ABOUT 
O'HARA BUSINESS STRATEGIES!

O'Hara Business Strategies' mission is "to help clients strategically succeed". Strategically simply means keeping a focus on the key issues and trends facing your company, as well as the long-term success of your organization. Our website is:  https://oharabiz.com   .

O'Hara Business Strategies offers hundreds of POWERFUL, PROVEN AND PROPRIETARY STRATEGIES, SYSTEMS, AND SOLUTIONS to empower your business to become MORE profitable and "worthy of being franchised", as well as becoming the place to fulfill your dreams!

The late Stephen R. Covey, in his classic book, "The 7 Habits of Highly Effective People" captured the strategic mindset with his "Begin with the End in Mind" and "Put First Things First" habits. 

Daniel D. O'Hara and his network of associated professionals can help you make the right choices for your organization. Choices that sidestep the pitfalls and allow you to stride confidently forward. Choices that enhance the stability of your company and allow predictable progress toward your goals.

So, please check out this blog (just scroll down) for short articles on business topics & trends, informative internet links, classic quotes, recommended books, and information about O'Hara Business Strategies--the services offered, Daniel O'Hara's background, and more.

BENEFITS OF STRATEGIC MANAGEMENT

Strategic management offers financial and non-financial benefits. It helps an organization's leadership plan with greater intelligence and wisdom.

The ancient Hebrew king Solomon, famous for his God-given wisdom, noted in Proverbs 24:3-4, "Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms are filled with all precious and pleasant riches."

SWOT ANALYSIS... One of the classic tools illustrating the wisdom of strategic management is the SWOT Analysis, which considers internal organizational strengths and weaknesses in light of the environment's threats and opportunities to develop strategies for success.

The SWOT Analysis helps management discern and choose the most advantageous strategic choices customized for a company's situation.  It may seem a straightforward exercise to some but a SWOT Analysis requires candor, bold integrity, knowledge and awareness, discernment, and proven business experience and savvy to identify key internal and external factors, as well as prioritize them effectively. Call on O'Hara Business Strategies (and check out our website at oharabiz.com for more information).

OTHER BENEFITS... Strategic plan also offers some or all of the following financial and non-financial benefits:

• Clear direction. Strategic management sets a direction for an organization and clarifies its mission, helping to reach goals and prioritize resources wisely!
• Operational improvement and cost savings. Efficiency and effectiveness often result from the focus and optimized use of resources realized from wise planning.
• Increased profits. Various researchers have shown this link which comes from the competitive advantage and differentiation often achieved from strategic management.
• Improved, faster and more effective decision making.
• More motivated and inspired employees.

STRATEGY THROUGH HISTORY...

    In the complex world of the 21st Century, strategy in business is crucial but it has been happening throughout history.

   In 216 B.C., Hannibal led the Carthaginians across the Alps, to victory in battle against a numerically superior Roman army by using the natural forces of the terrain to defeat the Romans, who were packed so densely that they could not use their weapons effectively and having their retreat cut off, were slaughtered.

   And, in another ancient example of strategy, the God-given strength of Samson, further empowered by the "...the Spirit of the Lord came mightily upon him..." and Samson "...killed a thousand men with it", with the jawbone of a donkey he killed a thousand Philistines who were the threat to Israel in that day. 

CONCLUSION... Unlike once-and-done strategic plans, effective strategic management requires continuous planning, monitoring and testing of an organization's processes and resource utilization. The bottom line is, strategic management allows an organization to be pro-active, initiating and influencing rather than reacting and responding to its environment.

SOURCES:

1) "Concepts of Strategic Management", 2nd Edition, pgs. 27, 58-61, and pg.85, by Fred R. David.

2) "Strategic Management, A Competitive Advantage Approach, Concepts & Cases", 16th Edition, pgs. 8, 16-17 and pg. 25, by Fred R. David and Forest R. David.

3) Judges 15:14-17 and Proverbs 24:3-4 from the New King James Bible.

