Middle Market Methods™ writes a quarterly value-creation article for clients, stakeholders, and networking friends. The content aims best practices at common middle market portfolio companies’ experiences. If you wish to be included in the quarterly article e-mails, please send us an email info@middlemarketmethods.com.
CHANGE-MANAGEMENT OR CHANGE MANAGEMENT?: Q1, 2024
Change is inevitable. The ability to effectively navigate change is a leadership imperative. In Stephen Covey parlance, this saw always needs sharpening.
THE “IT” FACTOR: Q4, 2023
The “it” factor entails indispensable skills in special circumstances. A typical company unknowingly has employees with such latent talent. Leaders have some simple tactics at their disposal to know the identities of these gems in waiting.
THE VIRTUES OF COST ACCOUNTING: Q3, 2023
Cost accounting integrity is essential to business model stewardship, and perhaps deserves more attention. Good rigor is rooted in assumptions for key variables. The consequences include, but are not limited to, forecasting, dynamic managerial information, and profitability. This article installment offers some points to ponder.
ZEN & THE ART OF WEEKEND WARRIOR DIY MAINTENANCE: Q2, 2023
Trades people are essential to a vibrant workforce. People who get too far removed from their contributions risk losing perspective on practical problem solving. This is both an homage to blue collars and an admonition to white collars on the virtues of dirt and grease stains.
WHAT IS VALUE-CREATION? Q1, 2023
Ubiquitous terms lose their impact with target audiences when their definitions are assumed to be understood. Moreover, the “Why?” rationale should be part of effective communication. To wit, the objective of value-creation is enterprise value.
WHAT KEEPS YOU UP AT NIGHT?: Q4, 2022
An emerging nuisance today left unattended may lead to a crisis tomorrow. Sometimes our subconscious mind may be paying better attention to these issues than our conscious mind. This article identifies insomnia as a potential leading indicator of something which should be elevated to the stakeholder discussion table.
VISUAL FLIGHT RULES VS. INSTRUMENT FLIGHT RULES: HOW ARE YOU PILOTING YOUR BUSINESS?: Q3, 2022
This article metaphorically borrows from aviation to scrutinize both the right questions about our strategic flight plans and the right cockpit metrics for grading our flights. Much like weather reports before, and radar during flights, we should have confidence in leading indicators and process metrics for midcourse corrections in order to accomplish a predictably smooth EBITDA landing.
AGRICULTURE: AN HISTORICAL PRODUCTIVITY BENCHMARK OF CONTEMPORARY NECESSITY: Q2, 2022
Productivity is essential to a globally competitive country. Any business can benchmark within verticals, across vertical, and beyond borders for innovative productivity ideas. While we rationalizing global outsourcing of portions of both supply and value chains, we must consider disruptions. This article features U.S. agribusiness as posterchild of evolutionary productivity.
WHAT MIGHT WILL ROGERS THINK OF CUSTOMER SERVICE?: Q1, 2022
Humorist Will Rogers imparted, “Everything is funny, as long as it's happening to somebody else.” When customers experience failed vendor value-propositions, the elixir is expedient remediation. Do your execution and customer feedback mechanisms insulate you from risk analogous to the examples shared in this installment? Assumptions may be dangerously unreliable.
LEADERSHIP VS. MANAGEMENT: Q4, 2021
Successful stewardship of a lower middle market portfolio company relies on the appropriate blends of leadership and management relative to situational circumstances by all functional areas. This starts with the CEO. Requisite hold period value-creation commonly requires governance modifications to accomplish robust scalability, including and especially empowered delegation. If the incumbent CEO cannot adapt, succession is the logical response. This article shares relevant points and pitfalls.
THE NEW LABOR NORMAL: Q3, 2021
GAAP may not be well suited for calculating the true cost of turnover. The impact is systemic and correlated with material variables like productivity, quality, customer satisfaction, and cultural morale. A shortcut for quantifying turnover impact is Keynesian economics’ multiplier effect. Perhaps an enlightened perspective on opportunity cost may stimulate critical thinking toward sustainable solutions.
WHO’S MINDING THE STORE?: Q2, 2021
Leadership replacement and succession differ primarily by timing. Both depend on deliberate preparation. Neophytic stewards have poor success rates. The odyssey begins with critical thinking about leadership requirements for traversing from present state to desired future state.
IS WHAT I THINK I SAID WHAT YOU THOUGHT YOU HEARD?: Q1, 2021
Assumptions about effective communications are problematic. Clarity, concision, context, intonation, inflection, media choices, bias, stress, and repetition are all relevant variables. Eschewing preparation and proactive posture may foretell time consuming missteps and incomplete recovery.
