“Financial Adrenaline” is a term we love around here because it reflects our commitment to help you turbocharge your business with practical tips and techniques to improve free cash flow, the lifeblood of business. As a further extension of our Financial Adrenaline program, we’re going to share a new Business Finance Tip every Wednesday specifically for those business executives who don’t have a finance background.

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Read Warren Buffett’s Letter to Berkshire Hathaway Shareholders

In most fields of endeavor, the more we learn, the more we realize how much we have to learn. It’s certainly no different in the world of business finance, so for non-finance executives, it’s never easy to know where to start.

So, why not  jump into the deep end right now by reading Warren Buffett’s Letter to Berkshire Hathaway shareholders for 2010. The publication of Berkshire Hathaway’s annual report is closely watched in the national media, as well as in homes and offices across the country … and for good reason.

Business Finance is about much more than finance

I’ve said before that leaders don’t have the luxury of confining their interests to just a few things. Building a Business is not just about strategy, finance and leadership. It’s about much more … and nothing brought that home more clearly than choosing the categories and tags for this article … because it’s about so much more than business finance … and yet, it’s related directly to business finance.

A great example of the Art of Communication

Warren Buffett’s letter is a great example in the art of communication … about complex financial issues as well as organizational development, culture, recruitment, succession planning, ethics, stewardship … it’s a long list that will satiate any appetite for those of you interested in understanding how all of it fits together. On the subject of communication, you may find the Communication Action Plan a valuable tool to jumpstart your own communication plan, which we just published as part of our Nothing but Leadership series.

What do you think?

In his annual letter, Buffett discusses the many financial challenges within the companies and industries under Berkshire Hathaway’s broad umbrella. What’s so engaging is not just his avuncular style but the rich tapestry of issues and challenges that come together in the assessment of business performance.

Is there a particular issue that you’re curious about? Growth? Liquidity? Metrics? Leverage? Valuation? Productivity? It’s all there … with Buffett’s personal interpretations, his issues with analysts, his challenges to accepted valuation and financial metrics standards.

How does Buffett’s letter serve as a communication device for shareholders? Too much information? Not enough? Where should we start to help you with your business finance education?

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How our Weekly Business Finance series will help you

Most non-finance executives have picked up a few tidbits … from a class, from a financial colleague or friend, a banker, an accountant … and have assimilated a variety of random fragments that are probably more like a messy collage than a well-drawn portrait. Is it enough to get by? Maybe … but if you’ll take ownership of your own financial education, we’ll help you. Dig in, challenge what you read, add your comments or questions and we’ll answer them right here … every time … and we’ll get this conversation started. Are you with me?

Business Finance | Why you should read Warren Buffett’s Letter is a post from: Sword Tips – the Exkalibur blog

Every Thursday, I’m sharing a new Personal Productivity Tip to help you get more done. Each Productivity Tip is a remarkably simple tool or concept that can be quickly implemented to make a real difference in your personal productivity. When you apply many of them together, they’ll make a big difference in improving productivity, achieving accountability and staying focused on the things that matter the most in your life.

You may want to check out some of the posts in this Productivity series, including the the value of checklists; the importance of getting rid of the crappy stuff;  the nightmare of the cluttered mind; and the 4 Do-or-Die Principles to Drive your Personal Productivity System.

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Last week, we dusted off the S.M.A.R.T acronym as a reminder that we need to create Specific, Measurable, Agreed Upon, Realistic and Trackable objectives if we want to create a business culture with accountability as its centerpiece. There is simply no shortcut or substitute for the genuine productivity that results when we SET CLEAR EXPECTATIONS.

Today, we’re going to dust off another “oldie but goodie” but one that many of you may have never encountered. I learned it from some old consulting hands and while it’s often used in a formal chart of “who’s supposed to be doing what,” it’s a valuable accountability tool to evaluate the roles and responsibilities of individuals involved in any kind of team effort or project.

What is an ARCI chart?

In short, it qualifies team members based on their expected level of contribution to a project. Different parties play different roles to get things done, and this tool provides a simple, effective and consistent way to achieve project accountability by evaluating who’s doing what.

By spending just a little time to establish these roles, you will once again, SET CLEAR EXPECTATIONS. It will also help your team members understand their roles and what’s expected of them in a particular project. Read on to learn about each of these four roles.

Accountable

In short, the buck stops here. This team member has ultimate accountability for accomplishing the objective. Since “if you have two bosses, you have none”, this approach ensures that there is a single individual ultimately accountable for the project or task. You’ll note that this is the only category where there can be only one person with that designation.

Users of this construct will often use shorthand … ”you have the A” … to signify that you’re accountable for getting something done. Be sure, too, that Ms. Accountability also has the authority to drive the project to conclusion.

Responsible

This one is a little trickier, since there can be more than one person who is responsible for the project’s success. The “R” category includes all of those who are responsible to get the work done.

In the example on the right, you’ll see one way to define the roles and responsibilities within a team. In an open book environment, you will share this simple chart with everyone on your team. If you spend time to clearly identify the roles and responsibilities of each team member, the ARCI chart becomes the very able partner of the S.M.A.R.T. approach to accountability. Together, they provide a clean, crisp and powerful approach to project management.

