Business development strategy in times of crisis

An article on the broadcast of “Strategy in Times of Crisis. From Survival to Prosperity” with Brad Sugarz, the #1 coach according to Entrepreneur magazine.

1-on-1 meetings as a successful management system

Management in the United States changed in the mid-1980s. What happened then: the word “management” disappeared and everyone started talking about “leadership.” 

My definition of management is different from the generally accepted one. Management is a competent, productive employee. Competent – a person can do his job, and productive – he can do it profitably. 

Managing different age groups is different. Managing the baby boomers was easy because they were used to creating and making, they were fixing, not throwing away. That generation had to think for themselves, they weren’t told why to do something, they were just told what to do.

I was born in 1971, and my generation was the first in the U.S. and Australia to throw everything away because most things were made poorly in China. It was a generation that had to be told not only what to do, but how to do it. 

Today’s generation is people who don’t just throw away broken things. They are proud of their broken things, proud of the fact that they don’t fix what is broken. They need to be told not only what to do and how to do it, but why to do it.

The baby boomer generation thinks this generation is spoiled. And today’s generation thinks they’re slow and don’t understand the way modern people think. So when we look at changing management, we have to pay attention to changes in people, in their mentality. Baby boomers move a lot faster, they’re more agile. And we need to be more concerned about their emotional state.

The 1-on-1 approach in Silicon Valley is more of a coaching, mentoring style of management. When I was 21, I complained to my father about not being able to hire good employees. And he replied to me that I get the kind of people I deserve. “You’re an ordinary manager of an ordinary business, and the best employees you can hire will be ordinary.” So I looked at management and leadership as separate strategies. Management is competent, productive employees. And leadership is passionate, focused people.

One-on-one meetings are an important part of management in my business. I manage 9 companies, and before the pandemic, I only worked 2 days a week – Tuesdays and Wednesdays from 9 to 3. My management and leadership system allowed me to work efficiently and save time.

We have two meetings a week with the team. All of my companies have a rule that on Fridays each employee makes a list of what they will be doing tomorrow and the next week. This allows them to manage their time. And I, in turn, see what they do on a day to day basis. All employees write down what they will be doing tomorrow, take a picture of the sheet, and send it to their supervisor.

On Fridays, the team makes a list of what they will be doing the next week. On Monday, the supervisor goes over each employee’s completed list with the team. It’s that kind of communication to see who’s doing what and how it affects everyone else. This management approach allows me to be proactive, because management is not when you wait for someone to come to you with a problem, it’s when you know ahead of time what the problems are and successfully solve them.

In the ’90s, the “My door is always open” strategy was popular in the U.S., where people were allowed to come in with a problem at any time. This led to people not thinking for themselves-they would come in with a problem, the manager would give them the answer, they would leave and learn nothing. I think management is proactive. And when people come to you with a problem, you always have to say the same thing: “Bring it up in a meeting.

To that end, we have an additional meeting on Wednesdays that we call LION. At these meetings we discuss L (last week) – last week’s goals and objectives, I (issues) – problems that have arisen, O (opportunities for growth) – opportunities for development, N (next week) – next week’s goals.

Strategy for Business in Times of Crisis by Brad Sugarz

This is the fourth crisis that I am going through. 

It is different from the previous three. The first three were purely economic. Today’s crisis primarily affects people’s health, and then finances. It is also different in that not all businesses are affected. Approximately one third of businesses have closed, another third have found a way to change and continue to exist, and the last third are making a lot of money. 

The first thing you need to do now is to rethink your product. Your product and services can change because many can’t sell what they used to sell. I’ve seen companies completely change their product. For example, a construction company that was working with steel couldn’t operate because of some law, and they started making sports equipment, which they now sell online. 

Secondly, you have to rethink your marketing because the way you look at marketing has changed. If before the main objective was to sell your product, now it has to be about empathy, helping others, new relationships with consumers. 

The sales themselves will also change – they will slow down. This does not mean that there will be fewer sales. It means they will be slower. When people have fears and worries, they’re slower to make decisions. 

