Month: September 2018

Preface: If the quote is true, “Behind every successful man is a women.”  Then behind every successful business venture, is a champion team.”

The “Michael Process” – Leading your Team to Greatness (Segment X)

Winning business teams are akin to any winning sports team, you can’t win the championships playing all the positions solo. You need expert, experienced, capable, and diligent team work. Your team’s implementation of the ideas, strategies, plans, and vision from your business connections drive your business to greatness. Your businesses connection are the networks from your community, experiences, employees, partners, consultants, advisors your business harnesses for the necessary resources to articulate and implement an effective “Michael Process.”

As you and or your team, concisely define, analyze and understand the problem(s), and then (re)solve those problem(s) effectively for thee marketplace, your business will gain the horsepower that creates, develops, and perpetuates an encouraging entrepreneurial endeavors vibrancy and success. Plainly, that is the simple, effective, and powerful “Michael Process” at work. The more vibrant a business successes, the more vibrant the businesses teamwork. Building the team, is building the business. Great businesses, always have room for more great people.

“You team will need to work well together; they will need to keep their commitments to adhere to the business vision and values, and understand the exact role they play towards building the businesses success.”

Exuberant business successes can be simplified to adherence with the three step “Michael Process.” A) passion for a marketplace, B) a concisely defined problem(s) the marketplace needs (re)solved, and C) providing an effective solution to the marketplace problem(s) defined in step B.

Once your “Michael Process” is developed, an important secondary characteristic is your team’s developments that will implement the process. You team will need to work well together; they will need to keep their commitments to adhere to the business vision and values, and understand the exact role they play towards building the businesses success. Your team will need a good attitude. They will also need to encourage each other to persevere, be accountable on deadlines and business goals, and communicate with a winning perspective. And your businesses leadership will need to earn and keep your teams respect and trust. Your team will help  write your business story(s).

Entrepreneurs who adhere to the “Michael Process” are more likely to have an entrepreneurial venture that is less susceptible to market and economic pressures, more respected in the community, and can sell products or services at premium prices in the marketplace. Why? Because their passionate vision for the marketplace and the opportunity creates an edge – from the passionate drive to continuously improve skills, keep focused, and gain and develop resources that other competing businesses lack or are lethargically skipping.

“Sure, any gold medal winning team is impressive. If you’re unfamiliar with the story, the big reveal is that the U.S. Team was comprised only of college and amateur hockey players—who were competing against professional teams.”

Larry Page, co-founder of Google, is quoted as saying…..”Always deliver more than expected.” There is only one way to consistently adhere to that advice, and that is to enjoy what you do every day delivering your services or products to the marketplace, just like the “Michael Process” articulates. You can be brilliant, capable, and an field expert, but if you think you will achieve business greatness yourself, you always be surpassed by the great team. And a great team has a great story(s).

“And now it’s your turn. If you don’t yet have great business stories from your “Michael Process” as an entrepreneur (most successful entrepreneurs do) you have the opportunity today to think about what you want those stories to be.”

In 1980, Herb Brooks organized a group of young men to form what is arguably the most impressive teamwork story in history. Known today as the Miracle on Ice, the 1980 U.S. Hockey Team skated away from those Olympic Games with the gold medal. Sure, any gold medal winning team is impressive. If you’re unfamiliar with the story, the big reveal is that the U.S. Team was comprised only of college and amateur hockey players—who were competing against professional teams. Teamwork stories detail the late nights, the contrasting talents, and the breakthrough moments when a group of people challenged a status quo, realized the missing piece of the puzzle, and changed one small aspect that changed everything. David Sturt and Todd Nordstrom 4 Stories Great Leaders Tell to Engage Their People.

And now it’s your turn. If you don’t yet have great business stories from your “Michael Process” as an entrepreneur (most successful entrepreneurs not only have good stories, but they have great stories) you have the opportunity today to think about what you want those stories to be. Then be more than a hearer of the entrepreneurial story(s); be a doer!

P.S. This is the conclusion of the “Michael Process” segments.

Preface: “It has been my observation that the happiest of people, the vibrant doers of the world, are almost always those who are putting into play, calling upon, depending upon the greatest number of their God-given talents and capabilities.” See quotes from John Glenn.

