Terry Hart’s Weblog

The late Bob Briner, author of Roaring Lambs, taught me the most important words you can say are thank you. I knew from years of reading the Bible and associating with thankful people that giving thanks was important, but Bob, a successful businessman, emphasized gratitude in the workplace. As a result, I’ve made it my practice to say thanks as often as I can, to as many as I can, and for whatever reason I can.

Saying thank you is so powerful that only the naive and ignorant would fail to employ it. Here are two reasons why:

First, everyone needs to feel appreciated. When you tell someone you are grateful for what they have done, it lifts them up, it makes them feel good. It inspires them to excel since they know they’ll not go unnoticed.

Second, gratitude is powerful because it produces something good in you. When you give thanks it changes your outlook on life.   Your perspective becomes more positive; you realize there is so much to be thankful for.  You feel better about yourself.

When to give thanks? Always—and for everything. Most will say thank you when something good is done for them; gratitude is easy when things go well. However, one of the best ways to deal with tough situations is to be thankful! It may or may not change the circumstances, but it will change how you face them.  The best path out of trouble is thanksgiving.

As a business owner, I hate complaints, but have learned to appreciate them. Truth is, a dissatisfied customer could not say anything to you, but go tell others how bad your company is. Instead, they are calling to tell you they’re unhappy. This is great news, as a complaint can go from something negative to a chance to improve—hopefully saving a customer too!

Two examples of gratitude come to mind.

Jim and Phyllis Russell were expecting a child, but not the child they got. On delivery day the baby born to them had down-syndrome. During dinner with Jim, he recalled the occasion of their daughter Amy’s birth. He remembered the biblical admonition, “In everything give thanks”; so Jim and his wife thanked God for the precious gift they had just received. Jim is gone now, and the child a mature adult—known all over the world as the “Amy” in the Russell’s private charity, The Amy Foundation.

The second example is simple but impacted me greatly. My wife and I were dining at the Amway Grand in Grand Rapids, Michigan. Each time the waitress served us and I thanked her, she replied, “My pleasure.” You could tell she meant it and not only enjoyed waiting on us, but was grateful for the opportunity.

There is so much to be had by taking the time to say thanks. What would the workplace be like if we took the time to express some gratitude?

If you’re like me – a small business owner with minimal staff – no doubt there are times when you wish you had someone to bounce an idea off of or help you through a difficult decision.  If this is the case, you could benefit by forming an advisory board.

Let me suggest several benefits that derive from meeting regularly with a group of individuals for the purpose of obtaining advice:

1. Unbiased perspective.  Often the small business owner can’t see the forest for the trees; they are too caught up in the day-to-day operations of their company.  Given the proper information, a good advisory board can often see things that the businessperson can’t or doesn’t want to see.
2. Experience pool.  If members are selected wisely, you will have a collective experience that surpasses your own.  Oftentimes, though their industry may be different, they will have ‘been there, done that’ and be able to offer insight how you might handle a problem or tough decision.  I call this benefit wisdom.
3. Encouragement and support.  It is likely your board members will be serving because they value your relationship and desire your success.  Just showing up – not to mention the advice they give, can be a tremendous encouragement.  Depending on your board, it may not be unusual to get a call during the quarter, checking in on you and offering helpful comments or other suggestions.
4. Accountability.  I’m a firm believer in accountability – it is, perhaps, the number one reason I’ve had an advisory board (in one form or another) for over twenty-five years.  Being accountable to someone other than myself affects the decisions I make and the actions I take.  It helps keep me honest, in check and on track.  And for most small business owners, this is critical.

Who should serve?  At one point, needing advice for selecting 1-2 new individuals to serve on my board, I asked one long-standing member (who also had an advisory board) what criteria I should use in selecting candidates.  Here are some of the highlights of that discussion – along with a few things I’ve learned over 20 years:

• If they are business owners, their company should be larger or more profitable than yours
• Avoid lawyers, accountants and bankers – you already have relationships with these people and can obtain the information you need when you need it
• They should represent a cross-section of general industry – not just yours
• They should possess expertise in areas that you are deficient in
• They should be willing to serve for less than what their time is worth
• They should have a sincere interest in seeing your company succeed

Notice I’ve said they should be paid.  For sure, the financial pressures of small business are huge, but when weighed against the wealth of information and experience to be had from an advisory board, the cost is minimal.  What is the right amount?  That is between you and your potential candidates, but the compensation should reflect the value you place on their time, given your means.

