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The Case Against International Sales

Posted By JPMA, Tuesday, June 13, 2017


By Ron Sidman

Early stage JP companies eager to grow often look at international distribution as an easy solution. Don’t be tempted to take this route prematurely. I suggest you saturate the US market before you venture off to foreign lands.

Don’t get me wrong, I am all for companies going global—when the time is right. However, the low hanging sales-enhancing fruit will be in the good ol’ USA until just about all your products are available just about everywhere you want them to be in this country. Even so, quite often companies that are still struggling to establish market share domestically believe that starting to establish international distribution is a solid growth strategy. Here’s why it should not necessarily be a priority:


It will take more of your precious time than you think it will.

The tendency is to think that all you have to do is find a good distributor in each country and then just wait for the orders. The reality is that the potential sales volume in foreign markets is typically quite small compared to the amount of time you and your key people will need to spend getting yourself up the learning curve and catering to the special requirements. Add potential “lost in translation” communication complications and you can see how time spent may add up. The payoff from spending that same amount of time on domestic sales expansion is probably much higher.


It’s likely to be less profitable than domestic sales.

There will be sneaky added costs that you might not be anticipating. Most likely you’ll need multi-lingual or local language packaging if you want your products to sell which will require smaller, more costly production runs. Unless you hedge the local currency, you may suffer from currency value fluctuations. Claims of defective merchandise can also be problematic and costly to resolve. And, product design customization may be required (see below)


Consumer tastes and behaviors may not be the same as in the US.

When my company first started selling in Japan, we learned the hard way that some of our most popular products simply were not appealing there whether due to aesthetic tastes, different parenting practices, or even extreme quality sensitivities (even though we made a quality product). So foreign rates of sale may not parallel what you’re used to in the States.


Competition may be tougher.

There are likely to be fierce local competitors in each country with potential price and retail relationship advantages and an eagerness to retain their distribution regardless what it might take.


Legal and regulatory requirements and processes are likely different.

You may need to comply with safety regulations that go beyond or are in conflict with US regulations. And violations may be handled without the due process you’re used to in the US. We once had a parent in the UK who complained that our booties left a red mark on her son’s legs. We ended up having to appear in a local UK court to defend ourselves—and lost.


Oversight is much more difficult.

We take for granted that we can easily visit stores to see how our products are being displayed, what the competition is up to, and how consumers are making buying decisions. But much of what is happening in foreign countries will be invisible to you unless you’re in a position to globe hop regularly. This makes it more difficult to anticipate and diagnose sales issues and opportunities.


Next Steps

Expanding internationally should definitely be a part of every JP company’s long-term vision. But don’t jump across the pond until you’ve accomplished your US distribution goals or you’ll be slowing down your sales and profit growth rather than speeding it up.

If you’d like more information or assistance from me regarding your unique challenges, consider taking advantage of JPMA’s Executive Mentor Program. Check the JPMA web site for more information or contact Steve Clark at 


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Are You in It for the Long Haul?

Posted By JPMA, Thursday, May 4, 2017


By Ron Sidman


How long you see yourself being involved with your company can have a significant impact on the degree of your business success. Long-term thinking and commitment can lead to superior short-term and long-term results.


I suppose one thing I can claim to be an authority on is how to run a business over an extended period of time. I created my company, The First Years, in 1972 and managed it for 32 years. It didn’t ever become the biggest company in the industry but we were always profitable and earned, I believe, a solid reputation for being progressive and innovative. At the time of our sale in 2004 to the RC2 Corporation, sales were around $140 million.


I don’t know the statistics but my guess is continuity of leadership like that is very rare and not just in the juvenile product industry. It might not surprise you to hear that I attribute a lot of my company’s success to the fact that I always had a long-term mindset. From the outset, I expected the company to exist indefinitely and I expected to be the guy running it for as long into the future as I could imagine. As a result, my dreams for the company were bold. And my commitment to riding out the inevitable ups and downs was very strong.


On the other hand, there are entrepreneurs that start companies with the clear intent to get the company established and then sell it for a pretty penny within a few years. This does happen to some degree in the high tech world where the market is huge and things can go viral quickly but rarely in our industry. The problem is that if you’re thinking is short term, your vision of success will likely be tame and conservative. And if things don’t go well in the early stages—which they usually don’t—it can be very discouraging to see your imagined time frame become less and less realistic.

If you are a serial entrepreneur, this post is not for you. If however, you think of your business as your career or at least a multi-year proposition, here are some suggestions for how to sustain it for a long length of time based on what worked for me.


1. Have a Clear Vision

Having an exciting dream that is shared by your key employees is what creates the direction and generates the energy that will propel your company year after year. Especially when times are tough, it’s that exciting vision that will keep everyone going. At The First Years (TFY), updating our long-term and medium-term visions was always the first step in the strategic planning process.