4) Photos used from Pinterest according to the Fair Use Rules of the U.S. Copyright Law in this article and throughout this blog.

WHAT IS CAUSING YOUR BEST TALENT TO QUIT YOUR COMPANY?

In today's competitive business landscape, retaining talent is more crucial than ever. Yet, many companies find themselves grappling with high employee turnover rates, perhaps considering it to be a normal condition. The reasons behind these departures are often complex, but one key factor stands out: management problems! Understanding why employees leave can help executives create a more supportive and engaging work environment.

Imagine Sarah, a talented marketing executive who once thrived in her role. Initially, she felt energized by her work, but over time, the excitement faded. Her manager, overwhelmed with their own responsibilities, frequently overlooked Sarah's contributions. This lack of recognition left her feeling undervalued, ultimately leading her to seek opportunities elsewhere. Sarah's story is not unique; it's a common narrative that echoes in workplaces across various industries.

LACK OF SUPPORT...  One of the most significant reasons employees quit is the absence of support from their managers. Employees need guidance, feedback, and resources to succeed. When managers fail to provide this support, it can lead to frustration and disengagement. Consider John, a software developer who struggled with a challenging project. Instead of receiving the mentorship he needed, he was met with indifference. Feeling isolated and overwhelmed, John decided to leave for a company that prioritized employee development.

UNREALISTIC EXPECTATIONS...  Executives and managers may rationalize that employees were given training during the on-boarding process or that staff should research the answers on their own! However, training is often not complete- not addressing the very real "minefields" that are a part of many positions that are not addressed in formal training programs! Also, unrealistic time pressures on employees may mean research on many issues at one time is not realistic, especially when many issues require judgment calls that are not readily researchable. Consider the corporation that make customer service and empathy to be key Core Values within the company but recognizes there may be times that employees need to be able to disengage from a difficult, abusive, or threatening customer...the question then becomes, "Where do you draw the line?" and will an employee be second-guessed, browbeaten, or disciplined if he doesn't read his manager's mind correctly?

POOR COMMUNICATION... Communication is the lifeblood of any organization. When communication falters, misunderstandings can arise, leading to a toxic work environment. Employees crave transparency and clarity from their leaders. Take the case of Emily, a sales representative who felt blindsided by sudden changes in company policy. Without adequate communication, she felt insecure about her role and ultimately chose to resign.

INADEQUATE RECOGNITION... Recognition is vital for employee morale. When achievements go unnoticed, employees may feel that their hard work is in vain. For instance, consider Mark, a dedicated team member who consistently exceeded his targets. Despite his efforts, his manager rarely acknowledged his contributions. Over time, Mark's motivation waned, and he left for a role where his successes would be celebrated.

FOSTERING A SUPPORTIVE ENVIRONMENT... As company executives, it’s essential to recognize the impact of management style on employee retention. Creating a culture of support, open communication, and recognition can significantly reduce turnover rates. Implementing regular check-ins, providing professional development opportunities, and celebrating team successes can foster a more engaged workforce.

CALL TO ACTION
If you’re a company executive, take a moment to reflect on your management practices. Are you providing the support your employees need? Do you have unrealistic expectations. Are you communicating effectively? Are you recognizing their hard work? It’s time to reassess and take action. By addressing these management problems, you can create a thriving workplace where employees feel valued and motivated to stay.

Let’s build a better workplace together. Contact O'Hara Business Strategies (and check out our website at oharabiz.com ) to learn more about effective management strategies and how to retain your best talent today! 

DDOa  

LLC or S Corporation? Which is best for your business?

Perhaps, the two most popular for legal entities for small businesses today are the Limited Liability Company (LLC) and the S Corporation. They offer liability protection and an increased image of professionalism over a sole proprietorship without the double taxation and extra burdens of a C Corporation. 

The LLC offers liability protection, as well as simplicity, along with professionalism. The S Corporation is simpler than a C Corporation!

