Successful Succession

Succession issues are currently at the top of many organisations’ agendas – and if they’re not, they should be. It is difficult to effect a smooth and successful handover and forward planning and careful consideration are essential.
The Football Association will be praying that Fabio Capello will prove considerably more successful as England manager than his predecessor Steve McLaren, whose bungled appointment in May 2006 was considered ill-advised from the start.
Knee-jerk succession is a bad thing, but having a ‘crown prince’ waiting in the wings for years is not an easy situation to manage, as Prince Charles and Gordon Brown will no doubt testify.
But what will happen to the Virgin ‘empire’ once Richard Branson goes up in his proverbial balloon is anyone’s guess, as there is no indication of a number two being ready to step up to the plate.
Most succession plans amount to crisis management. The culture of short termism in which bosses are booted out for not delivering instant results is partly to blame. The average tenure of a chief executive in the private sector is less than four years, and falling, and those hired from outside the company move on faster than those who rise through the ranks.
Chief executive churn is unsettling, destabilising and demoralising and can lead to a spiral of decline. It is also costly: the number of headline-grabbing ‘rewards for failure’ is mounting. So it’s not surprising that shareholders are starting to question companies more closely about their succession plans, which are increasingly being seen as part of good corporate governance.
There are some who ask why we needed to hire an Italian to manage the England football team. Others question the rising number of foreigners running British companies – at the last count 28 FTSE-100 companies had a non-UK national as chief executive. While this may reflect the increasing globalization of business, it owes at least something to companies’ neglect of their talent pipeline over the past 15 years.
Not only do many businesses not plan for succession, they also have scant idea of the talent they have and need within the organisation. So they resort to the ‘easy’ option of drafting in business ‘saviours’, and if they are foreign saviours, then all the better.
The problem with this approach is highlighted by Jim Collins in his book Good to Great, in which over 90% of the ‘great’ companies he identifies are run by chief executives who grew up in the business. There are very good reasons for this, claims Collins. “You need executives who have ambitions for the company rather than themselves, and those people tend to be insiders rather than outsiders who can be ‘bought’.
What’s more, you need to determine who should be in the business and in what seats before you decide where to drive, and the insider has a head start there.” What’s more, this approach has a pernicious effect on the morale of other senior executives, who believe that if they want to get on they have to get out.
Nigel Nicholson, professor of organisational behaviour at London Business School, conducted a survey that found that individuals who change companies every three or four years advance faster than those who remain loyal to their organisation. “There is a horrible tendency in this country not to value insiders,” he says. “Individuals are rewarded for disloyalty, and people often find the only way to progress within their organisation is to wave a job offer under their boss’s nose. Invariably it is only when you get a market value on you that your worth is recognised internally.”
But there are times, of course, when a new broom is just what’s required to sweep away old cultures or signal a change of direction. Chris Brewster, professor of international Human Resource management at Henley Management College and at the University of Reading Business School, concedes: “Most organisations need a leavening of new blood at all levels in the hierarchy. You can have too little executive turnover.”
But he believes the least risky way to do this is to bring in outsiders at more junior executive levels and grow them in the organisation to see if they cut the mustard, rather than just dumping an outsider straight into the top job.
It’s a contention supported by HR guru Dave Ulrich in his new book Leadership Brand (see The Business Review, issue 19), where he asserts that leadership is not as easily transferable as many people would like to believe. “What worked in one setting might not work in another,” he points out.
But as one headhunter says: “You can’t grow talent for every conceivable contingency. There’s nothing wrong with bringing in an outsider provided you can prove that they are demonstrably better than any internal candidates.”
To this end, it is always helpful to benchmark internal talent against what’s available in the marketplace, he continues. “Armed with objective evidence companies are then in a position to justify any top appointment they make – whether it is internal or external – to both internal and external audiences.”
If press ads for heads of ‘talent management’ are anything to go by, at least some companies are starting to take talent management seriously again. Growing numbers of firms are assessing their executive talent and using coaching companies to help them develop it.
But smooth and planned succession of chief executives is the most important aspect of this talent management process, and the hardest to get right.
While long tenure is preferable to rapid turnover, it makes leaving that much more difficult. Recent corporate history is littered with examples of bosses who stayed on too long, including the late Anita Roddick at Body Shop and Sir Richard Greenbury at Marks & Spencer. The answer is to resist the temptation to see the firm as an extension of themselves and view their role instead as custodian of the corporate assets on behalf of the stakeholders.
Previously published in the Business Review, Impact Executives and http://www.onrec.com/newsstories/22545.asp

12 Traits of Highly Successful Entrepreneurs

What are the traits of successful entrepreneurs that set them apart from everyone else? What trait do entrepreneurs like Bill Gates, Steve Jobs, Lawrence Ellison and Richard Branson have that the ordinary entrepreneurs don't? All these questions are going to be answered in this article.