If you compare crises, I think this one will be faster in terms of down and recovery. 90 days down – 90 days up. That’s thanks to that luckier third of companies and help from the states. 

A lot of Silicon Valley companies are making more money now than they were before the pandemic. Facebook and Google ads are up. Before the pandemic the number of Zoom users was 10 million. In two weeks that number went up to 200 million. 

When there is a crisis, there are big changes in wealth. And those who are ready for it will have an advantage. My first crisis was in the early 1990s. I didn’t know what to do then, and I thought maybe if I did nothing and waited, I would survive it. That was the worst decision I ever made. 

The second time I knew I needed to do something, but I wasn’t confident enough to move fast, so I was okay with the business, but I couldn’t make it work quickly. In 2008, I was moving really fast. And in this crisis, faster than ever. I’ve changed, I’ve shifted. All of my companies continue to generate revenue. Many of them are performing better than they were before the pandemic. 

In 2008, I didn’t have the opportunity to go online. In 2008, I spent an entire year and millions of dollars traveling and teaching people how to adapt to the crisis. During that time, I impacted about 100,000 people. In this crisis, I’ve already spoken to 450,000 business owners in 5 weeks. And now I’m doing training in Russia, Turkey, Vietnam – everywhere. And all thanks to Zoom. 

We have to understand that everything has changed, and nothing will ever be the same again. In our restaurant, which is closed now, we changed all our doors to automatic, because people don’t want to touch what everyone else is touching. We changed the menu to QR-code which can be scanned with the phone and you can look through all the menus instead of touching the paper ones that have been on many people’s hands. The reason for all this is that people’s mindsets have changed. And that needs to be understood. How leverage has affected Apple

There are four blocks to any strategy: leverage, scalability, marketability, and opportunity. My definition of leverage is do your thing once and make a steady profit. Scalability – the next sale costs less and is easier to make. These two blocks together create a particular business model. It could be a rental model, or a franchise, or a license – something that allows you to grow faster. Many companies are not based on strategy, but on product or service. And that’s the worst choice for a business. 

When Apple and Microsoft were first founded, Microsoft started with leverage and Apple didn’t. Apple was a manufacturer. They created the computer and sold it. Whereas Microsoft created software and sold it a million times. As a manufacturer, anything you produce, you can sell once. It’s different with software. 

Microsoft went further, they didn’t just sell the product, they started selling the license. And then what happened: Bill Gates became the richest man, and Steve Jobs was fired from his own company. It was all because of leverage. Well, and other things, but it was one of the important reasons from a financial point of view. 

When Steve Jobs left Apple, he bought Pixar and made it into a big movie studio. And here’s what he learned: he could make a movie once – and sell it indefinitely. And when Jobs came back to Apple, he started using leverage. Of course, he developed other management skills, but primarily leverage. Using this approach, he created the music business.

But Jobs was smarter than that, he didn’t just create a product and sell it many times – he did nothing and still made money. Why, the iPod was invented by Sony. iTunes was created by Napster. Steve Jobs just combined them and created an amazing product. What’s more, they never created music. All they do now is get 30 cents on the dollar for every song sold on iTunes. Then people wanted to buy apps and games from the App Store. And Apple created the iPhone. People wanted to watch TV on their phones – Apple created the iPad.And they sold more and more and more. 

When other companies like Spotify and others got into the music business, they put in a subscription system, and Apple started losing ground. Apple couldn’t charge for monthly subscriptions like other companies because the music companies didn’t want to give Apple more money, because they had already lost a lot of money before that. 

Then Apple bought out Beats, a company that made headphones. They paid $3 billion, and people thought they were crazy. But they weren’t paying for the headphones, they were paying for the contract that Beats had with the music companies.  

And so now Apple isn’t just selling songs, they’re selling monthly subscriptions. And not just for music, but also for television programs and movies. And now we see that Disney has started to do the same thing. Youtube has started to do the same thing. All of these companies have moved to leverage.

