“Actually, caring about the other person is the leverage in any conversation.” – Gary Vaynerchuk
Have a clear Vision. Do what you love. Now, go and do what is necessary to make your glorious Vision a reality. Sounds so simple! Sounds so cliché. Not so much……
It takes a lot of ‘hustle’ and serious staying power to fully unleash your inherent Leadership potential and to overcome several obstacles that appear on your path. Several opinions and definitions exist in terms of what Leadership really is. Within a modern context, considering factors such as generational gaps, differences in upbringing and schooling, political interference, technological advances, and market disruptions I will define leadership as:
“Continuously applying the required and adaptive skill set, to unite a diverse group of people in committed and sustained effort, with the aim to attain a collective Vision that they sincerely aspire to.
In reflecting on this statement concepts such as self-development, emotional intelligence, honing your craft, wisdom, building a sustainable culture of success, a high level of motivation and several other factors are cast under the spotlight.
‘Leadership hustle’ refers to the concept of analysing with great care what needs to be done as a Leader, then carefully deciding how it needs to be done, be willing to ‘pivot’ when things are not working, create a sustainable motivating climate, and then persevere with an extreme high level of commitment until your team realises your collective vision. If you are a true Leader this ‘hustle’ never stops. A critical part of your work as a Leader is to coach and create more Leaders in order to ensure a sustainable future for your business.
The ‘last trump’ has blown on supposed Leaders whom only use bonusses or disciplinary action as leverage to entice their team members to perform. People, generally speaking, want to feel that they are cared for and that they are working together to attain something higher than themselves.
A twenty-eight-year-old friend of mine recently stated that: “It is so not cool to Lead”. He was giving a voice to his perception of power hungry and self-serving leaders whom do not care for others. There are always individuals whose actions are not exemplary. Well, let me tell everyone of something that is very cool – First-hand experience of an individual or team that have unleashed their potential and now are masters of their craft and you had something to do with it as their leader/a leader.
As the abovementioned Gary Vaynerchuk quote alludes to – “Actually caring for the other person is the leverage in any conversation.” Leaders must sincerely care for their team members, if not they are just ‘ bosses’ that suck every ounce of energy out of their team members in order to be enriched.
The Author has heard a number of entrepreneurs complain that they have lost their businesses by caring too much for their employees and doing too much for them at the dire cost of their businesses and themselves in person. Their situations became untenable as according to them their team members performance did not even remotely match the effort of the entrepreneurs.
In part many challenges similar to the above example arise as a result of a transactional style of Leadership – “I do for you and you do for me”. Naturally even if no lip service is paid to the concept , there is, in most cases part of the Leader/Entrepreneurs’ consciousness that does expect something in return.
For the purposes of this article the concept of ‘Leadership Hustle’ moves in the opposite direction of a transactional style of Leadership, instead it fosters a collective consciousness and culture where the team jointly as servants of a higher vision do everything because they want to out of love for the cause as opposed to being forced to.
Related: Servant Leadership – Will You Serve?
This puts a demand on the team Leader to hire ‘the right people’ that are committed to the cause from the start. Easier said than done? Most certainly! The Leader would have to Hustle up! We as Leaders will have to be committed enough to learn through several mistakes until the most optimal HR model is created that serves our Vision. We would have to continuously and urgently refine our team selection, training processes, and positive feedback loops until we find the solution that offers us the best change to collectively attain our aspiring Vision.
The ‘People before profit culture’ strikes fear in the hearts of most Leaders and rightfully so. What if I focus so much on caring for people that our profits decrease dramatically?! Allow me to rephrase the statement –
‘The right people (doing the right things) before profit culture’ will ensure more profits in the long run than you could ever have foretold.
‘Leadership hustle’ does not mean I foreclose on all methods of control as a Leader, stop managing, and only Lead. ‘Hustle’ means that we as Leaders must put more focus on Leadership than management controls which in turn would make the daily management of our teams easier because as a result of the focus on Leadership we will generally deal with a more inspired, motivated, and engaged workforce.
Seeing Leadership as an ever-evolving journey of learning and adapting rather than a single event would save the reader an unmeasurable amount of frustration and failures. Whether we appreciate change or not it is being enforced upon us by, in part, the millennial generations’ general traits of being more entrepreneurial, being very inquisitive and challenging, and basically living online.
It will serve Leaders well to rather gain wisdom in terms of the varying needs of different generations within a single workforce as opposed to judging a certain generation to be more effective at work than the other. Caring for people means caring for all, and part of caring is being interested enough to understand them better.
Related: Paddy Upton: People Centred Coaching
The author was in the audience when Cliff Hazell, an agile coach at Spotify, delivered a guest speech at the 2016 African Lean management conference. During the Q&A session Cliff was asked how we should best engage the “millennial segment” of our workforce as Spotify is well known for its very modern, integrated, and very successful culture.
The first part of Cliffs’ answer was, at least to me, simple yet profound – “First of all you could start by stopping to call them Millennials!”
