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ANSWERS FOR PART 2 (PEOPLE)
1) Henry Ford said, “If there is any one secret of success it lies in the ability to get the other person’s point of view; get the other person’s angle as well as seeing things from your own perspective.”
2) Milo O. Franks 7 Steps in How to Get Your Point Across in 30 Seconds or Less are:
Your Objective = Know What You Want
Who’s Listening? = Target Your Audience
The Right Approach = How To Get There
The Hook = Get Their Attention
Your Subject = Keep Them & Convince Them
Ask For It = Close Your Message
Paint A Picture = Use Colorful Imagery
3) The Sequential Steps in Problem Solving are:
- Investigate – Gather Information
- Define the Problem – On Paper!
- Brainstorm ALL POSSIBLE Solutions…Key Word = Quantity
- Choose the BEST POSSIBLE Solutions…Key Word = Quality
- CHOOSE the Best Possible Solution at this point in time.
- ACT on the Best Possible Solution at this time.
- Follow Up on all actions taken.
- Evaluate your results and progress to date.
- For any part of the problem yet unresolved repeat the above steps.
- Document your Results – On Paper!
4) Mark Twain said, “Inherently, each one of us has the substance within to achieve whatever our goals and dreams define. What is missing from each of us is the training, education, knowledge and insight to use what we already have.”
5) The 6 Steps in Setting Expectations are:
- Tell people what you expect of yourself.
- Tell people what you believe you can accomplish working together.
- Ask people what they think can be achieved by working together.
- Ask people what they expect of you. (Takes courage.)
- Ask people what they expect of themselves.
- Ask people what you have a right to expect of them.
- These steps must be followed in order.
6) The Three Signs of a Miserable Job uncovers the three universal causes of anguish and frustration at work and the three keys to overcoming them. The 3 Signs of a Miserable Job are:
- Anonymity
- Irrelevance
- Immeasurement
The 3 Keys to Overcoming them are:
- Anonymity = Everyone needs to be understood and appreciated for who they are as individuals, especially by those in positions of authority.
- Irrelevance = Each one of us has a need to know that what we do is important and matters to someone. People need to be recognized for what they do as well as appreciated for who they are.
- Immeasurement = Success cannot be measured merely by the opinions of others. Each member of the organization needs to be able to assess their progress for themselves. Clearly outlined means of assessment empower employees with additional motivation and control of their own advancement.
7) These 7 Major Motivators are indispensable if you want to retain quality people and not lose them to competitors:
- Input = What Someone Sees, Thinks & Feels
- Appreciation & Recognition
- Fun
- Shared Leadership
- Teamwork = Being Part of Something Bigger Than Themselves
- Help & Support = When Needed
- Money
These 7 Major Motivators are listed in prioritized order. Believe it or not, Money is last. Money alone will not usually cause a person to change positions.
8) The ‘Common Denominator of Success’ is habit. Successful people form the habit of doing things that failures don’t want to do. The truth is they don’t want to do them any more than failures do. But they are motivated by pleasing ‘results’ not pleasing ‘actions’.
9) The 15 Principled Lessons in Napoleon Hill’s THE LAW OF SUCCESS are vital to
the attainment of success and wealth. The 15 Lessons are:
- A Definite Purpose
- Self Confidence
- Initiative & Leadership
- Imagination
- Action
- Enthusiasm
- Self Control
- Habit of Performing More Service Than Paid For
- Attractive Personality
- Accurate Thought
- Concentration
- Tolerance
- Failure
- Co-operation
- The Golden Rule
Imagination is the ‘hub’ of all the lessons. Thoughts begin the process. Thoughts are then organized into ideas and plans. Ideas and plans are then transformed into reality. But the whole process begins with imagination.