Similar articles

News

View all

CHECKLIST of Apple, Google, Facebook processes

Modern corporations have abandoned management to come to leadership. Management - you hire people to set tasks for them and control the execution. Leadership - you gather people for an idea, with whom you formulate goals and, instead of monitoring execution, you are engaged in freeing the team's paths from obstacles, most often in communications with other departments. Management - puts on positions, writes instructions, where a hierarchy of positions arises. LEADERSHIP- management at the level of interest for the joint achievement of goals, in order to develop first and second, to make money, where a hierarchy of goals arises, for which leaders take responsibility In other words, the leader manages through the mission, vision, principles of the organization, so that the team within internal agreements achieves its goals I digitized the most relevant processes at the start of the transformation of organizations, turned them into a mind map, which can be downloaded from the link in my profile @malikone In fact, here are the main points: Mission, vision principles and communication processes to the teamTeam - how do we find people like us, whom do we hire, adapt?Goals - how we set goals so that they are transparent at all levelsCommunication - how we conduct daily meetings, retrospectives, what channels we use, as task books, automationDevelopment - what processes help us understand who gets the promotion for what? So that the best find development inside, and not leave to look for a place for development on the sideOne-on-one meetings - the process of meetings every two weeks between the leader and team members, in order to sort out current goals, any other questions from personal life - is carried out in a coaching...

Read

OKR

OKR are objectives and key results The goal is where (to what) I want to come Key results are all we need to know about how and when we plan to achieve our goal. Standard goals and metrics vs OKR Metrics and KPIs focus on past performance. OKR focus on the results of the future. Management through standard goal-setting = annual performance management Management through OKR = continuous performance management Standard goals and metrics vs OKRs Objectives and Key Results Basic principles: 1. Maximum 3-4 goals per team/employee 2. Maximum 3-5 key results for one goal 3. Formulate in a way that is understandable to other people 4. Key results should be specific, measurable, ambitious, and at the same time within the control area 5. Formulate for 3 months 6. They are put for 1 year, ideally for 3-4 months, but not for every month. We can monitor the result every month. Checklist for creating OKR — there are no more than 5 goals on my list — 3-5 key results are identified for each goal — each of the key results can be assessed in number or percentage or can be unambiguously identified as an achieved or unreached result through yes / no answers — I have enough resources, skills, and capabilities to achieve key results — I have a weekly or biweekly progress analysis scheduled on my calendar based on barbed results — my OKRs can be achieved in 3 months — at least some of my OKRs are ambitious and take me out of my comfort zone Algorithm for working with...

Read

Hiring process

Before you start, you need to register and add employees to the service: instructions Where: Catalog - category “HR and staff development” - process “Hiring. Remote interview and candidate assessment ”link to the process This process will allow the bot to independently conduct a preliminary interview with candidates, then send their responses to the team for evaluation and suggest options for further actions for the candidate. Create this process and get a link that you can send to all applicants who applied for your vacancy - using this link they will have access to the remote interview process. How to add a process: Click the “Add” button to add the process to your personal account. It will be copied to the Processes section.Click the "Go to Process" button to open its settings How to set up a process: Who will evaluate the candidate - select the employees who will evaluate the candidate after he passes the interview through the bot before the answers are sent to the decision-maker (manager, owner, HR)Candidate Evaluation Questions - Questions that the bot asks your employees to evaluate a candidate. You can edit existing questions or leave as is 3. Questions for the candidate - questions that the bot will ask the candidate. Leave existing questions or edit them 4. The decision-maker will receive the results of the candidate's survey and his assessment by other employees 5. Selecting a bot, starting date and a group for the candidate - you can leave it by default 6. Link for an invitation - you can click on it to copy and send to candidates. However, the process must be running (Run button) for the link to work How do I set up notifications about candidate replies to private messages? Open the recruitment process (tab "Processes") and click the "Notifications" button Click the "+ Add notification" icon to create a new notification, come up with a name Select an employee who will receive the interview results Check the interview questions that will be answered by this employee Click the "Add" button How do I set up notifications for candidate responses to a specific group? Create a notification and switch to the “group” tab, then press the “Find” button and follow the instructions Press the button "Check" and...

