Skip to main content
Toll Free Number: (919) 280-1217

Author: Alan Creedy

FaceBook Rolls Out New Brand Page Design

I have to admit I don’t know why I find myself commenting on Social Media as much as I do.  I guess, like you, I am still trying to figure it out.  I have noticed that I am getting messages telling me about FaceBook changes fairly frequently and I have even had to go in and change my settings a couple of times to avoid some kind of nefarious activity that I truly don’t understand.

I ran across this blog that helped me understand the changes and how they affect me or, better, you.  I only have a personal page, and I am still not sure what I am supposed to do with it.  But for those of you with company pages maybe this will help.

FaceBook Rolls Out New Brand Page Design

What Do Social Media Users and Cavemen Have In Common?

Olson / Zaltman is an internationally recognized market research firm spawned out of Harvard and Penn State Universities.  They developed and patented the groundbreaking research methodology (ZMET) that opens the subconscious metaphors consumers use to make buying decisions. Now widely used by the world’s largest institutions and businesses to develop marketing strategies, they are turning their attention to Social Media. In their most recent newsletter they draw a parallel between how people view social media today and the way mankind has created personal relevance throughout history.  Hopefully, it will create insights for you.   Pay close attention to the skunks.

What Social Media Users and Cavemen Have In Common:

DeepDives_Feb2011

5 Emotional Stages of Selling Your Business

Selling a business is a highly practical exercise wrapped in a thick emotional blanket.  Much like the grief cycle we know so well in DeathCare there are stages that are common and, if you know about them, you can prepare. The more prepared you are the better you will be able to negotiate what you want.

Stage 1:  The Reality Check

Your baby may not be ugly but it isn’t the most attractive either.  Pride of ownership or what you think you need to live on post sale often cause us to be unrealistic in our expectations.   The process of negotiation is a process of compromise to find the common ground between the lowest possible price at which you are willing to sell and the highest possible price someone else is willing to pay.   Read this article to learn how to find that middle ground for yourself before you start.

Stage 2:  Prepare to Negotiate

It is said that a lawyer who represents himself has a fool for a client.  In almost all instances the party on the other side of the table will have done this before and not only will this be your first time but you will be emotionally involved.  The need to master a very steep learning curve and to be objective will put you at significant risk.   All your life you have been in charge.  Now you have to put yourself in someone else’s hands and do what they tell you.   One of my best clients was an incharge type who really struggled at this stage.  He decided that the best way to cope was to take several negotiation seminars outside the industry.  Not only did this help him to deal with his need for control but it made him a formidable partner in the process.  The result: he got more than either of us could imagine because we were working together rather than tugging and pulling

Stage 3: Be prepared to lose your leverage:

There comes a time in even the best conceived plan where you will lose leverage.   One way large acquisition firms accelerate this shift is by purposely seeding rumors that put pressure on you to speed up the sale before everything “comes apart”.    But the official shift comes when you accept the Letter of Intent (LOI) of one company which usually contains a “no shop” clause.  It is then that the true due diligence period starts.  It is a common belief in the Eastern and Middle Eastern world that negotiation only really starts at the closing when the seller is at a disadvantage.  This practice has been accepted now in the Western World and so you might expect a 10% to 20% reduction in price between LOI and Closing.   I have frequently found it effective to provide as much of the due diligence in advance of the LOI so that that offer is based on the information to date and require that any negotiation after LOI be limited to new information that might be uncovered.    I just HATE surprises.

Free tip: no matter how badly you want to sell or how much pressure is on you ALWAYS be prepared at the closing to “quietly close your briefcase and go home” if things don’t go your way.  I coached a real estate friend recently in this when she was selling a house to someone from the Middle East and she was concerned about the closing.  She said that the attempt at negotiation lasted for about an hour and stopped immediately when she and her client got up to leave.   This strategy is bad behavior if there are no real issues and your best defense is to simply walk away.

Stage 4: Be Prepared to Be Outed

It is the rare sale that isn’t discovered before the closing.  At a minimum your unusual behavior and activity will cause people to wonder and suspect.   Beware of the person who pretends to already know in order to get you to confess.  Make sure actual knowledge is limited to as small a circle as possible including your best friend.  But most importantly be prepared with how you will respond and what you will say.   Practice in a mirror because people will look beyond your words for how they should respond.