“Walking to the Fields” on The “Michael Process” (Segment IX)

Credit: Donald J. Sauder, CPA, CVA

“You can learn wisdom (e.g. in this context the business tool of the Michael Process and its relevancy) by three methods. First, by reflection, which is noblest. Second, by imitation, which is the easiest; and third by being a doer; and in that school, it is either if-only or next time.” That is a paraphrase of sage words from Confucius.

For those who choose to be a doer, it pays to prepare appropriately. Even though business problems don’t compare to a figurative “Biblical Moment”, more than one entrepreneur with lofty ambitions would have had a less costly education with a $250,000 MBA and five years of preparation. But quote “we don’t know what we don’t know.” And between what there is to know, and what we know, is a big gap, for the majority of individual entrepreneurs. That’s why partnerships, collaboration, alliances, advisors, coaches, and mentors, are vital for successful and developing businesses.

“He continues on to say, “If you’re not guided by a clear sense of purpose, you’re likely to fritter away your time and energy on obtaining the most tangible, short-term signs of achievement, not what’s really important to you.

And just as a focus on marginal costs can cause bad corporate decisions, it can lead people astray. The marginal cost of doing something wrong “just this once” always seems alluringly low. You don’t see the end result to which that path leads”.

Clayton Christensen says God hires people who help others become better people. As a Harvard Business School professor, Christensen teaches aspiring MBAs how to apply management and innovation theories to build stronger companies. But he also believes that these models can help people lead better lives. Here are some of his questions. How can I be happy in my career? How can I be sure that my relationship with my family is an enduring source of happiness? And how can I live my life with integrity? It also helps to ask these questions early in life, i.e. during preparation.

He continues on to say, “If you’re not guided by a clear sense of purpose, you’re likely to fritter away your time and energy on obtaining the most tangible, short-term signs of achievement, not what’s really important to you. And just as a focus on marginal costs can cause bad corporate decisions, it can lead people astray. The marginal cost of doing something wrong “just this once” always seems alluringly low. You don’t see the end result to which that path leads”. The point is, the Life of Purpose, that Clayton encourages for his students, is noble and effective. It also aligns with the Michael Process. To quote from Segment I, “That is your [business] purpose – provide an effective solution to a marketplace problem that you’ve concisely defined, with a passion for the marketplace, i.e. customers or clients.”

“The largest gaps in entrepreneurship are between the dreaming doers and the dreaming talkers. You will observe that real doers rarely criticize other doers. They realize how much work is really required.”

Well said Michael. “Real entrepreneurs have a passion for what they’re doing, a problem to be solved, and a purpose that drives them forward” – quote from Michael Dell. Exuberant business successes can be simplified to adherence with the three step “Michael Process.” A) passion for a marketplace, B) a concisely defined problem(s) the marketplace needs (re)solved, and C) providing an effective solution to the marketplace problem(s) defined in step B.

 The “Michael Process” is designed to firstly, provide dreaming talkers an understandable and implementable process towards be entrepreneurial doers, and secondly, help the entrepreneurial doers be more effective.

“It has been my observation that the happiest of people, the vibrant doers of the world, are almost always those who are putting into play, calling upon, depending upon the greatest number of their God-given talents and capabilities.” This quote from John Glenn, is perfectly aligned with the “Michael Process” entrepreneurs.

The largest gaps in entrepreneurship are between the dreaming doers and the dreaming talkers. You will observe that real doers rarely criticize other doers. They realize how much work is really required. The “Michael Process” is designed to firstly, provide dreaming talkers an understandable and implementable process towards be entrepreneurial doers, and secondly, help the entrepreneurial doers be more effective.

Preface: Mattel is a leading global children’s entertainment company that specializes in design and production of quality toys and consumer products. The company creates innovative products and experiences that inspire, entertain and develop children through play…..

………..Ruth loved work over playing from day one; and while in high school she worked two jobs. First as a part-time secretary for her brother Joe a lawyer in Denver, and then double shift at the Greenwald Soda Fountain in the big indoor market in downtown.

