The lost art of reading …

I am reading a book called “Shut Up, Stop Whining and Get a Life” by Larry Winget (great book by the way!) where he shares some startling statistics on learning. According to Larry – on average people spend about 100 hours a year reading – yet 2,000 hours a year in front of the TV.

Forty hours a week in front of the TV yet only 2 hours a week looking at something with words on it.

According to the American Booksellers Association:

• 80% of Americans did not buy or read a book this year
• 70% of American adults have not been in a bookstore in the last 5 years
• 58% of American adults never read a book after high school
• 42% of university graduates never read another book

Another similar study suggests:

• 14% of Americans go into a bookstore or library  and actually walk out with a book
• 10% of people who buy a book read past the first chapter

Personally, these stats stun me because it is not my reality. The people in my local Barnes and Noble know me by name.

I am there every weekend and usually buy at least 2 non-fiction books while I am there. I usually have at least 3 to 4 books that I read at the same time and always get at least 2 chapters in a night.

I always have 5 books in my car and if I am jumping out for an appointment with my hairdresser or to have a coffee – I take a book.

I didn’t realize how “weird” I was until I read these stats. Upon reflection however – I am known as “the reader” by my hairdresser. Wait staff at my Sunday morning breakfast place always comment about the fact I always bring a book.

At ActionCOACH, our Seventh Point of Culture is Education. I have implemented a Book of the Quarter for TEAM which we reflect upon at quarterly team meetings. We have even built a team library.

When was the last time you read a book?

How do you pass on your love of reading to people around you?

Jodie Shaw

Franchise Due Diligence: Know your numbers

Owning a franchise is one of the best ways to get into business for yourself (especially for the first time), because you are buying into a proven business model that has all of its systems in place.

That doesn’t mean, however, you shouldn’t know as much as possible about the franchise and the opportunity you are looking at, as outlined here …

Do your research.

Know your numbers.

Read all the documentation and talk to both current and former franchisees about the opportunity you are considering.

Franchising can be one of the best ways to pursue your entrepreneurial dreams.

Like any other business, however, just make sure you know as much as you can about the company, the business, its potential and your own capital requirements before you make the “leap.”

Jodie Shaw

How McDonald’s Thrived During the Recession

Here’s a great article on how one of the top brands in the world not only survived … but thrived during the recent economic downturn …

http://www.mint.com/blog/trends/mcdonalds-recession-09212010/

What’s interesting is that those businesses that are run on solid foundations can survive just about anything.

Just look at how some companies rebound after major natural disasters like the Tennessee floods last or Hurricane Katrina.

How do they do it?

They’ve already got the company built in their minds, their systems and their plans.

The famous industrialist Andrew Carnegie once said people could take everything away from his and he and his TEAM could rebuild it in a period of four years.

These days, with all the innovation in communications and technology, stressed companies can do that in hours.

So … if your own business has survived (and maybe even prospered) … how did you do it?

If not, what went wrong … and what would you do differently next time (because you’re not giving up your entrepreneurial dream, are you?!)?

Good stuff to ponder …

Jodie Shaw

Lessons from the boom “Down Under” …

An interesting link from Bloomberg on the recent fortunes of the Australian dollar …

The Aussie Dollar …

As a native Australian, I watch the news from Down Under with a good mix of interest and perspective.

Certainly, for a country of 20 million people or so, in a land mass the size of the U.S. … with all the population centers spread around the outskirts of the land mass much like New York, Miami, Los Angeles and Seattle, Oz has done very well in exporting a brand of entrepreneurism that is starting to gain international notice.

Some of that has come from the likes of Rupert Murdoch (and to a lesser extent, Kerry Packer … at least in Las Vegas!).

It has also attracted investment from some pretty big nations (read:  China), countries that are turning to Australia for a potent mixture of a strong “will-do” attitude and a vast wealth of natural resources.

