“No Surprises, Jeff…”

About 9 years ago I received some of the best business advice I’ve ever been given.

I had just raised $10 million from Venture Capitalists. My attorney and I were preparing for my first board meeting as Chairman and CEO. I had 4 demanding VC’s on the board, and we didn’t have much margin for error. (By the way, one of the best ways to avoid getting slammed by investors is to make sure you’ve set yourself up to Beat Projections–go read that link!)

As we finished our preparation, she said to me, “I have one piece of advice for you as you manage this Board. No surprises, Jeff.”

She went on to explain that most entrepreneurs and almost every human being for that matter, have a terrible tendency to delay the delivery of bad news. Until it’s too late. Until everyone is shocked, surprised, and sour.

She said, “Jeff, if things aren’t going well, if you see problems on the horizon, then you must let your investors know about it as soon as possible. I promise that you’ll earn their support and gain credibility with them. And you’ll uncover solutions from them….before the problems are too large to fix.”

I’ve taken that advice and it’s served me well on many levels. In every possible area I try to uncover the truth about what’s not working (or what really is working) and expose it immediately. That goes for key personnel, with marketing projects, business plans, financial processes, and so on.

Successful entrepreneurs see the wisdom in acknowledging what’s not working and doing so as quickly as possible. Then, disclosing it to those who are involved. Even at the expense of discomfort, disappointment or embarrassment.

This approach puts the pain front-and-center and gets everyone in the “real world”. Knowing the hard truth about where your business really stands at any given moment is crucial.

Most failed companies or programs can trace their failure back to a critical point where some painful reality about their business departed from view. Bad news was muzzled and instead, positive reports, feel-good optimism, and all-comforting hope carried the day.

They say “hind-sight’s 20/20”. That’s true, but it’s also a cop-out. An honest evaluation of real time results is close to 20/20 also. And operating effectively in the here and now is where great entrepreneurs rise to the top. The problem is, most entrepreneurs don’t have the stomach to face the hard truth at the very moment it comes to light.

The sooner you can learn to embrace and communicate the truth about your business…and that means the good, the bad, and the ugly, the sooner you’ll ensure a higher likelihood that your business will become a success.

Remember, “No Surprises.”

Check out this post for a little more on this topic:

Honesty and Business – The Way I Like To Do It

The Speed of Trust

I just finished reading “The Speed of Trust” by Stephen M.R. Covey.

So much of what he covers is extremely relevant. Especially today.

In times of uncertainty it’s much more difficult for people to hide under the radar or just “skate by.”

Whether in a job, running a company, looking for new work, or starting a new business, those we deal with have a heightened awareness of what’s going on around them. Who can they trust? Who are the most valuable players? Who’s for real? Who’s genuine?

In times like these, one of the best ways to stand out in the crowd and rise to the top of the ladder is to have a solid, trustworthy foundation.

Those who are trusted have a massive advantage.

Here are some very powerful points Covey makes that stood out to me:

“There is one thing, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love.

“On the other hand, if developed and leveraged, that one thing has the potential to createe unparalleled success and prosperity in every dimension of life. Yet, it is the least understood, most neglected, and most underestimated possibility of our time…that one thing is trust.”

“Trust undergirds and affects the quality of every relationship, every communication, every work project, every business venture, every effort in which we are engaged. It changes the quality of every present moment and alters the trajectory and outcome of every future moment of our lives–both personally and professionally.

“While corporate scandals, terrorist threats, office politics, and broken relationships have created low trust on almost every front, I contend that the ability to establish, grow, extend and restore trust is not only vital to our personal and interpersonal well-being; it is the key leadership competencey of the new global economy.

“I am also convinced that in every situation, nothing is as fast as the speed of trust. And, contrary to popular belief, trust is something you can do something about. In fact, you can get good at creating it!”

Mr. Covey’s message is powerful to me for two reasons. First, it’s simply an enlightened and timely truth (and his book goes on to explain exactly how trust can be built and restored). Second, I’m imperfect and have broken trust at times. So, knowing that trust can be restored, even rapidly, is encouraging to me as a leader, and as an individual.

Are your to be trusted?