Category Leadership Lessons

As an entrepreneur or owner, you’ve invested time, money, and energy into building your business. But have you considered what will happen if you’re no longer able to manage it? Having a “business will” is a crucial step in protecting your legacy and planning for long-term success. It isn’t all doom and gloom either. During your normal course of business you could have many reasons to need a clear exit plan, and your business will provides just that.

With that, here are some of the reasons why you should make a will for your biz today:

The Right Will Protects Your Business In Many Situations

If you become incapacitated or pass away without a will, your business may be left in limbo. Without clear instructions on who will take over, your business could be vulnerable to mismanagement, legal disputes, or even bankruptcy. In other words, not having an exit strategy for these scenarios can be the reason your business falls apart without you. In addition to loss of life, there are many other scenarios to plan for when it comes to your business. Above all, creating and reviewing these plans serves to ensure that your business will get the protection it deserves.

You’ve put in a lot of hard work to build it, and you want to make sure that hard work can be passed on. Creating a will helps to make certain that your business will continue to operate smoothly, even after you’re no longer at the helm.

A Will Is A Plan for the Future

Secondly, a business will helps you to plan for the future. You will make decisions about what will happen to your business when you are no longer able to manage it. Still, it’s not a topic that a lot of owners want to discuss; however, it’s critical to an informed long term plan. Key elements will include:

• Successor appointment
• Role and responsibility definitions
• Ownership transfer plans

So, transfer of ownership can be a difficult task even at the best of times. But, having a plan can ease the burden from your loved ones or business partners. As a result, a business plan is especially important to provide certainty in case of a sudden or unplanned transfer. Above all, your actions today can help reduce this stressor in what could be a very challenging time.

Wills Help Avoid Legal Disputes

Creating a will for your business can help you avoid legal disputes among your heirs or business partners. By outlining your wishes and intentions clearly, you can reduce the risk of disagreements and conflicts that could threaten the future of your business.

But let’s face it – not all of our hopes for how the business is handed over will become reality. Those we might wish to take over the business may not be interested or want that responsibility. By running through scenarios for your business, you may uncover these situations. This allows gives you and those around clarity and comfort in knowing the future plans of the business.

Maintain Business Continuity

When a business owner, partner, or executive leaves a corporation, it can have a significant impact on the company’s success. According to a study by the Family Business Institute, only about 30% of family businesses survive into the second generation. Furthermore, only 12% make it to the third generation. With regular review, the legacy of your family business can live on by ensuring it’s ready for any changes.

Provide Financial Security With A Will

Equally important is that a will for your business can provide financial security for your loved ones and business partners. In fact, designating a successor and making a plan to transfer ownership helps ensure your business remains profitable and that your heirs receive the benefits of your hard work. With a clear plan, you help to ensure that the costs and burden of transfer are limited.

In summary, creating a will for your business is a crucial step in protecting your legacy and ensuring the long-term success of your company. Planning for the future with a business will means you can rest assured that your loved ones and business partners can start off on the right foot. It’s important to protect all the work you’ve put into building your business. Even if you have great business documents, a will can save you and your business in the long term.

In case you want to learn more about creating a will for your biz, check out our episode with Jessica Theroux from The Couillard Group . Or, give her a call and ask how you can protect your biz.

Entrepreneur, leader or business owner? Interested in coaching for success? Click here.

References:

• Family Business Institute. (n.d.). Frequently Asked Questions. https://www.familybusinessinstitute.com/faq/
• Murphy, P. (2019). The Importance of a Business Will. https://www.thebalance.com/importance-of-a-business-will-4173026
• National Federation of Independent Business. (n.d.). Succession Planning: Preparing for the Future of Your Business. https://www.nfib.com/content/resources/start-a-business/succession-planning-preparing-for-the-future-of-your-business/

In today’s diverse workplace, it is essential to recognize and address different forms of bias that can occur. “Bias definition” is a common search phrase, as employees seek to improve their understanding of what they can do differently. From confirmation bias to hindsight bias, The Biz Dojo has you covered with our top 13 biases found in business.

The best way to address a bias? Learn what it is, spot it, and take action. So, to help you on that journey – here is the list of the top 13 biases you may come across in the workplace.

Top 13 Bias in business

Confirmation Bias

With this bias, we tend to seek out information that confirms our pre-existing beliefs and ignore information that challenges them. To overcome this, it is important to stay open to different viewpoints and actively seek out diverse perspectives.

Implicit Bias

This is unconscious bias that affects the process of how we make decisions. To overcome this, we must become aware of our biases and challenge them through deliberate action.

Halo Effect

In this bias, we form an overall impression of an individual based on one positive characteristic. To overcome this, it is important to evaluate individuals based on a variety of criteria rather than relying on one aspect.

