Regarding my last post, Steve raises an important question, “how (do) you think Starbucks should respond to the insistent analyst and market pressure to increase in-store sales each year?” First, I would ask - do the analysts and markets truly reflect an interest in same store sales volumes or is it an interest in the growth and profitability of the business? Profitability, I would say. Second, I would say it is investor expectations that are creating the pressure. Analysts are only doing what the market wants – pressuring for short-term information about short term results.

Investor expectations drive the market and, unfortunately for the most part, investor expectations are focused on the short-term – 1, 12 months. This is a predicament that has been on the mind of every CEO of publicly traded companies for quite some time. Back in 2002 Daniel Vasella, CEO of Novartis explained it very well (See this Harvard Business School article.) http://hbswk.hbs.edu/item/5194.html In a nutshell Vasella says that while quarterly CEO updates are expected and part of the fabric of today’s market paradigm, CEO’s and operating officers “can become preoccupied with short-term 'success’, a mindset that can hamper or even destroy long-term performance”.

On the other hand, the article goes on to say, in today’s age of transparency we have come to expect the CEOs of publicly traded companies provide as much information as possible, including quarterly and annual business projections.

Expectations. Like many other areas of our life, the marketplace has become more interested in quick, short-term gains than in long-term sustainable growth. Day traders, high turnover funds. When investor expectations focus on long-term growth and return rather than quick profits, the pressure for quick fixes will be lessened and short-term forecasts will be just informational and not market-moving events.

Regarding adding products, I don’t believe it’s a bad thing to add to your product offerings. What I don’t agree with is diversifying outside of and diluting the brand. Starbuck’s mission statement: “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow”. I submit that a croissant / muffin approach to breakfast accessorizes the coffee – the focus of Starbucks better than a big plate of eggs and bacon hot off the grill.

In response to Jonathan, who fears Starbucks will go out of business if they stick to selling coffee: Starbucks has been in business over 35 years, since 1971. For most of those 35+ years they sold nothing but great coffee / coffee accessories. I don’t think sticking to their mission will do anything but make them stronger.

Patrick is right on the money when he said “At McDonalds its "I'm having coffee with my meal." at Starbucks its "What'll I have with my coffee."

Have a vision and be BOLD enough to stick with it for the long term. Thanks for the comments.

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· Did your company grow by 100% last year?

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"With your help I have achieved important things that I had not been able to achieve in the last 20 years of business!"

This example may be dated, but it is "on the mark". (pardon the pun).

Have you heard the story of the four-minute mile? Before 1954 it was impossible for a human being to run a mile in under four minutes; at least that was the universal “belief”. No one believed a human being could break the four-minute mile barrier until Roger Banister proved it wrong in 1954. Within one year, 37 runners broke the belief barrier. And the year after that, 300 other runners did the same thing.

(Banister was credited with the record, but if you read the linked article, it was really a team effort – as it is with most successful endeavors. “No man is an island”. )

Or, let’s say the success of your Transcription business depends on your skill and accuracy using a keyboard. And what if you had the opportunity to increase your operator efficiency by over 40%?

Most of us have used a computer keyboard or a typewriter. Did you ever wondered why the alphabets on the keyboard are organized in the particular order in which they are? You might have thought it is to increase the typing speed. Most people never question it. However, the fact is that this system, known as “QWERTY”, was developed to reduce the typing speed at a time when typewriter parts would jam if the operator typed too fast.

In 1930, Dr. August Dvorak, an American from Seattle undertook a study of efficiency in the office. He later patented the keyboard layout he called the “American Simplified Keyboard (ASK)” after about ten years of work. That keyboard is now known as "the Dvorak”. It has been shown to increase typing accuracy and efficiency as much as 40%. Why has it not caught on? Change. The belief that it is better in the long run to stay with the system you know, regardless of the benefits available from the new system.

These two cases show the power of our beliefs and how it limits our ability to change and grow. There is no other more powerful directing force in human behavior than belief. Your beliefs will empower you to take action or disempower you into a state of fear and reluctance to change. A belief delivers a direct, albeit subconscious command to your nervous system. I'm sure you've heard about the placebo effect; people who are told a drug will have a certain effect will many times experience that effect even when given a pill without those properties. This is because it is their belief that they are being given the "real deal" and their body responds accordingly.

It is also your belief that determines how much of your potential you are able to tap at any given time, so you better examine your beliefs in detail. For example, do you believe that you can succeed in whatever you do? Do you believe you are bad in mathematics and therefore are bad in managing your business finances? Do you believe that other people don't like you and therefore you’re not good at sales? Do you believe life is full of problems? And what are your beliefs about people? Are they basically good or …not?

No belief is right or wrong. It is either empowering or limiting. A belief is nothing but the generalization of your past experiences. As a kid if a dog bit you, you might grow up believing that all dogs are dangerous. You might avoid visiting friends who have dogs in their home, which might affect the relationships you chose to have, which might affect the opportunities you have, etc. etc. To change a behavior pattern, identify your beliefs associated with it. Change those beliefs and a new paradigm is created. Change your beliefs – change your choices – change your life.

I ran across the following, making a point about the importance of being aware of your beliefs and expectations in life.

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"She met him in a singles' bar and they talked for a while. He offered her a drink and she enjoyed his company. Then he offered to drop her back home. While driving back, she realized that they were moving through narrow and strange roads. 'Oh God where is he taking me?' she thought but did not have the guts to ask. She cursed her decision to get into his car. All of a sudden she saw him taking a turn back into the highway just near her house. Smiling, he said: 'I took a short cut'."

