Israel Kushnir tells us how a focus on improvement helps this management consultant company save many a small business.

Before he became president of George S. May International, Israel Kushnir was a field analyst. Then he had a conversation that would stick with him. A client had turned to Kushnir’s company to improve business performance yet was afraid employee questionnaires would upset staff, telling Kushnir he treated employees like family. “I told him to tell his employees because he ran the business like a family and lost $100,000, they could share the loss and give him $10,000 each. They would’ve headed for the door to look for another job,” Kushnir said. “If you want to do the best for your employees, you have to be as profitable as possible, otherwise you won’t be around.”

George S. May International works with small and medium-sized businesses (SMB) to help them run like a large business. Kushnir has been at the helm since 2002, but his tenure with the company began in 1981 holding positions in Chicago, San Jose, and Italy before taking the reins. Founded in 1925, the company is still owned by its founder’s family. It has worked with half-a-million companies in hundreds of industries. The company’s strength is not just an ability to help companies succeed but also its capacity to do so no matter the business. Whether for a retailer or a landscaper, roadblocks can be similar for any business. The main challenges are resistance to change and the factors that led to the creation of the SMB in the first place. Many business owners became entrepreneurs to be their own boss, for time away from the office or for financial rewards. But few SMB owners have the business savvy needed for long-term success.

“A lot of owners are looking to ply their trade. They want to spend more time working on their specialty and don’t pay attention to the business aspects of running a successful company,” he said. “That is why most fail.” The company first conducts a survey analysis of its clients, interviewing owners, surveying employees, and examining financial statements. Once the analysis is presented to the owner, the companies decide on a formal management consulting relationship. If a relationship is finalized, consultants go on premise with clients to design systems and controls to fix problems in the business. Once that is complete and the consultant leaves, the client gets an 800 number and an e-mail address to use as a resource forever.

According to Kushnir, 80% of American SMBs don’t last five years because of a lack of proper enterprise management processes. The resistance to change processes also kills many businesses. This is why Kushnir wishes more owners would explore his company’s services on their own.

“If more clients sought us out, there would be fewer problems in the SMB arena,” he said. “Too many owners aren’t interested in learning how to improve their business management skills on their own. They need to be nudged.”

Practice what you preach

Unlike many of its clients, George S. May International is not afraid to change its own processes. From reducing its physical footprint to going paperless, the company isn’t content to rest. The company once had offices in Europe and on the West Coast. But due to the Internet and modern telecommunication, several years ago the company decided to consolidate management operations to headquarters in Chicago. Its only other offices are in Montreal and Mexico City. The company also improved its ability to service clients. It recently partnered with iDashboards to provide a Web-based electronic portal product. The offering allows owners and managers to monitor data from anywhere in the world, making them more efficient and productive.

Also, since many SMBs use QuickBooks, the company invested in the QuickBooks ProAdvisor program, as many of its consultants are certified QuickBooks pro advisors. The company also partnered with a firm specializing in value management, as clients are interested in succession planning or exit strategies. Lastly, the company is rapidly going paperless, eliminating expense vouchers and sales and personnel records. The company historically generated tons of paper, and many reports previously generated on paper are unnecessary. “The largest receptacles in our offices were for paper shredding,” Kushnir said. “For the U.S. to continue as a leader economically and politically, we have to become green.”

While there were some growing pains internally, company staff adapted to changes in operations. Part of that stems from a thorough understanding of the skill sets needed for employees throughout George S. May International. The company developed a new rating system for employees to compare against expected department standards. Catalytic coaching is replacing traditional evaluation-based systems. Kushnir said employees find it engaging instead of demeaning. He called it coaching and mentoring, rather than command and control. The company also works on executive development using speakers and workshops. It has programs designed to increase generational awareness, since different generations work side-by-side with different values and ideas. The company also has tuition reimbursement, scholarship programs, and recognition programs designed to enhance employee education and satisfaction.

Kushnir said job satisfaction is something he has felt since joining the company. “Many owners invest more than they can afford in their businesses. It is gratifying to read letters from clients and see how we’ve helped them by teaching them how to run a business,” he said.

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