BTW, you could also identify departments or other teams in the columns instead of specific individuals.

Consulted

This category represents someone that needs to be consulted as the project goes forward. It could be a thought leader in another department who has no direct involvement but who has a lot of knowledge to contribute to your project. It might also be someone who owns many of the resources you’ll need to implement the plan. It might also be someone who’s too busy to be responsible for a particular project, but whose expertise and experience are essential to a successful outcome.

Informed

This is a person who needs to be kept “in the loop” about the progress of the project but doesn’t have direct involvement in it. This could be a department head, even the CEO, who wants to be kept informed throughout the project’s life. You’ll note that they are informed AFTER the fact, often after milestones are achieved along the timeline. They have no other role.

Examine the assignments for each person

If you’ve prepared a chart similar to the one I’ve shown here, start by taking a vertical look to see if any individuals (or team or other entities) have too many A’s or R’s. If so, they’ve probably been assigned too much to reasonably get done. Contrarily, if you see someone without any A’s or R’s, they’re just a bystander and could probably do more. Look for empty spaces, too, to make sure everyone is carrying their share of the work.

Examine each task or project

Likewise, when you look horizontally across the chart, look for a project with too many R’s … if too many people are responsible, probably no one’s responsible. If there lots of C’s, make sure that all of those people really need to be consulted for the project to move forward. Too many I’s can also mean there’s too much communication after the fact, which also tends to slow things down. You might want to minimize the C’s and I’s to make sure you’ve got a clear road ahead. Also, make sure that authority and accountability are available in the same measure.

Do you use any tools like this to help define roles and responsibilities in a team effort? What has worked for you in the past? Does this help?

Productivity Tip: Still struggling with Accountability? Who’s on first? is a post from: Sword Tips – the Exkalibur blog

Over 7 Wednesdays in January and February, we’ve described 7 remarkably simple components of R.E.S.P.E.C.T. that you can apply to your everyday conduct. The ability to earn R.E.S.P.E.C.T. is a critical Leadership requirement … and we have absolute control over the actions we take to earn it. It’s also the “centerpiece of accountability“, a concept that vexes even the most astute business leaders. Since it’s impossible to be an effective leader without gaining respect, let’s devote some time and energy to learn how to give it … to get it. Are you with me?

So far in our R.E.S.P.E.C.T. series, we’ve discussed the “R”: Right on Time, Every Time, the “E“: Every call returned in 24 hours and “S“:say something nice like Mom taught us. We’ve also covered “P” = Praise more and blame less, and “E” = Easy work with. Last week we discussed “C” = Compassion. This week concludes our R.E.S.P.E.C.T. series.

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Are you sharing or hoarding information?

When I began my business career in the 1970s, the word “transparency” was not in the business lexicon. You knew what you were told … and you were told what someone thought you needed to know … but it was unlikely that you’d hear much about where the company was going or your role in it. Prior to starting my own company in the early 1980′s, I can’t recall a single company-wide meeting at any of the companies where I worked … or any general discussion of the company’s performance or strategy.

Is there any doubt about the Power of Transparency?

What exactly is Transparency, the last letter … “T” = Transparency … in our 7 part R.E.S.P.E.C.T. series?

It doesn’t necessarily mean opening the kimono or letting everyone ramble around backstage. It doesn’t mean sharing every financial tidbit with everyone all the time. In fact, it’s as much an attitude as a policy because it’s rooted in collaboration and an open-book environment. In How to Lead during a recession, I mentioned a Business Week column by Jack Welch, former GE CEO about Keeping Morale Up in a Downturn. In that column, Jack was pretty clear about the value of transparency as well as the tendency by executives to hold the cards much closer to the vest during difficult times.

“Now, we realize we don’t need to tell anyone why transparency makes sense. Most managers know from experience that employees get more pumped when they understand where the company is going, why, and what role they play in getting there. But an awful thing tends to happen to information-transfer in a downturn. Managers choke: It’s as if they can’t bring themselves to deliver hard news without leaving out pieces and fuzzing the lines.”

Why is Transparency Important?

Ironically, transparency is the glue that holds strong companies together. It means that there are no hidden agendas or secret cabals or schemes being concocted behind the curtain. Rather, problems and challenges are shared, input is encouraged, and everyone locks arms in a crisis to stand together. In many ways, it is the ultimate collaborative environment where the bad and the ugly get delivered with the good. Everyone shares the goals and objectives of the organization and has access to timely performance metrics. Everyone is important to the organization’s success.

There are some tricky parts to Transparency

Are there some tricky parts to transparency? Yes there are, including deliberations about employee performance or discussions about the possible sale of the company, for example. At the same time, leaders of transparent organization are committed to their people, and want their people to be able to make plans for their lives by helping them understand as much as possible about what the future may hold.

Yes, there’s some risk in this process, but what’s risk-free these days anyways? While there is the risk of leaks or damaging whispers, they’re offset by the unassailable value of building a collaborative environment of committed teammates fighting for a common cause. You may lose a few skirmishes but you’ll win the war.

What are you doing to create a Transparent Organization? Is it worth it? Would you do it differently?

