run the business

1. HOW TO RUN A BUSINESS
SUCCESSFULLY!
Ken Kovalik and Bill Bustard
LifeQualitiy International
International Partnerships

2. INTRODUCTION
• ME
– Personal Introduction and Background
• YOU
– Name
– Type of Business
– Why Are You Here?
– What Would You Like To Learn?
• SEMINAR OVERVIEW

3. SEMINAR OVERVIEW
• Four Steps To Be Successful in Business:
1. Understand Your Purpose and Mission
2. Develop an Operational and Financial Plan
3. Implement and Manage to The Plan
4. Review Results and Accomplishments

4. UNDERSTAND YOUR
PURPOSE
• Why Does Your Business Exist?
• What is the Mission of Your Business?
• What are the Values That Guide Decisions?
• Examples and Other Perspectives

5. STRATEGIC PLANNING AND
BUDGETING
• What is a Strategic Plan?
• How Do You Effectively Develop a Plan?
• What is an Operational Financial Budget?
• Why Do You Need a Financial Budget?
• Examples of Planning

6. IMPLEMENT AND MANAGE
TO THE PLAN
• Organizational Structure
• People/Employee Issues
• Knowing Your Customer
• Marketing
• Competition
• Management
• Leadership

7. REVIEW RESULTS AND
ACCOMPLISHMENTS
• How To Review Your Business?
• Why Should You Take Time to Review
Your Business?
• Examples and Other Perspectives

8. THE PLAN TO SUCCESS!
PURPOSE
PLAN
IMPLEMENT
REVIEW

9. THIS IS NOT THE PLAN TO
SUCCESS!

10. THIS IS JUST LIKE SPORTS:
EUROPEAN FOOTBALL!
PURPOSE
PLAN
IMPLEMENT
REVIEW

11. UNDERSTAND YOUR
PURPOSE
• Why Does Your Business Exist?
• What is the Mission of Your Business?
• What are the Values That Guide Decisions?
• Examples and Other Perspectives

12. WHY DOES YOUR BUSINESS
EXIST?
• To Use Your Skills
• To Help Other People
• To Help Society
• To Provide For Your Family
• To Make Money!

13. “Because capitalistic systems use money to
measure success and value, making money has
become for most people, institutions, and even
society, the ultimate goal of their existence.
They will soon discover that this is NOT enough!”
--Charles Handy, The Hungry Spirit

14. “Making money is not evil or useless.
You prize the money not only for what it can buy
but also for the achievement it reflects.
You no longer try to impress others with your
status or wealth but focus instead on inner values
of self-fulfillment, personal growth, and sensitivity
to other people’s lives.”
--Charles Handy, The Hungry Spirit

15. “Companies do have a purpose: to add value. They
add value by making something that wasn’t there
before or, if it is already there, making it cheaper,
better, or available to more people.
The company must look beyond profit as a
goal…and discover a greater purpose. This
social…purpose will be defined through others--not
just customers, but also employees within the
company and the world outside of it.”
--Charles Handy, The Hungry Spirit

16. In 1998, Kenneth Hay and Peter Moore wrote a book
entitled The Caterpillar Doesn’t Know. The theme of the
book is that “the caterpillar doesn’t know that it must
transform itself to stay alive. Your company may be the
same.”
The authors write about the transformation of American
companies as follows:
1946: Communities of Wealth
1986: Transition
1994: Communities of Meaning

17. “The most successful managers and the most successful
companies are those that help people--both as employees
and as consumers--give meaning to their lives.
For example, people want more from their jobs than a
paycheck. They want a job that encourages them to learn
and grow and gives them more control over what they do.
Thus, many are leaving high-paying, high pressure jobs for
lower-paying jobs that better fulfill their needs.”
--Hey and Moore
The Caterpillar Doesn’t Know

18. WHAT IS THE MISSION OF
YOUR BUSINESS?
“Your mission statement represents your company to
the world and your people. It should drive your
strategy. If you don’t have a mission statement,
create one. If you do have one, make sure it’s the
right one for your organization.”
--Rodin and Hartman
Free, Perfect, and Now

19. BASIC GUIDELINE OF A
MISSION STATEMENT
• It should go beyond what you are selling
• It should define what your company believes in
• It should embody your company’s highest
values
• It should be simple and short
• It should be timeless
• It should be easy for employees to identify with
• You as the leader must live by it!

