If I Were Tiger's Agent

I've been asked frequently over the past week, "What would you do if you were advising Tiger Woods? How would you fix this?"

Well, you can't really 'fix' the PR nightmare that has become Tiger Woods life, but if I were trying to mitigate the damage and get him back on track, these would be my simple suggestions:

1. As we say in the South - 'Fess up'. Tiger has yet to really acknowledge and apologize for his atrocious behavior. I know there was that vague, hokey statement about 'trangressions', but PLEASE! Apparently he's had sexual relationships with every woman in his path who is not legally a relative, so he seriously needs to come out with a heart-felt apology that addresses the depth of this breach of trust. Hiding might seem safe, but right now he needs to look his fans in the eye and talk straight.

(For those of you who are sitting there thinking that Tiger should have privacy and shouldn't have to answer to the adoring public who has financed his billion dollar lifestyle, I say that celebrities choose their career and happily earn their cash off of public adoration. Granted adoration by millions is fun, and this situation is anything but; however, you can't just turn it all off when something bad happens. If you don't like the public watching your every move go be a fireman or accountant!)

2. Align the public persona with the real Tiger. These issues only arise when the public is led to believe one thing about a celebrity and then sees behavior that conflicts with that carefully crafted image. Tiger has been spouting for years about 'family' and 'loyalty' and a 'quiet, normal life'. Public anger is not about affairs with multiple women (most celeb males have those!). The anger is about hypocrisy. I respect George Clooney. He doesn't want to have a wife and children and he's been very candid about enjoying the company of beautiful ladies, so he simply has not gotten married. What a novel thought? His image is aligned with his true identity and the public adores him because of it. As an added bonus, he doesn't have to skulk around and pay people off and hide his girlfriends.

As Mike Taibbi with NBC put it, "Whatever faith I had in Tiger Woods is gone. Not because he betrayed his wife: because he betrayed me. I bought his brand. By being one of millions of dedicated fans, in a way, I helped him earn those billion dollars. And I got conned. Turns out he’s just a great golfer but a jerk like so many other men can be. Jeez!"

3. No encores. Going forward, Tiger needs to make sure that this ugly episode does not repeat itself. The public will forgive almost anything, but you can't push the envelope and become a repeat offender - there are limits. Tiger needs to get his game back on the course and get his family life in order. And don't get me wrong, by getting his family life in shape I don't mean saving a fake marriage at all costs by bribing his wife or trying to maintain a stronger facade. I mean taking stock of his life and setting a new course that accurately reflects the man he is. Being fair to Elin, taking care of his children (whether they are in his home or not) and bagging some tournaments.

So there you have it... my 3 steps to revitalize Tiger Wood's brand.

The Definition of Success...

I'll let this stand on it's own.

"To laugh much; to win respect of intelligent persons and the affections of children; to earn the approbation of honest critics and endure the betrayal of false friends; to appreciate beauty; to find the best in others; to give one’s self; to leave the world a little better, whether by a healthy child, a garden patch, or a redeemed social condition; to have played and laughed with enthusiasm, and sung with exultation; to know even one life has breathed easier because you have lived–this is to have succeeded." Ralph Waldo Emerson

Take Your Company Public: Hire A Turnaround Consultant First and Make Your Capital Raise Simple!

By James Scott

We do a lot of turnarounds and often help companies prepare for IPO's, capital bids and buyouts. This really is a critical issue. Know what investors are looking for and get the help you need to whip your company into shape BEFORE seeking funding.

Most companies who are on the venture capital trail are not set up properly to attract investors. When an investor looks at your business plan and private placement memorandum they are looking for certain things. Of course funding sources look for the obvious, a solid business model, positive cash flow, industry genre with solid future growth, recession proof business (if there even is such a thing) and minimal debt.

Countless companies are turned down for funding because they lack the basics such as: an advisory board, board of directors, solid executive staff with a well groomed pedigree, reasonable share price, business plan and PPM that spell out the risks for the investor and an original marketing strategy that covers all the angles. These are just a few of the most common mistakes that companies make out of naivety and by not taking the time to hire an expert to properly structure them to make the entity appeal to investors.

Seasoned expansion and turn-around consultants can step into a company and immediately zone in on the issues that will hinder a client's investment magnetism. Often times it only takes 2 to 3 weeks to completely reorganize a company to make it stand out like a beacon in the turbulent finance industry. If you are seriously considering the idea of raising capital with a private placement memorandum, traditional institutional loans, venture capital or a public offering don't be penny wise and dollar foolish.

