It is time for reflection. Not only has another year begun but “the new decade” is now well on the wane. Was it really seven years ago we were celebrating the new millennium?
My first client meetings of the year gave a clear indication that I wasn’t the only one in a contemplative mood.
Two clear themes emerged: first, the need to plan. For example, when is the right time to sell/retire? How long in advance of such a change do we need to start planning? Do we need to look at management and ownership separately? The other theme was more unusual: the need to make things happen.
Given that none of my clients are too close to retirement, I feel encouraged. As with so many things, planning is everything. Such plans can realistically make much of a difference only if they cover years rather than months.
The issues of management succession and new business ownership are quite separate. While one solution might solve both issues, it often won’t. The perfect new managing director might not have the cash, or the inclination, to invest.
Equally, the ideal new owner might have no interest in a management role or might bring along a manager as a condition of the deal.
The other current theme has been equally revealing. We all like to think that our needs are transparent and can be anticipated.
Regrettably, however obvious we may think we’re being, those we expect to be listening rarely are. Even if they are, they so often get the message slightly wrong that it would have been better had they not heard it at all.
I am trying to help one client employee with such an issue. He complained about being buried in paperwork and never getting to the more critical – but less urgent – issues.
I sat down with him to see if I could spot any process improvements. After an hour or so the bombshell dropped. “I’m really bored. There is so much more value I could add if I was given a broader role,” he said.
“Have you discussed this with Mike?” I asked. “No, I’m sure he knows. He must see my frustration dealing with all these bits of paper,” came the reply.
Mike is one of the brightest people I know. There is no doubt he would be able to understand the issues being discussed – but I am equally sure he is blissfully unaware of them. Being so bright he is also not the easiest person to approach on “trivial” matters.
This is very much a British failing. Why can’t we be more open, more upfront? I have a long-standing client company run by a US citizen. One of the first pieces of advice I gave him when we met was to have a full and open dialogue with the tax authorities.
He is a natural salesman and genuinely believes that the often-promised upturn in his business is just around the corner. However, there is another key ingredient: he is upfront and asks for help.
Having taken my advice, he is in regular contact with the VAT and PAYE authorities. He clearly tells them the same credible tales of how success is close. Last time we met he told me he was going to ask for another payment plan.
He had just had to fire two of his four employees and this had cost both time and money. He told me he was sure “his friend” at HM Revenue and Customs would understand. I was sure this was going to be one request too far and told him to prepare his back-up plan.
A week or so later he told me in a quite offhand manner that the VAT man had agreed as he was sure he would. I admitted that I wouldn’t have had the cheek to ask.
These examples show that if you plan where you are going and leave no stone unturned in getting help, you might just arrive at your intended destination.