Stage 5.  Post Partum Depression

As with the real kind this varies by person.  But, if you are like most people, there will be some.  If you decide to stay on after the sale you will have to adjust to being an employee and not having a final say.   Whether you go or stay you will have to adjust to a new self identity.  One of my clients told me it took him 6 years after the sale to actually publicly admit he was retired.

Summary:

For most businesses this is the single biggest and riskiest step they have ever taken.  Because it is an independently owned business it is highly charged and personalized with emotion.   Preparation and focus are keys to success.  It is a process and it takes courage and strength.  I often tell my clients to go to negotiation seminars to fully understand how it works and what to expect.   Having a professional negotiator represent you will pay for itself and then some.   But in the end you will make that final decision.

Managers Vs. Leaders: Which Are You?

As a student of leadership and as a “Benchmark” Assessor for the Center for Creative Leadership, I am well aware of the impact poor leadership has on results.  The problem, in my mind, is the historical emphasis on styles more appropriate to factory settings than businesses that actually interface with the public.

The difference between a manager and a leader is significant and that point is often missed.  Both are responsible for accomplishing goals but one has a greater responsibility of setting goals than the other.  Both are responsible for optimizing performance but one is focused almost entirely on the day to day while the other must balance the day to day with the bigger picture of how to prepare for the future.

The dysfunctionality of the manufacturing style of managing has been widely known for at least two decades.  It gets work done but does not optimize performance.  As Drucker says so eloquently:  It creates “job impoverishment, not job enrichment”.   Building a team of high performers is quickly becoming one of the Critical Keys to Success for all businesses but even more so for DeathCare.

I am a “semi fan” of Seth Godin’s.  As a rule ranters make me uncomfortable.  But I subscribe to his blog because every six weeks or so he coughs up a gem and this link is one.  It will take you two minutes so  Click here to read it for yourself.

Great Advice on Turning Your Business Around

I started my career in business turnarounds in the 1970’s when I worked for  a company whose business it was to buy and “refurbish” distressed businesses and resell them. DeathCare is in need of a turn around. There are different types of turnaround strategies and turnaround strategists.  Many are simply liquidators who cut costs so drastically that the already wounded patient has no choice but to be sold for parts.  But the truth is most businesses can be saved if you are willing to do the work.

I became aware of Jack Stack and his Game of Business in the late ’80’s.  He is a savior not a liquidator.  Saviors save jobs and businesses and investments.   I found early on by luck and prayer that the fastest way to rebuild your business is to engage your employees.  They know where the waste is, they know what customers really want and, if they really trust you, they will tell you where you might be going wrong.   That is not to say that you should abdicate your role as leader and expect staff to run the place.  It’s not that easy.  Rather, it means engaging them to give you feedback and input and weighing that input with other information to decide what is the best thing for the firm at this moment.

Watch this 6 minute video, it will encourage you.   But one last note of warning: if your financial reports aren’t in order or you don’t understand them or they aren’t timely don’t even start.

The Emperor Has No Clothes

What employee turnover reveals about your leadership.

Employee turnover can reveal a lot of things.  Surely turnover is normal but both too much and too little are signs of serious management issues.  The pressures of the last ten years have led many in DeathCare to be frustrated with their employees.  An attitude has sprung up that suggests a feeling like: “If somehow I could just fix my employees everything would be alright.”

High turnover rates and no turnover rates are actually two sides of the same coin.  Both indicate an unwillingness to develop people and poor to nonexistent communication skills.  It is the leader’s role to communicate what is expected of people, to follow through and to teach and to develop.  High turnover indicates they have put too much pressure on people to meet expectations without giving them the tools and resources to do the job.  Tools and resources include emotional support and guidance.  Having no turnover is just as bad.  If you are a firm of any size it is impossible that you haven’t got at least one person who doesn’t belong.  Even Jesus made a bad hire although He did it on purpose to fulfill prophesy.  Most often, when someone tells me (usually with some pride) that no one ever leaves I am willing to take a bet that they have several aimless people who couldn’t find work elsewhere who are just showing up for a paycheck.