Spend some money and hire a consultant who is completely submerged in the finance industry to take control of the elements of your corporation that are seen as 'black eyes' to investors so that you can achieve the capital you're seeking.

The reality is, raising capital for your company is easy and straight forward if you've taken the time to examine your business objectively and sought out the expert analysis of an industry expert consultant who will run your company through a formula and make the necessary changes to increase your ability to raise capital.

Details Matter... 'Thaw the Chicken'

Sometimes you have the big picture, you have the equipment, you know what you're trying to accomplish, and you know how to technically get a task done - but something is missing... some tiny seemingly insignificant piece of information thwarts you in your attempt to accomplish an aim. Details really do matter!  Enjoy this funny story and think about whether there are details that may be holding you back or making a mess of your attempts to reach a goal.

Back in the mid-1990's scientists at NASA developed a gun for the purpose of launching dead chickens. Why, you might ask?  By hurling a chicken at the windshield of a jet or the space shuttle at that vehicle's maximum traveling velocity, the space agency could simulate the frequent incidents of collisions with birds, and therefore determine if the windshields were strong enough to withstand high-speed airborne fowl strikes.

British engineers, upon hearing of the gun, were eager to test it on the windshields of their new high-speed trains. However, upon firing the gun, the engineers watched in horror as the chicken corpse shattered the windshield, smashed the control console, broke the engineer's backrest, and embedded itself in the cabin wall.

Shocked and puzzled, the engineers sent NASA the results of the experiment, along with the designs of the windshield, and begged the US scientists for suggestions and assistance in getting their obviously sub-standard windshields up to snuff.

NASA sent back a brief response: "Thaw the chicken."

Do you have 'unthawed chickens' in your world right now?  Little details that are mucking up the waters and shattering your experiments?  Minor points of logic that you may be missing?

Think about it.

What Really Motivates People to Perform? It's not What you Think...

I was reminded in the past few weeks (please don't ask me to recall where!) about the three motivators that move people to give their best effort.  Because so much of what I deal with day-to-day revolves around inspiring groups of people to work together and achieve great things, these motivators are constantly at play.  Most business owners and managers struggle to get their staff to perform at the highest level (or even a mediocre level), and leveraging motivating factors that really work can be powerful.

Autonomy
Although we're 'herd animals' at heart, people want to do their own thing.  Being micromanaged, forced to constantly answer to someone, or never given a moment's peace are nightmares for your average worker - this especially applies to Americans who are more independent than some other cultures.  Most managers and entrepreneurs are terrified of giving their employees too much autonomy.  While it is true that you have to provide clear boundaries, support, and occasionally intervention, it's been proven repeatedly that people perform better when they accept full ownership of a task and are allowed to make decisions and get the job done in their own unique way.  Autonomy is also a great motivator to access because there are benefits for the organization and management too!  By fostering personal responsibility in your staff you gain more time to focus on upper level tasks and business development without hovering over your team constantly.

Mastery
It really feels good to know that you are EXCELLENT at something - doesn't it?  We all love to feel accomplished and to be recognized for the things we do well.  Expert stature or mastery of a subject are fantastic motivators for your team.  Continuing education, new certifications and other programs can give companies a structured way to leverage mastery in the workplace.  Simple 'thank yous', surprise events and public recognition can also work wonders.  There are several reasons why this motivator is so effective:

1. Higher education typically equals higher pay.
2. Learning new skills keeps employees engaged in their work and prevents apathy.
3. Companies gain employees who are better at their job and who deliver for customers at a higher level.
4. Happy employees who feel that their job is a true specialty make fewer errors and stay longer.

Purpose
Everybody wants to feel that their life is making a difference.  We all would like to think that we are impacting the world and the people in it as we go about our daily business. Managers and corporations can tap into this innate human need for destiny to boost performance.  Be clear about your company's purpose and make conscious efforts to connect your staff with your mission statement.  Encourage volunteerism and community service.  Find ways for your company to engage in corporate philanthropy or holiday giving campaigns.  Make sure that each staff member (even the ones at the bottom) see how their job fits into the grand vision and makes a difference for customers.  All of these things will help your staff be more motivated and creative at work, which will equal higher profits and great innovations.

Lastly, I want to address the 800 pound gorilla in the room... money.  The single motivator that most businesses build into their HR plan is cash.  'Do X and you'll get a raise.'  'Achieve Y and you'll get a bonus.'  'Hit target Z and earn a higher commission rate.'  But it has been proven in studies that money motivators actually make people perform the worst!

Why?  Because money alone as a goal is very cold and shallow.  As much as we all WANT more money, we desire cash to improve our quality of life and feed our soul - not to sit in a vault.  As you consider the three motivators above, notice that each one will translate into more money naturally. 