 2. Document and Enforce a Set of Core Values

The most successful and long-lived companies usually have a very clear set of values that are consistently espoused and enforced by leadership. It’s those values that allow them to establish and sustain a solid reputation that attracts the top talent, customers, and partners. At TFY, we established early on a set of core values related to customers, employees, and commitment to excellence that allowed us to align our daily behaviors in a positive and consistent way.


 3. Stay Vigilant

You can’t fix what you don’t know is broken. You can’t cope well with changes that catch you by surprise. You need a feedback system in place to make sure you are always aware of everything going on inside and outside the company that could impact your future. At TFY, one of the first things we did was to establish a “Parents Council” that started as meetings with local groups of moms but eventually became a nationwide internet-connected network that was a significant competitive advantage for us. We also had a data reporting system called “Vital Signs” that generated weekly and monthly performance charts.


 4. Appreciate Your Employees

People leave bosses not companies. Hiring and retaining talented people is critical to long term success. Employees need to know you recognize and appreciate the role they play in the company’s success and that management is there to help them be successful in their jobs. At TFY we taught our managers that there job was to enable their direct reports to be successful. We also maintained open support and communication through company-wide meetings, “lunches with the President”, and employee appreciation special events.


 5. Always be Recruiting

Speaking of hiring, as you grow you will need more people and people with higher skill levels. Think like a pro football team general manager. You need to always be on the lookout for talent so that when you need someone you know where to find them. As CEO, I did many things to learn about and meet potential new employees via networking at industry events and through other contacts.


 6. Live Within Your Means

I admit to being fiscally conservative. I’m not a proponent of living in an atmosphere of high debt or wondering where the money will be coming to meet the next payroll. I like to sleep at night. As soon as possible, you want to be able to finance your business via profits. At TFY, we always operated within our means and ended up when the company was sold with no debt and almost $30 million in cash on hand.


 7. Be Obsessed with Improvement

You simply have to keep getting better at the key components of your business model because you can be sure your competitors will. At TFY, we were a process-centered organization that used Six Sigma techniques to drive continuous measurable improvement. Every senior manager was expected to improve their department’s quality and efficiency every year.


 8. Leverage Processes to Maintain Consistency

Designing and continuously improving your key processes (e.g. product development, production, marketing, customer service, etc.) makes managing a company infinitely easier because it allows employees to manage themselves. A key is to make sure that process participants understand the purpose of the process and don’t just blindly follow the steps.


 9. Know Your Costs

We once had a new competitor that rose up quickly and undercut our prices by a considerable margin. We couldn’t figure out how they could do it. There was a reason we couldn’t figure it out. Turns out they had no idea what their costs were and had to announce about a $100 million loss at the end of the year. At TFY, on the other hand, we were meticulous about monitoring costs by product, by account, by department, etc. And we were quick to act if we found we weren’t making money in some aspect of the business.


Next Steps

Do some soul searching about what your time frame is and what you want it to be. If you’re thinking short-term, get out as quickly as you can and work on something else that you can really build over time. If you’re in it for the long haul, consider implementing some of my suggestions. They worked for me!


If you’d like more information or assistance from me regarding your unique challenges, consider taking advantage of JPMA’s Executive Mentor Program. Check the JPMA web site for more information or contact Steve Clark at 





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The Only Thing You Can Really Control

Posted By Ron Sidman, Friday, March 31, 2017

The ancient concept of “living in the moment” or “mindfulness” is coming more and more into the mainstream with respect to stress reduction and even medical treatment of chronic illnesses. But there’s also a huge benefit to embracing this concept in the everyday running of your business. 


Today more than ever, we are living in a world where the pace of change is almost so rapid that human brains can’t keep up with it. Strategic planning in business was always based on the fact that you could predict to some reasonable degree what the world will be like 3 years or 5 years in the future. Now it seems that we have no idea what will be happening tomorrow let alone months and years from now. The world was caught by surprise in this last US election. I’m suggesting you better get used to being caught by surprise because now it’s going to be an ongoing occurrence.

This new reality can be disorienting and discouraging unless you remember these three simple mindfulness-related lessons:


  1. Embrace Current Reality.
    The only thing you can really know for sure about the environment in which your business is operating is not what might happen in the future but what’s happening RIGHT NOW—i.e. “current reality.” Proactively understand and embrace it on an ongoing basis without fearing the problems you’ll uncover, complaining about it, or wishing it were different. This includes your company’s internal strengths and weaknesses as well as external opportunities and threats. Boldly acknowledge the good, the bad, and the ugly.

  2. Create a “Next Level” Vision
    To know what needs to be done to keep making an adequate amount of evolutionary progress, it helps to have both a long-term vision for your company but even more importantly a clear and specific vision of the desired “next level” on the way to the ultimate vision—say 3 years from now. Given that you can’t accurately predict the future, this is just a dream. But it’s a stake in the ground that guides your direction, dictates the required amount of urgency, and acts as a motivator for everyone in the company.  

  3. Work On the Next Step
    Since, the fact is that the only thing you can really control is what YOU are doing RIGHT NOW, to create that new desired reality you personally should be working RIGHT NOW on the most important next step towards making your vision a reality. There’s always one most important next step at any point in time. Constantly ask yourself, “Am I working right now on the most important thing I can do to get us to the next level?” This is a very powerful habit to cultivate.

