Clockwork: Design Your Business to Run Itself
Page 23
Another grape launched in the air. And Ryan caught it dead center in his mouth; I heard the snapping sound as the grape hit his tongue.
“Our revenue doubled. We have predictability. And I have delegated the process to a colleague who runs it and makes decisions on getting it right. I just watch the numbers, and if something doesn’t look right, I investigate. And now I spend a lot of time doing my favorite things in the world: being with my family and watching Teen Wolf, the best movie ever, for the hundredth time.”
Everything Ryan told me was spot on. Everything he said works. Everything he said was right, except for Teen Wolf being the best movie ever. We all know it is Terminator 2.
Ryan’s story is not special. It’s not lightning in a bottle, something only a few people get to experience. It’s also not about luck, or karma, or how hard he worked when he started his company. It’s not about the dues he paid or the people he knows. It’s all down to the systems. Your business may be limping along or stuck in a rut. Maybe it’s drowning in work, or debt, or both. You may be just starting out or ready to give up. Whatever your circumstances, you can have your own version of Ryan’s story.
Ryan isn’t smarter than you or luckier than you. In fact, he used to tough it out in his business, too. He worked like an animal, dealt with crushing business debt, didn’t take a paycheck for three years so he could ensure his employees would be paid. As a result of the stress, Ryan eventually developed pain in his hands so severe he couldn’t open a jar. His feet hurt so much he could barely walk. Today, he’s in good health, and so is his business.
No matter what you have or don’t have; no matter what challenges you face and what mistakes you’ve made; no matter what, you can grow a profitable business that runs itself. Before you cracked this book, you may not have known how to do that. Now you’re armed with a system that’s doable.
I believe this system works. And I believe in you. Actually, I know this system works, and I’m certain you can pull it off.
I can’t wait to see your vacation pictures from Maine. Or Spain. Or Antarctica. Or wherever you plan to go for your four-week vacation.
Let’s get busy designing your business to run itself . . . like clockwork.
ACKNOWLEDGMENTS
I think, in some strange way, being an author of a book is like being the front man of a band. The front man gets all the attention, and not just because he is wearing awkwardly tight spandex trousers, but because he’s the one standing at the front of the stage screaming into a microphone. Yet there wouldn’t be any music without the entirety of the band. It takes everyone working in harmony to make beautiful music. It’s a bit unfair that the front man gets all the attention. Just like it is unfair that I, being the author, get all the attention. There is a powerful band alongside me up on stage. Let me introduce them to you:
On drums is Anjanette “AJ” Harper. If I am the soul of my books, she is the heart. Every one of my books has been a collaborative writing effort between myself and AJ. She is a relentless stickler for quality in writing and clarity in communication. By far, Clockwork has been the most challenging project we have done together. After six years of work and even throwing out an entire manuscript (seriously), the project is complete. Clockwork is the best of me and it is the best of Anjanette. Thank you, AJ.
Our song composer is Kaushik Viswanath. Kaushik (pronounced “the world’s best editor”) never accepts good enough. Never. He tore Clockwork down to the studs and helped rebuild it into a far better book. Clockwork is exponentially better because of Kaushik’s effort and commitment to quality. Thank you, Kaushik.
On lead guitar is Liz Dobrinska. I have worked with Liz for over ten years. Every website, every graphic, and even the cover of Clockwork has been created by Liz. Her ability to take my ideas and bring them to life blows me away every time. Thank you, Liz.
On rhythm guitar is Amber Dugger. I call her my Glam BLaM: my Glamorous Book Launch Manager. She is the one who got the word out on Clockwork before the manuscript was even done and continues to tirelessly grow the awareness. Everything she does, she does from the heart (that’s the Glam part of Glam BLaM). She is spreading the word on Clockwork because it is the right thing to do. Thank you, Amber.
On bass is Adrienne Dorison. The bass is that one instrument that ties all the other sounds together. Adrienne is doing that with Clockwork. She launched RunLikeClockwork.com specifically to deliver Clockwork support to the entrepreneurs who need it. She is the only person I trust with such an important responsibility. (Plus, she really, really knows her shit.) Thank you, Adrienne.
On backup vocals is Kelsey Ayres. I will never be able to express my full gratitude to be working with Kelsey. She is more than my personal assistant. She is my right hand, my full brain, and a remarkable friend. And she just happens to be the kindest soul to have ever walked this planet. I am humbled to work with you, Kelsey. I am forever grateful for your tireless efforts in serving entrepreneurs with Clockwork. Thank you, Kelsey.
Last but not least is my greatest fan (she’s kind of a groupie)—my wife, Krista. From the bottom of my heart I thank you and our children for supporting my dream of writing books that will eradicate entrepreneurial poverty. I love you and the kids more than I can ever express. Thank you for our journey together. I live you (that’s not a typo).