For example... accepting personal responsibility for your work and getting tasks done independently will encourage you to be meticulous and will free your boss up to focus on the big picture, taking the whole organization forward. Getting better training, more professional designations and higher education will make you more marketable and improve your earning potential.  You will get raises due to merit and knowledge - not tenure or hitting a random goal one time. Feeling emotionally and spiritually connected to your work, and gaining personal satisfaction from your job, will improve performance every time.  All of a sudden you aren't just going to work - you are living your destiny, and that makes you a powerful force.

If you're in a supervisory position and you're tempted to offer people money to reach organizational objectives, I urge you to reconsider.  Find creative ways turn your attention away from money and use the three motivators that really work to take your team to the next level.

What can you do now to Minimize your Tax Bill in April?

Last Ditch Tax Tips for the Year's End!

Most of my clients call at some point in December and ask, "What can we do to reduce our tax liability?" I'm always happy to hear that question, because it means they've made enough during the year to be worried! So what can you do in the last days of December to reduce your tax bill?

Revisit your 2009 accounting BEFORE the year ends. Most companies don't really examine their books until well into the following year as the tax crunch begins to loom large. It's important as part of your year-end business strategy to have a good understanding of your company's financial situation before the year is over. That way you not only ensure that your books are accurate, you also have the information you need to 'guesstimate' your tax liability and make last minute decisions about spending, giving and deposits.

Examine your inventory. Inventory write-offs can be significant. The drop in market value of any inventory you have on hand can potentially provide your company with deductions. Depending on your accounting methods, you may also want to track any goods that have been damaged or have become obsolete.

Put money into a retirement plan. This is the time of year to make payments into your retirement plan or set up a final contribution before the end of the year to reduce your income. You'll have to check the contribution limits for your type of plan and decide what your budget will allow. 401(k)s, KEOGH plans, Roth IRAs or SEPs are all great places to shelter some funds for future years. As always, you need to discuss the best strategy with your financial planner or accountant.

Defer income into 2010. Any payments your business can receive during the first week of January as opposed to December will cut your tax bill. Every cent deferred until January 2010 will not owe taxes until April 2011. Your specific deferral strategy should be driven by your projected annual profits and legal structure (LLC, partnership, corporation, etc). Depending on your income tax rates in the foreseeable new year, deferral of income can make good sense for many sole proprietors, partnerships, LLC's, and S corporations.

Give a little bit away. Charities are hurting right now, and companies that are doing well can benefit from making last minute donations. Think about donations you may have planned for 2010 and push them back into 2009. Make sure you get a receipt for all tax deductible gifts.

Boost your Expenses. This sounds nutty, but if your cash flow allows you to spend at the end of the year you can save a bundle on your taxes. Purchase items your business will require in the immediate future to maximize deductions for this year. If you can see a need for goods and services in the first quarter of the new year, pay for them now and let those expenses count for 2009. Consider stocking up on paper, printer cartridges and other office items. Order promotional materials like flyers and business cards. Pay your January bills before the new year in areas such as phone services, subscriptions, insurance, rent and utilities. Get repairs made and book 2010 travel early. Buy any new office equipment or furniture you need. (You do have to weigh whether or not it is best to take a write off now or spread out the depreciation over years, but buying fixed assets can be a great tax reduction strategy.)

Every situation is unique, and each business owner has to decide whether or not it makes sense to reduce tax liability in the current year. Sometimes if you are projecting increasing sales it's a better call to just pay your tax bill and not make future tax burdens heavier, but if you are concerned about your tax liability for 2009 these are some great tips that can help you save money!

A Decade of Destruction... How the Internet Ruined Everything

The first decade of the new millennium saw the rise of a supremely disruptive technological force: the Internet.

The past decade is the era in which the Internet ruined everything. Just look at the industries that have been damaged by the rise of the Web: Newspapers. Magazines. Books. TV. Movies. Music. Retailers of almost any kind, from cars to real estate. Telecommunications. Airlines and hotels. Wherever companies relied on advertising to make money, wherever companies were profiting by a lack of transparency or a lack of competition, wherever friction could be polished out of the system, those industries suffered.

Remember all that crazy talk in the early days about how the Internet was going to change everything and usher us into a brave new techno-utopia? Well, to get to that promised land, we first have to endure a period of what economist Joseph Schumpeter called “creative destruction,” as the Internet crashes like a tsunami across entire industries, sweeping away the old and infirm and those who are unwilling or unable to change. That’s where we’ve been these past 10 years, and it’s been ugly.