When you embrace these three “truths”—especially #3—knowing how to cope and in fact thrive in business today without being overwhelmed becomes much simpler. The single most important and maybe the only important decision you have to make at any point in time is what to work on RIGHT NOW. That’s it! Everything else is for all intents and purposes not worth thinking about because there’s nothing you can really do about it.


Of course, easier said than done. When you learn how to meditate, you discover that staying in the moment is hard work. Your mind incessantly wants to wander off into thinking about the past or the future and you literally have to gradually rewire your cranial circuits by continually coming back to present moment body sensations over and over again. As meditation gurus will tell you, if your brain wanders off a million times, you have to bring it back to the present a million times. The more you practice meditation, the easier it gets to stay in the present.


So too can you benefit by learning how to run your business (and your life for that matter) mindfully. Not only your own brain but the world around you is trying to distract you. And, once you learn how to “work in the moment,” like any skill you have to keep practicing or your ability to stay focused will dwindle. How often have you driven home from the office feeling that you didn’t really accomplish anything worthwhile? Not a good feeling. On the other hand, it’s exhilarating and motivating when you know you’ve taken one more step, even if small, towards accomplishing your goals.


If you’d like more information or assistance from me regarding your unique challenges, consider taking advantage of JPMA’s CEO Mentor Program. Check the JPMA web site for more information or contact Steve Clark at 


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Whatever Happened to Honesty?

Posted By Ron Sidman, Tuesday, January 17, 2017

Somehow it seems that disregarding the truth has become more commonplace and even acceptable in the world today. The problem is that when leaders lie they destroy trust. And, by the way, trust is what makes leaders successful.

I stay away from taking political positions in this blog and this post is no exception. While the recent election makes this topic relevant, the veracity vacuum epidemic I’m talking about is commonplace on both sides of the aisle and rampant in business today as well.

Now let me be clear. There are times when leaders do not tell the entire truth because they legally can’t or it would cause unnecessary harm. There are also times when leaders think something is true when they state it but it turns out to be false (e.g. weapons of mass destruction in Iraq). These are not the pernicious lies I’m talking about. For the most part, people understand why the whole truth can’t always be told. The self-destructive sin to me is when a leader purposely distorts, grossly exaggerates, or fabricates information for personal gain.

Why Leaders Lie

Because sometimes it seems to work—at least in the short term! Human nature steers us to avoid immediate pain even if we know we’ll pay for it down the road. And in some business situations, it’s a leader’s survival instincts kicking in. As president of Takata, you don’t want to reveal that you have a serious product safety problem with your airbags because your company’s performance or your personal survival might be put in jeopardy. Or, as head of Enron you paint a rosy picture for investors and employees even when you know reported profits area fabrication because you’re afraid of setting off a downward spiral. In these cases and with someone like Bernie Madoff, there’s also probably a feeling that if I could only buy some time, I’ll be able to fix it.

Dishonesty is not always of headline scale. Managers promise employees future opportunities to move up in the company even though they know it’s highly unlikely. Business leaders may fabricate facts to support their decisions when they run into resistance from their board or employees. And the beat goes on.

The Power of Credibility

What happens when anyone becomes known for playing fast and loose with the truth is they lose a very valuable attribute—credibility. And, once lost it can never, ever be regained. Credibility is the quintessential core of effective leadership. If you can’t trust that what you’re being told is true, you are simply not going to act on it. On the other hand, when someone with a reputation for a having a firm grasp of reality gives you guidance, you’re all over it. As a result, people with credibility wield enormous power with others. They can readily get things done through other people which is the very definition of leadership. They can create devoted followers.

Practical Applications

Some might argue that sales is the art of creatively crafting a positive truth. Or that to be a successful negotiator, you need to deceive the person you are negotiating with up front to get the best possible deal. To me that’s old school thinking as well as very short-sighted. Ultimately, facts always win out. If you’re not truly improving the lives of your customers in some meaningful way, no amount of marketing obfuscation is going to help you in the long run. If a negotiation does not have a truly win-win outcome, it’s going to come back to bite you at some point.

Next Steps

The starting point for getting on the right path is being honest with yourself. What often happens is that a path of deception starts with someone hiding from reality because it’s too painful or not compatible with what they want to accomplish. As a mentor and consultant I can tell you that this is very often the number one obstacle to success. Whether you want to improve your personal life, start a business, build your business, or improve your golf game, the first step is always the same—understand the current reality with all of its positives and negatives! You have to start from there and then be willing to share that reality with anyone you want on your team. That’s the key to long-term, not just short-term, success and satisfaction.

If you’d like more information or assistance with your unique challenges, consider taking advantage of JPMA’s CEO Mentor Program. Check the web site for more information or contact Kyle Schaller at  




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You Get What You Reward

Posted By Ron Sidman, Tuesday, November 29, 2016

Your compensation and rewards program can be at its best an extremely powerful motivator and attention focusing tool or at its worst a devastating morale destroyer. You choose.


