Loops: The Seven Keys to Small Business Success (BUSINESS BOOKS) - Hardcover

CHAET

Hardcover

ISBN 10: 0071624872 ISBN 13: 9780071624879

Publisher: McGraw Hill, 2009

Synopsis

Why do some smallbusinesses succeed whileothers fail?

That is the question one young entrepreneurfaces in this illuminating business parablefor our times. Loops reveals the soul-searchingstory of Tony, a business student whodoesn’t understand why he can’t quit schooland work in the family business.

Then his professor surprises him with an unusualfinal exam―a twelve-week, summer-longstudy of the small businesses in his localarea. This simple real-world assignment opensTony’s eyes to the most important lessons anentrepreneur can learn, such as how to:

• Manage “experience zones”
• Build strong customerrelations through “visionmoments”
• Standardize key processesfor employees
• Innovate, improve, andmaintain quality
• Accomplish real results by“closing the loops”

As you follow Tony’s journey, you’ll receivea week-by-week crash course on theseven essential loops for small business.You will learn how to distinguish yourselffrom the competition, improve your operations,and close the loops. Best of all,you’ll discover innovative ways to apply theloops concept to every challenge you face,with every endeavor, in any economy.

When you close the loops, you open thedoor―to limitless opportunities.

About this title

About the Authors

Mike Chaet, Ph.D., a.k.a. “The Club Doc,” is the founder and president of CMS International, the fitness industry’s largest consulting firm. A lecturer, author, and consultant, he has been involved in the development and management of over 2,500 clubs and small businesses worldwide.

Stephen C. Lundin, Ph.D., is a bestselling author, speaker, filmmaker, and graduate school professor. His book Fish! has appeared continuously on the Wall Street Journal and BusinessWeek bestseller lists, and has been published in 34 languages.

From the Back Cover

"Every small business owner can significantly benefit from the LOOPS approach to small business."
--Steve Dee, former president, Wyler's Foods

WHAT ARE "LOOPS"? Loops are the essential keys to success in any small business. They are the relationships you build. The services you perform. The products you deliver. If you want to thrive in today's economy, you need to close all the loops:

Loop One: Manage Your Experience Zones
Loop Two: Build a Winning Culture with Vision Moments
Loop Three: Help Execute Fundamentals with a Loops Group
Loop Four: Standardize Every Process
Loop Five: Innovate Constantly
Loop Six: Live in the Real World
Loop Seven: Lead by Example

Legendary small business consultant Mike Chaet and bestselling Fish! coauthor Stephen Lundin combine years of hands-on experience with a refreshingly simple concept that goes straight to the heart of successful entrepreneurship.

Relating the personal journey of a young man entering the world of small business, the authors explain how to close the seven essential loops that really matter-- the commitments that build trust, the innovations that improve service, and the day-to-day routines that deliver real results.

Excerpt. © Reprinted by permission. All rights reserved.

LOOPS

The Seven Keys to Small Business Success

By Mike Chaet, Stephen C. Lundin, Vince Moravek, Mary Chaet

The McGraw-Hill Companies, Inc.

Copyright © 2009 Mike Chaet, Ph.D. and Stephen C. Lundin, Ph.D.
All rights reserved.

ISBN: 978-0-07-162487-9

Contents

Acknowledgments
Introduction
Implementing Loops in Small Business
PART ONE • The Journey Begins
The Last Day of Class
An Unexpected Meeting
The Summer Plan
A Conversation with Dad
PART TWO • The Seven Essential Loops
Loop One: Manage the Experience Zones
Loop Two: Build a Winning Culture
Loop Three: Monitor the Fundamentals
Loop Four: Standardize Every Major Process
Loop Five: Innovate
Loop Six: Live in the Real World
Loop Seven: Lead by Example
PART THREE • The Final Loops
Two Meetings: One Expected and One Unexpected
Loops, A Common Thread
Senior Year; Entrepreneurship 201
The Final Examination
Language of Loops: A Glossary
Model of Loops: The Loopogram
Closing Loops: Mary's Seven Lessons
More about Loops
About the Authors

Excerpt

CHAPTER 1

THE JOURNEY BEGINS

Just as all business starts as small business, all business leaders start asstudents. We must never lose the openness to surprise, discovery, and adventurewe had as young students.

Last Day of Class

Tony Simms was restless. At the front of the classroom, the good Professor Daviswas working hard. It was the last class session of the school year, and aheadwere finals and a full three months to do something other than sit in classes,read books, write papers, and take tests. The students in Entrepreneurship 101were ready to escape, and the good professor was trying to make a few finalpoints by summarizing the highlights of the semester's studies.

