Can a Corporate Culture Change?

This business update I want to respond to a few questions submitted on our blog. Both questions have to do with corporate culture. The questions posed were:

1. Why is the corporate culture so important?2. Can the culture be changed or does it simply evolve of its own volition?While there are some slight differences in definitions of corporate culture, most experts agree that it is the shared “taken-for-granted” assumptions, beliefs, values, expectations and rules that members of a work team or organization hold. This is essentially the guiding light for team interaction, expectations and decision making. The culture is revealed by studying the relationships of the members.Changing the corporate culture must emanate from the top. The leadership of an organization such as the CEO and the senior management team is the single most critical success factor in a culture change effort. Today corporate leaders have to invest significant amounts of time and energy into a culture change effort and they must personally live, and model the new cultural ethos. Members of the team CAN NOT change without the leadership first changing. Let me say that again: members of the team CAN NOT change without the leadership first changing. This is absolutely essential. In fact when leaders DO choose to “trade-up” their values and belief systems, change often magically occurs.But in order for the cultural change to take hold within the organization, the members must be re-educated on what is important to the future of the company and how to make decisions that are consistent with that purpose. Therefore the change effort must be accompanied by clear vision, mission and value statements in providing direction and behavioral guidelines for the new culture. Again these must go beyond words cast into a plaque that is hung on a wall. It must be evidenced by daily actions which fall in line with the values espoused.While working with companies to assist them in creating market growth we often find that the core issues of the company’s value systems must be addressed. In these cases we will often bring in our associates from Fifth Wave Leadership. They have worked with organizations large and small to affect cultural change quickly and effectively. In fact the CEO of this organization, Morrie Shechtman is someone who often works with the leadership of our clients assisting them in evaluating and implementing change from the top. Morrie has graciously allowed us to offer to those in our network a greatly reduced rate in working with CEOs and their team. If this is something that interests you please contact me and I will arrange to get you in touch with Morrie directly.Again, the corporate culture is critical to the growth and continued health of your organization. I urge you to invest your time and resources in discovering how you might create change and ensure growth and leadership in your industry.

Build A Healthy Corporate Culture

You’ve heard of the book, “Death of a Salesman.” This article is about the death of a family. What does that have to do with running a small business, you ask? I’ll get there in a moment. First, let me ask you a question: Is your business like a family?

I hear this all the time. “You know Mark our business is different, its just like a family.” I know business owners and managers say this to communicate something positive about their company’s culture. I think this is great! But I always smile when I hear this. I often want to ask, “Oh yea, what kind of family is it like?” But I don’t, because I’m practicing my Dale Carnegie principal of “letting the other person save face.” I smile because the relationships within a company CAN be just as screwed-up as the relationships within a family.For example, consider how favoritism can cripple the relationships within a family. It happens, you know. Its happening right now. The results are far reaching and dramatic when one sibling is treated differently from another. The favored sibling feels that they are not as obligated to perform at a specific level in order to gain a specific reward. Since they are favored they know from experience that they will not be held as accountable as the next sibling. The rules can be flexed for them. Everyone in the family knows this. Consequently there is resentment, anger, hostility and conflict. The unfavored sibling is no longer motivated to perform. No matter what they do, they can not live up to the admiration of the parent. This causes frustration and embarrassment. It can even result in vengeance and criminal activity in order to “get even.” The “I’ll show them” attitude.What makes favoritism so insidious is that it can be exercised in a very subtle manner. It may manifest itself in the WAY things are communicated. For example, imagine a circumstance where two siblings alternate weeks taking out the trash. When the unfavored sibling fails to take out the trash, the consequence may be for the parent to say, “I can’t even depend on you to take out the trash.” When the favored sibling fails to take out the trash, the consequence may be for the parent to say, “just make sure you get it done next week.” The favored sibling gets another chance, while the unfavored sibling’s wholesale capabilities have been diminished. This is rarely done in a purposeful way or even through subterfuge. It happens on a subconscious level. Before we know it the words are out and the damage is done.This works precisely the same way for a business organization. As owners and managers our goal is to induce greater teamwork, a more harmonious workplace and improved productivity. One of the most important factors in building teamwork is the leaders ability to implement what I call “equitable response.” Equitable response is the leaders ability to react to every team member in the same manner in any specified circumstance. In other words, their ability to treat people relatively the same under any given set of circumstances. For example, don’t allow one employee to arrive at work late because she lives further away or because she has to pick up the kids at school. Credibility is lost when owners and managers are inconsistent in rewards and punishments.Here’s what I counsel my clients to do:

  1. Consistently reward positive behavior and punish negative behavior. CONSISTENTLY!
  2. Don’t allow yourself to be manipulated by employees.
  3. Don’t allow your personal opinions to influence the way you respond to team members. The fact that you may like or dislike them should NOT play a role in the reward/punishment process.
  4. Let the time you spend with team members become part of the reward. Conversely you should limit the time spent with those team members that fail to maintain performance. Tell them what is expected in no uncertain terms. No idle chit-chat.
  5. Model competent behavior. They will do as you do, NOT as you say.
  6. Provide consistent feedback and predictable consequences.
  7. Set realistic and clear expectations.

In my consulting practice, I rarely see these things consistently being done in small companies. Often times owners and managers have a whole set of rules which apply to different people in the organization at different times. This causes confusion, stifles communication, hinders teamwork and creates fear. It usually ends up with excessive turnover and even anarchy. Sadly the result is the death of a company family.Does this mean we shouldn’t attempt to replicate the family atmosphere in our companies? Certainly not! We should replicate the model of the healthy family where everyone knows what is expected of them and everyone is rewarded and punished with equanimity.I hope this helps you to learn some new ways to create a healthy corporate culture in your organization. If you are wondering what else you can do to implement a revolutionary change in your business, check out our web site at www.marketingquestions.com.

Ain’t No Peddler!

I think we are all proud of our fathers at some point in our lives. Especially when you’re hanging out with your third grade pals comparing notes on what kind of job your Dad has.

I’ll never forget asking my father what kind of work he did when I was just a tyke. I knew he went to work everyday but I didn’t have a clue (or a concern for that matter) what in the heck he did there. Not at least until my friends started telling me what their Dads did. 

I found out that my friend Nick’s Dad drove a truck. Pretty cool job I thought. My friend Ricky’s Dad was a cop. Even cooler! You can’t imagine the disappointment when I asked my father what he did for a living. 

Dear old Dad casually told me, “I’M A PEDDLER”.Now I had visions of my Dad walking down the street with a pushcart yelling: “Get your rags. Fresh rags. Deo Rags here.”

How could this be? What would I say to my friends? I wanted to hide in the closet and never come out. (People wonder why I have “issues” even today.)

Luckily, Dad noticed my ashen face, slackened jaw, and watery eyes as a sure signs that I was on the verge of breaking into tears. He sat me down and actually explained what it was that he peddled.

You see it turned out that my Dad was one of the founders of what turned out to be a $200 million conglomerate! Yet he saw himself as a peddler.

I’ll never forget what he told me on that day too many years ago. He said, “Mark, no matter what you do in life you will need to get people behind you. A peddler is a very noble thing. They are anyone who peddles their ideas. They are people with vision and passion.” That message was never far from my mind as I went through life. I have found that regardless of the role that I am playing, peddling or “selling skills” are critical to success. 

I have been fortunate to have the greatest minds in management and marketing as guests on my radio show. People like Zig Ziglar, Tom Hopkins, Jay Abraham, Jack Canfield, and Seth Godin. All of these gurus agree that selling skills are not just for salespeople.

Tom Peters said, “to put it bluntly: If you can’t sell, you’re dead. Yes, selling is essential – whether it’s your newest consumer product or an idea to increase internal productivity.”

Phil Guarascio, GM’s vice-president for advertising and corporate marketing said, “I sell ideas and visions. The challenge is to help people see things that they may not be able to see for themselves. Now, I’m not a visionary from the blinding-flash-of-light school. Instead, I base my ideas on intuition, on facts, and on specific opportunities. The greatest resistance that I encounter from people whom I’m trying to sell to is grounded in discomfort — which really comes from a lack of understanding. So a great salesperson, in effect, knows how to sell understanding.”