When should you meet?  I recommend quarterly, because it is often enough for your members to stay in tune with your business and its unique challenges.  Not only that, in most small companies there are always issues to be addressed and if you only meet once or twice a year, it is difficult to get the help you need when you need it.

What should you look for and where do you find these people?  Although every company is different, there are key areas common to most: finance, marketing/sales, operations, HR, and systems/management.  I suggest that you build a board that, at least collectively, will provide the needed expertise in these and other critical fields.

I found the best way to build a board is through the relationships in the marketplace I already have.  For a new start-up, however, the owner might ask other, more established owners or solicit names through the local chamber of commerce or an industry association.

There’s a proverb that says, “plans fail for lack of counsel, but with many advisers they succeed.”  I believe an advisory board is just what the small businessperson needs to help ensure their corporate success.

I’ll not forget the spring of 2002, which is when the effects of 9/11 finally hit my painting firm, T. L. Hart, Inc.  Like most other companies the world had been a good place to do business in; Michigan had been booming during the 90’s along with the rest of the country.  And we had all built business models on what had become the norm.  That all changed for this company that first and second quarter – here we were with an organization fitted to large amounts of projects, with little to no work.  It was during an advisory board meeting when one of the members said, “just do something, start something; just get moving.”   It didn’t matter what it was, and it didn’t matter if what we did endured.  All that was important was for us to get something going, get something in motion.

His advice proved to be absolutely correct.  In May, closing the company’s doors was a serious consideration.  By the end of December, however, we had realized our second highest sales year ever, and we ended the period in the black.

I had been studying John Maxwell’s The 21 Irrefutable Laws of Leadership during that period.  Maxwell is arguably America’s leading authority on the topic of leadership, with multiple books, DVD’s and audio versions of his various seminar presentations.  In this book Maxwell presents what he believes and others agree are twenty-one laws that apply to everyone at all times without exception.  One of them is the Law of Momentum.

The Law of Momentum (or, the Big Mo) says this:  there has to be forward progress – some movement, and that’s the leader’s responsibility.  In some way, shape, or form things have to get moving.  That’s why small victories are important, because with each success you build momentum that helps move the organization further.

“It’s hard to steer a parked car,” Maxwell point out, “but when you have momentum on your side, the future looks bright, obstacles appear small, and trouble seems temporary.”  That’s why momentum is a leader’s best friend.

It reminds me of what Jim Collins writes about in his bestselling book, Good to Great.  He talks about a flywheel, which at first is hard to get going.  It takes a lot of effort initially.  But then you gain momentum, and eventually it’s as if it has a life of its own – it is literally flying, round and round, at high speeds.  At this stage it requires little exertion to keep it going, and so much can be accomplished.

One vivid example Maxwell provides comes from his video presentation of these twelve laws, and involves a locomotive.  At 55 miles per hour the train can break through a steel-reinforced concrete barrier six feet thick – with hardly anyone noticing.  But when in a stopped position, a single concrete block placed against its drive wheel is enough to keep it from moving forward.  That’s why you have to get and stay moving if you are to reap the benefits of this law.

How to use this law to your advantage?  First of all, you have to understand its value.  If you are like me, you’ve had an experience that demonstrates its power.  Any forward movement – in any area or endeavor of life – is enough to provide the impetus to get you headed in the right direction.  You have to understand just how important momentum is.

Secondly, you’ve got to figure out what are the motivating factors in your life or organization.  For me in my company, it was the threat of fiscal failure.  But maybe it’s the need to get physically fit, or financially stable.  Whatever the circumstances, some sort of forward movement is critical to success.

The next step is to get rid of things that will prevent your gaining momentum.  In some cases it may be apathy on the part of the leader, or people in the organization that are content with the status quo.  To get things going however, the block in the front of the wheel of your corporate or personal locomotive has to go.  You have got to remove the de-motivating factors.

Finally, you do what is right whether you feel like it or not.  This is what Maxwell calls “character leadership.”  You recognize the need to win, but you know you can’t win unless and until you do something.  So regardless of the situation, you act.  You get things going, and you recognize and honor others who do the same.

