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B2B IN CANBERRA AUGUST 2011 17 FEATURE A ccording to Ross, ‘Only fools and horses’ continue to be in business and do the same thing week in week out and expect a different outcome… and he says ‘maybe that’s a good definition of insanity as well’. So why do so many business owners continue to be in business where the business achieves the same outcomes, with the same inputs, each and every year? Why is it that the quality and quantum of profits earned by businesses within specific industries vary so much? Why has the gap widened between the high performers and the rest of the pack? Well, Ross says that “many of the reasons can be found in the following sample of quotes from business owners that operate ‘static’ businesses”: • Didn’t we talk about that last time? • Things are tough…I just hope it turns around soon • I just can’t get good staff • No one wants to work in this industry anymore • It’s becoming even tougher to make a dollar • The Government is making it impossible to attract staff given what they pay • That would be a really difficult conversation, and most likely, too difficult • The kids of today just don’t want to work • We can’t afford to do that • Every time we get momentum something happens • It would be nice if staff just turned up to work and did what was asked of them • The new generation just don’t know what hard work is • I thought about that but never followed up. Have you ever met the perennial victim? The business owner who has an excuse for everything and suffered the worst bad luck of anyone in Canberra? “Many small and medium sized businesses enjoy a period of rapid growth and success during their formative years and eventually out grow their founders. The problem is however, the founders have complete autonomy in key business decisions. The one person you may need to create change and innovation may also be the one person who is resisting change. This is why so many mature small and medium sized businesses have the following growth history outlined in the graph below,” Ross said. “As depicted above, many businesses enjoy the first 5-7 years with regular growth due to the advantages of being somewhat “boutique”. However, once the “boutique” novelty runs its course and no longer provides a competitive advantage, many business owners lose their ability to innovate and change. Ultimately the business growth flat lines and the same set of inputs create the same outcomes, adjusted for inflation,” Ross explained. TIM BENSON, B2B PUBLISHER, TALKS TO ROSS BEAMES, DIRECTOR AT BEAMES AND ASSOCIATES ACCOUNTING & FINANCIAL SERVICES, ABOUT WHAT IT TAKES TO MOVE YOUR BUSINESS TO THE NEXT LEVEL Growth Time Innovators Innovators ONLY FOOLS AND HORSES What should you do? “If you are an owner of a mature business and you have continually delivered sustained growth over the past five years then congratulations – now maybe it s time to share your wisdom and mentor other Canberra business owners. If however you are like many owners of “static” businesses, I recommend you do the following,” Ross said. • Write your strategic and business planning ideas on a single sheet of paper • Identify at least 5 new inputs to your business that will create a different outcome • Engage, formally or informally, a business mentor • Hold a strategic planning day with all staff • Double your training and staff development budget • Increase the remuneration of your star performers • Immediately counsel out your non performers and “change resistant” staff. “Because ‘only fools and horses’ would continue with the same business activities and expect a different outcome,” Ross said. Identify your mentor(s) Ross says that a testament to the Canberra business community is that some of the highest performing businesses across Australia within particular industries reside right here in Canberra. “This is something I know for a fact and we are continually working with clients on a daily basis to achieve such an outcome. Over the past 12 months, having invested as much time in technical development as what you might refer to as professional personal development, the results for both our business, and in particular our clients, has been outstanding,” Ross said. “The ability to learn from other business people from different backgrounds and industries is a powerful tool to ensure you create a different, and better outcome from the “static” business owners.” Interaction with other business people, through a formal or informal mentorship arrangement, has the ability to provide the So what does it take to change the growth curve? “Over the eighteen years that I have been in public practice advising clients, both at the large multi-national publicly listed entity level and the micro level, there have been a number of key attributes that seem to follow successful businesses. These businesses have the ability to drag themselves off the canvas (also known as the flat growth curve) and commence on a path of sustained growth. Through observing and documenting these successful habits over a number of years, they can be narrowed down to the following,” Ross said. • Innovation becomes a core competency • Business owners and their staff are a team–one culture, one message, one set of values • The gap between remuneration levels for star performers and routine performers should be wider than it has ever been. Star performers should be remunerated like “franchise” or “marquee” football players • A “back to the future” plan is developed and communicated to all staff. Staff are fully aware of their personal opportunity within the business over the next 5 years for growth, development and promotion • A strategic business plan is actually developed, communicated and regularly referred to • Regular performance feedback is provided to all staff • The financial budget is communicated to all staff • Heavy Investment in staff training and development • Zero tolerance for process non compliance • Relentless pursuit of excellence • Measure customer satisfaction • Publicly (within the business) report on accountability • Business leaders/owners become high performance trainers of staff • A unique journey and experience is provided to all customers • Business owners set the tone and lead by example. Beames & Associates was established in 2001 and now has a team of over 30 staff based in Deakin specialising in wealth creation strategies and performance improvement for small and medium businesses. Beames & Associates has three accounting directors in Peter Beames, Ross Beames and James Watt and one financial planning director in David Rae. If you’re looking for the ‘X’ factor and want to take your business to the next level call any of the directors on 6282 9500. FEATURE necessary ‘day to day’ reminders to drive excellence and growth in your business. Below Ross has outlined the top 10 specific “day to day” business ideologies adopted by high performing Canberra business people that are proving to be a strong positive influence on the development of their business, their staff and most importantly, themselves: 1. Do the hardest thing first, each and every day you start work 2. Your net worth is your network 3. If you want a different outcome, change the inputs - innovate 4. Staff leave managers, they don’t leave jobs 5. Don’t let bad customers train you 6. Successful people are those people that can handle critical conversations 7. No one owns the truth 8. Let silence do the heaving lifting 9. Relationships don’t go bad overnight – it starts slowly and ends suddenly 10. A team won’t outperform their leader. AUGUST 2011 B2B IN CANBERRA 16
