Coaches everywhere bombard their clients with "What steps are you taking this week?"
The army lining the hills in Monty Python's movie The Life of Brian shouts "Get on with it!"
And they're not wrong. I've said all of those things myself... and I will again.
But I come from four different meetings in the past few days where clients were in full out "action" mode... and couldn't tell me what the specific goals were for all that effort.
Regardless of whether you're an independent professional, a leader in a corporation, or owner of a business, here's information that should give you pause.
Investors in private-equity deals averaged 22.5% returns on their investment in the 12-months ending last June, while the S&P 500 returned 6.6%... over the past 10 years that return was 11.4% versus 6.6%; over the past 20 years it's been 14.2% versus 9.8%.
Return on investment means return on time, money, elbow grease ' everything that's put into a business. So how would you calculate the return on effort you're getting from your own "investment?"
The seldom-discussed reason for the difference in returns is the difference in management strategies used in these two arenas. And it begins with the fundamentals of managing ' regardless of the size of the business.
The starting point in private equity firms is in setting specific objectives. Often, new objectives are set when new investors come on board. With new investors come new experience and new insights to help refresh the thinking of the management team. New ideas from people standing in a new line of sight on the industry, competitors, customers.
Private investors are often looking at their three to five year exit strategy as they walk in the front door, it's a perspective that keeps attention on how every effort is increasing or diverting the value of the business.
Every business decision, every operations and management choice is deliberately aligned with that objective.
Every activity throughout the business is in turn evaluated for how well it's moving the company's efforts toward those results... and redesigned to be sure it IS High Payoff!
And the result is 50% higher returns on that investment of... time... money... resources!
The objective set by one of my law firm clients is to double net income in five years. That objective leads to a list of decisions that need to be made regarding: which client work to take on and which to turn away; what legal staff to bring in to do the work; what support staff and infrastructure are needed; and what new management skills have to be honed to manage that effort.
Having all of that laid out first, before leaping into 'Action!" by hiring the wrong experience, moving to the wrong space and neglecting managing the resources already on board, is having a direct result - streamlining his daily decision making, eliminating two lines of low margin legal work commonly taken on, and setting clear directions for his marketing.
And productivity? Stripping out fully one-half of the daily confusion and stress he and his people were working under focused their concentration and accelerated the work results in the span of two days. He's targeting that 50% boost in returns.
Whether you run your own business, manage a department of a larger organization, or staff a project, take a lesson from the private equity world and set clear objectives first. Then put on your track shoes and go for it!
The Private Equity Group
It seems these days private equity is the buzz. In fact wouldn't you like to find out how the rich use private equity investing to increase their wealth? Don't know what private equity is ? that's okay you aren't alone. There isn't too many outside the investor professionals that really describe it but it is how the rich use private equity investing to increase their wealth.
Private equity is a very broad phrase used to describe any type of equity investment in an asset where the equity is not tradable on a stock market. Private equity investments might include venture capital, angel investing, growth capital, and leveraged buyout and it is how the rich use private equity investing to increase their wealth.
This all started back in the early 1990s and it has undergone huge growth which has resulted in record levels of capital every year over the past decade which is how the rich use private equity investing to increase their wealth. Near the end of 2000 there was a bit of a breather but not for long and today it is again a major player in the global market. It's how the rich use private equity investing to increase their wealth.
When it comes to how the rich use private equity investing to increase their wealth its through private equity that specialized in LBO's and MBO's and of course leverage still remains a critical element.
Companies are acquired and then an attempt is made to add value to the company strengthening its management teams and assets so they can be rolled over which is how the rich use private equity investing to increase their wealth do their best work. They generally aim to acquire companies that are in a real need of a face lift or the buy and build deals which basically means the general business is there but it needs to be built from the ground up.
There are thousands of success stories out there which is why and how the rich use private equity investing to increase their wealth. Don't believe me do a quick Google search and you'll find plenty of material on just how this process takes shape.
You see how the rich use private equity investing to increase their wealth isn't a secret after all. And more good news you don't have to be rich just determined. So what are you waiting for?
Copyright ? 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
Both Linda Feinholz & Joel Teo - are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Linda Feinholz has sinced written about articles on various topics from Education Toys, Small Business and Your Online Business. ? 2007 Linda Feinholz Management expert, consultant, and coach Linda Feinholz is "Your High Payoff Catalyst" and publishes the free weekly newsletter. Linda Feinholz's top article generates over 14800 views. to your Favourites.
Joel Teo - has sinced written about articles on various topics from . Joel Teo is the owner/webmaster of the
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