When I purchased a private language school five years ago (along with a business partner), I thought life was sweet indeed. I kept my own hours, changed things as I felt like it and became important. Things were so good that I felt comfortably ignorant of market and business signals.

I loved systems but found it difficult to establish, measure or improve them so didn’t. I loved learning about new marketing, networking and sales techniques but didn’t proactively implement them. I loved interacting with staff and students and other business owners but not in an attempt to really understand them. In effect I became comfortable with my ignorance and it felt good.

After a year or so when the market headed South so did our business. Problems and issues started to arise. Staff started turning-up late for work, students were complaining about teachers and less students were coming. All that was buried in the depths of my ignorance began to arise and create havoc! We ended-up selling the business after protracted negotiations with the new owner and I felt relieved to get the school off my hands.

It was not until several months later that I began to gain some clarity about why things turned-out the way they did. Things that I didn’t do that I should have done became obvious. For a time I felt guilty and ‘beat myself up’ for all the things that I should have seen and should have done. That stage passed and a sense of quiet understanding overcame me - the lessons had been received and I was now able to move on.

The take-a-way is that the more you shed light on or elucidate areas of your life the more you and your business will grow. It may not happen in the way you intend and it may be uncomfortable but when you reach the other side you are thankful that you embarked on the journey. That amazing Pink-Toed Platypus that you think your business is might just lose its mates through ignorance so don’t let it happen.

Jason

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Why is it that dysfunction so often increases the more our business grows? The start or purchase of a new business is often a joyous time full of hope and promise. We continue to believe the lie that is entrenched in the ‘employed’ that we can now enjoy the freedom that being our own boss will bring us instead of pandering to superiors.

If we are lucky the ‘honeymoon’ goes on for months or maybe years and seems very ‘real’. It may seem like we don’t really have to work that hard on the details such as marketing, book keeping or systems as things are running ‘just fine’! We think that simply continuing to do what the previous owner showed us or what our professional advisor’s tell us is quite sufficient.

So things get even better - the market is ripe, business is booming and customers are buying! We need to expand operations so we hire more staff, lease new premises or buy new hardware that will help us do the work that we do faster and in greater quantities than before.

But we start to strike ‘issues’ with increasing frequency. The landlord hikes the rent, our new employee starts coming late for work, some customers are paying invoices well after the due date, our product has a persistent malfunction etc. Things are starting to go wrong just when our business is showing so much promise.

At first the symptoms are subtle but grow increasingly disturbing and substantial over time. The issues take on a life of there own with a building inertia! You are now experiencing the growth/dysfunction paradox which states that the greater the growth the greater the problems!

We conveniently blame our people, customers or market place. However, the reality is that "85% of organizational problems can be attributed to processes with the remaining 15% falling into the people category" (Dan Madison, Process Mapping, Process Improvement, and Process Management). If your business has no systems and processes in place dysfunction will only increase with growth.

So the choices we have to address this paradox are to down-size or systematize. By down-sizing we can maintain personal control of every aspect (or as much as possible), of our business which will consequently severely limit growth, kill us or create a business that replaces our life as we know it. The problem is that markets change and as demand for our product or service wains so does our income yet working hours will often increase.

A far better solution is to ‘nail down’ our systems and processes carefully so that we can be confident that key functions of our business are reliable and dependable. We do the internal work to grow our ‘business consciousness’ so that our core processes are clear and understood. We then continually try, tweak, improve and test the latest and greatest techniques, tactics and information relevant to today’s marketplace. We keep what works and throw-out what doesn’t.

We must be acutely aware that the successful business owner is a ’surgeon’. We must keep the heart pumping while constantly repairing, improving and re-building the many systems that ensure the survival and growth of our businesses over the long term.

Thank you very much for reading and please leave a comment.

Jason

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Ever since I heard about the amazing Moniac machine made by fellow New Zealander Bill Phillips in the 1920’s, I’ve been intrigued by the idea of a "business machine". Now, I’m not talking about IBM and business machines that complete routine business tasks but more a machine that communicates key information clearly, in this case "Physically" - intrigued?

Bill designed and built the Moniac machine (Monetary National Income Analogue Computer), to show the macroeconomic flow of money in the United Kingdom national economy.  Of course, in the 1920’s the nearest thing to a modern-day PC was an abacus and you couldn’t just create a new piece of software to run on one of those! So, Bill did what any keen man would do by getting out into his shed and employing hammer and nails.

As it turned-out Bill’s father had taught him quite a bit about hydraulics and fluid dynamics so Bill decided to build a new fangled water wheel type device. What Bill came up with was a hydraulic, physical model. Although not overly aesthetic, the Moniac did prove to be a fantastic and accurate ‘living’ machine.

Water was pumped into the top of the machine and then filtered down though a central column and into various pipes and chambers that represented various ’siphoning’ functions of the economy such as health, tax or education etc. Once in equilibrium, the Moniac could be ‘upset’ by changing any of the variables. For example, the tax rate could be altered and then the impacts traced through the machine as it readjusted to a new equilibrium.

