It is often uncomfortable to talk about business failure. However, business failure is only half of a picture. The other half is business success. They are the “Yin and Yang” of doing business. Pro football teams review their prior week games to determine what worked and what didn’t. Plays that worked are repeated or enhanced, and plays that didn’t work are discarded or tweaked. The Bureau of Labor and Statistics tracks the number of business starts and the number of businesses that are still in existence by year – in essence, the “success rate.” Between the 1st and 2nd year approximately 20% of businesses disappear. Around year five approximately 50% of businesses have disappeared. Our focus should be on all tools and methods that help increase the success (and reduce the disappearance “failure rate.”) Note - not all businesses disappear for failure: some are sold, some are successfully closed down, etc. In this article, success and failure are captured in the phrase “Business Longevity.”
This can be illustrated with three types of people: the first is a planned, deliberate individual that is extraordinarily health-conscious and measures many aspects of their life. A second individual is a happy-go-lucky person who lets life evolve. Their motto is “Que sera, sera” (whatever will be, will be.) The third person overindulges in many aspects of their life. They do not control their eating habits or their drinking habits, and as a consequence, they are overweight, out of shape and in generally poor health. If we evaluate these three on their lifespan, which person has the highest chance of dying first? Some people have even begun to use health longevity specialists. These are physicians who focus on helping people extend the quantity and quality of their life.
This analogy can be compared to the business world. There are three types of businesses that fit the same profile. The first is a planful organization. They create plans, they execute the plans, and they measure the resulting success (or failure) of the plan. The second type of business goes from activity to activity depending on where the opportunity is most significant. They may also believe that generating sales will solve all the problems of the organization. The third type of organization is not planful and does not follow any discipline in regards to finances, employees, etc. Which of these three businesses is most likely to experience financial difficulties and potentially a shortened business existence?
This leads us to the concept of business longevity. Business longevity is the practice of assessing where an organization is, determining where the organization would like to be, and then creating the action steps for the business to arrive at its the chosen destination. This may sound similar to business planning, and yet it is much more expansive. The assessment that an organization should go through would encompass areas such as evaluation of historical financial trends, industry analysis, competitor analysis, environmental scanning using tools such as PESTLE and planning tools such as strengths, weaknesses, opportunities, and threats. It should also include a robust evaluation of future innovations and changes in society as a component of the SWOT analysis.
One of my favorite tools is the Altman Z-score. Traditionally this is a tool used to depict the likelihood of bankruptcy, however, the author uses this as an overall measure of the health of an organization similar to the way that a doctor uses a blood pressure analysis. Also, consider expanding the length of time financial information is reviewed. Current financial practices of comparing this year's results with prior years are too shortsighted. If you looked at any two successive years for Sears, the story of their failure does not “pop out.” If you review ten years of their financial information, it is plain to see how the company was declining. At a minimum, a company should understand their key financial metrics including the z-score and selected ratios (such as the current ratio) for a minimum of 10 years or the length the business has been in existence.
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].
Over the last several years, business owners have struggled with a lack of employees, Covid, a virtual workforce, recession, a political divide, supply chain problems, inflation and war. What does it take to run a successful business amidst those disruptions? It’s tough enough to generate profits in a typical business environment, and it gets much more challenging in the abnormal business environment that we have right now.
How can you cope?
Business owners and employees must be resilient, deal with stress, and persevere no matter how long the tough times last. Let’s consider what you can do to push through stress, disappointment and setbacks on your road to success. Thinking about your mindset and resilience is essential to succeed in the long run.
Resilience refers to the ability of a person or group to bounce back from hardship. Being resilient is crucial to success because you can adapt quickly when faced with change. How do you develop resilience, and what are the most important traits for being resilient?
1. Develop flexibility. Try to be open-minded about new things and business approaches and explore different viewpoints on life issues with people who think differently than you. Flexibility builds creativity, confidence and self-esteem, which will help us persevere in difficult times.
2. Change your perspective. Practice changing how you view difficult times. For example, instead of focusing on the negative consequences of a challenging situation, ask yourself what lessons you can learn from this experience.
