Business edge blog - DesMoinesRegister.com

Growing Your Company – avoid growth for sake of growth

Thu, 21 Aug 2008 02:02:00 -0700

We’re all challenged to grow our businesses. Someone once said, “If you’re not growing, you’re dying.” Everyone said, “Yeh, that’s right!” But, beware of unfocused growth for growth’s sake, or growing helter-skelter. No plans? No filter for new opportunities? Not good!

So, how should you grow? Go back to your original dream of creating your company. Somewhere, you got an idea… “I want to build a design company, or a construction company, etc. I believe that I really can do it better.” The dream is your focus, your opportunity filter.

Now, with all the deals coming ‘at you,’ growth goals need to be manageable. For example, as a Management Consultant, if I grew just to avoid ‘dying,’ I could mutate into just about anything and avoiding dying. I could be networking, hear an opportunity and think, “I can do that” and lose sight of my original vision of management consulting.

Keep focus. Set boundaries for the new opportunities that will surely come your way.

Within your original business plan you set goals, and clarified your business scope, capability requirements, expected core processes, and execution plans.

Maybe you need to refine or revise your scope. Who are your customers? Likewise, who aren’t your customers? What are your skills, and what aren’t your skills? Ready to hire new employees so soon? What are your geographical boundaries? Willing to drive 250 miles to visit a client? You get my point.

However you grow, manage your vision. You will better learn, understand and adapt to your market more effectively. Be careful of finding too many “good deals” that stretch your credibility, your customers’ patience, and your own resources. “Good deals are like street cars; one comes by every ten minutes.” Be thoughtful about “how” you grow. Don’t force it. You’ll live.

Strategic Market Research

Wed, 20 Aug 2008 09:46:00 -0700

Strategic Market Research

If you visit market research web sites, you are likely to find a lot of the same types of research being offered. It is common to find companies offering focus groups, telephone, mail and web-based surveys. The one thing that can be different amongst the research firms is the final product delivered to a client. Strategic marketing plans that incorporate strategic marketing research is the key.

Having a long term strategic plan is the best way to ensure that a client is heading in the right direction. A successful business is always looking ahead and has a plan. The goal is making that plan work for you. That is where strategic market research can help.

By watching trends, the competition, and customers, a client can grow. The long term strategic plan can be the tool that sets the client apart from the competition, by knowing their customers better than the competition, and then planning around what the research is telling the client.

Believing in your product/services and your plan is a great start, but having the research to back up what your customers want and need in your product is a must. Then you can have the information you need to make and benefit from a long term strategic plan for your company. Strategic market research is the solution.

Network Internally to Grow Externally

Tue, 19 Aug 2008 07:30:00 -0700

I recently had coffee with the District Manager of a corporation that has at roughly 1,300 employees. We shared a couple laughs, got interrupted 14 times and I did my best to confuse him with my rambling description of my consortium concept. Then one thing he said struck me...

He said "One of my challenges is that I can't get my employees to network."

That took me back to February of 2007... It was a cool April night and Java G's was filled with wide-eyed and bushy tailed young professionals. Mitch Matthews, my sister Hannah and I were about to crank out our 2nd Speed Networking Event. Like the first event, it took on a mind of its own. People began to connect and good leads and advice started to be passed.

One woman, came up to me during the event and said, "I don't know why we don't do this in our office. We could pass leads and never need to go to these events."

Well, in a way she was right. I set up an internal speed networking event at her office and a few things happened:

People asked open ended questions and realized they knew some of same people.
People realized they shared similar backgrounds.
And most importantly, in my opinion, people generated business from each other that was lying within the networks of the existing employees.

My advice to the district manager after we drank all the coffee... make sure you are networked internally and this will allow you to develop stronger teams, build networking confidence in those teams and build a base network of which to grow externally.

Hopefully, I can go 2 for 2. I enjoy batting 1.000

Who needs SWOT anyhow? You do, Mr. or Mrs. Biz Owner.

Wed, 06 Aug 2008 18:23:00 -0700

“Sure, I’ve heard of SWOT analysis. Small businesses don’t need them. It’s just a fancy MBA term that can’t add value to my firm. I don’t care about competitors or the industry environment. If I make it, I can sell it.” WRONG.

At Business Edge, we’ve heard similar comments too frequently…most often from entrepreneurs in small businesses, the very group who can benefit most. If you’ve been a reader of the Business Edge blog, you know how strongly we emphasize planning. Planning is critical for all sizes of businesses but even more so in smaller businesses as they have fewer resources and a single mistake can be catastrophic. The SWOT analysis is really a simple planning tool that can help you generate better results. This topic requires more space than is available here so I’d suggest you also Google “SWOT”. You’ll find many easily understood and useful web sites.

SWOT analysis is a strategic tool used to audit an organization and its environment. It is the first stage of planning and helps business owners focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. All impact the ability to achieve the organization’s goals. As you initiate planning, you should first document your objectives, your SWOT, and then very systematically and simplistically review and answer the following questions:

How do we use each Strength?
How do we overcome each Weakness?
How do we take advantage of each Opportunity?
How do we avoid each Threat?

These steps will help you develop tactics to reach your goals and are important to your success. If you want to know more…email or call, or merely, Google “SWOT”. Good planning.

Sales Velocity: Building A More Profitable Sales Process

Tue, 05 Aug 2008 09:14:00 -0700

Is Your Company Facing These Issues?

Are you looking for ways to more effectively identify & qualify leads?
Are you finding it difficult to acquire profitable new customers?
Are you looking for ways to build stronger relationships with current customers and strategic partners?
Do you need your sales team to close more sales and generate repeat business?

If you are facing these issues, you are not alone. Lead Generation is one of the most critical actions a company implements to keep their profits and revenues growing. However, if lead generation is such a critical activity, why do so many companies struggle in this area?The answer is very simple. Most companies have not developed an effective sales process to consistently and predictably identify leads, qualify leads, demonstrate value, close the sale, and deliver the promised product offerings. To help your company build a more profitable sales process, I will outline the five foundational phases of an effective sales process.

Phase 1: Prospect to Identify Opportunities. Research the market and existing customers to identify market need opportunities that your company can fulfill better than the competition. Remember, this is a continuous process.

