employee performance Archives - Your ExitMap

Key Employees: Build and Protect Business Value

Pat Ennis — Fri, 12 Nov 2021 20:18:33 +0000

Key Employees You may have people working in key roles who are instrumental in growing and building the value of your business. These key people can be identified as having the following characteristics: Makes a substantial business contribution Possesses critical information or knowledge Maintains and nourishes key contacts and relationships Sellable Business In helping clients plan to build a sellable business, and then eventually exit on their terms and conditions, we emphasize that “key people are a key value driver” in realizing success in both of those strategic goals. And, we find it helpful for owners to have two categories in mind when considering key ... Read more

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Manage Activities; Lead for Results

John F. Dini — Thu, 25 Jul 2019 09:23:17 +0000

A few weeks ago I posted a comment in the Business Journals Leadership Trust Forum about a life lesson I learned. The difference between effort and outcomes – Manage Activities; Lead for Results. They reached out and asked if I could expand my comments a bit. Those of you who know me won’t find it surprising that it grew into an article. You can find it here. I hope you enjoy it. Remember, lead for results. Invest 15 Minutes and take our FREE Exit Readiness Assessment. We do not request any confidential information. John F. Dini develops transition and succession strategies that allow business ... Read more

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Is Google Making Us Stoopid?

John F. Dini — Sun, 02 Jun 2019 09:43:25 +0000

As an Exit Planner, most of my engagements involve assessing a management team. They may be the intended buyers of the company, or else they are key factors in the saleability of the business. The biggest and most frequent complaint I hear about managers is that they don’t know how to THINK. Business owners lament the inability of employees to discern critical paths, assess alternatives, or analyze complex problems. Examples of Thinking Shortfalls A CPA is doing a final review of a client’s tax returns, as prepared by an associate. As with many business owners, the client has two related entities, one acting as the ... Read more

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What’s Wrong with the Buyer Generations?

John F. Dini — Sat, 03 Feb 2018 12:04:50 +0000

Many of the upcoming buyer generations can’t or won’t run Baby Boomer businesses. This is (or should be) of concern to sellers everywhere. “The children now love luxury; they have bad manners, contempt for authority; they show disrespect for elders and love chatter in place of exercise. Children are now tyrants, not the servants of their households.” Attributed to Socrates by Plato. Elders have been complaining about their offspring for 2,500 years. The complaints change only in the activity bemoaned. “Chatter in place of exercise” is replaced by those damn radios, or automobiles, or television, or rock’n’roll, or cell phones or texting. It’s amazing when you realize that ... Read more

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Employee Retention Before and After Your Exit

John F. Dini — Sun, 31 Dec 2017 11:04:36 +0000

In most businesses, employee retention is a material factor in valuation and transferability. The ability of a buyer to assume control of a fully-functional organization has substantial influence on his or her perception of a company’s value. Any need to pay the seller for an extended period of training adds a redundant executive salary to the projected operating costs. Concern that key personnel may resign or be recruited away by a competitor adds a level of uncertainty to the transfer. Of course, the basic premise of “The more you work in the business, the less it is worth.” always applies. Even if you’ve effectively delegated most of ... Read more

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Celebrating Mr. Fezziwig

John F. Dini — Tue, 26 Dec 2017 13:30:56 +0000

To celebrate the holiday, I’m reprinting a post from 2013 about the underappreciated boss of A Christmas Carol, Mr. Fezziwig. I hope that you enjoy it. Merry Christmas! Last week was the 170th anniversary of the publication of Charles Dickens’ A Christmas Carol (December 17, 1843). The immortal words of Ebenezer Scrooge are ingrained in the memory of the entire English speaking world. I’d venture to guess that “Bah, Humbug!” can be correctly identified as to source and speaker by over 99% of those reading this. The novella, serialized in five parts, was not a commercial success. Unhappy with the sales of his previous novel (Martin Chuzzlewit– no wonder!), ... Read more