The “Michael Process” with Fisher-Price (Segment VIII)

Credit: Donald J. Sauder, CPA, CVA

The American toy company Mattel, officially began in 1945. Headquartered today in El Segundo, California, Mattel has been a leader in American toys for decades. Mattel brands and products include Fisher-Price, Monster High, Barbie, Ever After High, Winx Club, Hot Wheels, Matchbox, Masters of the Universe, and American Girl. Today the company is international with a presence in 40 countries and selling products in 150 countries. Here’s what co-founder Ruth Handler says about the company’s beginning. “We didn’t know how to run a business, but we had dreams and talent.”

Ruth loved work over playing from day one, and while in high school she worked two jobs. First as part-time secretary for her brother Joe a lawyer in Denver; and then double shift at the Greenwald Soda Fountain in the big indoor market in downtown. Cruising through downtown in her 1932 Ford coupe, 16 year old Ruth Mosko had to have a second look at her future husband, Elliot Handler. It took her two weeks to locate “Izzy”.

Ruth was from the prosperous east side of town, and attended a top tier high school in the nation. Izzy was a member of the friendly gang called the Gigolos. They were Jewish and Italian kids from the more dangerous west side. Soon the two began to date. Three years later during college break, Ruth went on vacation to Los Angeles. While dining with a friend from Paramount, she applied for a job at the company and was hired. Quickly enamored with the big city, “Izzy” Elliot had almost disappeared from her mind. One month late Elliot transferred his college studies to of all places the prestigious Art Center School of Design in Los Angeles too.

Then it the big moment, Ruth envisioned a sales calls to the exclusive Wilshire Boulevard shop called Zacho Imports.

Where’s the “Michael Process?” Let’s continue. As an artist by trade, Elliot became fascinated with designing Lucite lamps, picture frames, hand mirrors, and candelabra to decorate the couple’s apartment. Ruth was impressed, and certain that with the quality and passion in the design features she could sell the products as a business. With a credit card and $200 purchase of supplies at Sears, the couple became entrepreneurs in 1938.

Elliot was so surprised he had a most challenging time finding scrap paper and a pencil to write the order on. Elliot’s hands were shaking, and then Zacho was out the door.

Matt Matson and Elliot met in 1938 too, when Elliot designed and built an oven for Matt’s rental apartment. At that time, Elliot and Ruth called their business Elliot Handler Plastics. Then it the big moment, Ruth envisioned a sales calls to the exclusive Wilshire Boulevard shop called Zacho Imports.

When Ruth arrived for the sales call, Axel Zacho really liked what Elliot had designed, but he wanted to see the couples shop before ordering. Preparing for the worst, Ruth and Elliot met Mr. Zacho in their pitiful little workshop. When Axel agreed to a $500 order, Elliot was so surprised he had a most challenging time finding scrap paper and a pencil to write the order on. Elliot’s hands were shaking, and then Zacho was out the door.

Soon Ruth had the courage to made a sales call to Douglas Aircraft. The Douglas executive loved the Plexiglass clock Elliot had designed. His order was so large, Elliot’s brother Al had to fly out to help produce the gifts for Christmas, and Ruth had to borrow $1,500 for working capital to fill the order.

Then constant bickering in the business lead Matt to leave in 1944. Within one month, a new company developed Matt + El, or Mattel.

With a taste of success, Elliot continued enthusiastically with his designs and Ruth excelled with a love and thrill on the challenge of selling what Elliot crafted. Six years after the Sear purchase, annual sales of the Elliot’s products designs exceed $2m. Matt Matson’s business expertise had made a big contribution. Then constant bickering in the business lead Matt to leave in 1944. Within one month, a new company developed Matt + El, or Mattel.

Starting with picture frame sales, Mattel soon expanded to dollhouse furniture. In 1947 the company launched its first toy sensation, a ukulele called Uke-A-Doodle. Fifteen years after launching, the company went public on the NYSE.

With continued success, Mattel purchased Ringling Bros. and Barnum & Bailey Circus in 1971 for $40m from the Feld family. Two years later, despite the success of the circus division, Mattel sold the circus to support company vibrancy. After an investigation, Elliot and Ruth Handler were round guilty of issuing false financial reports on the company, and the company banned them from the board. It was Arthur S. Spear who turned the business around, and back to profitability in three years.

Is this “Michael Process” really the Chicken Dance Elmo heritage of the famous Fisher- Price? The answer is “yea”.

