Verne, NPS, and 2 Cool Things
If you aren’t subscribed to Verne Harnish’s weekly email, do it now. He routinely shares compelling stories from fast growing companies (Gazelles), and shares the strategies, tools and tactics they use to be great.
Cool thing #1. This week’s edition discusses Net Promoter Score and a Gazelles online seminar that I plan to attend — after I hear Amy Case’s presentation “NPS Demystified” at our CEO Retreat on April 26. We have tracked our NPS for several years, but have not implemented an NPS strategy.
Cool thing #2. Larry Weinberg, the CEO of BOWA, the construction firm he highlights in this issue, is a high school classmate of mine. I haven’t seen him in thirty years, but I had the misfortune of being in his weight class in wrestling. Think muscle-bound, wrestler-tough guy vs. very skinny boy scout. Anyway, his firm BOWA is averaging an NPS of 97 in 2012, after booking a 93 for 2011. This is simply unheard of. Most companies score below 50, and the 80s are for the very few, like Apple.
By the way, NPS for the VA Council of CEOs, measured just this month, is 79. Not too shabby. But … Larry is still beating the crap out of me!
CEOs to focus on “The Top Line”
This year’s CEO Retreat addresses “The Top Line.” After several years of getting lean and mean, top line opportunities are there for smart, focused business owners and CEOs. Keynote presenters will include sales guru Jack Daly, Net Promoter Score expert Amy Case, and economist Alan Beaulieu. As always, the CEO Retreat will offer equal time in small groups for peer exchange and learning.
More than 100 VA Council of CEOs members are expected at the annual gathering, April 25-27 at Kingsmill Resort in Williamsburg. See more details here.
CEO Profile: Edward D. Barlow II
Born and raised in Richmond, Edward D. Barlow II is President and CEO of Atlantic Corrugated Box Co., Inc. He attended Mills Godwin High School and received his undergraduate degree in Marketing Management from Virginia Tech in 1990. As a boy, Edward spent summers and extended holidays working for the family business learning the art and science of creating quality corrugated products. After graduating from Virginia Tech, he joined the firm full time and, in 1991, began purchasing the operation from his family. In 1992, Edward succeeded his father as President and CEO of the company. Today Edward owns the business, which is located in the City of Richmond, employs 25 people, and specializes in the manufacture of corrugated packaging and display products for a wide array of industries.
What makes your company unique?
Flexibility. Our employees recognize that every business is different. We develop a true understanding of our client’s businesses, and this allows our team to provide product and service catered to their particular needs. Our philosophy is simple: Quality products and extraordinary service — every customer, every time.
In your opinion, what are the most important characteristics of a good leader?
Integrity and accountability. Integrity is the basic building block for any good leader. It allows a good leader to remain accountable for his or her actions and decisions. It promotes fairness and consistency, and encourages an individual to lead by example. Integrity is essential in maintaining trust among your employees and your clients, and supports growth and prosperity within your organization.
What’s the best business advice you’ve received?
I credit my father with offering long-lasting advice and instilling core values I use to guide the business today. My father taught me not only to only make commitments I could keep, but to have the wherewithal to deliver on those commitments with extraordinary service. He also encouraged me to run a debt-free business, which has proven to be essential in tough economic times.
I can’t get through the day without…
Exercise or some type of activity that relieves me from the daily grind.
Best Virginia business dinner
Old Original Bookbinders
Guilty pleasure
Pizza
Name 3 things that made you happy this week
A close friend of mine was recognized and honored by the Valentine Richmond History Center. Not only did it make me happy, it inspired me.
I had a great workout yesterday — then ruined it by eating a pizza from Pie in the fan. Enjoyed every moment!
Our business was awarded a significant contract this week in the tobacco/packaging industry that will have long-lasting implications for our employees and associates. We are truly blessed.
Tell us about a rewarding on-the-job experience or moment.
I recently had a client request the development of a counter top display to both structurally and graphically enhance and sell his product in a retail setting. This client had significant experience with typical packaging products used for shipping purposes, but had no history or experience with point-of-purchase displays. Despite our daily communication, the client became increasingly agitated and dissatisfied with the amount of time it took to develop each phase of the product. He showed clear signs he was losing faith in the project and in our ability to deliver on our commitment. When the finished product delivered to his facility on time, he immediately opened the units to inspect his counter top displays. He and his entire staff were so thrilled with the final product that he took the time to call and leave a message praising our team on a job well done — along with an apology for doubting our abilities. His message was articulated so well, I saved it. I know there will be an occasion when I need to rejuvenate my team, and this message will be the perfect antidote. And though his voicemail was reward enough, as it happens, we’re designing his floor display now. Icing on the cake!
What’s your biggest challenge as a CEO?