Let’s start with newspapers. You wouldn’t think that in an information age the biggest victim would be purveyors of information. But there you go. Newspapers are getting wiped out in part because they didn’t realize they were in the information business—they thought their business was about putting ink onto paper and then physically distributing those stacks of paper with fleets of trucks and delivery people. Papers were slow to move to the Web. For a while they just sort of shuffled around, hoping it would go away. Even when they did launch Web sites, many did so reluctantly, almost grudgingly. It’s hard to believe that news companies could miss this shift. These companies are in the business of spotting what’s new, right? Yet they were blind to the biggest change (and the biggest opportunity) to ever hit their own business. Watching newspapers go out of business because of the Internet is like watching dairies going out of business because customers started wanting their milk in paper cartons instead of glass bottles.

Newspapers are getting wiped out because the Internet robbed them of their mini-monopolies. For decades they had virtually no competition, and so could charge ridiculous amounts of money for things like tiny classified ads. This, we are told by people who are wringing their hands over the demise of newspapers, was somehow a good thing. Good or no, it’s gone, thanks to Craigslist, which came along and provided the same service at no charge. Whoops.

TV is in the same boat. For decades we had three big broadcast networks. They weren’t exactly a monopoly, but close enough; with so little choice, the networks could aggregate huge audiences and charge outrageous fees for advertising time. Along came cable, which brought in dozens of competitors. This hurt a little bit, but when the Internet arrived, the dam burst. Suddenly the number of “channels” soared as high as you can count. There is no limit. It’s infinite. That sudden surplus has drained ad money from TV networks, which is why TV is now jammed with low-cost junk—reality shows, cable “news” that owes more to Jerry Springer than to Walter Cronkite, Jay Leno on five nights a week in prime time—taking the place of scripted shows, which cost more to make. Basically, TV is on a race to the bottom, cutting costs to stay ahead of the destruction. This may be a short-term fix, but simply putting out a worse product is probably not the way to survive.

The music business has suffered even more. First there was Napster, distributing music at no cost. Apple’s iTunes Store offered a path to survival, but it forced the music companies to cede control of their industry to Steve Jobs. As for music retailers—remember them? Yes, children, there used to be actual stores that you could walk into and buy music, on CDs and even on vinyl record. You don’t see many of those about anymore.

As for the film industry, Apple now offers movie studios the same Faustian bargain it made with music companies: “You just focus on making movies, and let us take care of digital distribution.” But the movie guys remain wary, and at the very least would rather deal with many different digital distributors and not let any single distributor get too powerful. The studios realize that the digital revolution is disrupting their business. The best they can hope to do is slow down the disruption.

But it’s not just stodgy old-fashioned companies that have been hurt by the rise of the Internet, even tech companies suffered damage. Before the Internet came along, Microsoft ruled the computer industry. Tiny software companies lived in Microsoft’s shadow, and they knew that if their business struck gold, Microsoft would offer them an unpleasant choice: either sell your company to us for a pittance, or we’ll create software that mimics your product and put you out of business. Microsoft bullied rivals and business partners alike, until the latter squealed to the U.S. Department of Justice, which brought an antitrust case against the software giant, resulting in a judgment against Microsoft in 2002.

These days nobody fears Microsoft. The company has become a stumbling, bumbling joke. That’s not because of the government, however. What really tripped up Microsoft was the Internet. Microsoft’s business model was based around waiting for others to innovate, then making cheap knockoffs of what others were selling. Microsoft copied Apple to make Windows. They copied Lotus and WordPerfect to make Excel and Word, then bundled those apps into a low-cost suite called Office. They copied Netscape Navigator to make Internet Explorer, and then gave it away free, tied to Windows, and killed Netscape. But then the copycat model stopped working. Why? For one thing, Microsoft got slower, while everyone else got faster. The new Web-based companies, like Yahoo and Google, needed little money to get started and could scale up quickly. Google figured out keyword-search advertising and got so big so fast that Microsoft could not drag it back. Apple rolled out the iPod and then the iTunes store, and by the time Microsoft realized that selling music online was a big market, it was too late—Apple had it sewn up. The same is true of Amazon with the online retail market, and the Kindle, and its cloud-computing services.

Now Microsoft finds itself racing to catch those companies, even as it invests resources and energy into defending its money-making products like Windows and Office. It’s a case study that could have sprung from the pages of Harvard Business School professor Clayton Christensen’s book The Innovator’s Dilemma. Microsoft is too big to get swept away. But it’s too wedded to the old world to make it across into the new one. It is quickly becoming irrelevant—maybe not as much as the average newspaper, but close enough.