20. WHAT ARE THE VALUES THAT
GUIDE YOUR DECISIONS?
Shared Values:
“Important concerns and goals that are
shared by most of the people in a group,
that tend to shape group behavior, and that
often persist over time…”
--Kotter and Heskett
Corporate Culture and
Peformance

21. MANAGEMENT
BEHAVIOR
Corporate
Values
FOUR FACTORS THAT SHAPE MANAGEMENT BEHAVIOR
Structure
and
Systems
Leadership
Competitive
Environment

22. “To be a high-trust organization, you
and your company must act in an
ethical and consistent manner and
always demonstrate concern for your
employees. Integrity and concern are
two of the three imperatives for trust.”
--Robert Shaw
Trust in the Balance

23. EXAMPLES OF COMPANIES THAT
UNDERSTAND THEIR PURPOSE
Motorola
Hewlett-Packard
ServiceMaster

24. MOTOROLA
• Strict Adherence to Values an Ethical
Practices
• Leadership will Not accept any Violations
of Code of Ethics
• Employees who Violate This Code are
Dismissed Immediately
• Company Committed to Superior Quality

25. HEWLETT-PACKARD
• The Founders wanted to Create a Company
which Trusted and Respected its Employees
• The Principles of the Company Reflect this
Trust and Concern for People
• The Leaders have very few Status Symbols
• They have Started Several New Programs to
Benefit the Employees

26. SERVICEMASTER
Beginning Principle:
“I found myself wondering what the
Lord would do with a company that was
entirely His, a company in which every
employee, from the top to the bottom, did
his job for the glory of God.”
--Marion Wade
The Lord Is My Counsel

27. SERVICEMASTER
Corporate Objectives
To Honor God in all We Do
To Help People Develop
To Pursue Excellence
To Grow Profitably

28. “Is a person to be the measure of all things, or is there a
God above the person who provides a source, or a
reference point, for the straight line of right or wrong
decisions?”
“The firm has a tremendous responsibility to help people
live within a moral framework where some things are
clearly right and others clearly wrong.”
“At ServiceMaster, we have chosen to conclude that...
every individual has been created in God’s image with
dignity and worth.”
--C. William Pollard
The Soul of the Firm

29. SERVICEMASTER
“Regardless of your starting point, the
principle that can be embraced by all is
the dignity and worth of every person--
every worker.”
--C. William Pollard
The Soul of The Firm

30. THE PLAN TO SUCCESS!
PURPOSE

31. THE PLAN TO SUCCESS!
PURPOSE
PLAN

32. DEVELOP AN OPERATIONAL
AND FINANCIAL PLAN
What is a “Strategic Plan”?
“Something that accurately designates
what the organization will do better than
anyone else in order to be the customer’s
choice.”
--Peter Drucker
Leader of the Future

33. HOW DO YOU DEVELOP A PLAN?
• Answer these questions:
– What products should we offer?
– To which customer groups should we offer
these products?
– Which industry segment should we focus on?
– What geographic areas should we pursue?
• This will help decide where to spend money
• It will show you which opportunities to
pursue

34. FINANCIAL PLANS AND BUDGETS
• A financial plan projects all expected
revenues and expenses over a period of time
– It is important to project these when you
realistically expect them to occur
– It is important to review the actual revenues and
expenses frequently to make sure you stay with
your financial plan
– If there are others involved with your business,
make sure that they are accountable for their
part of the financial plan

35. EXAMPLE OF PLANNING
• ServiceMaster
– Annual Leadership Planning
– Each Employee Develops Their Own Plan
– Financial Plans are Developed at the Level
Closest to the Customer
– Financial Plans are Reviewed Monthly
– Revised Financial Projections are Made
Monthly
– Decisions are Consistent with Projections

36. THE PLAN TO SUCCESS!
PURPOSE
PLAN
IMPLEMENT

37. IMPLEMENT AND MANAGE
THE PLAN
• Organizational Structure
• People/Employee Issues
• Knowing Your Customer
• Marketing
• Competition
• Management
• Leadership
• Examples

38. ORGANIZATIONAL
STRUCTURE
• Clearly Understood Roles and
Responsibilities
• All Levels are Accountable for Results
• Good Communication From Leaders as to
The Plan
• Good Examples by Leaders in Following
The Plan

39. PEOPLE/EMPLOYEE ISSUES
• Set Good Example
• Understand Different Personality Styles
– People Skills Seminar
• Allow Employees to Develop Solutions to
Problems
• Develop Open, Honest Communication
Skills
• Be More of a Coach than a Boss