10) Napoleon Hill’s Twelve Riches of Life are:
- A Positive Mental Attitude
- Sound Physical Health
- Harmony in Human Relationships
- Freedom From Fear
- The Hope of Achievement
- The Capacity for Faith
- Willingness to Share One’s Blessings
- A Labor of Love
- An Open Mind on All Subjects
- Self Discipline
- The Capacity to Understand People
- Economic Security
11) THE INTEGRITY ADVANGAGE outlines 10 Characteristics that depict what Integrity looks like. The 10 Characteristics are:
- You Know That Little Things Count
- You Find the White (When Others See Gray)
- You Mess Up, You Fess Up
- You Create a Culture of Trust
- You Keep Your Word
- You Care About the Greater Good
- You’re Honest But Modest
- You Act Like You Are Being Watched
- You Hire Integrity
- You Stay The Course
12) The 11 Essential Skills for Survival in Today’s changing economic environment are:
- The Foundational Skill = Dynamic Thinking
- Interpersonal Skills = The Ability to Understand & Relate to People
- Assertive Communication
- Negotiation
- Personal Development Skills = Self Image & Self Confidence
- The Ability to Set & Achieve Goals
- Organizational Ability
- Technological Skills = Using Technology (Not Understanding It)
- Compensatory Skills = Problem Solving
- Business Communication (Writing & Speaking)
- Leadership
The 11 Essential Skills for Survival are prioritized from top to bottom in the above list. The foundation is Dynamic Thinking. The ultimate goal is Leadership.
13) The 7 Immutable Mental Laws are:
- The Law of Control
- The Law of Cause and Effect
- The Law of Belief
- The Law of Expectations
- The Law of Attraction
- The Law of Correspondence
- The Law of Mental Equivalency
14) King Solomon’s breakthrough strategy that will propel you to levels of unimagined success is:
Develop Diligence…The skill of Diligence is not what most people think. Diligence is a learnable skill that combines creative persistence, a smart-working effort rightly planned and rightly performed in a timely, efficient and effective manner to attain a result that is pure and of the highest quality of excellence, according to Steven K. Scott.
Diligence to King Solomon could perhaps best be summed up as:
Doing the right thing
In the right way
At the right time
To achieve the right result.
Doing the right thing = Effectiveness
In the right way = Efficiency
At the right time = Responsiveness
To achieve the right result = Relevance
15) The Socratic Method can best be expressed in this simple admonition:
Teach by Asking Instead of by Telling.
Always remember: Whoever asks the question, controls the moment!
16) The Cognitive Behavior Theory explains how the mind moves from awareness to action. Simply stated the Cognitive Behavior Theory is embodied in the following steps:
- Thoughts
- Feelings
- Actions
- Behaviors
Thoughts become things. Our thoughts combine to produce meaningful pictures in our mind. The pictures evoke feelings based on past experiences. Our feelings then formulate our motives and intentions which result in our actions. Actions repeated consistently become habit and habits become behavior.
17) Maslow’s Hierarchy of Needs are broken down into 5 distinct categories:
- Physiological Needs
- Safety Needs
- Love and Belonging
- Esteem
- Self-Actualization
Physiological Needs = Breathing, food, water, sex, sleep, etc.
Safety Needs = Security of body, employment, resources, etc.
Love and Belonging = Friendship, family, sexual intimacy
Esteem = Self esteem, confidence, achievement, respect, etc.
Self-Actualization = Morality, creativity, problem solving, etc.
18) The work place compositional breakdown is comprised as follows:
27% Are The Problem = Their goal is to take—Get something for nothing.
60% Hope That When A Problem Comes Along It Will Go Away = Their goal is simply to make it through.
10% Are Problem Solvers = Their goal is to achieve.
3% Are Winners! = They Seek Out Problems and Solve Them While They Are Small.
