Very interesting read and key learnings from senior business leaders who are authentically sharing their wisdom with other entrepreneurs. Of course we all learn from our own failures, what a leadership gift to learn from others in our personal development journey.
How These 13 Business Leaders Learned From Their Mistakes We’ve asked 13 business leaders, from managing partners to directors, to share the most …
Situational leadership takes a contextual approach to leadership.
In this model, leaders vary their approach based on an individual’s level of competence in a particular area.
Depending on the circumstances, a leader may choose to take a more directive or more supportive approach.
These days, it’s not uncommon to hear people obsessively talking about what “type of leader” they are. People are hungry for resources that will solidify their understanding of these archetypes. But obsessing over finding the right management style can be a dead end; not only are certain methods outdated, but there’s no single tool that will work in every situation.
If you want to build an effective, high-performing team that will stay relevant for years to come, situational leadership is the way to do it.
What is situational leadership?
Situational leadership is an adaptive leadership style in which a leader changes their approach based on the individual, the task, and the context.
Situational leadership theory changes the conversation from “Who am I and how do I lead?” to “Who is the person in front of me, and what do they need from me in order to be successful?”
Blanchard and Hersey call on the situational leader to utilize a framework that relies on flexibility, adaptability, and thoughtful analysis of what people need to develop and succeed. By letting context inform what an appropriate leadership style looks like in each situation as it occurs, leaders are able to take a nuanced approach to their responsibilities
4 examples of how to use situational leadership
Situational leadership is built on the idea that teams or individuals will be at different developmental levels in different areas of their job. Based on that context, leaders can adjust their approach to help individuals develop specific skills based on that person’s unique needs and area of work.
Situational leadership defines four development levels, paired with four behaviors, as a way of understanding a person’s growth and what is required from a leader to help them move forward. None of these behaviors is the “best,” because all of this is about taking a situational approach. Let’s take a look at each one.
1. The enthusiastic beginner
This is where almost everyone starts when they’re learning a new role or skill. Their commitment is high because there hasn’t been any experience that would challenge it, and their competence is low because they have little-to-no experience.
People don’t know what they don’t know. When an employee or teammate is learning something new, the best leadership for them will be highly directive. They don’t need to be encouraged that they can do it, as much as they need to be told what to do. This isn’t demeaning, it’s just the reality of starting to learn something new.
2. The disillusioned learner
When employees are at the disillusioned learner level, they’ve probably run up against their shortcomings in the competency they’re trying to gain. This experience of failure or inadequacy, coupled with only marginally increased competence, can be incredibly deflating.
As a person is confronted with the shortcomings in their proficiency, the natural reaction is to become discouraged. If you perceive that shift in your direct report, it’s essential that you add highly supportive behavior while maintaining a highly directive posture. The critical mistake leaders make in this stage is to think that because the person has been working at a skill that they no longer need direction. However, this is actually the stage where highly directive behavior is most important.
3. The capable-but-cautious performer
At this level, the employee starts to turn a corner. As their competence increases, often people will start to move out of that low-commitment funk.
This is a critical transition, according to situational leadership theory. As someone’s competence makes meaningful progress and their commitment level increases again, it’s important to scale back the level of direction you provide while maintaining a highly supportive environment.
4. The self-reliant achiever
At this point, the developing employee has reached a point of mastery in the skill they were learning. They can perform at a high level and feel confident about the quality of their contributions.
If a self-reliant achiever is a pro at what they’re doing, inundating them with tons of direction or smothering them with check-ins will most likely backfire. It’s a waste of your time, and takes their focus away from the thing they’ve become really great at. Managers of self-reliant achievers should focus on delegating tasks more than supporting their work.
Good leaders take different behavioral approaches to each of these developmental levels because what each level requires to succeed is different. There is no one-size-fits-all approach to leadership, and you should be suspicious of anyone who claims otherwise.
High-functioning teams are supported by leaders who focus on the practical needs of the people they’re leading and offer support specific to the areas where their team is stuck. Smart managers, practicing situational leadership, give their teammates exactly what they need, when they need it.
So you want to be a business owner, but the prospect of starting your own business is intimidating. One potential solution: Buying an existing business. An existing business typically has customers, vendors and branding already in place. A good company will also have an adequate amount of inventory. That means you can take the key and continue the business without having to build supplier relationships from scratch.
This isn’t an easy route to entrepreneurship, though. Buying a business can be a complicated and arduous process, so you need to know what you’re getting yourself into. Here’s what you need to know.
