The planning meeting

At the chalet (below): From left -- Mark Buckshon, North Carolina publisher Bob Kruhm, (standing) editor Matt Desrosiers and writer Johnathan Monk, (sitting) administrative co-ordinator Amanda Arthurs, Ottawa/Eastern Ontario representative Cindy Pilgrim, senior publisher Chase (from St. Catharines, Ontario)), Northern Ontario publisher Leslie Greenwood (from Sault Ste. Marie), designer Raymond Levielle and accounting co-ordinator Sherri Herriot. In the picture at right are consultants Bill Caswell and Upkar Bikhu of Caswell Corporate Coaching Company.

We've returned from a couple of days of intensive meetings at a remote lakeside chalet in West Quebec. Day 1 (Monday), most of the company's employees and key contractors gathered to review progress and set out the plan for 2009. Day 2 (yesterday) our sales team assembled for a brief but vital meeting where we assessed company practices and priorities, and set into motion several new initiatives.

Perhaps the most impressive quality of the meeting -- outside of the good-will and co-operation among employees -- is that we concluded next year will turn out rather well for the business, despite the scary economic news. (We were insulated on Monday from that day's stock market declines; fortunately mostly recovered by Tuesday).


Our optimism is not carelessly based; undoubtedly a serious contraction will affect the construction industry and its allied architectural and engineering professions. Many major projects are on hold, financing is truly difficult to obtain, and the residential construction industry still needs to absorb all the bad mortgages and housing inventory built when it seemed anyone could sign the contract and 'own' their own home (regardless of credit capacity.)
But we saw a silver lining in all of these problems. Surviving construction businesses will want to maintain and preserve their relationships, and will find value in working with us, because we focus on building connections, links, and respecting these relationships. (Advertisers here are always treated with respect: this blog, started as a client service initiative, for example, has grown to a higher level.)

Of course this business plan is not built on dumb hope -- costs and expenses can closely be monitored to see if they match revenues, and if a course adjustment is needed, we'll make it. We'll stick to our guns in geographical expansion: The issue is less the location than the person who works with us -- the hiring standards will remain high, and careful evaluation is essential before putting anyone to work here.

Impressively, employees suggested a few new revenue sources and some areas where prices could be increased without compromising relationships -- while enhancing service value. And we received mandates to pursue some new projects and initiatives (which I will report on in the weeks ahead).

If you haven't found a way to integrate your employees into the business planning process, or (even more seriously) you don't have a formal planning system and procedures, take a minute to consider the cost of this ad-hockery. No one is suggesting the world will follow exactly according to plan, but with the plan in hand you can see where diversions and distractions are interfering with progress, and define and capture opportunities when they arise. You need to do this, especially in the current challenging business environment.

A lasting solution

We set up a meeting/business planning process with Bill Caswell of Caswell Corporate Coaching Company. You should have a similar system in place if you want your business to survive hard as well as good times.

In my last post, I suggested some possible quick fixes if your business is caught in a sudden downdraft and you are in crisis. However, over the last few years (and my survival of a business crisis/decline more of my own making than the economies), I learned that quick fixes often don't work, are dangerous, and mask real problems and solutions. (I sought to suggest ideas that are safe and proven, of course, but many emergency fixes aren't so good.)

To achieve a longer range solution, you need to redesign your business systematically to combine consistent standards and an organized process to integrate/develop your employees' talents, foster loyalty and "pull up your socks" effort, and adapt in an organized manner to changing circumstances.

I've reviewed dozens of successful businesses and they all have a couple of things in common:

• Employees have a stake in the business; not just superficial ownership, but a real sense they belong. They are often more skilled at their respective crafts/responsibilities than their supervisors but respect their bosses as they enjoy their own work and career progress.


• The business has a disciplined and organized planning and "change management" system usually involving regular weekly meetings and bi-annual serious planning and integration efforts. Note this is not the bureaucratic "endless meeting" ritual that many governments and large companies observe -- our meetings are disciplined, short (regular meetings are never more than an hour) and encourage participation from everyone involved.

I cannot overstate the importance of building these processes into your business even though superficially, there are significant costs. After all, when your employees are meeting, you aren't working with clients or doing the actual work. So, in our business, the weekly sales meeting time is deliberately set for later in the afternoon late in the week, when few people are buying anyways. Our general weekly meetings (at 1:30 pm on Mondays) are designed to accommodate every one's schedule and allow for time zone issues as the business grows.

The bi-annual planning and budgeting sessions are more expensive and challenging because they require everyone to be at one location -- and that really increases travel and accommodation costs. Although we are still now a small business, we needed this year to buy plane tickets and find hotel accommodation for three key employees for our April planning session. I found relatively inexpensive plane tickets and accommodation in a comfortable but not-to-expensive hotel, but travel costs alone are going to be more than $2,000.

But that isn't the only expense.

We need a meeting facilitator and in my opinion, these meetings cannot be chaired/managed from within the business. The consultants are not inexpensive but are worth every penny. We use Caswell Corporate Coaching Company, but you may find your own consultants and advisers closer to home.

How important is all this stuff? It is vital -- to nip potential issues in the bud, resolve concerns and find answers. You'll often find short term solutions with lasting value are discovered at these meetings. For example, at a planning session two years ago, an employee suggested we review and sell our directory listings more effectively. We found a 'quick fix' with about $20,000 in revenue -- and best of all, this is a recurring revenue stream that does not require a dedicated salesperson to maintain. (Our administrative employee handles this responsibility -- and collects a truly satisfying top up bonus for her salary for her work on the project.)