After understudying the lives of these great entrepreneurs, i was able to pinpoint 12 traits that make them successful. Without wasting your time, below are the 12 traits of successful entrepreneurs:

1. Successful Entrepreneurs are proactive learners

Entrepreneurship is a life long process and successful entrepreneurs know this. Things change so fast in the business world; you could be an innovation today and become obsolete tomorrow. To stay on course and adapt swiftly to the ever changing trend, they keep studying and learning.

They read industrial journals, books and magazines. They attend seminars and update themselves regularly with the latest industrial trend. Successful entrepreneurs know that their cup is never full; they know that they don't have the right answers to all questions. So they humble themselves and learn when availed the opportunity.

2. They thrive on risk

I have never seen a successful entrepreneur who rose to the pinnacle of success without a measurable amount of risk. Successful entrepreneurs are risk takers; they risk their time, energy and resources with the hope of building a strong business. If they fail, they risk losing everything they've ever owned. Risk is the main reason many employees fail to start a business.

3. They work for free

Working for free is one of the traits of successful entrepreneurs that set them apart from others. It's hard to find individuals who will be willing to work for free, without pay for many years but successful entrepreneurs do this. They work on their business for many years without pay.

Being an entrepreneur, i can attest to this trait because i have built businesses without getting a dime from them for some years. All profits generated are re-invested into the business. To be a successful entrepreneur, you must always bear in mind that you are not building a job for monthly pay. Instead, you are building an asset that can generate residual income for you and add value to humanity in the coming years.

4. They work longer hours than employees

Successful entrepreneurs are known for their extraordinary resilience and long standing commitment to the course of building a business. Building a business is never easy and it requires time and dedication. Some entrepreneurs are known to work for 70 - 80 hours per week while average employees work less than that.

So if you are going to join their league, then you definitely need to develop the trait of working longer hours than normal.

5. They learn quickly from mistakes

Of all the traits of successful entrepreneurs, this one interests me the most. Many individuals shy away from the game of entrepreneurship because of the fear of making mistakes. They perceive mistakes as bad because mistakes sometimes cost money and pain; so they avoid it like a plague. But great entrepreneurs see mistakes as a learning tool; they see it as an opportunity to learn something new.

"Even a mistake may turn out to be the one thing necessary to a worthwhile achievement." - Henry Ford

They make mistakes in business but they don't quit. They know mistakes are part of the process of entrepreneurship, so they learn quickly from these mistakes and move on.

"Excuses cost a dime and that's why the poor can afford a lot of it." - Robert kiyosaki

6. They have the ability to run on debt

As a rule of life, we are all indebted to someone in one way or the other. With respect to building a business, i have never seen a successful entrepreneur that hasn't been in debt. Everyone owes but these set of entrepreneurs know how to use debt to their advantage, they know how to use debt as an instrument and leverage to build a business and get richer.

"Be careful when you take on debt. If you take on debt personally, make sure it is small. If you take on large debt, make sure someone else is paying for it." - Rich Dad

7. They are accountable and responsible

Successful entrepreneurs are accountable and responsible for the failure or success of business. They shoulder the responsibility of piloting the business through its trying times. If they succeed, it becomes a plus to them but if they fail, they will be held responsible.

8. They thrive on criticism

Another trait successful entrepreneurs share in common is the ability to forge ahead in the face of criticism. Building a business comes with its own challenges; as the entrepreneur, you are bound to be loved and hated by the public. But they always devise a means to use every bit of criticism to make themselves better and stronger.

"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." Henry Ford

"Sometimes, i think my most important job as a CEO is to listen for bad news. If you don't act on it, your people will eventually stop bringing bad news to your attention and that is the beginning of the end." - Bill Gates

9. They are ambitious

Ambition is one of the traits of successful entrepreneurs. Successful entrepreneurs think big and do things big. They are never satisfied with their current achievement; they believe there is always room for constant improvement and they go for it.

Take a look at Mukesh Ambani's achievement in building Reliance Group; the world's largest refinery. Lakshmi Mittal built Mittal Steel, the world's largest steel producer. Look at Larry Ellison's ambition to surmount Microsoft. In generality, entrepreneurs are very ambitious personalities.

10. They are opportunist

This is another trait of successful entrepreneurs. They share a common ability to see opportunities, where others see problems. They know that behind every problem lies an opportunity. Great entrepreneurs are the drivers of creativity and innovation.

"The way to make money is to buy when blood is running in the streets." - John D. Rockefeller

11. They are great leaders

Successful entrepreneurs are great leaders with a proven leadership strategy. They possess the ability to bring out the best in their employees. They inspire creativity and foster innovation. They also have the ability to hire and lead smarter individuals.

