The next step in the decision making process was a bit more personal. Before, I had examined the facts and realized my fear was unfounded. This process left data, logic and logistics to determine my fate. While drastically diminishing my inward fear, it didn’t stop the momentum that would, inevitably, force myself to ask the next question…

“Am I strong enough?”

This question attaches itself to the very core of everyone’s heart. This question of ability is one of the most fundamental and profound questions. Once one sets out to answer such a question, they are hit with thousands of questions, contradictions, assumptions and excuses. 

Can ability truly be measured?

Burn The Ships: 

The topics of financial finance, accounting and their applicable laws are too complex and lengthy to cover in a simple blog. But I hope, after reading this, you’ll be more interested and concerned with how you’re receiving financial reports and how they’re being used across your company.

First, Get A Professional:

My advice has always been that every organization needs to have a bookkeeper for their organization. I understand that not everyone can afford a full-time accountant. (If you can, good for you. You still need to read this part). If you’re strapped for cash, at the very least, you need to hire a very part time bookkeeper who will come into your business, do a few things and leave.

Tip: These people (part-time bookkeepers) are relatively easy to find. Many of them act as contract employees and have their own client list. They may seem a little high-priced for hourly work (mainly due to insurances and taxes they have to cover). But the savings and value they offer you, in terms of extra time and eliminating costly amature errors, is worth it.

Plan Your Reports:

Every business needs different types of information at particular times. So, I can’t define, exactly, what you need. But I can come close. One thing I know for sure is, you need to plan for how you are going to receive reports. These reports should be preplanned and in the format you prefer the most.

Side Note: You’d be surprised at what financial software can produce. If you don’t know exactly what you need, describe what you think you’ll need. An experienced bookkeeper should be able to give you just the right thing.

Weekly Reports:

These reports are what you use when you need to be nimble and make smart, fast decisions. It might help to think of a Knight, in the thick of battle, is in danger of being struck by an enemy. To survive, he needs to be able to react and block the coming blow. The same is with a weekly report. It is what you use to react to volatile forces in the market. That’s why it’s important to include measurements of things that are within your immediate control (like Accounts Receivable, Accounts Payable, Weekly Sales…).Don’t be blindsided when you could have stood your ground.

Monthly Reports:

Monthly reports are always a little trickier. By their nature, they are more strategic and should be used in planning bigger aspects of your business. You could use these reports to “tweak” a marking strategy, change suppliers or change a business process.

Quarterly Reports:

Quarterly reports make big news. They are the official score board of a company’s performance and usually mark the beginning of a new market cycle. Because of the breath of a quarterly report, they can be used in a variety of ways. However, I’m only going to suggest two.

• First, Quarterly reports should be viewed as a historical data tool. You can use it to plan next year’s product line, market campaign and staffing levels.
• Second, you should use it to measure how far you are from your goals. The gap can be so big that you start looking at your business in a different way. Decisions that focus on the bigger and more long-term goals of the company are usually made during the review of quarterly reports.

Yearly Reports:

Depending on how you look at it, yearly reports can be the time you celebrate or think of how things are “renewed” by the New Year. Yearly reports are a reflection of the decisions and decision makers of that year. It marks next phases, transitions, new visions and are usually used to motivate employees and vendors to change things up. Everything should be included in yearly reports. You need to get the entire picture here.

Final words on financial reporting:

With many small business owners, financial reporting is an emotionally disturbing experience. Even if the reports are good, they are still disturbing. That’s because financial reports bring you down to reality. It clearly, in black and white, lays everything out there. All the little areas you thought you were getting away with cannot be hidden…and it hurts.

The best tip to get you moving is to view these reports as tools you use to move into the future. They are not emotional attacks on your character…they are the periscope you use to get a look around and move forward. And the more time you spend looking through it, the better chance you have of navigating through these rough waters we call the modern market.

 One of the oldest investing axioms is to diversify your investment portfolios. The basic thought is to protect your income by spreading your risk across several different companies, industries and/or currencies. Couldn’t this same strategy be used in our decision making processes?

Portfolios: 

Here’s my case…

When a kid touches a hot surface for the first time, that experience is registered in their portfolio. Now, if they never have a surface-touch interaction again, that first experience carries 100% of the experiential weight. They will go through life, thinking all surfaces will be hot. As that same child touches more surfaces (hot, cold, rough, smooth), he/she grows their portfolio of experiences and increases their range of decision-making ability.

