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sam palazzolo

Q&A with Tip of the Spear Ventures’ Sam Palazzolo

June 2, 2020 By Tip of the Spear

‘We went from talking about sales acceleration and strategic plans to working in survival mode!’

Sam Palazzolo
Sam Palazzolo

I’ve been counseling businesses from the Fortune 500 to small businesses as a strategic partner for more than two decades. Believe me… I’ve seen my fair share of ups and downs! Perhaps that’s why I was recently interviewed to gather my thoughts on where we’re at as a business community and what we must do in order to recover successfully. Here is a transcript from that interview… Enjoy!

Interviewer: How would you describe the current recession… How does it compare to 2008?

Sam Palazzolo: I remember well the great recession of 2008. I had just left a successful corporate career at Toyota, including working retail running a few large franchises. I had just launched my second company when the recession hit (Good timing, right?) What we are seeing now is a similar pattern, albeit greatly accelerated. The difference between is that was a financial meltdown… This is a medical pandemic induced recession.

After successfully exiting a startup I was leading, I formed my current company (Tip of the Spear Ventures) in 2012. Part of my job is providing business advisory services to a host of clients. The advisory services focus on three (3) specialties as subject matter experts (SMEs):

  1. Sales / Business Development
  2. Mergers & Acquisitions
  3. Business Turnarounds

Interviewer: Set the stage for us… How were things going before all this happened?

Sam Palazzolo: I had been on pace to travel this year for 40+ weeks, down from my typical 48 weeks annually. The clients I visited were actively seeking help with their businesses, primarily in architecting Strategic Plans and Sales / Business Development blue prints until it all blew up and the phone calls started.

Interviewer: What hit first?

Sam Palazzolo: At the same time the order came to shut down and stay home, there was also a request to identify what to do now? So we were working right away with business owners early on.

Interviewer: How did your job change through all this?

Sam Palazzolo: I spent the majority of my days answering phone calls, texts and emails. We pulled together some intellectual property regarding the pandemic, and specifically what to do about it as a business leader. Based on our research, we compiled and presented webinars… Lots of webinars! To date, and we just calculated this figure at the end of May, we had completed roughly 70 webinars.

Interviewer: What were the webinars about?

Sam Palazzolo: We took a two-pronged approach. The first focus was on business survival — what can businesses do to preserve cash runway, raise funds, adjust sales forecasts, consider appropriate marketing, implement headcount strategies, and control capital spending.

These played themselves out in webinars on leadership, working remotely, virtual sales techniques, serving the customer virtually, and more. At the end of each webinar, we always make a point of polling participants for what additional topics they’d like to see researched/presented. This has fueled future session development on all too timely topics.

Interviewer: What kinds of issues have you encountered along the way?

Sam Palazzolo: Like everyone else, we’re working remotely. This poses several challenges, namely ensuring that you have the proper home office setup (Best internet bandwidth available, phone connections, etc.) You can count on the unexpected occurring! The big question is how will you overcome these technology challenges and make sure you receive forgiveness from participants.

Interviewer: What other issues are business leaders dealing with?

Sam Palazzolo: The top issues are reduction in income and sales, of course. Businesses were closed by direct order of the government, considering some essential and the vast majority non-essential. That’s what makes this unique. Usually a downturn in the economy takes a little time to develop, giving business leaders time to prepare. But this was on a huge scale, all at once. Roughly 15% felt as though they were thoroughly prepared to face the oncoming pandemic… Only 15%!

Interviewer: What’s the scenario in a normal recession?

Sam Palazzolo: Typically, if you think about an economic wave, the crest of the economic wave, things are going well and then something happens that starts a decline and the economy contracts. Normally that takes weeks or months to play out. Then you hit the bottom of the recession, the trough, that can last 16 to 18 months and the recovery begins, eventually leading back to prosperity. What makes this so unique is the sudden drop-off to a recession. As I mentioned previously, this is a medical pandemic NOT a financial pandemic. Regardless though, in a matter of days things began to plummet putting an immediate hardship on all businesses.

