Ken Keller: The New Rules of Business

The New Rules of Business — 2022 Edition

KEN KELLER

SCVBJ Contributing Writer

We’re coming out of a pandemic and sliding into a recession of unknown duration or depth.

My advice is about the required tasks and the tone that every CEO needs to have as they learn The New Rules of Business, the 2022 edition.

Retain Your Best

In this employee market, even your best workers are going to be tempted to depart for more money, a bigger title, new responsibilities, a shorter commute, the ability to work from home, a casual dress code, better benefits.

As the CEO, you must be proactive in dealing with this topic. Start by making a list of those that you must retain, followed by a list of those that you wish (would be nice) to retain. And then, sit down with these individuals, one by one, and share the value they bring to the company and the team.

Ask about what more they want from their job and do your best to bridge the gap. Don’t say what you can’t do but be transparent about what you will do. Should someone depart, be sure you did everything you could to keep them on your team. Have no regrets when an “A” player leaves.

Always Be Recruiting

Every client I have is growing and struggling to find candidates to speak with about the openings they have. The CEO must lead the way by setting the example of having and showing the mindset to always be recruiting, always be talking to people.

Managers need to break the cycle of performing tasks and thinking that interviewing people is a waste of time. Far from it. Investing in talking to candidates is the best use of any manager’s time. Make sure your managers are doing it and doing it correctly (legally).

Be Cost Vigilant

Profit and loss statements are often filled with line-item expenses that are often arbitrary and unnecessary. Even Make a list of those employees you believe you must retain, followed by a list of those that you wish to retain. Then sit down with these individuals, one by one, and share the value they bring to the company and the team.

usual and customary expenses of utilities and office supplies have a bad habit of increasing in cost simply because no one is paying attention, or maybe because no one cares!

Try something different; assign each expense line on your profit and loss to an individual. Make it part of their job description to oversee that specific expense and work with all your P&L lineitem managers to create a “cost savings incentive plan” where some of the savings are shared as a bonus.

Raise Prices

The CEO cannot be afraid to raise prices when increases are warranted. Given that everything from airfare to zoo tickets have gone up, pricing versus costs need to be reviewed regularly. Focus on Gross Profit Margin maintenance.

More Client Contact

Zoom or Teams is great for some things, but nothing beats face-to-face meeting with clients or prospects. Most businesses are based on personal and professional relationships. Instead of trying to cut costs when it comes to meetings, insist that people from your company meet in person with those that pay the bills for your company. This provides a competitive advantage and demonstrates to those you are doing business with and those you want to do business with, that you are serious.

Get Ahead of the Calendar

You should be reviewing your strategic plan this month and start your operational planning for 2023 no later than early October. 