GLOSSARY OF KEY TERMS
ACDC. The four major stages in the flow of business are: Attracting prospects, Converting prospects into clients, Delivering the promised offering to clients, and Collecting payment in return. Most businesses flow in the ACDC sequence, but it is not necessary. Some businesses, for example, collect payment before delivering services. And others may deliver a service before the prospect becomes a client.
Active Time Analysis. This is the process of tracking how you, or someone you work with, typically spends their time at work. Use this tool to discover how much time you devote to each of the 4Ds.
Cheetos. Just disgusting. Unless you are throwing back some beers. Then they aren’t too shabby. Throw back even more beer, and then Cheetos, almost magically, become pretty damn tasty.
The Commitment. Once you determine your business’s ideal offering (based on your ability and desires), you identify the type of customer it will best serve and commit to concentrating your efforts on serving that customer type.
Fat Daddy Fat Back. The name of my rapper alter ego. Do I really have a second career as a rapper? Maybe you should Google it and find out.
The Four Ds (4Ds). The four types of activities, and four phases of work, that any individual in a company will spend their time engaged in. They will either be Doing the work, Deciding about the work for others, Delegating the work to others, or Designing how the work gets done. In many cases, individuals will be doing a combination of the 4Ds.
Four-Week Vacation. Most businesses experience all of their activities within a four-week period. Therefore, if you, as a leader of the business, remove yourself from the company for a four-week consecutive period, your business will be forced to run itself. By making a commitment to a four-week vacation, you will immediately be in the mind-set of setting up your company to run itself.
Grant’s Kennebago Camps. It is a bit of a tradition for our family now. None of us hunt or fish, so we are always the oddballs. But now it is part of us. Should you ever go and we run into you, please ask my wife to share the “bat story” . . . it is a family fave.
Miss Maud Hotel. A must-visit institution in Perth, Australia. Go for the smorgasbord and try the apple turnovers. They’re to die for.
Operation Vacation. A movement of Clockwork readers (and others) who are allocating time for themselves first and building their business around it. Similar to the Profit First method of first allocating profit, then reverse-engineering the business to ensure that profit happens.
The Optimal 4D Mix. The optimal mix for a company is 80 percent Doing, 2 percent Deciding, 8 pe
rcent Delegating, and 10 percent Designing. This is not the optimal mix for the entrepreneur or business owner, and not necessarily the optimal mix for employees; it is the optimal mix for the entire business (which is made up of the work contribution of many individuals).
Parkinson’s Law. The theory that people expand their consumption of a resource to meet its supply. For example, the more time that is allocated for a project, the longer it will take to complete.
Primary Job. This is the most critical role that an employee serves in their job. It needs to be prioritized over any other work.
Profit First method. This is the process of allocating a predetermined percentage of your company’s income directly to a profit account before anything else is done with the money. The profit allocation occurs before paying bills. The entire process is documented in my book Profit First.
QBR. The Queen Bee Role. This is the one core function of your business that your success hinges on.
Solopreneur. A person who exclusively owns and operates their business.
Survival Trap. The Survival Trap is the never-ending cycle of reacting to the urgent at the cost of disregarding the important. This makes business survival a day-to-day emergency. Building a Clockwork business gets you out of the Survival Trap.
Top Client. The best client(s) of your business, as determined by you. Typically this is the client that pays you the most and whom you enjoy working with. The process of identifying and cloning your Top Client is documented in my book The Pumpkin Plan.
Trash, Transfer, and Trim. Take one of these three steps to remove work that distracts an individual from serving the QBR or their Primary Job. This process typically moves Doing and Deciding work to “lower level” employees and elevates Designing and Delegating to “higher level” employees.
AUTHOR’S NOTE
Thank you for reading Clockwork. It is my deepest desire to help you achieve the business you envision. I hope Clockwork has taken you one significant step closer to just that.
I would like to ask a small favor of you. No obligation whatsoever.
Would you be willing to post an honest review of Clockwork?
I ask because reviews are the most effective way for fellow entrepreneurs and business leaders to discover the book and determine if it will be of value to them. A review from you, even a single sentence or two, will achieve just that. To do it, simply go to the website (or the website for the store) where you bought the book and submit the review.
Again, I seek only your honest feedback. If you loved Clockwork, please say so. If you loathed the book, please share that, too (just try to refrain from calling me bad names). And if you are indifferent about the book, share that, too.
What matters the most is that other entrepreneurs hear your truth about Clockwork.
Thank you. I am wishing you your most successful year yet. You rock!