The intense competition for talent in the high tech world has caused companies like Google to be very progressive when it comes to understanding and catering to the needs of their employees. “Googlers” enjoy an astounding array of perks that few companies can match including on-site free cafes and mini-kitchens serving healthy food options, on-site fitness centers and daycare, 100% company paid health insurance, generous parental leave, corporate bonuses, peer bonuses, stock options, retirement plan, in-house courses, visiting speakers, career planning, death benefits, and even more.


Now, no company in the juvenile product industry has the level of profitability that would allow them to follow Google’s lead. And it’s not necessary or even desirable to do so. However, crafting a compensation, benefits, and rewards program that makes it crystal clear that you truly value your employees is something every company can and should do. Here are a few suggestions:

Adhere to the Principles of Fairness and Transparency

These principles go hand in hand. You can’t have one without the other. A business has to be a meritocracy and your employees have to be able to trust you. Few things disturb and demotivate employees more than feeling that someone else in the company that is not contributing as much as they are is getting paid more. In fact, a person’s pay relative to others is as important as the amount itself. Establish a clear, fair, and visible policy about how pay levels are determined and you’ll avoid a lot of angst and wasted time as well as have more success retaining good employees.

Make Compensation Variable Based on Results

The purpose of a business is to create and keep customers and nothing will deliver this message better than a compensation system that provides extra rewards when this is being done well and fewer rewards when it’s not. While the percentage of compensation that’s fixed or variable should vary based on level in the company (e.g. executives more variable than non-executives) and role (e.g. sales force is typically more variable), ideally everyone should have some variability built in.


The best programs have multiple types of variable compensation that are based on a combination of corporate, team, and individual performance. Depending on the job, periodic bonus payments could be calculated based on a combination of corporate and team performance. In addition, discretionary bonuses could be paid for special individual accomplishments (make the criteria clear). Learning or travel opportunities could be other types of individual rewards. Stock options can be effective long-term incentives in public companies.


Whatever approach is used, it’s most effective to have the reward come as close as possible to the results. For example, consider paying bonuses quarterly rather than annually. The annual performance review is pretty much obsolete replaced by either more frequent reviews or even ongoing feedback and rewards.

Be Careful What You Incentivize

What’s tricky about compensation and reward systems is that if you’re not careful, they can backfire. You will absolutely always get what you reward as Wells Fargo and its customers recently learned. As you may recall, aggressive sales quotas there led to the creation of a large number of fake accounts.


How do you avoid this kind of result? First, make sure your compensation program totally supports the elements of your long-term, customer-focused mission. If instead you’re actually incentivizing anti-customer behavior as a way to drive short-term financial performance, something is dreadfully wrong. Second, create and continually enforce a culture of teamwork and integrity. It should not be an every man or woman for himself atmosphere. Make it all about working together to accomplish company goals. Finally, base your bonus system on profit not sales. Driving up the top line by giving away the store is not a sound strategy.

Next Steps

Do an assessment of all of the elements of your current compensation and rewards program. Include candid discussions with employees at all levels of your company regarding which elements they value, which they don’t, and what they’d like to see. You might be surprised by what you hear. Think through what behaviors are really being encouraged and discouraged and then consider what changes might improve results as well as employee morale and retention. Before you implement any changes, go back to your employees and get their reactions to multiple possible alternatives so they won’t be blind-sided. Regardless of what you do or don’t change, make a practice of reviewing your entire program at least once a year.


If you’d like more information or assistance, consider taking advantage of JPMA’s CEO Mentor Program. Check the web site for more information or contact Kyle Schaller at         

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Thinking Like a Designer

Posted By Ron Sidman, Thursday, October 27, 2016

Turns out we would all be better off if we could adopt the mindset that comes naturally to people who design things for a living. So-called “design thinking” is now pervading every aspect of not only business management but life management as well.


In their best-selling new book, Designing Your Life: How to Build a Well-Lived, Joyful Life, Stanford professors Bill Burnett and Dave Evans describe how thinking like a designer can enable you to take a broad view of your life as a whole and create an optimized balance between your work life and personal life. Interestingly, the methodology they advocate follows the same principles that I’ve talked about in previous blog posts about the development of new products in your company and the design of your business itself. In other words, design thinking is kind of the all-purpose philosophy for creating or improving anything.


Taking a holistic view of your life rather than making work life and personal life decisions in isolation is highly desirable but too rarely practiced. I’ve seen so many situations where people jump into a new job or start a new company only to find that they’re day to day lives consist of more pain than gain. So, I highly recommend the book to you because it provides some helpful life-planning tools and insights. The overall message is that life is a process not an outcome. And that you can systematically evolve your life in a direction that will optimize satisfaction and fulfillment no matter what your starting point is.