Interviewer: So, if everything reopens, is there a shortcut to the recovery phase?

Sam Palazzolo: Some believed early on that it could return to normal as quickly as it came upon us. A lot of it depends on how this plays out with the virus itself. People are now understanding it’s going to be with us for a while, which means a new normalcy, new health and safety standards across the board. It’s going to change a number of existing business models. People at this stage are doing a lot of hypotheticals about how requirements will affect business. The customer base, the employees, the supply chain.

Interviewer: Where are we now?

Sam Palazzolo: We’re in the pre-recovery period right now. We’re still assessing new information from the state and regulatory agencies on how to reopen. A number of businesses are weighing their options — is it worth continuing or just shut the thing down and move on. That’s a tough, stressful period for business owners and families. Our acquisitions business has helped identify a positive recovery path. Keep in mind, in any downturn in the economy you’ll see some businesses end up closing. Those businesses who do survive are often in a much better place. The reason being, former competitors are gone, creating an opportunity to grow. Others find new opportunities. It’s a cycle.

Interviewer: What is happening now with your clients?

Sam Palazzolo: We went from talking about sales acceleration and strategic plans to working in survival mode!

Filed Under: Blog Tagged With: leadership, pandemic, sales, sam palazzolo, strategy

How to Embrace the Power of ‘Yes’ in Business Turbulent Times

March 18, 2020 By Tip of the Spear

The Point: These are truly turbulent times in business for leadership. Make the right moves, and you’ll be a hero! Make the wrong or no moves, and you’ll be far from a hero!! I’ve seen a lot of negative-speak lately as COVID-19 takes an enhanced grip on the globe. Recognizing that it’s awfully difficult to agree to deals that no longer make sense (especially when your business hair is on fire!), it made me wonder if we’re looking at the business-landscape through too negative a lens? So in this post, we’ll explore how to embrace the power of ‘Yes’ in business turbulent times… Enjoy!

How to Embrace the Power of Yes’

Starting with ‘No’

“I loved saying ‘No’ when times were good… I cherish the opportunity now that times are bad to say it with even more conviction/volume!” a purchasing manager at a client recently shared with me. If they’re like most purchasing managers or leaders I’ve worked with, during negotiation they’ve learned the single best tactic towards achieving a successful outcome for themselves/their company is to begin with ‘No.’ While embracing the power of ‘No’ typically leads to continued negotiations, and hopefully positive (or ‘Yes’) results for both parties, the possibility exists for negotiations to breakdown, stall or worst case scenario come to a screeching halt.

So, what are the effects of starting negotiations with ‘No?’ From Harvard Business School and Harvard’s Department of Psychology, research has been conducted and summarized on how the utilization of ‘No’ not only leads to poor negotiation traction, but often times the negative feelings associated with future negotiations. Furthermore, negotiations that start with ‘No’ typically break down, as participants perceive the inflexibility of the other party.

Starting with ‘Yes’

In business turbulent times such as these, the last thing I would recommend to a client is to take a bad business deal. As a matter of fact, I don’t think even in non-turbulent times taking a bad deal in and of itself is a good option! However, is there a way in which we can successfully not start with ‘No’ during negotiations? What would be the outcome in starting with ‘Yes’ instead?

Starting with ‘Yes’ overcomes the initial negativity often experienced during a negotiation. The inevitable “I should have started higher” thought permeates the negotiators mindset. However, this can not only lead to earlier agreements, shortened sales-cycles, but also better outcomes for both parties now (as well as in the future!)

‘And” is Better Than ‘But’

So how can starting with ‘Yes’ be better in negotiations than starting with ‘No?’ The key, according to a mediation expert, is to utilize the conjunction ‘And’ instead of ‘But’ in negotiation moments. Supported by the Harvard research, this technique often “[O]pens a window of opportunity for addressing multiple issues, and using new approaches, while mitigating the taint of pejorative shadings [leaves both parties].” ‘And’ also avoids the dismissive nature associated with using ‘But’ during negotiations.

