Author Archives: Tom Foster

About Tom Foster

Tom Foster spends most of his time talking with managers and business owners. The conversations are about business lives and personal lives, goals, objectives and measuring performance. In short, transforming groups of people into teams working together. Sometimes we make great strides understanding this management stuff, other times it’s measured in very short inches. But in all of this conversation, there are things that we learn. This blog is that part of the conversation I can share. Often, the names are changed to protect the guilty, but this is real life inside of real companies.

Systematic Abandonment

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Thanks to all those who posted comments last Friday in response to our post about forecasting. As promised, I will be sending out a copy of Real World Intelligence to those who participated.
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“We have an idea for a new product line,” Alicia sounded off. “It’s a logical extension of our core product. We all think it will be a winner.”

“How are you going to fund the startup and who are you going to assign to this new project?” I asked.

“Well, that’s a problem. We are currently under a hiring freeze and while we have a budget for Development, actually ramping into production is going to pinch,” she grimaced.

“What are you going to let go of?”

Alicia was a bit surprised. “We hadn’t really discussed shutting anything down.”

“Alicia, the biggest mistake that young companies make is that everything looks like an opportunity. Before long, all their resources are spread thin and their product portfolio is a hodgepodge. They can’t figure out if they are in the shoe business or the construction business.

“To be truly successful, the company has to decide on its focus, and create a discipline around that focus. Especially in times where resources are tight, we have to make sure we have enough staying power. This requires an approach of systematic abandonment. As you adapt to the market, it is important to cut off those projects that are no longer returning value.” -TF

Market Intelligence

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Registration for our next Leadership program in Fort Lauderdale closes Monday, February 25. Visit www.workingleadership.com.
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“Well, to be honest, it is very difficult to forecast revenues,” Cynthia explained. “You have to understand, we are connected to the residential housing industry and things are much different this year than they were last year.”

Cynthia’s candid assessment of forecasting revenues in the residential housing industry underscores the dynamic nature of the real estate market. Indeed, fluctuations in economic conditions, housing trends, and consumer behavior can significantly impact revenue projections for real estate professionals.

Navigating the search for real estate is no small feat, especially when buyers are met with a mix of enthusiasm and uncertainty. As prospective homeowners scroll through listings and tour open houses, they often find themselves confronted with industry-specific terms that can be perplexing. One such term, “pending,” frequently appears beside listings that once seemed like dream homes. In real estate, “pending” means that an offer has been accepted by the seller, but the transaction has not yet closed. This stage typically involves inspections, financing, and final negotiations — essentially, it’s the limbo where hope hangs in the balance.

Understanding the implications of pending status is crucial to streamlining your home search. Many buyers wonder whether a pending home is still up for grabs — and while deals can sometimes fall through, it’s not something to count on. That’s why it’s important to adjust expectations and refine search filters accordingly. Resources like https://exprealty.com/guides/what-does-pending-mean-to-your-real-estate-search/ provide clarity on how to interpret such listings and avoid the heartache of falling in love with a house that’s already halfway to someone else’s welcome mat.

As the market continues to shift with interest rates, supply chain effects, and evolving buyer preferences, having a well-informed approach becomes more essential than ever. Real estate searches are no longer just about location and price — they’re about timing, terminology, and tools. With the right understanding of statuses like “pending” and access to reliable platforms that decode the jargon, buyers can make more confident, better-timed decisions in a marketplace that waits for no one.

Armed with this knowledge, buyers and sellers alike can make informed decisions and navigate the complexities of the market with confidence and clarity.

“But you have to make decisions based on your market. You have to make decisions about overhead, pursuit of market share, gearing your operations to meet a diminished demand. How will you make those decisions?” I asked.

“I don’t know. Things are just so different. I don’t think it’s possible to forecast this year’s revenues,” she continued to protest.

“Cynthia. If you cannot forecast revenues, then you don’t know your market. If you don’t know your market, you might as well sell the company right now.”
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How does your company forecast revenues? How do you engage in Business Intelligence about your market? Post a comment. The best post will receive a copy of Real World Intelligence by Herbert Meyer (former Special Assistant to the Director of Central Intelligence). “Ninety-five percent of what the CIA finds out about, is public information.”

Allocation of Your Most Precious Resource

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“Looking at the future,” Glen contended, “we are desperately looking for that new something that is going to help replace some our declining lines of business. We find something, we gear up for it, commit some people to the project, but so far, all of those projects have failed. We end up pulling the plug.”

“Who have you committed to these new projects?” I asked.

“Well, they are new projects, so we generally take those people that we can spare from our core project lines.”

“Are these your best and brightest people?”