David M. Ogilvy, founder, Ogilvy & Mather advertising said, “In the modern world of business it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them using good salesmanship.”

Regardless of the type of work that you do: management, administrative, clerical, production, quality control, finance, you name it; the most important thing is winning people to your way of thinking. I want to encourage you to find a way to sharpen your selling skills. Get tapes or CDs, attend a class or seminar, read books or magazines on the subject. 

I would also like to invite anyone reading this to attend my upcoming Dale Carnegie Sales Advantage Class in Long Beach, California every Monday night. This class will give you an advantage in your career regardless of whether you are in sales or not. To enroll please contact Dale Carnegie at 562-427-1040.

And remember, if you ARE a salesperson, you’re in good company. As my Dad said, “there ain’t nothing wrong with being a peddler!”

Apple Does A Good Job of Exclusive Positioning & “Unique Selling Proposition”. New iPhone Ad Targets Small Business.

Apple is focusing its new iPhone advertisements on Small Businesses. Since the Apple App Store opened 10 months ago for the iPhone and iPod Touch, it is now approaching its 1 billionth download. Consumer demand caused about 110 million “apps” to be downloaded each month.

Apple has done a good job in their key changes to the iPhone’s functionality from a business standpoint (I.E. – push email, calendar & contacts capabilities, and compatibility with Microsoft Exchange). The new changes include the the ability to: process credit-card transactions using Inner Fence’s Credit Card Terminal application, print a shipping label for a package using the Print & Share app,and check on the status of delivery with the FedEx Mobile app.

Granted, Apple is catering to the demand of more “apps” to download, however Apple does a good job of using a “Unique Selling Proposition” to target Small Business. When thinking about your business, ask yourself:

I. What sets you apart from the crowd?

II. What do you do that no one else does?

Apple has positioned themselves to be the exclusive solution for Small Businesses to do business faster using technology. Blackberry started it’s version of the iPhone App Store called the Blackberry App World. App world has less than 1,000 applications compared with the 31,000 available for the iPhone.

To read this article click here

Outlook Better. Missouri aproves $200 million for Small Business. $25K for Business Owners.

Missouri Development Finance Board approved the creation of a $2 million pool of state funds. The state money will provide 80 low interest or no interest loans of $25,000 for small business owners. The funding comes from the same 4% collected on MDFB tax credits.

If you are a small business owner, I recommend implementing time everyday to gaining knowledge about the funds and resources available to you. Contact your regional SBA office. Start asking questions. Take the initiative.

To read article, click here

Who Wants What You Got?

I am honored to receive several emails every week from entrepreneurs looking for advice. Last week I received several from those looking to get their new products to market. What I found to be most interesting about all of these emails was the fact that while their products were all in and of themselves interesting and even technically brilliant, each of these entrepreneurs (I believe, far smarter than myself) seemed to be lost when it came to answering the question, “who could really benefit most from this innovation?”