"Good leadership consists of showing average people how to do the work of superior people." - John D. Rockefeller

12. Successful entrepreneurs are team players

"I want to start my own business," 'i want to be my own boss,' 'i want to do this my own way.' These are the words i often hear from would be entrepreneurs. Successful entrepreneurs know that entrepreneurship and investing are team sports. So therefore; they never work alone, they join forces with other entrepreneurs and professional advisers to build a stronger business.

"Go to the wolf, consider its ways and be wise. A wolf will never hunt alone; it hunts in packs because it knows the power of team work." - Ajaero Tony Martins

In conclusion, these are the 12 traits of successful entrepreneurs which you must possess to succeed. These entrepreneurs were not born with these traits, they developed them over time. You can also develop these traits if only you are willing.

4 Ways To Create A Professional And Successful Trade Show Booth On A Small Budget

Today's cut throat competition in marketing consumer products and services make it inevitable to use all available sources to gain visibility and increase the client base. Taking part in trade shows is an effective way to achieve this. Though it is an effective way, it is also an expensive way to promote one's services or products. Expenses for a trade show queue up in a variety of ways such as cost of the raw space, promotional material, trade show booths or displays, temporary stall assistant if it takes place in a different city or country, transportation and travel expenses, and so on. Among these, one of the elements that contribute a great deal towards these expenses is the trade show booth or display. Not all businesses can afford expensive stalls, in such situations one is forced to play within a given limited budget yet remain catchy and professional.

There are many ways to create a professional and successful trade show booth on a small budget.

1. Plan ahead - If you prepare for your show at the eleventh hour then you will be forced to spend more on your booth. Preparing at the last moment gives you very little time or no time to juggle between various options on the creation of your booth, in terms of both cost and the booth design. Maybe if you had enough time to shop around, then you would have come across a cheaper deal and you would not be forced to buy the first booth display that you see. If you plan ahead maybe you could visit discount sales that take place during various times of the year and have the material ready for your tradeshow.

2. Keep your booth simple and uncluttered. Do not have too many design elements, but leave enough room for the visitors to move around. This would make your booth look spacious and at the same time will cut down the unnecessary expenses on the design elements that clutter the stall. Use bright colors in your booth that will stand out.

3. Until you participate in a number of shows, avoid creating your own displays. Many think that creating their own display will cut down the cost. Most often, the contrary proves to be true. You would always go out of your budget as you progress with the design with no guarantee on the quality of the final design output. You would rather be well off to use experts in this field while you concentrated on the other promotional activities.

4. A physical visit to the booth in advance is always useful to create a cost effective design rather than just looking at the dimensions of your stall in writing. Many stalls are mentally designed in virtual space and when they go to the real spot, they realize that the design or the layout they had in mind will not workout, leading to double expense. When you visit your stall, you will be able to decide whether a rollup display will be suitable or a tabletop display unit would be ideal. Rollup banners and tabletop display units are often cheap and they can be reused for your future shows too.

3 Qualities a Home-Based Business Entrepreneur Needs to Be Successful

Many people think that setting up a home based business will be easy. They think that all they have to do is stick up some sort of website and they will be a millionaire. These people are on the road to being very poor very quickly. They jump around from get rich quick scheme to get rich quick scheme, paying for program after program and they are never successful. Then they give up in disgust and bad mouth those who work from home.

A home-based business is not a get rich quick scheme. Richard Branson started his empire in the basement and Bill Gates started work from the garage. If you want to be successful working from home there are three qualities that you need.

You need to be patient- Success is not immediate. You cannot just start a business and expect the money to roll in. You need to know that profitability takes time and effort. You need to build your home-based business up one foundation stone at a time to ensure that it is built in a viable way that cannot just be taken away from you. They say that there is no such thing as an overnight success although success can exponentially grow based on the efforts and patience that you have now.

You need to be dedicated to the point that you are stubborn- They say that the most successful people are dedicated to the point of stubbornness. (As an aside, I do not mean pig-headed. If you are stubbornly doing something that isn't bringing success to your business then you are wasting your time.) The most successful people work out what they want to do and then work out the best way to achieve it. They decide on their home-based business idea and they stick at it until it is profitable. They don't jump around from idea to idea and get bored easily. They don't waste money on schemes that fail to deliver. They set a goal, work out what they need to do to achieve this goal and then just stick at it.

You need to be prepared to ask for help and take advice and criticism from others- Successful entrepreneurs and home-based business people are always prepared to ask for help and take advice and constructive criticism from others. Sometimes you get stuck at a plateau and you need a little advice from others on how to take that next step. You need to surround yourself with some mentors who can help you take your business to the next level.

If you think that you possess the qualities that I have mentioned above then chances are that you could be very successful at running your own business.