The students were unaware of the fact that their final exam would leave many ofthem with their mouths hanging open. It would be a final exam unlike any theyhad ever taken. Professor Davis wondered how it would be received.

This last class in entrepreneurship wasn't going well at all. The studentsseemed preoccupied, perhaps thinking of their summer jobs or the loomingincrease in leisure time. They were entrepreneur students after all, perhapsmore wired for action than for sitting.

Tony's mind was contemplating an old issue. He was finishing his third year atCarroll College, majoring in business, and for three years he had wondered whyhe was in school and not working full time in the family business. He was havingthose same thoughts today, even though it was the last day of class.

His mother reminded him often that it was his dad's wish that he be the first inthe family to get a college degree. So here he was, a good student, but hewanted to be somewhere else. He reminded himself of his personal commitment tomake the most of his time in school regardless of his preference to be working.But his mind wandered anyway.

Is this really what dad wanted? Mom is certainly capable of running theshow; she's been doing that successfully since dad died and was his partnerbefore the accident. But I know I could be of more help to her. I'm not surethat dad thought about this. Did he anticipate that she would double the size ofthe business? I could be working full time and taking courses on the side. Ienjoy learning, but I should be helping mom.

The sound of chalk against slate drew Tony back to attention, and he read whatProfessor Davis had just written on the board:

The Customer Is Always Right

"The business world is full of aphorisms. This statement is perhaps the mostcommon. The customer is always right. But in business school we try tolook beyond the obvious and think for ourselves. Is this statement true?"

Half a dozen hands went up.

"Simms?"

Tony wasn't surprised when Professor Davis called on him for a seemingly obviousanswer. He knew Tony was having trouble deciding on a topic for his seniorthesis, and there was the fact that Professor Davis had been a lifelong friendof his dad and was scheduled to be on that ill-fated chartered plane three yearsago for their annual fishing trip to Canada. Professor Davis's wife, Betty, gotill, and he reluctantly decided to skip the popular annual fishing trip andremain at home. Tony had a vivid memory of his dad reassuring Professor Davisand telling him, "There's always next year Rob! You take care of Betty."

"True," Tony replied after a slight pause, "and not true. Because evenif he's wrong, it accomplishes nothing to make her wrong, so he is right." Good-natured laughter filled the room at his wise use of gender.

"Clear, concise, and whimsical as always, Tony," Professor Davis said. "Care toelaborate? What happens when it's obvious to everyone that the customer iswrong?"

Tony thought about how he had seen his father and his mother handle customers atthe family chain of fitness centers.

"It's not that the customer is really always right. It's ourpredisposition that the customer is always right. It's with thatpredisposition that a good businessperson approaches every customer interaction.And if the customer turns out to be wrong, we still try to make it right."

Tony continued, "There is, of course, one big exception. The customer is notright if she or he is acting in an abusive, crude, or offensive manner with anemployee or another customer, even if he or she is right about the issue.Abusive customers we can do without because our employees are our firstcustomer."

"Spoken like someone who has spent some time in the trenches," chuckledProfessor Davis. "What does Tony mean when he says the employee is the firstcustomer? Ping?"

Ping paused, and with a quick movement of her head, she tossed her luxuriousblack hair back so that her face was fully visible, smiled, and responded,"First, I want to compliment Tony on his sensitive nature when it comes to therole of women at work. I am sure that all the women in this room deeplyappreciate his use of language ... and would like to know him better." With thatshe glanced at Tony with a faux temptress smile, and Tony turned a bright shadeof red.

Tony and Ping had known each other since grade school, and their rivalryfollowed them to college. Lately, Tony had felt completely outclassed by Ping onseveral occasions. This was one of those occasions.

Professor Davis commented quickly, "Ping. I know it's springtime, but could weget back to the point, please?"

"He means that if we want to take care of customers, we have to take care ofthose who take care of customers. I remember seeing a film about SouthwestAirlines, and the president of Southwest at the time, Colleen Barrett, was realclear about this point when she said that employees are our firstcustomer."

"Thanks, Ping. You've said it well. Our employees are our first customer," andthe good professor went on to further illustrate this point and bring the classto a close.

The customer is always right, thought Tony, after being momentarilydistracted by the comments of his long-time friend and rival. How many times hadhe heard that? Hundreds? Thousands? It must be the most universally acceptedtruth in business.

That's when it hit him: He had never heard his dad say those famous words. Why?It seemed odd that he had never heard them uttered by his father, one of themost successful businessmen in town?

