What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

CEOs: Don’t Be Left Behind, Make Your Company Relevant

stuck in another worldIs your company stuck in the past…is your industry slowly (or quickly) changing?

Have your customers’ needs moved away from your old product/service offerings?

These changes can build up, and then erupt.

Companies become Stuck in Another World if:

  1. They don’t recognize or react to evolving industry forces and trends
  2. They have lost their core strengths and competitive advantages
  3. Products/services have become indistinct commodities

If this is the case, what can you do about it?  For those readers who have successfully dealt with these challenges, what are some successful tactics you can share with the 9Stucks readers who find themselves in this predicament?

Just this summer, conversations I’ve had with CEOs and private equity investors have quickly gravitated to their laments and frustrations about either: 1) customer behavior; 2) new competitors; 3) industry dynamics; 4) product/service offerings; or 5) all of the above.

The chatter is loud. Here is a sampling from the conversations:

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What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

5 Pesky Plights Hurt a Family Business (Part 3): The Handoff

HandoffI ran outdoor track both in college and high school. Since I was a fast runner (back in the day) I always ran one of the legs of the 4×100 and 4×200 relay teams. Our relay teams practiced daily on perfecting the handoff – passing the baton. We had the relay leg transitions down pat. Unfortunately family owned businesses may not plan for a leadership transition and may bungle, delay or simply avoid the handoff to the next generation of family leaders or to non-family executives.

This is the mid-point in my multi-part series that explains how 5 particularly disabling conditions unique to a family business can exacerbate business underperformance.

This post is about companies with non-existent succession/transition plans. When owners can’t or won’t let go, four of the 9Stucks (Ditch, Moment, Slow Lane, and Another World) get really amped up and push the stuck company into a deeper hole.

Family company leaders often stay in their roles too long.  But staying too long is not the problem; being in a zone of leadership indecision creates troublesome ripples throughout the entire company.

FamilyCo was one of my stuck manufacturing clients. I was hired by the company/family to do a ‘fresh eyes’ assessment of their business. The company wasn’t in trouble but it had hit a wall and was stagnating. It didn’t take me long to figure out there were issues with the senior team, the company’s competitive position and a number of important operational functions.

Some facts:

  • Jack (second generation) was the CEO and the son of the founder; at age 70 he worked full time at FamilyCo
  • Jack’s 2 children (son and daughter) both worked for the company. The son (Bill, age 42) ran operations (manufacturing and engineering). The daughter (Susan, age 40) was head of marketing. Bill and Susan worked well together.
  • Sales was led by a non-family member and he reported directly to Jack. In the last few years, the sales team had experienced significant turnover.
  • The CFO was also a non-family member and had worked for Jack for many years. He was nearing retirement. His duties included many administrative functions and human resources.
  • There was no Board of Directors/Advisors

The children told me: “Dad was the driving force to get the company to where it is today, but now we think he has blinders on; he doesn’t acknowledge all the changes in the industry, the shifting customer demands or the need to upgrade our facilities, systems and equipment. He is living in the past. You (me) need to talk to him about letting us run the company.”

Okay…now what?

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What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

Hostess Brands: Stuck in Their Own Twinkies

“Serving up family time, one smile at a time.”

- Tag line from the home page of the Hostess Brands website

Today I’m announcing that …

Hostess Brands Joins the Top 20 Stuck List

The creator of Twinkies becomes the latest iconic corporate brand to ‘get listed’. Here is my Top 20 Stuck List ranking so far:

  1. Hewlett Packard – Call the Handyman: These Garage Doors are Broken
  2. Yahoo – What Marissa Mayer Should Do To Unstick Yahoo
  3. Hostess Brands
  4. TBA (Hint: baseball team from Boston)
  5. Numbers 5-20…More to Come (any suggestions?)

Hostess filed Chapter 11 (again) this year. Do you Wonder (sorry, bad pun) what happened to drive them back into court a second time? How is it possible that a well known, ubiquitous US corporation that sells millions and millions of sweet, spongy, crumbly, powdery, chocolate and squishy things each year can’t pay its bills?

Find out why Hostess is Stuck and my Top 10 recommendations to fix the company once and for all.

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What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

Emotional Venting in a Stuck Company. Episode 2: External Forces

 

CEOs and employees of stuck companies reveal three recurring themes when I interview them during coaching sessions. These themes launched a series of three blog posts about ‘Emotional Venting in a Stuck Company’.

Episode 1 illustrated the importance of listening to the emotional reactions of a stuck company’s key people about LEADERSHIP – the unfiltered, raw, spill your guts variety. Their voices express what they live everyday. Episode 3 will cover internal confusion about OPERATIONS.

This second Episode documents the wide range of emotion about a company’s EXTERNAL FORCES. External forces have a decided influence on your corporate strategy.  The key external forces that impact your organization are:

  • economic
  • political, governmental
  • social, cultural, demographic
  • technological
  • industry specific
  • customer behavior
  • competitive pressures

The external forces can be an impending threat or they may present strategic opportunities for your business. Your interpretation of and reaction to these external forces directly impact the strategic decisions you make. 

The 9Stucks that relate to external forces are Another World, Rut and Traffic. The comments I hear from leadership teams about these stucks reveal a wide range of emotion: angst, indifference, measured confidence, or arrogance.  Their typical hot buttons topics are concentrated around:

  1. industries in flux
  2. unpredictable customer behavior
  3. constant competitive pressure.

From Angst to Arrogance

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What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

What Marissa Mayer Should Do to Unstick Yahoo

What do Hewlett Packard and Yahoo have in common? Each company:

  1. has a very new or relatively new CEO
  2. is in the heart of Silicon Valley (they are almost neighbors!)
  3. has an internationally recognized brand
  4. is STUCK

Back in May I wrote about Hewlett Packard’s long, steady slide to become a stuck Company. That blog post was entitled: Call the Handyman: These Garage Doors are Broken.

Today, Yahoo officially joins HP as a member of the 9Stucks club.

Becoming stuck isn’t an instant event for companies whether they are large or small. Stuck develops subtly over time and is more insidious than a sudden, severe crisis. It’s like falling asleep at the beach and waking up to see the water swirling all around you and your belongings. Added to that is the cumulative negative effect of one stuck leading to another, and another, until the organization is in a veritable stew of stucks, also known around here as Stuck Salmagundi.

A bit of history may illustrate why Yahoo, like HP, has reached the exalted ‘they’re stuck’ designation.

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What is this thing called 9Stucks?
9Stucks is a dynamic business diagnostic tool. It identifies nine distinct yet interrelated business challenges that cause a company to underperform.

Sacred Cow Disease aka Bad Bovine Blight

 

Let’s have a roundup and herd some cattle together.

I know you’ve run across Sacred Cows (“SCs”)…we all have in our business careers or personal life.

Dictionary.com defines a Sacred Cow to be: “an individual,organization, institution, etc., considered to be exempt from criticism or questioning”

There are good Sacred Cows, like Fenway Park, or long established brands or business practices that should not be changed.

There are Sacred Cows that are not good…these bad bovines are the people, rules, business processes, habits and/or policies that hurt company performance.

This is my first post about the ‘bad’ SCs, the ones that:

  • are difficult to change
  • are hard to get rid of
  • can’t be spoken about

The hush hush aspect of these SCs is like when Lord Voldemort (“You-Know-Who” or “He-Who-Must-Not-Be-Named”) is mentioned in the Harry Potter books – they can’t be openly discussed for fear of what might happen.

You might be thinking: “What’s the big deal – SCs will always exist so move on.”

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