Here are some thoughts about how the core principles of design thinking can be applied to help you create products, new businesses or business improvements, and even a better life:


Designing is Best Done by a Team

We’re all used to the fact that you need a multi-disciplined team to develop a new product. In fact there’s no way to create products without successfully integrating the talents of marketers, designers, engineers, QC specialists, and production people. Same is true for business design and development. It takes a diverse senior management team to move a company forward. Interestingly, Burnett and Evans feel the same applies to life development. In one of the most novel aspects of their approach, they believe “live design is a communal effort” and recommend that you put together your own personal life development team to help you generate the best possible result.

It’s Never Too Early or Too Late to Start

Life design is a life skill and the earlier you learn it the better but it’s never too late. It’s something equally beneficial to high school and college students as it is to recent retirees looking for a meaningful way to spend their remaining years. Similarly designing your business properly from the outset would be ideal but it’s never too late to start getting it on a better track.

It’s a Lifelong Process

Designing is not a one and done proposition. If you want to maintain market share in the juvenile industry, you need to keep improving the performance of your products and your company over time. Life design too is a process of continuous evolution. There are always new problems to solve and new opportunities to address. And just like with products and businesses, it’s best done via a repeating process cycle.

It Always Starts with Truly Understanding How Things Are Going

The first step in any improvement effort is a thorough understanding of current reality. For product development, that’s done by talking to and observing customers to try to identify an unsatisfied need. For a business, you conduct an environmental scan or SWOT analysis. To improve your life, Burnett and Evans recommend assessing your current satisfaction with work, your health, what you do for fun, and your relationships as well as creating a “Good Time Journal” to help you identify what kinds of activities truly engage and excite you.

Then You Dream about the Way Things Could Be

In product development at my company, we used to call this a “Design Goal Definition” which outlined the requirements the new concept had to meet to be acceptable. For business development it’s your ambitious 3 year and 10 year objectives. In Designing Your Life, the authors ask you to create multiple hypothetical job descriptions that incorporate the fulfilling activities you identified in your journal.

Next You Develop the Best Way to Make Your Dream a Reality

In all realms, this involves creating prototypes that can be reviewed with little risk or investment to identify what resonates and what doesn’t. For products, you would be showing prototypes to consumers. For business models, you would test concepts in the real world via small scale simulations. For your life design, the authors suggest you create alternative 5 year “Odyssey Plans” and, with the help of your development team, imagine what it would be like to live those life styles.

Finally You Implement and Move On

Tool up, produce, and ship the product. Start up the new or improved business. Start down your new life path. But in all cases, don’t agonize over whether you made the right decision. Recognize you made the best decision you could with the information you had at the time. And realize that if it doesn’t work the way you hoped, you can learn from it and repeat the cycle again.


As self-development guru Jim Rohn once said, “If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you. Not much!” If you’d like me to be part of your life or business development team, take advantage of JPMA’s CEO Mentor Program. Contact Kyle Schaller at for more information.

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Don’t Be Afraid to Set Objectives

Posted By Ron Sidman, Sunday, September 11, 2016


Having the courage to be specific about what you want to accomplish and in what period of time is a highly underrated characteristic of high performing companies and people. Too often managers think it’s safer to be vague and noncommittal.

At some level, we all are reluctant to set targets for future results. After all, it’s impossible to accurately predict the future, no one wants to fall short of expectations, and some things are difficult to measure. However, the very act of setting targets can enable us to accomplish more than we ever thought possible. It can have almost a magical positive effect on our behavior and results.


The Benefits of Objective Setting

Without specific, reasonable but aggressive, measurable objectives, we tend to slip into a generalized “best efforts” mentality. It would be like going bowling without keeping score. At the end of the game, you’d have little sense of whether you did well or not—whether you’re getting better or getting worse. In business, there would be a tendency to just react to immediate events with performance that gradually drifts backwards over time. Think about trying to maintain a healthy weight as an example. What would happen to most of us if we never stepped on a scale or didn’t have a healthy weight level in mind? On the other hand, watch what happens when you really commit to losing 10 pounds over the next three months and weigh yourself regularly. You are forced to understand why you’re overweight and exactly what you need to do day by day to accomplish your objective. Plus you have something to celebrate if you succeed.

Objective setting in business also plays another critical role. It aligns the efforts of everyone in the company. Without common clear objectives, people tend to focus on their own personal interests. On the other hand, corporate objectives can be trickled down level by level so that everyone is moving in the same direction with the same intensity.


The Importance of Corporate Culture

The key to making it work lies in your company’s culture. Let’s compare two companies. Company A is a company where mistakes or failures usually lead to negative personal consequences. Employees tell newcomers about so and so who was fired for promoting a new program that didn’t pan out. Non-conforming job applicants are rejected as too weird. Critics of the status quo quickly find themselves being penalized or ushered to the door. Little financial information is shared with the workforce in an effort to avoid poor morale in bad times or requests for raises in good times. Challenging tasks are avoided in favor of easy projects where success is ensured.

