Tag: Business Management

Everything related to managing a business from complex studies to simple observations by Jeremy Larochelle

Ask Questions – You May Uncover More Than the Answers

Jeremy Larochelle

 

 

I have a new employee who is doing a wonderful job picking up all the nuances of advancing music talent for a cruise ship, which if you don’t know, can be quite intimidating. This is because, in addition to the regular parts of advancing a band for the stage, we also have to deal with the complex intricacies of moving talent around the planet. We constantly navigate the challenges of passports, visas, and the border agents of multiple sovereign nations. If that isn’t enough, we have to follow the rules and document policies set forth by the vessel to make sure our talent can board without issue. In short, it is a lot to learn… especially for someone brand new so it is no surprise that my new employee has a LOT of questions.

 

About a week into our time together, she began apologizing for all her inquiries. She was relieved that I didn’t consider her questions an imposition and quite surprised that I saw them as a blessing in disguise. You see, I (and most of my team) have been on auto-pilot for the past year or so. We have fallen into a nice groove and business has been operating rather smoothly. It wasn’t until our newbie started asking questions that I realized things weren’t operating as smoothly as we thought. Her questions poked holes in our processes. They revealed areas of opportunity to tighten up our operations, streamline our workflow, and make our lives easier in the long run. I went on to explain that with her being new to the game. It gave us an “in” to ask questions across the various departments with which we collaborate. If I, someone with four years in the company, ask a question. I would likely get a less in-depth answer from the recipient. Similarly, if I, a leader in the company, asked a coordinator a question. That person may be hesitant to give me the real story of how things go down “in the trenches.”  Now, if a new person reaches out to those same individuals. They will likely get much more elaborate answers because people love to help. They may also get more truthful answers about how the process is “actually” being done. Both of these responses help us find gaps in our process and are perhaps more valuable than the question itself.

 

One of the greatest minds to ever walk the planet – Marcus Aurelius explained in Meditations. There is nothing so bad that we can’t make some good out of it. We can treat every problem as an opportunity to practice virtue.  While he was focused more on doing the right thing when faced with challenges, the lesson can also be applied to many of life’s everyday moments including one where a new employee is trying to learn their job. Sure, they are facing the “problem” of learning how business is handled but they also hold the “opportunity” to turn that same problem into a grand benefit for the collective whole of the company.

 

So, “YES!”  Ask questions. Not only do you learn by getting your questions answered. The educator is forced to explain the process and in doing so. They will likely learn something as well.

 

 

Micromanagers Kill the Future of a Company

Jeremy Larochelle

 

Micromanaging is one of those business buzzwords. I would say we collectively agree it is a bad thing. Ask anyone if they are a micromanager and they will likely say “Not me.” Yet, the internet is loaded with article after article on the subject mostly focused on how it impacts the employee… but what about the leader?  Is micromanaging bad for the ones engaging in micromanagement?

 

The short answer is “yes.”

 

I have worked under my fair share of micromanagers and non-microleaders alike. Theoretically, I researched a pile of case studies in Grad school on companies that failed due to the phenomenon. So, today. I want to explain why this practice is also terrible for the leader. To help illustrate this point, I would like to share the infamous four quadrants from Stephen Covey’s The 7 Habits of Highly Effective People – an awesome read any business-minded person should digest.

 

Stephen Covey Quadrants from his book The 7 Habits of Highly Effective People

 

If you are a leader, you want to live in Quadrant Two (or as I tell my team “I live in the future.”) This isn’t an excuse to get out of the daily grind of work so you can daydream about where the company will go and how rich it will make you. No… no… this is the key to long-term success. To illustrate, let’s say it is only me (the awesome leader) and my employees.  We both know we do not want to exist in Q4. We also know that Q3 is a cost of doing business in any work environment where there are distractions galore (have you used Slack?) so we accept it but try to mitigate living there as much as we can. My goal as the leader is to exist in Q4 and I want my employee to exist, as much as possible, in Q3. With that, we create a nice Venn Diagram.

 

Leadership Venn Diagram Using The Four Quadrants.