Preface:  If you can improve [customers] peoples lives, you have a business. People think, ‘well everything’s been thought of,’ but actually, all of the time, there are gaps in the market here and gaps in the market there.”  Richard Branson 30 Days of Genius.

The “Michael Process” – Yesterday, Today and Tomorrow (Segment VII)

Credit: Donald J. Sauder, CPA, CVA

Perusing back through the business landscape to the early 1900s, major business trends or industries applicable to “Michael Process” entrepreneurs included the development of the engine, the tractor, the automobile, oil production, and generation of electricity. Along with these business development enterprising entrepreneurs started car dealerships, farm machinery dealerships, and gas stations. Corresponding new occupations developed e.g. mechanics and electricians.

Organized in 1976 with a single mission to be the best electrical contractor in the Midwest, ProElectric in Kansas City, KS, has developed into a respected electrical contractor with annual sales volume surpassing $20 million. Employing up to 150 employees, the business provides outstanding electrical services to customers. Blossoming with an application of the “Michael Process” to a century stable industry, there’re an entrepreneurial business that is solving problems with a business purpose successfully for their community.

 “Interestingly, the 110 story Sears Tower completed in 1974 is monument of the era. This landscape led to new occupational titles including machinist, truck driver, computer programmer, and shop foreman.”

During the 1960s the players on the business landscape comprised manufacturing, computers, telecommunications, automation and production customization, and more stores (and restaurants) to present all the products saturating the marketplace. Interestingly, the 110 story Sears Tower completed in 1974 is monument of the era. This landscape led to new occupational titles including machinist, truck driver, computer programmer, and shop foreman.

What about tomorrow’s “Michael Process” opportunities?

If you have faith like Peter in the Book of Matthew, do you need a “Michael Process?” Here’s how it worked. After they had returned home, Jesus went up to Peter and asked him, “Simon, what do you think? Do the kings of this earth collect taxes and fees from their own people or from foreigners?”

Peter answered, “From foreigners.” Jesus replied, “Then their own people don’t have to pay. But we don’t want to cause trouble. So go cast a line into the lake and pull out the first fish you hook. Open its mouth, and you will find a coin. Use it to pay your taxes and mine.”

“The not only do they [fruitful entrepreneurs] set realistic goals, and take accountability seriously; but they know they create their own success, i.e. they have faith they will achieve their business vision.”

Then there is the story of the daughter of a wealthy businessman who took her boyfriend who was studying to be a small-town pastor to meet her parents. After dinner, the father sat in his mahogany study with the young man, and started asking questions. “So how to do you plan to earn a living to support my daughter and a family if you’re interested in marriage?” The young man responded “God will provide.” The father followed up with “And as a pastor, how will you buy a nice house for my daughter and grandchildren to enjoy?” Again, the young man replied “God will provide.” Following up on the conversation later, the mother ask her husband how the conversation went with the young man. He replied, “….another Liberal and he thinks I’m God”.

Granted, we are not saying the “Michael Process” is an unfailing principle. It helps facilitate the faith necessary to succeed in business and research supports this. Dan Schawbel writes in his article 14 Things Every Successful Person Has In Common, not only do they [fruitful entrepreneurs] set realistic goals, and take accountability seriously; but they know they create their own success, i.e. they have faith they will achieve their business vision.

“Ponder that one moment. If you’re an entrepreneur, those gaps are your business opportunities and or threats. Successful businesses have satisfied customers, no exceptions.”

If you do not have faith like Peters yet, here is a timeless quote. “The best businesses come from [customers] bad personal experiences. If you just keep your eyes open, you’re going to find something that frustrates you, and then you think, well I could maybe do it better than it’s being done, and there you have a business. If you can improve [customers] peoples lives, you have a business. People think, ‘well everything’s been thought of,’ but actually, all of the time, there are gaps in the market here and gaps in the market there.”  Richard Branson 30 Days of Genius.

Ponder that one moment. If you’re an entrepreneur, those gaps are your business opportunities and or threats. Successful businesses have satisfied customers, no exceptions. In addition, entrepreneurship doesn’t require a great idea; you don’t need a genius invention for the “Michael Process” to work for you. You simply need the expertise to improve the lives of your future customers. That’s the pillar characteristic of the “Michael Process” case studies. Ray Kroc’s name is not McDonald; Alex Fourie did not invent the iPhone; Anna Phosa wasn’t the first farmer; And Michael Dell did not invent the PC. Yet they’re entrepreneurs who have solved problems [closed gaps] effectively with a passionate business purpose.

