Managers – Are you paying enough attention? 4

Lessons from the Worst-Performing Companies in America
What’s caused U.S. firms to lose the most shareholder value in the last 10 years? A new Booz study — actually, a repeat of one it did in 2004 — once again came up with the same result

As I read this article, my mind flashed back to my years with Best Products Co. Inc. I had joined them right out of college. I was hired as an entry level Department Manager, but within a year I was a Store Manager for the company. I managed seven stores in as many years, moving frequently for the company.

After arriving in Hampton, Virginia, there was talk among our Senior VP’s of my taking on a District Manager role. Life was great and the possibilities limit-less. Then we bought Modern Merchandising.

We went from a one billion dollar company to a two billion dollar company over night. Everyone was very excited. In fact, we even had T-shirts made.  And our Senior Management spent the next twelve months assimilating the acquisition into the company.

We changed the names on our buildings; out with Dolgins, Miller Sales and the rest, in with the Best Products logo’s. We consolidated distribution centers, creating new efficiencies and re-aligned regional support offices.

The entire process took 12 months. And then we were ready.

But in the past twelve months, retail customers had gone off in a new direction. We had been so busy focusing on the acquisition and re-structuring that no one noticed our customer base was  leaving.

When I saw the hand writing on the wall, I left , purchasing the vending company I would sell two years later.

Every time I think things are running really well in my business I have a  flash back to my Best Products days. The lesson I learned then has stuck with me for over 25 years. So please, pay attention to your business.  

Did you go far enough? 3

Will you go far enough to find the gold?Have you ever had trouble locating something or have a problem you couldn’t solve?

When this happens: 1. You can try to figure it out or locate it yourself 2. You can ask someone else to find it or solve the problem for you or 3. You can just give up.

Yesterday I overheard a man talking to his wife in the supermarket. He couldn’t find the brussel sprouts. She took him further down the aisle and there they were. I heard him say to her, “I didn’t go far enough”.

If you are looking for brussel sprouts at the supermarket, it’s not the end of the world if you don’t find them. Not going far enough only means you may have creamed corn for dinner instead. But what if it’s your business we are talking about?

What if you have invested your life savings along with the savings of your relatives. What if you have purchased drilling and mining equipment valued at a million dollars to excavate a gold mine? Now what if you can’t find gold?

During the 1848 California Gold Rush, this happened many times. One claim in particular was talked about by Napoleon Hill. The story was of a man who had purchased a claim and had found a very large seam of gold. He had mortgaged everything and borrowed from his relatives to mine the claim. After a few weeks, the “mother lode” went dry. No more gold. What did he do? He sold his equipment to a junk dealer for 10 cents on the dollar and went home. He didn’t go far enough.

The junk dealer hired a surveyor. The surveyor went to the mine and told the junk dealer, “dig ahead a few more feet and you will find the seam again”. The junk dealer did that and found one of the richest gold mines in California.

Whether shopping for vegetables for dinner or running a business, make sure you go far enough. Don’t settle for creamed corn when you have your heart set on brussel sprouts. And never, ever give up your business or your dreams before you have gone far enough. Because, during the act of going far enough, you will almost always find your answer.

The junk dealer learned that in 1848. And because his wife went a little farther, the man I saw in the supermarket yesterday learned it too.