 

 

With this, we see that the employee is living in the “present” and I am living in the “future.” The overlap represents how we combine to propel the organization forward. I lean into the present to support my employee, learn from their pain points, and capture what they do well. My employee leans into the future to help me establish long-term solutions to our collective challenges. If we maintain this relationship, we will ultimately chip away at many of the issues that create crises and pressing problems in the short term and as such we will see fewer and fewer daily fires over time. This will free up the employee to take on more beneficial work for the company while also allowing the leader more time to focus on big-picture items like capital acquisition, strategy, and partnership building. All items that grow businesses exponentially.

 

Here’s the kicker. This rarely can be done if the leader is a micromanager because when you micromanage. You choose to live in Q3 with your employee. You have abandoned the long view of the business and this creates a snowball problem. Those daily fires continue to burn because nobody is focusing on how to extinguish them at the source. The leader now has less time to focus on the future and finds themself setting up camp in Q3 to solve these daily problems. Likely asking themselves why their employee can’t get it right. The immediate problems persist, but now, with the leader evicted from Q4, the macro-strategy of the business begins to suffer and before too long it is left with both long-term and short-term problems and a future in jeopardy.

 

?

 

 

 

 

What’s Your Baseline?

Jeremy Larochelle

 

Have you ever had someone tell you something is a “good investment?”  It could have been a salesperson trying to sell you a new piece of machinery; a broker presenting a new stock;  a business partner serving up a new opportunity, or that new condo your spouse found.

 

But, how do you “really” know it is a good investment?

 

While the complexity of the answer is dependent on the level of investment, your risk tolerance, and other external factors. The solution boils down to two fundamentals. Your forecast of that return and the baseline from which you are making your analysis.

 

Today, I want to focus on the baseline as I plan to tackle the concept of forecasting in detail in subsequent posts.

 

Time and money are not infinite. This is economics 101. If you choose to spend either on one item. You take the same amount away from something else. E.g. if you have $1 in your pocket and purchase a soda for $1. You cannot purchase that $1 bag of chips as well. In this simple form, it seems ridiculous that someone couldn’t comprehend that concept, but you would be surprised how things change when it comes to long-term investments such as stocks, machinery, or large-capital projects.

 

Part of the problem is that potential investors do not have a go-to baseline to gauge the true value for the use of their money. Something that isn’t arbitrary. For instance, you can’t assess the success of one project against something else for which the returns must also be estimated, such as a stock or even another plan you are considering. Simply, you need something with a consistent history of positive returns from which to analyze your investment.

 

Personally, I gauge all potential investments against the 20-year T-bond. While nothing is risk-free, this financial vehicle is issued and backed by the faith of the US Government making it an ideal baseline for your analysis.  This is why many investment advisors follow a diversified portfolio that includes a chunk of these assets.

 

Using my suggestion, you would forecast the return on your investment. For instance, if you plan to buy a piece of machinery that will last twenty years and increase your business by 3%. You would weigh that against what you would get if you placed your funds in a 20-year T-bond. If that bond’s coupon rate is 4%, you may want to investigate that investment, your forecasts, and your decision a bit further.

 

A few notes of caution here. If you crunch the numbers and the bond turns out to be a better investment. Try to avoid engaging in confirmation bias – “the tendency to interpret new evidence as confirmation of one’s existing beliefs or theories.” Don’t re-do your numbers until your potential investment looks better on paper than your baseline. Second, depending on the current state of the bond market. You may want to use the yield instead of the coupon in your analysis as this metric takes into account the future value of the bond you are considering. Finally, keep in mind the gut instinct. If you trust your math and truly feel that the investment will be a wise choice. Go for it. However, give it a night’s rest before you sign the check.

 

Your baseline does not have to be a bond. It just has to be quantifiable, historic, and relatively risk-free. For example, if you are considering hiring musical entertainment for your venue. You could analyze your bar and food sales for six to twelve months before you bring in the talent and then weigh your current numbers against those historic metrics.

 

In a future post, I plan to discuss how you forecast possible returns. However, for today. Remember that to measure anything. You need a device from which to gauge the opportunity. You need a baseline.

 

 

Welcome to My New Site!

Jeremy Larochelle

 

 

I was spending some time with my nephew over the holidays and we got to discussing the various jobs (or what I call them – gigs) I have held over my career.

 

We discussed my time as a Photojournalist under a Pulitzer Prize-winning writer and editor. How I leveraged that knowledge in content creation to launch my own printing company before turning to the road and studio as a professional musician. We closed those tales with a discussion on my business education and how I leverage it in the entertainment industry. It was interesting to watch his face as I shared my various stories and experiences.