“Well, no. Our best people are still running our core projects. But we can usually spare a couple of people from one of their teams.”

“So, you are trying to cobble together a launch team, in an untried project area, where unforeseen problems have to be detected and corrected, and you are doing this with spares?”

Focus

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“But, I want to improve,” Barbara stated, flatly. “If there is an area, where I need improvement, or where I make mistakes, I want to focus on that.”

“Indeed, if you are an ice skater,” I replied, “and your laces are untied, you are likely to take a nasty spill. So get your laces tied, tightly, so they don’t trip you up. But getting your laces tied, does not make you a champion ice skater.” -TF

The Choice

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“You decide,” I said. “You decide what you want to improve on.”

The class had just completed a survey, looking at strengths and weaknesses.

“You decide, if you would like to focus on and improve an area of weakness. Or you may decide to focus on and improve an area of strength.

“Correcting a weakness only creates a mediocre performance. Building on a strength creates mastery. You decide what you want to improve upon.” -TF

Not Me?

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“I don’t think it’s me,” Marion repeated.

“You are angry at the person who gave you the negative feedback and you would like to ignore the feedback,” I confirmed.

“Besides, even it were true about me, I can’t change, that’s just not me. I couldn’t do it. Out of the question. I don’t see how anyone could do that.”

I looked at Marion. Without a word. Silence.

“But if you could change, what would you do first?” I asked. -TF

Part of the Problem

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Marion’s bottom lip protruded. If she was eleven years old, I would have sworn she was pouting.

“I think I know who said that,” she announced.

“Is it important?” I asked.

“Well, I think they have a chip on their shoulder and this evaluation was just a chance to vent, to make me look bad.”

“Marion, there are positive things in this evaluation, and there are negative things here. You like the positive stuff, but you don’t believe the negative stuff.”

“Well, I think this person has an agenda. I don’t think it’s me,” she continued to protest.

“Do you think that is part of the problem?” -TF

Are They Buying the Work?

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“I try not to think about them,” Gene continued. “We have fifty trucks, they have six trucks in this market. Worse part, they are taking work for way less than us. Sometimes, I think they aren’t here to make money. I think they are here just to make us look like bad guys.”

“So, they are taking work at a lower price to the customer?” I asked.

“Yeah, sometimes, it’s lower than what it costs me. They are buying the work.”

“Let’s look at a couple of things, Gene. First, they don’t have an office over here?”

“No.”

“They don’t have an office over here, so they are using their dispatch people in their home office, using Google maps or something. They are billing people using either credit cards or invoicing from their home office, sending the invoice by fax, email or snail mail.

“They aren’t competing in the Yellow Pages, only on the internet, so their hard advertising costs are less. Gene, I don’t think they are working on a lower margin than you. I think they have figured out a lower cost structure. In fact, even with a lower price to the customer, they may be making more money than you.” -TF

Only Six Trucks From Out of Town

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“So, it’s important to be Number One or Number Two in our market. I get that. Third or Fourth place just creates a target. Can we use geography to narrow our market definition? I mean, as a local supplier, we have an advantage. We can honestly say that we are Number One in our local market,” Gene explained.

“Yes, if your market is truly a local market. But, Gene, I gotta tell you, I have seen some trucks rolling around town from a new competitor I haven’t seen before,” I replied.

“Yeah, I know who they are. Their headquarters are on the other side of the state. They don’t do any local advertising. I think they are depending on the internet to get their leads. They show up pretty heavy in search engines. But, still, they’re from out of town.”

“Gene, I visited their yard. They don’t have an office, but they have six trucks in your local market.” -TF

The Crumbs Will Disappear

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“Yes, we have a couple of competitors, big competitors, but they pretty much leave us alone. We’re much too small in the market to be more than a thorn in their side,” Gene explained.

“So, as the overall market contracts and the Top Competitors’ revenues get pinched, where do you think they will go, to hold on to market share,” I asked.

“Well, we always hope they will fight with each other,” Gene continued.

“Why would the Top Competitor in the market fight with Number Two when they can just come in and take out Number Four or Number Five?”

Gene sat up in his chair, suddenly uncomfortable. “Well, Number Four would be us. And they have always left us alone. After all, we just pick up the crumbs that fall off of their cake. Why would the Top Dog want to come after us?”

“Why would the Top Competitor want to spend a lot of money, energy and resources fighting with Number Two, when they can take your customers without a whimper?” I asked again.

I could see Gene’s eyes tracing this chess game in his mind. “Look, Gene,” I continued. “In any market, when times are good, it’s easy to be Number Four, living off the crumbs. But, when the market gets tight, the only place to be is Number One or Number Two. Number Three and Number Four will have their heads handed to them.” -TF