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After the Exit; “Nothing Will Change”

John F. Dini — Thu, 27 Apr 2017 08:19:16 +0000

“Nothing will change.” It is almost de rigueur for an acquirer to include that in his or her opening comments to the incumbent staff of a just-purchased business. Sometimes it is the seller’s attempt at making folks feel better. “Don’t worry. They promised me that nothing will change.” In the moment, it seems like a calming thing to say, a confidence builder for the employees who have just been informed that they have a new boss. In the long run, it can cause more problems than it solves. Everything Changes In any company, change is ongoing. Employees are asked to learn additional skills. Systems are upgraded. Procedures ... Read more

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Stop Managing

John F. Dini — Sun, 29 Jan 2017 17:39:52 +0000

Why would anyone advise business owners to stop managing? Management is a proven science. From the time and motion studies of Frederick Winslow Taylor in the late 1800s, to Matthew Kelly and Patrick Lencione’s Dream Manager, we are constantly in search of ways to make employees more effective. Management trends (some say “fads”) come and go. Wikipedia lists a number of major theories since the 1950s, including Management by Objectives, Matrix Management, Theory Z, One-minute Management, Management by wandering around, Total Quality Management, Business process reengineering, Delayering, Empowerment, 360-degree feedback, Re-engineering and Teamwork. You could probably throw in a couple of offshoots like ISO 9000, Open Book ... Read more

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Exit Planning: Telling Secrets

John F. Dini — Sun, 08 Jan 2017 10:08:41 +0000

Planning your exit from a business is a process of telling secrets. For many owners, it is the most terrifying part of selling. A rancher in South Texas once said to me, “I’m going to tell you a secret, and you have to solemnly swear not to tell anyone. When you do, you have to make them swear the same thing.” Most business owners are very cautious about with whom they share their exit plans. The logic is intuitive. The more the information is shared, the bigger the chance is that someone will use the knowledge against you. Competitors will tell customers, insinuating that your company will no longer ... Read more

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Protecting Your Best Asset

John F. Dini — Sun, 11 Dec 2016 12:21:32 +0000

If you are planning your exit from the business, what is the best asset that you have to sell? Unless you have patented product, exclusive rights, or long-term customer contracts, you answer was likely “Our people.” Even if you have strategic differentiation like the ones above, “our people” was still likely a top-three answer. Proponents of Human Resource Accounting correctly point out that few businesses have a bigger investment. Hiring, training and developing talent is at the center of most successful organizations. But people aren’t chattels. How can someone rationally consider paying top dollar for your successful business when its best asset might disappear the ... Read more

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Is Your Business Built on Individual Heroics?

John F. Dini — Sun, 04 Sep 2016 15:23:14 +0000

Great employees are a wonderful gift, but individual heroics aren’t healthy for your business. Someday, you will start thinking about leaving the business. Perhaps you already do. When you begin planning for your transition, what will your company systems sound like when you describe them to a critical buyer? “Yes, we have a process for that. It hasn’t been updated, but Martha knows it like the back of her hand.” “We really don’t have anyone cross-trained on that machine. Bucky likes to work alone, but it’s okay because he hasn’t taken a vacation in three years.” “We always use Andy on that route. There are lots of traffic ... Read more

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Selling to Employees: Is Your Exit Strategy Right in Front of You?

John F. Dini — Sun, 10 Jul 2016 15:25:38 +0000

When I interview a prospective client for exit planning assistance, we usually explore selling to employees. The first reaction is always “That won’t work. They don’t have any money.” If you have a company with reasonable cash flow, a talented management team and sufficient time, selling to employees is not only a realistic option; it may be the best way to get value from your business. I’ll define those parameters for you in a minute. If you haven’t read my eBook Beating the Boomer Bust, follow the link for the free download. My research shows that the hard numbers will inevitably translate into a hard market. ... Read more

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