The Internet has changed pretty much every aspect of our lives over the past decade. Is that for the better or the worse? Depends on who you ask.

 
Daniel Lyons is technology editor for NEWSWEEK. He blogs at Techtonic Shifts.

10 Ways a Start-Up Can Use Social Media to Market Itself

Hubspot Blog on November 9th, 2009
By Edward Boches

“How can a start-up with a few employees and a tiny marketing budget get its name out there?”

The question appeared perfect for a panel that included blogger and Twitter star Chris Brogan, Hubspot’s CEO and Inbound Marketing author Brian Halligan, and this blogger, who has worked on the launch of numerous companies and brands including Lotus, Monster.com, and Lending Tree, not to mention another dozen that never made it.

Interestingly, while we all agreed in principal with what a company should do — embrace social media, take advantage of the platforms available, connect with influencers, and allow the community to play a role — we disagreed somewhat on how much time it might take and who should do it.

Chris suggested that you could achieve a version of what he’s done – build a following, mobilize a community, turn content into business (my interpretation) — in a couple of hours a day. I contended it would take a lot more time than that if you planned on generating quality content. Brian argued that anyone could easily start a blog, post something daily, learn to be Google friendly, and let search take care of the rest.

We each answered quickly and moved on to another question. But if we’d had more time, this is what I believe we may have collectively suggested that a start-up do to market itself:

1.    Craft a brand position rooted in a customer benefit.

An awful lot of young companies do a good job of describing a product’s features rather than synthesizing them into a single benefit. A simple handle, either expressing what a brand stands for or declaring its point of difference, will serve you well in everything from appearing in search results to being remembered.

2.    Take your message and content to your consumer. Engineer your presence.
You may want a website where you fill orders, capture data, or simply demonstrate your product, but you shouldn’t assume your customer will instantly come to you. Twitter, Facebook, Linked In, and YouTube are
all basically free tools. You need to go where your consumer lives online. If your customers, prospects, and influencers are there, you should be there: listening, engaging, sharing, and helping them.

3.    Find inventive ways to create or gather content.
For starters, make your website into a blog. Fresh content, the ability to post comments, and pages that get linked to will add to your online visibility. No doubt it’s challenging and time consuming to generate enough content to populate your network and blog, but there are smart ways to go about it.

First, whatever you’re doing, write about it. Report on your progress. Second, come up with a daily question you’d want someone to ask and respond to it in a blog post or video. Third, save time by collecting content from others. Place your product or service, even in beta form, in front of people willing to blog, make videos, and tell stories about it. Aggregate this content to your blog or video channel. Fourth, conduct polls or ask questions about a related topic and turn these results into future posts as well as “news” you can release to both bloggers and press.

4.    Get on Twitter and use it actively.
It takes time to build a large Twitter following, but it’s a quick way to connect with industry influencers, bloggers, and press that might matter to you.

No matter what you sell, someone on Twitter is having a conversation about it. It’s your chance to listen, respond, and engage with potential enthusiasts. More importantly, on Twitter there’s a willingness to help each other that you just won’t find anywhere else. Perhaps it’s because re-tweeting information is virtually effortless, or that people practically vie to share new finds, or that users feel a sense of obligation to those who follow and promote them, but for whatever reason, you’re likely to find people who are willing to help promote your brand on Twitter, presuming you learn Twitter protocols and give more than you take.

5.    Connect your customers and prospects to each other.
One of the best things you can do as a young company is to foster word-of-mouth conversations among your earliest customers. Whether you do it on Facebook or on your own site, it’s important to invite your customers to talk to each other and share ideas. Allow them to guide one another on how they use your product or service. Not only will you have the opportunity to learn what people like and don’t like about your product, you may end up with a bunch of people you can ask to help you.

6.    Develop relationships with the right bloggers.
Every start-up in the world wants that article in the New York Times or the Wall Street Journal.  But the fact is, the right bloggers might be more influential for a number of reasons. They have loyal readers. Their references or links to your site will drive up your search results.  And these days, it’s more likely that ideas will bubble up from the blogosphere to the mainstream press than vice versa.

7.    Start Crowdsourcing.
There is no shortage of services – companies like crowdSpring (design) or Tongal (video) — to help you source affordable content from designers, videographers, writers, and others. But there’s an even better reason to crowdsource. You allow your customers to participate in the creation of your brand. If you want a great example, take a look at how HBO seeded True Blood. Instead of advertising, HBO shipped samples of synthetic blood to popular videographers and bloggers, who, of course, couldn’t resist making videos or posting pieces about the mysterious liquid. You may not have anything as cool as fake blood, but you can still learn to think this way.