***

Was this ending what you expected half way through the story? Be aware of your beliefs. More specifically, know which ones are empowering and which ones you need to change.

And remember - You have to Be BOLD! It all starts with a vision.

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Your business (your income) can grow only to the extent you grow.

The reality is that most people don’t reach their full potential – and in fact, 80% will not reach the level of financial success they want.

Why? Because in business, as in life, most people don’t act – they react. As Harv Eker says in his book, Secrets of the Millionaire Mind, “Most people are unconscious. They are asleep at the wheel”. Unfortunately, most people acknowledge only what they can see and address success – and their livees– on a superficial level. They live strictly in the "visible" world.

So, WHO are you? What do you think about yourself? How confident are you in your abilities and talents? Who are your mentors – who do you look to for inspiration? How much do you trust others? What is your “perseverance quotient”? In other words, how well do you act when you aren’t in the mood, in spite of inconvenience, discomfort or fear?

Your character, the way you think and what you believe are key determinants in your ability to succeed.
In the past, I’ve used the iceberg analogy to describe this principal: the theory that the visible part of an iceberg represents five percent of it's total size; the other 95 per cent remains invisible beneath the water.

Knowledge or technical skills are no longer enough for success in today's world. These represent the mere 5%, or the "tip of the iceberg" of today's needed competencies. Keeping with the iceberg analogy, where "skills" and "knowledge" are "above the water line", deeper competencies such as "core motivation" and "self-concept" are usually hidden beneath the surface, yet exert enormous influence over daily behavior. It is these deeper, enduring competencies for which it is more important to identify and select.

Therefore, if you wanted to effect change in an iceberg – or your business, profession or life - wouldn’t you agree it would be a better to work on improving the invisible 95%?

In his book, Eker uses a different, easy-to-understand analogy; a fruit tree. Imagine trying to improve the fruit a tree produces by focusing on the fruit already hanging. If you want the tree to produce better quality, larger, sweeter tasting fruit; you need to work on what’s not visible – the roots.

If you want to grow your income, increase your external success – invest some time on your internal growth. Trust me. As humans, we’re part of nature, not above it. When we align ourselves with the laws of nature or, as Napoleon Hill taught, Universal Laws, our lives unfold more smoothly. When we don’t, it gets rough.

Until next time, Be Bold – It starts with a Bold Vision.

PS - On February 21 I'm leading a workshop I named "The 5 Principals to Your Best Year Yeat in Business with Balance". It will be from 8:30 to 11:30 in my office in South Portland. The cost is $139 and participation is limited to 8. If you're interested send me an email: lynnelle@BoldVisionConsulting.com or visit our website; www.BoldVisionConsulting.com

On a personal level we call it a resolution. In business it’s called a plan, a strategy or just a plain ‘ol goal. The beginning of the year is the most popular time (although it shouldn’t be the only time – but we’ll leave that subject to a later date.) to contemplate improving ourselves, our lives, our businesses and the world around us.

 Give back to the community;
 Increase profitability by 20%;
 Realize the work/life balance you crave;
 Improve your level of physical fitness;
 Expand your business to a 2nd location;

….It all starts with a vision.

As business people, we tend to dismiss the discussion of vision and belief, or faith, as being “out there” or “too new age” to be a business application, but the importance of vision in a strong leader and in a successful company is undeniable.

To have a vision means to literally see yourself having achieved what it is you want to achieve.

Imagine:
 You hear the applause as you cross the marathon finish line;
 You see your 7-digit savings account balance;
 You taste the ‘99 Cheval Blanc as you toast your first million dollar deal;
 You feel the wind and sun on your face as you motor along the coast of Maine in your new 52 foot Grand Banks (a gift to yourself for meeting your 20% profitability growth goal).

Your vision is your burning desire and you live your success first, in your mind.

One of my favorite quotes is: “Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.” --Joel A. Barker

Future- focused planning, visionary leadership – these may seem like a new ideas, but if you pay attention to business books, journals and publications you know that the topic of vision, visionary leadership, future-focused management, etc. has been around for years. Written in 1994, the book Built to Last – Successful Habits of Visionary Companies by Jim Collins, Jerry I. Porras, spent over 6 years on the Business Week best seller. These discussions have now become more mainstream.

Small businesses tend to lag larger businesses in adopting new ideas. Don’t continue to play catch up. Business is business, large or small. As 2006 begins, I challenge you to develop a vision of yourself and your business succeeding, achieving the results you need to take your business to the next level.

Develop and protect this vision as you would any other valuable business asset. Visit this vision regularly throughout the year. Then, with your vision in the forefront, you can’t help but take the actions that will move you closer to making it real. I think you’ll be surprised by the difference such a seemingly “out there” practice can make.

To get you in the mood, here are some of my favorite pearls of wisdom on the subject. Here’s to your happy, healthy, wealthy and wise 2006. ..and remember, BE BOLD. It all starts with a vision.

Throughout the centuries there were men who took first steps down new roads, armed with nothing but their own vision. –Ayn Rand

Capital isn't scarce; vision is. –Sam Walton

If you don't have a vision, nothing happens. --Christopher Reeve

Formulate and stamp indelibly on your mind a mental picture of yourself as succeeding. Hold this picture tenaciously. Never permit it to fade. Your mind will seek to develop the picture. –Norman Vincent Peale

The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet. – Theodore M. Hesburgh

I skate to where the puck is going to be, not where it is going. –Wayne Gretsky

Where there is no vision, there is no hope. –George Washington Carver