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Undergoing our Own Transformation

Thu, 25 Apr 2024 19:52:20 GMT

Startups are in themselves transformative. Yet, having practiced and advocated the power of transformation for many clients, there's something particularly thrilling about the transformation we're going through as a maturing startup.

"Practice what you preach" is up front and personal with direct and substantial implications for us, our customers, and investors. So, transformation isn't just for big companies or mature companies.

Transformation should be cultural, by design, and continuous. It's a competitive necessity for all companies ... including our own. The truth is: transformation will happen anyway ... managed or not. Outcomes may differ!

We're committed to enabling it.

Reg Maisonneuve

SMBs: Managing by The Numbers or Gut

Fri, 15 Sep 2023 16:07:28 GMT

If you’re running an ethical business in the community, you’re contributing to its economic strength and social integrity. The community gets stronger with your success.

In our society, there’s a huge emphasis on startups and large industry.

Startups test new ideas and challenge business as usual. Large businesses bring lots of jobs, a solid tax base and serve as an economic anchor. Established small and mid-size businesses (SMBs) are the face of a community built on the perseverance, work ethic and independent thinking of their owners and employees.

When we talk about economic development and mobility, to undervalue SMBs is a mistake. They’re a big part of the ecosystem! They too are an engine of economic stability, growth and community transformation. There’s untapped value in this community of entrepreneurs and employees. They’re the focus of this article. There’s a lot riding on their success.

SMBs, however, face unique challenges but often don’t get the support, incentives, and access to services they need to thrive. With that, self-reliance and making the most of available resources and abilities is an essential business skill.

If you're running a business, you're working to build something of lasting value for your customers, employees, community, and owners. Many are dependent on, rooting for and affected by your success.

You want your business to run smoothly. This requires effective planning, execution, and consistent results; yet, many business owners approach their businesses as a day-to-day adventure … a survival test. Chaos is never a good business strategy.

As a business owner, there’s a lot to deal with. It can feed the attitude: “let’s not sweat the details. I’ve got a business to run.” The problem: the critical business metrics left unattended can come back with a really nasty bite.

Managing by the gut is sometimes seen as the mark of a bold business person ... a risk-taker, quick to decisions, relying on instinct and intuition, ready to act on little information. Sounds like gambling. There's a difference between gambling and risk-taking. Business is full of risks. Gamblers focus on the next big score or surviving to the next hand. Entrepreneurs manage risks to favor their business’s long-term success. That’s what sets entrepreneurs apart from gamblers.

If you're running your business by the gut, it says your gambling. At some point, you lose. Would you invest in a business that's managed by the gut? Don't gamble with your business. There’s certainly great potential value in business instinct and intuition, but both are much better when informed by data.

But the best gamblers don't play by the gut. They're very focused on the numbers … the science of it. Instinct comes into play reading character and behavior, but it's backed up by the numbers.

There are telltale signs of a business that's managed by the gut. It shows up as chaos, unpredictability, poor performance and stress – for the owners, employees, and customers and ultimately for the community.

Running a business without knowing your numbers (the right ones) is baking in trouble and greatly increased risk, cost and lost opportunity.

I’m not suggesting that you need to be a data nerd to run a business. That can be a big problem in itself. You have to know what data to look at and when. The data you look at will vary over time, but there are constants. If you buy into the idea that your business should be robust and profitable for the long-term, I’d suggest two key areas you need to focus on: financial and operational performance.

They work together to ensure that you’re looking at the right metrics. By financial performance, I mean more than profit and loss statements. They’re important but historical. You need to know how your business is doing today and make sure it will do even better tomorrow.

The objective of business is to create and provide value. Its success is in the degree to which it does so. That means solid and preferably growing cash flows, low cost of money (capital & debt), high performing assets and low perceived risk.

Knowing the metrics that determine these for your particular business is essential. That’s where operational performance comes in. There is a simple construct to get you focused: TLC. No, not tender loving care, but rather:

Throughput : that you’re providing your services or selling your products efficiently; a.k.a., Productivity.
Learning : that you’re constantly getting better at what you do in ways you, your employees and customers value.
Customer Satisfaction : that you truly understand who your customers are, what their needs are and meet and exceed those needs better than your competitors.

Each has unique metrics specific to your business. Know what they are and work’em to make your business all it can be.

Whether you manage your business by the gut or not, in the end, the numbers come up on the scoreboard, show-up in your bank statements and wind up in your gut. Because, as a business owner you know what cash flow feels like in your gut.

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Reginald Maisonneuve is a US Army veteran and Haitian-American. He is the Founder of Aegis LLC, an Atlanta management consulting & financial technology company whose mission is to advance the economic strength of individuals and communities and the performance of those serving them. His 30-year career spans diverse roles and industries, large and small – helping businesses become more market-led and operationally strong … creating and providing greater value to customers, communities, employees, and shareholders .. they shouldn't and certainly don't have to be at odds.

Crisis-Driven Change

Fri, 15 May 2020 14:29:39 GMT

In these troubling times, businesses (for and nonprofit) are facing existential threats. Preserving capital is a first priority. Cost cutting and financial re-engineering (“restructuring”) are obvious responses, especially when crisis presents itself hard and fast.

Crisis-driven change is inevitable but not all crises come with no warning. Many develop over time until they become critical and can’t be ignored. Crises impose change, just faster. Reality presents itself in no uncertain terms and extreme measures do have to be taken.

Cost-cutting and restructuring are generally “event-driven” responses to a crisis. Their hidden costs and long-term impacts to an organization aren’t always adequately considered.

They often don’t address long-running, deeper problems that undermine an organization’s performance and competitiveness and ultimately its ability to respond to or weather crises.

Many forces work to fragment a business over time as they incrementally respond to internal and external demands over months, years and decades. The level of waste and inefficiency that accumulate and that many organizations operate under and accept as normal can be alarming. They also present substantial opportunities if approached pragmatically and thoughtfully. The mechanisms to do so have to be in place.

Times of crisis, even this time, present an opportunity to rethink your business at a more fundamental level … albeit with a greater sense of urgency and purpose. They are reminders that change happens and business will be transformed with or without leadership and planning. The outcomes may be different.

Change management and its more strategic cousin, business transformation, demand serious commitment and a thoughtful approach. They are means to continuously try to anticipate, adapt and respond to change … to make it part of an organization’s DNA … its muscle memory.

We all recognize that change is constant. Enabling organizations to face the next crisis or opportunity – large or small – more effectively will serve us all.