Read

Script training

Before you start, you need to register and add employees to the service: instructions Script training is hidden from the personal account of new users. To connect them, write a request to the support service The murs.ai service has a salesperson voice training system that analyzes the manager's responses to the client at different stages of sales - for compliance with scripts (speech modules). You only need to add your scripts to the system and come up with a training script through a bot, after which you can launch this process for a sales department of any size. How to add your scripts: 1. Go to the "Scripts" tab and click on the "+" sign, in the "name" field write the name of the script stage (for example, "greeting" or "objection handling") 2. In the window that opens, click "add script text" and write a script that the manager should speak when communicating with the client. If the manager uses words in the script that should change in each dialog (for example, the manager's name), then instead of this word, several spaces or "_" characters are inserted in the script, for example, "Hello _ my name is _"‎ How to create a training: 3. Go to the "Training" section, press the "+" sign and follow the further instructions. 4. When you reach the item "Training questions" - click on the line "new question" to edit it. This question will be received by your manager, to whom you will set up the training. Set the question type to “Audio” to receive only voice responses. After that, in the “Script:” field, be sure to select the reference script previously entered into the system that corresponds to this question. After each question, you can create the next one by entering it in the "next question" column according to the same principle, and then click "save" to make it appear. You can create very long workouts that include a series of scripting questions. In this example, the first message will contain a greeting and an invitation to click the "Yes!" to receive the following message prompting you to train your welcome script: 5. Specify the date and time for starting the workout, select the default bot, and set up notifications if you need them, after that, you can start the process - the manager will receive a notification about the workout at the time that you specified. Process algorithm: 1. When the manager receives a question from the bot that you configured, for example, "Imagine that the client said" expensive "to you, what will you answer to him?", Then he must answer using the script that you previously added to the service and associated with it a question. The task of the manager is to hold down the microphone icon and speak the script for working out this objection, as closely as possible matching the script in the system. 2. The manager's voice message is sent to the service, the voice is transcribed into text and the analysis of the correspondence of its contents with the reference script is carried out. As a result, the answer is evaluated on a scale from 10 to 100, where 100 is in full compliance with the script. 3. If there are several questions in the training that involve the answer with a voice message with the analysis for compliance with the script, then as a result the arithmetic mean of the compliance is calculated for all stages of the script that were used in the training 4. The arithmetic mean is formed into points and displayed to the manager in the form of a training report, for example: 5. Manager's voice messages, as well as the results of his training, can be sent to any employee of the company or in a separate chat, depending on how you decide to set up notifications 6. Additionally, the manager's response is analyzed for the presence of parasite words and stop words, for example, "Well ... I don't know ... damn it ..." if they are found, they are automatically included in the generated report View and listen to the results of managers' training for a specific period or specific...

Read

Meetings 1: 1

Before you start, you need to register and add employees to the service: instructions Where: Catalog - category “HR and staff development” - process “Meetings 1:1” How to set up a process: Add a process from the catalog Choose a mentor to conduct a meeting with your menteeDialog - opens the message builder, which already contains a template for all the questions needed for this process. Click on the first message to provide the name of the employee with whom the meeting is scheduled, and also insert a link to the document in which you collectively record the arrangements for these meetings (e.g., a google docs document) Choose the date and frequency of this processYou can leave the default bot and nameNotifications can be set upStart the...

Read

Peak Experience Exercise

What is a 'Peak Experience'? Peak experiences are joyful and energizing moments in someone's career that give the employee a sense of value and purpose. What are they needed for? The Peak Experience Exercise is a coaching tool that allows training participants to look at their own values and career experiences through introspection or self-reflection. They will then be able to assess their current situation and determine what their career path might look like. Who can host this seminar? Within the framework of the seminar, the Peak Experiences Exercise can be conducted by HR teams or managers with their teams. What is my role as a mediator? Use this guide to guide your training participants through peak experiences and help them develop their careers. Ask open-ended questions and encourage the exchange of views between participants. This will help participants discover their own values and a potential path forward. How does it work? Participants will be asked to identify 3-5 experiences in their careers when they felt they were at their "peak" and 3 experiences that they felt like failures. The most important part is thinking about your discoveries. Can the participant identify any common themes or characteristics of their experience? For example, does time matter? Do they like working in a team environment more? Have they identified specific or abstract objectives? What are peak experiences for? Peak Experiences is a coaching tool that allows training participants to self-observe or self-reflectively look at their own values and career experiences. They will then be able to assess their current situation and determine what their career path might look like. Then the participants define their core values. Participants can value everything from financial rewards to recognition. The important thing is not to judge them and to make them honest themselves. If someone is motivated by the recognition, position, and job they want, they should be able to make it happen. If they are motivated by financial rewards, they can choose a job that has a quota or bonus incentive associated with it. Finally, the practice of peak experiences forces participants to reflect on how their current role or projects meet their values and how often they reach their peak of the experience. Is there a role that naturally fits? Is there an opportunity for them to experiment multi-functionally? Download questions for conducting training on peak...