The LLC is generally less costly to maintain and doesn't necessarily require outside monthly payroll, tax preparation, and other professional fees that are often lower than for a S Corporation.

However, the S Corporation really shines in one key respect...........it can save substantially on self-employment taxes compared to an LLC. How does this happen?

     Example: Acme Dog Biscuit Company's owner, Stan, takes $100,000 out of his business. He takes a $40,000 salary and the remaining $60,000 as the profit from the business.

       In a proprietorship or a typical, single-member LLC the whole $100,000 would be subject to 15.3% self-employment tax. In the S Corp, Stan would pay Social Security as wages and the S Corporation would pay the other half. However, as long as Stan is paid a reasonable salary ($40,000 in this case), the remaining $60,000 would "pass-through" to Stan as being taxed as ordinary income only, not subject to self-employment tax. 

       Effectively, the savings in self-employment taxes would be over $9000 for an S Corp. This needs to be balanced against possibly higher accounting, legal and tax prep fees for the S Corp over the LLC.

It needs to be emphasized, in the example, that Stan must be paid a reasonable salary since this can be a commonly audited area by the IRS if the S Corporation pays less than a reasonable amount. 

However, it is possible to re-characterize an LLC as a tax entity, taxed as an S Corporation, with some planning and petitioning the IRS to change entities and filing a Form 2553 to elect S Corporation status. It can all come to timing, which the LLC offers! It offers the flexibility to remain taxed as a sole proprietorship or partnership as long as the member's income is relatively low.

There are some capital-raising and other considerations to be considered, as well. The S Corp can work well for a company that may expect to benefit from decreased self-employment taxes in the first years of its operation!

One final caveat is that, if a business does distribute most of its income, as salaries to the owner and has little net income from the business itself, the benefits of reduced self-employment taxes is minimal. Therefore, all other issues remaining equal, the LLC can be a more attractive entity choice.

For small businesses that have a significant portion of their income as net income from the business and less from salaries paid to the owner, the S Corporation can offer significant savings in self-employment taxes! 

DELEGATION 101

Delegation is a key skill for managers and entrepreneurs. Leveraging competent staff, a business can both flourish and allow leaders to focus on leading, building and growing!

One of my favorite illustrations of effective delegation is found in the classic book, "The 7 Habits of Highly Effective People" authored by the late Stephen R. Covey. 

Covey had excellent insights on the topic in "7 Habits". His premise was that leaders, or producers, delegated in one of two ways:

"Gofer Delegation" which means "Go for this, go for that...tell me when it's done." An example: a construction contractor I once knew, quipped, "I just want someone who can hand me tools", when he referred to his staff needs! In the extreme sense, it is a slave. Covey calls it the producer mentality; "...roll up your sleeves and get the job done". The focus is on methods, not results. Very little, if any, investment is required or desired in developing/training people. Ironically, the results are limited because you can't supervise very many people with this approach, so growth is limited. Unless you have an overseer motivate with a whip (not legal, the last time I checked). 
    Unfortunately, leaders who major in, what Covey called, "gofer delegation", seem to share a number of these common traits:

• a disdainful, superior attitude to their employees, 
• high, even unrealistic, expectations that often result in an employee's failure, which justifies their need to do the job themselves, 
• a "production focus" results since such leaders are technicians (carpenters, plumbers, accountants, farmers, etc.) and such folks often find great enjoyment out of doing their work well instead of developing others to do the same,
• employees are often viewed as a hassle--often due to a lack of training and effective delegation-- than as a resource to develop and leverage, benefiting all concerned, and 
• they possess a strong need to control results and avoid hassles, which is ultimately counter-productive, since people can feel used & trust is often destroyed, systems aren't put in place, the business flounders and this micro-managing approach actually further frustrates the leader. 