Mike
ABCDEFGHIJKLMNOPQRSTUVWXYZ
INDEX
The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.
accountability, 73, 111–12
accountability partners, 233
ACDC (Attract, Convert, Deliver, and Collect) model, 108–11, 178–88, 179, 202–3
action steps, 119–20
capture system, 108–12, 119–20
defined, 108, 243
four-week vacation and business cycle, 220–21
Profit First Professionals case, 180–88
setting up, 108–11, 109
Actionable Agile Metrics for Predictability (Vacanti), 33
action steps, 18–19
balance the team, 150–51
capture systems, 119–20
clockwork business, 202–3
the commitment, 169
declaring the Queen Bee Role, 70
protecting and serving the Queen Bee Role, 99–100
pushback, 216
time analysis, 55
Active Time Analysis, 40–45, 243
Agugliaro, Mike, 48
aha moments, 59, 125
aligning the team, 135–36
Amazon, 35, 103, 111, 194
analyze the 4D Mix, 14, 17, 20–55
action steps, 55
active analysis, 40–45
delegation complication, 31–36
Doing going nowhere, 26–30
the four Ds, 23–26
running like clockwork, 46–49
Scott and Elise Grice’s story, 20–22, 49–52
starting with 1 percent, 45–46
target percentages, 36–47
Time Analysis Worksheet, 39, 39–40
vacation time, 49–55
Anytime Fitness, 152–54, 155, 197–202
Attract, 108–11, 109, 178–88, 179
action steps, 119–20
capture system, 108–11, 109
Cyndi Thomason’s story, 195–97
defined, 109, 178, 243
Profit First Professionals case, 180–88
balance the team, 15–16, 17, 121–51
action steps, 150–51
aligning the team, 135–36
Clockwork Team Time Analysis, 141–42
Cyndi Thomason’s story, 139–40
Darren Virassamy’s story, 126–28
fear of trust, 133–34
Job Traits Analysis, 136–38, 137
Nicole Wipp’s story, 121–23
putting first five steps in action, 143–50
the right people, 125–28
using insights gained from analysis, 139–40
when to hire, 128–31
whom to hire, 131–33
banana peeling methods, 105–6
bank accounts, in Profit First method, 186
bankruptcy, 50–51
bee colonies, 57–59
benchmark levels. See analyze the 4D Mix
Berg, Andrew, 125–26
Bezos, Jeff, 35, 35n
Big Beautiful Audacious Noble Goals, 29–30, 44, 51, 97, 152
Blakely, Sara, 118
blue lights, 172–74
bottlenecks, 171–74, 175–76, 185, 192, 201–2
Cyndi Thomason’s story, 195–97
branding, 20–23, 51, 166
Browder, Bill, 35n
Bug the Shit Out of Me (BuTSOOM) system, 31–32
busywork, 205–7
Cape Cod Hospital, 71–73, 194
capture systems, 15, 17, 101–20
ACDC process, 108–11
action steps, 119–20
already in place, 104–6
efficient way to set up, 105–6
freedom leading to mastery, 114–16
inefficient way to set up, 105
Outlandish Dish fictional scenario, 148–49
primary process, 107–14
rivers following easiest path, 116–18
for start-ups, 107
Cash is the lifeblood of my business, 183–84
Celeste, ix–xi, 12, 129
certification, 182–83
Cheetos, 7, 243
chessboard, 170–71
clients. See Commitment, the; Top Clients/Customers
Clinton, Bill, 59
clockwork
in action. See action steps
seven steps of, 13–18. See also specific steps
clockwork business, 16, 17, 170–203
ACDC model, 178–88
action steps, 202–3
Cyndi Thomason’s story, 193–97
fixing the good problems, 193–97
four Ds of running, 23–26
keeping it simple, 171–74
Kevin Fox’s story, 171–74
Lisé Kuecker’s story, 197–202
one dial at a time, 189–92
Clockwork Club, xiv, xivn
Clockwork.life, xivn
Clockwork Quick Start Guide, xivn
Clockwork Team Time Analysis, 141–42
Outlandish Dish fictional scenario, 147
vacation time, 227–31
cloning best customers, 158–59, 164
Cole, Jesse, 66–67
Collect, 108–11, 109, 178–88, 179
action steps, 119–20
capture system, 108–11, 109
defined, 109, 179, 243
Profit First Professionals case, 180–88
Commitment, the, 16, 17, 152–69
action steps, 169
crush/cringe analysis, 163, 163– 66
defined, 243
“everyone” is not your market, 156–58
the how, 166–67
Lisé Kuecker’s story, 152–54, 155
whom of, 158–66
COMPENSATION account, 186
congregation points, 159–66
crush/cringe analysis, 163, 163–66
conversion rate, 181–82
Convert, 108–11, 109, 178–88, 179
action steps, 119–20
capture system, 108–11, 109
Cyndi Thomason’s story, 195–97
defined, 109, 178, 243
Profit First Professionals case, 180–88
convocation, 186
Cool Beans Jeans LLC, 86–93
core business functions, 14–15, 17, 56–70
action steps, 70
bee colonies, 57–59
Clyde and Bettina’s story, 67–70
Cyndi Thomason’s story, 59–61
Jesse Cole’s story, 66–67
Outlandish Dish fictional scenario, 144–45
sticky note method, 61–70
corporate mission, 135–36