November 15, 2024

Corner Office: Victoria Ransom of Wildfire, on Instilling a Company’s Values

Q. Tell me about some of your early leadership lessons.

A. When I look at my values as a leader and at the culture in our company, they’re really a strong reflection of the values I was raised with, such as hard work and leading by example. I grew up in a really small farming community in New Zealand. Everybody pitched in. Everybody worked hard. We talk a lot about the value of humility at Wildfire, about not getting ahead of yourself.

I also took on leadership opportunities pretty early in my life, and that started informally in the school I attended. There were 30 students, from ages 5 to 12, and a lot of it was the big kids teaching the little kids.

Q. What about some more recent leadership lessons with your company, which has grown rapidly in the last few years?

A. Yes, we’ve hired quickly — we’re more than 400 people now. I think I’ve learned a lot through trial and error. I don’t believe in hierarchy or creating hierarchy. I believe in earning respect. Nevertheless, I think people do want you to be a leader and they want someone to tell them that things are O.K. One of the things I’ve learned is to just step up a bit more.

Another lesson I’ve learned as the company grows is that you’re only as good as the leaders you have underneath you. And that was sometimes a painful lesson. You might think that because you’re projecting our values, then the rest of the company is experiencing the values. What you realize is that the direct supervisors become the most important influence on people in the company. Therefore, a big part of leading becomes your ability to pick and guide the right people.

Q. Any other lessons?

A. As the company got bigger, and people didn’t know me quite as well, I started to realize how what you say can have such an influence. You can’t just say things off the cuff anymore, because people take it so much more seriously than you ever meant it. And that can be good and bad. The bad is that you might say something sort of flippant, or you’re trying to be really transparent and honest with the team about the challenges we may have. But that can get passed on down the line and repeated until there’s a panic.

On a positive note, I was surprised to learn how comforting what I say can be to the team, even if I’m not giving the answers. I thought at first that I always needed to be able to give them the solution, but I realized that actually that wasn’t needed at all. All that was needed was acknowledging the challenges, and showing that we’re on top of it and we get it.

And I’ve learned the importance of addressing problems as quickly as possible, because otherwise people start to build things up in their mind, and they talk.

Q. Let’s shift to culture. Did you go through the process of codifying your values?

A. We did, but pretty late in the game, actually. We tried early on in the company, when we had about 20 employees, to codify our values, but we didn’t get that far, because it felt forced. But as we got bigger, we were expecting a lot of our people — that they could somehow just come in as new hires and through osmosis figure out what our values were. Wouldn’t it be better if we just told them? The values are here already, but let’s make it clear what they are, particularly because you want the new people who are also hiring to really know the values.

Another reason was that we had to fire a few people because they didn’t live up to the values. If we’re going to be doing that, it’s really important to be clear about what the values are. I think that some of the biggest ways we showed that we lived up to our values were when we made tough decisions about people, especially when it was a high performer who somehow really violated our values, and we took action. I think it made employees feel like, “Yeah, this company actually puts its money where its mouth is.”

We also wanted to put in more of a formal procedure for reviews, and if we’re going to review people, let’s be clear about the criteria when we consider whether they are living up to the company culture.

Q. What process did you use, in the end?

A. My co-founder, Alain [Chuard], and I spent a weekend writing down what we value in our people at Wildfire. Then I literally sat down with every single person in the company in small groups and got their feedback — what do you like, what don’t you like, let’s tweak this. Some companies’ values are really about what the company stands for. We took more of the approach of what we look for in our people. Passion was a very important one. Team player. Humility and integrity. Another was courage, and that was all about speaking up — if you have a great idea, tell us, and if you disagree with people in the room, speak up.

Curiosity was one of them, too. We really encourage people to constantly question, to stay on top of what’s happening in our industry, to learn what other people in the company are doing. The hope was to break down these walls of “them versus us.” Another was impact — wanting to measure whether you’re having an impact at the company. And the final value is more outward-looking, but it was “do good, and do right by each other.”

In the end, it was a much, much harder process than I’d imagined. When I did these sessions with people to get their feedback on the values, most people were really excited. The ones who weren’t inevitably came from large companies who had gone through that process before, and they were very skeptical.