I’m calling this an “Experiential Portfolio.”Experiential portfolios are the groupings of experiences we use to make decisions.

Should We Be Intentional? 

If you want to make good decisions, and you agree with my premise, wouldn’t it make sense to attach a high level of value to what you experience? And if that’s true, shouldn’t we be very intentional with what we experience? This type of thinking is very similar to smart investing. We need to choose the sectors of experience that have the most potential to yield the highest value.

If you want be a golfer, surround yourself with new golf experiences. Any one interaction won’t be enough to get to the pros (if that’s your goal); much like touching one surface can’t teach a child about all surfaces. But, combine years of golf-related experiences…then you have something.

I’m going to be thinking about this for a while. Any input into this idea would be welcomed. It may increase my own experiential portfolio. Send me an email or talk about it on my Google+ page.

The creation of value is a pretty topic. Value is a lot like beauty…it’s in the eye of the beholder.

I might think Twitter holds tremendous value, while you may not give a flippin’ tweet about it.

That’s fine… While we may not always agree as to what is valuable, there are absolute ways to NOT create value. Trust me. If you do these five things, you’ll be the antithesis of a value creator.

#1: Watch A Whole Lot Of TV:

We all like to be entertained. Sometimes work, school, kids and bills are so pressure-inducing that escaping to the world of #House, or #TheOffice, can be good for you (and everyone around you). But, we’re talking about CREATING value. When you’re consuming another person’s creation, without modifying it, you have no way of creating value.

#2: Have A Bunch Of Ideas and Zero Action:

Everyone likes the dopamine rush that comes from a new idea. And, when we have those ideas, we can’t wait to rush off and…talk about it. Being as fun as it is, talking about it just doesn’t carry as much weight as actually DOING something about it. And, just talking about something can be counter-value-creating. When you’re just talking about it, you’re wasting the time of the listener.

#3: Criticize Other People’s Attempts:

Words carry a lot of weight. And when you criticize, gossip or laugh at someone’s attempt to create value, you are spreading poison. You have released an idea-hitman into the streets. To an entrepreneur, you are a terrorist and your words have just become IEDs.

#4: Always Be Fearful:

Attempting something new is always scary. A sure-fire way of keeping new value at bay is to listen to your fear. Fear is a seductive emotion. Pay too much attention to it and it will lure you into intelligent paralysis. You’ll end up sitting on your butt, bragging about how smart you are.

#5: Give It One-Half Your Effort:

A great way to put a big stop on any type of value is to give less than 100%. People who create things get there by busting it. If you’re one of those people who won’t put all your effort into what you’re doing, you’re not going to produce value. Worse… You’ll probably produce a wake of half-complete jobs and a life of regret.

When you want to live a life of value-non-producing, do these things. They are 100% guaranteed to work. You will not get any closer to producing value, opportunity or innovations. If you can think of other ways to not produce value, let me know on twitter.

Understand yourself:

We are all different. That means we all have different things that capture our attention, inspire us and keeps us going. It’s important to begin by reflecting on what motivated you in the past. What was behind you accomplishing something that you thought was impossbiel? What made you take that risk? What fueled you when you wanted to give up? Answers to these questions will uncover your unique motivation “Sweet Spot.” Be creative, what works for some people may not work for you.

Use the morning to think:

Too many times we get through our day without processing. Our brains were made to register and recall what it has learned. It is impossible to do this basic function when we are hurrying through our day.

Use your mornings to reflect on what you’ve done and what you’d like to do. Gaining deeper levels of understanding will increase your ability to see situations for what they truly are. Use this time to find true insight into your life and gain a clearer picture of what is going on around you. You might have to wake a little earlier, but the results could be astounding.

Understand Contexts:

Your day is can be little minefields. One moment, you’re walking along, enjoying life, and the next, BOOM, you’re out for the count. Much of what life throws at you is unavoidable. But you can prepare yourself for inconsequentialdemotivators. Discipline your thoughts to identify contexts of situations and how each situation relates to you. Remind yourself of what’s really important and keep going. So when someone criticizes your idea, or mocks your performance, you can move forward.