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R.E.S.P.E.C.T. Is Earned … then received

Respect is something we have to earn. It can’t be bought or stolen. Our parents preached it, Aretha Franklin’s timeless rock ‘n roll anthem preached about it … and Rodney Dangerfield’s Grammy award-winning comedy album, No Respect, explains why we can’t get any. (BTW, this clip is hilarious!)

Remember that the general precepts of our R.E.S.P.E.C.T – How To Get It by Earning It series, are at the core of one of the most tormenting challenges faced by business leaders … how promote and achieve accountability throughout the organization. I have spoken extensively on this subject, including at a national webinar sponsored by Success Factors last year, and it may be one of the most exasperating issues that CEOs face because it’s also central to creating a responsible culture, without which, not much gets done. You’ll find other resources about the Cornerstone of Accountability in the Speaking section under Leadership Challenges and Solutions.

Transparent Leadership | Are you sharing or hoarding? | R.E.S.P.E.C.T is a post from: Sword Tips – the Exkalibur blog

Over 7 Wednesdays in January and February, I’ll describe 7 remarkably simple components of R.E.S.P.E.C.T. that you can apply to your everyday conduct. The ability to earn R.E.S.P.E.C.T. is a critical Leadership requirement … and we have absolute control over the actions we take to earn it. It’s also the “centerpiece of accountability“, a concept that vexes even the most astute business leaders. Since it’s impossible to be an effective leader without gaining respect, let’s devote some time and energy to learn how to give it … to get it. Are you with me?

So far in our R.E.S.P.E.C.T. series, we’ve discussed the “R”: Right on Time, Every Time; the “E“: Every call returned in 24 hours; “S“:say something nice like Mom taught us; and “P” = Praise more and blame less. Last week we talked about how important it is to be “E” = Easy to work with.

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Are you a compassionate leader?

Compassion has a lot of definitions, depending on who you ask. Dictionaries refer to feelings of sympathy and sorrow. Others call it an awareness of someone else’s plight. But virtually all definitions add another dimension …  the desire to alleviate the distress.

For too many executives … I’ll include myself in more prehistoric days … compassion is limited by what works best for the business. But that’s not compassion … it’s expedience. We’ve talked about lessons that Mom taught us … and we’ve always known that acting with compassion, politeness or kindness is easier when there is no “cost” or inconvenience.

Compassion is “all in” or nothing

Compassion is embedded in your character … not an instrument to pull from the tool kit when it’s convenient. All of us know compassion when we see it … and we know when compassion is expedience is disguise. When our boss says he understands our problem, we can tell whether he’s saying it to appear compassionate, to elicit our good wishes or to genuinely share his awareness of our distress and his willingness to reach out as a genuine resource.

Compassion without compromise

You may remember when I talked about an old friend, mentor and boss, Sid Rich, who passed away just over one year ago. I remember one occasion when an employee approached him about a personal financial crisis. It was pretty serious because after their closed door meeting, Sid came into my office and said, “”We need to help Bernie with a financial hardship. Write him a check for $10,000″ … that was a lot more money over 30 years ago … “we’ll figure out the terms later.” But I knew Sid. He hadn’t given a moment’s thought to any “terms” … and there never were any.

There was no hesitation, no deliberation or delay … no calculation to figure out what’s in the best interest of the business. Sid knew what to do and did it immediately. He acted with compassion … cost and inconvenience were not only irrelevant, but I’m certain they never crossed his mind. That’s what genuine compassion looks like … without compromise or calculation.

They’ll hang the banner from the rafters

Genuine compassion has legs. It not only serves a particular situation and individual, but it hangs a banner from the rafters that says “We Care”.

Don’t worry. You can’t fool the people in the stadium by putting up banners that haven’t been earned. In fact, it’s the people in your organization that erect the banners … you’ve got nothing to say about it … and they’ll tear ‘em down and burn ‘em if there’s any compromise, hesitation or calculation afoot.

What a great way to build a great organization!

Imagine the value of such uncompromising compassion in the heart of our leaders. Will people take advantage of it? You can bet on it. Will they get away with it? Many will.

But, everyone will be inclined to be more compassionate themselves They will have a new-found respect for a compassionate organization that recognizes that everyone gets their turn in the barrel … it’s often no one’s fault … and that you, as a business leader, will be uncompromising in pouring your humanity into supporting that individual. There’s probably no more compelling emotion that binds people to an organization than one that, without calculation, reaches out to individuals in need … and won’t compromise just because a few misfits take advantage of it.

Do you work for a compassionate organization? If not, what behavior can you model to promote it?

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R.E.S.P.E.C.T. Is Earned … then received

Respect is something we have to earn. It can’t be bought or stolen. Our parents preached it, Aretha Franklin’s timeless rock ‘n roll anthem preached about it … and Rodney Dangerfield’s Grammy award-winning comedy album, No Respect, explains why we can’t get any. (BTW, this clip is hilarious!)

Remember that the general precepts of our R.E.S.P.E.C.T – How To Get It by Earning It series, are at the core of one of the most tormenting challenges faced by business leaders … how promote and achieve accountability throughout the organization. I have spoken extensively on this subject, including at a national webinar sponsored by Success Factors last year, and it may be one of the most exasperating issues that CEOs face because it’s also central to creating a responsible culture, without which, not much gets done. You’ll find other resources about the Cornerstone of Accountability in the Speaking section under Leadership Challenges and Solutions.