Characteristics of a 3 Per Center:
- They write things down
- They know who they are and what they are going to do
- They make mistakes
- They learn
- They forgive themselves
- They start over
- They have a good self-image
- They are not sensitive to criticism
- They admit mistakes readily
- They communicate well
- They are confident
- They understand themselves
- They are persuasive
- They are goal oriented
- They are patient
- They have less need for approval
- They can easily give approval
- They are decisive
- They understand people’s motives
- They have high energy and drive
- They are positive
- They are self-disciplined
- They have humility
19) Lou Holtz summarized self-esteem in this way:
Anyone you associate with will want the answers to three key questions regarding your character. They may not openly interrogate you; they will measure your behavior and words. If you can answer yes on all three points, then your self-esteem should climb. You can take pride in being an individual of integrity, loyalty, and compassion. People will gravitate to you, seek your counsel, and cherish your friendship. Here are the three questions:
- Can I Trust You?
- Are You Committed to Excellence?
- Do You Care About Me?
20) Dr. Robert McNeish’s 1972 Article- Lessons From The Geese is perhaps the best synopsis of teamwork ever given. Here are the 5 Basic Truths about Teamwork and the Lessons we learn from Geese:
FACT—As each goose flaps its wings it creates an ‘uplift’ for the birds that follow. By flying in a ‘V’ formation, the whole flock adds 71% greater flying range than if each bird flew alone.
People who share a common direction and sense of community can get where they are going quicker and easier because they are traveling on the thrust of one another.
FACT—When a goose falls out of formation, it suddenly feels the drag and resistance of flying alone. It quickly moves back into formation to take advantage of the uplifting power of the bird in front of it.
If we have as much sense as a goose we stay in formation with those headed where we want to go. We are willing to accept their help and give our help to others.
FACT—When the lead goose tires, it rotates back into formation and another goose flies the point position.
It pays to take turns doing the hard tasks and sharing leadership. As with geese, people are interdependent on each other’s skills, capabilities and unique arrangements of gifts, talents or resources.
FACT—The geese flying in formation honk to encourage those up front to keep up their speed.
We need to make sure our honking is encouraging. In groups where there is encouragement, the production is much greater. The power of encouragement is the quality of honking we seek.
FACT—When a goose gets sick, wounded or shot down, two geese drop out of formation and follow it down to help and protect it. They stay with it until it dies or is able to fly again. Then they launch out with another formation or catch up with the flock.
If we have as much sense as geese, we will stand by each other in difficult times as well as when we are strong.
Andrew Carnegie, the ‘Steel King’, considered knowledge as potential power. He said it only became actual power when it was ORGANIZED AND ACTED UPON!
To Mr. Carnegie there was a big difference between an abundance of knowledge and being educated. In his book, THE WISDOM OF ANDREW CARNEGIE, (as told to Napoleon Hill), he said, “The difference will become apparent if you look up the Latin root from which the word ‘educate’ is derived. The word ‘educate’ comes from the Latin word educare, which means to draw out, to develop from within, to grow through use. It does not mean to acquire and store knowledge!”
He went on to explain that “Knowledge is not power, but the appropriation and use of other men’s knowledge and experience, for the attainment of some definite purpose, is power; moreover, it is power of the most beneficial order.”
The concepts crucial for business survival and the avoidance of business failure are listed below. They comprise the foundation and are not an exhaustive list, but if built upon they will anchor sustainable growth.
These fundamental concepts, in Mr. Carnegie’s words, are the other men’s knowledge and experience, you can confidently act upon.
PART 1
MONEY
Understanding the Numbers Behind Every Business
"CONCEPT OUTLINE"
The concepts presented in Part 1 of the Business Quiz are as follows:
1) Business has more than 1 Bottom Line.
2) Specific numbers ‘Drive’ each Bottom Line.
3) There are 3 Indispensable Business Tools needed to avoid failure.
4) Each Indispensable Business Tool is uniquely founded in Accounting & Finance.
5) Accounting & Finance has a language all its own.
6) Each Financial Statement provides a different perspective on the business.
7) Cash Flow can be confusing.
8) All businesses operate around the principle of ‘an obligation and a promise’.
9) The Balance Sheet is unique from all the other Financial Statements.
