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.

Your Company’s Spring Training: Who’s On 1st? Where’s What?

RedSoxI Don’t Know (wait…he’s on third). Major League Baseball’s Spring Training kicks into high gear this week. Red Sox position players reported on February 18th and today (Feb. 20th) is the team’s first full squad workout. The players know their positions. Some players are versatile and can rotate around the lineup; however, once they are all on the field and in position, there is no confusion about their roles and what’s expected of them.  That’s the way it should be. Clear responsibilities set by management and known by their teammates.

Can you state that your senior team and all your employees are clear about their roles and responsibilities? Abbott and Costello highlighted the frustration and tension when there is a lack of clarity about ‘Who’s on First’. Here’s a contemporary take on the skit:

Role clarity has a distinct impact on your company’s overall performance.

If that sounds like Business 101 common sense, then why is it that in many of the Stuck companies where I have worked, there is a great deal of organizational fuzziness and they are Stuck in the Slow Lane?

What causes role ambiguity?

[Read more…]

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 2): The Strategy Freeze

PolarBearsFightingInnovate and grow or maintain the status quo?

The process of making this basic strategic choice can be an exciting journey forward, or a source of conflict in a family-owned company.

Why? What causes a family company to be frozen in its tracks over this fundamental question? And what can be done to thaw the ice, or better yet, prevent the business from becoming Stuck in the Moment?

You may be thinking…’Conflict among the shareholders of a private company over strategic direction is common and good.’ You’re right! Debate over the best go-forward strategies and tactics can be healthy and productive. In companies that are not family owned, the conflict tends to resolve itself in a timely and orderly way. This is especially true in companies with outside institutional investors who don’t tolerate indecision for extended periods of time.

In some family-owned companies, the strategic discord festers and lingers. A ‘strategic fog’ permeates the boardroom, family gatherings and the company’s hallways and cubicles. Critical decisions are delayed and significant opportunities ignored. The disagreement can go dormant but then suddenly explode. This can be debilitating to the business and to the shareholders.

What has always intrigued me is not the presence of a rift over the strategic direction of a family business. My question is why the conflict becomes so pervasive and common.

My experience points to 10 ingredients:

  1. History and nostalgia
  2. Personality traits of the family shareholders
  3. Knowledge disparity
  4. Background noise
  5. Breakfast table scrambled eggs
  6. Cash (see Part 1 of this series – The SeeSaw)
  7. Mood of the day: comfort, fear, fatigue, ambivalence
  8. Age
  9. Lack of trust
  10. The family stew – a simmering salmagundi of any of the above

P.S. #’s 8 and 9 are smokescreens [Read more…]

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.

Bring On The Stuck Company Cast

AdmitOneTicket9Stucks is a business diagnostic tool that identifies nine distinct yet interrelated business challenges that cause a company to underperform and restrict innovation. The 9Stucks are patterns…recurring conditions I’ve seen and experienced fixing stuck businesses for the last 20+ years. These 9Stucks are real, not theoretical.

One reader of the 9Stucks blog said to me: “I may be stating the obvious, but when I think about your 9Stucks, I think about PEOPLE. Don’t the people in a company have a big impact on creating, causing or maintaining all of the stucks?”

Hmm, good catch…

People are the driving force behind the 9Stucks.

They are the actors and actresses who have leading and supporting roles in an organization’s stuck performance, a performance that can carry the same degree of drama as any stage play.

Introducing the  Stuck Cast.

Where can you find the members of the Stuck Cast in your company? Do they slink and slither about, hide in cubes, lurk around the kitchen area, or are they right there in front of you?  Or are they…you?

The members of the Stuck Cast are not diabolical. They are not co-conspirators (well, maybe some are…). They are not sitting around your conference room table reviewing a script entitled: “30 Sure Fire Techniques That Will Make Our Company Stuck”.

They don’t need to prepare for their roles because these players are out and about just doing what they do every day:

  1. causing or creating the stucks
  2. enabling the stucks
  3. maintaining the stucks
  4. being clueless about the stucks
  5. fixing the stucks

Do you recognize any of the following cast members? [Read more…]

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.

How Scrooge and Marley Became Unstuck

Scrooge and Marley PLC was stuck.

I don’t identify my clients by name, but given the widespread publicity and overall notoriety of this particular company, I felt it would be beneficial to reveal the real ‘story behind the story’. This is a case study about how Scrooge and Marley PLC became unstuck.

Background

Scrooge and Marley was a mature, privately-held ‘counting house’. The company was founded by Jacob Marley and Ebenezer Scrooge, two aggressive, entrepreneurial clerks. There were no outside investors and no cash awards from any business accelerator programs. (Hard to imagine who might have wanted to hear their elevator pitch!)

What is a ‘counting house’? Marley called their business a ‘money-changing hole’. It was a closely held, secretive financial institution that charged high interest rates on all transactions. They were loan sharks…predatory lenders operating out of a dingy warehouse. It’s a good thing their home office was in London, otherwise they probably would have been targeted by Dodd-Frank or The Consumer Finance Protection Bureau.