Accountability | How to earn a boatload of R.E.S.P.E.C.T is a post from: Sword Tips – the Exkalibur blog

Over 7 Wednesdays in January and February, I’ll describe 7 remarkably simple components of R.E.S.P.E.C.T. that you can apply to your everyday conduct. The ability to earn R.E.S.P.E.C.T. is a critical Leadership requirement … and we have absolute control over the actions we take to earn it. It’s also the “centerpiece of accountability“, a concept that vexes the most astute business leaders. Since it’s impossible to be an effective leader without gaining respect, let’s devote some time and energy to learn how to give it to get it. Are you with me?

For the last several weeks, we’ve focused on our R.E.S.P.E.C.T. series. We’ve discussed the “R”: Right on Time, Every Time, then “E“: Every call returned in 24 hours and “S“:say something nice like Mom taught us.

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Why is everything Blameworthy … nothing Praiseworthy?

How many times have we seen something go wrong, something undone, something overlooked … and couldn’t refrain from pointing out the error … to an employee, our partner … maybe our spouse more than anyone? I’ll bet that you, like me, have wished a million times that you’d be better at  praising people when they do something right … instead of only finding fault when something goes wrong?

It’s an aberration of human nature that we’re capable of finding fault so easily. In a restaurant, we probably feel like we’re paying for something we’re not getting … the toast not quite toasted enough, the eggs too runny, they’re out of my favorite jelly, “where’s the orange juice I ordered” … so we rationalize our annoyance in those instances … and reinforce similar behavior in other aspects of our life.

I’m really a wizard at pointing out other peoples’ faults!

It sure is easier to spot what went wrong, isn’t it? We’re damn good at spotting the flaws in others, aren’t we? Their behavior, their performance … but if we are truly “being nice” like Mom taught us rather than just “saying nice things”, we’d notice that the same person has probably done a few things right.

So, what’s more powerful? Pointing our their errors and shortcomings every time we see them … or praising their achievements and encouraging more of them? I think we both know the answer … and, in fact, it’s embarrassingly obvious, isn’t it?

Finding the shortcomings makes us pretty smart, huh?

It also makes us feel smarter … “hey, I saw that” … “you can’t get away with that” … “why did you do it that way” … and we can inhale gallons of that superiority air and still thirst for more. It’s strange, isn’t it, that this comes so naturally when it would be so much easier … not to mention more pleasant … to find the praiseworthy moments in our daily interactions.

Start today to find ONE THING praiseworthy

So, let’s resolve together to find just ONE THING EVERY DAY that we can praise about someone around us … spouse, partner, children, colleague, waitress … everyone is fair game. It’s not that hard … so trying just a little bit harder will make it pretty easy. It doesn’t have to be a home run or a major life achievement. A little thing will do fine … and our notice of a small thing is often more appreciated than for something more obvious.

Look for the good and don’t dwell on the shortcomings. Sure, it will take an adjustment in our mindset to praise the good because our Lizard Brain is well-trained to hoist the arrow when an intruder approaches. But we can beat that reptilian mindset. Let’s give it a whirl.

I’m game! Are you? (And don’t forget to sign up to make sure you get all of our updates sent directly to your inbox.)

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R.E.S.P.E.C.T. Is Earned … then received

Respect is something we have to earn. It can’t be bought or stolen. Our parents preached it, Aretha Franklin’s timeless rock ‘n roll anthem preached about it … and Rodney Dangerfield’s Grammy award-winning comedy album, No Respect, explains why we can’t get any. (BTW, this clip is hilarious!)

Remember that the general precepts of our R.E.S.P.E.C.T – How To Get It by Earning It series, are at the core of one of the most tormenting challenges faced by business leaders … how promote and achieve accountability throughout the organization. I have spoken extensively on this subject, including at a national webinar sponsored by Success Factors last year, and it may be one of the most exasperating issues that CEOs face because it’s also central to creating a responsible culture, without which, not much gets done. You’ll find other resources about the Cornerstone of Accountability in the Speaking section under Leadership Challenges and Solutions.

Accountability | One embarrassingly easy way to earn respect is a post from: Sword Tips – the Exkalibur blog

“There comes a moment when you have to stop revving up the car and shove it into gear.” —David Mahoney

One of the most pervasive challenges that arises in my coaching sessions with CEOs and other business executives is the struggle to make the tough decisions. This is a deadly disease that cripples personal productivity. Usually, it’s a decision that’s already been resolved — silently, often deep in the psyche — but we don’t announce it, we don’t execute it and no one really knows the decision has been made at all.

What’s the impact of indecisiveness?

This is a high stress point for executives. These delayed decisions constantly beg for attention, but as we drop these pebbles of indecision in our backpack, it gets heavier with each step. Carrying around the burden of these unexecuted decisions is a malignant tumor that can be fatal to both executive effectiveness, productivity and health. Jack Welch said it best: “you gain nothing by showing uncertainty and indecision”.

These agonizing delays also hijack valuable time from the organization. As indecision becomes increasingly obvious, say when an employee is not really cutting it, people throughout the organization usually see it first. For every day you delay, they wonder why you’re not making an obvious decision.