10) The Balance Sheet answers 4 Questions owners, executives and managers ask.
11) Key Financial Indicators (kfi’s) are often overlooked.
12) The Income Statement can be extremely dangerous and misleading.
13) There is a ‘Hidden Line’ on each Income Statement.
14) The ‘Life Blood’ of every business.
15) Are a company’s profits real or have they somehow been manipulated?
16) The essence of ‘Power Analysis’ captured.
17) The difference between Managers and Owners & Shareholders.
18) Trend Analysis answers questions.
19) Red Flags & Insight into possible problems.
20) Business As Usual or the Proactive Approach.
Mastering these concepts will help take you from Awareness to Action!
ANSWERS FOR PART 1 (MONEY)
1) The 3 Bottom Lines in business are:
Net Profit
Return on Assets (ROA)
Operating Cash Flow
2) The Drivers of the 3 Bottom Lines are:
Net Profit = Sales, Cost of Goods Sold (COGS) & Overhead
Return on Assets = Total Assets & Net Profit
Operating Cash Flow = Sales & Accounts Receivable
3) The 3 Indispensable Business Tools for effective planning are:
The Break Even Point
Financial Ratios
Variance Reports
4) The specific area of study in Finance & Accounting associated with each of the 3 Indispensable Business Tools are:
Cost Tracking = The Break Even Point
Financial Statements = Financial Ratios
The Budget = Variance Reports
5) The steps in the Accounting Cycle in sequential order are:
Transactions
The General Journal
An Account
The ‘T’ Account = Debits & Credits
The General Ledger
The Chart of Accounts
An ‘Adjusting Entry’
A Closing Entry = Closing the Books
Financial Statements
Trial Balance
6) The 5 Financial Statements that comprise a ‘Complete Set’ are:
The Balance Sheet = What is Owned and Owed
The Income Statement = Sales & Costs
The Cash Flow Statement = Actual Monies ‘In’ & ‘Out’
Retained Earnings = Kept Profit
Footnotes = Written Explanation of the Numbers
7) The Cash Flow Statement may be presented as:
An Indirect Format
A Direct Format = This is the one you want!
8) Obligations & Promises can be tracked using:
The Cash Basis Method
The Accrual Basis Method
9) The unique aspect of The Balance Sheet is that it covers only one day in time…usually the last day of the accounting period.
10) The 4 Questions answered by The Balance Sheet are:
Is the company solvent?
Is there sufficient liquidity to pay the bills?
What do the assets consist of?
What claims are against the assets?
11) The Key Financial Indicators (kfi’s) common to all businesses are:
Cost of Goods Sold (COGS) / Sales
Marketing, Sales, General & Administrative (MSGA) / Sales
Net Profit
Return on Sales (ROS)
Total Assets
Asset Turnover
Return on Assets (ROA)
Receivable Turnover
Receivable Days
Net Fixed Assets
Net Profit / Net Fixed Assets
Total Equity
Financial Leverage
Return on Equity (ROE)
Average Receivables
12) The imminent danger of the Income Statement is that Profit does not equal actual, spendable cash. This is due to the fact that there are estimates and assumptions made in compiling the numbers. It does not show actual money that can be spent.
13) The ‘Hidden Line’ on the Income Statement is located directly below the line entitled GROSS PROFIT. Cost of Goods Sold is found ‘Above the Line’ & ‘Overhead’ Costs are found below the line. Each business entity determines what goes where.
14) The 3 Major Areas of Distinction on The Cash Flow Statement are:
Operating Cash Flow (OCF)
Investing Cash Flow (ICF)
Financing Cash Flow (FCF)…not FREE CASH FLOW
Operating Cash Flow (OCF) is the ‘lifeblood’ of every organization!
15) To test the quality of a company’s earnings or profit you examine the Operating Cash Flow (OCF) in 4 ways:
Operating Cash Flow (OCF) should be positive.
Operating Cash Flow (OCF) should exceed Net Profit.