Pick the BEST friends:

We all rise to the level of our piers. One of the best ways to protect your drive is to surround yourself with people who are doing, or have done, what you’ve set out to do. If you want to climb mountains, find as many seasoned mountain climbers as you can and be around them. If you want to make more money, find out where they spend their time and go there. You may hve to change social groups, join a club or something completely different. But the more you expose yourself to the people you want to be like, the more likely you’ll actually do it.

Get Sleep:

It’s basic. Be rested. You’re reaching outside of your area of comfort. When we are tired, we are more irritable and vulnerable to defeat. Protect your future success and get enough sleep.

Life is fluid. It always changes. What we think will happen, usually does. As you move with the flow, remain committed to what you know you should. Life is amazing. Live it while you can…the best way possible.

A couple hours later I got an email from them, thanking me for my thoughts. It started out just like every other auto-responder would. “Thank you for your email… blah..blah…blah.” But the message went on to tell me they’d like to send me something and asked if I liked hats or shirts.
I told them hats…
I hit send…
I didn’t think anything else about it…

A week later, a package came in the mail. It was a Pandora hat. How cool is that (how many people have Pandora hats)? Included with the hat was a signed letter and an invitation to write them any time. A pretty extravagant response for letting them in on a bad idea.
Let me remind you…my idea was not the best. Because I knew they weren’t thanking me for ingenious idea, they must be sending me this stuff for one reason alone. Their company takes customer interactions very seriously.

That’s it.

This has kept me thinking for a while. When a customer takes the time to interact with your company, that customer is giving you something very special…the chance to be invited into their life. Doesn’t it make sense to treat every interaction (I like to call them “touches”) as a prime opportunity to make a lasting impact? It’s obvious Pandora takes this very seriously. Shouldn’t your organization? Wouldn’t it be smart to have a preset way of thank customers who intentionally go out of their way to “touch” your company?

What would that look like for your company? Do you think it would make a difference?

To start the discussion on the importance of accountability, we must first consider its definition.

Accountability: an obligation or willingness to accept responsibility or to account for one’s actions

In today’s busy marketplace, it’s easy to get caught up in the “daily grind.” This means we can lose track of our actions and the effects they can, and do, have. For that reason, being held accountable is essential to prolonged and ethical performance.

A short story…

There was a contractor who did not require accountability from all employees. The “daily grind” mindset kept managers away from how details were being managed. They just trusted everyone would operate the way they know they needed.

This flimsy style of management continued operating in an accountability vacuum, until auditors, creditors and suppliers begin to call more frequently with problems. It later was revealed that the books were not being kept correctly and the company was in serious financial trouble. It took months of repair and hours of legal counsel for the company to be set straight. It will be years until the company sees gains as they had experienced years earlier.

What’s the real issue?

If you were to glance over this situation, you’d think their problems were the result of poor bookkeeping, or mismanagement of employees. But those are only symptoms of a much deeper problem. The reason why companies have these types of problems, usually, is a direct result of the absence of accountability.

It could have been avoided…

If we were to rewind the clock and establish clear lines of communication, reporting and authority, chances are, this particular company would not have fallen into such serious trouble. Establishing a culture of accountability can mean the difference between profit and bankruptcy. It’s not about exerting authority inappropriately. It’s about recognizing the importance of allowing the company to operate as smoothly and soundly as possible.

What about you?

Is your company operating with accountability? As you continue to lead your company, take a moment to examine how your employees and/or team members are held accountable for their actions. Is it easy to communicate, when there is a problem? Is performance being measured? Do your people understand what is expected of them? These questions seem simple enough. But for many organizations, they have not been considered. You may be leading one of those companies.

Where to start…

There are numerous financial, legal and logical reasons to establish accountability in your organization. But the main reason should be…because it’s the right thing to do. If you’re not sure where to start, begin with yourself. Referring back to the definition…you must be willing to accept responsibility and account for your actions. Once people see leadership holding themselves accountable, a culture of accountability will follow.

Yes, these are big changes. Yes, the decision was hard. But, in making the decision there was an incredible learning experience, giving us insight that would not have been available to us.  Not only was the experience filled with countless debates, numerous pro and con lists, several budget reworks, but it really forced us to examine our lives, our faith and personality.

