Urgent Versus Important

Do you make the best use of your time?  

I believe if we were honest, our answer would be “No”.  We all are guilty of squandering some time on tasks of less importance.   Certain items on our to-do lists which desperately need our attention are continually pushed to the bottom of the list for a variety of reasons. We vow we are not procrastinators simply because we’re always busy. So what’s up with that?    

Urgent versus Important

This excerpt from Carl Richard’s book, The Behavior Gap, is long-winded but worth the read.  His explanation offers answers for why we have a tendency to complete less important tasks.

Carl Richards writes:

“Some tasks are both urgent and important. They belong at the top of your list.  Some tasks are urgent but not so important; still others are important but not so urgent.  Typically, the ones that are urgent but not important get done.  The phone gets answered.  So does reading the Facebook posting from your high school classmate. 

Meanwhile, the tasks that are important but not urgent drop to the bottom of the list and stay there.  This can cause big problems.  Dreams are awfully important. But they often don’t seem urgent.  And so our dreams fall to the bottom of our list.

You might need to fix the car – that’s probably urgent, and might be pretty important.  Shopping for a new surfboard?  Probably feels urgent, but it’s not as important as some of the non-urgent stuff that will affect your family’s long-term security.  (My surfer friends may disagree.)  Clarifying who will take custody of your children if you die?  Might not feel so urgent, but it can be awfully important.

On a day-to-day basis it’s easier to focus on the urgent stuff, leaving non-urgent but important stuff to wait.  Which would you do first: get the car washed or update your will?  The car is really dirty!  The will? What’s the rush?

What’s more, updating your will – like buying life insurance or setting up college savings account – is a complicated process.  Washing the car is easy. 

We also enjoy the sense of checking urgent (not always important) things off a list.  Some urgent tasks (shopping for that surfboard!) are even fun.  By comparison, sitting down and working through the details of your personal and financial lives may not seem to offer the same sense of excitement and immediate gratification (though it can). 

Of course, the important eventually becomes truly urgent.  But by then it may be too late to do much about it.”

Did you discover why we have a tendency to complete less important tasks?  Tasks which are fun, easy to do, or provide instant gratification are likely to get done before tasks which have a steep learning curve and are time consuming.

So now what?

Understanding Time Management

 

While you need to have a to-do list to check off tasks, you also need to determine the order in which your tasks can be completed so you can make wise use of your time.

Carl Richard’s reference resembles the time management concept presented in Stephen Covey’s book, The 7 Habits of Highly Effective People.  When we examine our activities, we can break each into one of four quadrants, as illustrated in the above diagram. 

·       Important and not urgent (Important Goals)

·       Important and urgent (Critical Activities)

·       Not important and urgent (Interruptions)

·       Not important and not urgent. (Distractions)

It is helpful to designate tasks as either “urgent” or “important”.  Stephen Covey defines “urgent” as the things which require your immediate attention and “important” as things having to do with results related to your mission, values, and high priority goals.  Ideally, we want to be proactively working on the issues that are “important but not urgent” in order to prevent events from escalating to issues that will become both “important and urgent”.  

What’s the next step? 

Let’s Get It Done

I would venture to guess that we know which tasks provide an everlasting effect on our personal and business financial health.  What may slow us down is deciding which tasks should be completed first.  I am in favor of finding the right tools (or worksheets) which can help get the job done.  It’s helpful to have a visual picture like this worksheet to rank the goals in order of priority.  It also allows everyone to complete their individual worksheet and then arrange a joint meeting to discuss the order of goals in urgency and importance.       

Now You Know

We look at the calendar, see another day slip by, and quickly say “Good-bye” to another month.   We know we’ve been busy but we’re never entirely sure what we’ve accomplished.  Surely, one task or goal requiring our attention was left untouched.  We have a fleeting thought that one day it will get done.  The challenge is to stop and make a sincere effort to begin the process of tackling that goal. It may be one of your important goals.  

Stephen Covey’s wisdom rests in these words, “The key is not to prioritize what’s on your schedule, but to schedule your priorities.”    

 

Top Five Considerations to Kick-Start Your Succession/Transition Plan

My top five considerations provide a snapshot of specific things to kick-start your succession plan.   Before we examine these considerations, let’s acknowledge that the word “succession” is being replaced with “transition”.  You might agree “transition” is a more user-friendly word.

“Succession” gives the impression that the present owner is being replaced (or displaced).  This thought doesn’t sound appealing or motivating to someone if this means being “put out to pasture”.  When “transition” is used instead, the immediate image represents a “change”.  Although change can be frightening in some regard, it can also be exciting.  New experiences may emerge while specific stresses can be passed on to other family members through the transition process.  Sharing knowledge and wisdom with the younger generations can be rewarding. Celebrating successes as a mentor can be motivating.        

Some common threads prevent many farm family businesses from developing their transition plans.  The reason may simply be that other important tasks take priority.  However, what could be more important than protecting you, your family, and farm business?   Here are five considerations worth pondering to kick-start your transition plan.