There’s a giant billboard that says it all about why it’s worth killing procrastination in the decision-making process: The exhilarating and intoxicating relief that every executive experiences when they finally make and publicize a difficult decision. If you’ve been there, you know what I mean.

Five warning signs that tough decisions aren’t being made

I’ve identified five warning signs that procrastination has supplanted decisiveness. These tendencies appear in many forums:

• When it’s time to give unbiased feedback to our employees.
• When we need to replace a long-standing vendor.
• When we have to tell valued customers we can no longer do business with them.

While there’s not a clear bright line between each of these and we’re often swimming in a sea of these varmints, each of them bears a unique characteristic that you may see in your organization.

1. Unwilling

This is one of the most common firewalls I find. Some people are naturally conflict-avoiders, always seeking compromise to make conflicts go away. They will repeatedly offer alternatives to avoid the inevitable, even if in their heart, they know the ultimate answer. If you’ve observed this tendency, you’ve seen that the process is followed to avoid the decision that needs to be made.

2. Uncertain

Some issues are more vexing than others. In this case, there is a long list of pros and cons, with neither answer perfectly satisfactory. Most likely, the decision is simply the lesser of two evils. The solution? Invoke the ready, aim, fire maxim. You may be able to adjust some elements of the decision as you move forward but the results are likely to get worse the longer you delay. You may recall reading Uncertainty is Killing Business which is another illustration of the impact of uncertainty on decision-making.

3. Unclear

“Unclear” is a kissing cousin of “uncertain.” Maybe it’s a distinction without a difference, but uncertainty usually represents a lack of conviction, a vagueness that is often the result of inexperience. Being unclear on a decision often results when there are multiple options, or with a broader impact that’s more difficult to evaluate. In this case, it’s easy to delay a decision to get more information, so make sure you’re not infected by “paralysis by analysis”.

4. Unknown

This warning sign often appears when a decision is expected to ignite a long chain of even more decisions where each outcome is also unknown. Discussion about replacing an employee is a good example. We could imagine a serpentine conversation that goes something like this:

“What happens to the staff if this person is terminated?”

“What if they leave immediately and we have no chance at a reasonable transition?”

“What do we do in the meantime?”

“How long will it take to get a replacement?”

“Who’s got time to handle all the logistics of that process? We’re all so busy.”

“How long will it take for the new person to get up to speed?”

“What if I’m wrong and we can’t getter anybody any better?”

You’ll note that none of this dialogue changes the decision that must be made. It just brings it to a halt because the ultimate outcome is unknown.

5. Uninvolved

This occurs when we don’t take ownership of a problem. Sure, we know the “buck stops here,” but we tell ourselves it isn’t our decision to make — really. “One of my managers needs to make that call.”

Like the “unwilling” candidate, we hope that if we wait long enough, the matter will go away. The managers will make the right decisions, and we can just stand behind them. Our defense is that we’re letting them “do their jobs.” So if we don’t intervene, we don’t have to decide.

Summary

In short? Make the tough calls, and do the right thing. You’ll get more done. You’ll clear the obstacles to your success. You’ll boost your credibility. And you’ll sleep much better.

What’s not to like?

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Lary Kirchenbauer is the president of Exkalibur Advisors, providing practical business strategies for family and other privately owned businesses in the middle market. Exkalibur works closely with senior executives and their businesses in the wine and other industries, and hosts the Exkalibur Leadership Forum for leaders of middle market companies in the North Bay. Please visit Exkalibur.com for a library of valuable resources, articles and insights or connect on Twitter, LinkedIN or the Exkalibur fan page on Facebook.

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The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which I have served as a regular columnist for about three years. The Business Journal covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.

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Article published as Vol. 81 on January 24, 2010: The electronic version of this article, as published by the North Bay Business Journal, may be found here. ******************************

Any related materials or articles referenced in the published column, or otherwise applicable, are referenced in this digital version of the article.

Leadership Lessons | 5 warning signs you’re ignoring tough decisions is a post from: Sword Tips – the Exkalibur blog

Over 7 Wednesdays in January and February, I’ll describe 7 remarkably simple components of R.E.S.P.E.C.T. that you can apply to your everyday conduct. The ability to earn R.E.S.P.E.C.T. is a critical Leadership requirement … and we have absolute control over the actions we take to earn it. It’s also the centerpiece of “accountability “, a concept that vexes the most astute business leaders. Since it’s impossible to be an effective leader without gaining respect, let’s devote some time and energy to learn how to give it to get it. Are you with me?

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Last week, we kicked off our 7 part series, R.E.S.P.E.C.T – How To Get It by Earning It, and talked about one way to earn instant respect starting with the “R” in Respect … be Right on Time, Every Time. As we launch 2011 with renewed energy, we’re all looking for tips to improve our productivity, leadership and accountability. Here is a tip that will increase not only your productivity, but the response you get to all of the things you do.

The 24 Hour Rule … Rules!

I call it The 24 Hour Rule … and in our R.E.S.P.E.C.T series, it’s the “E” … Every Call Returned in 24 Hours. It’s about getting back to people within 24 hours no matter what … some might call it “one business day”. It’s absolutely doable for phone calls and is really longer than it should take as you should make every effort to return most calls within the same business day. Of course, if they call at 5:15 p.m., it’s okay to invoke the 24 hour rule but certainly no longer than that … or maybe after 6:00 p.m.