To that end, Bloomberg/Businessweek has also detailed some of the pro’s and con’s of that arrangement in its latest issue, which cites some incredible statistics on the trade between the two countries:

• Average annual salary in Australia’s mining industry:    $104,000
• Current year-to-year growth of Australia’s exports to China: 31%
• Gain year-to-year to each Australian household via trade:  $3,400
• Median Australian household income:    $67,000

So … while U.S. white collar workers are standing in unemployment lines looking for professional jobs that no longer exist, Australian blue collar workers are pulling down six figures helping develop un-developed and under-developed countries and economies.

While Australian labor and expertise continues to prosper in China’s backyard, India and the entire Pacific region offers incredible opportunities as well.

One of India’s more compelling national statistics is that 300 million people in that country are under the age of 15.

That’s right … a population equivalent to the entire U.S. population is about to step into early adulthood, with a taste for western clothes, media, electronics and a desire to sweep aside conventional ideas of caste, class and status-quo.

A fair amount of Aussie ex-pats have grounded themselves in India over the past several decades, and are only now beginning to profit from their investments of time, dollars and resources … but the profits are massive – and opportunities will only continue to improve.

So it’s eye-opening for me to see U.S. policy makers struggle to figure out how to up a couple percentage points on a $14 trillion economy, when the Australians, Chinese and Indians are literally going back to basics to create incentives, expand their natural resource base and find more innovative ways to apply new technologies to old businesses and old business models.

The Australian dollar is as close to parity with the U.S. dollar as it has been in many years.

That’s not an accident.

Growth is good for everyone … and yes, there are disadvantages to the Chinese reliance on Aussie resources, and an Oz reliance on Chinese interests.

But don’t tell that to the construction workers and truck drivers who are creating lasting financial legacies for themselves and their families.

These vibrant and thriving “new economies” have a lot to teach us about our own growth and innovation here in the States.

If only we paid a bit more attention, we might actually re-learn some of those lessons we’ve taught and exported to everyone else over the years.

Because we’re going to need them – sooner rather than later.

 
Jodie Shaw

Kiplinger’s cites ActionCOACH

An interesting note from last week … Kiplinger’s cited ActionCOACH as one of the fastest growing home-based businesses and franchises.

You can see the links here …

Hot trend home-based businesses …

Kiplinger’s slide show …

With today’s technology, it really is easier and more affordable than ever to start your business small (like from your house) … and “bootstrap” you way to more cashflow and success.

Our coaches also benefit from the flexibility that a home office provides, as opposed to a traditional “brick and mortar” business or franchise concept.

While some of our coaches opt for more conventional office space, many simply opt to work their businesses from home.

And it’s good to see such an esteemed business and financial outlet such as Kiplinger’s recognizes those advantages as well.

Jodie Shaw

What happened to integrity in leadership?

In our business we are guided every day by 14 Points of Culture.

What does that mean?

At ActionCOACH, we think it’s vitally important we play at 100% within certain guidelines and “rules of the game” … and by following these points we do just that.

There’s also a lot of evidence to show improved performance can be tied to a positive and highly accountable company culture, and I like to think our success is a further reflection of that.

What are the 14 Points of Culture?

You can see them all right here …

ActionCOACH’s 14 Points of Culture

While each of the 14 Points are important, two in my mind really stand out … and those are Ownership and Integrity.

To reiterate these points …

Ownership means that I am truly responsible for my actions and outcomes and own everything that takes place in my work and my life.

I am accountable for my results and I know that for things to change, first I must change.

Integrity means I always speak the truth. What I promise is what I deliver. I only ever make agreements with myself and others that I am willing and intend to keep.

I communicate potential broken agreements at the first opportunity and I clear up all broken agreements immediately.

Anyone who knows me knows I take these very seriously and they have helped me become a strong leader for my team.

But I also see many in business and in our own culture moving away from those ideals and, in the process, eroding the foundations of the collective culture we share.

It makes me wonder, what do we expect from our leaders and heroes?

Do we expect them to be strong and show integrity that the rest of us should emulate, or do we expect them to act as badly as the worst of us?

