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November 2017
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Hurricane Harvey
AND THE GENEROSITY OF THE HUMAN SPIRIT
“Sure, we’ll take you,” one of the four young men said. Warm rain, heated by the heavy Houston sun, beat down from above. It was early September, the tail end of Hurricane Harvey, and I’d asked the four guys if I could hitch a ride on their flat- bottomed fishing boat. I wanted to check out a rental property I owned in the center of the suburbs, assess the damage, and maybe recover a thing or two. It seemed unlikely, but this incredibly gracious team of twentysomethings was eager to help me out. In the middle of the storm, the only way to get around was by boat. The journey took us a solid 25 minutes as we navigated the surface of the submerged neighborhood. We had to keep an eye out for cars sunk beneath the surface — every now and then, the boat would bump one we’d missed, adding another scratch to the already beaten-up bottom. Houses were spray- painted with notes, letting volunteers know they’d already been evacuated. We chatted along the way. It turned out that these young kids, upon hearing of the rampant destruction the hurricane was wreaking, had driven 24 hours straight, all the way from Virginia, fishing boat in tow. Since they’d arrived, they’d spent almost every waking moment navigating the flood, evacuating folks stranded by the water, driving people back to their destroyed homes to help them retrieve whatever they could, and taking food and other necessities to families who’d migrated up to the second floor of their houses in the midst of the deluge.
These guys, none of whom I’d guess were older than 30, had traveled all this way, to a community to which they had no ties, solely to offer whatever aid they could muster. I was deeply moved by the stories they told me, by their perseverance, and by their generosity. When we finally made it to the house, a nice property I’ve owned for 20 years, it was obvious it was a lost cause. Eight and a half feet of water stood stagnating in the building, reaching almost all the way up to the top of the front entryway. It was completely surreal. None of the rental properties I own back in Houston, where I’m originally from, are located on any kind of floodplain, and they’d never suffered any kind of water damage in the past. Yet here was this house, half hidden beneath the surface. In the end, though I am sure my flood insurance isn’t quite enough to cover the costs — despite being in the industry! — it’s just stuff. It can be fixed. I’m fortunate that my kids, who live in the area, weren’t hurt, and that my tenants had already made it out just fine, though they lost everything. Tens of thousands of Houstonians are in the same situation — astronomical numbers of people who lost their homes and livelihoods in the path of the vicious storm. Certainly, Harvey was a tragedy of the greatest magnitude. But during the time I was there in my native city, I didn’t see many people succumbing to despair, lamenting all that they had lost. Instead, everywhere I looked, I witnessed stirring acts of kindness — a coming- together of the communal human spirit. I saw four young guys who drove over 1,200 miles just
to lend a hand. I saw neighbors pitching in to help homeowners gut and rebuild their broken houses. Lines of volunteers stretched around the block at nearly every aid center, waiting in line for hours just to get the chance to assist. Many local high school football teams were even driving around town, joining in with whatever project they saw that needed help. These days, stories of pain and struggle are everywhere. But in direct proportion to these horrific events we’re always hearing about are tales that embody the generosity of the American population as a whole, and the extent to which we’re willing to go to lend our support to those who are suffering. You never know what people are like until they’re put to the test. Praise the Lord for the many people who answer that call. In the wake of Hurricane Harvey, Houston made our country proud. Everywhere I looked, I witnessed stirring acts of kindness — a coming- together of the communal human spirit.”
– Brad Johnson
President, Risk Services of AR Specialized Insurance Programs For Specialized Industries. • www.insurica.com • 1
With ‘Boundaries for Leaders’
YOUR LEGACY BEGINS
Have you been approaching leadership all wrong?
Whether you’re an executive or an aspiring leader, Dr. Henry Cloud, author of the groundbreaking book “Boundaries for Leaders,” might have something to say about it. Marrying the fields of clinical psychology and leadership consulting, Dr. Cloud delves deep into the mind to find rich insights about the psychology of leadership. In fact, he literally redefines the word in the process. REDEFINING LEADERSHIP Dr. Cloud defines leadership as simply “the process of turning a vision into a reality.” Sounds simple, right? It’s also completely accurate. Whether your vision is a successful business or a successful family, you need leadership skills to achieve your goals. But you can’t do it alone. You need to achieve your dreams with people and through people. The most worthwhile dreams are only possible with the help of others who can take your ideas and make them actionable. Plus, they tend to make the journey more enjoyable if you hire the right people and set the right boundaries. That’s why leaders need to invest time and energy into creating teams and workplace cultures that support productivity while maintaining employee satisfaction. It doesn’t take a clinical psychologist to tell you that unhappy people don’t stay productive for long. Without a sense of ownership —with you stepping over boundaries onto projects they should own for themselves — they won’t have that motivation. Believe it or not, you can maintain that culture while remaining, as Dr. Cloud puts it, “ridiculously in charge.” WHAT TO DO The best leaders set boundaries that empower people and teams to reach goals, while rooting out bad behavior proactively. They have to do this in a way that works with people’s brain functions of attention, inhibition, and working memory. If you’ve never approached leadership from this psychological point of view, it’s a refreshing take that can work wonders on the efficiency and effectiveness of any team. Ultimately, the book encourages you to view leadership as creating the conditions that allow people to use their brains to realize visions in the absence of distraction. That means creating the right boundaries — boundaries that produce freedomwithout control.