1.     Identify Your Mountains.

Your mountains are the challenges you run into when you attempt to conquer a task.  Undertaking “transition planning” is a journey. You are likely to encounter a few mountains even before you start this journey.  What mountains are on your list?   

·       Is it fear?  Are you afraid of approaching the subject with family members?  Do you anticipate confrontation which you would rather avoid? 

·       Are you concerned that you may not have a successor?

·       Does the entire transition process seem too complicated?

·       Are you unsure how to begin?

·       Do you believe you have plenty of time to deal with transition planning?

Once your challenges are identified, determine three possible solutions or strategies to tackle them. 

2. Appreciate “Time”.

Time is money. 

Forbes Magazine shared Ed Slott’s quote: 

“Time is the greatest money making asset any individual can possess.”

This is true.  You have time to create your wealth as well as to protect your wealth for your family and yourself.

Time is also your friend.  Time allows you to prepare for a crisis situation as well as explore various transition options: 

§  Have family members eventually take over your roles.

§  Work with a partner with the option of a potential merger. 

§  Sell your business to an outside buyer (third party). 

§  Hold a liquidation sale of your equipment, buildings, and real estate.   

Time provides ample opportunity to groom a successor or convince a successor that they should buy your business rather than start one.

Time allows your successor to develop their skills, learn the ropes so to speak, and arrange the financing required to buy your interest.

 If your first choice for a successor doesn’t work, you have time to look for others.

Time also permits you to “work” on the finances of your business, analyze your business, and if necessary, make improvements to showcase its value.

3. Do Your Homework.

Financial statements are important documents to confirm the current and past performance of your business.  Your Income and Cash Flow Statements reveal your business’ earning power as well as its potential value.  Your Balance Sheet and Net Worth Statement are beneficial in determining the tax liability and current market value of your assets.  

“Opening the books” to a third party or even your family shows whether you are being rewarded for your blood, sweat, and work.

If you are looking to increase productivity, another helpful process is a SWOT Analysis. This identifies your business’ strengths, weaknesses, opportunities, and threats. Then you can determine appropriate strategies to implement.  Typical questions are:

(S)  What do we do exceptionally well?

(W) What could we do better?

(O)  What opportunities do we know about, but have not addressed?

(T)  Are weaknesses likely to make us critically vulnerable?

Writing a Business Plan for a farm operation can be a useful lifeline to understanding why you do what you do in your business.  Key sections highlight your potential market, customers, products, and services, as well as mission and vision statements.  Probing what your business currently looks like and what you want your business to look like in the future can be helpful in making decisions.   Your Business Plan passes on powerful insight to potential successors.

4.    Build Bridges and Close Gaps. 

               

You don’t know what you don’t know so you may need to lean on your advisors for help with your transition plan. Simply put, “No man is an island entire of itself” which emphasizes the need to build bridges with experts to implement a successful transition. Your experts range from, but are not limited to, accountants, lawyers, lenders, investment advisors, insurance representatives, business coaches, and financial planners.  Collaborate with these experts. “Collaboration” is a great word since this means to work jointly on an activity especially to produce or create something.  Your creation is a thorough transition plan. 

Building bridges also occurs with family members. If you and your family are miles apart in your discussion on transitioning the business, consider closing the gap.  There’s no better time than now while you have time on your side. At the very least, start slowly  with conversations which feel safe.

Scheduling regular business meetings effectively keeps everyone informed about business affairs and actively seeks their input. Decisions which ensure the business survives and thrives are important to its success, creating a legacy for future generations.  Others should be knowledgeable and informed about the business’ practices to ensure the business survives an unexpected tragedy.  The principal business owner may suddenly become ill or injured.  The worst possible situation may be an unexpected death.            

Using everyone’s skills and talents also closes the inefficiency gap.  Ernesto Sirolli, author of the book Ripples from the Zambezi, shared three areas in business, referred to as the “Management Trinity”.  They are producing the goods or services for sale (which is the labour component), marketing the product, and managing the finances.  One person is generally skilled in two of the three areas.  Knowing your strengths and those of your family members will determine who is best equipped to oversee the management areas.    Sharing the responsibility with others who have strength in areas binds forces to create a win-win situation for the business.

Conversations which are respectful and honest are important for family who work side-by-side to build a successful business.  Without good communication skills, family members are likely to jump to conclusions, do things their own way without any consultation, and make rash decisions.  In the end, the family business will suffer as a result. Closing the communication gap will create family harmony rather than conflict.   Developing a Code of Conduct and a standardized operating procedure for addressing conflict will help in building family unity. 

5.    Focus on the end result.

“Begin with the end in mind,” advises Stephen Covey, in his book, The 7 Habits of Highly Effective People.  Ignoring transition planning is like carrying the weight of the world on your shoulders. On the other hand, when you begin the process, you will feel a sense of renewed energy as you take charge.  When you schedule regular business meetings or appointments with your advisors, you will achieve small victories on your journey. These baby steps eventually see you to the end.  Since this journey may take between three to ten years, any progress towards the ultimate goal is better than no progress.  When you persevere through your challenges and use your time wisely, you will arrive safely at your destination with a transition plan in place.  