3. Consider how there may be some good aspects, even though they may not always be easy to see. Changing your perspective can help you put any difficult time into perspective. You’ll still need to deal with the issue at hand, but it won’t feel like such a burden if you’re looking at the positive side of things.
More Tips for Bouncing Back
Here are other ways you can be more resilient in difficult times.
• Practice mindfulness or meditation for 10 minutes each day.
• Increase your exercise by walking outside for 20 minutes daily. This will increase oxygen flow to your brain and reduce stress.
• Monitor your thoughts without judging or allowing them to distract you from the task.
• Over-aggressive goals could be counterproductive. Start small and then increase in scope and complexity.
• Identify what’s causing you pain, and find ways to release it. Let go of any expectations of perfectionism. They will only lead to frustration and negative feelings about yourself and make it hard to get things done on time.
• Recognize when you’re feeling negative emotions, and don’t let them take over your life completely. Remind yourself that everyone feels like this sometimes. But the feelings pass with time if you give yourself the space for reflection and the support you need.
• Spend time with friends who make you laugh!
Recover Quickly from Setbacks
There will be setbacks for your company, staff, family and you. Develop a strategy for bouncing back through difficult times. Here are four techniques:
1. Find meaning in the setback by asking yourself what was accomplished or learned. What did you do well?
2. Create an action plan to prevent similar setbacks from happening again. You might also want to change your work to be more prepared the next time a similar problem occurs.
3. Get involved now with your support system that includes family, friends and church groups.
4. Take a step back. Breathe and relax. Many of the problems are not that significant. Remember the saying “you’re making a mountain out of a molehill.”
Business people must be able to deal with whatever life throws at them—demanding bosses, tough negotiations or intense workloads—while maintaining high productivity levels. Remember to focus on what’s essential: your family, friends and values. When they read your eulogy, no one will mention your bank account, the square footage of your house or the revenue from your business. Mahatma Gandhi believed that if you couldn’t change the circumstances, you could change your attitude. He persevered through many adversities by being resilient. You can too.
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].
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.
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.
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.
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.
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.
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.
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.
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.
Understanding our personalities and the personalities of those around us can be incredibly beneficial in our personal and professional lives. It can help us communicate more effectively, improve our relationships, and even find the best careers for us. The first step in this process is discovering our personality type, and one of the best ways to do this is by taking the free personality test at https://www.humanmetrics.com/personality. The humanmetrics personality test is based on the Myers-Briggs Type Indicator (MBTI), a widely-used personality assessment tool that categorizes people into 16 different personality types. The test will give you a four-letter personality type that describes your strengths, weaknesses, and preferences by answering a series of questions about how you perceive and interact with the world around you.
It's important to remember that personality types are not right or wrong; they simply are. Each personality type has its strengths and weaknesses, and understanding these can help us work on our weaknesses and leverage our strengths. Personality types can also help us understand why we may clash with certain people or why we may click with others. College-age students can use the information they gain from discovering their personality type to explore careers that may interest them. For example, if you have a personality type that values order and structure, you may be well-suited for a career in accounting or engineering. On the other hand, if you have a personality type that values creativity and innovation, you may be better suited for a career in the arts or marketing.
In conclusion, discovering your personality type can be of great value to better understand yourself and others. The humanmetrics personality test is a great way to get started, and the best part is that it's completely free. So why not take the test and see what you can learn about yourself? Remember, personality types are not right or wrong; they simply are. They can help us communicate more effectively, improve our relationships, and even find the best careers for us.
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.
"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.
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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.
How can we make “Better Mistakes Tomorrow? Using a simple 5-step approach, our mistakes become fantastic platforms for growth. Yes they may be painful, but in the long run there is wisdom, knowledge and growth in our mistakes.
Recall the idiom, "Practice Makes Perfect?" In society, we can see our sports heroes, political leaders and business leaders blatantly lie. It typically is a habit, refined over the years, and practiced regularly. Avoid it like the plague. #ethics #lying #cpas #controllers #cfos #leaders
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.