It goes without saying that tough economic times are challenging to most CEOs, myself included. Today, I consider that to be my biggest challenge. In better economic times, I become stagnant and forget to challenge myself — especially in the area of accepting or embracing change. Occasionally I face challenges in dealing with personality conflicts among employees. This is a challenge I wish I could do without entirely.
How do you define success?
Balance. Striking a healthy balance between business, family, and community affords an individual the ability to deliver his or her best. Ultimately, this will provide success in whatever it is that’s being measured.
There’s a front page story about you — what’s the headline?
I would prefer not to be on the front page, but tucked away in the business section being recognized for an achievement in business or community involvement. If I had to be on the front page, maybe it would say, “Ed sold the business and moved to Italy, even though he never learned the language.”
Daily reads
Richmond Times Dispatch
RichmondBizSense.com
Snack craving
Apples and bananas
First job
Dishwasher at L’Italia Restaurant
Built To Sell, At the Best Price
Every business owner should be building their business to sell, at the best price, whether they wish to sell or not. That is the upshot of two upcoming Virginia Council of CEOs programs.
On August 18, entrepreneur and author John Warrillow will present an interactive, two-hour workshop based on the ideas in his book Built To Sell. Until your business is built to sell, it’s just a job you can’t quit. John will show business owners how they can pull themselves out of the day-to-day grind of their business and create a company that will thrive without their constant care and feeding
Uber-entrepreneur Karen Booth Adams (CEO of Hot Technology Holdings and The Fahrenheit Group) will speak at the Council’s Quarterly Luncheon on September 14. Over the past 17 years, Karen has led ten successful Richmond start-ups and the exit of 4 of those businesses. She will share her experience about what you can do now to increase the value of your business, and her most valuable lessons about how and when to sell your business, and what to expect throughout the process.
Both events are for business-owners only. You can find out more and register here.
SMB CEOs’ Economic Outlook Dims
FOR IMMEDIATE RELEASE
June 28, 2011
Robins School of Business –Virginia Council of CEOs 2nd quarter survey finds continued uncertainty about business, economy for the next six months
For the second straight quarter, CEOs in central Virginia have shown a more pessimistic view of business and the economy looking ahead six months, according to the 2nd quarter 2011 CEO Economic Outlook Survey. The findings are in contrast to CEOs’ relative optimism in 2010.
The survey reveals that top executives of small and mid-sized companies anticipate either unchanged or decreased capital spending and hiring. Slightly more than half predict increased sales for the next two quarters. And results show that “economic uncertainty” is the most significant business issue CEOs face today, ahead of rising energy and healthcare costs, staffing, financial issues and political uncertainty.
The Virginia Council of CEOs and University of Richmond’s Robins School of Business jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth.
“This is a clear indication that the current mindset of the CEO is to proceed with caution,” said Scot McRoberts, executive director of the council. “We are seeing good growth in a few sectors – health care, IT and staffing particularly. But, there is not a lot of confidence in either the overall growth of the economy or what Washington will do in terms of taxes and regulation.”
The following survey results, from the 2nd quarter 2011 and the 1st quarter 2011, show projections for the next six months for sales, spending and employment:
| 2011 Q2 | 2011 Q1 | ||||||
| Increase | No Change | Decrease | Increase | No Change | Decrease | ||
| How do you expect your company’s sales to change in the next six months? | 54.7% | 32.0% | 13.3% | 69.9% | 21.9% | 8.2% | |
| How do you expect your company’s U.S. capital spending to change in the next six months? | 31.1% | 40.5% | 28.4% | 28.8% | 56.2% | 15.1% | |
| How do you expect your company’s U.S. employment to change in the next six months? | 39.2% | 50.0% | 10.8% | 39.7% | 52.1% | 8.2% | |
The council and the Robins School collected responses from 75 business owners and CEOs in central Virginia. The average annual revenue year-to-date for CEOs responding was $3.3 million. The data was compared to the 1st quarter 2011 survey, which consisted of 73 participants. Multiple industries are represented in the sample (for example, construction, manufacturing, finance and insurance, and retail).
“What we see in these current data, relative to the previous quarter, are more CEOs anticipating no change, or a decrease, in some of their core business practices,” said Jeff Pollack, assistant professor of management at the Robins School, who calculated the results. “Based on data we collected about the issues these CEOs face, it could be that slow economic growth and economic uncertainty are related to this more pessimistic outlook.”
Pollack adapted the survey from the Business Roundtable, an association of CEOs leading U.S. companies that conducts a similar survey nationally.
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
Economic Outlook Index
| Survey Date | CEO Economic Outlook Index |
| Q2 2011 | 74.17 |
| Q1 2011 | 85.63 |
| Q4 2010 | 92.27 |
| Q3 2010 | 94.47 |
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data.
Business owners and CEOs who would like to participate in the next survey should contact McRoberts at smcroberts@vaceos.org.
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