 

Sometimes I forget just how blessed I have been in my life. Sure, it has taken a LOT of hard work and perseverance. I have been down and out, bankrupt, and technically homeless at times, but I kept moving forward. I kept chasing my passions and my dreams no matter where they took me. Colebrook, NH… Nashville, TN… Orlando, FL… Las Vegas… Scottsdale, AZ… Hawaii… Aculpulco… Glacier Bay… and the Panama Canal to name a few spots.

 

I really wanted my young nephew to understand that the one thing we can’t get more of is time, so you really need to spend your life doing what you love.

 

That pushed me to finally organize my experiences on my personal website, which I present to you today. It has been a tedious task tracking down pieces from my graphic design portfolio, images from my time as a photojournalist, tunes from my various bands, and videos captured throughout my career. I have organized these assets into three categories.

 

Jeremy Larochelle Businessman – For a look at my experience as an entrepreneur. My college and grad school studies. As well as my theories on leadership, management, and marketing.

 

Jeremy Larochelle Musician – Is where I have placed my work as a touring and studio drummer and educator.

 

Jeremy Larochelle Content Creator – Here you will find my photojournalism, graphic design, and video creation portfolios as well as my experience in each area.

 

Finally, I have migrated my online drummer clothing company, Spirit and Groove® to this site.

 

I plan to continue updating all aspects of my web presence and even have some new offerings in the works, so please come back to see what I am up to.

 

~ Jeremy Larochelle, MBA

 

 

 

Si vis pacem, para bellum

Jeremy Larochelle

Si vis pacem, para bellum, translated  “if you want peace, prepare for war” is an exceptional mantra to adopt in both your personal and business lives.  While it sounds like something that would come from Sun Tzu’s Art of War. It does not.  Rather, the phrase comes from book three of De Re Militari by Latin author Publius Flavius Vegetius Renatus. A first-of-its-kind war manual for Roman troops.

Business management is often looked at as a militaristic endeavor.  We have the war room, wear suits that dictate our prestige in the company, and even give marching orders. As such, we naturally gravitate to the military leadership and wisdom from war-tested individuals such as Tzu and Renatus.

It is important to note that when you read these manuals you will notice that much of the works are devoted to preserving life and, especially in Tzu’s work, avoiding a battle until absolutely necessary. As he points out, actual battle is costly – you lose both life and wealth in the process.  Tzu is consistent in his message of continually analyzing your opponent, the battlefield, and your position relative to both so that when the opportunity or need for war arises. You are better prepared to end the matter quickly and efficiently.

This is exactly the same in business. As a leader, you should always know what is going on in your battlefield.  Is a long-time supplier suddenly providing materials to a competitor?  Are there signs of your market shrinking… expanding… or disappearing altogether? Are your employees showing signs of complacency? Perhaps, your customers are discussing other options under their collective breath? These are all items a general should not only know but constantly analyze and calculate against the firm’s Key Performance Indicators (KPI’s).

These suggestions are not meant to create paranoid leaders. Rather, they are to remind said boardroom generals that peace in business is not achieved because you defeated a competitor. You will always have new competitors, fleeting customers, changing regulations, and world events that will impact your bottom line. Peace comes from accepting those fates and doing everything in your power to prepare for the wars that may come, so your army can win the battle quickly and efficiently.

 

 

 

The Dangers of Over-negotiation and Increasing Perceived Risk

Jeremy Larochelle

 

When negotiating, be careful not to go too far. This week, I was negotiating a small sale with someone…. let’s say. Not that experienced in deals. We had both made our demands and concessions and it was clear a balance had been struck. When it came time to close, he made another demand that would have brought us back to square one. I researched my market, my position, and kindly told him of other persons selling a similar item. However, if he still wanted my product. He could get it for market price.

My ultimate position was not enacted due to emotion. Rather, this customer’s final action increased my perceived risk of the deal. The concessions he initially earned, were judged on my risk analysis that he could pony up the funds, close, and wouldn’t return a vintage item that could be harmed with further shipments. Remember, risk is part of the deal. We learn it with car insurance, health care, and mortgages. It should be a part of any decision.