Emails might be a different story because the flood is increasing and we all need to establish our own guidelines … but for customers and clients, there’s still no excuse not to rigorously apply The 24 Hour Rule. The essence of the rule is … be responsive … to show people that contact with you is valuable, that you appreciate their reaching out, you value their time as much as your own and that if they’ve taken the time to reach out to you, you’ll find the time to reach back to them.

Summit State Bank walks the talk

Tom Duryea, President and CEO of Summit State Bank, believes that customer service is the singular differentiator for the growing banking enterprise he is leading in the North Bay of San Francisco. In fact, this 24 Hour Rule is embedded in the bank’s Service Standards described in The Summit Way which says it this way: “Always return phone calls and e-mails the same day, or at maximum, within 24 hours.”

R.E.S.P.E.C.T is at the core of Accountability

This simple rule, along with the general precepts of our R.E.S.P.E.C.T – How To Get It by Earning It series, are at the core of one of the most tormenting challenges faced by business leaders … how promote and achieve accountability throughout the organization. I have spoken extensively on this subject, including at a national webinar sponsored by Success Factors last year, and it may be one of the most exasperating issues that CEOs face because it’s also central to creating a responsible culture, without which, not much gets done. You’ll find other resources about the Cornerstone of Accountability in the Speaking section under Leadership Challenges and Solutions.

Can I get a hall pass on this one?

Yes, if it applies to spam and other intrusive trespassing on our privacy … but among business colleagues, friends and family? Sorry, there’s still no good excuse for not getting back to people within 24 hours … maybe if there’s blood on the floor … but that’s about it. Besides … you’ll soon the discover the magic of this simple rule when you hear how impressed people are by your responsiveness. It’s not only a testament to your thoughtfulness, but sadly, the lack of responsiveness from everyone else.

So, go ahead, differentiate yourself from the competition. This is another easy one you can hit out of the park. That’s what our strategy should be about in the first place, isn’t it? How much easier can we make it?

Call me back, will ya’?

Another ridiculously easy trick to earning respect | Accountability | The 24 Hour Rule is a post from: Sword Tips – the Exkalibur blog

I’ve recently published several lists of “life lessons”, for lack of a better term, that keep coming my way from a variety of sources. These lists, scratched on the back of an envelope found in a plane crash, or tucked in a wallet for 50 years, are treasures because they’re personal … and each person believed he or she had captured the unique nature of their humanity.

So, now come the Guideposts of business philosophy taken from the book, Marriott — The J. Willard Marriott Story by Robert O’Brien. It’s longer than most … not a note card but still a single sheet of paper … maybe Willard did more than most? Some may seem old-fashioned, others a little harsh for the more indulgent company cultures of the 21st century … but most of them are rooted in sound business practices. Work your way past some of the pedestrian entries to uncover a few nuggets and valid reminders that you can add to your own list.

1. Keep physically fit, mentally and spiritually strong.
2. Guard your habits – bad ones will destroy you.
3. Pray about every problem.
4. Study and follow professional management principles. Apply them logically and practically to your organization.
5. People are No. 1 – their development, loyalty, interest, team spirit. Develop managers in every area. This is your prime responsibility.
6. Decisions: Men grow making decisions and assuming responsibility for them.
   • Make crystal clear what decision each manager is responsible for and what decisions you reserve for yourself.
   • Have all the facts and counsel necessary – then decide and stick to it.
7. Criticism: Don’t criticize people but make a fair appraisal of their qualifications with their supervisor only (or someone assigned to do this). Remember, anything you say about someone may (and usually does) get back to them. There are few secrets.
8. See the good in people and try to develop those qualities.
9. Inefficiency: If it cannot be overcome and an employee is obviously incapable of the job, find a job he can do or terminate now. Don’t wait.
10. Manage your time.
    • Short conversations – to the point.
    • Make every minute on the job count.
    • Work fewer hours – some of us waste half our time.
11. Delegate and hold accountable for results.
12. Details:
    • Let your staff take care of them.
    • Save your energy for planning, thinking, working with department heads, promoting new ideas.
    • Don’t do anything someone else can do for you.
13. Ideas and competition:
    • Ideas keep the business alive.
    • Know what your competitors are doing and planning.
    • Encourage all management to think about better ways to give suggestions on anything that will improve business.
    • Spend time and money on research and development.
14. Don’t try to do an employee’s job for him – counsel and suggest.
15. Think objectively and keep a sense of humor. Make the business fun for you and others.

What’s on your life list? What lessons would be in your top 5?

Can you put a lifetime on a 3×5 card? is a post from: Sword Tips – the Exkalibur blog

Derek Sivers strongly disagrees and shares what he’s learned from psychologists going back to the 1920′s. His TED speech is provocative and compelling and suggests that the more we tell people our goals, the less we accomplish … because afterward, we tend to behave as though we’ve already accomplished them. By the way, Derek Sivers is a rock star to the musicians he serves, having launched CD Baby and sold it 10 years later when its revenue exceeded $100 million. He continues to serve the musical community with MuckWork.

The Zen of Goal Setting: Don’t tell anyone is a post from: Sword Tips – the Exkalibur blog

“We are what we repeatedly do, excellence then is not an act, but a habit..” — Aristotle

“Who’s walking on my field?”

You’re lugging 40 pounds on your back in 100 degree temperature. Your head’s tucked inside a small capsule like a two-pound sausage in a one-pound casing and sweat’s pouring down your brow. There’s no chance the sun will disappear … it’s only 10 a.m. … and while there’s water everywhere, your reach for the next bottle seems to exceed your grasp. Oh, yeah, and the boss expects you to be running – not walking – on his field.

That’s the view from inside the helmet of a member of the Alabama Crimson Tide football team. Intrigued about the great success of the Alabama football tradition, and last year’s national champions, I decided to watch a recent ABC Sports special: “Training Days: Rolling with the Alabama Crimson Tide.”

Head coach Nick Saban is a dominant force on a team with a legendary national reputation, but as I was watching the Alabama football program unfold, I couldn’t help but see, in pristine clarity, the hallmarks of a successful business. It’s a time-honored tradition to relate sports success to business achievement, so allow me to enter the stadium to offer a simple takeaway that neatly summarizes the 5 cornerstones of a winning tradition:

1st down. A great leader. We expect great leaders to understand their industry, to be able to establish a strategy – diagram all the plays with xxx’s and ooo’s. But most importantly, they need to be great developers of talent. They need to be sure the right people are on the bus and that everyone is in the right seat by recruiting and retaining the most talented people they can find.

Saban delivers his maxims … “Mental mistakes are lack of focus and concentration” … or “Who’s making the choice to only give 50 percent out here?” like a jackhammer addressing a concrete slab. He is a powerful motivator who demands maximum effort and eternal dedication. He believes that every day you either get better or you get worse … and if you’re not getting better, you don’t belong on his team. It’s not about talent, it’s about hard work, discipline, focus and commitment to a winning tradition.

2nd down. Give them the greatest resources and most powerful tools you can afford. Alabama has a separate dormitory for its football players, with nutritionists, chefs, tutors and a special dining hall. They have a workout facility the size of a football field with ice baths and saunas and all of the accoutrements you’d expect in an exclusive private club. They have state-of-the-art technology and a legendary stadium.

3rd down. If you have an inspirational leader and great resources, you have a stage to which you can attract great talent. It may be raw and unfinished, it may lack experience and seasoning, but if you identify the talent and surround it with great leadership, training, facilities and resources, you will demonstrate to your team that they are your greatest assets … and you will get great results.

4th down. When you have a great leader delivering great resources to develop great talent, you’re absolutely capable of delivering the crown jewels – great products! Great products and services gain headlines and allow you to cross the goal line to achieve that most important fifth ingredient …

Touchdown. Raving fans. If you saw the line of more than 20,000 fans surrounding the Alabama football facility on Fan Day, you’d discover a loyal fan base that every business would envy. It was still 100 degrees, and fans had been lining up since 7:30 the night before, a record setting time that starts earlier every year as lifelong fans compete to be first in line. These folks were longing for autographs and eager to show their pride in and support for the Alabama football program. It’s not a lot unlike the swarm of customers found in Apple retail stores every day, often with more customers in the store than in the rest of the entire mall.

It’s a simple game, really. Engage a great leader. Equip your team with the best resources. Hire exceptional talent. Deliver great products to delight your fans And win a devoted following that ensures a sustainable and successful business model. Don’t underestimate your ability to do this. Singularly attack each one of these. Make the tough decisions and put in place the necessary steps to improve on each of these every day, and you’ll be shouting your own “Roll Tide” slogan every time you step on the field.

KBO.

•••

Lary Kirchenbauer is the president of Exkalibur Advisors, Inc., providing practical business strategies for family and other privately owned businesses in the middle market. Exkalibur works closely with senior executives and their businesses at the intersection of leadership and business strategy and uses the Business Ferret™ framework to help companies use strategic finance to drive improved business performance. Lary also hosts the Exkalibur Leadership Forum for leaders of middle market companies in the North Bay. Please visit www.Exkalibur.com for a library of valuable resources, articles and insights or join the Exkalibur fan page on Facebook.

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The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which I have served as a regular columnist for more than two years. The Business Journal covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.

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Article published – September 13, 2010: The electronic version of this article, as published by the North Bay Business Journal, is identical to this post and may be found here. ******************************

Any related materials or articles referenced in the published column, or otherwise applicable, are referenced in this digital version of the article.

Vol. 73: Five Lessons for Success from the Crimson Tide is a post from: Sword Tips – the Exkalibur blog

Just being there … letting people know you really meant it when you asked for something to be done … or that it remains important even though it may have been temporarily overlooked … is remarkably powerful. A system of personal accountability that doesn’t follow up on requests to others leaves a lot undone.

Don’t overlook The Power of One.

90% of Leadership is just showing up! is a post from: Sword Tips – the Exkalibur blog

Urban Meyer is returning as the football coach at the University of Florida, much to the delight of Florida fans everywhere. He has a remarkable track record wherever he’s been and with him, Florida won two national championships in 2006 and 2008. His winning record of .842 is the highest among active coaches with at least 5 years experience (at a Football Bowl subdivision).

So what, you say? Well, Urban Meyer is the poster child for the out of balance work life that earned him an ambulance trip to the hospital last December.

