“We have met the enemy and it is us.”

My commanding officer asked me, “Captain Huston, what’s the biggest challenge that we face in today’s Marine Corps?” He then pointed to a Pogo cartoon on his wall where a befuddled Pogo was gazing at his reflection in a mirror. The caption under it read, “We have met the enemy and it is us.” Conclusion: We are our biggest challenge.

During a recent Lawn & Landscape magazine State of the Industry webinar, the question was asked, “What’s going to be a CEO’s biggest challenge in 2024?” I thought about the economy, high interest and inflation rates, labor, the 2024 elections and so forth. I then remembered Pogo and my CO’s cartoon on his wall.

Growing an organization both internally and externally

In order for a business to grow externally (sales), it first has to grow internally (people and systems). To do so, the primary driver behind this growth is the CEO. If the CEO doesn’t grow, neither will the business. The CEO has to be constantly aware of two things: first are opportunities that the organization can pursue; second are threats that jeopardize the organization’s existence and/or profitability.

Effective CEOs have to be able to master four traits: First, he or she has to be able to build a results-oriented team that flourishes within the organization; next, they have to be able to implement systems that effectively control the flow of business; third, they must be effective networkers both within and without their industry; and finally, and most importantly, they must understand the role of a CEO, which is the ability to distinguish the difference between effectiveness and efficiency. Those who master these traits usually build great teams and achieve significant success. In other words, they build an organization that is perpetually successful and where people flourish.

How it works in the real world

Building an effective organization is like building sand castles on the beach. The tide is constantly working to tear down what you’ve built. You have to build faster than the ocean’s ability to wash it all away. Entropy in the form of chaos is your constant enemy. You and your team build while entropy attempts to destroy it all. Most entrepreneurs aren’t prepared for this kind of challenge; however, the skills to do so can be learned.

Because the barrier to entry into the green industry is so low, many — probably most — green industry entrepreneurs enter it with minimal entrepreneurial or managerial skills. Even a degree in business does little to prepare you for owning a business. I’ve coached hundreds and interacted with thousands of entrepreneurs over my 37-year career in this industry. It’s a learn by hard-knocks and trial-by-error training program. Unfortunately, many don’t make it and the casualty rate is very high. This is primarily because these entrepreneurs do not understand the role of a CEO and incorporate the appropriate skills into their business skillset.

Experience is the best teacher

In the introduction to the audio book version of Peter Drucker’s book, “The Effective Executive,” Jim Collins, author of the classic, “Good To Great,” tells us that Drucker is the management guru of all management gurus. He’s the best and most insightful organizational consultant of all time. Drucker tells us that managers make sure that things get done right. Leaders, on the other hand, make sure that the right things get done. The first is about efficiency, but the latter is about effectiveness. Effective CEOs learn how to focus on the right things at the right time. They delegate things that require efficiency to trusted managers while they focus on strategic items — that which no one else can do. They intentionally and consciously avoid the trap of straightening deck chairs on the deck of a sinking ship. They master the art of being an effective CEO because they work at it and learn from the experience(s) of others.

Conclusion

What’s going to be your biggest challenge in 2024? You could list dozens of possible items to head this list. However, Peter Drucker and Pogo would disagree. Your biggest challenge this year (and any year) is not an item on a list. It’s managing yourself. For many of us, it’s learning how to manage ourselves that is so difficult. Green industry entrepreneurs who grow externally first grow internally. Remember, think in terms of opportunities and threats to your company, and then build your team, your systems and network like crazy. Study to understand your role as a CEO. I’d encourage you to start by reading (I prefer listening to the audio version) Drucker’s book, “The Effective Executive.” You’ll be glad (and more effective) when you do.

Travels with Jim follows Jim Huston around the country as he visits with landscapers and helps them understand their numbers to make smarter decisions. He can be reached at: jhuston@jrhuston.biz.