I said it before in a previous blog, Don’t Wait, Just Start, and I will say it again, “You have to ‘Eat That Frog’.” The items on your to-do list need to be identified.  Transition planning is something you can’t put on a list but the incremental tasks can be broken down into a list. The longer you procrastinate the more overwhelmed you will be with the entire process. Start small but start nonetheless.  You will be glad you did.              

How Did We Get It Wrong?

 

Do you know you have a communication style?  You may even have more than one.  With different people, you may be selective.  What I find amazing is, as children, we learn to talk starting with simple words, learning our ABC’s, and forming short sentences.  Along the path, our use of language is modeled after the significant people in our lives: parents, teachers, friends, and co-workers. We may never have been taught the appropriate way to communicate.  How do we get communication “so wrong” that we have to re-learn “how to talk”?

Do you remember an unpleasant incident when someone said something to you that’s embedded in your memory forever?  I remember being told, “You ever do that again, I’ll break your fingers.”  Now, flip your memory to a time when you said something you wish you never had.  Regretfully, I know I have.  My words pierced the heart of someone when I sarcastically criticized him for being like his father.  Ouch!

Communication is something we do every day. Our words either build people up or tear them down. Our words can lead to meaningful conversations or cause silence.  Whoever we associate with daily, can either respond negatively or positively to what we have to say.  Like me, we go through the normal course of our day, doing things the way we always have.  Listening and speaking contribute to a communication style we are unaware we have. Like you prefer a specific style of vehicle, you may prefer a specific communication style that is “Assertive”.  As Claire Newton explains in her article, The Five Communication Styles, surprisingly the assertive style is used the least. Her meaning for assertive is respecting yourself and other people.  It is the ability to clearly express your thoughts and feelings through open honest and direct communication.

Claire Newton describes in detail the different behaviour and language associated with her list of five: Assertive, Aggressive, Passive-Aggressive, Submissive, and Manipulative. Identifying yourself and others with a particular communication style may be a thought-provoking exercise. To learn more, click here.  

When you comb the Internet, you will be surprised to see the amount of information dedicated to communication styles.  What does this tell you? I would say understanding the way we communicate is important “stuff”.  Communication styles help people identify themselves and others so they communicate effectively.  Look at the various titles in each group. Which one are you?

q  Driver, Expressive, Analytic, Amiable

q  Action, Process, People, Idea

q  Relator, Socializer, Thinker, Director

q  Doers, Thinkers, Influencers, Connectors

Sharing this information contributes to understanding your family’s make-up.   When discussing money matters, we keep getting back to the development of an important habit shared by Dr. Steven R. Covey:  “Seek first to understand, then to be understood.” The better (and more) you can understand the way others think, communicate, and react, the more successful your relationships will be. When discussing money issues about saving and spending, how effectively do you communicate your reasons?  If goals, dreams and aspirations are not shared effectively in meaningful conversations, then pinpoint whether a specific communication style is the road block.

The place to start is with awareness. The following excerpt from Iyanla Vanzant’s book, One Day My Soul Opened Up, struck a chord with me. Probably the reason I have been so smitten by her rationale was because I could see myself in her story. 

A teacher once told me, “If one person says you are a horse, you don’t have to listen.  If two people say you are a horse, you probably need to pay a bit more attention to what you are doing.  If three people say you are a horse, more than likely you have hay hanging out of your mouth and a saddle on your back!” In other words, people looking at you can see things that you may not be aware of. Very often we are unwilling or unable to discuss with one another the unpleasant aspects of ourselves.  Rather than discuss what we feel, we criticize one another.  People always told me I looked angry.  When they were saying I looked angry, they were saying that I was defensive and combative. Whenever these things were said to me, I would become offended and would go into a long tirade about people not knowing me, what I thought, or what I felt.  I usually ended my little speech by saying how sick and tired I was of being criticized, and that I was not angry, damn it!

When you refuse to pay attention to what life is saying to you, life will make its point very clear.  Life wants us to be aware of ourselves so we can make the necessary adjustments in order to live more harmoniously.  Life was trying to make me aware that I was acting like a horse, but I kept insisting that I was a kitten.  

At some point in our lives, we need a wake-up call. Awareness is the key to understanding your relationships with different people. I am not a psychologist; I am a financial planner. But it doesn’t take a genius to see that relationships break down because people do not communicate effectively. 

What’s the solution?  Walking with blinders, pointing a finger at someone else, and complaining he doesn’t understand your motives, isn’t the solution. Perhaps a practical one is to be aware of the personalities and communication styles of others.  If you are unsure about your own, ask someone to give their honest opinion or search for an on-line quiz which will provide the answer.  Learning what makes other people tick, including yourself, is a step in the right direction to “get it right”.