In my opinion, too often it’s the latter and because of this the ideals of integrity are diminishing on a daily basis.

Former Illinois governor Rod Blagojevich and future Hall of Fame pitcher Roger Clemens are two examples of leaders in their respective professions in the spotlight who seem to have misunderstood their roles and the power of their positions.

In doing so, they’ve shown absolutely no integrity by refusing to take ownership of their actions.

Blagojevich has been the poster child for political corruption, while Clemens is being indicted for allegedly lying to Congress and refuses to come clean despite facing criminal indictments.

While these two men shouldn’t be role models, they are in the public eye; they are also well-known and indicative of the attitude that many have concerning heroes and leaders.

Blagojevich’s alleged criminal actions were bad, but his lack of integrity and ownership in his failure to accept any responsibility for his predicament, while continuing to do the rounds on a media tour, seems somewhat sociopathic.

When the charges were first brought, Blagojevich said he would do whatever it takes to clear his name.

He also claimed that the charges brought against him were nothing but the product of a witch hunt by a politically motivated prosecutor.

But Blagojevich was taped discussing Obama’s Senate seat, referring to it as “F’ng golden,” and not something he was going to give away for free.

From those statements (along with hours of other recordings), it’s pretty clear that Blagojevich’s intentions weren’t completely honorable and he expected some personal reward from whomever he bestowed the seat on.

It is hard to dispute hard evidence like audio tapes, but every step of the way Blagojevich has tried.

He claims that he never took the stand in his recent trial because the prosecution didn’t prove their case, yet 11 of 12 jurors voted to convict him on all 24 counts he faced.

He was convicted on just one count (lying to the FBI), but the prosecution plans to retry Blagojevich, while the former governor plans to appeal his lone conviction.

Blagojevich’s actions while governor are enough to show he lacks the necessary integrity to be a leader, but his constant use of the media to perpetuate lies and claim the high ground crystallizes his utter lack of integrity and maybe even an underlying narcissism.

But it isn’t just the political world where lack of ownership and integrity is affecting society.

It is on full display in the world of sports, especially in the aftermath of Major League Baseball’s steroid scandal.

“Let me be clear. I have never taken steroids or HGH,” Roger Clemens told a House of Representatives committee investigating performance enhancing drugs in 2008.

Unfortunately for Clemens, there are mounds of evidence to the contrary.

His former personal trainer claims to have seen him use steroids (as have some former teammates), including former good friend and current Yankees pitcher Andy Pettitte, who may be called to testify against Clemens.

Despite all the evidence pointing the other way, Clemens has been sticking to his story since the indictment.

“I never took HGH or Steroids. And I did not lie to Congress,” Clemens said on Twitter recently. “I look forward to challenging the government’s accusations, and hope people will keep an open mind until trial. I appreciate all the support I have been getting. I am happy to finally have my day in court.”

Clemens is taking a major risk by letting his indictments go to trial, rather than taking a plea. But a plea would mean that Clemens is guilty no matter what he says, so he must continue to fabricate a story because the truth will probably not set him free.

Clemens is charged with six felony counts, including one count of obstructing justice, three for making false statements and two for perjury.

The future Hall of Famer and seven-time Cy Young Award winner faces a combined maximum sentence of 30 years in prison and a $1.5 million fine if convicted on all counts, although even if convicted he probably wouldn’t face such a steep punishment.

A more likely outcome if Clemens is convicted should be a sentence within the range of 15-21 months.

So what do the sagas of Blagojevich and Clemens tell us about the culture we live in?

We are suffering from a lack of integrity because the people who are role models and leaders are completely unaccountable and refuse to take responsibility for what they’ve done.

Ownership and Integrity have eroded to the point where people can’t distinguish the real thing from the fake.

We elect governors who openly solicit monetary gain for government positions.

We have sports heroes who not only aren’t role models, but are liars who refuse to tell the truth even when confronted with overwhelming evidence.