If you haven't systematized this meeting/planning process, I recommend you make it one of your quick fixes -- it will become the basis of a permanent solution to your challenges. The biggest challenge, I think, will be finding your facilitator and consultant -- I had good luck with Bill Caswell, but you will find the options are hit and miss, otherwise (but especially if you are in the residential field, you might want to consider Michael Stone, or if you are an AEC professional practice, try Bernie Siben.)

P.S. You'll want to read Michael Stone's latest blog entry, especially if you are a general or specialty trade contractor facing payment problems within your community -- the nonsense he describes, alas, is a trait of a recession and screw ups and dishonesty unfortunately become glaringly apparent in hard times. I'll discuss these issues in the next blog entry.

Business planning

Yesterday, we spent the day at our annual planning meeting. This meeting is traditionally associated with much larger businesses -- most organizations our size would wonder why such expensive retreats are essential. But I know now how important the exercise is -- it is the beginning of the evolution of the business into a truly substantive and effective (and much larger) enterprise.

While the meeting discussions are confidential -- it rarely makes sense to broadcast your plans to current and potential competitors! -- we agreed that an accelerated growth strategy is indeed viable, especially since it is based on fundamental and measurable principals, within a large area. We won't compromise our standards. In our case, the cliche "the business is defined by the quality of the people working in it" will define and determine our growth plans.

Most impressively, our employees discussed 'side projects' outside the meeting agenda -- initiatives showing teamwork, co-operation and idea-sharing.

I think many who would benefit the most from this type of structured meeting would see it as a consultants' cash grab, or the stuff only "big businesses" with big bureaucracies require. They are missing the point. If you are to grow your business successfully, you need to have a solid and manageable plan -- and planning system -- and effective resources to both attract and engage your employees.

We use Caswell Corporate Coaching Company in Ottawa for our planning meetings; you may find consultants and facilitators of similar value in your area. If you are looking for referrals for similar services, you can seek referrals from your key larger clients, check with your specialty trade organization or group, or use your business network.

Our budget/business plan includes two meetings annually; the annual planning and budget meeting and a mid-year review.

Today, I'm flying to Toronto and driving to Niagara College in St. Catharines Ontario to work on a feature profile for the upcoming issue of Ontario Construction Report.

The annual planning meeting

This week on Wednesday, we'll have our annual planning meeting. The October meeting, coupled with another review meeting in the spring, are now cornerstones of our business operations even though they tie up resources and cost significant amounts of money. I used to think these planning sessions were airy-fairy bs -- time wasters from the real stuff of doing business. My views have shifted, especially since I see the planning sessions are elements of many of the world's most successful businesses.

The benefits of solid and well-organized planning meetings include:

1. All key staff (and at this point in our business growth, that is in fact ALL staff) have the opportunity to participate, contribute, question, and 'own' the plan -- we don't force something down their throats.
2. The plan gives us solid guideposts and measurement tools; coupled with accountability and responsibility. Of course circumstances almost inevitably require deviations from the plan, but we can defer radical innovations and ideas, and explore them closely at the meeting.
3. With our diverse geography, we can bring everyone together and cross-fertilize ideas and initiatives.

I think it wisest to contract with qualified facilitators to organize these planning meetings, at least until your business is large enough that you have in-house staff who can specialize in this kind of work. Bill Caswell of Caswell Corporate Coaching Company advocates these ground rules:

• You should keep an entire day clear; avoiding distractions and outside interruptions (outside of specifically scheduled breaks);
• Food and refreshments should be available on-site to allow meeting without worrying about the necessities of life;
• The meeting should have a clear agenda, and processes, with a specific outcome (in our case, consensus on the business plan for the next year);
• Basic principals of respect and communication should be followed to prevent domination of the meeting by 'loud' individuals; and to encourage participation by quieter people.
• Clear documentation and written reports should be prepared after the meeting to give everyone the insights and measuring tools for the future.

If your business does not have a regular annual or twice-yearly planning schedule, you should find a qualified facilitator and implement the system -- you will soon find that rather than being a 'waste of time' it is one of your most valuable uses of your time.

The planning meeting

Within a few hours, we'll be at a chalet in Chelsea, Quebec, for our second strategic planning meeting. Ironically, and significantly, in addition to the facilitators, I am the only person attending the meeting who was with our business last year. And, in reviewing last year's plan, I find that almost nothing in it has materialized as projected. In other words, the plan developed at the meeting truly did not accurately project the future.

Yet I have grown to appreciate the importance of this meeting/planning process, and now truly believe that we would not have experienced the business crisis experienced over the previous three years if we had this kind of systematic planning meeting. The reason: setting out guidelines, expectations, and projections -- and getting people involved in the business to buy into the process, is vital for its survival.

Last year, we were on a 'death spiral' with distrust, frustration, hostility, and negativity -- and all of these negative vibes came through loud and clear at the meeting. A few months later, everyone had left. Our business rebuilding coincided with this blog's launch.

Nevertheless, as we began rebuilding, I had some hesitations about holding another planning session. While the consultants co-ordinating the program have offered generous financial terms, the meeting's bottom-line cost is high, considering our current operating budget. But I quickly realized that we need to, right now, establish a cohesive and realistic vision for the business -- especially if it is to achieve its ambitious future objectives.

The planning session is co-odinated by Bill Caswell of Caswell Corporate Coaching Company.