Interpersonal Business

Vol. LII

Dear Manager,

In last month’s issue I began sharing some of my experiences relating to the sale of my agency. This month, I will share some final thoughts regarding the decision, the process, and the outcome. I hope that this window on my experience will assist you in some form in the future. These letters would have come in handy for me a year ago!

There were four very clear and obvious factors that played into my decision to proceed with the sale once the financial aspects were finalized: technology, resources, efficiency, and our collective future. As referenced in a recent issue, technology and our ability to adapt are the driving forces for all industries.

As it relates to the future, technology is a direct reflection of the capacity issues on which we all bump our heads. There is no opportunity to expand the hours devoted to our profession and still retain any semblance of quality of life. We can all assume additional responsibilities, we cannot create the additional hours to meet the task. It became increasingly clear that to remain competitive in the marketplace and retain the standards of performance established by our organization, this was our future.

It requires tremendous resources to provide the technology necessary to address these capacity issues. Other industries have approached this reality and its challenges in different forms. There is only one sacred cow, and that is service, period. To insure its continued development, we must respond to the challenges or accept the risk of mediocrity in the marketplace. Those who take their eye off of service, regardless of form, are destined to a similar fate.

THE CLOSE

My memory suggests that there were at least ten confirmed closing dates for the sale. We were all confident that, each time, these dates would be met.

The final stages of any transaction demand patience and give-and-take from both parties. With so many individuals involved, the potential for misunderstandings is immense. I was fortunate to have the assistance of talented legal and accounting professionals at my side. There were easily 200 pages of closing documents, in various stages of revision, each requiring review, analysis, and response. While I enjoyed the hunt, I often found myself too close to retain objectivity.

Weeks in advance, I scheduled a meeting for early December to announce the sale to our associates. Two days prior to the meeting, it became clear that the announcement was premature. The evening before the meeting, I created a completely new agenda. I could only hope it would be received favorably, and that the time would be well spent. The sale closed in mid-January.

THE ANNOUNCEMENT

In the weeks prior to closing, our staff met diligently to anticipate and discuss any concerns that might arise from the pending announcement. Would our associates feel threatened? Would they question my decision? Would there be disappointment? Would they quit!? I prepared detailed letters of announcement to be faxed on a Wednesday afternoon. This would allow for evening discussions among our associates, and two full days for fielding calls in the office. We cleared our schedules in preparation for a hectic following day. Another deep breath.

Thursday morning came, and Thursday afternoon followed right on schedule. We received three calls, all with the purpose of sharing congratulations. This was the single greatest surprise of the entire
transaction! I was dumbfounded by the lack of response. Once again, I realized I was too close to the transaction to fully understand what the reaction would be.

A CHANCE TO BEGIN AGAIN

A second meeting was called to introduce our associates to the new owner, OneCoast Network. Their candid and direct approach was refreshing to all who attended. The associates appreciated that all questions were answered with as much detail as possible. Having purchased fifteen other agencies, we benefited from having the structure fully in place for our meeting. As experienced buyers, they understand that there is not a lot to fix with their agency partners. This single factor has allowed us to gain confidence in the process, and continue to look forward to additional opportunities.

In the weeks preceding, and even more so after the sale, I came to the conclusion that it was time to surrender to my wanderlust for new challenges. This could only be implemented in an environment of confidence in both my future and that of the organization. With the support of OneCoast, it was planned that I would retain my position until such time as a very qualified candidate could be found and incorporated into our organization.

We found the perfect individual and personality within our industry to assume this role. Currently managing a second successful OneCoast agency in the Northwest, Scott Wales was up for the challenge. With the resources of OneCoast, Scott has been able to relinquish most of his duties to his current management team to bring focus to our organization. Weeks of meetings, conversations, analysis, and planning for the future have had a very positive conclusion. We agreed that much of the past culture should be retained. Two of our key staff members have been promoted to assist in Scott’s efforts.

While I have stepped down as Agency President, I will continue to lead the transition team we have established for the next few months.

As expected, the energy that Scott brings to a new endeavor has been good for both Scott and the future of this agency. His style, and knowledge of this industry, have brought a very fitting closure for me as well. My wife Sally (company mom and head cheerleader) provided me with tremendous guidance. It could not have, it would not have, worked out as it did, without her love guidance and support.

I have prepared for this transition with a sense of enthusiasm, anticipation, and a desire to tackle the unknown. After a short break, I will be available to assist both Scott and OneCoast on a limited project basis as they see fit. The training, marketing and product aspects of this industry have always captivated my interest. On occasion, I hope to assist factories and agencies on a project basis as time and interest allows.

