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Appeared in CREW San Francisco CREW View Sept 2001

Managing a company or business unit is like sailing. You must plot your course, make navigational adjustments to tide and wind speeds, and keep focused on your destination.

In a recessionary environment, business owners are likely to be more conservative, literally tacking the sails and slowing progress. When the economy is robust, they are often more willing to take risks, using the full sheet to capture the wind. The most successful entrepreneurs, with the healthiest companies, are those who make prudent adjustments but don't let fear or enthusiasm change their course.

Although Renoir Staffing Services, Inc. has been in business over 17 years, it is only in the last few years that I've discovered the secrets of smooth sailing. Like most entrepreneurs, I started my business when I discovered an unfulfilled need. In my case, I was a portfolio manager and couldn't find experienced temporary staff who understood property management. In the early years, I felt like a kid in a sailing class, sometimes the catamaran was going backwards and wouldn't turn in the right direction. I got all wet a few times, too.

Just like learning anything, if you practice enough, learn from your mistakes and get good instruction, you'll eventually improve your skill. After making many course corrections, untangling a few knots, and applying new tactics along the way, my company, in the last five years, has sustained an average revenue growth of 36%.

While I can't advise other captains on how to sail to success, I can give you some navigational tips, based on what has worked at my company.

Create a vision - A vision is a word picture that helps employees and customers see how you envision the experience of working with the company. It is the foundation of your company culture. It can let everyone know, for example, that your company specializes in fostering innovation (3M), customer service (Southwest Airlines) or fastest delivery (Federal Express). Stay true to your market niche and corporate values, whether it is a boom or bust economy.

Written Business Plan - My business coach, Courtney Peterson of Peterson & Associates, introduced me to the idea of the one page business plan. It includes a vision, mission, and up to nine items in each of the following categories: objectives, strategies and plans. Objectives must be measurable and plans must have deadlines. Each of my employees has a personal one page business plan. It is a simple and effective way to communicate what is important to the company and assign responsibility.

Breakdown revenue goals - Instead of just making a blanket statement that you intend to increase revenues by a certain percentage, consider breaking it down into manageable pieces. Many companies divide up the revenue goals among sales people and territories, and then ask them to report monthly progress. You can also identify which portion of your revenues come from different customer types and set specific goals to increase business in each segment. Repeatedly communicate these goals to all of your employees.

Monitor Progress -- In addition to breaking down goals, I've found it beneficial to consistently review individual and company progress towards meeting the goals. When employees have to report whether or not they met the monthly goals, and what they are going to do about in the next month, they are more likely to take action. At Renoir, we meet with sales people individually for 15 minutes weekly to discuss progress. At the monthly staff meeting, each person makes a presentation reporting on sales, profit margins, revenues and other key indicators.

Educate yourself - To be a good leader you must constantly refuel yourself and develop your skills. I belong to a group of business executives called The Executive Committee (TEC). We meet monthly to discuss issues that challenge growing businesses and to learn more effective ways to manage our companies. By exchanging ideas, all of our businesses benefit.

Get outside help - As manager of your destiny, you need to know in which areas you are an expert. Admit what you don't know and get outside help. A consultant can focus on a special project and get it done better than an employee responsible for day-to-day operations. At Renoir, I've used marketing, human resources and computer consultants.

An added advantage of bringing in a specialized consultant when you are making changes in the business is that employees often respond positively to an outside expert with industry experience.

Invest in the business - Hire people who can grow with your business and be willing to reward them financially. Invest in business software and hardware that will improve efficiency. Update and communicate your policies and procedures so everyone understands your standards. Train your employees so they can develop skills to take your business to the next level. Take the time to build your network of professional associates. Make your work environment attractive, functional and comfortable.

The economy can be like the ocean, unpredictable, tantalizing and constantly in motion. With sound business practices as your ballast, you'll not only stay afloat but prosper on your journey.

Carol Kotewicz-Dencker is President of Renoir Staffing Service, Inc., a 17-year-old temporary and permanent placement agency specializing in the fine art of real estate staffing. Headquartered in Oakland, Renoir has offices in San Jose, Santa Rosa and Sacramento. Prior to starting Renoir, she worked for 15 years as a property manager overseeing portfolios of more than $30 million for major Bay Area firms. Ms. Kotewicz-Dencker appeared on 60 Minutes, served on the board of Commercial Real Estate Women San Francisco and received the Mayor Award for Community Development from the City of Oakland. She can be reached at (800) 573-6647 and ckotewicz@renoirstaffing.com, or visit www.renoirstaffing.com.