40. PRACTICE GOOD SUPERVISION
• Top 10 Duties of a Supervisor (Foreman)
– Determine Priorities
– Schedule and Distribute Work
– Coordinate the Efforts of Others
– Observe and Evaluate Performance
– Provide Honest Performance Feedback
– Coach and Train Employees
– Handle Paperwork
– Communicate Policies, Procedures, and Processes
– Address Problems in a Timely Manner
– Look for Ways to Improve the Way Work Gets Done
(From The New Supervisor’s Survival Manual
by William Salmon)

41. KNOW YOUR CUSTOMER
• Stick with Your Strategic Plan as to Who
Your Customer Is
• Under Promise/Over Deliver
• Exceed Customer Expectations
• Create Positive Customer Experiences
• Respond Quickly and Personally to
Customer Complaints
• If your Employees are Loyal, Your
Customers will Be Loyal

42. PRACTICE GOOD MARKETING
“You need to have a marketing strategy based
on customer value. That means
understanding customer needs, not selling
the product; developing customer
relationships, not focusing on transactions;
learning how to keep and grow customers,
not acquire new customers.”
--Philip Kotler
Kotler On Marketing

43. COMPETITION
• In a Free Market Enterprise, Understand
that Customers Have a Choice of Products
• Try to Understand What Others who sell
your Product (Your Competitors) are Doing
• Try to Make Your Product Different
– What Value Can You Add at the Same Price?
• Learn From Your Competitors
• Know Why Customers are Buying From
Others

44. MANAGEMENT AND LEADERSHIP
• Management is Doing Things Right;
Leadership is Doing The Right Things
• Managers Make Sure Things Get Done;
Leaders Make Sure the Right Things Get
Done
• Managers Implement The Plan;
Leaders Develop the Plan

45. HOW MANAGERS MAKE
EFFECTIVE DECISIONS
• Classify the Problem
• Define the Problem
• Define the Objectives the Decision Must Satisfy
• Decide What Is Right
• Take Action
• Get Feedback
--Peter Drucker
The Profession of Management

46. IMPORTANT LEADERSHIP
CHARACTERISTICS FROM THE BIBLE
• Character Proverbs 2:1-11
• Dependence on God Matthew 6:25-34
• Integrity 1 Samuel 12:1-4
• Values Psalm 15:1-5
• Vision 1 Chronicles 28:1-21
• Communication Skills Proverbs 18:2,13
• Interpersonal Relationships Philemon 1-25
• Influence Matthew 20:20-28
• Servant Leadership John 13:1-17

47. SUMMARY OF
IMPLEMENTATION
• Create Good Organizational Structure
• Know Your Employees Well
• Know Your Customer
• Market Your Product Well
• Learn From Your Competition
• Make Effective Management Decisions
• Set a Good Leadership Example

48. THE PLAN TO SUCCESS!
PURPOSE

49. THE PLAN TO SUCCESS!
PURPOSE
PLAN

50. THE PLAN TO SUCCESS!
PURPOSE
PLAN
IMPLEMENT

51. THE PLAN TO SUCCESS!
PURPOSE
PLAN
IMPLEMENT
REVIEW

52. REVIEW RESULTS AND
ACCOMPLISHMENTS
•How To Review Your Business?
•Why Should You Take Time to
Review Your Business?
•Example From ServiceMaster

53. HOW TO REVIEW YOUR BUSINESS
• Determine What You Want to Review
– Goals, Objectives, Mission, Purpose
– Important Implementation Activities
• People, Financial, Customer, Competition Issues
• Make The Review Measurable
– Objective Data, Easy to Chart
• Determine How Often You Will Review
– Daily, Weekly, Monthly, Quarterly
• Maintain Your Review Plan
– Be Consistent

54. WHY REVIEW YOUR BUSINESS?
• It Helps You Know What is Happening in
Your Business Before it is Too Late
• It Will Help You Make Adjustments in Your
Strategy
• It Helps You Stay on Your Plan
• It Lets Your People Know That You are
Interested in Your Business
• It will Help You Better Plan for The Future

55. SERVICMASTER REVIEW
EXAMPLE
• Every Month
– “Rolling Quarter” of Past, Present, and Future
Month Activity
• Reviewed Each Objective of The Business
– To Honor God In All We Do
– To Help People Develop
– To Pursue Excellence
– To Grow Profitably
• Reviewed at Every Level of Company

56. THE PLAN TO SUCCESS!
PURPOSE
PLAN
IMPLEMENT
REVIEW

57. QUESTIONS??