Peter F. Drucker wrote, “The most important task of an organization’s leader is to anticipate crisis.”   Taylor Studios experienced a crisis in 2009 as many firms did.  We were a subcontractor of Design Craftsmen on a project for the Marine Museum.  This was a six figure project built into our schedule for the year.  Design Craftsmen went out of business and we lost the work.  Ouch!  Ironically, I had asked my executive management team the month before what would we do if we lost that job.  We had a plan of attack in case this very thing happened.  The very day we read the Midland, MI newspaper article on Design Craftsmen’s demise we took action.

The first step was to communicate to everyone in the company that there was a crisis.  Within a few days I also shared the following quote with my staff:

“It is not the critic that counts, the credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood … who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end of the triumph of high achievement, and … if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat.”  - Theodore Roosevelt

Taylor Studios’ management had to make some very tough decisions, including layoffs.   I think we were marred by dust and sweat and blood, but because of our management team’s effort we came out of the arena still standing and strong.  Even though we were stunned by the news, we were able to make very quick decisions.  In reflection, I am really proud of how we came through this storm and how well we implemented our plan.  Leaders have to make painful decisions.  It is a poor leader that doesn’t make them at all or waits too long.

Our armor is shined up and we are ready for the 2010 arena!  It is looking like it will be a great year.

How well do your leaders handle crisis?

Posted by: Betty

Back in 2008 I took an Emotional Quotient test to test my emotional intelligence.   Daniel Goleman, author and psychologist, writes about the importance of emotional intelligence in order to be a great leader.  On my test, my lowest score was empathy.  Given that it was the Holiday Season I thought I should blog about something like empathy and this is what I came up with.

I was not surprised that my empathy score was low.  I believe strongly in self reliance, self responsibility, self sacrifice, an internal locus of control and that you are in charge of your own destiny.   I am happy to help those that help themselves.  I don’t like it when people play what I call a victim, villain, helpless role.  I do like to help people be more than they thought they could be.  This quote by John Quincy Adams sums up my leadership approach, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”    So, if you got yourself into credit card debt, don’t come to me for empathy, but I might kick your butt in the right direction to fix it.

Emotional intelligence consists of:  self-awareness, self-regulation, motivation, empathy, and social skill.  Several studies have noted that the most successful leaders have the strongest emotional intelligence.  Empathy can be increased by methods that involve looking at things from the perspective of others.  It is useful to have this perspective when communicating with others also.  Thinking about what the other person wants will help to achieve a successful communication.   From this perspective, I think my empathy score might be higher if I were to take the test now.  I often try to put myself in the other person’s shoes.

My empathy score indicated I had difficulties with consistently understanding what others are feeling and thinking.  I still may have difficulties with some of that, especially when dating.  However, I have humbly shared some of my weird dating stories with my staff and I think it will help keep them married.  That is my silly gift this season.

How would you rate your empathy?  How would you rate your emotional intelligence?

I wish you a healthy, happy and prosperous new year!!

Posted by: Betty

Over the last two months, I have immersed myself in all things social media.  I increased my blog reading time, I attended a seminar where Gini Dietrich provided some of the most useful tips I’ve found so far,  I created a Facebook profile for myself and a page for Taylor Studios, as well as a Twitter account and a LinkedIn profile, and I added about eight books on the subject to my Amazon.com list in hopes of getting one or two for Christmas.  While I was skeptical about all things social, I am now a convert.  I am in no way, shape, or form an expert, however.  I would love ideas on how to improve Taylor Studios’ presence in the world of social networking.  What do you want to know about us?  In the coming year, what would you like us to discuss on our blog or our Facebook page?  We want to be the source to which you refer in 2010 when looking for information regarding exhibits, design, fabrication, RFPs, and business in general so please let us know what questions you have.  We’re listening and can’t wait to start a conversation with you.

Posted by: Kara

We are in the story telling business.  We tell history, cultural, nature and science stories.  We tell stories in 3-D.  You can feel and walk through our stories.  If we are good storytellers, we will engage visitors.  People remember stories (and themes).  People enjoy stories.

I have studied business for over 20 years.  I like statistics, data, graphs, charts, schedules, plans, metrics, directness, facts, logic, reason and net income.  I used to think if I just give people facts they would understand, just like me.  I have also studied psychology, communication and human behavior and know facts are not as impactful as art.

I want to become a better storyteller.  I want to find my muse.  I am surrounded by inspiration.  Artists have surrounded my life.  I spend lots of time with horses and in nature, whose beauty can bring tears to my eyes.  I’ve started to read more poetry to improve my muse and hopefully my story telling abilities.  If I can learn to write and speak with more creativity, I believe I will have more impact.

I recently read the book Zen in the Art of Writing by Ray Bradbury.  In the chapter, How to Keep and Feed a Muse, he writes the following:

Art will fly if held too lightly,

Art will die if held too tightly,

Lightly, tightly, how do I know

Whether I’m holding or letting Art go?