I look forward to enhancing my writing skills, continuing to write INTERPERSONAL, and completing a manuscript relating to the topics presented in INTERPERSONAL. My love for real estate will continue, as it seems to have no limits to its potential in this area. Most of all, I look forward to enjoying Sally and our wonderful marriage. With four kids in college this fall, I will keep busy. I will now have more time for each of them, and for giving back to the many that have made this stage in my life possible. I hope to keep in touch with all the wonderful individuals whose relationships I value.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LI

Dear Manager,

Selling something that has been a part of one’s life for nearly thirty years is certainly an emotional challenge. The process takes months (if not years) to bring to a conclusion. This gives one ample opportunity to pause and reflect on the decision! There are many exit doors along the way that, at times, seem very appealing. In the end, it finally comes down to the required signatures. Fortunately, this decision was clear. The signature felt good.

I believe that the decision to sell one’s business comes over a period of years. In my instance, I had clarified my desire to assume new challenges and responsibilities. There have been many rewards in developing this organization, but it is the people who have brought me the most pleasure. They have and will continue to make this company what it is. In sales, it’s always “where the rubber meets the road, and the quality of the individuals behind the wheel.”

The question in my own mind became, “If I’m feeling the wanderlust of new challenges, am I still the best manager of this organization?” How long could I maintain the level of excellence that all aspects of this agency deserved? I resolved to continue to give it my best effort until the last day and, with a tip of the hat, there would be no regrets.

THE DANCE

The early stage of selling one’s business is not unlike a mating dance. Do you want me? Do I want you? Do you want me more than I want you? How much more do you want me? If for no other reason, the interest displayed and the strategic knowledge to be obtained, were intriguing.

It was my very naive assumption that once the dance was over and the selling agreement was complete, it would be time for a good night kiss. This is not how the selling process works. It is only after the signing of the initial selling document that the specifics of the sale can begin to be ironed out.

A SAFE HARBOR

From the very early stages of conversation, one watches for mine fields in the intentions of the purchaser. Just as it was their responsibility to look into our organization with a skeptical eye, it was my responsibility to do the same. This organization would not be sold at any price without a consistent confidence that a transition would be in the best interest of all parties related to this organization.

I proceeded with a great deal of confidence in the integrity and capabilities of the buyer. In a very short time, it became clear that their resources clearly exceeded my own abilities to continue to meet the growth needs of our agency. A safe harbor had been found.

THE SECRECY

Without any question, the most difficult factor in this process was the secrecy involved. Only very few could know of the option under consideration. After all, at this point it was only an option. Nothing was final until all elements of the sale, transition, and due diligence had been reviewed, adjusted, and signed. This is a very time consuming process for both parties. I also discovered that it was indeed possible for most of the key players from both sides (myself included) to inadvertently schedule back-to-back-to-back-to-back vacations!

To the great frustration of all parties involved, it seemed as if nothing was completed within the anticipated time frame. There were many instances when the possibility of the acquisition falling through was very real. The personal pressure of the secrecy continued to build. Even those I trusted and who trusted in me could not be told, due to standard confidentiality agreements. This aspect was hell, and the most difficult and emotional part of the entire process.

THE UNKNOWN

During the weeks and months of participating in this process, I wrestled with the anxiety of not knowing if the transition would ultimately take place. Looking beyond the sale was totally prohibited. If I were to do so, my eye would be on the sale and not on the many priorities of growing a business. With one call I would discuss my agency’s future planning and programs, with the next I was negotiating a conclusion to my ownership. This is a very, very difficult emotional balance to maintain. Fortunately, I continued to enjoy many aspects of running this agency.

It was in the midst of this already intense and emotional process that one of our largest manufacturers decided to retain their own national sales force. Just what the buyer and I needed to hear! In full credit to the prospective buyer, they did not bat an eye, or suggest that any value had been lost. I knew at this point the depth of their commitment to our agency. I also learned a lot about their integrity.

I did not want this transaction and its announcement to be tainted in any way by the loss of this manufacturer. The confidence our associates showed in our agency and in me was one of the most fulfilling aspects of this process, let alone in my 28 years with the agency. My staff and I now had a mission. In the first two weeks, we mailed out over 100 inquiry letters to major manufacturers. I knew it would only take one. If you buy one hundred lottery tickets, one’s bound to be a winner!

Within weeks, I met with a manufacturer that was tailor-made to meeting the mutual needs of our two organizations. Fortunately I was able to fully replace the volume lost … exhale.

DUE DILIGENCE

It is in this phase of finalizing an agreement that the purchaser has every right and responsibility to expect the seller to “drop his trousers.” All too often, a seller will try to shade the truth, disguising what lies hidden just beneath the surface. The buyer and seller must proceed with obvious caution and an eye for detail and inconsistencies.