The amount of available money in the Economy was represented by how much water was in the top tank. The net flow of money in the system would gather in a tank at the bottom and was then available to be pumped back to the top to restart the cycle.

The great thing about the Moniac machine was that it took into account the dynamic nature of an economy. Any Economy (like any business!), never stands still, things are rarely held constant and each time any variable is changed, the effects ripple through the economy in a number of ways. For example, a tax rate change will effect disposable income which will affect saving and investment. The machine solved nine simultaneous equations to achieve a new equilibrium.

The Moniac machine proved popular with economists around the world. More Moniacs were built and sent to four British universities, to Melbourne University and Harvard Business School. The physical nature of the machine brought a certain tangibility and realism to the model that was interesting and fun!

To quote from NZIER: Written explanations cannot do justice to the impressiveness of the Moniac – it is something that is best experienced ‘live’. It is a valuable, entertaining and unique teaching tool that shows students that economies are very complex entities in which everything is linked in one way or another and to varying degrees. Observing the MONIAC in operation made it much easier for students to understand the interrelated processes of a national economy.

Wouldn’t it be great to have a tangible model/machine of your business - one that enabled you to clearly see each key element and how any tweaks and changes impact every other key element. Your customer service levels fall to 70% satisfaction which effects your repeat purchase frequency which effects your net profitability etc.

To clearly see all the processes and procedures in your business holistically would create a fully ‘aware’ organization that could be understood and improved easily. This would enable your business to continuously evolve through applied and tested ‘best practice’ in every key area.

It is my passion and vision to create just that, a Business Operating System that enables business owners to develop fully aware business that can be easily improved and shared as they thrive in the today’s uncertain economy. Thank you so much for reading and please leave a comment.

Jason

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It never ceases to amazing me when I see businesses doing the basics so poorly! Why is it so hard to get the simple things right. You’d kind of think that because they are the fundamental pillars on which a sound business is built that they would be understood, measured and replicable for ’structural integrity’ - but noooo!

Take poor customer service for example which is a common complaint from many customers. My Sister has just returned from a week’s vacation with her husband and three kids. The day she got back she realized that she had left her mobile phone charger in the hotel room. Well, thinking it would be simple to have the (small and light), charger sent the hundred or so miles back to her, a phone call to the hotel owner left her scratching her head.

Now, my Sis had just spent quite a few hundred dollars on accommodation and food and stayed at the hotel the previous year so was a returning customer (a nice type of customer to have). Yet, in response to her inquiry on how best to have the charger returned to her the response was "we don’t have any envelopes". Being nice, my Sister offered to send a postage-paid envelope to which the hotel owner eagerly agreed as a great idea.

The result, my Sister needs to limit her use of the phone to preserve the battery, go-out and buy a postage-paid envelope ($4), address & send it in another envelope, hope that it doesn’t take too long for her envelope to arrive at the hotel and for the hotel’s owner or staff to mail the charger back to her, and then hope that the charger she receives is actually the correct phone charger! All in all a messy, time wasting and needlessly painful process due to a business owner that didn’t do the basics right and will be punished by a good customer never returning or passing along a positive story.

The money needlessly lost by business owners and their staff/workers not doing the basics right must run into many billions of dollars. Yet, with clear, understood and sound systems, processes and procedures in place in a business you can rely on the stability that comes with solid business foundations.  Business owners can then reap the rewards of happy customers who are happy to pay - again and again!

Thanks for reading and please leave a comment on your customer service experience whether good or bad.

Jason

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The iPhone 3G has now been released and with it comes a world of opportunity for savvy small business owners. The iPhone 3G’s use as a portable video player is a big part of the reason why consumers are purchasing the very cool device in droves. The future of portable communications through iPhone type devices is only looking brighter.

So why is this important to business owners? Well, it means that you now have another important and viable channel of communication through which to educate your workers. It is getting easier and easier for you to share your process, procedure and informational videos to workers no-matter where they are. This enables you to take better advantage of the power of video to respond to the most current methods or systems that can be rapidly and accurately communicated and employed by workers to the benefit of your business.

In a blog comment posted by Jennifer O’Meara on the Marketing Profs site yesterday, she mentioned that "In studies authored by DoubleClick, Google and AOL, audiovisual content was found to drive an engagement rate 4 to 7 times higher than static image and text." What this means is that your process and procedure information has a far greater chance of "getting in" and consequently being accurately applied.

The iPhone 3G’s video quality is crisp, clear and colorful and its 3.5 inch screen is easily capable of displaying 480×320 video. Just imagine the ability to share your company induction video to new workers or a presentation of your company vision, mission, goals or objectives quite apart from the systems you use and how to use them.

The only limitation for business owners wishing to fully benefit from iPhone 3G video communication is the lack of a video camera. However, it is highly likely that future releases of the iPhone and competing products will include high-quality video cameras. With the addition of a video camera, the remote and rapid assessment of some business issues and problems by using a "quick ‘n’ dirty" method will become much easier.

The future looks bright indeed for rich mobile communications that business owners are able to leverage for business growth and success in an increasingly competitive market place. Please leave a comment and thank you for reading.