Company B on the other hand believes that the more employees know about current reality, the more aligned they will be in the pursuit of company goals. Problems are accepted as being inevitable. Uncovering problems and weaknesses is encouraged and rewarded as the way for the company to keep improving. When things go wrong, managers first look to the process as the reason rather than the people. Job applicants are rated based on character and what results they’ll be able to produce rather than how they appear or what they appear to know. Trying new things and failing is looked at as a necessary part of learning. Good failures are celebrated and rewarded.

I don’t have to tell you which company is more likely to successfully embrace objective setting and in turn is more likely to improve and grow. It’s also a given which company is more likely to be able to retain their best employees. Company culture is created by the company’s leaders by what they do (not so much by what they say should be done). You get what you reward and what you tolerate. You’ll stop getting what you punish. Very simple! A company’s culture is one of the most powerful determinants of a company’s performance. So design it consciously and wisely and then maintain it. 


Objective Setting Systems

There many options available for implementing objective setting in your company but one of the best I’ve seen is the one used by Intel, Google, LinkedIn, and many other companies. It’s called Objectives and Key Results or OKRs. It’s both very easy to implement and very effective. The objectives are descriptions of expected accomplishments within a specific time frame (for example, “Improve our customer service”) and for each objective you set numerical targets called key results (for example, “Minimum 9.0 customer survey rating”). You start by setting company-wide 3 year OKRs which are then broken down and rolled out to every department and every employee to the extent that you ultimately end up with current quarter OKRs for each individual. Here’s a link to a video that explains the concept in detail very well.  


Next Steps

If you don’t already have an effective objective setting process in place, watch the video and see what you think. Take the plunge and start getting in the habit of setting some ambitious objectives. You’ll be surprised by how much more you’ll accomplish. And if you don’t meet some of your objectives, the process of reviewing what didn’t go as planned is how you learn and improve. As always, I’m available to assist you through JPMA’s CEO Mentor program. Contact Kyle Schaller ( if you’d like to set up a session. 

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How Technology Will Continue to Impact the JP Industry

Posted By AH, Wednesday, August 17, 2016

By Ron Sidman


For many reasons, juvenile product companies have historically tended to be conservative when it comes to adopting product-related technologies. However, as technological innovation impacts more aspects of our everyday lives, traditional JP companies will need to keep pace with the new realities.



On June 30, this year, Google filed a broadly worded patent application for a “crib with embedded smart sensors.” The application describes a truly smart crib capable among other things of detecting and reacting to abnormal crying patterns or movement, airborne toxins like carbon monoxide, dirty diapers, room and baby body temperature, and intruders. At the same time it would have interactive entertainment features.

While this is but one of many technologically advanced juvenile product concepts to come along in the last few years, its scope as well as its origin does raise some interesting new questions about both infant childcare in the future and how that will impact the industry.

How is technology changing parenting?

Infant care is obviously not immune to the technological advances that are affecting all aspects of our lives. The internet long ago changed the way parents select and obtain products. But now so-called “smart home” products are also adding new levels of information, convenience, and remote monitoring. Smartphone accessible wearable or fixed sensors can already monitor every aspect of a baby’s environment, activity, and health. Baby care products can either be voice-activated or react based on baby activity. Pediatricians will soon be able to monitor health vital signs and even diagnose illnesses without office visits. Formula feeding will soon likely be customized based on DNA testing. Apps could monitor your child’s development and recommend activities or interventions. High tech fabrics and other new materials will continue to add new features and benefits to infant clothing and accessories.  

Will you be dealing with new types of competition?

The answer is clearly yes. While the relatively small juvenile product market size and regulatory complications may act as a barrier to some degree, big name high tech companies like Google/Nest are apparently finding the revenue potential to be attractive. Collaboration with mega high tech firms may also be advisable. For some new products that JP companies create, there will be some sticky issues relative to partnerships or compatibility with related products or established platforms. Speed to market and to establishment of inter-company business relationships may become more important than it has in the past.

How can you keep up with the pace of change?

The times have always been “a changin”, but they are clearly “a changin” at a faster and faster rate. Not only will your products need to change but your processes—especially business evolution and product development—will need to speed up. It’s getting increasingly important for the overall business process you utilize from idea generation to order delivery and customer service to be assessed and updated regularly. High speed, low cost, Silicon Valley product development concepts like the “agile” methodology are already making their way into the consumer product world.

Next Steps

At your next senior staff meeting, consider putting on your agenda a discussion about the impact new technologies could have on your business processes and product line over the next few years. Make sure you have in place mechanisms to stay up to date with relevant innovations and competitive activity. Also consider whether you have the necessary in-house technical skill to identify and apply applicable technology.

It’s not about applying technology for technology’s sake. It’s a question of whether there are new technologies that can enable you to increase value for consumer customers in your product categories. When considering this, don’t forget to take into account the privacy concerns that parents may have about data being collected or unknown sources accessing in-home cameras.

I encourage you to tap into the resources that JPMA provides to its members including the CEO Mentor Program. Contact Kyle Schaller, if you’d like to set up a Skype or phone session on this or any other leadership or management related topic.