One of the most interesting challenges was the preparation of our financial documents. Our business had operated on a cash basis for nearly thirty years, so I found myself totally ill-prepared for a buyer who rightfully expected to review our books on an accrual basis. There was no possible way to send our bookkeeping into rewind to conform to this more complex accounting practice. This situation required additional review and re-review by all parties involved. I found myself having to learn to discuss the financial aspects of my business in a whole new (foreign!) language.

Editor’s note: Next month’s issue will review the technology aspect of this decision, the final negotiations, the importance of professional assistance, the big announcement, and a few words about my future plans.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. L

Dear Manager,

Whether raising a child or running a business, I believe there is a tendency in the early stages to give too much.

All of us have experienced the joys and rewards of giving. We have also wrestled to regain a balance when we have given too much. By nature, we want to create a better environment for those around us than we may have had. If we were deprived, (or felt that we were deprived), we want to bring pleasure.

We have all seen parents who have provided the trappings of excess. As these children become adults, will they have the skills and motivation, much less the desire, to create their own foundation for success? With only good intentions, we have all, at some point, insulated those around us from the difficult and painful aspects of life. Have we sold the future for the difficult decisions and mixed messages of today?

In the process of creating that “better environment,” I believe we have the potential to establish a reality that can’t always be lived up to. And if it could, would we want it to? It can be very hard to say no, especially if the resources and desire are available to say yes! This is the balance I am referring to, this is the balance that troubles us all.

THE PEDESTAL

As managers, we foster the perception of being in control, in tune, and on time! We are looked up to for guidance, support, understanding, and confidence in the future. Being looked up to feels good! For some we manage, this can also become a crutch. It can lead to an attitude of, “So how are you going to fix my problems?” This reminds me of the child who has just spent their lunch money on arcade games then whines, “But I’m hungry!”

Without question, managers hold a very serious responsibility in creating an environment for success. There will be challenges, setbacks, and disappointments. Our responsibilities as managers are equal to those of the individuals who have chosen to be associated with us. All working relationships are based on mutual choice. Mutual benefit must also exist for any relationship to succeed.

BEING ON CALL

Being a manager is also a choice. It comes with trappings, it comes with responsibilities. This includes not giving too much of oneself. I know managers who have lost all sense of self-worth, as they have sold their soul in order to meet excessive demands. With instant communication available on the cell, online, or vibrating on your belt, when is your life your own?

At times, I am discouraged by the pace we have all been thrust into when technology runs amok. Even when we carve out “personal time,” there is pressure for all of us to stay “on line.” I worry that these pressures have become commonplace and will ultimately become the standard. Being available “24-7” simply can’t continue. I speak from experience.

There have been times in my career that, in retrospect, resulted in little fulfillment and even less productivity. Soon my objectivity, enthusiasm, and energy were simply not at their best. While I could point fingers at the time, only I am responsible for my choices and the outcome.

MORE BALANCE

Have you trained those who look for your guidance and direction to expect that you are available regardless of your personal time and needs? Do these individuals now expect the world to revolve around their sense of urgency relating to you? If you do not hold this aspect of your life in high regard, do you expect others to do so on your behalf? Do you hold a standard of mutual respect for the personal time and privacy of others? I learned a number of years ago that there is very little that cannot wait a day.

I recently read an article relating to the number of managers who have left their profession to “regain control of their life.” High quality individuals are leaving our profession. I am convinced that these individuals have simply never learned to say no. They lament the pressures of management, the lack of quality time for themselves, the stress that has besieged them. It may be easier to walk away from ones career than it is to address the issue. Management holds equal parts of fulfillment and necessitousness (is this a great word or what!), only if we take back control.

My goal in this month’s issue is to stop this snowball in so many individuals’ careers before it is too late. We will only survive as managers if we are willing to assume full responsibility for our personal happiness. It is no one else’s responsibility, there is no shared blame. Management is what it is, our future and destiny are, very simply, ours. We have the ability to save something for ourselves; it is our responsibility to not give too much.

With balance, our careers will flourish, those who are most important to us will enjoy our company, and we, as managers, will enjoy the objectivity to perform at a much higher level of personal satisfaction. This is a difficult transition. Will some individuals misunderstand these objectives, and others be threatened by your intentions? You betcha! Then again, it is survival.

Our local paper recently ran an article about a local developer who had accumulated substantial wealth and power. Though his comments focused on his belief that all excess wealth should be given back to those in our society with real need, they apply to broader aspects of life. “We are doing the greatest disservice to those we care about the most,” he said, “ if they are given a free ride. What personal growth or satisfaction is gained from receiving too much?”