Drucker’s Orchestra metaphor is the best illustration:

When a new orchestra leader takes over a poorly performing orchestra he does not have the luxury of letting everyone go and replacing them with top performers.  Instead, he must ferret out the worst and work with the remaining average players to help them want to work at peak levels

Great leaders do 4 things extremely well:

  1. Select the right people
  2. Set clear expectations
  3. Motivate people to do their best
  4. Develop people

Interestingly, there are 8 things employees really want from leaders:

  1. Tell me my role, what to do, and give me the rules
    1. Clear direction
    2. Parameters so they can work within broad outlines.
  2. Discipline my coworker who is out of line
    1. Hold people accountable-be fair but hold fast to what is and is not acceptable
  3. Get me excited
    1. About the company
    2. About what we do
    3. About where I fit
  4. Don’t forget to praise me
  5. Don’t scare me
    1. They don’t really need to know about everything you worry about
    2. Don’t lose your temper
    3. Be fair and consistent
  6. Impress me
    1. be bold
    2. or be creative
    3. or be smart
  7. Give me some autonomy
    1. Give me a special project
    2. Trust me with an opportunity
  8. Set me up to win
    1. Indecisive leaders frustrate everyone and make them feel defeated

Do you find it interesting that financial incentives aren’t on this list?  Turns out that money is only a demotivator.  If you aren’t paid fairly it will demotivate you.  Overpaying you will not motivate you or make you more loyal.

 

Social Media Run Amok: Invasion of Privacy

Wow!!  Big Brother is watching.

I really don’t pay much attention to the issue of privacy.  But I learned something today that really spooked me.  Go to www.spokeo.com and enter your name.  This site aggregates publicly available information and makes it as easy as a couple of clicks to find out a whole lot more about me than should be generally available.  I know this stuff is out there but I really don’t want it that easy to find.

If this spooks you too then go to http://www.spokeo.com/privacy and remove your name.  They make it easy so do it now.

If you know of other sites like this please let the rest of us know by entering a comment.

What Are Your Views on Funeral Home Brokers? Is There a Possible Conflict of Interest?

A few weeks ago, in response to a series of commentaries on business valuation, a reader asked this very good question:

“What are your views on funeral home brokers? I know Johnson Consulting will perform a valuation and then broker the sale, but how is it possible to ensure that the company doing the valuation is being fair when their compensation is dependent on a percentage of the sale? I realize this is common practice for a few companies that do funeral home valuations but it seems like a huge conflict.”

I felt my reader deserved more than a flip answer so I spent some time on research and, from this formed an opinion which i provide at the end of this article.  If you aren’t interested in the background just scroll down to the last paragraph.

Many years ago I shared a podium with the “Father of Business Valuation,” Shannon Pratt who, quite literally wrote the book on the subject.   He taught me that business valuation is both a science and an art.  There are many variables involved in the process of valuing an individual business which makes each valuation more or less “situational.”  In the end, however, the valuation falls back on the “highest and best use of the subject property.”  He also taught me that valuation often finds itself in the classic struggle between buyer and seller: ‘The seller wants more than it is worth and the buyer wants to pay less than it is worth” This is the primary reason, Independence and objectivity stand with professional competence as the three interdependent legs that bring trustworthiness to the professional valuation analyst.

There are three organizations in the United States that certify valuation analysts or appraisers specifically for business valuations (as opposed to property appraisals).  Each of these have recently promulgated codes of professional standards and by clicking on each of the names below you can obtain a copy of their standards:

They all share Mr. Pratt’s emphasis on Independence, Objectivity and Professional Competence.  They also  add a fourth which, in light of the first three seems redundant:  Integrity.

After surveying all the websites of the most prominent valuation companies in our industry and then cross-checking with the membership directories of all three organizations it appears that none of them are certified by these organizations or, for that matter, even members.  I hope I am wrong but I checked several times and couldn’t find any references on their websites and when I entered individual names, company names and the word “funeral” in the specialty section in the membership directories I got nothing.  I even entered the states they are located in to see if individuals in the firms were certified.

Lest we jump to judgment it should be emphasized that this is a “Niche” specialty with equally “niche” buyers so I am not convinced certification in the general practice of business valuation is necessary.  At the same time adherence to a third-party code of ethics as well as active attendance at continuing education seminars would seem to be a good idea.

Now to my opinion and answer to my reader’s question.