Phase 2: Qualify Leads. This phase allows your sales/account team to affirm the value of the market need opportunity and to focus their efforts on the most ideal prospects.

Phase 3: Demonstrate Value. This is selecting and creating a communication medium to effectively demonstrate the benefit of your product offering(s).

Phase 4: Negotiate Value. Each customer is different. This phase aligns the product offering to the exact needs of the prospect.

Phase 5: Client Fulfillment. This is absolute commitment to delivering your promise to your new customers.

I realize that this is just a start to a solution. I look forward to your questions.

Mining Profits with your Suppliers

Thu, 31 Jul 2008 12:18:00 -0700

At first glance, you might sense that our topic is about how to “beat down” suppliers for lower prices. Why? Because that’s what most people do!

Ask a person tracking an operating budget and they will tell you that – over time – many organizations use “estimated savings from supplier negotiations” as a component for balancing the annual budget.

Realizing that on-going business relationships must be mutually profitable, how to do we “mine profits from suppliers” if we don’t beat them down? Here are some ideas that I have seen work…

Re-evaluate your service or product specifications. Do you have unnecessary requirements that drive unnecessary costs?
How do you prioritize your supplier evaluation criteria – first quality, then delivery, and finally price? That is the sequence that world class companies use! Are you absorbing hidden (unknown) operating costs just because your supplier provides cheaper products or services?
Have a Supplier Appreciation Day at your company. It’s not for sales-people – though they are important. It’s for Presidents of your suppliers… Give them a tour. Let them observe how you use their services and products. Ask them, "How can we can use you services or products more cost effectively?"
Involve you suppliers at the front end of each new product or service design. They will have many ideas that may save you time and money.
Are your suppliers “ETDBW” – that’s “easy to do business with?” Can you have a continuing conversation with them and help them identify some of their wasteful costs? That's costs that don't add value.
Finally, a variation of #5, implement a “mutual gain-sharing plan.” Over the past few years, some companies are working with their suppliers to achieve savings through cost reductions – and then, share the profits on a percentage basis.

Those are a few ideas to kick-off your thinking. Share your thoughts with us. We too are for reducing price; but not for “beating down” people, or putting them out-of-business.

Temporary Staffing: The Good, The Bad, The Ugly and What to Look for

Wed, 23 Jul 2008 13:03:00 -0700

Temporary Staffing: The Good, The Bad, The Ugly and What to Look for

If you have never worked with a temporary staffing agency you may have no idea what to look for. You may have no idea how a temporary staffing agency works. My objective in this brief post is to explain the major ins and outs based on questions I am typically asked.

Do I have to pay the temporary employees?

No, all temporary employees belong to their respective agency and are considered full fledged employees of the agency. The agency should be paying all social security and payroll taxes for the employee.

What about workers comp?

The workers comp coverage for the temporary employee has to be covered by the agency. This is a sticky subject at times with some agencies do not keep very good or solid coverage. You need to always do your diligence in making sure that the agency you use is well covered. That will avoid a potential lawsuit coming back to your company. I suggest asking for a copy of the insurance certificate and verifying that coverage is and has always been in effect without lapse.

Who pays the temporary employee?

Temporary employees are paid by the agency they work for and are typically paid weekly.

Do you give temporary employees benefits?

Speaking for Manpower, yes we do. We offer medical, dental, vacation, Aflac, and paid holidays. That is not typical of all of our competitors.

Can I hire them onto my payroll at any time?

Yes! That is what we call temp-to-perm. At Manpower 40% of anyone we put on assignment is hired on fulltime by the companies where we assign them.

These are just a few of the questions I’m asked the most. If you have a question I didn’t answer, please ask me below. I would be more than happy to answer that as well.

Using a temporary services agency can help your company in many ways as it grows. It can give you an on-call ability to fluctuate staff with the needs of the business and it can give you the opportunity to try employees before hiring them full time on your payroll. Most companies strive to have a flexible/temporary workforce of 10-20% in order to manage their workforce costs. Using a company like Manpower can definitely help you achieve that goal.

To keep up with all of the changes in the world of work visit my blog at www.WorkExposedBlog.com

Hey Iowa Businesses - the World is Your Oyster!

Thu, 17 Jul 2008 04:17:00 -0700

Timing has never been better to enter international markets. English is the global business language. Obstacles to entry have been reduced. You can operate a turnkey operation. The US dollar is at an all time low. Your once in a lifetime opportunity. But you can’t wave a magic wand and expect success. I know; I’ve lived and conducted extensive business abroad. There are pitfalls to avoid, but the opportunity is too great to overlook. Careful thought and the following tips will benefit your launch.

Your team must be committed. Start-up is arguably the most difficult phase; the planning process is critical. Don’t plan to enter on a shoestring budget or enter without assistance. Hire experienced outside counsel to help you develop a budget, objectives, milestones and performance metrics.

Don’t pursue the world. Target a single country or region. Take tremendous care selecting and training distribution partners. They represent you and your image in their country so treat them equal to domestic partners. Ensure them sufficient supply, even when domestic demand is high. Once the initial region is running smoothly, expand to others but with the same careful preparation.

Expect to modify your product. Don’t assume domestic product will fit international markets. Cultural differences dictate modification. Accept the reality of smaller production runs, reduced gross margins, and logistics issues. But recognize that, as volume grows, so will return.

Know the end-user. Seek in-country assistance to ensure your promotional efforts consider cultural and language differences. English is not the customer’s language. So do not try to get by with English peripherals. I’ve seen many mistakes; even General Motors. GM introduced the NOVA automobile in Argentina years ago with insufficient research…no va means no go in Spanish…and NOVA was a no-go!

Seriously consider alliances. The cost of entry may create the need for an in-country partner. Again, choose carefully and protect your assets. Horror stories abound where JV partners stole technology. Commit to a plan, involve your team, select an internal champion but most of all, seek outside help. The time is right. The opportunity of a lifetime…

PaceSetter Consulting, a Business Edge affiliate, specializes in helping small cap, Midwest companies improve their leadership, performance management and marketing capabilities. Visit www.pacesetterllc.com.

Cities, counties and states miss the brand mark

Mon, 14 Jul 2008 12:58:00 -0700

Clive’s doing it. Ankeny and Peoria (Arizona) did it. And at any one moment in time cities, counties, states and regions across the country are doing it: they’re “branding” themselves. And in the end, after spending tens of thousands of dollars, they usually miss the mark because they don’t want to offend anyone.

No wonder brand management gets a bad rap from the general public.

Sorry folks, brands are offensive. By their very nature, brands are attractive and relevant to some and off-putting and irrelevant to others. Brands are about relationships between the organization and the audience, and not all relationships are meant to be. The secret is to be attractive and relevant to enough people that you can achieve your goal!

Branding, as it’s practiced by communities vying for more residents, employers or visitors, usually involves an outside consultant who provides a critical perspective and predictable criticism from people don’t feel the need for “outsiders” getting involved.

The process usually includes a survey or a number of focus groups to see what the citizenry has to say from which the consultant can discover the different, inviting and relevant components of the brand. Then, he or she throws those out in favor of the safe, inoffensive and benign that will appeal to everybody. Add the politically correct element and the brand falls squarely in the mushy middle of mediocrity. And the community adopts a bland slogan that sounds like every other community’s slogan, and the critics call it a waste of time and resources.

The process and the results could be so much better, I believe. I suggest that organizations charged with identifying the brand be more honest in their evaluation and courageous in their recommendations. Do the research and identify what rises to the surface. And then go with what’s different, inviting, relevant and truthful, not with what’s going to make everybody happy.

Las Vegas, for example, tried to say it was about “families” because some segment of the population thought that sounded good, but it wasn’t believable to tourists looking for a safe place to take their families. Now, everybody knows that “what happens in Vegas stays in Vegas.” Great brands run from the center. They want to be loved, adored and embraced, not just liked. And they’re willing to be ignored or despised by others. Think Apple Computers, Volkswagen Beetles, and the New York Yankees. Think Hershey, Pennsylvania; Santa Fe, New Mexico and Paris.

These brands are comfortable being different, they offer an unambiguous invitation to their customers, and they are relevant to enough people to make a profit and truthful enough not to disappoint.

Cities, counties and regions who want to attract new residents, new businesses and new visitors should settle for nothing less.

UPDATE: The City of Fulton, Missouri has jumped into "branding," using a public survey - with no deadline - to discover it's brand. "(Once we get all our responses) we'll mull that over and try to come up with a tagline and, maybe, a new logo" says Jim Dodson, a member of the branding committee.

I hope THAT'S productive.

Flickr photo by JimmyDHolified

Networking Shouldn't Be A Commodity

Thu, 10 Jul 2008 07:00:00 -0700

We currently live in an economy that changes everyday. With each change, businesses in all industries are experiencing different sets of challenges. One challenge I have recognized in the marketplace is how to spend advertising dollars wisely. With each dollar we spend being so precious, businesses must be sure that their advertisements are reaching their target audience. One consideration all businesses should make is to allocate time not money to networking. I know, I know... time is money, but proper networking forces interactions and gives opportunity a chance to come to fruition. With each connection that is made, you increase your odds of getting in front of your target customer.

Here's a 3 step tip for your next networking conversation:

1. Ask more questions than you are asked.

2. LISTEN to the responses to your questions.

3. Connect the responses you hear to your personal network & create an introduction.

No Venture Capital?

Tue, 08 Jul 2008 11:28:00 -0700

No Venture Capital?

Tradition has it that entrepreneurs should develop a well-polished business plan and then hit the streets looking for venture capital. Even with polish and planning, a good presentation should expect ninety-nine ‘no’s’ before the one ‘yes’ is achieved. Persistence is the key and perseverance will prevail.

Sometimes, however, tradition and wisdom don’t line up. And sometimes the better part of valor would point to an easier pathway to entrepreneurial capital formation. In a broad sense, strategic capital is backing or support of some type, obtained from a company with an interest in an entrepreneur, his/her product or his/her relationships. A venture capitalist, on the other hand, is a financial investor, seeking highly defined monetary returns resulting from the use of venture funding.

A strategic investor (strategic partner or strategic operator) is most interested in how an entrepreneur can help grow the operating company. For example, assume that I have invented and thoroughly patented an effective method of obtaining ethanol from trees. I would also like to commercialize the process.

It might be much more practical, profitable and safer for me to spend my time and energy in licensing the technology to existing companies rather than attempting to convince others to help me build a company based upon the technology.

Five Fatal Flaws Impeding Leadership Development

Thu, 03 Jul 2008 09:11:00 -0700

In his bestselling book, Good To Great”, Jim Collins highlighted the importance of Level 5 Leadership. However, the reasons more individuals did not emerge as a Level Five Leader was not directly answered.

From my research on leadership, I believe I have discovered an answer. It may not be ‘THE’ answer, but it does allow individuals that desire to develop as leaders to move a little further and a little faster down the leadership development road.

In the book “The Extraordinary leader” by John Zenger and Joseph Folkman, they describe Five Fatal Leadership Flaws. My experience has found that when even one of these flaws carry a high negative magnitude and the individual does not have a plan to reduce its impact, he or she will find it virtually impossible to be perceived as an effective leader.

The bad news - none of us are Flaw Free. The good news - these flaws are only fatal if you fail to see them and fail to plan for them. For a more complete description, and suggestion on ways to reduce or remove Fatal Flaws email me for my Fatal Flaw White Paper. Here are the five fatal flaws:

Inability To Learn From Our Mistakes.
Deficiency in Core Interpersonal Skills and Competencies.
Lack of Openness to New or Different Ideas.
Lack of Accountability.
Lack of Initiative.

Why are these flaws fatal? There are three reasons: 1) They are extremely obvious. Therefore, the flaw may have an enormous ‘ripple’ effect in the organization. 2) Each flaw is marked primarily by an inability to do something. This increases the likelihood that the organization will stagnant in its performance. Finally, the flaw stems from a deficiency in ‘emotional intelligence’ which will impact recruitment, training, and retention.

Evaluating Consultants - feeling a little queasy?

Mon, 30 Jun 2008 14:36:30 -0700

Thinking of hiring a consultant? Getting a queasy feeling? You're you sure; but not together convinced? How will you know you got the right one?

When done correctly and for the right reasons, hiring a consultant can be a good business decision.

Good ones bring outstanding value, experience, and “how-to's.” They understand your situation, can suggest multiple alternatives, and know “why.”

But, before you choose a consultant you need to clearly define your business’s objectives, priorities and desired results. Why? How else will you know what expertise is needed?

Then, during the interview process, ask focused questions to learn about the prospective consultant’s substance, character, and value:

Substance – the reason for consulting is to significantly improve performance.

1.      Does the consultant have the proven skills, background and expertise that you need?
2.      Does the consultant frame the project in understandable terms?
3.      Does the consultant have the experience to recognize and resolve unexpected problems?
4.      Does the consultant have broad industry knowledge and experience?
5.      Does the consultant have generally accepted credentials and certifications?
6.      Does the consultant have a long-term commitment to his/her profession?

Character – the process of consulting challenges organizations to rethink "why" and "how-to."

1.      Does the consultant convey trust and creditability?
2.      Does the consultant bring conflicts-of-interest to your project(s)?
3.      Does the consultant have the personality and enthusiasm to relate to your people?
4.      Do the consultant’s references that check-out?

Value – the product of a consultant is results, not reports.

1.      Does the consultant project the confidence and skills to help my business solve its problem(s)?
2.      Does the consultant guide organizations to measurably improve performance?
3.      Does the consultant clearly define results, timeframes and measurements in his/her proposal?
4.      Does the consultant tailor proposed solutions to our business? Our customers?
5.      Does the project costs and benefits analysis seem reasonable? Achievable?

Handling Internal Strife

Mon, 23 Jun 2008 15:42:24 -0700

A colleague takes credit for your idea. A manager sets an unrealistic deadline. A family member doesn’t perform the household chores agreed to. Your inability to stick with your diet and exercise program is frustrating you. Internal strife takes many forms. Whether with a co-worker, manager, loved one, or self, conflict takes a heavy toll on relationships and productivity.

The ability to deal well with conflict is a rare skill. Hardwired at birth for fight or flight, we default to aggressive or passive behaviors that produce only losers and no winners. Is there another way?

The single biggest thing that characterizes conflict is heightened emotions. How can you manage your own emotions in the heat of a conflict? Here’s 2 tips:

1. Find something to occupy your mind and distract you. Physical activity is always a good choice. Avoid activities that allow you to ruminate (i.e., driving or shopping) as you are unlikely to cool down and may get more worked up.

2. If you can’t physically leave the environment, consciously change your emotional state. Silently say the alphabet or your social security number backwards. It is difficult to remain emotional when your mind is challenged with such a complex task.

When a cooler head prevails, you are now ready to address the conflict. Here’s 4 tips:

1. Remember, people in conflicts get emotional. Though tempting, it is not productive to ignore emotions.

2. Challenge your assumptions. Recognize that your evaluation of the situation is probably only one of several interpretations.

3. Be tactfully honest about your own interests and ask the other party to be clear about their needs. You might find that the conflict is only a symptom of a deeper issue.

4. Ask for a “do over” if things get off to a bad start. According to research, 96% of communications that start badly, end badly.

Conflict, when done well, is an important and inevitable part of progress.

Tero International, Inc. is a corporate training and development leader, serving prestigious clients such as Wells Fargo, Pella Windows and Doors, Allied/Nationwide and Kemin Worldwide from its state-of-the-art training facility in Des Moines. Tero has developed distinctive courses in corporate etiquette and international protocol, presentation skills, negotiations and conflict resolution, leadership, time management, teambuilding and interviewing skills and is currently educating businesspeople in the United States, Canada, Asia, India, Mexico and Europe. Visit www.tero.com for more information.

Step up brand management in tough times, starting with your employees

Thu, 19 Jun 2008 07:39:39 -0700

Have you ever been in a group of people when someone asks for volunteers to step forward, and everybody but you steps backward? The same thing can happen with your marketing program during tough economic times. The result, however, is quite different: by staying aggressive, you can gain market share while others lose ground.

An often-cited study by McGraw-Hill Research analyzed 600 companies during and after the 1981-82 recession, and found B2B firms that maintained or increased their advertising expenditures during the recession averaged significantly higher sales growth during the recession and the following three years than those that eliminated or decreased advertising. By 1985, sales for the aggressive advertisers had risen 256 percent over those that slowed their advertising. Likewise, analysis of the 1990-91 recession shows businesses that marketed during the reception, solidified their customer base, took business away from less aggressive competitors, and positioned themselves for future growth during the recovery.

If you’re wondering how to maximize that investment, Harvard Business School Professor John Quelch offers eight specific tips for how market during a downturn. It’s a pretty good list, as long as the efforts are solidly grounded in brand. But it’s Mike Nale’s post about attracting and retaining employees during tough timesthat stands out as a critical strategy for surviving difficult economic times.

Mike’s plan of attack includes maintaining advertising efforts and a number of tactical efforts (four-day work weeks, preventative health programs, telecommuting, etc.) that may or may not be right for your brand, but his last item – market these benefits rigorously – fits all businesses trying to shore up the brand. Even in good times, branding to employees is usually overlooked. Ignoring the needs of employees during difficult financial times is the easiest way to add to your frustrations and hurt your chances for surviving the economic challenges. Recruiting new employees is a costly effort, and high turnover is a sure sign to prospective employees and customers that something’s wrong with the brand.

Your employees should be your FIRST audience. Employees:

are the easiest group to reach: they are a captive audience with established communications channels.
have the most to gain from a positive brand experience: they get paid well when the brand does well.
serve as the key touch points for your brand. They have to embrace your story, know it inside and out, if you expect them to share it with customers!

If your brand delivers a great employee experience, it is well on its way to delivering a great customer experience.

Recruiting can be a drain on a business at anytime, but during a downturn in the economy, you’ll have enough to worry about without having to also find new employees. Wouldn’t you rather spend that money grabbing market share from your competitors?

Flickr photo by PuppetMstr

Mark True is a brand warrior for REL Productions in West Des Moines. He helps REL clients discover their brand and use it to tell engaging stories that help build their business. Learn more at www.relonline.com.

How do you attract good people or How do you become the employer of choice?

Tue, 17 Jun 2008 10:09:51 -0700

For the past ten years, my company has had the opportunity to evaluate the performance of over ten thousand privately held businesses. The top performing companies that were/are the most effective in attracting and retaining quality people continually answer and re-answer five vital business questions.

1. What are the leaders of the company building? (This answer provides the vision of what your business will look like in 3, 5, or 20 years - Markets Served? Geographic Scope? Target Customers? Key Products and Services? Revenues? Company Size?)

2. Why does the business exist? (This mission statement will answer - What make the business unique? What is the business committed to providing their customers? What promises are being made to customers? What wants, needs, desires, pain, problems, and frustrations do the services solve?)

3. How will progress and success be measured? (This set of objectives will provide clear and balanced success measures - Customer Measures? Growth and Learning Measures? Process Improvement Measures? Financial Measures)

4. How will this business be built? (These strategies will address - What will the company do and not do? Customer Strategies? Growth and Learning Strategies? Process Improvement Strategies? Financial Strategies?)

5. What is the work to be done? (These action plans will - Describe the work. Provide a Date. Assign Responsibility. Relate to specific objectives and strategies. Limit to Business building or infrastructure projects. Balance with internal capacities.)

Top performing companies take these answers one critical step further. They connect these business plan answers to each leader, manager, and the employee team member. These answers connected and defused throughout the company refresh, revitalize, and transform companies into employers of choice in their communities.

Operational Efficiencies or Innovation? Don't level the playing field; change the rules!

Mon, 09 Jun 2008 10:08:35 -0700

Striving for efficiencies, or innovating? Is there really a choice?

Efficiencies are unimaginative and they don’t usually provide the quantum leaps necessary to ensure competitive advantage and sustainable profits. Focusing on efficiencies we often end up working harder not smarter.

Operational Innovation produces extraordinary results more quickly and with fewer resources. It’s beyond continuous improvement, and beyond operational excellence! Break the barriers of tradition, to discard “we’ve always done it this way,” and come up with unconventional ways to achieve superior service and cost control.

Innovate and change the rules in your market place! Don’t use efficiencies to level the playing field.

Innovation is an attitude and a management process that encourages people to discover entirely new (and often radical) ways of doing work and delivering service. It’s the foundation for obtaining amazing results.

We have in our files many examples of how we have coached mid-market companies to change the rules. Operational innovation influences all aspects of an enterprise – customers, suppliers, services, products, measurements, reward systems, job designs, organizational structures, and managerial roles.

Begin with the question: “Will our organization be better off by doing what others are doing (that’s being more efficient?), or by changing our industry’s rules?” Then:

Look for role models outside your industry,
Identify and defy constraining assumptions,
Make special cases into the norms,
Rethink critical dimensions of work, and
Make choices.

And, operational innovation compounds itself… innovation stimulates more innovation, and can position your company for even more customer satisfaction and performance gains. It’s both focused and disruptive! It requires systematic and systemic change.

Do it now! Concentrate your activities on the greatest opportunities to impact your strategic goals.

Tips on Hiring A Headhunter

Thu, 05 Jun 2008 06:12:23 -0700

Tips on Hiring a Headhunter You have decided that you need to obtain the services of an executive search professional (a “headhunter” in laymen’s terms). So where do you start? Here are some helpful hints. There are two basic types of search firms and most firms specialize in one or the other. 1. Contingency-fee firms are the most common type of search firm. These firms earn a placement fee only when a candidate that it has presented to a client is hired. Clients typically contact several contingency search firms when they have a job opening. The contingency firms then share resumes with the client and it is the client’s responsibility to administer the interview process and ultimately decide who to interview and hire. The search firm only earns a fee (generally a percentage of the new employee’s starting salary) if its candidate is hired. Contingency searches are most commonly utilized for lower to mid-level management types of positions. 2 Retained-fee firms work “exclusively” with a client company. Unlike a contingency firm, retained firms are paid a portion of a mutually agreed upon search fee at the start of the search process. The client company essentially buys the search firms’ time and in essence, accountability. The retained search firm earns the balance of its fee when a new employee starts for the client company. A retained search could be described as a “turnkey operation”, where the retained search firm coordinates the entire search process, providing only the number of qualified candidates that the client company desires. Retained searches are most commonly utilized for upper level management positions and in some cases, mid-level management positions. Again, these are basic descriptions of the two most common types of searches. “Hybrids” encompassing variations of these two basic types of searches abound.

Traits of a Successful Networker

Wed, 28 May 2008 22:16:26 -0700

You can make more friends in two months by becoming really interested in other people than you can in two years by trying to get other people interested in you. Which is just another way of saying that the way to make a friend is to be one. – Dale Carnegie

The essence of effective networking is a combination of preparation and awareness. Preparation includes knowing who you are...what your needs are and what you have to offer others. Awareness relates to the mutuality of networking...considering how you can be a valuable resource to other people as well as calling upon them for your benefit. Living as we do in a “what’s in it for me” world, this latter aspect is particularly important.

Attributes of a successful networker include:

1. Not picking up the phone without first thinking about the person you’re calling. Regardless of the reason for your call, what you ultimately want to convey is “I value your friendship/relationship and want to stay in touch”...not “what can you do for me”.

2. Identifying and cultivating affinity groups (i.e. breakfast clubs, associations, Rotary Clubs, etc.). Less obvious (but equally important)...be aware of potential contacts in every setting...including standing in line at the grocery store!

3. Organizational skills...in particular, follow-up systems (i.e. ticklers, diaries)...because remembering alone doesn’t work! Outstanding networkers are systematic about the process...including databases (think Outlook) of key information. Also make notes on the back of business cards...when/where you met and what you talked about.

4. Listening, listening, listening...and maintaining eye contact.

5. Good manners. In Nonstop Networking: How to Improve your Life, Luck and Career, Andrea Nierenberg reminds us that you shouldn’t ditch the person you’re talking to just because s/he doesn’t appear to be a useful contact.

Networking is simple...and powerful in its simplicity. It’s the best informal marketing you can do!

Outside Funding and Your Business

Tue, 27 May 2008 04:05:51 -0700

Entrepreneurs, who are able to successfully build and sell a business profitably, usually have some advice worth remembering. Here are some things many of them list. · They know what they don’t know. “Building a company is a very real test of how well we are able to recognize opportunity, and then resolve the issues that stand in the way of successful execution.” Before raising capital, ask yourself two things. First; “Do I fully understand the types of problems I face and, second, do I have relationships with other people who can help me with them?” Key Takeaway: A business plan is most effective when viewed as a concise list of primary problems – with proposed solutions. Your willingness to identify problems is more important than your desire to identify opportunity. Key Takeaway: Many business problems can be solved using relationships with those who have access to unique resources and skills. Capital is not always the solution. · They know who they aren’t. “Building a company requires me to become proficient in many areas beyond my known skills and aptitudes.” Before raising capital, ask this; “Relative to my capacity and capability, have I given enough thought to the direction, the speed and the dynamics of the industry I intend to pursue?” Key Takeaway: The pace of change in most marketplaces is accelerating. Having strong technical or intellectual skills is not enough. Dealing effectively with marketplace change requires strong leadership, team building and selling skills. People, not capital, make or break the success of a business. · They know what they have. “Building a company requires having a product(s) that can be sold for more than the price it costs to prepare – including the cost of people resources.” Before raising capital, ask this; “Can I clearly demonstrate to investors that a profitable product can be sold?” Key Takeaway: Those who have capital want facts and proof, not facts and figures.

How to be a GREAT Salesman!

Wed, 21 May 2008 22:00:01 -0700

I hate salesman.

Every time a prospect ever said to me while I was making a sales presentation (for whatever the product or service was at the time), “You’re a good/great salesman” I knew I’d blown the sale, because the common perception of a “good salesman” was, and will forever remain, that of someone who won’t take no for an answer and just keeps pushing, pushing and pushing until either the sale is made or the prospect walks away—usually in disgust.

Badgering people to buy what you have instead of helping them purchase what they need or want is not the way to make a living and sleep well at night. To me, a good salesman does not badger but, instead, communicates with prospects by asking them questions and listening for needs that can be satisfied by his or her product. A good salesman goes beyond identifying easy needs (It's cold and I need a coat...DUH) and is adept at asking open and closed questions that comfortably guide the prospect into identifying needs they may not have been aware of (I need an expensive leather coat.). But, and this part is muy importante', a good salesman backs off if no needs are identified because they do not push, badger, or otherwise browbeat the prospect into making a purchase. After the sale concludes, a good salesman is referred to by the prospect—now customer—as a good salesman who “helped them” get what they wanted.

Beyond that, a GREAT salesman is someone who communicates so well with the customer that they are referred to after the sale as a terrific person, and not just a good salesman who helped them make a purchase.

If you are in sales, then always aim to be referred to after the sale as a good/terrific person, and not a good/terrific salesman. You'll make more sales and a lot more money and sleep better at night.

PR: Fact or Fiction?

Mon, 19 May 2008 22:00:01 -0700

While it’s an acronym we hear every day, many people don’t realize that PR stands for public relations and, if applied correctly, it can turn a startup into the next big IPO. But don’t jump just yet into a PR initiative or ongoing program, since PR is not for the light hearted or impatient. For in the world of PR, 1 + 1 doesn’t always equal 2. PR is one of the very few integrated marketing communication programs that is hard to measure and provide accurate ROI numbers, simply because the results that PR programs secure are produced by third parties, like newspapers, magazines, news stations, industry tradeshows, etc. But don’t get me wrong, PR results are worth their weight in gold. A segment last year that appeared on Jan. 2, 2007 broadcast of the NBC TODAY Show was pitched by a PR firm. The segment focused on a company specialized to protect banks and consumers’ personal data. That very same 6 minute segment helped fetch that company a multi-million dollar contract with a national banking chain all because the wife of the CEO was watching the program one morning and told her husband about it later that day. In that instance, PR paid for itself several times over. However, PR doesn’t always secure that type of result and so it’s important to setup up measurable objectives (metrics) in order to ensure PR is not only consistent, but also helping contribute to the business objectives that organizations need assistance on from PR. Otherwise, PR will in fact be considered fiction! For more information about PR, contact David Splivalo at david@freestylepr.com or visit www.freestylepr.com.

Is Market Research Worth The Cost?

Wed, 14 May 2008 22:00:01 -0700

What do you think a market research consultant would say? You are thinking "of course!" In fact, I would say research is worth the cost IF DONE RIGHT. Let me describe a scenario that I often hear. Many people tell me they want a "down and dirty" research project. What this translates into is research done for very little money and usually needing to be done yesterday. While many people in business face these constraints, they are ingredients for disaster.

I usually respond to people that I can provide an inexpensive and quick study, but also explain that they will likely not be able to use it to solve their problem at hand. Inexpensive studies usually mean a small sample, leading to results not worth reporting. Good research comes down to using the right methodology to solve your problem. Then, yes, research is often worth its weight in gold. Let's face the facts - almost everything is becoming more expensive, including research. However, research is like insurance. It helps protect against some really costly mistakes. Research is then worth the cost!

Interviewing for Success

Mon, 12 May 2008 14:43:23 -0700

It is an interesting fact of life that everybody thinks they know how to interview a candidate. Well, take it from a pro – very few people actually know how to interview well. The Society for Human Resource Management shows that 76% of workers are currently looking for new employment. What may be surprising to you is that the companies that are affected by that 76% could have avoided it in the interview process.

The interview is a critical component of the hiring process. This is your chance to hear firsthand details about the candidate, gain insight into personality traits and get a general impression of overall intelligence and aptitude. Keep in mind that the interview won’t always reveal how someone will perform on the job. Most people are very familiar with the interview process – what to say, how to say it, and when to ask questions.

Remember - successful interviews don’t just happen. You’ll get the most from an interview by planning in advance. Below are seven steps to start that process:

Review the job description
Review all materials submitted by the candidate: resume, cover letter, application, etc.
Set interview goals and prioritize top qualities and skills
Write out interview questions (use behavioral interview questions when possible)
Set a rough time table for the interview
Create and use an interview evaluation form
Measure skill fit along with culture fit

Interviewing is a skill. Good interviewers are outgoing, objective, analytical and organized. They have strong communication skills, and know appropriate details about the company and the job opening (benefits, work hours, etc.). If you make sure you have the right people conducting interviews at your company, you just may keep from contributing to that 76% of employees looking for work.

My mother, the brand manager

Thu, 08 May 2008 06:58:14 -0700

Mother’s Day is just around the corner, so I want to honor moms everywhere for being good brand managers. They gave advice that benefits the well-branded organization today.