Starting with ‘Yes’ using ‘And’ Example

Here’s an example of how to properly utilize ‘Yes’ as well as ‘And’ in a typical negotiation. For framing purposes, your company is being pitched a new software piece that will significantly reduce costs and increase utilization (Yes, this is possible!) However, it’s your birthday and the strategic partner calling on your company knows it… So, they inquire:

SP “I heard it’s your birthday today?”

YOU “Yes, that’s correct, and I’d love a cup of coffee and a doughnut.”

SP “Well then let’s go get one!”

Admittedly, this is not the greatest negotiation example (after all, who wouldn’t like a doughnut, and do we really need to wait until it’s your birthday to have one?!?) But the point I’m making is that if we had started with ‘No’ and utilized ‘But” in the response we’d be looking at a negative negotiation with the potential of stalling/stopping and having caused future negotiation to not occur (All future negotiations!)

SUMMARY

In this post we’ve explored how to embrace the power of ‘Yes’ in business turbulent times such as these. We explored the Harvard research surrounding the negativity of ‘No’ as well as how to positively leverage ‘Yes’ for successful negotiation outcomes. The key in utilizing, and especially in starting with ‘Yes’ is to use the conjunction ‘And’ to stipulate what you’d like to see have happen as a result of beginning, and staying, at ‘Yes.’

Sam Palazzolo

Filed Under: Blog Tagged With: business, covid-19, embrace the power of yes, leadership, sam palazzolo, starting with no, starting with yes, turbulent times

The Leadership Challenge: Burnout

August 22, 2019 By Tip of the Spear

The Point: As a leader, you’ve experienced burnout. I’m not talking about physical burnout where you can’t take another step from exhaustion. What I’m referring to is the emotional exhaustion that results in depersonalization and decreased personal accomplishment at work. Perhaps it’s the latest project approaching completion, or maybe the promotion that passed you by… We started thinking here at the Javelin Institute and Tip of the Spear Ventures what exactly is behind leadership burnout and what (if anything) can be done to successfully turn a leader from burnout to a blaze again. So, in this post we’ll explore the leadership challenge of burnout… Enjoy!

Burnout: The Good, The Bad and Mostly Ugly!

Leadership burnout is best characterized by emotional exhaustion that results in both depersonalization and decreased accomplishment/results in the workplace. The emotionally exhausted leader is overwhelmed by leading to the point of feeling fatigued, unable to face the demands of leadership, and unable to engage their stakeholders. The burned-out leader often develops a sense of cynicism, detaching themselves from work and viewing stakeholders – especially subordinates – as objects along the way.

Fatigue, exhaustion, and detachment culminate in the leader experiencing burnout to the point where they no longer feel effective because they have lost their sense to contribute meaningfully. The growing trend of leadership burnout should be identified as a threat to strategic plan adoption for most organizations.

Burnout and Safety

Unless you’re in a clinical setting as a leader, your performance is rarely one where decisions made (or a lack thereof) are life or death for individuals or organization… Or is it? Characteristics of the new economy’s leadership environment, including time pressure, lack of control over work processes, role conflict, and poor relationships between groups combined with personal predisposing factors (i.e., bias) and the emotional intensity of work put leaders at high risk. From my executive coaching conversations, I estimate the prevalence of leadership burnout range from 10%–70% among leaders (SVPs, VPs, Directors, Team Leaders, etc.) and 30%–50% among senior leadership (CEOs and CXOs – COO, CFO, CHRO, CRO, CMO, etc.) If you/your organization are not looking at the signs of leadership burnout (Further broken down in the next section), an intervention should be staged to address the topic.  Afterall, my experience shares that most leaders view their burnout as a threat to stakeholder safety because depersonalization is presumed to result in poorer interactions with them (Often causing lower communication effectiveness and poorer initiative results). However, typically the signs of leadership burnout go undetected or unaddressed.