I think my favorite poem is by Robert Frost - Stopping by Woods on a Snowy Evening.  What is yours?  How do you find your muse?

Posted by:  Betty

How do you plan for things that are likely to happen?  This week we learned we are likely to increase our work load in design by three times.  The likely schedule for this work is rather quick.  We will need to increase our capacity with hiring and other investments to accommodate this increased work load.  These investment decisions have risks as some need to be made within uncertain terms.  To a certain degree, all business decisions are made with uncertainty as none of us can predict the future.  However, some decisions are bigger than others.

At Taylor Studios, management often does contingency planning.  We do “what if” scenario sessions.   For this particular project, we will do a pro/con analysis.  We will put percent probabilities into the equation.  Probabilities are educated guesses.  We ask ourselves, given our current base of knowledge, what is the likelihood that this project will really be completed by 2012?  What is the probability the amendment to the contract will be signed in time for us to complete the work?  What is the likelihood other parties involved in the project will stay on schedule?  Based on these probabilities, we will make investment decisions.

Other planning will include: plugging numbers into our various capacity reports, drafting schedules, making decisions on which team members go on which projects, what equipment and software do we need to purchase in the upcoming months, etc.  How do you plan for uncertainty?  Do you have the risk taking ability, like entrepreneurs, to make these types of decisions?

Posted by: Betty

When looking for an exhibit firms, here are a few qualifications you might want to consider.

1)    In-House Capabilities

If nothing else is known about an exhibit firm, their in-house capabilities may be quite telling.  If it’s a small one or two person firm, they can’t offer interpretive planning, project management, exhibit design, graphic design, and fabrication.  If they do, you know they are hiring subcontractors or are teaming with another firm to complete the work.  In this type of situation, single source accountability is lost.   By hiring an experienced turnkey firm, clients know exactly who to call if a problem arises and the firm won’t be able to pawn the problem off on another company.

2)    Warranty

The warranty an exhibit firm provides speaks to their quality and customer service.  Typically, firms cover their exhibits for a year.  When spending several hundred thousand dollars on exhibits, shouldn’t they be covered for more than just a year?  I only know of one firm, however, that provides a five year warranty.

3)    Bonding Capacity

Bonding capacity is important because it shows the financial stability of a company.  If a firm is not capable of getting a bond, that’s a red flag.  The firm could potentially close its doors before completing the project.  It might also mean they delay payment to the subcontractors they used to finish a project.  For more information about Performance and Payment Bonds, read Betty’s blog post Why Performance Bonds are Important.

4)    Processes and Procedures

It seems many “creative” firms resist implementing processes and procedures.  Processes and procedures are paramount in keeping both projects and staff organized and on schedule.  Clients should ask firms to see the plan the firm intends to follow.  Reviewing the firm’s methodology for completing the a project before the project begins can answer questions and alleviate some problems or concerns earlier rather than later potentially saving time and money.

When you hire an exhibit firm, what qualifications are most important to you?

Posted by: Kara

We estimate that 85% of our projects are delayed by the client.  This means our clients do not meet the original contractual dates.  The most common reasons for delays are:

• Client has not made a final decision on a design submitted for review (the larger the committee the more likely this will happen)
• Client has not provided the resources needed for the design, e.g. photos, copy, research
• The building construction is behind schedule

I think it is common knowledge that delays cost money.  If you think of every additional hour spent on a project as additional dollars this makes logical sense.  Here are some examples of delay costs:

• Creating a new project schedule
• Drafting a change order to make the new schedule official
• Additional communication with the TSI team
• Additional communication with the client, more phone calls, more written communication
• Department Heads have to reschedule all team members’ time
• The company master schedule has to change
• TSI’s available hours reports have to change
• Someone has to be moved to another project while we are waiting on the client
• Last minute flight has to be booked which is more expensive
• If the end date does not change, overtime charges will have to be added to the project
• If billing is now delayed, this affects the cash flow of the company, which may cause interest charges
• Accounting has to change reports to accommodate these delays
• Exhibits are taking up valuable space in the shop

Our clients also have many of these same costs when the project is delayed.  Delays cause a long chain reaction.  At TSI we run 10 to 20 projects at a time.  Any one project delay often impacts another project.  Imagine having 85% of your projects delayed and managing your forecasted labor needs.  It is a juggling act.

Of course, most of our clients are not happy when we charge for delays.  We want to be flexible and accommodating.  We do everything we can to avoid charging for delays.  However, at times it is inevitable we will have to charge.  We have signed contracts that we are fined for every day we are late.  We often wish this was a clause that went both ways.

In the future, I will write about what we are doing to reduce the amount of client delays.   How do delays cost you money?

Posted by: Betty