“If you’re friend jumped off a bridge would you jump off a bridge, too?” – Who hasn’t heard this one? It’s another way of saying, “Don’t follow the crowd,” “Don’t do it just because that’s the way it’s always been done.” Many businesses simply do what they do because everybody else does it that way. Brand is all about experience, and it takes courage and discipline to deliver a different experience, to stand out in a crowd and to go your own way.

“Watch your mouth!” – Using appropriate brand language is an easy way to set your business apart from competitors (think Starbucks’ tall, grande, etc.) and deliver an easily understood invitation to your customers and prospects. Are you telling the right story? Are you telling the story right?

“Just be yourself.” – It’s probably the best advice she could give a business owner or manager. Organizations that try to be something they aren’t are doomed to fail, in my opinion. They lose focus and chase after customers simply because they can. They try to be all things to all people and, before long, their brand gets watered down so that it doesn’t mean anything (think General Motors or Sears). An honest appraisal of your brand and a disciplined approach to managing that brand will help you stay relevant and moving forward.

Now, go pick up your room! Eat your vegetables! And get your brand in order!

Starting a Business? - Take aim before you pull the trigger!

Tue, 06 May 2008 08:28:19 -0700

Considering starting a business? Congratulations. Your first step better include planning. We’ve all started something without planning. If you’re going to start a business, don’t fire before you aim.

More than half of all new businesses fail because of poor business plans, unclear marketing objectives, or too little money. A great product does not ensure a viable business. Proper planning makes success more likely. Documenting the plan not only helps ensure commitment but is also necessary for financing. A good business plan requires:

· Understanding of your industry

· Clear assumptions and market share forecasts

· Pro-forma P&L forecast

Do your research on industry associations and publications. Talk with end users, dealers and competitors. And don’t forget the Internet. Industry knowledge helps you forecast market share opportunity. A pro-forma forecast tells you if your business idea makes sense. If it does…marketing plans and objectives are critical.

Marketing is not black magic; nor is it sales. It is the process of interesting potential customers in your product. Marketing is the developing of objectives, strategies, tactics, and performance measures for the “5 P’s of marketing”: people, place, product, price, and promotion. Marketing is your best road map to success.

Insufficient resources may render success impossible. Proper planning helps you understand what is needed to start your business and may prevent you from investing in a project that is doomed before it starts.

These concepts won’t guarantee success but not doing them may guarantee failure. Ready, Aim, Fire, and win.

PaceSetter Consulting, a Business Edge affiliate, specializes in helping small and mid-sized companies improve their leadership and marketing skills. Visit www.pacesetterllc.com for more information.

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The Value of People

Thu, 01 May 2008 06:14:33 -0700

Do you miss Canada? The answer is the same today as it was when I immigrated to the United States18 years ago. I miss the people. This is probably the same answer you provide when asked if you miss your hometown. Your previous job. Your college days.

Relationships matter. Whether at home, at work, or at play, it is the quality of our relationships that shapes our lives – for better or for worse. Relationships are also a practical matter in business. Harvard University, Carnegie Foundation and Stanford Research Institute showed that 85 percent of professional success is related to people skills.

Here are six tips to improve your relationships this week.

1. Look up from your computer when interacting with someone. Many of us are so preoccupied with email that we fail to honor the human interaction in front of us.

2. Turn your cell phone off when meeting or dining with someone.

3. Make eye contact and smile when you greet others.

4. Write five thank you notes in the next five days.

5. Call someone you haven’t spoken to for a long time.

6. Provide others with tips on how to effectively interact with you.

It is a basic law of nature that two moving bodies in contact with each other create friction. Therefore, whenever two or more people are in contact with each other, friction results. Respect and good etiquette are the lubricating oil that enables people to work together effectively (whether they like each other or not).

No matter what you possess in life, whether great wealth, social status, a powerful job, etc., you will never be truly successful unless you can get along with others, even when it is difficult to do so.

How is my Management Team performing?

Mon, 28 Apr 2008 11:27:10 -0700

Of all the questions that I hear from Senior Execs, this one is one of the most frequently asked.

“Performing” how? – Strategically, operationally, or personally?

I assume you mean “strategic performance,” since well executed strategic processes are most important.

But, why ask me? Ask your customers how your team is performing! They know.

Use this question. “Are we easy to do business with?”

Keep an open mind. Understand their answer. Don’t educate them. Listen.

Think through their responses. And, after you understand them, do something about it. There are a multitude of resources available to guide you how-to precisely meet their needs.

The best customers and questions get your people out of their comfort zones. Ask. Be persistent. If you’re not asking your customers, rest assured that your competitors are asking them. Your first indication may be a lost customer.

“How is my Management Team performing?” you ask.

If they’re asking and understanding your customers’ precise needs and what actions would be a significant leap for your company – really listening and understanding with the intent to do something different – your team is beginning to get it!

Connectivity 101 - Why and How

Wed, 23 Apr 2008 22:00:01 -0700

If you want one year of prosperity, grow grain.

If you want ten years of prosperity, grow trees.

If you want one hundred years of prosperity, grow people.

This bit of ancient wisdom has as much bearing on the subject of networking in today’s relationship economy as it ever did in the time of Confucius. The unifying characteristic of all successful people is their ability to foster and nurture a network of contacts. Yet the concept of ‘networking’ is frequently misunderstood as a one-dimensional, self-serving tool instead of as the richly multi-faceted, organic “webbing” process that it is.

Nothing could be simpler…or of greater intrinsic value…than making connections with people you genuinely like and respect. We all do it every day. The difference in the world of business is the subtle awareness of the potential for the relationship to be of mutual value at some point in the future. Note the word “mutual”…your network is only as good as the knowledge and information you can bring to it, not just the value you can take from it.

Every small- and medium-sized business, in particular, should factor networking into their marketing strategy…essentially building a reservoir of informal resources they might not be able to afford to hire. (Think “word of mouth” marketing.) This includes creating a systematic process (Outlook, Access, etc.) for maintaining and updating information about networking contacts. For example, if you take the time to learn (and make note of) meaningful personal details about prospective clients, you’ll never make a cold call again!