Burnout Perspective

At one of the organizations I work with, 40% of the leaders surveys reported at least one symptom of leadership burnout. Burnout rates (unsurprisingly) were higher for those who rated their leaders unfavorably. My survey also found that even with exceptionally high customer experience (CX), customer satisfaction, and net promoter scores, leadership quality accounted for roughly half the variable in such scores. So, what exactly are the signs of leadership burnout? The following list of burnout signs is from Psychology Today, broken down into (1) Physical and Emotional Exhaustion, (2) Cynicism and Detachment, and (3) Ineffectiveness and Lack of Accomplishment:

Physical and Emotional Exhaustion

  • Chronic fatigue
  • Insomnia
  • Forgetfulness/Impaired Concentration and Attention
  • Physical Symptoms
  • Increased Illness
  • Loss of Appetite
  • Anxiety
  • Depression
  • Anger

Cynicism and Detachment

  • Loss of Enjoyment
  • Pessimism
  • Isolation
  • Detachment

Ineffectiveness and Lack of Accomplishment

  • Feeling of Apathy and Hopelessness
  • Increased Irritability
  • Lack of Productivity and Poor Performance

SUMMARY

In this post we’ve explored the leadership challenge of burnout. Best characterized by emotional exhaustion that results in both depersonalization and decreased accomplishment/results in the workplace, burnout poses a risk to be managed in the workplace. By knowing and recognizing the signs of burnout, leaders can address or seek assistance so as to maintain organizational and career course/trajectory.

Sam Palazzolo

PS – 2020 will be here before we know it, and I see some disturbing Leadership-trends taking place. If you’d like to receive a white paper I wrote on “5 Ways Your Leadership Will Succeed in 2020” CLICK HERE.

PPSS – As we crossed-over the halfway point of 2019, I’ve launched my most aggressive initiative to date. It’s a 501(c)(3) structured nonprofit that provides Executive Education to allow you to become the BEST leader possible (NOT Good, NOT Better… BEST!). If you’d like more information, please watch the following 2-minute overview by CLICKING HERE or plug this URL into your browser: https://javelininstitute.org/welcome-to-the-javelin-institute/

Filed Under: Blog Tagged With: burnout, javelin institute, leadership challenge, sam palazzolo, tip of the spear ventures

The Leadership Challenge: Decision-Making – Three Tips!

August 5, 2019 By Sam Palazzolo, Managing Director

The Point: We all make thousands of decisions daily. Take for instance your drive into work today; Did you take the same route as you always do? Did you take the road less traveled? Would you alter routes if you heard about the accident ahead that has traffic snarled to a stand still? My point is that decisions are everywhere, but there are some decisions that should have tremendously more weight assigned to them as a leader (Should we acquire our competitor as part of our growth strategy? Is our CXO really the best CXO we could have? Etc.) With all these decisions to be made as a leader, we started thinking at Tip of the Spear Ventures and The Javelin Institute, is our decision-making process the best that it could be? In making decisions, are we really asking the right questions at the right time? So, in this post we’ll explore the leadership challenge of decision-making and provide three tips… Enjoy!

Caution – Decision-Making Zone Ahead!

The University of North Carolina recently conducted research on decision-making as part of a study. Their conclusion was that the typical adult makes on average 35,000 decisions each and every day. These decision-making opportunities range from the simple (Should I brush my teeth or don’t brush my teeth?) to the complex (Who am I and what do I stand for?) 35,000 decision-making moments each day… Researchers at Cornell University estimate we make 226.7 decisions each day on food alone!

If there are 24-hours in a day, and the average person sleeps (or is supposed to sleep) for eight of those 24-hours, that leaves 16 wide-awake decision-making hours. The math boils down to 2,188 decisions to be made every hour, and roughly 36 every minute. That’s a lot of decision-making opportunities!

Are Autopsies Enough?

If you’ve followed me for some time, or even if you haven’t, I believe that decisions should be reviewed afterwards in autopsy-like fashion. The reason for these decision-making autopsies is to identify if in the given moment, with the facts as we knew them, if the appropriate decisions were made. If they were, great! If they weren’t, what better decision could have been made?

I’ve worked with thousands of leaders around the globe on this post-mortem autopsy analysis over the years, but is it enough?