Cart Before the Horse It really is a “cart before the horse” conundrum. Should you spend more time developing a great product and figure out a way to attract people or should you look to the marketplace for specific needs and develop your product accordingly?Well both, of course. But I suppose it could be argued that you should spend even more time trying to understand the market for your product than actually designing it in the first place. If there is no market (or the market is too small) it is irrelevant whether the product works or not.A Better Mousetrap The deadly combination of unbridled enthusiasm for technical innovation and inattention to market issues is so frequently a cause of product failure that some industry watchers have come up with an expression for the result: the better mousetrap that no one wanted.The Value of Research There is no question that the ability to do a proper market assessment separates the better performers from the poorer ones. Market research is the ongoing process of analyzing customer needs, market size and composition, the competitive environment and industry trends. The goal is to thoroughly understand the marketplace to reduce risk and make better decisions. Market research can help reveal threats and uncover opportunities. A thorough market analysis can help companies avoid common pitfalls such as overestimating the number of potential customers, underestimating the strength of competitors, or pricing a product at a point where customers refuse to buy it.Where to Start It is important that entrepreneurs start looking at market issues early on in the product development process to focus scarce development dollars effectively. Why waste money and time developing product features that customers aren’t willing to pay for or perfecting a product that isn’t sufficiently differentiated from competitors’ offerings? At an even more fundamental level, why develop a product at all if the market isn’t big enough?Necessary for Funding What potential funders are looking for is not so much a great product or service but rather evidence that a product addresses a reasonably large and growing market. They also want confirmation that entrepreneurs have a solid understanding of the complexities of their intended markets and can answer questions like: “which competitors pose the greatest threat,” or, “which customer segments hold the greatest promise?”Competitive Intelligence It is critical that we take the time to fully understand our competition. Sun Tzu, the ancient Chinese warrior said, “Know thine enemy.” In order to cost effectively compete in the marketplace you must “know your competition.” I have devised a very simple way for you to gather intelligence about competitors. It is completely ethical and devastatingly effective.Become Their Customer The best way to understand you competition is to “become their customers,” at least for a bit. Few entrepreneurs or small business professionals do this, yet it is probably the most effective way to understand what your competition is all about. Call, visit and research on them. Ask them plenty of questions. Don’t tell them you are a competitor but truly become a potential client for a moment and try to understand what makes them tick. I am constantly amazed at the number of organizations who launching new products that fail to do this. As a consultant I perform this task for all of my client’s with regard to their competitors. And as I say, it works magnificently.What Makes Them Different What makes this so effective is a tool that have have devised to systematically evaluate their product or service. I call the “Competitive Landscape Profile” (or the CLP). The CLP allows us to plot the proficiency of each of our competitors on a chart that gives us a very clear picture of who they are, what they do, where they fit and how they are different.The C.L.P. The chart includes their position in the market, client strategy, distribution profile, pricing strategy, customer service rating, product differentiation, branding strategy, ect. The CLP is a graphical chart that allows everyone to see precisely how each competitor fits into the marketplace. I addition I also recommend that marketers obtain the following information from their competitors in order to fully complete the CLP:  Archive competitors ads. Take a month or two and track where and when they advertise as well as what they say in their advertising. Price list and shipping and return policies. Brochure and promotional material like POP, mailers, packaging, etc.  Analyze their web presence. Commit their names to memory. Research the names of their best clients.In short it is through fully understanding your competition and the market that you plan to operate in which will dictate the ultimate success of your new venture. So I encourage all of you entrepreneurs to take some time to fully understand “who wants what you got” BEFORE you begin developing you even begin developing your product or service.I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mdeo@sbanetwork.org.Mark Deo

The Death of Corporate America

Remember the old days?

Our fathers and grandfathers worked for the same company for 20, 30 or even 40 years. Generations of sons and daughters toiling under the protective arms of the “COMPANY.” 

Today it’s more likely that we will outlive any organization that we work for. 

It has snuck up on us. We turned our head and all of a sudden Corporate America is dying. 

It is the result of a powerful force that has emerged in our society. Not a company or a new technology or even a new industry. It is the evolution of workers themselves. For the first time in history, there are more workers operating as “free agents” than there are people working for Corporate America. Fortune 500 companies no longer form the bedrock of our workforce. 

How Has This Happened?This evolution has been rapid and decisive. It has occurred for a number of reasons. First, the social contract of job security has long been broken. Jobs are no longer sacrosanct at Fortune 500 companies. One day these firms are in expansion mode and the next they’re “laying off” 35,000 workers. Second, e-commerce and automation technologies have leveled the playing field so that smaller companies with less people could provide the same benefits as larger multi-national firms. This resulted in corporate re-structuring and downsizing. And finally the loyalty/security pact of the previous five decades has been broken. This was evidenced in the mid nineties when IBM broke it’s “full employment policy” by reducing it’s payroll by a whopping 120,000 employees. In this century, being loyal to a company does not guarantee job security.