Buying a Startup
If you’re an existing business owner who wants to expand your services or products, consider buying a startup. You can purchase a startup for its client list, brand, technology or intellectual property.
There are a lot of good reasons why buying a startup might be a good idea for a current business owner:
Buying a startup can help you attract and retain a different demographic without starting from scratch.
The startup might have a distribution method that is a good fit for your own business.
While the profit margin of a startup tends to be lower than an established business, it might also have less debt.
A small startup might be more nimble and able to adapt to change.
If you decide to go this route, take a close look at current staff. Look for businesses who have founders or staff with the type of talent that you are seeking. While you can always poach talent, buying a business could allow you to acquire a team that already works well together and is invested in the mission of their business.
Keep in mind that if you need to finance, startups present their own set of challenges. Obtaining a loan for a startup business can be harder, since it would not have as long a track record as a business that has been operating for a decade. The startup might not even be profitable yet, and you might need to demonstrate a path to profitability or show how it will contribute to your own company’s bottom line.
Purchasing an Existing Business
If an existing company better fits your needs, look for one that has a good reputation, a steady list of customers and low operating expenses. Understand, though, that buying an existing business means doing a lot of due diligence. Here are some things to look out for:
The founder or owner will likely downplay any issues with a landlord or customers. Ask plenty of questions and ask for documentation.
Examine several years of its financial information and focus on how much profit it generated. Also look at its cash flow, debt levels and other expenses such as rent, marketing and advertising.
Determine if the owner plans to stay on or has any children who expect to take over a portion of the business. Hammer out all the details beforehand.
Acquiring an existing business might be more costly, especially if prior investors are involved. Consider whether you are willing to seek additional investors and take on a bank loan.
Above all, make sure you go into things with an understanding of what’s made the business successful. Buying an existing retail shop or restaurant might be easier than starting one from scratch, but remember that if you change the direction or tone of the business, the existing customers may not accept the changes readily. Further, radical changes to the business and its operations could alienate existing employees. Put your own imprint on the business and find ways to improve, but tread carefully.
Buying a Franchise
A franchise is in many ways the ultimate ready-made business. The brand is already established, and your involvement in marketing may be minimal. Certain aspects of its operations may be set in stone. If you take over a restaurant franchise, for instance, everything from the supply chain to the menu will likely be fixed.
Conducting due diligence on these businesses can often be easier, too. They have a longer history, more financials and other investors. If it’s a public company, it will be even easier to find key information on the business and its financials.
There are some decisions to make, however. You must decide if you want to buy a franchise in a new or existing location. Finding the right location will take time, and requires some research to ensure adequate foot traffic. And don’t assume that the branding and marketing will take care of themselves. While large franchises have a recognized brand, some of them are only well-known in certain states or regions of the country. Consider carefully whether this is a business and a brand with staying potential in your area.
One major issue with a franchise is the loss of control. You must adhere to its rules, procedures and other standardize practices. That might be a relief to some would-be owners, but others might chafe at it. Determine if you’re an entrepreneur at heart or merely want to purchase a business which generates a healthy profit.
Disadvantages
Even if a startup or existing business is highly profitable or popular, there are some disadvantages. In most cases, you will have to retain its current employees at least for the short-term. Turning over an entire staff is not a good choice fiscally or operationally. Don’t underestimate the value of institutional knowledge, to say nothing of the impact on morale of mass layoffs.
On the other hand, existing staff might be resistant to any changes you want to make. The employees may also not like new ones that you hire. And any changes that you make toward the pay structure, benefits and other human resources issues could face resistance. Assure your employees that you are going to stay in business and will not make drastic changes. The same is true for its board of directors and its investors.
Problems could also arise with your customers, clients and vendors. They likely have certain expectations of the business: The products it sells, its methods for doing business, and the length of billing cycles.
Decide before you purchase the business whether you want the CEO or founders to stay on to provide a smooth transition or if you want them to resign soon after the deal closes. There is no right or wrong answer to this issue. It depends on your goals for buying the business, as well as your personal preferences.
Before you sign a contract, consult and hire a business broker who can help guide you in the process. This process can take several months or longer and you will likely need the assistance of an auditor and lawyer. You will likely also need to employ the services of an accounting firm specializing in mergers and acquisitions.
More Tips for Business Owners
People who own businesses also need to conduct their personal finances differently. Your taxes become more complicated, for one. Your budget and overall financial plan will also become more complicated than if you had an ordinary full-time job. That’s why many business owners choose to work with a financial advisor who specializes in these issues. We recommend using this financial advisor matching tool. Just answer some questions about your finances and goals, and the tool will match you with up to three advisors in your area.