Given the emphasis of the certifying organizations on independence and objectivity, it is natural that potential “conflict of interest” is called into question.  I did not delve into the question of how these organizations handle this issue.  Surely their members deal with it.  All of them seem to agree that it should be disclosed.  It seems to me that a more important question is whether or not the buyer of the valuation’s interests are aligned with that of the analysts.  If, in fact, the success fee influences the valuation then it would seem obvious that the SELLER’s and analysts interests are aligned.  Further, since compensation is directly in proportion to the ACTUAL price received an explicit quality control mechanism is built in.  On the other hand a valuation performed for a buyer by the same entity that brokers the business may be in conflict.  If I were the buyer I might want to acquire an independent opinion.   In reality most active buyers are as astute (and sometimes more so) as the valuation analyst.  But what about valuations performed for reasons other than the actual purchase or sale like “buy-sell” and estates?  These are special purpose valuations that sometimes take into consideration other issues like minority interests.  In these cases it is important to preserve objectivity and independence.  Again reference to the three organization’s standards provides guidance.

Finally, however, the potential conflict of interest you are concerned about is also a benefit.  You mention Johnson Consulting Group.  When they complete a valuation it results in an excellent offering package that can then be presented to multiple buyers.  More importantly, most if not all of those concentrating on the funeral and cemetery businesses are Niche experts and maintain a list of potential buyers and sellers that create a convenient fast track to transaction.

As always, especially in transactions of this size, an attitude of “buyer beware” is the first and foremost step to protection.

Christ and Liberty: An Old Message for Modern Times

In 1949 noted journalist Vermont Royster wrote an unusual editorial about St. Paul and his mission.  In an extraordinary editorial phenomenon The Wall Street Journal has been republishing it annually since.  As we celebrate our Savior’s birth and consider the political state of today’s world we do well to take 5 minutes and reread Mr. Royster’s  comments In Hoc Anno Domini. Click on the latin phrase and it will take you to a recently republished version.

Merry Christmas

May God bring blessings to you and your family this coming year

If Christ Had Not Come

“A number of years ago a remarkable Christian Christmas card was published by the title ‘If Christ had not come‘.  It was based on the Savior’s own words, ‘If I had not come,’ in John 15:22.  The card pictured a minister falling asleep in his study on Christmas morning and then dreaming of a world in which Jesus had never come.

In his dream, he saw himself walking through his house, but as he looked, he saw no stockings hung on the chimney, no Christmas tree, no wreaths of holly, and no Christ to comfort and gladden hearts or to save us.  He then walked onto the street outside, but there was no church with its spire pointing toward heaven.  And when he came back and sat down in his library, he realized every book about our Savior had disappeared.

The minister dreamed the doorbell rang and that a messenger asked him to visit a friend’s poor dying mother.  He reached her home, and as his friend sat and wept, he said, ‘I have something here that will comfort you.’  He opened his Bible to look for a familiar promise, but it ended with Malachi.  There was no gospel and no promise of hope and salvation, and all he could do was bow his head and weep with his friend and his mother in bitter despair.

Two days later he stood at her coffin and conducted her funeral service, but there was no message of comfort, no words of a glorious resurrection, and no thought of a mansion awaiting her in heaven.  There was only ‘dust to dust’ and ‘ashes to ashes,’ and one long, eternal farewell. Finally he realized that Christ Had Not Come, and burst into tears, weeping bitterly in his sorrowful dream.

Then suddenly he awoke with a start, and a great shout of joy and praise burst forth from his lips as he heard his choir singing these words in his church nearby:

O come all ye faithful, joyful and triumphant, O come ye, O come ye to Bethlehem!  Come and behold Him, born the King of angels, O come let us adore Him, Christ the Lord!”

From “Streams In the Desert” by L.B Cowman

Merry Christmas

Praise God For our Mighty Savior and Wonderful Counselor

 

 

Do Boomers Find Your Website Annoying?

Funeral Home Websites have come a long way in the last 5 years.  Yet, most sites still remain fairly primitive.  One mistake many websites make (funeral and nonfuneral) is not understanding how their specific target market relates to websites in general.  Because many web developers and programmers are still relatively young and our audience is much older than they  this is particularly problematic for us.

Earlier this year I wrote a book review for a book entitled Boomdotand ended up befriending one of the authors, David Weigelt.  David’s firm, Immersion Active, is a niche marketing firm specializing almost exclusively in internet marketing to Baby Boomers.   They serve an impressive array of companies who want to grow their business in this “new” senior market including our loyal admirers: AARP (read the case study here).

Immersion Active has created a wonderful interactive device that enables us all to learn how an older person actually experiences websites.  It takes about ten to fifteen minutes. Try it out here.