What Does The Future Hold?Today the largest private employer in America is not Ford, General Motors, or even Microsoft. It’s Milwaukee’s Manpower Inc., a temporary help agency with over 1,100 office throughout the United States employing over a million workers. Temporary staffing has grown from a $1 billion industry to more than $80 billion while employing over ten million temps nationwide. It is estimated that there are over 33 million solo, self-employed workers. And there is an emergence of a new category called micro businesses. These are small businesses employing just 2 or 3 people to drive particular initiatives on either a full or part time basis. In fact, more than half of today’s companies have fewer than 5 employees! Don’t look to our government to reconcile this societal evolution. They’re a full century behind. The Bureau of Labor and Statistics still divides all workers into two categories: farm and “non-farm.” Figure that out. 

What Free Agents LoveThe work ethic of free agent entrepreneurs is considerably different than corporate employees. These entrepreneurs crave, freedom, control, security, and loyalty. If you think about it, these are the very job benefits lacking in Corporate America. Today free agents come in a variety of forms, entrepreneurs, independent contractors, consultants, advisors, 1099ers, hired guns, nomads, etc. But their focus is on producing a measurable result for an organization rather than performing a specific role within it. Free agents tend to provide a higher return on investment for organizations because of their accountability to themselves rather than to a hierarchy.

FreedomFreedom is the ability to exercise one’s own will. Within the corporate cocoon freedom takes on the meaning that the company as a whole projects. Some companies smother their employees in affection others try to purchase individual freedom with stock options and incentives. Free agents can choose to follow their own work ethic. This extends not only to what they believe, what they do and where they do it but also WHEN they do it. Free agents have succeeded in melding work time with home time. Gone is the Monday through Friday 9am to 5pm ritual. Today they balance a full time home life with a full time work life.

ControlLife in Corporate America is about lining up behind the company culture and philosophy. Free agents can control their own destiny. Consequently they develop skills in areas which they desire to excel. They build relationships with those that match their business culture and paradigm. They focus on selling insight, talent, expertise, ideas, creativity and solutions rather than just performing tasks. They realize that what matters in the course of a day is what is accomplished not how many hours are worked.

SecurityThe last decade has been one of prosperity. Members of Corporate America had job security but that prospect is diminishing. While a high standard of living has reached deep into middle class many members of Corporate America do not feel that their lives have improved. This dichotomy has altered our expectations of comfort and prosperity. People are looking forward to more than just a comfortable retirement after four or five decades of “work.” People are realizing that it’s not good enough to work to make money and survive. They desire to work to make meaning for themselves and their families. 

LoyaltyWith free agents loyalty does not run up and down an organizational chart. It runs from side-to-side in allegiance to clients, colleagues, teams, projects, vendors and industries. In this sense free agents are far more loyal than company men and women. Companies can also afford to be more loyal to free agents because they lack the overhead that employees bring. Both benefit from the free agent structure because whereas vertical loyalty within an organization depended on one connection (boss and employee) this new horizontal loyalty depends on many connections.

How It Impacts YOU!In the end I believe that we will see the free agent philosophy infiltrate every industry, profession and area of expertise. Those that are most prepared for this transition will benefit the greatest. Think about your own business. How could you use the “free agent mentality” to bring efficiencies to your business? If you’re an employer, how could you increase productivity and reduce overhead by employing free agents? If you’re an employee, how could you deliver greater production to your employer and increase your earning capacity by utilizing the above free agent infrastructure?

STORYTELLING

Let me ask you a question. Where do you find inspiration from? Movies, music, books, magazines, seminars, friends, family, co-workers? – Maybe from all of those places.

