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…?

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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.

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.

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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.

Part 2: An Eyeful and an Earful

What I saw, what I heard…

The first post (‘A Fresh Pair of Eyes’) in The 9Stucks Boot Camp Series ended with me getting the approval for a large scale integrated consulting assignment at StorageCo.  This is the second post in the series. It will cover what I started to see and hear once the project started.

Walt Disney once said: “The way to get started is to quit talking and begin doing.”

So, that was what I did – I began doing. Digging in at PaperCo meant that I was a sponge:

  • met with many people in all functions of the company
  • gathered all kinds of paper and reports
  • absorbed data, crunched numbers, then got more data
  • soaked up the atmosphere around the plants
  • watched the products being made
  • took notes and documented what I heard

Remember, I heard these themes from Pete (the CEO) and his brother Jack in my ‘pre-proposal’ meetings:

  1. “we have a cost problem
  2. we need an objective outsider to do an in-depth look at the business
  3. the company had limited growth and marginal profits over many years
  4. most of the personal assets of the aging family owners were tied up in the business

What I found after digging in