I think the best way to undermine a company’s values is to put people in leadership positions who are not adhering to the values. Then it completely starts to fall flat until you take action and move those people out, and then everyone gets faith in the values again. It can be restored so quickly. You just see that people are happier.

This interview has been edited and condensed.

Article source: http://www.nytimes.com/2013/01/27/business/victoria-ransom-of-wildfire-on-instilling-a-companys-values.html?partner=rss&emc=rss

You’re the Boss: 5 Reasons Selling Your Business Is Like Thanksgiving Dinner

Transaction

Putting a price on business.

I had a professor in graduate school who once compared the world of business to Thanksgiving dinner. His comment was directed at a room full of students who, at the time, were intent on climbing the corporate ladder. According to him, those of us who were willing to work hard and get advanced degrees would have the ability to leave the chaos and humiliation of “the little kids’ table” (supervisory and front line management positions) and graduate to sitting with the grown-ups (director level and above). And wasn’t that what we all aspired to?

In lieu of another tired business analogy that revolves around sports or military strategy, here are five reasons why selling your business is like Thanksgiving dinner.

An emotional outburst can ruin an otherwise lovely gathering.
I’ve often thought of my professor’s description of the little kids’ table as I’ve watched small-business owners go through the process of selling. It is not uncommon to see tears, yelling and tantrums on the sell side of a deal. The buyer, who brings almost no emotional baggage to the table, rarely exhibits such behavior.

Selling a business is an emotionally charged event. So much so that I have rarely seen an instance where a business owner doesn’t “lose it” at some point during the process. Anyone familiar with the process knows that an emotional issue can kill a deal just as quickly as any detail uncovered on a financial statement.

There are books and organizations dedicated to helping business owners anticipate and overcome the emotional challenges that come with selling a business. If you haven’t reached a point where you can be objective about your business, discuss its strengths and weaknesses openly, and see it for what it is during the sale process — namely an asset with market value — then you may not be ready to sell.

There’s no substitute for experience.
Grandmothers make the best Thanksgiving dinners, hands down. This is presumably because they’ve prepared the meal 30 times before they become grandmothers. Successful business sales take place with a team of experienced professionals who are both generalists and specialists in their field — including lawyers, accountants, financial planners and intermediaries.

Small-business owners tend to be extraordinarily successful do-it-yourselfers. When my husband and I started our coffee business I decided I would take care of payroll myself. How hard could it be, I reasoned, and why not save the $45 per month I was going to pay a service to do it? Somewhere along the road to employing 14 baristas, I should have started filing my employee withholding monthly instead of quarterly. Being a newbie, I didn’t realize this until I got a nasty letter from the Internal Revenue Service saying that I was behind and that if I didn’t get current they would seize everything I owned. Oops.

When it comes to selling your business, don’t go it alone. The cost of inexperience is simply too high.

Timing is critical.
The real trick to Thanksgiving dinner is getting everything to the table piping hot at the same time. And so it goes with selling a business. Most business owners pick an inopportune time to sell that is based on their personal wants and needs, rather than when the business will get the most interest from buyers — and the best price on the open market. It can be difficult to do, but the best time to sell is when your business is going gangbusters and your industry shows plenty of opportunity for growth.

Good manners are expected.
Like the passing of dishes around the table at Thanksgiving dinner, the process of selling a business consists of a series of careful exchanges — an orderly back and forth between buyer and seller, managed so that everyone is satisfied.

If you’ve represented your business as having $2 million in annual sales and $350,000 in owner’s benefit, you will be asked to please pass every financial statement, tax return and sales receipt to support that claim in due diligence. Refusing to do so, or not relinquishing those items in their entirety, in proper order and in a timely manner is not acceptable. It’s the equivalent of throwing mashed potatoes at Thanksgiving.

Everyone looks forward to dessert.
Thanksgiving dinner without the pumpkin pie would be a major letdown. Building a successful business that has no transferable value seems equally disappointing. Selling your business and cashing out after years of hard work is the ultimate reward. Prepare yourself and your business well for the day you will leave, and when you do, you will savor a slice of success that many business owners never enjoy.

Barbara Taylor is co-owner of a business brokerage firm, Synergy Business Services, in Bentonville, Ark. Here is her guide to selling a business.

Article source: http://feeds.nytimes.com/click.phdo?i=0e25de61242d6096569abfd601f67ef9