How Your Business Can Thrive in

Any Economy
How  to  prepare  your  business  to  survive  and  prosper,  no  
matter  what  the  economic  outlook.

A Case Study on/White Paper by: Measurable Results LLC

Martin Harshberger

Managing Partner Measurable Results LLC

Author of “Bottom Line Focus”

How to Take Your Business From Surviving to Thriving in 18 Proven Steps

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 Table of Contents

Executive Summary 3

Planning 4

Execution 7

Leadership 10

About the Author 16

About Measurable Results LLC 17

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Helping Businesses Develop Peak Performance for Long

Term Improvement.

Executive Summary
In any economy there is a need for just about any kind of business whether it be service based,
manufacturing, information based whatever. In bad economic times the needs don’t disappear but the
amount of money in circulation decreases resulting in a more competitive environment with more
companies going after fewer dollars.

What does disappear in tough times are the poor or marginal performers. If there are five auto service
centers in a town and demand shrinks, the top ones remain and prosper, the marginal ones fold. A
recession or economic downturn leaves little margin for error and provides poor performers with
nowhere to hide.

What does it take to “recession proof” your business?

This document will address the three key operations that must be mastered for success in any business
regardless of the market or Industry. The Three key elements are Planning, Execution, and
Leadership.

We have covered these in detail in three sections and eighteen chapters of our book, “Bottom Line
Focus” but this will provide an overview sufficient to begin the thought process to recession free
stability in your business.

A bad economy is an opportunity for some companies to grow at the expense of their weaker
competition. You can develop a company that survives an economic downturn and is poised to
flourish as the economy grows. Or you can be one of the victims, it’s really up to you. You have more
control than you may imagine.

The information is presented in short, clear and concise sections. We are known for our bottom line
approach to resolving business issues and this document will follow that format.

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Planning

Planning 101:
The picture below does not represent a strategic plan!

When I talk to a prospect in my coaching business I always ask if they have a strategic
plan. About half the time I hear a response of “yes its in here” while the prospect points
to his or her head.

Good business leaders

create a vision, articulate Don't kid yourself! If your plan isn't in writing, it doesn't
the vision, passionately exist!
own “ the vision, and The National Business Association estimates that 78 percent of
relentlessly drive it to businesses that fail don't have well-developed business plans. Where does your
completion.” company stand?
Step #1 in the planning process:Clarify and document your vision.
Jack Welch
Where do you want to be in five years? What specifically will your business look like? How
many employees will you have? What markets will you serve? What products or services will
you offer? How many locations will you have? Write that down in as much detail as possible. If
you are tempted to blow this off or think this is easy, you've probably never done it. It's not as
simple as it sounds. Make it clear, and communicate it often. Communication of your vision
means commitment to attaining it.

Now ask yourself, what’s been holding you back? Why you aren’t already there? The answers to these questions can be
enlightening. Maybe it's because you're confused or conflicted about what you really want. Or maybe something stands in
your way that you haven't had the awareness or courage to confront.
Your vision gives you a point of reference for evaluating and planning all aspects of your business. You'll make better and
faster decisions when you evaluate every choice by asking, “Does this take me closer to or farther from the attainment of
my vision?”

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 A strong vision is the foundation of any successful business.

If you want your company to achieve maximum success, all business processes, management practices,
and employee incentives should flow from and be in alignment with a clearly defined strategy. You must
create an environment that equips and motivates your internal customers to produce positive moments of
truth for your company's external customers.If you have enough of these positive experiences you will build
a loyal customer base that will actively promote your goods or services.

A well thought out and written plan gives you at least seven significant benefits:

1. It provides a fixed point of reference to guide your decision making, so you won't be pulled off course
by tempting diversions.
2. It serves as a foundation for communicating direction, promoting teamwork, and instilling motivation.
3. It promotes action instead of reaction.
4. It provides a means of measuring your progress.
5. It helps you invest resources wisely.
6. It provides a common framework for aligning people and processes.
7. It focuses your entire organization on common objectives.

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What does all that mean? It means if you take the time to clarify where you want to go, communicate it to all
stakeholders, and measure progress with good data it will result in:

• Increased productivity by assuring everybody is on the same page and they aren’t confused or worse
demotivated, by the “direction of the day”.

