Where do you spend your time?

Most businesses are started by aspiring owners who only understand the technical side of their business. Those owners think all they need to know about business is that technical side. Wrong. That is why 80% of small business does not make it past 5 years of operations.

There is a huge distinct difference between "the business" and the "technical side" of the business. The business as a whole is the product not the services or things the business outputs. That is why good companies get "blue sky" when they sell rather than just asset based price.

If you are one of those business owners that only do the technical work, you really are not a business owner; you just have a job.

E-Myth and Micheal Gerber have a great principle called "Working On Your Business, Not In It." A good business creates a model that can run effectively and profitably without any one person. So what should you be doing?

• Owners should create the vision and establish the values and behaviors of the company. In addition, the owner should set the strategy to win for the company and communicate it to the entire organization. Good owners also are involved in the people process to ensure the right people are on your bus.

• Managers should be getting the results through others. This includes systems development, supervising, training, hiring, recruiting, and the orchestration of others.

• Technical work is the hands-on direct work of producing products or services.

Here is a guide for what you should be working on:

1. CEO should be 90% on entrepreneurial work, 10% managerial work.
2. Managers should be 20% entrepreneurial work, 75% managerial work, 5% technical work.
3. Employees should be 5% managerial work, 95% technical work.

Make sure you are working On your business and not In your business.

Values need to include behaviors; make them real!

Most companies have a mission statement and then a set a values with it. They are hung on a nice plaque in the lobby and then on occasion, dusted off and brought before the employees. The employees giggle to themselves and then everyone goes back to "real work" where everything is forgotten. These values need discussion.
Often these values are generic, vague, and cryptic. Examples include: ABC company believes in good customer service or 123 company values quality in our products. No kidding. Tell me a company that does not want good customer service and quality products. Then the company wonders why its employees are cynical and have no enthusiasm.
The solution: the values must include desired behaviors. They are very specific, crystal clear, and leave little doubts as to what is how the company operates.
Bank One has a five page singled spaced document outlining all values and corresponding accepted behaviors. Example is "We treat customers the way we would want to be treated". Most companies would stop there. Don't! Keep going as Bank One did and list the detailed behaviors expected. In Bank One's case on the value of treating customers are you would want to be treated, here are some behaviors:

• Always look for ways to make it easier to do business with us.
• Don't forget to say thank you.
• Never let a profit center get in the way of doing what is right for the customer.

Then once you have clear values and behaviors, it only works if you reward people that follow them and there are consequences for those that don't.

Don't be a company that has values which are just a bunch of noise. Have values and specific behaviors that actually mean something. Once done, your employees come alive and your company will take a huge step in achieving full potential.