I am intrigued by the statement, “leaders are momentum-makers; managers solve problems.”  I have often been party to the latter.  Too frequently I have fretted about the circumstances, seeking to analyze the state of things, trying to come up with procedural or systemic solutions.  The real problem, however, is to just get busy doing what you’re supposed to be doing – in my case, selling, getting projects started.  I have found that once things get going, problems have a way of taking care of themselves; it is amazing how many problems go away when you’re moving forward.

I find it amazing what momentum does for you.  From the vantage point of outsiders, if you are busy as a company, it is no matter whether you are making money or not – they think you are.  If they’re a vendor, they are pushing product through your organization at a fast pace, and they are enjoying the company’s momentum.  That’s because, as Maxwell teaches, momentum is the “great exaggerator.”  It makes you look better than you really are – and it makes your people look better than they are.  Conversely, if you are stopped in place with little to nothing going, the lack of momentum makes you and your people look worse than you are.

As an aspiring leader, there may be perhaps nothing more important thing you can do but to put something in motion.  In my company, the things that de-motivate people the most is a lack of work and the feeling of inactivity as a company.  So I have come to learn that the best thing I can do at times is just to get some work in the door – any work, at any price.  I know this isn’t the profitable thing to do, but in a sense it is; it gets the blood of the organization moving.  It makes everyone feel better about themselves and the company.  And you see things begin to improve.  Why?  Because you’re gaining momentum!

There is so much truth in all this – both for small painting contractors like T. L. Hart, Inc., and for large organizations (like General Motors) and governmental entities (State of Michigan). Just get something going.  Get pointed in the right direction, put forth all the effort you can muster, and get the ball rolling.  That’s the ‘Big Mo’ – the Law of Momentum.

Unlike some taking to the streets lately, I like banks.  I like the idea of depositing my paycheck and having the assurance that the money is there when I need it.  I like using my debit card, even if there are sometimes fees attached.

But some things banks do make no sense.

After leasing for 17 years, we had just started building when terrorists attacked the U.S.in September of 2001.  Our company had grown considerably during the 90’s, and our space needs grew as well.  After the trauma of a move in early 2002 we were nicely situated in our new digs; thankfully, we had had considerable work to carry us through the winter. 

By April, however, it was a different story.  Here we were in a brand new building – with a brand new (and fairly large) mortgage – and Michigan’s economy began to tank.  T. L. Hart could hardly buy a job and was over-staffed.  And so became the saga of a long and painful decline in revenues and net worth with the resulting down sizing.

Fast forward to January 2010:  our long and friendly relationship with our local bank turns adversarial when a loan officer whom we have never met shows up at our door and informs us that the bank is calling our loans, all of them – two separate mortgages and two commercial loans.  Without using the words he essentially told my wife and I to file bankruptcy immediately.

By that time we had become quite unshakable.  We had already lost virtually everything we had gained from 1985-2001 but were not giving up; what we had left was our personal integrity.  Bankruptcy was not an option. 

It is amazing how trials can strengthen your resolve.  We were determined to see the thing through regardless of how long it took.  Even though we had never missed a payment on any of the notes, we were being rewarded by the threat of having what assets we had left stripped from us.

We decided to exercise our faith – and hire a good attorney. Both paid off.

Within nine months we witnessed a vast majority of our debt dissipate.  Yes, the bank took our properties, but they not only forgave the deficiencies (mortgage balance minus market value), they also forgave our commercial loans.  By the end of 2010 we had not only enjoyed one of our best profit years ever, but saw what had been liabilities drop directly to the bottom line. 

Miracles do happen – even in the corporate world.  God is good.  I believe in miracles.

          I’ve done a considerable amount of writing in the past, and one thing I learned early on was the practice of submitting my article to others for critique. Humbling at times and often uncomfortable, my writing skills became  better over time as a result.  I believe there is a powerful principle here that is applicable to the entrepreneur, and for the following reasons.

           But first I should clarify what I mean.  The American Heritage Dictionary defines criticism as “the act of making judgments or evaluations,” and critique as “a critical review.” Thus when I speak of the power of constructive criticism I refer to a process whereby an assessment is made by the entrepreneur – or, by others – of any one segment or the whole of an organization, which, if acted upon, results in its betterment.

            I believe this can and should happen on one or more levels.

          The first I would identify is self-criticism, and there are at least three venues for this. 

