None of Us Are Without…“Untapped Surprising Options”….

By Sid Chadwick

“Man proposes: God disposes.”………………Thomas a Kempis

INTRODUCTION:

My observation has been that whenever Michael Jordan stepped onto the court of a game, players from both teams – played better.

Leadership is not the ability to control, but rather – the ability to influence.

I’m starting to see more thoughtful articles in our great industry’s publications – focused on:

1. Creating a work environment – designed to retain valued employees, long-term. Such an objective – and result – create a competitive advantage, that competition without such objectives, can not match.
2. Creating multi-year Customer Agreements – with 6-Month Rigorous Reviews, that improve the Profitability – and Value – of  both organizations.
3. Long-term conservative retirement plans are being developed, increasing a company’s work-force and leadership stability.
4. Development of a Senior Management Team – with rigorous Monthly and Quarterly Performance Reviews – that support the owner/president’s move to the CEO position – for personal time away from the company – that’s needed, deserved….and…. requested by the developing Senior Management Team.  

Primary benefits of these trends - are multiple:

1. Preservation of an organization’s culture, value, and service to customers, employees and suppliers. The company becomes more stable, more valuable – long-term, to its constituencies.
2. Stability and reliability of improving supply – to customers – and suppliers.
3. Escaping the predatory fleecing of ownership by Private Equity, where two-to-three years after the ink has dried, valuable employees are gone, valuable customers have found new suppliers – where they are again valued, and the respected name of an organization that used to be – is not to be found.  

SUMMARY:

Mark Hahn, in a recent Target Report, observed that for the 1^st time in well over a decade, his organization’s analysis recorded more firms from outside our industry investing in acquisitions in our great industry – than were occurring from within our great industry – representing a definitive inflexion point – toward a more stable future.

In our CEO Peer Group, we believe we see dramatic changes evolving:

1. Younger senior management teams are appearing – and taking-on dramatic new risks.
2. Experienced, seasoned senior managers are being hired as replacement presidents, by the owner, who loves his company, wants more personal time, and is extending both health and his/her legacy.
3. Owners privately planning for a Private Equity transaction – are having private second thoughts.
4. Current presidents are privately recognizing….there isn’t anything they want to be connected to outside their company – long-term, which has a profound effect on their thinking, their decisions, and how they might have a long, healthy life.

“You only live once – but if you work it right, once is enough.”….Joe E. Lewis