• They are measured, evaluated and compensated by fair and clear metrics. Improving, morale and
productivity.

• You make better decisions faster if you have a reference point.

• Cash is focused on your planned direction instead of wasting it chasing down tempting “opportunities”.

• You spend less time “fighting fires” and throwing money at problems.

• Overtime & rework, are reduced; margins are increased and customers are happy.

It’s really a simple three step process.

(A). Document where you want to go: your vision.

(B). Determine where you are now: a S.L.O.T. Analysis

(C). Document SMART goals to get you from A to B.

It helps to have a knowledgeable and objective outsider involved in the planning process. An outsider will
challenge you to think creatively. You'll be better able to see familiar situations in new ways. And it will be
harder for people to get away with excuses and blame shifting.

Frankly, I think it's a dangerous mistake for the CEO or some other senior executive from within the
organization to try to facilitate this assessment exercise. All too often participating staff members try to say
what they think that executive wants to hear. A "herd mentality" develops that stifles honesty and creativity.

But a competent facilitator won't accept pat answers, clichés, and jargon. He or she will encourage innovative
thinking and force participants to drill down to bedrock facts.
Your vision gives you a point of reference for evaluating and planning all aspects of your business. You'll make
better and faster decisions when you evaluate every choice by asking, “Does this take me closer to or farther
from the attainment of my vision?”

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Execution
“The hard business-
world facts of life are
that no rewards at all
are granted for effort;
they are granted only for
results. Results are
never published as effort
per share.
Richard S. Sloma
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ACTION!
This is perhaps the second most scarce skill in business today. The first being
leadership which is covered in the third section of this document and fits
hand in glove with action or execution.
There are a few words in business or in life for that matter, that are key to
success in any challenge. Those words are:
• Results
• Accountability
• Leadership
• Action / execution
• Goals
In doing the research for my book I learned that somewhere between 50% to
80% of businesses, depending on where you read do it, not have a well
thought out and documented business plan.
There is a chart later on in this section that tells us that only 10% of
companies execute their strategy.
So if you take that forward and assume only 50% of businesses have a plan
and only 10% of them, or 5% of all organizations, actually execute their
strategy the result is scary.
That means that up to 95% of businesses are flying by the seat of their pants!
Is it any wonder why businesses suffer during an economic downturn? When
times are good sales and revenue flows easily. If problems exist within a
business they simply hire more people to handhold weak or broken
processes. The plan or direction is whatever the customer or market wants
today. When things slow down they are in trouble. Why?
• They haven’t taken the time to develop a niche and a competitive
advantage in their chosen market.
• They haven’t taken the time to fix quality issues, process issues etc. that
they were compensating for with additional people and overtime. When
tough times hit they reduce staff and find they can’t deliver their products
or services in a cost effective and competitive manner.
• They suffer and blame the economy.
Bad economic times are excellent times to revamp your strategy and your
processes. When the economy improves you are poised to gain market share
as well as profit from your efforts.
How many owners, managers, CEO’s are doing that? If we believe the
research, not many.
They know they have issues that need to be changed but many take no action, or ineffective action.
Why? Is it fear of change? Fear of making a mistake? Fear of confronting people? A lack of confidence in
themselves and/or their staff? Probably it's a mixture of some or all of these.

For most executives, implementation is harder than planning. It takes determination and courage to actually do
what you say you want to do. Implementation requires commitment, accountability, and change. That's where
the majority of companies fail.

When you fail to act on your plans, you undermine motivation, enthusiasm, pride, respect, commitment, and
productivity. Yet 90 percent of American companies do just that, as shown by the chart below.2

Chart from Paul R. Niven, The Balanced Scorecard (New Jersey: John Wiley & Sons, 2006).

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Without clear goals, planning is just an interesting exercise. Get your exercise at the gym. At work, get results.

To get results, set goals. Goals put the teeth in your plan. They provide incentives for execution and benchmarks
for progress.

But how do you set goals? And how do you know what goals to set? You begin by understanding your needs as
they relate to your vision.

If you are unable to play the role of hard-nosed, persistent, and objective interrogator in your organization, get
someone from outside who will conduct this exercise for you. Make sure this person will be honest with you
and will have your best interests at heart. When you're determining the path your organization is going to
follow, you can't afford to make a mistake.