            The most basic is where the business owner evaluates the enterprise, identifies areas needing attention, and takes corresponding actions to correct or improve them.  As most entrepreneurs are naturally inclined to do this anyway, this is an ongoing and continual process, albeit a mostly unplanned one.

            Closely associated is the input available from company personnel.  A valuable HR tool I’ve used over time is the Same Page© format of employee evaluations.  In this format not only does the company evaluate the employee’s performance, the employee evaluates the company’s performance.  Admittedly, criticism obtained here is not always constructive, but it is valuable from the standpoint of obtaining an employee’s perspective of the operation. Plus, what it says to your team is that their input is important and their ideas welcome. 

            The final venue for self-criticism is a more formal one, that of the SWOT analysis.  Here, the management team or select individuals take a close look at the company and identify strengths, weaknesses, opportunities, and threats.  This process can also be discomfiting  at times, but the information garnered provides an invaluable tool for goal setting and planning.

            The second and most important level of constructive criticism should be sought outside the organization; namely, from the customer or an independent consulant or group. I’ll address the latter first. 

            Perhaps the best counsel I received early in my business career was to form an advisory board for my company – which I did, maintaining it for over 20 years.  Meeting quarterly, this group – comprised of successful business people – reviewed my financial statements, pending major decisions, and future plans, all with an impartial perspective and unafraid to point out deficiencies.  In recent years it was a CEO group I belonged to that gave me what I needed to move forward in the new economy.

            None of the above compares however with the input the customer provides.  While I can’t say I love complaints, I can say the ones I have received and responded to have served to make T. L. Hart a better company.  It isn’t all about complaints, though; it is finding out what the customer likes and dislikes about what you do for them.  This input must be solicited, whether by way of a personal phone call, an online survey, or a client-satisfaction response card.  There are also companies that can provide this kind of service for you. 

            As far as I know, no individual or company  has fully arrived and cannot improve in some way.  Inviting and applying constructive criticism goes along way toward achieving this end.

It wasn’t long ago that my son, John – who happens to be in corporate finance – challenged my business model.  At the time, I wasn’t so sure that I knew what a business model was, let alone what ours was.  Over a period of years, however, I have learned that whatever your business model is, it must of necessity fit the market you are in.  And, if it doesn’t, you have to change it.  I call this the Law of Adaption, and this is the way it works.

 1.  The Law of Adaption says that if the shoe doesn’t fit, then you had better try a different shoe.  The point is, markets vary; there are geographical realities, demographic realities, and economic realities.  If, for example, your business model  is geared toward manufacturing, and manufacturing in your area has dwindled, then you had better look for something else to gear to.

2.  The Law of Adaption says that it is not about what you want, it is about what your customer wants – and this is subject to change.  That is, what is important to the customer today may not be the same as what is important to the customer tomorrow.  And while some things never change, other things are always changing.  A case in point is the current emphasis on environmentally friendly products and services.  What was non-existent in the customer’s mind ten years ago is now becoming predominant. 

3.  If changing customer wants and needs are not enough, changes in your customer’s personnel compel your company to adapt.  The Law of Adaption says you must adjust to the people within the organization you serve.  The face of corporate America has changed dramatically in recent years.  In some cases entire levels of management have been eliminated as a result of downsizing.  In other companies seasoned personnel have been replaced with younger, less-expensive individuals.  In each case it is imperative to keep track of changes, and  quickly acclimate your firm to new people. 

4.   The Law of Adaption says that you must constantly assess your product and service offering, adjusting it where necessary and eliminating things if need be.  I have seen this in my own industry.  Whereas vinyl wall coverings were in great demand in the 80’s and 90’s, multicolor paints became the product of choice in the past decade.  Now, however, it is slowly changing back.  For us, this has meant a change in personnel and the skills required for employment at T. L. Hart, Inc.

5.   Finally, the Law of Adaption says that a company must fit the dimensions of its market.  In this case, if the shoe doesn’t fit, then you had better try the other foot! Put another way, the market you are in determines the size of your company and the room it has to grow.  A company located in a relatively small geographical region cannot look and act like one in a large metropolitan area if it wants to survive long.  In other words a large company in a small market doesn’t work unless it expands it scope.

 I’m sure there is more, but the point is things are always changing, and if you and your business do not adapt to the changes, then chances are you’ll succumb to the company that does