People in general are progressively starting to abhor labelling and a judgemental attitude. It has served Spotify very well to rather focus on utilizing their generally younger workforces’ entrepreneurial thinking and inquisitiveness to gain traction towards the companies collective Vision as opposed to an attitude of labelling and judging.
A paradigm shift that forms part of ‘the Leadership hustle ‘is to rather have non- judgemental Learning discussions than the traditional performance appraisals. To sum up this modern approach to Leadership we are asked to continuously learn and improve our skills and be flexible in our application of skills. In order to create sustainable success as Leaders we have to have an improved grasp on the generational differences within our teams. We have to develop the skill to utilize the strong points of each generation and person within our teams to gain traction to ultimately actualizing our collective Vision.
We have to be more and more inspiring Leaders as opposed to being ‘control freaks’, that is if we sincerely aim to create a ‘HIGH TECH-HIGH TOUCH (People orientated) environment for our teams.
GO FORTH AND HUSTLE!!!
4 Common Myths About Leadership That Can Hold You Back
Alignment with your values and belief systems is the foundation of becoming an effective leader.
To be a great leader in today’s world, being a brilliant knowledge expert or technician is no longer enough. Even harder is trying to learn the golden rules of the wrong and right ways to be a great leader. The amount of content spouted in countless books and resources is overwhelming let alone confusing.
To be unstoppable leaders for our businesses and our people, tuning out from the noise and distractions potentially misguiding us is pertinent now more than ever. Pay attention to any presence of these four myths and make guiding your people a more soul-enriching journey that they and you will want to continue well past your leadership term’s end.
Myth 1: Great leaders are highly ranked individuals
Richard Branson proves a classic example of how great leaders can get to the top without having ivy-league school connections and astounding qualifications. Having had enough of struggling at school, Branson dropped out of the highly reputed Stowe boarding school at the age of 16 to start a magazine called Student. The first publication sold $8000 worth of advertising. We all know the Virgin story from there on. Then there are the likes of Rachael Ray, food industry personality whose empire has amassed a $60M fortune without her having any culinary qualifications whatsoever.
There’s a common entrepreneurial DNA that runs through the veins of such leaders. An avant-garde vision, tenacity and patience seem to be common underlying themes for many. For others, it’s about making sacrifices and taking risks that could cost their life to serve a cause extending far beyond serving their own needs.
By publicly speaking out against the Pakistan Taliban’s extremist rulings, one of which of was to prevent females from accessing education, Malala Yousafzai became a target. At 15 years of age, a masked gunman boarded her school bus and shot her in the head. She survived and many months of rehabilitation spurred her determination to fight for every girl to have the opportunity to attend school. The work she achieved through establishing the Malala Fund with the undying support of her father, earned her the Nobel Peace Prize in December of 2014.
Whether from desperation or a happy place there is always the genesis of a passion driving a persistence to go against the grain and to continue the fight. Often there’s no formal training, qualification or certification in sight.
Myth 2: Following a certain checklist of behaviours will make you a great leader
The ‘fake it ‘til you make’ adage has become a common throw-away phrase consultants and coaches spout as a means to quickly build confidence. Following advice to merely emulate the behaviour of those you admire and respect can pose grave risks, especially when you become a leader by default as opposed to by your own audition. Smart teams can smell falsehood and copycats a mile away. Your integrity will often be scrutinised and your jury will constantly evaluate the values and principles you lead by. One foot wrong might end your leadership term just as quickly as it began and not necessarily by your team’s choosing.
Imagine being tasked with driving credit card sign-ups yet you yourself struggle to make repayments on your own overdraft. How long can you resist your inner conscience? You’ll feel the tug every time you invite a customer to sign up and at every request to your team to follow suit. At some point, you’ll be struggling to face yourself see in the mirror.
This article was originally posted here on Entrepreneur.com.
9 Ways To Get Employees To Buy Into Your Vision
Your business is your dream come true, now it’s time to include your employees in your vision to drive future success.
Your vision statement is the foundation of your business. It is the baseline against which all strategic planning is assessed and the benchmark against which all results are measured. However, as important as it is to have a vision when it comes to business success, it is equally important to get your employees to buy into this vision to ensure that success.
Here are nine ways to get your employees to buy into your vision by making it their dream, as much as it is yours…
- It must be believable – Your company vision needs to be within the realms of possibility otherwise people just won’t believe in it. It must be steady, achievable and relevant.
- It must be inclusive – Employees need to see how they can play a part in achieving this vision to make it relatable and inclusive. If they don’t understand what the business does, they won’t care how well the business does.
- It must be reinforced – Talk about your vision all the time. Don’t assume everybody has read it or is familiar with it as new people may not have seen it and older people may have forgotten. Constant communication is critical to ensure everyone is, literally, on the same page.
- It must be transparent – Make sure your communication around your vision is open and clear. Talk about it with clients, with all staff members, at all meetings and keep on talking until everyone understands it. When a vision is tangible and accessible it is far more achievable than when it is ethereal and vague.