Cheers

Jason

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How many thousands of dollars have you spent on Internet marketing courses and software? If you are like most of us budding gurus you will have spent a small fortune.

But how much have you actually applied consistently from the courses and software that you’ve purchased? I’ve spent at least $20 thousand dollars and of the notable one’s - I’ve consistently used a bit out of John Reese’s Traffic Secrets regarding AdWords ad creation and nothing from Jeff Walker’s Product Launch Formula and Eben Pagan’s Altitude course.

Does this mean the courses and software were no good and a waste of time - absolutely not! The information in those courses was brilliant and I was 200% satisfied with my purchases. It’s just that putting it into practice was so hard.

I read all this great information until my head was swimming and couldn’t wait to apply it. The trouble was that I’d apply one technique or use one piece of software for a time but then my enthusiasm would wane as other priorities would arise, changing my focus. In other words I used a "piecemeal" approach to using the information and it tended to produce, well, "piecemeal" results!

Another barrier to extracting the full value from the courses and software was not capturing the information or methodology that was directly relevant to my business in a meaningful format. One that I could readily access and quickly consume just when I needed it. As Yaro Starak stated in his e-mail to me this morning "No methodology. No process." and without a clearly captured process that can be clearly communicated, the best Internet marketing courses and software simply can’t transfer there full value.

So I’ve got nine simple steps for you to follow to test how much more value you can extract from the wealth of information contained in many of your IM courses or software:

1. Devour it all - watch every DVD or CD, listen to all the audios, read every guide or manual
2. Prioritize the information, techniques, methodology, software etc that are relevant to your business
3. Review, learn, apply and test each starting with the top priority
4. Keep the info, techniques, methodology, software etc that produce positive results & discard the rest
5. Download a free trial copy of Camtasia Studio from Techsmith if you don’t already have it
6. Record and describe the "real time" process that you are using to achieve your positive results
7. File the video in your new "Process & Procedure Video Library" under the relevant functional area eg. marketing, finance, product development etc
8. Give the video(s) to an employee or outsourced worker so that they can produce consistent positive results for your business
9. As new methodologies, techniques, software come to your attention rinse and repeat

Let me know how you find it and best of luck with building a solid base of "best practice" processes and procedures for your business drawn from the very best Internet marketing information available!

Thanks for reading - Jason

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Do you remember a time when you worked for someone else and they tried to explain something that was simple to them but totally perplexing to you? I have on frequent occasions over the course of my life and it seems to be the curse of those that ‘know’ (and sometimes at a highly proficient or expert level), but can’t teach to save themselves!

Just recently I was learning a new process from someone and I was getting more frustrated the more I did it. They were watching over my shoulder while I was attempting to complete the tasks and pointing-out all my mistakes as soon as I made them. All I was getting was "you don’t do it like that" and "why did you do that for?" really useful stuff for a learner.

I realized that doing what I felt like doing (picking up something heavy and throwing it as far as I could), was probably not the best way of venting my frustration. So, I focused on remaining calm so that my stress levels wouldn’t rise too high and cloud my brain so that nothing at all would get in.

I reflected upon my ’learning experience’ later that night and came up with ten reasons why many people who are experts, professionals or just know something that others want to know, can very often be hopeless at communicating that information to others.

So here they are:

1. They don’t have empathy for the learner or try to understand how the learner might view their communication

2. They forget the process involved in learning the information, skill or knowledge that they now possess

3. They enjoy the power of knowing something that someone else wants to know

4. They enjoy telling learners that they are wrong or watching them fail when they inevitably make mistakes

5. They are impatient

6. They are not aware of nor allow for the vast amount of subconscious knowledge that they may possess

7.  They have not structured the necessary learning in a series of building blocks for the learner

8. They do not encourage, inspire or motivate the learner

9. They do not utilize rich communication tools that feed the learner information on multiple levels

10. They are assholes!

That’s probably a reasonable list to start with but please let me know if you can think of some others?

Thanks for reading and have a great week - Jason

 

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"A life unexamined, is a life wasted" according to Carl Jung and I agree completely! This statement is challenging and may not sit comfortably with some but I have seen, read and heard about many ’great’ people who have created great and enduring businesses through the power of "examination".

To use a medical example, a doctor would be unlikely to provide an accurate diagnosis of a patient with a broken ankle if they didn’t ask questions or assess the patient.

I love the moments of insight in my business (and personal life), which bring me to realize something is performing poorly that I’m not paying attention to. Often the insights enable me to adapt and improve different aspects of my business and learn a great deal in the process.

Sometimes the clarity with which I am able to show my business processes and procedures using video enables others to comment and point out areas that need to improve or change. For example, by showing a video of a new customer contact process to staff, they were able to offer a number of extremely valuable improvements that reduced the number of procedures required from twelve to seven! It was easy and fast for me to create and share the video and the clear understanding of the new process by staff was amazing!

The faster and more clearly you can see every aspect of your business the faster problems and issues can be detected and fixed and significant improvements realized. The more thorough the "examination" the more success you will attract and that’s what it’s all about.

Thanks for reading and please leave a comment.

Jason

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