Today, the people who some consider heroes and leaders are corrupt Wall Street CEOs who lose billions, yet still retire rich.

Basically, thanks to the lack of integrity we see on a daily basis, we have lost faith in our heroes and faith in our society and in human nature in general.

That’s why I think it’s so important that we all try to live at 100%, not only in our work life, but in every aspect of our lives.

We won’t ever be, after all, perfect.

But having and following and actually living by good values and strong guidelines (like our own 14 Points of Culture) … while actually being accountable to those guidelines … is a great way to start.

Jodie Shaw

Learnings from Conference …

After having a couple of weeks to get back to the States after our Global Conference in Barcelona, Spain, I’ve had the opportunity to reflect on some of the education and learnings (as well as some of my own takeaways) from this year’s event.

First, I want to congratulate all of those coaches who won awards at the event and who were recognized by their peers for excellence and results.

Business Coaching is one of the most challenging, yet rewarding, professions in the world, and I’m always proud of the great work our coaches do for their clients.

I suppose the biggest new initiative that came out of Conference is our guarantee.

I’ll have more on this later (our official launch is slated for October 1) … but accountability for our own system is something we’ve never really leveraged or advertised in an overt or commercial way – until now.

Not only will our guarantee help our coaches in their own sales process take the risk out of that process, it is also a testament to the innovation our company continues to produce as a leader of our industry and category.

So … lesson number one is finding ways to take the perceived (or actual) buying risk out of your product may be challenging, but if you can find a way to do it, you just may propel your company into a new realm of success.

The second lesson I took from conference is how business coaching impact communities … and this was really evident in our discussions about the results of our past year’s Coaching for a Cause campaign.

The second year of this campaign is scheduled to begin (coincidentally) on October 1 and will run through March 15, 2011.

Last year, our coaches helped the non-profits they coaches raise an additional $3.4 million in donations (beating our stated goal of $2.5 million).

Not only did the extra donations greatly help non-profits in need, the greater benefit is that those organizations now have the knowledge and tools in place to replicate their results … even if they decide to go on their own without a coach.

The good news is … many of those non-profits want to remain as part of the program, and many more have waited a year just be part (as they may have missed the cut-off last year).

Still others have only recently heard about the program, and are extremely eager to join.

This year’s goal of $5 million in extra donations is a stretch … but doable.

Beyond the numbers, the stories shared by our coaches who drove the program last year, and the transformations in business practices they were able to guide and achieve, are truly remarkable, and serve as an inspiration that drives us to continue to share our system with as many non-profits (and for-profits!) as possible.

Finally, I was impressed with our coaches’ success in getting results for clients (particularly in the U.S.) in the face of massive economic uncertainty and an overall economy that just seems stuck in first gear.

While many Americans don’t realize it, other parts of the world are very strong economically, which means our coaches in Australia and New Zealand are dealing with an entirely different set of issues and challenges with their clients.

In the U.S., however, our coaches are working day in and day out with owners in economically recessed (and in some cases, depressed) areas … and in turn are helping them generate more sales, more cashflow and in some cases, more profit, than ever before.

Not only does this positively impact individual owners and their teams, those results give credence and credibility to our system … and allows our coaches to in turn expand their network of success stories and referrals.

That is extremely heartening, and a great contrast to the headlines that greeted me on my return to Las Vegas.

Which leads me to the biggest lesson of all …

If you don’t know what business coaching is … find out right now.

(This link will help:  ActionCOACH.com)

If you’ve met with a coach but haven’t hired one yet … hire one today.

And if you are working with a coach but are running into challenges or obstacles … tackle them today and move on to things that will make you money.

Business coaching works … and ActionCOACH guarantees its system of coaching can and will work for you.

(OK … officially after October 1!) …

So don’t wait for help for your business any longer.

ActionCOACH business coaching will work for you.

The only question is … will you work with an ActionCOACH?

