Did you guess which thing just doesn't belong?
If you guessed this one is not like the others,
Then you're absolutely...right!


Sesame Street Song Read more at http://www.songlyrics.com/sesame-street/one-of-these-things-is-not-like-the-others-lyrics/#KmMSSREttHLJLMjH.99

In 2013, Wells Capital contrasted the Velocity of Money (M2V) with a variety of indicators. At the time, they pondered if the money velocity would pick up in 2014 and what would be the results. They also commented:

In the current recovery, the velocity of money is not behaving oddly as many believe. Rather, as shown in Exhibit 1, falling velocity characterizing the contemporary recovery has also been commonplace in past recoveries. Moreover, and most importantly, should velocity continue to simulate past recovery cycles, it should soon begin rising. (source:http://www.wellscap.com/docs/emp/20131111.pdf)

We are now approaching the end of the 1st quarter 2015. What has happened to the velocity of money? It has continued its decline. Consider the following chart:

This relationship is worth reviewing regularly. The potential increase in interest rates, the reduction (or continuation) of QE and the impact on the stock market should show up in the above chart. If Wells believed money velocity should soon begin rising, we are that much closer. By the way, note how the M2V is at the lowest point in almost 45 years.

Jim Lindell
Thorsten Consulting Group, Inc.

The views expressed are those of the author at the time of writing and are subject to change. This material has been distributed for educational/informational purposes only, and should not be considered as investment advice or a recommendation for any particular security, strategy or investment product. The material is based upon information considered reliable, but its accuracy and completeness cannot be guaranteed.