Examine, analyze, and evaluate every goal in detail. Don't just spout off a goal and immediately write it down.
You and every other stakeholder must own every goal. Engage in serious thought, discussion, and maybe even
some healthy differences of opinion to ensure you're in agreement. If everyone doesn’t understand it and own it,
it won’t get done.

Define your goals clearly and precisely. List the benefits of attaining, and the consequences of not attaining,
each one. When you understand and agree on the rewards and consequences associated with your goals, you
will be better able to set priorities and plan investments.

For each goal, list all possible obstacles that might possibly keep you from attaining it. Don't leave any obstacle
out, no matter how insignificant it may seem.

Through discussion and brainstorming, develop specific action steps to accomplish your goals. Make sure you
take into account all of the obstacles you've identified.

Finally, assign responsibility for those actions to the appropriate

Once you have a documented plan, you're well ahead of most other businesses. But the best plan is useless
without execution and leadership.

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Leadership:
"Great leaders are almost always great
simplifiers, who can cut through
argument, debate, and doubt to offer a
solution everybody can understand."
— General Colin Powell
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Bold actions require bold leadership.
Mention scarce commodities and we immediately think of
gold, oil, or some other natural resource. But these days there's
one resource that's even rarer: principled, effective leadership.
Our nation is suffering from a lack of leadership at all levels.
The U.S. Government is getting deeper and deeper in debt
because politicians seem to be more interested in securing
campaign contributions from special interests than in securing
a future for the people. Staying in office takes priority over
standing on principle.
The business world is no better. Executives focus on their
personal bonuses instead of on their organizations' welfare.
Union leaders are more interested in preserving work rules than
in promoting productivity.
As a result, America is rapidly losing its ability to compete.
Take manufacturing, for example. Even industries that our
country needs for national defense – such as steel, aircraft, and
automobiles – are moving off shore. This doesn't need to
happen. A Russian-owned steel mill not far from my home is
doing just fine, and Japanese auto factories are prospering in
this country.
What’s the difference between the successful companies and
the ones that are forced to close or move off shore? It couldn't
be the industry or the labor pool; those characteristics are the
same. No, the answer has to be that the successful companies
have better leadership. Their leaders promote teamwork, invest
in the future, and do other key things that increase productivity
and profits.
On the other hand, failing companies almost invariably suffer
from a lack of effective leadership. Their would-be leaders
don't take strong stands based on clear vision and enduring
core values. They're people pleasers instead of goal achievers.
They need to listen to Herbert B. Swope, the Pulitzer Prize
winning reporter and author, who said, "I cannot give you a
sure-fire formula for success, but I can give you a formula for
failure: Try to please everybody all the time."
The evidence of the leadership crisis is all around us.

The daily news bombards us with stories about major corporations failing, government spending spinning out of
control, and political and corporate leaders marching off to jail.

Interestingly, this leadership vacuum exists only at the higher levels of government and industry. It doesn't exist
in small and mid-size businesses.

I know that's a fact because the owners, CEOs, and senior executives of these businesses tell me so. For over
forty years I've worked as a manager, coach, and consultant with hundreds of executives. Not one has ever said
to me, "This company is not doing as well as it should because of my lack of leadership skills."

Who's to blame for their company's problems? It's they. Over and over again I'm told, "They don't care; they
didn't do it right; they don't get it."

I've never understood why these executives don't just fire "they" and hire somebody else. Come to think of it, I
bet many of them have tried that, but somehow they keeps sneaking back on the payroll.

Take an honest look inside your organization. How many of these issues are present?

• Excessive meetings with no agenda and no results

• Consensus-driven decision making (CYA for all us older folks)
• Lack of personal accountability
• Poor communication between entities
• Reluctance to terminate poor performers
• Misaligned and uncoordinated efforts (silo effect)
• Personality conflicts and power struggles
• Apathetic and unmotivated employees
• Inconsistent results
• Poor time management
• Reactive rather than proactive effort
• Micro-management
• Declining sales and / or market share
• Lack of teamwork
• Duplication of effort
• High employee turnover
• Substandard quality
• Numerous unresolved issues and postponed decisions

You may not want to acknowledge this, but to some degree all of these issues can be attributed to ineffective
leadership.
If “they” aren’t getting it, maybe it’s because it hasn’t been thought through and communicated clearly by
management? We’re back to section one, clarify, document and communicate your strategy.