We all have a responsibility to not only give of ourselves, but to save something for ourselves. In an odd sort of way, this reminds me of retired people who refuse to live life to the fullest in order to retain their nest egg for their children. As managers, we must realize the difference between creating opportunity and guaranteeing the future. While somewhat extreme, Wayne Dyer has always enjoyed sharing a favorite tongue-in-cheek quote: “I don’t believe in life insurance … I want it to be a real tragedy when I die!”

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XXXXIX

Dear Manager,

Most of us began our careers with an entry-level position. More than any others, these two qualities were likely to have impacted our future growth and success. Talent and knowledge pale in the face of …

INITIATIVE

From a manager’s perspective, I can’t think of a greater quality to bring to one’s career. While there are many individuals with initiative, there are far more without. Initiative demands a strong understanding of one’s own position, its relationship to the whole and, most importantly, an awareness of one’s fellow workers.

These individuals are the Radar O’Reilys (of M*A*S*H fame) of the working world. They are simply aware. Their job description is transcended by their desire to accomplish tasks, whether or not it is “their job.” They are consistently one step ahead and resourceful. Rarely are these individuals looking for outright recognition. Their satisfaction is personal, and comes from meeting the needs of the organization.

Typical of these individuals is, “I noticed that you’ve scheduled a meeting for next week. I ordered extra note pads, pastries for the morning break, and will make sure that the conference room is ready.” They do all of this without being asked because they pay attention.

When surrounded by initiative, it allows a manager’s position to shine. These individuals become indispensable, regardless of current internal business trends. In fact, the tougher it gets, the more valuable they become. These people aren’t clock watchers. Their higher purpose is to get the job done, and then some.

As they continue to grow within their own position, they assist others. They are very keen at learning the skills of others, with no desire for credit. Showing an awareness and understanding in the skills of others, they are first to be recognized for new positions that may become available. Their abilities will also challenge others to be at their best.

The contrasting situation for any manager is the individual who simply takes no responsibility for tasks beyond the norm. As managers, we must now consistently define responsibilities that can be accomplished without our need to know. Being responsible for our own day, in addition to the day of those around us, becomes a real drag. Worry creeps in as we speculate about the important functions that may not have been accomplished by those around us. Is it really easier to do it all?

I’m sure we’ve all been on both sides of this equation. We must continue to reach out for those individuals with this very intuitive quality. In application, it simply doesn’t get any better! You might be wondering what more we could possibly ask. How about a strong sense of

AMBITION

I believe ambitious individuals, and often those with strong initiative, have gotten a bad rap in recent years. If you are labeled as ambitious, it suggests to some that you are willing to trample your peers to attain your ultimate objective. I am not referencing this aspect of blind and self-serving ambition.

Ambition, like initiative, can be highly productive and positive. We have all heard of the high-level manager or owner of a business who began by sweeping the floors. This person’s goal wasn’t to just clean floors, it was to be the best sweeper in the Floor Sweeper Hall of Fame!

Even I would have a hard time in swallowing it if you believed this individual had a vision of one day being President of the company. Was this person’s sweeping expertise noticed by those in a position of authority? Did this individual rise over others with greater tenure and less ambition? Should this person have apologized for having been of greater value to the company? Should this person have recognized “their place” and remained forever satisfied with a role as a sweeper?

Those with positive ambition are sensitive to their surroundings. They have the ability to bring out the best in themselves and in others. They lead by example rather than at the expense of others. They are often the first to recognize high achievement in others. Those around them either see a similar opportunity for themselves, or grumble their way to self-imposed mediocrity.

Perhaps being an overachiever is the best way to describe these individuals. Those who see these individuals as “brown nosers” simply don’t understand the mind set of an overachiever and never will. These individuals listen to a different voice, one deep down in their gut.

Most of us grew up working for someone. With good fortune the die was cast relating to these important qualities. We all learn best by example. As managers we can assist in their development, but there has to be a receptive student for these qualities to find a home…

The passion to advance and take greater advantage of one’s skills is inherent to success. While as managers we hold the torch, we must not compromise our own standards to accommodate the lowest common denominator. I believe initiative and ambition are two qualities that are rarely addressed in an interview or in the ongoing training process of our
staff members. It is as if we simply sit back and hope that these qualities will reveal themselves.

I believe it may be time for all of us to address these skills in very specific terms and surround ourselves with those who understand. Address their importance by emphasizing them as fundamental qualities that are routinely expected of their position within the organization. Think ahead of the game – there is no greater way to get noticed. Simply putting in one’s hours, and taking little responsibility for one’s position relating to the whole, is not good enough in today’s world.

On an ongoing basis, we must continue to acknowledge, reward, and promote those individuals with initiative and a positive sense of ambition.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM