Six Steps to Better Business Execution

Many businesses have quality products and services, a realistic strategy, well-defined mission and skilled people.  Yet they can’t seem to gain traction, deliver consistent results or grow.

So what’s up?  In most cases, the problem comes down to this: Execution. Some businesses are structured for results, and the people who run them know how to execute.  “If an organization can’t execute, nothing else matters — not the smartest strategy, not the most innovative business model, not even game-changing technology,” says Rick Lepsinger, president of OnPoint Consulting and someone who’s studied business execution for years.

So how can you make your business the “git-er-done” type rather than the “can’t quite git-er-done” variety? Try these six steps:  

1.            Create and Use Action Plans

Action plans are the cornerstone of effective execution. They help you translate broad objectives into specific activities. First clarify your goals. This provides direction for the work and helps determine when a project is complete. A good goal statement is specific, measurable and time bound.

A good action plan helps you manage the workload, review progress and communicate about the work to be done. Its basic components include:  action steps that break down the work to be done into tasks and activities; who’s responsible for each step; a schedule with start and completion dates; and resource requirements.

2.    Expect (and Get) Top Performance

You need everyone at your business working at full potential. When we believe people are capable, we treat them like they are capable, and they come to believe it themselves. Too many businesses fall into a “low expectations” mindset. Get rid of it. If you have low performers, focus on what they do well. Set a modest stretch goal that is easily attainable and provide appropriate coaching and support.

Catch people doing something right. Providing recognition for a job well done has a powerful effect on people’s ability to execute. It reinforces good work and shapes future behavior.

3.    Hold People Accountable

All business owners know accountability is important, yet many don’t hold others accountable. In the heat of the moment it seems easier to just do it yourself or “let it go.”  Create an environment that helps others operate at a higher level of responsibility. For example, you can boost accountability by setting people up for success. Three simple actions will help:

• Clarify expectations. Here’s where you explain “what good looks like.”
• Establish clear due dates. Saying things like “as soon as possible” and “by next week” lay the foundation for misunderstandings.  
• Schedule periodic check-ins. Agree to these upfront and you won’t be viewed as a micromanager.  

4.    Involve the Right People in Decisions

Decision-making is a complex activity and there are things you can do to improve the quality of decisions your business makes. First understand what “delegate” truly means. Avoid the “dump and run” approach to delegation as well as the “over-engineered” approach.  Sometimes it’s okay to be an autocrat. Other times you need to build consensus. Rather than relying on instinct or going with your gut, try a systematic decision-making process. This helps you avoid letting emotion or bias cloud the issues or simply defaulting to choices you’ve made in the past.

5.    Build “Change Readiness”

Execution often requires people and processes to change.  One reason businesses fail to execute is that the people who need to step up and get things done have fallen into a pattern of resisting change.  It’s far easier to talk about things than actually do them, which can require taking risks. You may need to help employees “talk themselves into” wanting to change. Reinforce “change-talk” within your business whenever and wherever you can. Emphasize that without change, growth can’t happen.

6.    Pave the way for Collaboration

Even small businesses can have complex structures with one department relying on others to get things done. That means cooperation and collaboration are keys to success. First make sure everyone understands what you’re saying. When you demonstrate you want cooperation, others will sign up. Establish common ground. When everyone is working toward the same goals they’re more likely to cooperate – and execute.

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10 Tip offs Your Small Business needs a Server

Suddenly the world is awash in low-cost, high-powered, easy-to-install computer servers designed especially for small business.  For example, HP and Dell have both rolled out new small business server offerings putting these powerful devices within reach of many small companies for the first time. The HP ProLiant – small enough to sit on or under a desk and priced at just $329 – is a great starter server aimed at businesses with up to 10 employees. Meanwhile, Dell’s new R415 and R515 PowerEdge servers pack an even greater storage (up to 8 TB), speed and reliability punch, starting at about $1,200.

But how do you know when a server is suitable for your business?   Here are 10 tipoffs:  

1)      You have multiple PCs.  Bottom line:  if you need two or more PCs (or Macs) in your business, it’s already time to consider a server. By storing and organizing documents and data in one place, you’ll be able to access and share files easily.

2)      Running software is vital. I you have important business-related software applications you need to run on more than one computer, a server can help.  No need to waste time and money installing software (and frequent updates) on each individual PC.

3)      Employees can’t share software, computing power and broadband access.  A server lets employees share documents and software, access company databases and share broadband internet.   A server will help you store and organize documents and avoid multiple-version confusion so you always have access to what you need, when you need it.

4)      Customers think your business is owned by Go Daddy.  If you’re still using one of the mass market website hosting companies such as GoDaddy and you want your company website to break out of that cookie-cutter mold, using a server to host your own site will present a more professional image and let you build a better web presence.  Ditto for email.

5)      You do business outside the office:  If you work from home, travel frequently or have mobile or remote workers, a server will allow you and your employees to remotely connect to your company network and access information and resources no matter where you are.

6)      You’re drowning in wires and cables:  If you have two or more computers that share access to peripherals, such as printers and fax machines, it may be time for a server. Not only will a server help you eliminate the mess of excess cords, it also saves the cost of buying them. 

7)      Your business creates and/or stores lots of data: Even today’s lowest priced small business services offer tons of storage space, and the processing speed to help you get at it quickly.

8)      Your PCs are going gray: Whether you want to replace your old PCs or just help them function better, a server can help.  Using a server to shift files from an old PC to a new one is a cinch.  This frees up memory and storage, helping older PCs function better.

9)      You want better backup and stronger security:  If you have valuable files and data that can’t be replaced, a server will help protect them from loss and corruption. You’ll be able to back up information easily and restore files that were accidentally deleted or misplaced. A server also lets you more easily restrict access to sensitive information, such as financial records and personnel information, by storing it away from prying eyes.  

10)   You want to look better to your customers and accountant.  A server lets you easily add powerful new software solutions and platforms — such as customer relationship management (CRM) and accounting programs — which allow you to schedule group meetings, share financial information, and manage clients and vendors.

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New Tax Law Expands Small Business Equipment

The Small Business Jobs Act of 2010 (SBJA), signed into law in September, adds or renews several attractive tax incentives for small business. This is Part II of our series explaining key provisions of the SBJA with tax experts from CBIZ.

Expensing Election Extended and Expanded:  Under prior law, the Section 179 expensing election allowed businesses with active trade or business income to immediately expense (write off)up to $250,000 of tangible personal property placed into service in the 2010 tax year. The maximum amount of the deduction would begin to phase out when total eligible purchases exceeds $800,000. SBJA enhances this deduction in several ways for assets placed in service in tax years beginning in 2010 and 2011:

1. The maximum amount subject to the election is increased from $250,000 ($25,000 in 2011) to $500,000;
2. The phase-out starting point is increased from $800,000 ($200,000 in 2011) to $2,000,000, and;
3. A taxpayer may elect to expense up to $250,000 of qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property.

According to CBIZ, this provision marks the first time that the expensing election has been extended to any type of real property. It does, however, come with some caveats. Generally, if a taxpayer cannot deduct the full amount of the Section 179 deduction due to taxable income limitations, the excess carries forward to future years until there is sufficient taxable income to absorb the remainder of the deduction. With respect to qualified real property, any amount subject to the election that cannot be utilized in the tax year beginning in 2010 will be carried forward to 2011.

Any amount subject to the election that cannot be utilized in the tax year beginning in 2011 (including any carryover from 2010), will be deemed to be placed in service as of the first day of the year and will be subject to normal depreciation rules for the ensuing tax years as if no Section 179 election had been made.

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