Operating Cash Flow (OCF) should exceed ICF.
Operating Cash Flow (OCF) should be trending upward.
16) The ‘Simple Du Pont Equation” is:
Return on Sales (ROS) X Asset Turnover (ATO) = Return on Assets (ROA)
17) Managers usually concentrate on the ‘Simple Du Pont Formula’ because it focuses on Assets. Owners and Stockholders usually concentrate on the ‘Extended Du Pont Equation’ because it focuses on Equity. Managers are generally concerned with how the company is performing, while owners and stockholders are generally concerned with how their investment is performing. The ‘Extended Du Pont Equation’ is:
Return on Assets (ROA) X Financial Leverage (FL) = Return on Equity (ROE)
18) The 4 areas of concentration in Trend Analysis are:
Sales
Costs & Expenses
Assets
The 3 Bottom Lines
The Key Factors used in Trend Analysis are:
Total Sales
Fixed Asset Investment
Cost of Goods Sold (COGS) / Sales
Marketing, Sales, General & Administrative (MSGA) / Sales
Net Profit / Sales = Return on Sales (ROS)
Receivable Days
Inventory Days
Net Profit / Net Fixed Assets
Sales / Total Assets = Asset Turnover
Operating Cash Flow (OCF)
Net Profit (Loss)
Return on Assets (ROA)
19) A Dollar Trend Graph illustrates:
Operating Cash Flow (OCF)
Net Profit
Sales
The significance of a Dollar Trend Graph is that it shows how each of these areas is trending and how they relate to each other.
20) The 4 Steps in the ‘Proactive Projection’ are:
Trend Analysis
Decision Making
Key Driver Identification
Financial Statement Projection
The importance of each step is this:
Trend Analysis tracks history and movement.
The best decisions are long term in perspective.
Key drivers are specific to industry and entity.
Financial Statements can be projected to evaluate results and changed where needed to target objectives.
BUSINESS QUIZ
ANSWERS
When does knowledge become power?
A QUESTION TO CONSIDER...
PART 2
PEOPLE
Understanding the Greatest Asset You Possess
"CONCEPT OUTLINE"
The concepts presented in Part 2 of the Business Quiz are as follows:
1) See things from the other person’s point of view.
2) Get your message across in 30 seconds or less.
3) Learn how to solve problems and teach others how to also.
4) Recognize that each person has the inherent ability to succeed.
5) Expectations lay the foundation for success.
6) A successful work place environment is created. (It doesn’t just happen.)
7) Achievement is the best motivator.
8) The ‘Common Denominator of Success’ is the creation of good habits.
9) All success begins with thoughts. Imagination is the ‘hub’ of success.
10) There is a difference between being ‘rich’ and having ‘true riches’.
11) Personal integrity is a competitive advantage in business.
12) There are 11 Essential Skills Needed for Survival in business today.
13) Problems result from violating one or more of the Immutable Laws of Nature.
14) Diligence differentiates.
15) Whoever asks the question controls the moment.
16) Thoughts become things.
17) Productivity is tied to self-confidence.
18) Only 3% of people in the work place are winners.
19) 3 Questions we all ask—knowingly or not.
20) Teamwork illustrated.
Mastering these concepts will help take you from Awareness to Action!
"Dealing with people is probably the biggest problem you face, especially if you are in business. Yes, and that is also true if you are a housewife, architect or engineer. Research done a few years ago at the Carnegie Institute of Technology uncovered a most important and significant fact. These investigations revealed that even in such technological lines as engineering, about 15 percent of one's financial success is due to one's technical knowledge and about 85 percent is due to skill in human engineering-to personality and the ability to lead people."
-Dale Carnegie
SUCCESS
IS A
SIMPLE PROCESS
If you want to be successful:
- Find other people who have achieved what you want
- Discover what they did to attain it
- Do the same things!
And if you persevere you will get the same results.
-Brian Tracy
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