Let’s face it inspiration comes from stories that we hear from other people tell. How they beat the odds, achieved growth, or found a better way, it’s all in the story.You know storytelling has been around for hundreds of years. From the beginning of time, storytelling has been the means by which cultures and societies have preserved and celebrated their memories, passed on their values and belief systems, entertained, instructed and reported. Long before there were written records, storytellers taught through the oral tradition. It was true in the bush, it’s true in the boardroom and it’s true everywhere in between.In fact I think true leadership is the effective communication of the story. Our American culture seems to underestimate the power of storytelling. But think about how powerful a story can be when you’re in front of a client. Tom Peters says, stories are the red meat that meets our reasoning process. Stories give us permission to act, they are photographs of who we aspire to be, and they cause the most emotional responses. Stories are how we connect with people.Remember the movie, Amistad by Steven Spielberg. In the movie there was a trial taking place over the status of rebellious slaves. Representing the slaves was a black abolitionist lawyer played by Morgan Freeman. However Morgan was being advised by Anthony Hopkins who was playing former U.S. president John Quincy Adams. Freeman went to Hopkins asking for advice on how to prepare this very critical case in defending the slaves. Hopkins turned to Freeman and said, “early in my career as an attorney, I found out that he who has the best story wins. What’s your story?”Here are some tips on how to move people through storytelling:1. Don’t worry about your communication ability. We are all storytellers. It’s the way that humans communicate, store and pass on information. Each of us tells stories every day: about the horrible traffic jam on the way home; about the way the kids acted at the grocery last night; about the great movie we saw over the weekend.2. It is not necessary to tell them at the level of a professional. In fact it’s far more powerful to relate your story in a simple, down-to-earth manner.3. Don’t worry about memorizing a story. Storytelling isn’t about exact words. It’s about images, and emotions, and sharing those with your listeners. The trick to telling a story isn’t knowing every word that is written on the page. Rather, it is the feelings of those in the story. Why they do what they do, and sharing that knowledge and understanding with your listeners.4. And where should the content from these stories come from. Everywhere! Your experiences and relationships. They can be in the form of case studies, events that might have occurred with clients, employees, management, vendors or even the guy or gal on the street.5. For more information about how to effectively use storytelling read one of our previous Business Updates, “What’s Your Story” by going to http://www.sbanetwork.org/articles_view.asp?id=135So what’s your story? C’mon get involved, inspire your coworkers. Storytelling is a fun way to educate, influence and inspire one another. It’s an opportunity for collaboration, and a great way to focus on professional development in a wholly interactive way.Clothing truth in the form of a story is a powerful way to get people to open their minds to the truth you carry. As someone once told me, “the naked truth sometimes must be dressed up to be seen.” New ideas need room to grow. Tell it like it is. But consider telling it in the form of a story.I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.comMark Deo

Starting Your Business

Not a week goes by that I don’t get an e-mail from a budding entrepreneur asking advice in starting a new business. So I thought it was time focus on some of the key elements that make a new business venture a success. By the way, if you currently have a business don’t tune out because in the economic downturn such as we are experiencing today, many of these foundational basics can help to strengthen your business as well.

