How to Worry Productively

Rounding out July, here is the hot news: #ExitStrategy, #MergersAndAcquisitions, #Threads, and #TonyBennett. Enjoy this week's issue of the MAD newsletter for leaders who want to Make A Difference.

In this issue:

1.????How to Worry Productively

2.????Tony Bennett, Entrepreneur

3.????Four Exits

4.????M&A 2023

5.????Cage Match

6.????Econ Recon

How to Worry Productively

Worrying productively means you focus on the right things to be concerned about and think through plans to manage and mitigate risks. Insurance is one way to mitigate risk.?According to?Patrick Esposito it is only the start.?He recommends comprehensively identifying, assessing, and prioritizing the potential disasters and risks that exist for your business.

His list of risks includes: customer attrition, loss of talented team members, localized natural disasters, and replacing business assets (people and things).

Read his CEO World article, Leadership: Turn Business Uncertainties Into Business Advantages, ?on how to also understand which disasters and impacts are interdependent or causally related.

Then you can worry about things with a strong likelihood of happening and with a major impact.?

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Tony Bennett, Entrepreneur

Tony Bennett passed away this past Friday just a few days short of his 97th?birthday after a seven-decade career.?

Raised in poverty and losing his father at age 10, his WWII service included fighting in the last big Nazi offensive of the war, the “Battle of Bulge,” and helping to liberate a concentration camp, and earning a Bronze Star for his service.?

After the war, another great singer, Pearl Baily introduced him to comedian Bob Hope who took him on the road, launching a 70-year career. Early success in the 1960s were followed by a decade of personal struggle with drugs, meeting the challenge of rock n’ roll and issues with the IRS. His sons helped him overcome these challenges, allowing him to focus on introducing his earlier material to a generation unfamiliar with it, ultimately inspiring younger stars like Harry Connick, Jr., and Michael Buble’ to resurrect this genre.?He also developed another career as a painter.

The essence of a successful competitive strategy is being unique. Bennett began working with unlikely artists from very different genres including Willie Nelson, Aretha Franklin, Amy Winehouse and, most notably, Lady Gaga with whom he produced several albums and wildly successful tours, while preserving and refining the core of his original offering. He was a genius at bridging generational divides (marketers take note).

This chronology of his life?recaps a remarkable life; a rise from poverty, courageous soldier, musician, painter, recovery from addiction, overcoming the adversity of a market that turned against him. and a true musical entrepreneur.???

Rest in Peace, Tony…you gave us great music, but more importantly, the example of a life well lived.

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Four Exits

In The 7 Habits of Highly Effective People the late Stephen Covey suggested that the effective person “begins with the end in mind.” ?If you’ve already begun?by starting or buying a business or having a significant stake in one, it’s not too late to think about how you want it to end.

Vistage Speaker and exit planning expert Patrick Ungashick provides a useful overview of the various ways owners monetize the value they’ve created and warns that you have to be ready before the buyers start knocking on the door. Find out in his blog post?Why There are Only Four Exit Strategies and the Danger of Not Knowing Yours.

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M&A 2023

And while we’re on the subject of exits, most middle market CEOs have little to no exposure to the art and science of mergers and acquisitions (M&A). Vistage speaker Marc Emmer offers his annual take on the M&A arena that provides a good executive summary of?where the deal world is, where it’s going and some thoughts about the best time to hit one of the four exits mentioned earlier.

Check out his recent post:??Merger and Acquisition Trends for 2023 and Beyond.

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Cage Match

One of the weirder recent news stories has Twitter’s Elon Musk’s challenge to Mark Zuckerberg of Facebook to a?Cage Match. It’s not clear how either company benefits if its CEO is the victor in this version of “Trial By Combat” or if a wager is involved, but it’s unique way to build a brand.

Of more interest to thoughtful businesspeople is how and whether Threads will succeed. Regardless of your choice of platform, this is a good object lesson on strategy. The winner of the cage match notwithstanding (should it happen) the real story of any great startup is whether it can continue. Check out Meta’s Threads Takes on Twitter:?Will the Success Continue?

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Econ Recon

Overdone Optimism: ?Reports of moderating inflation have lifted the spirits of many including equity investors this past week. But it may be premature according to Brian Wesbury to declare inflation tamed and the fears of a recession behind us. In his latest blog post he warns of “overdone optimism”?and suggests we seriously question if “the inflation threat has passed?”

Fed Watch:?ITR’s Brian Beaulieu’s latest Fed Watch offers some insights on what the Fed may do next on interest rates, trends in savings and retail sales,?and some surprising (versus conventional wisdom) regarding gold. Check out his latest Fed Watch.

The Next Great Depression: ?Those who follow ITR economics know that?they have long predicted another Great Depression to occur at the end of this decade. Brian and Alan Beaulieu are offering a webinar on July 27th that you may want to watch.?Check out this 5-minute preview of their deep dive regarding what’s ahead.

Please share the MAD newsletter with your friends, other leaders, or colleagues who might be interested. I encourage forwarding or reposting the newsletter.

Wishing you a productive week!

Sue Tinnish, PhD,?Vistage Chair, Facilitator, & Executive Coach

Find me easily at: 847.404.7325,?[email protected], Twitter:?@STinnish, LinkedIn:??www.dhirubhai.net/in/suetinnish, Website:??https://vistage.com/chairs/sue.tinnish??