Sam Palazzolo, Managing Director @ Tip of the Spear Ventures | Principal Officer @ The Javelin Institute

I recently was working with a leader on their decision-making abilities. They were labeled within their respective organization as a leader that was “Rarely in doubt, but often wrong!” Convinced that they were in fact making the right decision-making calls, they were at a standstill (and hence I was brought-in to work with them). After a few days, I realized something about our leader. They were extremely bright, well thought-out, and well liked in the organization. However, there was one aspect that struck me as so simple, so straightforward, that I wondered why our leader hadn’t thought of it… The one item was involving others in decision-making.

You alone as a leader cannot and should not look to make your best decisions based in and of yourself.

Decision-Making – Three Tips!

As a leader, there are a lot of decisions to be made. At stake with those decisions are items such as increasing shareholder value, achieving financial targets delivering key results, the employment of thousands, communities that count on you, etc. But decision-making in and of itself is not an insular game played with just one team player within an organization. You alone as a leader cannot and should not look to make your best decisions based in and of yourself.

While involving others in decision-making can become complicated really quick, here are three tips (or questions) that I would encourage you to ask to ensure that you get your best outcomes. Those three questions (or tips) are:

  1. Do you trust others that are providing you with information for decision-making?
  2. Do you argue freely before making decisions?
  3. Are you holding one another accountable for following through?

SUMMARY

In this post we’ve explored the leadership challenge of decision-making and provided three tips to assist. Having worked with thousands of leaders around the globe over the years, according to the University of North Carolina decision-making study I’ve seen somewhere around a bazillion decisions be made. Some decisions were good (lucky?), some were bad (unlucky?)… But overall there were decisions made that all could have been made better. My hope in sharing this post is that you take the three tips provided and begin utilizing them to make the best decisions possible.

Sam Palazzolo

PS – 2020 will be here before we know it, and I see some disturbing Leadership-trends taking place. If you’d like to receive a white paper I wrote on “5 Ways Your Leadership Will Succeed in 2020” CLICK HERE.

PPSS – As we crossed-over the halfway point of 2019, I’ve launched my most aggressive initiative to date. It’s a 501(c)(3) structured nonprofit that provides Executive Education to allow you to become the BEST leader possible (NOT Good, NOT Better… BEST!). If you’d like more information, contact me at sp@javelininstitute.org.

Leadership Challenge Decision-Making Three Tips

Filed Under: Blog Tagged With: decision making, javelin institute, leadership challenge, sam palazzolo

July 25, 2019 By Tip of the Spear

I recently participated in a roundtable discussion on the topic of change leadership, and subsequently was interviewed about the Javelin Institute’s new program, “The BEST Leader in 30 Days!” (This program brings you 30 daily activities that’s recognized through research validation to equip you to be the BEST Leader possible… Not a Good Leader, or even a Better Leader… the BEST Leader!) If you’re interested in the program, you can email me at info@javelininstitute.org for more information. Here’s Part I of the interview, slightly edited for clarity and brevity:

INTERVIEWER: Sam, you’ve not only led change as a leader yourself, but also helped other leaders with change. Tell us a little bit about how in general you think about change leadership, and how you apply that in the businesses you work in/with?

SAM PALAZZOLO: Change leadership can be a complicated component of business success. Do it right, and the change leadership landscape will have plenty claiming stake in the successful outcome. Do change leadership wrong, and you’ll be looked at as sole proprietor responsible for the failure. I see many leaders who enter into situations of change without really having the skills or coaching to know exactly how to successfully change. The biggest component of change leadership to me is rooted in the leader. Specifically, does the leader have the perspective required to gather themselves from an emotional intelligence perspective. It’s very much an EQ moment versus an IQ one!

In my 2018 book, titled “Leading at the Tip of the Spear: The Leader” I examined how you can better lead others by leading yourself. As a matter of fact, my research concludes that if you can’t lead yourself, the likelihood of you successfully leading others ranges from slim to none. One of the insights that allows for successful change leadership is to have insight into where you want to go (Vision) and what change will be required in order to arrive at that destination. It’s easy for leaders to become impatient when leading change because while they can not only see where they want to go, but how they want to get there, they forget to share and lead others at a pace at which they can understand and withstand. In other words, those you’re leading need to not only understand/comprehend where they are going, but perhaps more importantly, what their role will be in getting there across a possible specific time interval.