8.    Read Brian Halligan’s Inbound Marketing Book.
Even if you have a product with enough mainstream appeal to justify paid advertising, consumers today spend more time searching than watching. You want to be found. Inbound Marketing covers all of the basics you’ll need to know to make your content Google friendly.

9.    Give stuff away for free.
Take a look at what HubSpot does: free tools (Twitter Grader and Website Grader); free webinars (How to use SEO, Blogging for Business); free eBooks (Facebook for Business, Getting Found Online). If you sell food, give away recipes. If you’ve invented a sleep monitor, offer free tips on better sleeping. Free content generates awareness, builds loyalty, creates newsworthy topics, and spreads word-of-mouth. Remember, in this day and age, what a brand does is far more important than what a brand says.

10. Make the time, build in the role, or hire the right partner.
As folks like Chris Brogan and Gary Vaynerchuk have proven, you can do all this yourself if you have the right time, energy and commitment. If you can’t muster that, give this role to one of your first hires. If you’re less than comfortable identifying that person within your own company, (hint: it’s not an intern or a kid right out of school; Digital Natives may know all the technology, but they often lack the strategic chops and the ability to create truly compelling content) retain the services of a public relations agency with real experience in social influence. Make sure that if you go this route, you ask for case studies as evidence that the PR team assigned to your business actually practices what it preaches.
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When I started in this business, launching a brand was costly. You needed a significant marketing budget that covered an oversized booth at a trade show, a direct sales force or a Super Bowl commercial, and a good hunk of your money went into advertising and promotion. Now you might be able to get away with a laptop, an Internet connection, and some well-focused social media.

Attention... Do you Go After it at All Costs?

A few hundred thank-yous to Mike McLaughlin, Editor of Management Consulting News, for this reality check on garnering attention for the wrong reasons and generally misbehaving.  For more visit www.managementconsultingnews.com.

It's clear that the "attention economy" in the US has run amok when adults hatch a plot to market themselves by making us believe their son was trapped in a runaway weather balloon. The parents of the media-dubbed "Balloon Boy" got the attention they craved, but it may land them in jail.

They're not the only ones willing to sacrifice good sense for notoriety. Scroll through blogs and twitter feeds and you'll find attention seekers there too. They're easy to spot. Usually, they're saying something outrageous just to be in the spotlight.

What I find puzzling, though, are the people (some of them consultants), who seek attention by tearing down others. When responding to a blog or twitter message, it seems that some people feel they can abandon the basic rules of civility they would observe toward anyone they met in person.

And some obviously relish the buzz that Internet fights can generate. It's a shame that so many of these arguments devolve into childish name-calling and other insults. When I see these exchanges, I'm sure the consultants involved have lost touch with three realities of our business.

First, problem solvers are collaborators, not aggressors. Who wants to hire a person who goes on the attack over every disagreement?

Second, every word you put out into the market is there for clients to see. If you throw a hissy fit on your blog because someone didn't like what you said, a client may rightly wonder how you'd react if the issue was truly important.

Third, clients expect consultants to respect them and their teams. If you're willing to unleash a public tirade against a total stranger, what might you do once you land in their office?

When I first started in consulting, a mentor offered a guiding principle about behavior toward others, especially in tense situations: "When you're upset, the most emotionally satisfying response to an argument is usually the worst possible one." This simple point seems more relevant now than ever.

John Maxwell on Raising Your Level of Leadership

The author of 47 books—including The 360 Degree Leader and The 21 Irrefutable Laws of Leadership—John Maxwell discussed what he terms the five levels of leadership, which are taken from his book Developing the Leader Within You.  (Courtesy of Knowledge@Emory)

Maxwell says it’s easy to tell a company characterized by Level One leadership, the lowest level, where the corporate ethos is this: We’re the boss and you’re not.

“People follow because they have to,” he told students and faculty at Emory University. “If quitting time is 5 p.m., all the desks are cleared at 4:30. At 4:55, employees put on their gym shoes because they want traction. They wouldn’t want to slip on the way out and spend an extra minute there. At 4:59, they’re waiting for the gun to sound, and at 5 o’clock, they’re gone. It’s like a fire drill.

“In an organization high on positional leadership, the employees (think), ‘How little do I have to do, how little do I have to commit, to keep my job?’ ”

By contrast, effective leaders learn and grow, extending their influence and rising to the other leadership levels described by Maxwell:

• Level Two: People follow this type of leader because they want to. Leaders on this level—a quantum leap from Level One—are likeable. Relationships develop; people begin to feel passionate about their work; and energy grows within the company. Employees don’t put on their tennis shoes at 4:55 p.m.
        