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All companies have problems. In order to solve your company's problems, you'll need to understand and change
the leadership style that got you into trouble in the first place. Start by looking for areas where you personally
can improve. Until you change, not much else will. Before you can lead others effectively, you must first be
able to lead yourself.

Leaders must be strongly committed to their vision, core values, and goals. But they must be flexible enough to
acknowledge their mistakes and change course when necessary. They must welcome input from others as they
consider all options. But they must be willing to stand firm when they're convinced they're right.

Leadership requires courage. I realize that it's not easy for you to stand up and say to everyone in your
organization, this is our vision, this is where we’re going, and this is how we’re going to get there. But as a
leader, you must overcome the fear of failure and be willing to put your reputation on the line. If you're not
strongly committed to your vision and goals, failure is virtually guaranteed.

Growth in leadership is a lifelong process. As your career progresses, so will your leadership style. Start by
leaning how your own values, beliefs, and attitudes affect your ability, or even your willingness, to relate to
other people. As you better understand yourself, you will be better able to understand and motivate others.

Be decisive the absence of a decision is a de facto decision. That goes for all aspects of business planning and
execution – from acknowledging problems to resolving them.

Tolerating poor personal performance from a staff member is choosing mediocrity. It lowers the bar for the
entire staff.

Failing to take action about substandard quality is a decision about quality. It sends a message about core values
to everyone inside as well as outside the organization.

It's wise to gather the facts before making decisions. But postponing action "until there's a better time” or "until
there's more data” is too often a cover-up for plain old fear to act.

Want to diminish focus and credibility in your organization? Here's a sure-fire way: Develop a plan,
communicate it to your people, and then fail to execute it.

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In each of the chapters of my book, we talk about the importance of clarifying vision, setting goals, developing
written plans, establishing metrics, and handling the many other aspects of successful business management.
We've also discussed the need for action, leadership, communications, and teamwork. But there's at least one
more ingredient needed for success: accountability.

There's an old adage, "People do what you inspect, not what you expect." Or to put it another way, what gets
measured gets done. That's why metrics are so important. But metrics are useless without accountability.

Accountability starts with you.

When we think of accountability, we immediately think of holding other people accountable. That's just human
nature. It's easy to notice other people's shortcomings and rationalize our own.

But accountability in your organization starts and ends with you. You must first hold yourself accountable
before you can hold others accountable.

The U.S. Armed Forces are crystal clear about accountability. Their leadership manuals state, "The unit
commander is responsible for everything the unit does or fails to do." That doesn't leave much wiggle room,
does it?

The same is true of your organization. Whether you're an owner, CEO, or manager, you are ultimately
responsible for your unit's failure or success. Of course, you must rely on others, and sometimes they will let
you down. You cannot control everything they do. But you are still ultimately responsible.

You are ultimately responsible for making sure your organization's vision, priorities, values, plans, and goals are
clearly communicated throughout all levels. It's up to you to assemble the right team, provide effective
leadership, and establish accurate and timely metrics to measure performance compared with standards. And the
buck stops with you when it's necessary to get rid of employees who simply can't or won't perform.

If your organization's performance doesn't meet expectations, who's at fault? If your plan fails, who's to blame?
For the answer to that question, look in the mirror.

As a leader, you must proactively establish self-accountability.

If you don't set up accountability systems for yourself, no one else will. Since you're in charge, you can very
easily avoid regular accountability … at least for a while. But if you wait too long, it may be too late.

Don't make that mistake. Start by asking one or more executives who have responsibility levels similar to yours
– perhaps with different companies – to meet with you regularly for purposes of mutual accountability.

Be open to constructive feedback from others in your organization. Be willing to admit mistakes. Demonstrate
your commitment to accountability by modeling humility and a teachable attitude. Others will follow your
example.

Hire a coach. Coaches do not provide accountability for their clients, per se. That's not their role. But a coach
will challenge you to look at your own attitudes and behaviors more objectively.
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Accountability is not synonymous with control. You cannot be everywhere at every moment. You cannot
anticipate every need and participate in every decision. Even if you could do that, you would only succeed in
stifling the creativity, initiative, and motivation of your people.