- It must be practical – Don’t make flamboyant statements that are almost impossible to achieve like, ‘We will be number one in X!’. Be practical. It doesn’t matter if you’re not number one, it does matter that your vision is practical.
- It must be shared – Connect people’s careers to the vision by creating opportunities for them. Show them how the work they do is tied back to the vision and the business. If the business is only about profit and customer, then employees often don’t see how they fit in or why they are important. Create opportunities for them and they will be inspired to achieve your vision.
- It must be people-centric – People make up the core of your business. It is bigger than just one person or one idea. So, give them something to aspire to with a realistic, practical and human company vision.
- It must have purpose – Embed your vision and its values into the way you do business. The way you treat your employees and your customers and the choices you make should all reflect your vision. Take it beyond just ‘We want to make money’ and show how your vision positively affects your community and others.
- It must be visible – Put your vision on doors, in emails, on letterheads, in proposals. Show what you stand for at every opportunity. Employees need to feel that there is a cohesive plan for the future. This will not only drive engagement but it will keep them steadfast when times get tough – they believe in the ship too much for it to sink.
What’s Your Number? How To Unpack Company Valuations
Business is booming. Investors want in. But how do you put a price on the value of the company you have built with your own hands?
Company valuations is such a hazy part of the scale-up journey of a private company. Putting a price tag on a business is both art and science. At the end of the day, the number that makes the headlines (if ever disclosed) will be where willing buyer and willing seller meet.
But how do you , as business owner, go about setting your asking price? Before approaching investors, it’s a good exercise to determine your own valuation range for the business. Choosing the right valuation method is the first big question. The answer has many parts to it, but the most important driver is the stage of the business.
Let’s look at some of the most commonly accepted valuation methods in our market:
Applicable stage: Established, profitable companies
Listed companies, institutional players and private equity investors normally invest in a company for its cash flow profit that can contribute to their portfolio income. More often than not, companies will be valued based on their current earnings (bottom line profit after tax).
This method can only be used for companies that consistently make a profit. A multiplier will be chosen based on the company’s perceived risk. Younger, more risky businesses will likely have lower multipliers (as low as 3 and 4) and high growth, well established, lower risk companies will get higher multipliers (8-15).
Sometimes small adjustments are made to current year earnings (like non-standard, non-repeating income statement items) after which the valuation is set at Earnings times multiplier equals company valuation.
Discounted Cash Flow (DCF)
Applicable stage: Post-revenue start-ups, growth companies and established businesses
The most commonly used method in practice, the DCF method argues that a company’s value is determined by the future cash flows that it will yield to investors.
The starting point is creating a five to ten year cash flow forecast for the business. This is no small feat. In order to create a full financial model – income statement, balance sheet and cash flow statement – for the next decade requires a lot of work, both from a strategic and technical perspective.
Investors love this model because if forces the owners to put a clear strategy and expansion plan for their business into numbers. It will include dozens if not hundreds of assumptions – all of which can be scrutinised for reasonability. The result of financial model will be five to ten years’ worth of projected cash flows. These amounts are then discounted to present value at a discount rate that reflects the company’s risk and expected cost of capital.
The sum of the discounted future cash flows plus a terminal value (that represents the value after the five or ten year period of the model) then represents the valuation of the company after some final small adjustments for things like existing debt in the business.
A revenue multiple valuation approach is focused on the market for similar businesses and is underpinned by your company’s current turnover. It seeks out the sales price of other similar companies in the country or worldwide, adjusted for size, stage and market differences.
A company that sold for R100 million at a turnover of R50 million would have a two times revenue multiple (valuation/revenue). If the average revenue multiple for similar companies is in a certain range, this multiple is then slightly adjusted and applied to your business.
If the average sale in your industry has been two times revenue but you are growing much faster than the average with a better competitive advantage, you can argue that two and a half times revenue is a more applicable number for your business. Revenue multiples are often used as a reasonability check in the market for the current asking price.
Most established companies are valued using one or a combination of more than one of the above three methods. At start-up stage, there are a number of other methods like Cost to Replicate or the Scorecard Method that early stage investors look to. When a company is simply in too early stage to practically value it, seed stage investors would also consider SAFE Agreements (Simple Agreement for Future Equity) – an instrument that determines that the percentage of the company the investors are buying with their investment. This is only determined when the Series A round is raised at a future date and under certain conditions, generally at a discount to the price the series A investors are paying.
Company valuations are complex. Many of the above technical factors play a role. A lot of it also comes down to the salesmanship of the owners and the negotiating capabilities of the parties. In ‘How Yoco Successfully Secured Capital And The Importance Of A Pitch’, the Yoco team speak about the importance of the right approach in their recent R248 million fundraising
Don’t go into this process without seeking some kind of expert advice. The price of the wrong valuation is simply too high. Make your numbers and your arguments bulletproof and you will be on your way to defending a strong and exciting valuation for your next raise!
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