INTERVIEWER: So, with change leadership in mind, how do you coach people?

SAM PALAZZOLO: At its simplest levels, to have success in change leadership, it’s important for leaders to know where they are, where they are going, and how it is that they are going to get there. Knowing these three aspects allows leaders to architect a plan for change. This architectural blue print will allow leaders to create a plan for change. This blue print is important because it provides stakeholders with a clear understanding of what is being built (Where they are going and how they will get there).

Having specialized in change leadership for the past two-decades, I know that change involves a series of phases that both leader and stakeholders go through. There will be successes, equanimity, and failures along the way. As a student of the J-Curve methodology, I learned that initial failure is typical and with proper corrections success can/will be achieved. Allowing leaders to see this realistic change leadership landscape prior to experiencing change provides the proper perspective. The proper corrections typically, but not always, come from communication gathered from direct-frontline associates affected by the change. Listening to their feedback provides leaders with context from which they can assess situations clearly for proper corrections. With this in mind, and it’s part of the “BEST Leader in 30 Days!” methodology, is conducting a daily reflection of your change leadership efforts/energies. Specifically, there are three questions that you’d want to ask yourself:

  1. What did I do today to further the (change leadership) initiative?
  2. What did I not do today to further the (change leadership) initiative?
  3. What will I do tomorrow to further the (change leadership) initiative?

INTERVIEWER: What are some of the mistakes you see leadership making in their attempts to lead? Specifically, what are the most common mistakes when leading change?

SAM PALAZZOLO: I’ve seen just about every type of mistake be made when it comes to change leadership. Typically, the mistakes cluster around the basic business building blocks of people, processes, technology, and/or financials. All too often leaders will fail to get involved those they expect to go through the change (so that they have input into what will happen on the way towards where the leader desires to go).

I’ve also seen leaders fail in change leadership when they put a “spin” on change. One leader, who’ll remain nameless, used to replace the word change with innovation. His reasoning for doing so was because he had read a study that showed people dislike change. While the study might be correct, changing the namesake doesn’t increase the odds of success. Remember, a duck is still a duck!

At a gym I worked-out in they had a huge sign on the wall that read:

“Until the pain associated with staying the same is greater than the pain associated with change, you will not do anything different.”

Think about that for a moment… If we associate pain with change and pleasure with staying the same, then you’ve got to be in a bad spot to want to change! Afterall, staying the same should be painless. But once staying the same is more painful, you’ll desire relief/change.

INTERVIEWER: You’ve had an impressive career to date (I don’t think you’re done yet by a longshot either!) You’ve worked with a Fortune 1 organization and now you’re working as a venture capitalist, consultant and philanthropist. Are there any differences between leading change at large vs. small organizations and for profit vs. nonprofit ones?

SAM PALAZZOLO: Thank you for the complement… I hope my career continues to grow/change in directions I can’t visualize at the current time. With that said, and to answer your question – Yes, there are differences. While the problem types are very similar (Think people, processes, technology, and/or financials), the scale is simply larger in big companies. This is the same regardless of entity formation (profit vs. nonprofit).

However, there is one key difference that I see play itself out time and again. That difference is that in smaller organizations the leader can make the difference. Whereas in larger organizations, there is less of a leadership impact, but the need to have good leadership in place across the organization exists. Think about it, if the organization is small and the leader is great, successful change leadership is relatively straightforward. In larger organizations, there are many more leaders to coordinate similar future change leadership vision with, and as such each needs to be able to share that vision precisely/similarly with their teams. Same vision and different share lead to unsuccessful change leadership typically (a disaster!)

https://tipofthespearventures.com/2306-2/

Filed Under: Blog Tagged With: best leader in 30 days, change, change leadership, javelin institute, leading change, sam palazzolo

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