Effective workplace accountability is a state of mind. It exists when employees accept the company's goals as
their own, when second best is not an option. Your responsibility as the organization's leader is to create that
type of environment.

You can't instill personal accountability by talking about it. You and your leadership team must set the example
before you can expect a comparable level of commitment from your employees. When others see you and your
management team pursuing excellence with determination and perseverance, they'll be inclined to follow.

As the illustration below shows, workplace accountability results from the effective implementation of all the
items discussed here and more found in the chapters of my book.

!
Vision: Is the strategy clear and
does everyone understand it?

Metrics: Are they linked to

attainment of strategic goals?

Action: Do your actions support

your words? (Or worse, does
inaction cancel them?)

Goals: Are they documented,

clear, and monitored?

Alignment: Are people,

processes, and incentives tied to
vision?

Values: Do your values foster

employee engagement?

Leadership: Are you accountable

for your goals and involved in
monitoring and managing
performance?

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You must accept nothing less than your stated requirements each and every day from all levels of the
organization. If problems arise that hinder goal achievement, all employees must know that it's their
responsibility to report them, brainstorm options, and pick the best course of action to resolve them.

Management must not use accountability as a hammer to threaten the workforce, but rather as a tool to develop
the workforce. People want to know what's expected of them and how they’re doing. They'll welcome
accountability in the workplace if it's uniform and fair. They'll feel more appreciated and valued when they're
held accountable.

Rest assured, employees are also watching to see how you will deal with non-performers. It's important to
reward top performers, but it's just as important to deal with non-achievers. Failure to do so will lower
everyone's performance. As we said in chapter 7, of “Bottom Line Focus” you must "Demand a Return on All of
Your Investments."

Clearly, accountability and effective leadership go hand in hand.

When I talk about these concepts to companies and CEO’s / owners I end with a two step process to identify the
primary cause of your business surviving or thriving.

Step 1 Get a Mirror.

Step 2 Stand in front of it.

It starts and ends with you, the CEO, the owner, the guy in charge.

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 About the Author
ABOUT THE AUTHOR

Martin Harshberger, founder and president of Bottom Line Coach and

Measurable Results LLC, is a management consultant and business
coach. During a successful career spanning over thirty years, he has
held executive positions with and consulted to a broad range of
businesses, from start-ups to Fortune 500 companies.

From 1979 to 1989, Martin held senior executive positions with

international responsibilities in operations and manufacturing at
Control Data Corporation, which at the time was one of the world's
leading manufacturers of mainframe computers.

In 1989, Mr. Harshberger founded Logistics Management Inc. (LMI), a

pioneer in the field of value-added logistics management. Serving as its
CEO, he led this Memphis-based company from startup to over $40
million in sales within five years. In 1977, INC Magazine named LMI
one of America's 500 fastest growing companies.

After selling LMI in 1999, Martin served as CEO of a mid-size

manufacturing company in the HVAC industry for 5 years. In 1995 he
founded Measurable Results.

Mr. Harshberger is passionate about helping companies grow and

prosper in today's rapidly changing global economy. His results-
oriented, no-fads, no-frills approach is somewhat unique in today’s
environment.

Martin is a member of the Turnaround Management Association of

America and the Institute of Management Consultants USA. He lives in
Northeast Mississippi with his wife, Marla.

Martin is the author of “Bottom Line

Focus” a leadership manual for business
and life.

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 ABOUT THE COMPANY

Measurable Results LLC provides business consulting and coaching

services to the owners, CEOs, and senior executives of small and mid-sized
companies throughout the United States. Utilizing sound management
strategies and techniques, without fads and frills, the firm partners with its
clients to help them dramatically increase their profitability and long-term
success.

Measurable Results has a proven track record of helping clients

successfully navigate through strategic, structural, and cultural changes due
to market shifts, down-sizing, mergers, competitive pressures, and other
factors. It has guided numerous companies from "surviving to thriving" by
helping them identify and correct counterproductive practices and
capitalize on emerging opportunities.

Contact us:

Measurable Results, LLC

787 Indian Oak Drive

Saltillo, MS 38866

Phone: 662-844-9088

info@bottomlinecoach.com

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