Jodie Shaw

P.S.
Go here  to get more information on Coaching for a Cause …

Coaching for a Cause

P.P.S.
By the way, our 2011 Global Conference is scheduled for Miami …

You can get a glimpse of what’s to come here …

2011 Global Conference in Miami

JS

The gamesmanship still continues …

It’s been a while since the President has been in full blown “crisis” mode, but it doesn’t appear he is quite there yet with the lingering small business credit crunch that has only been in effect for the last two years or so …

The “urgent” need for small business aid …

Unfortunately, both sides on this issue have played games with policy at the expense of small business owners and creditors who need more signs of certainty from the political class about plans for the economy moving forward.

Despite the rhetoric, there have been few signs of true incentives to get these markets moving again, or to give small business owners an idea of the future costs of health care and other new business and financial regulations the Obama Administration (and Congress) has cooked up over the past year or so.

Will a couple more weeks make any difference for the millions of businesses that desperately need access to expanded credit lines?

Probably not …

But the good news (in a bit of a cynical twist) … is that if those companies have survived, they are probably lean enough, creative enough and innovative enough to survive no matter what the policy makers do.

And that is the ultimate triumph of entrepreneurship in the “dog days” of our “Recovery Summer” …

Jodie Shaw

An interesting comparison …

I got a good question from the wife of a prospective practice owner the other day at one of our franchise Discovery Days at our office in Las Vegas.

She wondered why there weren’t more women Business Coaches in our system.

Coaching, she said, seems to be the perfect type of business for women, who typically are very effective in their communication styles and who can relate to a lot of different people and personalities in a lot of different situations.

Personally, I think being a great coach has a lot more to do with behaviors than it has to do with gender.

Currently, approximately 20% of all coaches in our system are women.

But let’s look at some numbers in a slightly different context … 

Today, women make up more than half of America’s labor force … but, as of last year, only 12 Fortune 500 companies and 25 Fortune 1000 companies had women CEOs or presidents.

Those numbers have been fairly consistent over the past ten years or so.

In 1998, some studies indicate that a mere 11.2% of corporate officers in Fortune 500 companies were women, a percentage that peaked at more than 16.4% in 2005.

By 2008, this number fell to 15.7%.

For professional women with business experience, business coaching is a perfect professional services business.

Not only do women effectively relate to a wide range of clients and customers, they can be excellent drivers and implementers.

And in our system, some of our best coaches are in fact, women.

So while some could look at our system and say “only” 20% of our coaches are female, that average is in fact higher than the numbers of women in leadership position in corporate America.

And, unlike those “corporate” positions, the women Business Coaches in our system have the freedom to work towards a fee level they feel is appropriate for their own business and lifestyle, without being “capped” in terms of compensation, achievement or results.

Plus, the accolades they receive and the results they help others create can truly be called their “own.”

While women in business leadership roles still have a ways to go to equal their male counterparts, there are a lot of opportunities out there for women to achieve more in terms of income and recognition than they may have ever thought possible.

I’m proud to say business coaching – and ActionCOACH –  is one of them.

Jodie Shaw

Does America really need to re-build its manufacturing base to grow?

“We have become a nation of consumers. We don’t make anything anymore. Well I’m done consuming … I want to make!”- Jack Donaghy

Jack Donaghy, played by Alec Baldwin on NBC’s 30 Rock, is portrayed as the quintessential corporate CEO.

When fictional Kabletown buys NBC in a 30 Rock episode last season, Jack is horrified to learn that his new company is no longer interested in producing new products because they’ve already found the perfect cash cow, which is “pay per view porn.”

Jack realizes Kabletown is neglecting half of its possible market (in this case, women), and that there is always room for innovation in business, leading to his comment about making a version of his new “product” called “pay per view women’s porn.”

(Of course, this is nothing more than men offering affirmation and their listening skills to women!)

However, there is some truth to Jack’s statement about the predicament of the American economy.

Not only is Jack’s comment an amusing double entendre, it points out that America has become a service economy that doesn’t make products the way it used to.