BRING ON THE NEW YEAR—AND PLEASE HURRY!: Q4, 2020
Aggressive entrepreneurs may look upon turbulent markets as opportunities. While some businesses may be licking their wounds, others may be licking their chops. This installment offers some practical thoughts on improving both share of wallet for existing customers and share of market through new customers.
LESSONS LEARNED FROM A PANDEMIC: Q3, 2020
Military strategists warn against planning for the last war. Whereas the pandemic may have surprised business leaders to unanticipated value chain risk to which mitigating reactions were necessary, perhaps a more important issue is how should we routinely examine our business models for vulnerabilities to new and unanticipated risks.
CONTINUOUSLY SHARPENING YOUR PERSONAL SAW: Q2, 2020
The half-life of differentiable knowledge is short. Accordingly, Stephen Covey encouraged us to sharpen our mental saws. A useful business bookshelf might include some of the volumes shared in this article.
THE ROLE OF A BOARD OF DIRECTORS FOR LOWER MIDDLE MARKET PORTOFOLIO COMPANIES: Q1, 2020
A good board is a strategic steward. Board agendas should reflect this priority.
MANNERS MATTER: Q4, 2019
We used to take good manners for granted. Now, good manners may be competitively differentiable. Even better, good manners are easily mastered.
AN ODE TO GEORGE (AND OTHER MONUMENTAL MAMMALS): Q3, 2019
Role models, wisdom, and life lessons emanate from many sources. Are we paying attention to these gifts?
QUESTIONS THAT MATTER TO VALUE-CREATION: Q2, 2019
A thoughtful, open-ended question posed to an entrepreneur could be the gateway to a value-creation treasure trove. Three candidates are offered.
TALES FROM THE CUSTOMER SERVICE CRYPT: Q1, 2019
Customer service—and disservice—profoundly impact brand equity.
THE WISDOM IN ACCULTURATING A PROJECT MANAGEMENT OFFICE: Q4, 2018
Companies whose value proposition is project management should institutionalize scalable governance.
AN OLDIE, BUT A GOODIE, VALUE-CREATION TOOL: Q3, 2018
Effective problem-solving tools are ageless--and often surprisingly simple.
THE MOST DIFFICULT TYPE OF DEAL DILIGENCE: Q2, 2018
Practical alternatives are available for the important subject of leadership diligence.
DESIGNING AN ORGANIZATION FOR SCALE: Q1, 2018
Organizations must modify their structure and governance in order to scale.
A TALE OF TWO INTEGRATIONS: Q4, 2017
Integrations are a common growth strategy. Experience is scare; yet, best practices abound.
THE CUSTOMERS' DEFINITION OF CUSTOMER SERVICE: Q3, 2017
Customer service is defined by what vendors do, not what vendors say.
THE SIMPLIFICATION OF STRATEGY: Q2, 2017
Value-creation correlates strongly with laser-focus on the “vital few.” A roadmap helps.
OF CORPORATE CULTURE AND CAPITALISM: Q1, 2017
All companies have a culture. The question is whether corporate culture enables or impedes value-creation
BIG DATA FOR SMALL BUSINESS: Q4, 2013
Big data is the non-negotiable new frontier. Small business may capitalize on big data principles more effectively than they may fathom.
OLD "DAWG." NEW TRICKS.: Q3, 2013
Effectiveness is rooted in applied knowledge that suffers a half-life. Continuous learning is the only hedge for differentiation. Here’s my story.
THE LEGACY EFFECT: Q2, 2013
Turn the business into a talent magnet that runs smoothly sans the boss.
CAVEAT VENDITOR: Q1, 2013
Differentiate your business model with trained sales professionals who identify and provide customer solutions.
LIKE, THINK ABOUT TRYING–ASAP. OKAY?: Q4, 2012
Content and style brand the communicator.
NEXT YEAR AND BEYOND: Q3, 2012
Foresight guides effective strategic planning.
CHANGE MANAGEMENT BY METAPHOR: LIFE IN THE 100 ACRE WOOD: Q2, 2012
Metaphors and models are useful change management tools.
IMPROVISE, ADAPT AND OVERCOME: Q1, 2012
Clear strategic intent will accommodate necessary tactical modifications.
VALUE DESTRUCTION–CUSTOMER DISSERVICE: Q4, 2011
Bad customer service may eviscerate good sales.
PRIVATE EQUITY LEARNING CULTURES–POST MORTEMS AND DELIBERATE PRACTICE: Q3, 2011
Continuous learning is a world class cultural trait.
THE FOUR HORSEMEN OF THE DEAL TEAM APOCALYPSE: Q2, 2011
Avoidable bad habits can hinder value creation.
THE BOWTIE EFFECT: Q1, 2011
Imitating the right stuff is the most gratifying form of flattery.
VALUE CREATION ROADMAP–100 DAY PLANS VS. STRATEGIC PLANS: Q4, 2010
The right post-close activity sets the tone for the hold period.