• Level Three: People follow because they realize what the leader has done for the organization. Momentum builds. “All leaders know that the most important thing they can do for their company is to create momentum. When you have the ‘Big Mo’ going for you, everything gets easier,” observes Maxwell.
        
• Level Four: People follow because of what the leader has done for them. Such leaders develop the employees around them, which promotes long-term growth. “Loyalty kicks in at this level because you’ve made the people around you better. They’ve become loyal to you.”
        
• Level Five: People follow because of who the leader is and what he or she represents. Leaders on this level have spent years developing employees and building the organization. “Go through the first four levels and one day—guess what? —your people will put you on Level Five.”

Trouble is, many bosses never advance beyond Level One.

“Nothing wrong with it, just that it’s the lowest level,” says Maxwell. “What’s amazing is that nine out of 10 people think it’s the ultimate level. Many people get to this level and think, ‘OK, now I’m a leader.’ But that doesn’t make you a leader, it just means that you have a leadership position. The position doesn’t make the leader, the leader makes the position. If you have to tell the people in your group that you’re the leader, you’re not.”


“I came to the conclusion that people can do four things well and be highly successful, regardless of what their career would be,” says Maxwell.

Namely, successful people get along well with others; develop teamwork in the organization; maintain a good attitude, especially in the face of adversity; and lead effectively.

“People won’t go along with you unless they get along with you,” notes Maxwell. “Every one of you has worked in an environment where relationships were not what they should or could be. People lead people, not companies. When there’s a change and transition within a company, it’s almost always a people issue. After a while, they say, ‘Hey, I don’t need to work in this kind of environment.’ ”

Indeed, the ability to connect with people is absolutely critical to a leader’s success, he says. “Very few times do you see a highly successful person who has made a habit out of having bad relationships. Interestingly enough, I have three degrees, but I’ve never had a course in how to understand people.”

In addition, successful people are able to overcome adversity, often experiencing financial difficulties — even bankruptcy — before hitting their stride, he notes. “They have all kinds of issues in life. Anybody can have a great attitude on a good day, but (what counts) is when you’re in a corner and have to think creatively. The greatest gap between successful and unsuccessful people is the thinking gap.”

Added Maxwell, “Attitude isn’t everything—it won’t substitute for competence—but it’s the most important thing in your life. Successful people have a (good) attitude, especially about adversity, that really sets them apart.”

Maxwell cited two laws from his book The 21 Irrefutable Laws of Leadership. The Law of the Lid states that leadership ability determines a person’s effectiveness. The Law of Influence holds that influence is the true measure of leadership.

“Your business isn’t going to grow beyond your leadership (skills),” says the Amazon.com Hall of Fame author, whose books have sold over 12 million copies. “Leadership is influence, nothing more, nothing less. The person who has the most influence within a given group at a given time is the true leader of the pack.”

A corporate executive once asked Maxwell for help in resolving a ticklish dilemma. Three employees were in the running for a leadership position. Which one to pick?

Replied Maxwell, “Put all three in some community volunteer project, where people don’t have to follow them. In six months you’ll know who your best leader is because the leader will be the one who can get people to follow who don’t have to follow.”

Maxwell says leaders need to grow and develop themselves, so they can then develop the people in their organization. To do this, they must understand what it is that their employees value.

Developing an employee’s strengths and not correcting his or her weaknesses is a good place to start, Maxwell says. Even with great effort, he adds, someone lacking in talent in a given area can become only average at best. “Nobody wants to pay for average. When you’re developing people, find their strength zone and develop that.”

To add value to people, leaders must first value them, he says. “The Achilles heel of most leaders is that they don’t value people like they should. The first sign is when they start manipulating them—moving people for (the leader’s) own advantage —which is always wrong.”

Building teams and developing the people around them, is the essence of leadership, adds Maxwell. “They understand that the only way you can compound influence is to put a team together. One is too small a number to achieve greatness. To make an impact, you have to do it with other people—through partnerships, relationships and team-building.”

That Certain Special Something...

As I’ve said many times before, ‘customer satisfaction’ is not my favorite term. It implies that your goal is for people to walk away feeling ‘OK’, but not amazed… Satisfied, but not so excited they want to tell all their friends. If you really want to take a leap to the next level I urge you to go for the ‘wow factor’ and look beyond simple satisfaction.