It seems hard to believe that parents could forget their child at the airport. Parents Forget Child at Airport. However, I did a similar thing and left one of our kids at the hockey rink. Remembering important items or memorizing information is easy to do. We are not forgetful, we just haven't been properly trained to record and recall memories. Your skills can be improved significantly with just a little practice and understanding. Watch the following and see how it can be accomplished. Enjoy!
During the 1950s and 1960s, being left handed was seen as a disadvantage. Great efforts were taken by teachers and parents to train students to use their right hand as opposed to their left hand for writing. As a consequence, many kids were forced to focus on hand writing techniques as opposed to learning techniques.
Unfortunately, many managers and coaches still try to force “left handed people to work as if they were right handed.” This metaphor illustrates how people are trained with specific techniques that may not be effective for that individual. Well-meaning coaches and managers may be too narrow in their approach to training or philosophy about business. Unfortunately, their technique or approach may be in conflict with the skills, intelligence or personality type of the individual being trained, managed or coached.
There is a significant danger when the coaching or training approach is “one size fits all.” Let’s consider this example as it applies to the role of a coach and their respective student, customer or employee.
Since coaching focuses on the coachee, let us begin with the left side of the diagram representing the individual that is to receive the coaching service, counsel or advice. There are three main levels of coaching services that an individual can receive:
1. Short term – Short term coaching is usually directed in one of the following areas:
a. The individual has a weakness that needs to be improved.
b. The individual has a serious issue, possibly resulting from disciplinary action, and behavioral change must take place.
2. Intermediate – Intermediate coaching is usually provided when there is a lack of knowledge. This knowledge is necessary for the person to advance to a different level in the organization.
3. Long-term – Long-term coaching is usually directed at individuals that are perpetual learners and are always seeking ways to grow themselves, the organization, and those around them.
In essence, these three levels represent the “needs” of an individual that is to be coached.
The right side of the graph represents the coach’s role. Note that there are two extremely significant principles that apply to a coach. The first is that a coach cannot allow their self-interest to get in the way of helping another individual. The second principle is that the coach should foster independence in the individual as opposed to dependence. Unless an individual is seeking a long-term learning relationship, most coaching assignments should have a specific task with a specific timeframe. The only type of ongoing coaching relationship should be a life-long learning relationship. Beware of the coach that is hired for a short term need who insists on a long-term relationship. The coach may be putting their self-interest ahead of the needs of the individual.
There are many skills a coach should possess including:
Facilitation skills
Counseling skills
Solid experience
Understanding of interpersonal skills and personality profiles
Ability to recognize learning skills of the person that they’re working with
Ability to recognize intelligence types
Desire and evidence of their continued learning.
Now we can reconsider the comparison of left handed and right handed people. A coach that only uses one approach without recognizing the limitations of that approach is not serving his customers well. Failing to understand the needs and styles of the individual being coached typically leads to short and unfulfilled coaching relationships. One of the main reasons coaching assignments do not work out well is that the coachee and the coach are not compatible. A successful coach will be flexible and capable of working in a variety of styles. The greatest of coaches will exhibit the most flexibility in working with a variety of people.
Therefore, it is important for coaches to evaluate personality types and intelligence types to determine how their skills must be altered to bring out the best in the individual.
About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com. Jim’s latest book, “Controller as Business Manager” is available from the AICPA at http://bit.ly/1zGOYmz.
When you feel that you have been treated unfairly:
- Think of Victor Frankl.
When you feel that no one cares:
- Think of Mother Teresa.
When you just want to give up because it is too difficult:
- Think of Winston Churchill.
Most of us have nothing to complain about. I am always amazed and blessed by those that overcome significant obstacles. They provide the inspiration to pick ourselves up and move forward.
Jim Lindell is a National Speaker, Author, and Vistage Chair. He is motivated by helping others improve their lives and businesses.
He is President of Thorsten Consulting Group, Inc.
Order Jim's book - "Controller as Business Manager".
controller as business manager - jim lindell - thorsten consulting group
Controller as Business Manager