Horns Effect

This is the opposite of the halo effect, where one negative characteristic clouds our overall perception of an individual. To overcome this, it is important to evaluate individuals based on multiple criteria and not let one negative trait overshadow their other qualities.

Affinity Bias

It is natural for us to want to favor individuals who are similar to ourselves. But, that also means we’re often surrounded by those who don’t challenge our way of thinking. It prevents us from exploring new ways of thinking, and ultimately stunts our growth. To overcome this, it is important to actively seek out diversity in our workplaces. We must consider individuals based on their qualifications rather than their similarities to us.

Conformity Bias

This is the tendency to conform to group opinions rather than considering alternative viewpoints, even when they conflict with or own beliefs. This can often occur when we have the same groups of individuals working on a project. This often occurs in politics, where members go along with a particular idea simply because it is desired by the broader group. To overcome this, it is important to encourage diverse perspectives and challenge assumptions. It is important to speak up, this is especially true if your “gut instinct” is telling you something contrary to the group opinion. Explore that feeling with the group to ensure your own comfort level with the decision, and to help eliminate any groupthink biases.

Anchoring Bias

This is the tendency to rely heavily on the first piece of information received when making decisions. This is often used in marketing, especially for high-ticket items. For example, if you’re thinking about buying a new car, the first price you see is your anchor point. The salesperson may then offer you a slightly lower price, and you will perceive it as a deal — even though it may be significantly higher than the true value of the vehicle. To overcome this, it is important to gather and evaluate multiple sources of information. So in this example, taking the time to shop around and compare prices is critical before that sales person gets to you.

Availability Bias

This is the tendency to rely on readily available information rather than seeking out more accurate or relevant data. This is another bias that has a great connection to marketing. When you think of facial tissue, you probably think “Kleenex”. In fact, you probably don’t even think “facial tissue”. There are likely brands out there you may be more interested in, but when you go to the store Kleenex is the first to mind. So, it’s what you buy. To overcome this, it is important to conduct thorough research and avoid making decisions based on assumptions.

Attribution Bias

This is the tendency to attribute qualities of others based on incomplete evidence. In business, one of the greatest examples of attribution bias is in the hiring process. In hiring, we often seek out credentials (i.e. University degree) because we are biased towards higher education. The skills and experience of the team member are often not even considered if a candidate doesn’t have that initial “qualification” for the role. So, we are biased even before the process begins, and as a result will often miss out on truly incredible candidates.

Recency Bias

This is the tendency to place too much weight on recent events or information when making decisions. To overcome recency bias, consider historical data and trends, and strive for consistency in decision-making.

Hindsight Bias

This is the tendency to believe that events were predictable and inevitable after they have occurred. To overcome hindsight bias, consider the information and circumstances that were available at the time of the decision. Focus on learning and improvement rather than blame.

The workplace should be a space where everyone has an equal opportunity to succeed, regardless of their background, race, gender, or any other factor. Unfortunately, unconscious biases can creep into the workplace, affecting decisions and hindering diversity, equity, and inclusion efforts.

Recognizing and addressing different forms of bias is essential for creating a diverse and inclusive workplace. By being aware of these biases and taking deliberate action to overcome them, we can create a workplace culture that values diversity and promotes equality. It is up to all of us to create an environment where everyone feels welcome, respected, and valued.

As the saying goes, laughter is the best medicine. But did you know that it is also a key ingredient in leadership? Laughter is a powerful tool. It can help create a better work environment, promote teamwork, and grow productivity. In this blog post in our leadership series, we will talk about the benefits of laughter in leadership.

Using humour to create a better spaces at work

As leaders, we all strive to create the best spaces we can in order to keep our teams happy, healthy, and able to do the work at hand. This is essential to ensure our team feels both at ease and motivated. Laughter helps to create a relaxed and enjoyable atmosphere that encourages both creativity and productivity. A workplace that lacks laughter can feel tense and stressful. This can negatively affect employees’ mental health and well-being. But, leaders who incorporate humor into their leadership style can create a positive work environment that drives employee satisfaction.

Productivity grows with laughter at work

Contrary to popular belief, laughter does not distract from productivity. In fact, it can enhance it.

A study conducted by Wharton School of Business^​*​ found that when employees were exposed to humor in the workplace, they reported feeling more energized and productive. Additionally, a study by the University of Warwick^​†​ found that happy employees are 12% more productive than unhappy employees.

Incorporating humor into the workplace doesn’t mean that the workplace is less professional or less productive. Humor can be used as a tool to relieve stress, which can add to a more productive and efficient workplace. Laughter can help employees feel more relaxed, which can lead to increased focus and creativity.