Too often people start a business with a good idea or product that they feel would be successful in the market place. A few succeed, but many invest so much time, effort and money in their product that they forget about the basics.Consequently, a good product or service sits unused because insufficient planning has occurred prior to its launch. Here are seven areas that all new companies should consider before they start offering their products or services.1) What are the needs of your customers, and how many customers do you expect to have?Carefully consider your potential customers. In relation to the product or service that you are about to offer, what are the needs of your potential customers. For instance, when someone buys a shovel, his or her need is for a hole or ditch. The shovel is just the implement required to fulfill the need.Try to get an idea of how many customers there are in the region that you expect to service. Try to find out as much as you can about them; where do they live; how old are they; what are their interests, what price are they prepared to pay for your product.2) How will your product satisfy the need of your customers and how many other companies are offering the same product or service?Having determined the need of the customer, and the size of your potential market, it is now time to look at your own product and others like it in the market.It is important for you to consider what will be your ‘unique selling proposition’ or in simple terms the message that you will communicate to your customers.How many other products are already in the market? If you are competing with several other similar products then it will increase the amount of effort required for you to enter the market effectively. Effort can also mean financial investment. It is important to remember that it will take time for you to capture a share of the market – later in this article we will look at how to maintain it.From the answers to the first two questions you should be able to predict your market size. From this you should also be able to determine the number of sales that you will need (market share) in order for you to operate profitably. In order to determine this you will need to know your margins. Be realistic about your projected turnover. Often businesses think that they can sell a thousand units a month only to find they sell one hundred initially and only climb to a thousand after a year of trading.3) What is the message that you want to tell your customer?What makes you different from your competitors? Have a look at all the advertising and promotional material of your competitors and see what they are saying about themselves. What will make you different from them? Is it the product, location, customer service, price or some other aspect that will ensure you stand head and shoulders above the rest?Your unique selling point will be a statement that you can use in all your marketing material. It should motivate your customer to buy from you rather than your competitor. It may be that you have more than one message that you want to tell your customers.4) How are you going to deliver this message to the potential customer and how much will this cost?Having determined the who, where and what (who your customer’s are, where they are and what you are going to tell them) you are now in a position to decide how you are going to deliver the message. There are many choices including direct marketing, advertising, public relations, seminars, newsletters, etc.There is no simple rule to help you decide which of the above to choose. The aim is to choose the right method that will generate the lowest cost per sale. For instance, if you spend $1,000 on an ad and got four responses but only one sale then the cost of that sale is $1,000. If you spend $4000 on a direct mail campaign which generated 40 responses and results in ten sales then it is a better alternative. It’s all about value!However, if you had placed a second or third advertisement, then your awareness may have gone up and by the forth ad you may have generated 40 responses and 10 sales. The only advice is to choose a strategy and stick to it. Don’t spend little amounts in lots of different places. When choosing the right strategy, it is important to reach as many people as possible, but you must reach them in the right place at the right time. Editorial coverage can often be a very cost-effective method. A single news release can be sent to many publications.5) What process do you have in place to take care of your customers when they come to purchase your product and after they have brought?Think of all the money you have spent to get a potential customer to walk through the front door. Too often, the customer’s experience during their first contact is not managed. They are left waiting, a quote is promised but not delivered on time, a promised meeting is not kept, or the receptionist just isn’t friendly. The customer leaves, not wanting to return. Not only have you lost an immediate sale but you have also lost several future sales and probably a few referrals as well.Managing the experience of a customer is crucial, and if you can’t do this properly then the success of your business will always be an up-hill battle.6) Keep a database so you can get to know you customerAn effective database is one of the most powerful tools that any business can possess. This configuration of names and details is a wealth of information that can be used to generate many additional sales. There are many very effective software programs available today such as ACT!, Goldmine, Outlook, and others.The more you know about your customer the better your relationship with them can be. The better the relationship, the more likely you are to get repeat sales and referrals.7) Finally, consolidate your marketing, production and service activities into a business plan.This plan should reflect the realistic prospects for the business. It should be broken down into quarters (three month periods) and outline the activities that will take place, the anticipated resources required and the associated costs. Most experts recommend that you have funding for the activities for the first year. This means having some of your own financial resources and possibly a loan. There are some fantastic loan opportunities available through the SBA and other governmental agencies.

Standard of Care

For several years many small business owners have asked me the same questions:

“How can I grow my business without significant capital investment?”

“What can I do to stabilize the trends in my business?”

“How can I out-market my competition in the midst of price erosion?”

“How can I maintain a consistent level of revenue to ensure a consistent level of profit?”

“Why are my people loyal one day and turncoat the next?”

“What can I do to motivate my staff to invest more time and effort in effectively selling or delivering my product or service?”