But Tony knew the answer immediately. Anthony Simms, the "Club King," didn't goaround spouting aphorisms about the customer being right because he didn'tneed to. It was deeply embedded in his business DNA, and he modeled it inhis every customer interaction. There was never any question about his beliefsbecause they were reflected in his actions.

Again his attention returned to Professor Davis as he announced, "I have alittle surprise for you. There will not be a typical final exam for this classduring exam week."

There was a smattering of applause and a couple gasps.

"But before you get too excited, there will be an assignment in itsplace. Let me explain.

"When you return from the summer, you'll be in your senior year and facing theneed to complete a final thesis before graduation. Our business school has builta reputation for being practical and real-worldbased. We'll talk theory, but notwithout a full dose of reality to make the medicine go down.

"A large number of you have not yet filed your senior thesis topic, and thosewho have filed have for the most part proposed topics that lack a little ... howshall I say this? ... passion. So I made a proposal to the dean a fewweeks ago, and he supported it enthusiastically.

"I have prepared a final exam that at the same time will allow you to make someprogress on your thesis. Here's your assignment. You have all summer to completeit. I look forward to seeing all of you in the advanced entrepreneurship classin the fall, and I will collect your assignments then.

"And remember the choice you always have in my classes. You can do theassignment to get it done, or you can do it in a way that serves you as adeveloping entrepreneur. It can take about the same amount of time either way,but in the first case you get a grade and in the second case you get somethingthat lasts a lifetime. Make this assignment work for you! Well, enough lecturingfor one year."

"Dr. Davis!"

"Yes, Bob?"

"I need to have a grade to get my financial aid for this semester. An incompletedoesn't work."

"Hmmm ... good point, Bob. I forgot to mention that part of the plan." Davis'seyes gleamed. "I'm giving you all B's. Unconditionally. Why? Because you've allshown that you deserve that grade, or better, based on the excellent work you'vealready completed. But to have a shot at an A, you'll need to do theassignment."

Bob frowned. "But ... then why do the assignment, Professor? I mean, if it justmeans that you have a chance to get an A, and without any guarantee atthat, or to have a stress-free summer, why do the assignment? It really doesn'tseem like a difficult choice. No disrespect meant, Professor, but is there atrick here?"

"No, Bob. No trick. But, as you might guess, there is an embedded lesson here.This is a class in entrepreneurship, and one thing we can't really coveradequately with lectures and readings is the importance of being proactive. Noteveryone can do that, but it is important to success in business. Not everyoneis wired to go into business for himself or herself, and that's okay. There areplenty of good jobs in big business.

"We're all different in the way we're wired for business. Some of us won't behappy unless we're calling our own shots, and some of us would rather work forsomeone else.

"I believe that this assignment is the most important assignment of yourbusiness school life. Whether you do the assignment or not, you'll learnsomething important about yourself. The assignment may not affect your grade,but it will affect your education.

"With this assignment, you'll come face-to-face with something important to allentrepreneurs—the internal motivation needed when you are in business foryourself. An important part of your education is what you will learn aboutyourself as you weigh the options."

With that, Professor Davis distributed and quickly reviewed the finalassignment. After answering a couple of technical questions, he simply declared,"Have a great summer!" and left without another word. Not a student moved.

Finally, Bob spoke. "This is too weird. I'm going to accept my B and enjoy mysummer. Why not? See you guys in the fall."

The students left in small groups, talking quietly as if they were in thelibrary or a museum. Two of the students were already thinking of the assignmentas an opportunity.

As the room emptied, Tony decided to go directly to Professor Davis's office.Most of his classmates were aware that he knew Professor Davis personally, buthe didn't want to make too much of that fact with anyone but Ping. She was socompetitive that he liked to use his personal relationship with Davis to goadher.

But Tony had an odd feeling about the assignment, and he instantly knewwhom he wanted to study. But there was a problem. And he wanted to talkabout it with someone who surely understood.

"Nice surprise," Tony remarked to the professor as he walked though the opendoor of the office and greeted the man who was like an uncle to him. Then henoticed that Ping was already there, sitting in the big stuffed chair in thecorner.

"Hello, Tony. Would this be a good time to get to know you better?"

"I'm sorry. I can wait in the hall."

"Ping and I were just taking care of a loose end." And with that, Ping stood andleft the room. As she passed Tony, she smiled. "Have a good summer, Tony. Anddon't be a stranger."

Tony came into the office and sat down in the warm chair.

"The assignment is fascinating."