Are You Too Proud to Succeed?

A problem, certainly not unique to DeathCare but just as certainly profoundly prevalent, is an artificial sense of professionalism.  Born out of defining success by what people might think of us, it blocks our ability to succeed by making us unwilling to “Stoop To Greatness”.

I just received this two page post from Patrick Lencioni’s blog: “Point of View”.  You can subscribe by clicking here. Lencioni is one of the foremost authors of management books in the U.S.  You will recognize “Death By Meeting”; “Silos, Politics and Turf Wars” and, my favorite, “The Five Dysfunctions of A Team.” Virtually all his writing deals with human relations and how to help people be more effective.

His comments should give us all pause to reflect:

Stooping to Greatness

Earlier this year I had the opportunity to spend time with the CEO of one of America’s most successful companies, a legendary organization known for its employee and customer satisfaction, as well as its financial performance. I attended their company’s management conference, listened to various presentations about their culture, and the extraordinary, homey and sometimes slightly wacky practices that distinguish them from their competitors.

Overwhelmed by the organization’s simple and powerful behavioral philosophy, I asked the CEO a semi-rhetorical question. “Why in the world don’t your competitors do any of this?” The CEO thought about it for a moment and said, “You know, I honestly believe they think it’s beneath them.”

And right away, I knew he was right.

After all, every one of those competitors, the vast majority of whom are struggling, knows exactly what this company does, how it works, and how much it has driven its financial success. The company’s cultural approach has been chronicled in more than a few books. And yet, none of them tries to emulate it. In fact, based on numerous interactions I’ve had with employees who work for those competitors, I’d have to say that their attitude is often dismissive, even derisive, toward this company and its enthusiastic employees.

And this dynamic exists in other industries, too. A fast-food company I know has remarkable customer loyalty, as well as unbelievable employee satisfaction and retention, especially compared to the majority of their competitors. The leaders and employees of the company attribute most of their success to the behavioral philosophy and attitude that they’ve cultivated within the organization, and the unconventional yet effective activities that result.

One example of that philosophy is the action of the CEO, who shows up at grand openings of new franchises where he stays up all night with employees, playing instruments and handing out food to excited customers. Few CEOs would be happy, or even willing, to do things like this, but this executive relishes the opportunity. These, and other activities that most MBAs would call corny, are precisely what makes that company unique.

This happens in the world of sports, as well. There is a well-known high school football team where I live that is ranked near the top of national polls every year. They play the best teams in the country, teams with bigger and more highly touted players, and beat them regularly. The secret to their success, more than any game strategy or weight-lifting regimen, comes down to the coach’s philosophy about commitment and teamwork and the buy-in he gets from his players. That philosophy manifests itself in a variety of simple actions which speak to how the players treat one another on and off the field. For example, players pair up every week and exchange 3×5 cards with hand-written commitments around training and personal improvement, and then take responsibility for disciplining one another when those commitments aren’t met.

And yet, whenever I explain this and similar practices of the team to other coaches who are curious about their success, I encounter that same sense of dismissiveness. They get a look on their face that seems to say, “listen, I’m not going to do that. It’s silly. Just tell me something technical that I can use.” As a result, few teams actually try to copy them.

Some skeptics might say, “come on, those companies/teams are successful because they’re good at what they do.” And they’d be right. Those organizations are undoubtedly and extremely competent in their given fields, and they have to be in order to succeed. But plenty of other organizations are just as competent and don’t achieve great levels of success, and I honestly believe it’s because they’re unwilling to stoop down and do the simple, emotional, home-spun things that all human beings — employees, customers, players — really crave.

What’s at the heart of this unwillingness? I think it’s pride. Though plenty of people in the world say they want to be successful, not that many are willing to humble themselves and do the simple things that might seem unsophisticated. Essentially, they come to define success by what people think of them, rather than by what they accomplish, which is ironic because they often end up losing the admiration of their employees and customers/fans.

The good news in all of this is that for those organizations that want to succeed more than they want to maintain some artificial sense of professionalism (whatever that means), there is great opportunity for competitive advantage and success. They can create a culture of performance and service and employee engagement, the kind that ensures long term success like no strategy ever could. But only if they’re willing to stoop down and be human, to treat their customers and one another in ways that others might find corny.

Best,

Patrick Lencioni