“How can I eliminate excuses and inspire commitment?”Because these are the most frequently asked questions, I have invested considerable time and effort in seeking out the EXPERTS and learning their methods in dealing with these challenges.I have made it my mission to vigorously study the masters in management, sales and marketing. The philosophy that I espouse is an amalgamation of what I have learned DIRECTLY from the leaders in business, such as: Tom Peters, Jack Welsh, Stephen Covey, Peter Drucker, Zig Ziglar, Tom Hopkins, Jay Abraham, Tony Robins, Morris Shechtman and many others. I have found that while these business gurus have different approaches, they all seem to agree on six absolutes of successful business management in the 21st Century:1. We are entering an age of uncertainty, expanding knowledge and unrelenting change.
For these reasons, what worked in the past will no longer work in the future. Even the most successful companies must commit to continuous improvement. Uncomfortable introspection must become a habit – -a willingness to eliminate dysfunctional behaviors, and a determination to model a culture that can tolerate unpredictability, uncertainty and vulnerability. Old methods must be torn down and new paradigms constructed.2. “WHO we are” is far more important than WHAT we do.
The increase in knowledge and change has created an “Intra-personal Revolution.” Individual performance and quality of life will reach new heights by focusing on the internal frontier within each person. A good product or service is no longer adequate. We must leverage relationships and personal values to gain cooperation and market share. Leaders must first change BEFORE they can expect their team-members to change.3. Business leadership will be rendered impotent without deep commitment to a pre-defined, consistent value set.
This focus allows organizations to clarify and act on core values, which will ultimately serve to create a tangible and unified culture. Corporate mission or vision statements will be useless without clearly articulated and non-negotiable boundaries that are enforced and protected. Values without boundaries are merely platitudes. There also must be value consistency between decisions. Strong leaders never have two sets of values to choose from. It is more important to make “value-consistent decisions” than it is to make the “politically correct” decisions.4. Accountability must precede profitability.
Accountability does not exist outside of a relationship. People must be accountable to “someone.” No one can be accountable to himself or herself. This will produce conflict and confrontation but that is not bad. On the contrary conflict avoidance must be eliminated. In fact confrontation is the highest expression of love. Leaders must move from “taking care OF their people” to “caring FOR their people.” In this new culture to demand less from our employees is as unfair to them as it is to our customers and ourselves. There will be no consistent profitability without accountability.5. Peak performance must replace adequacy.
Mediocrity, which has become the standard of performance, must become intolerable. Successful leaders should set expectations high enough so they are just barely within reach. They should demand greater effort, invest more time “inspecting” performance and be willing to confront damaging behaviors and attitudes. This will inspire individual growth. Companies cannot grow unless the people in them grow first.6. Companies must become “learning organizations.”
Leaders and their employees who develop the capacity for self-analysis and adaptive learning will have a remarkable competitive advantage. They will win the battle for mind-share and market-share. This includes quantitative as well as analysis both for internal as well as external elements of the business. When the people within the organization resist learning in place of simply performing job functions, stagnation begins.I have seen what can happen when these six absolutes are satisfied…. Businesses become stable, client loyalty improves, revenue and profits grow, employee turnover drops, new initiatives can be launched quickly and effectively, market differentiation occurs, employees give not out of obedience but out of discretionary effort and there is cooperative, harmonious teamwork. People go BEYOND what is expected of them.This is not a dream. It can be a reality. I have seen it with my own eyes. It is important to understand that this is NOT exclusive to my consulting practice. I know several consultants, like myself, who employ similar tactics with similar positive results. You see, in business, as in medicine there is a new standard of care. It is a standard that focuses on preventative maintenance and improving health rather than merely treating symptoms and constantly fixing aches and pains.But as in medicine, the patient must believe they need to become healthier in order to accept treatment. You may be making money, but this is not the only measure of health. Ask yourself these questions:

  • Are your sales erratic – up one or two months then down for the next few months
  • Are profits unstable or is there a lack of natural growth in the business?
  • Is there a high employee turnover rate?
  • Is there political infighting, blame shifting or a lack of accountability among your employees?
  • Is there an absence of discipline or self-centered attitudes?
  • Have dysfunctional behaviors like dishonesty, insubordination or emotional outbursts occurred in the workplace during the last six months?

If any of these symptoms are present in your business, its time to think about making some core changes to your business culture. These changes begin with the ability to cope with the unrelenting daily change in our economy. They are an outgrowth of our ability to change ourselves first BEFORE expecting others to change. They are interwoven with our commitment to a pre-defined, consistent value set. And they are an example of our ability to hold others accountable for peak performance rather than just mediocrity.

At the SBA Network we like to say that we influence decisions, improve performance and inspire change. Let us know how we might be able to assist you to inspire change in your organization.