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It Takes a Team to Manage a Company

Posted By Ron Sidman, Monday, July 25, 2016


The world is changing and getting more complex at an accelerating rate. As a result, it’s highly unlikely that one person at the top has the skill or the time to handle all the required senior leadership and management responsibilities—even in a small company.

In his book The Ideal Executive: Why You Can’t Be One and What To Do About It, Ichak Adizes addresses everything a corporate leader today is theoretically supposed to be able to do.

"According to the classic management textbooks and best-selling guides, the ideal manager is knowledgeable, achievement-oriented, detail-oriented, systematic, and efficiency-oriented; organized, a logical and linear thinker; charismatic, visionary, a risk-taker, and change oriented; and sensitive to people and their needs."

As Adizes goes on to point out, no one person has the skill or the time to do all those things equally well.  We all have strengths and weaknesses. And, if you do try to bear the full brunt of leadership/management responsibility on your own, the resulting stress can be unbearable.

Even startups benefit from a co-founder with complimentary skill approach. Think of Bill Hewlett and Dave Packard, Steve Jobs and Steve Wozniak, or Ben Cohen and Jerry Greenfield. The JP industry has had its share of successful two person led companies—sometimes even a husband/wife combination, where the one might be an engineer, for example, and another the marketing specialist. 

As a company grows, the leadership team necessarily expands. As Adizes points out though, sustaining the effectiveness of a diverse team of people is not easy. While at its best, blending differing skills and perspectives leads to better decisions, it can also lead to conflict. So how do you best make leadership/management into a productive team effort?


1. Accept the reality that change is part of life.

Never think that all you have to do is create a well-designed business system and maintain it. Whatever system you build will at some point be obsolete. Whatever you think is going to happen in the marketplace in the future won’t pan out completely as expected. People on your staff who are the right person in the job now will not be the right person at some point down the road. You never get to a point where things stay “all good” for very long. Try not to get frustrated and discouraged. Accept this as inevitable and recognize you will have to make sure your company keeps evolving to cope with change.

2. Realize that change inevitably brings both problems and opportunities.
As your company grows and as the world around you changes, systems, beliefs, and expectations in place are no longer valid. Things that used to work don’t anymore. At the same time new opportunities appear from nowhere. For example, the internet made it easier for companies to communicate with consumers, but it also changed how consumers exchange information, good or bad, about products and companies. And with the pace of change accelerating, you need even more skill and speed of response to make necessary changes in a timely manner to fix problems and capitalize on opportunities.  

3. Cover all the leadership/management bases.
Acknowledge that you can’t do it all. Because of the demands, it’s going to take multiple people with different skills, working styles, mindsets, and interests working well together. No matter how small or big your company, all the management tasks need to be handled by somebody. You can’t leave any gaps. In my Evolutionary Success™ program, I detail six necessary ongoing leadership/management functions:
a. Defining the company’s purpose
b. Discovering current reality
c. Dreaming what things could be like in the future
d. Developing improvements to the business system
e. Deploying the improvements
f.  Directing the business system from day to day


Make it as clear as you can—in writing—what each member of the management team is responsible for. Some responsibilities will be shared but one person should always have the lead role. You’ll also need a mechanism to establish and follow up on performance objectives for each team member, including yourself, preferably by quarter.


4. Understand your own weaknesses.
Decide which of these leadership/management functions you like and can do well and what needs to be ceded to others. Then make sure you have the right people on your team to cede things to.

5. Agree on a shared purpose
In any kind of team activity, it is absolutely critical for all the players to share a common purpose—preferably in writing. By purpose, I mean the answers to these questions:
a. Who’s the customer?
b. How will we improve their lives (products/services)?
c. What will be our competitive advantage?
d. What’s our long-term vision of success?

6. Create a culture of mutual trust and respect.
Adizes talks about the difference between constructive and destructive conflict among members of a diverse team. Constructive conflict produces optimum decision-making because it promotes healthy exploration of all alternatives. Destructive conflict leads to team disintegration. The key to avoiding destructive conflict is to create and preserve a culture of mutual trust and respect (we certainly could use more of that in the world today.). 

7. Make every team member feel like an owner.
If you want your fellow leadership/management team members to be as motivated and dedicated as you, there needs to be a payoff for their hard work and not just a lot of “attaboys” or “attagirls.” Since profitability is the ultimate measure of a business’s performance, some significant portion of all team members’ compensation should be profit-related.


Next Steps

Review the list of leadership/management functions in #3 above. Are all the functions being handled well? If so, great! If not, review the other suggestions in this post to see what might be the cure. Even if everything’s fine now, if you’re doing it all yourself, do you need to start considering delegating some of the leadership/management functions to someone else? As always, I’m here to help you if you need someone to bounce things off of or could use some encouragement. Contact Kyle Schaller ( to set up an appointment.


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Why is it So Hard to Make Things Easy?