It’s reasonable to assume that, at some point, we all have to make huge, life-changing decisions. But, we all know that those types of decisions will be few. Most of our lives will be filled with day-to-day work, savings and holidays. Because life-changing decisions are so novel, I think it might be of some value to someone to talk about a few of the realizations behind my decision to make a risky move.

We are all risk averse. It’s about context.

I’ve always considered myself to be someone who has no problems taking risks. I’d talk a good talk…that’s all…talk.  But, as soon as I was faced with the decision to move or stay I became very, very risk averse. When everything is on the line, everyone gets a little fearful. If you have any chance to really take that next step, you have to get a new perspective. 

As I was experiencing the fear, I knew it wasn’t right. I knew fear can be seductive and easy to live in, making people feel smart as they accept a less-than scenario. But, I just couldn’t shake it. It was too much. The fear began when I thought  about income, housing, friends and all the things that I could lose. I’d focus on the potential loss so much that I couldn’t see any positive. I didn’t consider the market, long-term benefits or the idea that starting over could be more profitable. I just couldn’t see any other scenario where I didn’t loose everything. I was stuck at the horror floor. 

Reviewing who we are, in the light of a new year, is as much of a tradition as it is a part of our human existence. How many times have you marked the ending of something and the beginning of another by a certain event in your life? By choosing New Years Day as your starting point, you are continuing a noble tradition passed down throughout the generations. However, if you don’t take the time to prepare, you set yourself up for failure and regret.

The real point behind marking a specific day (like Jan 1^st) is to create a milestone, a point upon which you can look back and identify as the beginning of…something. This “something,” usually, has specific importance to your life and can be, appropriately, marked by a specific day.

Stereotypical…yes…but, by making Jan 1^st the start of your journey to accomplish your something, you are continuing to hope for a better life. It doesn’t matter how many resolutions you’ve failed to stick to. What’s past is past. Kindling the hope and desire to bring your something into fruition is where real change happens.

To start things off right, here are a few ideas you can use in your pursuit of something.

1. Fully understand why you need to change:

We all have something that we need to change in our lives. But, before we start showing our strength and how white our knuckles can get, we need to understand what needs to be changed and why. If it’s an addiction, understand the effects of that addictions, it’s source, causes and side effects associated with withdrawal. If it’s a specific goal (climbing a mountain, running a marathon, getting more sleep), research your goal, understand what needs to be in place and have an idea of how long it should take.

2. Set reasonable time limits:

When celebrating the New Year, there is a sense of optimism that acts more like a drug than anything else. Although it’

s exciting to romanticize about all the possibilities your future life will bring, if you fail to plan realistic milestones, you WILL run out of steam and, ultimately, fail. Use the knowledge you gained from understanding and plan a workable, measurable and realistic way to achieve it. You know how your life works. You know what you’re capable of. Use that to your advantage through smart planning.

3. Reward yourself:

As you move forward and reach your milestones, be sure to reward yourself. Give each step in your progress its own New Year’s party. It doesn’t have to be much. But, it does have to be something that you look forward to and enjoy. With each reward, you mark the passing of another phase and reinforce your commitment to the next.

4. Find your role models:

We all need people to look up to. Chances are, there is at least, one person who has been through the change you want to see happen. Find that person and learn everything you can. Find out about the hardships, the unexpected consequences and the mindset that that person had to have to get to where you want to be. These people are never perfect. But, they could give you insight into what to expect and help you get through the tough times.

5. Go easy on yourself:

Nothing worth having is easy. You’ll have to work at it….hard. If this is something you’re serious about, you’ll have to be prepared to go toe-to-toe with your weaknesses. Don’t get hung up on your setbacks. Let them happen, understand why they happened, have a plan to get through the next time. Most importantly,  get on with your life. Dwelling on how you don’t measure up, is the quickest way to giving up. We all don’t measure up…that’s why we are all trying to change. The faster you can get over your setbacks, the quicker you can get to your goal.

This New Year can be your best yet. As you put these suggestions to use, you’ll start to see yourself grow closer to your goals. Of course, these are just a few pointers. It’s up to you to find the tools that work best for you. The important thing is that you give it your best shot and keep working…no matter how hard it gets.