A tool for team culture

Laughter can also play a significant role in building a strong team culture. When teams laugh together, they build a shared sense of humor, which can lead to improved communication, collaboration, and team cohesion. A study by the Journal of Managerial Psychology^​‡​ found that team building activities that involve humor can lead to increased trust and more positive relationships among team members.

Laughter can also help build a more positive work environment for you and your team. When employees are happy, they are more likely to enjoy coming to work, which can lead to more job satisfaction and reduced turnover. A study by the University of Pennsylvania^​§​ found that positive emotions in the workplace were linked with lower turnover rates.

It isn’t just turnover either. There have been several studies that show teams with improved culture also drive a reduction in lost time and wages due to illness. When people feel better about their work space, they want to show up and be there. It becomes a positive experience to come to work every day, and they are much more likely to do just that.

Laughter and the brain

Laughter also has a positive effect on the brain. When we laugh, our brains release feel-good chemicals like endorphins, which can help reduce stress and improve mood. This can lead to increased creativity, better problem-solving abilities, and improved decision-making skills.

A study by the University of Maryland^​¶​ found that humor activates the same parts of the brain as other pleasurable experiences like music and food. This suggests that laughter can have similar effects on the brain as other pleasurable experiences.

How to add humour to your style

As we’ve learned, humour can be a powerful tool. Even still, it’s one we often shy away from. One of the fears most leaders have when it comes to adding laughter at work is how to do it right. It’s not always easy to add it into your leadership style, and finding the best time, place and content can be tricky. And of course, let’s face it… not everyone is a comedian (and frankly, some who think they are… aren’t).

So then, how do we turn up the laughter? Research suggests that anyone can learn to be more humorous with practice and by following some guidelines.

Putting it all together

Laughter is an essential ingredient in leadership. It can help to create a positive workplace, drive team culture, grow productivity, and improve comms. Leaders who add humor into their style help to create more welcoming space for their teams. They see an improvements in creativity, psychological safety, wellness, and more. So, the next time you’re in a meeting or leading a team, try to add some light humor to the mix. Your team will thank you for it!

Team building is an important aspect of leadership that can contribute to a company’s success in various ways. It involves fostering relationships among team members, improving communication and collaboration, and creating a sense of belonging and shared goals. In recent years, there has been an increasing focus on the financial impact of team building, with studies suggesting that it can improve productivity, reduce employee turnover, and increase profits. In this article, we will explore the benefits of team building and provide references and citations to relevant studies that support these claims.

Benefits of Team Building

Improved Communication and Collaboration

Team building activities can help improve communication and collaboration among team members. When employees have a better understanding of each other’s strengths, weaknesses, and communication styles, they can work more effectively together. In a study conducted by ClearCompany, it was found that companies with effective communication were 50% more likely to have lower employee turnover rates and 17% more likely to have higher profitability.

Increased Productivity

Team building can also increase productivity by improving motivation and engagement among employees. In a study conducted by Gallup, it was found that engaged employees are 21% more productive than disengaged employees. When employees feel motivated and connected to their work and their colleagues, they are more likely to put in extra effort and work more efficiently.

Team Building to Reduce Employee Turnover

Employee turnover can be costly for companies, both in terms of time and money. Team building can help reduce turnover by improving employee satisfaction and creating a sense of loyalty to the company. In a study conducted by Harvard Business Review, it was found that companies with strong cultures had a turnover rate of just 13.9%, compared to a rate of 48.4% for companies with weak cultures.

Increased Profits

Finally, team building can lead to increased profits by improving productivity and reducing employee turnover. In a study conducted by Deloitte, it was found that companies with a strong focus on employee engagement had a 19% increase in operating income compared to companies with low levels of engagement.

References and Citations

ClearCompany. (2017). The true cost of poor communication in the workplace. Retrieved from https://blog.clearcompany.com/the-true-cost-of-poor-communication-in-the-workplace

Gallup. (2013). State of the American Workplace. Retrieved from https://www.gallup.com/workplace/238085/state-american-workplace-report-2017.aspx

Harvard Business Review. (2017). The Impact of Employee Engagement on Performance. Retrieved from https://hbr.org/2017/03/the-impact-of-employee-engagement-on-performance

Deloitte. (2016). Global Human Capital Trends. Retrieved from https://www2.deloitte.com/global/en/pages/human-capital/articles/introduction-human-capital-trends.html

Conclusion

Team building is an important aspect of leadership that can have a positive financial impact on a company. By improving communication and collaboration, increasing productivity, reducing employee turnover, and increasing profits, team building can contribute to a company’s success in a variety of ways. Leaders who prioritize team building and create a culture of collaboration and engagement are more likely to see positive results and achieve their business goals.