The broader and deeper your contact list, the more likely that you’ll be able to respond to any eventuality. You don’t have to know everything as long as you know (and can reach out to) people who know things you don’t! Try to end every networking conversation with this key question – “Who else do you think I should be talking to…?”

Basic Entrepreneurialism

Tue, 22 Apr 2008 04:39:54 -0700

Keys to Successful Entrepreneurialism

Tag: Basic Entrepreneurialism

As consultants, we are privileged to have an inside look at a great number of product ideas, business write-ups, and early stage companies. We also see firsthand, the inner workings of older companies. We see them thriving and we see them failing. We see them treading water. In business, it’s important to identify patterns in our decision making - even those that point to bad decisions. In this, the Register’s business blog site, we want to reduce these observations to a series of specific messages or takeaways. More importantly, we hope that any usefulness you extract will offset the inherently self-serving nature of postings by the regulars. However, I must be honest with you. Because writing is not a thing I pursue as a hobby, I admit to my real agenda: “The success of my shareholder-based professional practice is dependent upon having access to good companies run by entrepreneurs who recognize business patterns.”

Entrepreneurialism is really little more than the energetic identification of problems and opportunity – minimizing the time and resources invested in solving the problems. It also requires making the maximum utilization of the valuable resources devoted to opportunity. An entrepreneurial culture might be found in a person, in a product team or in an entire business full of people. From a leadership standpoint, entrepreneurialism is the sustainable deployment of people and resources on the inside and on the outside.

Successful organizations are the ones able to attract the right leadership, the best people, and sufficient monetary resources to meet the objectives of the stakeholders – on a long term basis. Few organizations can be entrepreneurially successful without clear thinking by leadership. So you can see that when described in this way, the importance of entrepreneurial leadership reaches far beyond the private sector. Balanced, entrepreneurial thinking is beneficial to the heads of academic, non-profit, social and public sector groups. All durable organizations must knowingly address issues and opportunities while constrained by scarce talent (including leadership) and money.

Business enterprises, along with other forms of organization, must also grow in order to succeed. Growth creates organizational value. Balanced growth causes exceptional value because the availability of solid people and reasonably priced money increase. Balanced growth is usually direct evidence of entrepreneurial leadership.

Successful entrepreneurs must have the ability to assess reward in relationship to risk. The entrepreneurs I have come to appreciate the most are the ones who understand and appreciate the risk/reward relationships in decision making. They see their choices in the light of those who depend upon them (and ‘invest’ in them) to be wise about their decisions.

Finally, just for fun, let’s all watch and see if the tenants of successful entrepreneurship can be applied to the growth of this, the Register’s business blog.

Stop Whining and Start Aligning Your Team

Thu, 17 Apr 2008 09:20:40 -0700

Iowa business is complacent about aligning their company, leaders, managers, and employees to the market place. What is even worse is that they are not even measuring their increasing alignment gap. Financial measures are lag indicators. If you are only looking at financials, you will constantly find yourself reacting and behind.In a longitudinal study that has been conducted over the past 10 years by Escape Velocity Strategies, companies with aligned senior managers out performed comparable companies by over 200%.If you are serious about moving from Good To Great, your company’s leaders and managers need to compare your company’s practices against the standards set by the best run companies in the world. Stop Whining - This can be done in less than a week. Then achieve consensus or alignment on the top five areas that are impeding performance.Next - your leadership team needs to achieve agreement, consensus, and alignment on five key questions:

1. What are we as leaders and managers building?

2. Why does the company exist?

3. What results will the company, the leaders, and the managers measure?

4. How will we build this business?

5. What is the work to be done be the leaders, managers, and employees?

These questions are answered and reviewed by top performing companies on a daily basis. Additionally, they are updated on at least a quarterly basis.Team alignment – let’s quit whining and start winning. Start by asking your leaders to assess their company on their business practices and compare them to top performing companies in the world. If Iowa business leaders don’t, they will continue to find themselves on the outside looking in at top performers.

A NEW BIZ BLOG - from the Register and Business Edge

Tue, 15 Apr 2008 05:31:14 -0700

You’re here for biz advice? Or to get an edge on your competitors? You’ve come to the right place!

The Des Moines Register is enhancing its Website by featuring local business experts. "Business Edge's expertise in a range of topics will help us connect readers and promote conversation among entrepreneurs, executives and others," said Lynn Hicks, executive business editor.

I’m Barry Pace…on behalf of the Register and Business Edge (BE) I am delighted to help launch this exciting, new business blog series. Our mission? Deliver relevant, educational and interactive topics, advice and connectivity for central Iowa businesses.

We start today. We’ll post every Tuesday and Thursday morning. BE members manage the blog but we’ve partnered with a number of local experts. We’ll be discussing meaningful business topics: leadership, consulting, sales, business valuation, connectivity, and more. A listing of key contributors and initial topics follows below. Our group will interact aggressively and create valuable dialogue around each posting. Look for Jeff Bradford from Escape Velocity Strategies on Thursday.

So grab a coffee. Link to the Register and get involved in Des Moines’ newest business resource. Jump right into the dialogue. Let us know if you agree…or if we’re off the mark. Tell us what you think. And share the topics you’d like us to discuss further. Keep those comments rolling in!

PaceSetter Consulting, llc is a BE affiliate. BE consists of Tom Steen, Terry Myers and Barry Pace. For more information contact Barry Pace at (515) 633-7758 or bpace@pacesetterllc.com.

Authors: Terry Myers, Terry Myers LLC; Tom Steen, Transition Capital Management; Debra Salowitz, Strategic Relocation Solutions; Jeff Bradford, Escape Velocity Strategies; Kevin Drury, Hedlin Ag; Nick Reddin, Manpower; David Splivado, Free Style PR; Mark True, REL Productions; Mark Kladivo, pcCentral; Dale Engelken, Genesis Marketing and Research; Kim Robinson, SMMarT Consulting Group; Matt Owen, US Rodeo Supply…and more to be added soon.

Initial Topics: Is your team in alignment; Sustainable entrepreneurialism; Connectivity 101; Management team performance; People, your most valuable asset; Want to start a business?; Branding 101; Interviewing 101; Why market research?; PR, fact or fiction; Sky rocket sales advice; Capital formation; Attributes of successful networkers…and many more.