What if the business landscape of the future includes remote healthcare, autonomous vehicles, a sharing economy, artificial intelligence, renewable energy, smart cities, 3D printing, domestic robots, and commercial drones? The “Michael Process” will continue to be applicable in business as long as seed time and harvest remain.

Preface: “If you’re not passionate about what you do, it will reflect on your work and your performance, and eventually, stop you from achieving your full potential.” — Quote from Michael Dell of the “Michael Process”

The “Michael Process” – A Case Study (Segment VI)

Credit: Donald J. Sauder, CPA, CVA

His father was a stockbroker and an orthodontist; his mother was a money manager; the genius of the “Michael Process” yes, Michael Dell was ambitious from first grade. So where is the “Michael Process” right? At the early age of eight, Michael was already dreaming about his career in business. Attending Herod Elementary School in Houston, Texas, he made serious endeavors to earn his high school diploma by passing an equivalency exam from a testing company he persuaded to give him the opportunity.

It was four year until his business career began at the age of twelve, embarking on a mail order stamp and baseball cards trading business, he earned $2,000. Two year later, at fourteen, he obtained an Apple II and invested weeks learning how the computer worked. Following those early years, at the age of sixteen, Michael worked as a marketing executive for the Houston Post making cold calls. Creating a process of identifying top prospects who would purchase, he hired his high school buddies to leverage the department. That year he earned more than his school teacher with a taxable income of $18,000.

“In the next seven years, Dells business venture climbed at a dizzying rocket pace to list his company among the Fortune 500. Dell was the youngest CEO every to achieve the accomplishment.“

After graduating from high school, at eighteen, Michael started his career in computers, working from his dorm room at University of Texas. Declaring he wanted to compete with IBM, his passion for business drove him to dream big. The market data indicates IBM and IBM clones sold in 1983 exceeded 1.3M units. Registering the name “PC’s Limited” with his cash trove from marketing he was insightfully prepared for the market opportunity. A year later (without a college degree) he departed University of Texas to work at his new business “Dell Computer” full-time.

With his developed marketing acumen, Dell sold his computers with one year of free service and a warranty. Soon he had hundreds of happy customers. In the next seven years, Dells business venture climbed at a dizzying rocket pace to list his company among the Fortune 500. Dell was the youngest CEO every to achieve the accomplishment. Dell is quoted as saying “If you’re not passionate about what you do, it will reflect on your work and your performance, and eventually, stop you from achieving your full potential.”

“In twenty-five years after its IPO, Dell Computer stock soared 87,000 percent, creating 2,700 millionaires including secretaries and executives when Michael Dell led the $24.4B sale of his company, that started with a dream to compete with IBM.”

Years after endeavoring to complete high school at the age of eight, Dell said “One of things I benefited from when I started this business was that I didn’t know anything. It was instinct with no preconceived notions. This enabled me to learn and change quick without having to worry about the status quo, like some of my bigger competitors.” [Author’s note; I’d say he must have simply blazed his own path very successfully to reach the Fortune 500 listing.] Built with top talent from Harvard and Stanford with an eighteen-hour work day culture, Dell Computers culture and business management were demanding and bottom-line oriented.

“When you wake up [each day], are you pumped about your day, or are you hitting the snooze button every ten minutes? Tiny as it may seem that mean all difference between failure and success.”

In twenty-five years after its IPO, Dell Computer stock soared 87,000 percent, creating 2,700 millionaires including secretaries and executives when Michael Dell led the $24.4B sale of his company. It all started with a big dream to compete with IBM.

Along with the “Michael Process”, Dell encourages entrepreneurs to dream big, and do it with integrity, character and love. “When you wake up [each day], are you pumped about your day, or are you hitting the snooze button every ten minutes? Tiny as it may seem that mean all difference between failure and success.” Dell may not be richest tech entrepreneur, but his journey his rich with business experience and learnings; and in addition to the history of the “Michael Process” a great story for any ambitious entrepreneur(s).