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 5): The Sacred Cows

cowI 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”.

This is the final post in my five-part series that explains how 5 particularly disabling conditions can negatively impact the value of a family-owned company. I saved this particular subject for last. I find that the presence of ‘bad’ Sacred Cows is the most emotional and highly personal of all of the previously discussed performance inhibitors found in this series. 

Good SCs, like a popular brand or an established, competitive business practice, are legacies that should not be messed with. However, ‘bad’ SCs:

  • are difficult to change
  • are hard to eradicate
  • can’t be spoken about
  • can have a profound, severe impact on operations

A family-owned company’s bad Sacred Cows wander around these pastures:

  1. People
  2. Products (or Services)
  3. Places
  4. Past Behavior

People: unqualified family members with significant roles

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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.

Quick! Exit! Uh…not so fast

Exit Planning is a trendy topic, especially for owners of stuck companies who often develop the itch to sell their business when raw emotions push aside rational thought.

Exit Planning means helping prepare the company and shareholders for an ‘exit event’ (aka Sale).

The idea of “It’s time to sell the business” becomes more top of the mind when the owner(s) of a stuck company grow weary of dealing with their own personal collection of stucks. Here are some points of frustration…

Since I have been asked about Exit Planning/Selling a business frequently in the last couple of months, I thought I would share an email I wrote to the CEO of a stuck company who was contemplating selling.  Here goes:

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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.

Call the Handyman: These Garage Doors are Broken

 

Does the 9Stucks diagnostic tool apply to companies of all sizes?

Does 9Stucks work in determining if large, established public companies, like Hewlett Packard are stuck?

HP is a perfect example of a long-term, dysfunctional, stuck company. It wasn’t stuck in the garage…

Over many years at HP there has been conflict within the Board, conflict at the CEO and C-suite level, conflict in the rank and file, an unclear business model and many other conditions noted below that have caused it to be perpetually stuck.  A once great company has plummeted down; today the big question is whether Meg Whitman can lead a comeback.

Fortune Magazine writers James Bandler and Doris Burke are the authors of a recently published and well-written article that documents “How Hewlett-Packard Lost Its Way” (May 21 issue).  I have extracted content from their article (all the italicized quotes below) that relate to the six of my 9Stucks that I think apply to HP (Ditch, Moment, Slow Lane, Another World, Fog, Maze, Rough).

Stuck in the Ditch:  there is a significant, persistent problem within the organization’s leadership ranks. Ditch is caused by one or more of these six conditions -

  1. Weak, uninspiring leadership
  2. The CEO does not command the respect of the organization.
  3. The CEO’s behavior causes constant anxiety throughout the organization
  4. Corporate governance is broken
  5. Meddling by the Board
  6. No hands on the wheel (i.e. formal governance)

HP has or has had 5 of the 6.

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