Read

Retrospective

Before you start, you need to register and add employees to the service: instructions The process helps the team to recognize achievements, plan a new work sprint and ask ourselves the question: how can we become better? It is important to use the principles of good feedback, not to criticize, but to help colleagues and the team find solutions. Where: Catalog - Project Management category - Team retrospective How to set up a process: Add a process from the catalogSelect who will participate use a ready-made question template or make changes to any of themChoose the date and frequency of the launchSelect the name of the process and bot (you can leave the default)Set notifications (optional)Start...

Read

How to increase employee engagement?

The world is currently experiencing a crisis of employee engagement, and the latest data show that only 13% of workers worldwide actually do their job in the workplace. The Gallup Organization, an American Institute of Public Opinion, has tracked employee engagement in the United States since 2000. In 2018, they noted that in the United States, engagement was only 34%. The remaining percentage of employees were categorized as “uninvolved”, who are generally satisfied with their place of work, but not emotionally connected with it; they just come to work, do the minimum, and leave the company quickly if they get the best deal. In Russia, in 2019, the Theory and Practice project published a study of the corporate training and development industry, during which 270 respondents from 237 Russian companies were interviewed. 30% of respondents said that for them the key challenge of the personnel market is the low involvement of their employees in achieving business goals. So why aren't employees involved, and what can organizational leaders do about it? After all, numerous surveys and studies show that employee engagement has a positive effect on a company’s bottom line and increases customer satisfaction. Here's what Gallup offers: Include involvement in your human capital development strategy Gallup research shows that fast-growing companies have clear goals for increasing employee engagement. These include broad and active management involvement, a communications strategy, dedicated systems that enable leaders and managers to obtain and use employee engagement data, and training and development of team members. The best approach to engaging staff is not just "start and finish." Engagement needs to be an ongoing process that works in parallel with your day-to-day business processes. Use science-based tools to measure the engagement Since the study of employee engagement began in the late 1990s, many have started offering their own tools to measure and measure it. Almost every employee survey, regardless of its purpose, is called an “engagement survey”. But few tools have been validated or peer-reviewed. As a result, many companies are trying to increase engagement by focusing on issues that do not affect employees in any way and, as a result, waste their time. Understand where the company is today and where it wants to be in the future Many companies aim to increase employee engagement in a month, a year, or two. But the capabilities of each company are different. On average, companies are advised to outline a 3-year roadmap. However, it all depends on the needs of the company. The main thing is that the goals are realistic and achievable. 4. Focus not on specific numbers, but on the process Some companies focus on changing the overall percentage of employees involved, ignoring tactical elements that drive productivity. Engagement is the result of specific performance management activities, such as clarifying work expectations, providing people with what they need to do their job, ensuring development, or working on positive communication with colleagues. 5. Make engagement on par with other workflows Engagement means investing in day-to-day work and incorporating the concepts of engagement into the workflow, even as the organization changes and takes new initiatives. When leaders prioritize new initiatives, managers must provide employees with new resources and enable them to do what they do best. Building a culture of engagement requires more than just completing annual employee surveys. This requires the company to take a close look at the critical elements of engagement that will align with the organization's performance and human capital strategy. Managers and leaders should always keep employee engagement in mind because every interaction with employees can affect their engagement and the effectiveness of the organization as a...

Read