Category: Business Strategies and Planning

Avoiding a Liquidity Crisis from Becoming a Solvency Problem

Any size and type of business can have a liquidity crisis. Liquidity can be defined as the ability of a business to pay their current financial obligations, which requires converting assets, such as, accounts receivable, inventory or services provided into cash as quickly as possible.  Cash is the most liquid of all assets and is…
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Why Management Wants the Turnaround Person Gone as Quickly as Possible

In the course of my career I have done more turnarounds than I want to remember.  Over the years, I have learned that most turnarounds follow a similar pattern. First – Business management or owner(s) are questioning why the turnaround person is even needed to begin with.  It appears that no one thinks there is…
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Everyone Hates Annual Performance Reviews – Stop Doing Them

Manager’s hate writing and delivering annual performance reviews.  Employees hate doing self-appraisals and the dreaded annual review meeting.  Why?  For one, this might be the only formal feedback an employee receives all year.  There’s a lot riding on it.  Raises are often tied to the overall rating which adds to the pressure.  Even for employees…
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Turning Two Negative Job Functions into One Positive Job Function

When I talk with business executives and managers two of the most negative job functions they are responsible for are: Annual employee performance reviews How to engage employees in the business’s goals and objectives. The key to solving these two negative job functions is to combine the two activities into a positive job function that…
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Think About How You Are Thinking

Often executives, managers and owners never stop to question how they are thinking about a business issue. Management at all levels have to think about how they are thinking about an issue and stop themselves from having a predetermined result for a project, as management often will miss warning signs related to how a project…
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Get Out of the Eddy and Start Moving Down River

An eddy can be defined as water moving in a circular pattern, counter to the main current of water, sometime causing a whirlpool.  River rafters try to avoid eddies as opposed to getting stuck in an unstable place in a river in order to keep moving down the river. A business eddy is where the…
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Elephant in the Room or Mice Under the Door

As a leader of a business you must determine what are the hard issues that need to be dealt with and what issues are the most pressing to resolve. Once an “Elephant in the Room” issue is verbalized, it’s easy to identify and discuss with staff about possible resolutions.  Examples of these types of issues…
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Chart of U.S. Gross Domestic Product From 1947 to Present

The Bureau of Economic Analysis defines Gross Domestic Product as: Gross domestic product (GDP) is the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net…
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What’s Right, What’s Easy and What’s Wrong

Business leaders should think about making business decisions by considering what is the right decision, what is the easy decision and what is the wrong decision.  All business leaders get to choose between this decision matrix. What Is the Right Decision?  The right decisions are the toughest decisions that are made by a business leader. …
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Chart of Annual Unemployment Rate Since 1948

U.S. Bureau of Labor Statistics define unemployment as: The unemployment rate represents the number of unemployed as a percentage of the labor force. Labor force data are restricted to people 16 years of age and older, who currently reside in 1 of the 50 states or the District of Columbia, who do not reside in…
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