"Yes. You probably see your mom's handprint on this assignment. Mary is alwaysbugging me about making my assignments practical. 'Use the real world as yourclassroom,' she frequently suggests when she gets into her lecture mode. 'Sendme graduates who have some practical sense,' she says. And I certainly agree. Doyou see any possibilities in this assignment?"

"I knew immediately what I want to do ... but I have a problem."

"Oh? What's that?"

"I want to study a successful businessperson who is no longer living."

"Ahhh. I thought you might go that route."

"I'm not sure how to approach the subject. I can remember a lot, but most of mymemories are from my early teenage years. I've learned enough in psychology toknow how much my teenage perspective could affect my perceptions and memories.While I want to study my dad, I'm not sure how to proceed because I can nolonger talk with him."

With that comment, Tony found it necessary to pause and regain his composure.

"Sorry, Uncle Rob ... ah ... Professor Davis. Some things you never getover. I miss him so much."

"Take the time you need, Tony. I would like to say that I understand, but Idon't because I am not in your shoes. I do know the sadness of losing my bestfriend. I can only imagine...." They sat in silence for a moment.

After a moment, Tony said, "Do you see my problem?"

"I do. I think your mom can be of considerable help, though. She should be ableto identify those individuals your dad respected. That group of businesspeoplecould hold some answers for you."

"Good advice, Uncle. Thanks for the time."

"I'm here when you need me. So ... it sounds like you're going to do theassignment."

"Absolutely. I want to help mom with the business, but I'm sure I canfind a way to complete the assignment too. See ya!" And with that, the son ofthe Club King headed for his car.

An Unexpected Meeting

Tony pulled into his driveway and was surprised to see his mother's car. As hewalked along the side of the house to the kitchen door, he could see his mom atthe table. What the heck is she doing home during business hours? Heimmediately recognized that as a silly thought because their clubs were openfrom 5 a.m. to midnight.

"Hi, Mom. Are you all right?"

"Right as rain, Tony. How does it feel to be just about finished with yourjunior year?"

"I had a few surprises today, but ... are you sure that you're okay? You'realways at the club this time of day."

She smiled. "Didn't they teach you about delegation in business school?"

"That they did, Mom. But you and dad also taught me about being presentand visible in the business 24/7."

"Perhaps we overdid that a little. Anyway, I wanted to be here to talk with youabout your surprise. Let's say I had some inside information about theassignment."

"So you and Uncle Rob talked about the so-called exam. Why doesn't that surpriseme?"

"And have you decided what you're going to do with this final assignment?"

"What do you mean?"

"Are you going to take the easy B and sunbathe at the beach, or are you going toaccept the challenge?"

Tony laughed. "I am a bit pale and sure could use some sun. But I'm alsoexcited to take on the challenge. And yes, I have chosen my subject.Picked someone immediately."

"Anyone I know?" Her proud look said it all.

"Oh, I think you know him quite well, Mom. Give me a hug before I startblubbering for a second time today!"

After a few warm moments, she held her son so that she could look at him, andblinking back tears, she said, "My dear, you're the reason I'm home. Ithought we could use some privacy if you wanted to talk about this unusual finalexam. I think it could be a great way for you to prepare for your future,whatever it holds. What are you thinking?"

So Tony told her how Professor Davis had suggested he might study thebusinesspeople his dad knew and respected as an indirect way of studying hisdad. When he was done, he asked, "Will you help me put together a list?"

"I've already started, son. And I have a few ideas that might make theassignment more useful to you as you prepare for your place in this business."She passed him a piece of paper.

Wide-eyed, Tony looked up from the list. "My, you have been busy, Mom. Isuppose I'll need to share my grade with you.

"Only if it is an A."

"Do you think you'll be able to identify someone for each category?"

"Your dad knew a lot of people, Tony. And he seemed to attract the best becausehe recognized and respected the best."

"These categories remind me of dinner-table discussions. I grew up thinkingeveryone had family dinners where they sat around the table and talked aboutbusiness stuff. Now I realize how special that was."

"Family dinner was a priority for us. And it also kept us sane. It's too easy tolet a business consume you."

(Continues...)

(Continues...)

Excerpted from LOOPS by Mike Chaet, Stephen C. Lundin, Vince Moravek, Mary Chaet. Copyright © 2009 by Mike Chaet, Ph.D. and Stephen C. Lundin, Ph.D.. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Edition details

• Publisher: McGraw Hill
• Publication date: 2009
• Language: English
• ISBN 10: 0071624872
• ISBN 13: 9780071624879
• Binding: Hardcover
• Number of pages: 143