With a Succession Plan
As an entrepreneur, your main goal throughout your career is likely to grow your business to be as successful as possible. However, you may not think about what happens to your business after you retire. While growth is certainly important in business, careful succession planning ensures your company’s success after it leaves your hands. The normal evolution of a business begins when you’ve started or bought your company. You build and design it, you work to create something special and successful, and then you begin planning an exit strategy or succession plan. Whether that plan means selling your business and transitioning to a new CEO or handing your business to one of your children, there comes a time when a business owner asks themselves what kind of legacy they wish to leave behind — and what kind of retirement they want for themselves. Succession plans must be treated like business plans, which means you must have a clear vision of what you want for yourself and the company in the next five years. Where do you want to be? How do you want to be involved? What do you want out of the company you created? What is your exit strategy? If you decide you want to sell your business in the next five years, start the process by identifying potential buyers and determining how they make purchases. Find out how these organizations valued other companies and how they’ve integrated or purchased those companies. If you’ve done your job well and made many personal connections, there is a chance that buyers will have already approached you. If you want to give control of the business to a family member, you need to look at the procedures and steps that will ensure a secured transfer. This means training, education, and practice — grooming, if you will — for the person who will ultimately lead your business. Succession planning is just as important as company growth. Without careful preparation, your business could falter under the weight of an inexperienced leader or a company with opposing values. Carefully plan your exit strategy, so you can enjoy your retirement and your company’s success from the sidelines.
2 • www.insurica.com • Specialized Insurance Programs For Specialized Industries.
The One Goal Every Business Should Have,
but Almost None Do Of course, getting to revenue-neutral churn is not easy, and in a few business models, may even be impossible. But what if you could get to the point where only 10 or 20 percent of the churn affected sales numbers? The growth for your company would be incredible.
Have you ever wondered if there was one goal or key performance indicator (KPI) that is more important than all others? What do big companies focus on? Is there one single metric that, if you could nail it, would literally mean millions and millions in extra revenue and profit for any business? Before I share this one goal, I want to ask you a question. How big would your company be right now if you’d never lost a single customer in all the years you’ve been in business? We would likely have a few extra million dollars in sales annually, maybe more. The problem is, we all lose customers. You can use media like a newsletter to decrease the number of lost customers each month and year, but never, ever losing a customer isn’t possible, right? You’re right, but there is a way to not lose money simply because a customer leaves. The utopian goal for any and all businesses is called revenue-neutral churn. Simply defined, revenue-neutral churn is when you focus on decreasing churn numbers via relationships, education, events, etc., and focus on upselling your existing customers so their additional spend makes up for any loss in revenue from the cancellations you can’t save. American Business Trivia The good news is, there is a single goal that, if you choose to make it a priority, will revolutionize your business.
To have a chance at revenue-neutral churn, you first have to focus on all areas you have control over that cause churn. A few examples are relationship marketing, pre- and post-sale education, becoming an expert advisor in their lives, and having an upsell system to help them solve additional problems. If you really want to grow, it’s unlikely you need just more leads. You’d grow simply by decreasing churn. You’d grow by upselling the customers you already have. You’d grow by building a relationship and follow-up system that helps you convert more prospects to customers. So why don’t more businesses simply focus on the above areas of their business? The answer is simple, really. All you hear about is new customers, more leads, etc., so that’s what everyone focuses on. If you really want to grow, focus on the goal many of our big brother and big sister companies focus on — finding a way to get to (or as close as possible to) revenue-neutral churn. Do that, and you’ll be swimming in cash in no time.
Sudoku
3. Which car company had to recall the Pinto because of its tendency to burst into flames in rear-end collisions? a. Chevy b. Ford c. Honda d. Lexus 4. Of these popular online retailers, which is the largest? a. eBay b. Bandcamp
1. Which fast food restaurant got its start as a barbecue joint in 1940? a. Carl’s Jr.
b. Burger King c. McDonalds d. Arby’s
2. In seasons one through three of AMC’s hit series “Mad Men,” what is Don Draper’s profession?
a. Creative director b. School bus driver c. CEO d. Janitor
c. Expedia d. Amazon
Specialized Insurance Programs For Specialized Industries. • www.insurica.com • 3
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INSIDE This Issue
Hurricane Harvey and the Generosity of the Human Spirit page 1 Do You Have a Succession Plan? Exploring New ‘Boundaries for Leaders’ page 2 The One Goal Every Business Should Have, but Almost None Do American Business Trivia Sudoku page 3
Audible: For Busy Book Worms page 4
Don’t Sacrifice Your Love for Reading Audible Is the Perfect Solution for Busy Bookworms
Reading is one of the best ways to keep your mind sharp, learn new information, and explore interests. However, busy professionals don’t always have time to sit down and read a good book. That is where Audible comes into play. Audible, an Amazon company, is a paid monthly service that gives you access to over 150,000 audiobooks at a highly discounted price, which you can download right to your phone, tablet, or computer. Though you don’t need to subscribe to purchase audiobooks through Audible, membership comes with many benefits. At $14.95 per month after the initial 30-day trial period, members are given a single credit each month, which can then be used to buy any item in Audible’s catalog, regardless of its cost, rating, or length. And, members have the ability to purchase audiobooks outside of their credits at 30 percent off retail value.
Over the past three years, audiobook sales have risen 31 percent. In 2016 specifically, audiobooks sales reached $1.8 billion dollars. And, because of their convenience, the popularity of audiobooks is still growing. We get it. Sometimes there’s not enough time in a day to get everything done that you wanted to, let alone read a book. That’s why audiobooks are so efficient. All you have to do is plug your phone into your speaker and turn up the volume. In moments, you’ll be listening to financial planning tips or discovering what trouble your favorite fictional character is getting into. Audible is a convenient, user-friendly service that gives you access to thousands of audiobooks at a discounted price. Don’t let your busy schedule get in the way of a good book. Start your free trial today at Audible.com. Happy listening!
4 • www.insurica.com • Specialized Insurance Programs For Specialized Industries.
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