Jacob Marley died while he was still employed at the company. There was no key man life insurance; they were too cheap to buy a policy. After Marley’s death, Scrooge became the sole shareholder and he decided to run Scrooge and Marley as he saw fit.

Little did Scrooge know that Jacob decided to maintain a Board observer role.

[Read more…]

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: How To Deconstruct A Stuck Company Stew

Is your company’s value ebbing or declining?

Do you know ALL the reasons why your company is underperforming, or can you only pull apart some of the reasons?

Figuring out why shareholder value is deteriorating can be easy if the issues are really obvious. It can be hard and confusing if the overall situation is a quagmire.

The 9Stucks collection identifies the most common causes of why a company isn’t meeting shareholder expectations. For those of you who have looked at the 9Stucks, each standalone Stuck is straightforward and uncomplicated. Most of the significant, contributing issues that cause a company to be stuck are not hard to uncover if you know where to look.

However, the 9Stucks are usually not limited to just one or two. A stuck company always has A COLLECTION of the 9Stucks. The breadth of the collection determines the overall organizational ‘stickyness’.

This tangled, unique mix of the 9Stucks acts as a significant impediment to figuring out the real, challenging issues in the organization because it is often difficult to extricate and isolate the individual components of the mix, let alone fix them.

I call the mix Stuck Salmagundi.

Salmagundi…?

[Read more…]

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.

CEO: Does Your Team Have Control of the Ball?

The team watching the ball slip away...

“The only players who survive in the pros are the ones able to manage all their responsibilities.” – Tom Brady, Quarterback of the New England Patriots

Football, rugby, or any other sport organized around a finely-tuned playbook, requires players to understand roles and execute plays in both familiar or unplanned situations. Each player has defined roles and responsibilities based on his skills; that player is fully aware of his role, the roles of others and has studied the plays. A solid playbook enables a cohesive team to maintain control of the ball and win.

Does your company’s playbook have:

This all too common, weak people/process combination creates lots of broken plays. Basic things like roles, skills, processes really should be a given in any organization.

But if that’s what’s ‘supposed to be’, then why have I regularly seen many corporate fumbles, pigpiles, tangled situations and outright conflict over ‘who does what and how’?

[Read more…]

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.

How To Boost Cash Flow: 11 Recommendations That Worked

Want more Benjamins? Read below.

BuildingCo was constantly in a cash crunch.

The company manufactured a line of building products, had one production facility that supplied 12 regional warehouse/distribution centers and was founded by two entrepreneurs. BuildingCo was well positioned in a steadily growing (at the time) geographical region of the US. To help fund the company’s growth, management used a combination of outside capital from 2 private equity groups, mezzanine and senior debt.

However, as the velocity of growth accelerated, the company regularly bumped up against their line of credit availability.

They were running on cash fumes.

Pete, the CEO/Co-Founder, grew weary of his company’s cash flow problem. He had a simple solution…get a new slug of equity into the business from the 2 private equity funds and BuildingCo would be free from their growth shackles.

Sounds like an easy solution. Draw up the paperwork.

However, the private equity guys ‘suggested’ a different approach to Pete.

[Read more…]

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 3: Operations

This is the final post in the three-part series:

‘Emotional Venting in a Stuck Company’

This final episode explains emotional venting related to internal confusion over the company’s OPERATIONS. When I stick my head under the hood of a company and listen, I often hear lots of clanking, banging and rustling from the CEO, Board, and investors about:

  • the overall business model
  • cash (or the lack thereof)
  • the capital structure (translation – too much debt, not enough equity)
  • pricing
  • costs: fixed and variable
  • business processes, weak systems, old equipment
  • the basic forces of producing and executing

Recap of Episodes 1 &2: Episode 1 pointed out the emotional ebbs and flows associated with LEADERSHIP in a stuck company.  Their voices express what they live everyday.

Episode 2 gazed outward at the emotional toll inflicted on the business by a host of ever changing dynamics broadly called EXTERNAL FORCES. What’s happening to us?! Can a company be a victim? Maybe so, but maybe not…

The 9Stucks that relate to business OPERATIONS are Fog, Maze and Rough. The comments I hear from leadership teams about these stucks reveal a lot about the nitty-gritty functioning of the company.

Listen to what people have said when OPERATIONS are contributing to underperformance…here’s a peek at my notes from initial client meetings:

[Read more…]

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.

[Read more…]

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.

Stuck in the Rough: Is Your Company Overgrown With Weeds?

Growth is great, but not when unchecked growth sprouts weeds in your company’s halls, cubicles and production space.

I recently worked with the CEO (Rob) of a company (ServiceCo) that provides outsourced business transaction services to large corporations.  Rob should have been ecstatic with his record level order backlog.  Carefree, happy days were ahead!

But Rob wasn’t happy. He was pretty glum and for good reason. Two factors created the huge backlog:

  1. lots of new orders (great)
  2. the company’s collection of clogged operational practices worked against timely order completion/shipping. It was taking forever to get an order out (not great).

ServiceCo was infested with weeds; they were Stuck in the Rough. Why?

[Read more…]