The good news?

Today, Meyer is the poster child for the “After” picture, showing us that people CAN change. Even when you relentlessly drive yourself toward perfection, and don’t slow down until you hit the oil slick bordering a steep cliff, change is possible. You can recalibrate your life, grab the people you love and give them the same energy and commitment you apply to your work life.

Someone once observed that on their death bed, no one ever says “I wish I had worked a little harder”. If you play a little harder, and hold closely the ones you love, you’ve got a good shot to postpone that inevitable day and actually earn more time to devote to everything … and most importantly, everybody … you love!

Leadership = Balance & Harmony is a post from: Sword Tips – the Exkalibur blog

In my earlier post, Powerful After Action Reviews, you can learn more about this concept, built and nurtured by the US Army. For Pixar, Davenport reminds us how movie makers use “dailies” to review their work in progress, showing movies to other filmmakers every few month to solicit critical insights that often make the movies better. Nothing we couldn’t accomplish with a Daily Huddle, right?

Ed Catmull, President of Pixar, believes these “post-mortems”, which he describes as “like taking cod liver oil”, are a critical ingredient of Pixar’s success. One of their techniques during these reviews is to ask each member of the film team to come up with five things they’d do again … and five things they wouldn’t do again. What a great way to denude potential dissension on the team so that everyone thinks about alternative ideas and shares criticism openly.

Pixar uses a lot of techniques to build a vital creative process but their After Action Reviews are critical part of it and offer great lessons for every organization seeking to improve their execution.

After Action Reviews = Successful Execution is a post from: Sword Tips – the Exkalibur blog

HBR recently published some research by Biologist Christoph Randler, who surveyed 367 university students about “what time of day they were most energetic and how willing and able they were to take action to change a situation to their advantage.” More of the morning people agreed with statements like “I spend time identifying long-range goals for myself”.

Which are you? Do you think it effects your performance, say compared to some of your colleagues? Can you change it? Do you want to?

Night Owl or Early Bird? is a post from: Sword Tips – the Exkalibur blog

It’s not the money. It’s not the ability to gloss over errors and omissions in your customer service process … and the Ritz Carlton experience confirms that it’s rarely abused. It’s a great idea because it will not only “WOW” your customers … but most importantly … will demonstrate to your team that they are always on the front line of the customer experience and need to actively seize the power to solve problems for customers … right now!

What have you done to astonish your customers and build an impregnable customer relationship?

Empower to the People! is a post from: Sword Tips – the Exkalibur blog

Have you experienced situations that seemed like “people problems” … maybe you took it personally? … only to learn that a modest tweak in the situation resolved most of the problem?

It’s not the person is a post from: Sword Tips – the Exkalibur blog

Researchers have found that when test subjects are even subliminally exposed to the name of a person they believe is “controlling”, they unconsciously do the OPPOSITE of hard work. It seems that people value their freedom “so much so that even an unconscious memory of a controlling person stimulates a behavioral reaction.”

Combine this with The Productivity Paradox and the work done at Sony Pictures to focus more on employee energy management rather than time management, and a theme begins to emerge about the critical importance of how we treat individuals in the workplace and how a leader’s behavior effects performance in so many ways. You should also consider the comments made by Stephen I. Sadove, CEO of Saks, Inc. and his emphasis on the overriding importance of a relationship culture to drive business performance.

What new or innovative ways have you found to deal with people and unleash the power and energy in your organization?

Any control freaks out there? is a post from: Sword Tips – the Exkalibur blog

This Wall Street Journal article summarizes some of those ideas … one from Success Factors, (a company for which I have served as the guest speaker in several national webinars) that banned internal email for an entire week.

What are you doing to get control of this email hydra?

Email Overload. Really? is a post from: Sword Tips – the Exkalibur blog

Lars Dalgaard, President of Success Factors, a company with whom I have an affiliate relationship, spoke recently about his own history as a “jerk” and how he came to grips with an improved consciousness about the problems it creates in the workplace.

Life’s too short – and the business world is tough enough as it is – so let’s all chip in to ship out all of the “jerks” – “a**holes” using a properly vetted academic term – and create a more enjoyable workplace.

No Jerks Allowed! is a post from: Sword Tips – the Exkalibur blog

A recent interview with Fuse founder, Bill Carter, reminds me of two critical variables that are easily lost in our haste to always move to the next issue. First, above all, having the best people is the only antidote to business mediocrity. I’ve said it time and again, and virtually everyone knows this deep down (but very few put it into practice) …  that the organization that excels identifies the best people, makes certain they are properly rewarded, and never stops looking for top talent. In some ways, this is analogous to the Jack Welch process of weeding out the bottom 10% of under-performing employees every year.

Carter also emphasizes the importance of being with the people in your organization rather than being holed up in your office. He recounts how so many of us tend to burrow into our offices when we’re not traveling, focusing on what we need to get done. Instead, we should be taking that opportunity to talk with our people and learn about how well we’re doing communicating our goals and objectives. This is in the same family as my favorite MBWA mantra — Management by Walking Around — but it’s vitally important to keep your finger on the pulse of your business.

People are still – and will always be #1. is a post from: Sword Tips – the Exkalibur blog