His comment also echoes a point about the nature of business in America that is currently being espoused by our President.

Mr. Obama is on the campaign trail in preparation for the mid-term elections and seems to think that the road to recovery is through rebuilding the nation’s manufacturing base.

But does that mindset show the President understands the economic problems of the United States or is it further proof that Mr. Obama and his administration simply don’t understand the nature of business in America today?

There are seven key factors that drive the cost of manufacturing. Raw materials, labor, overhead, exchange rates, freight, duties and inventory. Each plays its own part in creating an American economy that increasingly outsources its manufacturing needs.

Of course the United States was the preeminent manufacturing center in the world for decades, but the manufacturing golden age ended a long time ago. The United States, like most former industrial powers, is now an economy based on service industries.

Why?

Manufacturing in America is simply too expensive for big business when compared to the rest of the world. 

According to the Manufacturing Outsourcing Cost Index, manufacturing can be done in Mexico for almost 25% less than in the United States and almost 20% less in India, which are the two leading Low Cost Countries the U.S. outsources it manufacturing to.

Labor costs are far lower in those countries, but those aren’t the only advantages.

Mexico has a favorable exchange rate and because of its proximity to the US, costs aren’t impacted drastically when transportation and material costs increase.

India is a very close second when it comes to affordability primarily because their favorable exchange rate largely offsets transportation and inventory cost increases.

In fact in 2009, all major Low Cost Countries (LCC’s) gained on the United States and in most cases, the cost advantage is now equivalent to 2005/2006 levels.

So the reason the American economy is based on services rather than manufacturing is simple, cost.

Think about it.

The costs of creating a business that builds widgets is far more expensive than setting up a consulting business out of one’s home.

Even if you’re an accountant, what are your overhead costs?

Better yet, what if you run a website or other type of “invisible” service?

It doesn’t matter what field you’re in, if you operate in a service economy, expenses are far less onerous than if you are setting up a manufacturing plant.

In turn, those lower costs lead to greater margins and faster profit.

Let’s consider some of those key cost drivers one more time.

The cost of raw materials may not change very much. After all, America is rich with raw materials, but for a company looking to manufacture products in America, the other costs are exponentially more expensive than in other nations.

First of all, American labor costs companies more.

The average American worker who earns $14 an hour is actually costing their employers $20.

The differences in average wage, benefits and productivity around the world are enormous.

Overhead is also typically more expensive in America because the relative costs of energy, equipment, taxes and insurance.

Despite the recession, the dollar has remained strong, which also hurt the margins for companies manufacturing in the United States who want to export their goods to other countries.

So what does this information tell us about the nature of the American economy?

First, unless the strength of the dollar weakens, outsourcing is simply more cost effective for American companies.

The weakness of currencies in LCC’s leads to cheaper rates on everything vital a manufacturer needs to survive, profit and prosper.

More importantly, we have to understand the nature of our own modern economy.

Yes, the U.S. may no longer the leading manufacturer in the world, but it is the leader in ideas and in its the ability to create capital … even if the economy has been in recession.

As the leader in business, it is not longer an American responsibility to build goods for the rest of the world.

The responsibility of American business is to grow and innovate, and find new ways to reach customers …

Which leads us back to Jack Donaghy … and our President.

Jack says he wants to “make,” but in reality, his product was made by another company he didn’t own or control.

But he did discover another way to reach new customers.

In that sense, Jack remains the quintessential American CEO:  finding ways to grow top line revenues and bottom line profits while leveraging new ideas to new customers all the while outsourcing production.

This is what President Obama needs to understand.

For businesses, making products outside of the United States makes financial sense and doesn’t weaken the economy.

In fact, it boosts margins and gives companies more capital to hire new workers and expand.

The challenge is to find other ways of growing and innovating that don’t push the nation backwards towards a production economy … with little chance of competing against the rest of the world.

Which really means “innovate” is the new “make.”

And to think you might have thought you couldn’t learn anything about business by watching TV!

Jodie Shaw