Posted By Ron Sidman, Monday, June 20, 2016

Ron Sidman has spent most of his adult life in the juvenile products industry. Motivated by his interest in parenting and child development, he created the parenting lifestyle oriented brand, The First Years, and was Chairman, President, and Chief Executive Officer until the company was sold in September of 2004 to the RC2 Corporation for $162 million. Ron is now acting as a business consultant to industry CEO’s through JPMA’s CEO Mentor Program, and executive blog, the CEO Play Yard.




In an effort to make improvements to our businesses and our products, we often end up making them more complex. But that complexity can be a major obstacle to success. It pays to work hard to make things as simple as possible.


Successful leader-managers recognize the enormous value of simplicity. The human brain is not designed to store or analyze large amounts of information quickly. And for you, your customers, and your employees, complexity leads to confusion, frustration, and inaction as well as inefficiency.

Unfortunately, making things simple is not easy. It’s contrary to human nature. What is easy is adding stuff—long mission statements that promise all things to all people and destroy focus, vague and all-inclusive job descriptions, more features on products than customers would ever use, more product offerings than customers could ever want, more steps in processes than are really necessary, pricing schedules too convoluted for customers and employees to understand, (and more examples of complexity than a blog reader needs to see--sorry).

So, what can you do to keep things simple and focused? As always it starts at the top of the hierarchy.

1. Make simplicity a company core value and live it.

I’m a firm believer in the “top to bottom” principle. If you want everyone in your company to behave in a certain way, you have to set the example first. Unless you have the self-discipline to be clear and simple in your communication and decision-making, no one else will either. Explain to everyone what the benefits are and then set the pace. You’ve got to stick with it too over the long haul.

2. Work hard to make your mission and vision clear, simple, and focused.

If your company’s mission statement is fuzzy and too broad, it won’t be able to do what a good mission statement does which is both to act as a source of motivation and define the boundaries within which the company will operate. Please don’t make the mistake of treating the mission statement as something unimportant or letting it be forgotten. You can’t be all things to all people. The clearer you are as to, what value you are going to provide, to what customer segment, and with, what sustainable competitive advantage, the clearer you and your staff will be about what needs to be done to grow the company.

3. Favor quality and innovativeness of product features over quantity.

Be ruthless when it comes to simplicity of product design. The temptation is to simply add more and more features to a product in a vain effort to make it more appealing to customers. It’s the easy way out. But, one great feature trumps 10 marginal ones. And the product will cost less, will have fewer things that can go wrong, and will be easier to explain to consumers. Instead of adding multiple marginal features to try to unseat a competitor, work to come up with one great innovation.


4. Limit the number of company and individual objectives.

Whatever system you use for strategic planning, limit the number of corporate objectives you are working on to no more than 5 and preferably fewer. The same applies to the objectives that trickle down to individuals. People just can’t juggle more than 5 major projects at one time and 3 is even better. If you have quantitative measures for each objective, limit those similarly. We all know the Pareto 80/20 principle but often forget to live it. There are perfectionist tendencies in many top performers that push them to try to do too much. What you can gain in work quality, output, and job satisfaction by focusing on the “vital few” is enormous.

5. Use technology to simplify not complicate.

If your new IT systems are not simplifying processes, than someone is missing the point. Just like there’s a tendency to add too many features to new products, there’s a tendency to add too many bells and whistles to new systems. Doesn’t do you any good if only a few people in your company can understand how to use the darn thing.

6. Look at every communication from the point of view of the recipient.

There are ways to communicate that cause misinterpretation and confusion and there are ways that result in clarity of understanding. There are information formats that are organized and easy to understand and other formats that are intimidating. We also all have a tendency to assume the recipient knows what we know when that’s not the case so we tend to leave out crucial bits. Establishing standard formats and lexicons for common communications like procedures can be very helpful. But you’ll probably benefit from investing in some basic communication training for everyone in the company. Imagine how many mistakes can be prevented.


7. Be a people and property minimalist.

Maintaining a culture of frugality is a great way to drive simplification. Live within your means. Don’t add anything—people or property—until you absolutely have to. And while some people will wince at the thought, there’s a time that a shrub needs to be pruned to encourage new growth. This certainly applies to unprofitable products and customers and no longer necessary processes or process steps. But it also applies to people at times as well. Just make sure that you treat people in that situation the way you would like to be treated if you were in their shoes. Also, don’t expect your employees to behave in a frugal manner if you drive to work in a Ferrari.


8. Evolve your company in small steps.

You should absolutely be bold and relentless in coming up with new ways to improve your company and add more value for customers. But you can test new initiatives on a small scale before committing to implementation and you can stage the implementation so it isn’t overwhelming. Also, be as transparent as you can with change so people know what’s happening and why.

Next Steps

In the spirit of simplicity, I’m not suggesting you try to implement these 8 suggestions all at once. Use the 80/20 principle to select a few of them that might be worthwhile to consider for your company. If you think it would be helpful, I’m available via JPMA’s Executive Mentor program to assist you or any members of your senior team on any aspect of business management. Contact Kyle Schaller, if you’d like to set up a Skype or phone session. 

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