"Stewardship delegation" which is focused on results, not methods.  It gives subordinates the choice of method but also makes them responsible for results. It takes an investment of time up-front but the return can be enhanced, both in quantity and quality. Covey notes up-front commitment and understanding are required in five areas:

• Desired results - Covey used the example of "green and clean" when he delegated his yard's care to his young son. Clear, mutual understanding is needed!
• Identify parameters, guidelines and pitfalls. Sometimes, a certain method must be honored for safety, regulatory or perhaps liability reasons. Point out the potential minefields in a task!
• Identify resources that can be used, whether financial, technical, human or organizational. An example: time draining technical glitches on a software program might require reaching out to a computer technician inside or outside the company.
• Accountability - Set up standards of performance and the times when evaluation will take place. Obvious examples are the scheduled performance review many employers do or a report card for students..  
• Rewards & consequences - Specify what will happen...good and bad, in terms of financial rewards, psychic rewards, natural or actual consequences. If someone isn't measuring up, coaching can be an excellent way to salvage the investment in that person before an abrupt termination!

As noted previously, Stephen Covey illustrated "stewardship delegation" effectively with an experience involving his young son. His seven-year-old son, Stephen had volunteered to take care of the family's yard during a family meeting designed to spread out the family's workload. Covey explained how sound delegation practices can work with the youngest person or the most mundane, low-skill job. Specifying that he wanted a yard that was "clean and green", and with patient training and a few rough patches, Covey noted that his son, Stephen, "...kept it greener and cleaner than it have ever been " under his own stewardship. 

Covey's bottom line...was that effective delegation is perhaps the best indication of effective management but it takes a commitment to manage, not just produce.



Sources:

*"The 7 Habits of Highly Effective People" authored by the late Stephen R. Covey, pg. 172-179. 

*Photo from Pinterest used in this article and throughout this blog in accordance with the Fair Use Rules of the U.S. Copyright Law.

*Originally posted in June 2016, revised in 2025.

THE BENEFITS OF SYSTEMS, 

"THE E-MYTH WAY" WAY!

Michael E. Gerber, in his classic business book, "The E-Myth" illustrated how Ray Kroc, founder of McDonald's, pioneered the "systems approach" to running a business. Gerber termed it the "Franchise Prototype", which he viewed as the answer to how and why a business owner can "work on a business, not in it." 

Gerber offered six key benefits of using the "systems approach" model to operating a business:

• The "Franchise Prototype", as Gerber termed it, provided "consistent value" to business stakeholders, going "beyond what they expected." A big part of that value is the consistency. For example, a Big Mac at McDonald's can be trusted to look and taste the same at McDonald's restaurants all over the world. The same can be said for the chicken served with Colonel Sander's famous Original Recipe at KFCs globally. 
• The systems approach makes work a streamlined process, which allows the business model to be "operated by people with the lowest possible level of skill." The bottom line: your business won't be held hostage to your best people. Your systems and documentation will be the anecdote to maintaining high quality. As a caveat: it is possible that a manager can sabotage an installed system, if their "tweaks" confuse people or if time pressure renders the system to the dust bin.
• This business model will be a place of "impeccable order." This order adds value by creating trust and peace of mind with customers. It also allows employees to do their job, instead of worrying about which supervisor or manager's method they need to be using, or who to please.
• In the Franchise Prototype model pioneered by Ray Kroc, "all work is documented in a clear Operations Manual."  Gerber notes the operative word is, "clear". Again, in reality, change happens. The system needs to be updated/ revised to address those changes or a business can once again be moved by the "whims" of key staff or managers.  
• Uniformly predictable service will be provided to customers. This is the benefit, as noted previously, that McDonald's provides and other franchise businesses provide that enjoy more sales than many "mom and pop" stores, without such a predictable reputation!
• The systems business model will utilize a uniform color, dress and facilities code. This goes along with predictability and providing a consistent experience for customers. 

Source of Mr. Gerber's quotes and insights are from "The E-Myth Revisited" by Michael E. Gerber, pg. 98-99. Used under the Fair Use Rules of the U.S. Copyright Law.

Originally posted in 2016, updated in 2025.