FORT WAYNE, Ind. – How can Northeast Indiana and Fort Wayne boost development in economically distressed communities?
Many federal incentive programs have been created over the years, including the New Markets Tax Credit, Empowerment Zones and more; however, the newest investment incentive—Opportunity Zones—may have the most significant tax benefits yet.
Check out this great review of the program – be sure to check out the webinar on the opportunity zones hyperlink – it’s a fantastic overview of the program and gives great examples on how public and private partnerships come together to help communities success. We are #bettertogether
In the terms of learning how group therapy works in the field of art therapy, it is understood that personalities vary through the individuals in the group you are working with. Getting to know your group and building a relationship with the individuals is one of the main priorities in group therapy. The Johari Window is a model to guide the art therapist to notice different aspects of their individuals and can also help the individuals in realizing areas of themselves that need more assistance than others.
The Johari Window consists of four main “Selfs” or “Areas.” They are labeled Public Self/Open Area, Blind Spots/Blind Area, Hidden Self/Hidden Area, and Unconscious Self/Unknown Area. Each self is different in which what they keep to themselves and reveal to the world. Using the Johari Window is promoting self-awareness and guiding the group be aware of themselves and parts who they are.
Public Self/Open Area– area of the indvidual that is known to themself and others around them. For example, a teenage boy who is aware of his anger problems and knows that others are aware of this too.
Blind Spots/Blind Area– a part of the individual’s personality that others only see but the individual does not notice. For example, a teacher who thinks they present a happy persona, but students see that he/she gives off a mean or scary vibe. The teacher has no idea that she presents a mean persona, but her students do.
Hidden Self/Hidden Area– only the individual knows about this aspect, they do not reveal it to others. For example, a depressed teen who sulks and cries when she is by herself in her bedroom because she does not want to present her feelings in front of others.
Unconscious Self/Unknown Area– this is a part of the individual that absolutely no one knows about or notices. For example, an individual uses an unhealthy coping mechanism without noticing that it is unhealthy and others do not realize that is unhealthy as well.
I never heard of this model beforehand and found it to be extremely helpful. The Johari Window can not only be used when working with groups, but even in self evaluating. This model is one of the few things that can be used for yourself and for clients as well in art therapy. Versatile models like these are so helpful and really eye-opening.
Featured Image: [http://cpmagazine.net/september-is-international-self-awareness-month/]
The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) offers grants of up to $7,500 for honorably discharged veterans and active duty military homebuyers and up to $5,000 for all other homebuyers to assist with down payment and closing costs for income eligible homebuyers through the Welcome Home Program (WHP). Homebuyers must apply and qualify for a mortgage loan with one of our Member financial institutions to utilize the grant.
Who are Eligible Homebuyers?
A homebuyer would be eligible for the Welcome Home grant if all of the following guidelines are met:
The total income for all occupants who will reside in the home is at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located;
A fully executed (signed by buyer and seller) purchase contract on an eligible property is in hand;
The homebuyer has at least $500 of their own funds to contribute towards down payment and/or closing costs; and,
If a first-time homebuyer (typically anyone who has not owned a home in the last three years), a satisfactory homebuyer counseling course is completed prior to the loan closing. Note: Applicants do not have to be first-time homebuyers.
What is an Eligible Property?
A property would be eligible if all of the following guidelines are met:
The property will be the homebuyer’s primary residence;
The property is a single family, townhome, condominium, duplex, multi-unit (up to four family units) or a qualified manufactured home. (Manufactured homes may be eligible if they are taxed as real estate and affixed to a permanent foundation); and,
The property is subject to a legally enforceable five-year retention mechanism, included in the Warranty Deed or as a Declaration of Restrictive Covenants to the Warranty Deed, requiring the FHLB Cincinnati be given notice of any refinancing, sale, foreclosure, deed in-lieu of foreclosure, or change in ownership during the five year retention periods.
How Do I Apply?
Only members of the Federal Home Loan Bank can offer this program! Check with your local community banker and ask about their participation in the “Welcome Home” grant program.
Helping your team feel good each day is a role every leader should play. It doesn’t have to be a big thing or complicated. Sometimes the easiest actions can be the most important in helping to create engagement and make each day a little better for everyone. Here are some simple ideas for you to try.
10 Simple Things You Can Do For Your Team Today to Make Their Day Better
Community Broker News and Views 