The Virgin Group, launched 40 years ago by Sir Richard Branson, has become one of he most powerful and iconic organizations on the face of the earth by adhering to one simple principle – let’s give the customer some FUN! That lighthearted commitment to joy and unparalleled quality, as well as the less tangible elements of surprise and genuine concern for people, helped Virgin hit $1 billion in sales faster than any other company ever launched.


How can you leverage the ‘wow factor’ to build your own business? Understand a few basic principles and you’re well on your way:

Mediocrity is bad. The middle of the pack can seem like a safe place to be. You play off of your competitors, mimic other products and services, match your pricing to the market and try not to stand out. The problem with that strategy is that customers won’t see you as any different from the next guy. They won’t pay attention to your brand, respond to your promotions or tell other people about you. Today’s competitive climate is fierce, and if you choose to play it safe and accept mediocrity someone more memorable will easily edge you out.

What you like doesn’t matter – what your customer likes does! Most business owners get hung up on their own agenda and preferences. It’s human nature… ‘I love the color fuchsia –let’s use that!’… ‘Who wouldn’t want a lipstick dispenser in their car?’… ‘We all shop online so a retail presence is pointless.’ Take the time to get to know your customer intimately and to give them what they want. Go a step farther and think beyond their conscious desires to create amazing experiences and exemplary products that they would never even have thought of.

Take the ‘wow factor’ to the front lines. If you know and adhere to your customer commitment religiously and your staff, distributors and vendors don’t, you’re setting yourself up to fail. In order to create a truly stellar customer experience, you have to pull everyone into the vision. From the receptionist who answers your phone, to the sales staff, to the retail clerk, to your distribution channels… everyone has to understand the power of ‘wow’ and work hard to exceed customer expectations. At the end of the day, companies are just big groups of people working together towards a common aim. Make sure your team is all about ‘wow’!

Respect the value of loyalty. All a business really has to bank on is its customer base. You may have intellectual property you’ve created, but if no one buys it - who cares? You may have a highly educated staff, but if they can’t make money and you can’t pay them – who cares? You may have a beautiful facility, but if no ones comes in – who cares? Your customers are the lifeblood of your business and everything you do must revolve around their experience with you. Share your vision with customers. Communicate with them. Offer opportunities to interact. And never, ever break your brand promises.

Quantify the promotional power of ‘wow’. That certain special something you create is a very valuable commodity in your business world. Competitors can copy your products, offer similar services, mimic your ads and raise more capital, but the one thing they can never steal from you is your ability to deliver an exceptional experience to your customers every time. They cannot usurp your relationship with people who are passionate about your brand. The ‘wow factor’ negates the need to pay a pretty penny for marketing, it keeps your staff happy, it helps you innovate without endless investment in R&D, it keeps people coming back and talking about you. Make no mistake… wow is not fluff – wow is priceless.

The Enlightenment of Richard Branson

By: Alan Deutschman

In a world where companies routinely bedevil customers, the Virgin chief is an angel, because he truly puts customers first.

Sir Richard Branson still remembers how he was first received by the establishment powers when he started Virgin Atlantic Airways 22 years ago. "The head of American Airlines said, 'What does Richard Branson know about the airline business? He comes from the entertainment business.' But that was exactly what the airline business needed."

He has been right, of course. With the exception of Southwest, all of the look-alike U.S. carriers wound up filing for bankruptcy or going belly up. Meanwhile, Virgin, with its fun-loving flight attendants who seem to be hosting a party, is still thriving.

What Branson understood two decades ago is just now beginning to be embraced by other corporate leaders: We should be having fun when we're spending our money. In a sense, Branson has never left the entertainment business, and that's why he's kicking off our third annual Customers First awards. As his empire has expanded - from a recording label and a chain of music stores to what became his fiercest passion, airlines, as well as an astonishing array of some 200 other eclectic ventures worldwide--his method has remained the same. He takes on intransigent industries that treat customers inexplicably badly and shows that he can offer not only a better deal but a truly entertaining experience. The approach has made Sir Richard a multibillionaire and Virgin a beloved brand--as well as a $10 billion-a-year operation.

Throughout Virgin's history, many of its most propitious ideas, small and large, have sprung from Branson's wants and needs as a customer himself. "The reason I went into business originally," he says, "was not because I thought that I could make a lot of money, but because the experiences I had personally with businesses were dire and I wanted to create an experience that I and my friends could enjoy."

On one trip, he recalls, "I wanted to talk to the pretty girl in the next aisle, but I was stuck in my seat the entire flight." Branson's frustration inspired him to introduce stand-up bars in Virgin's cabins. After his wife's manicurist suggested offering nail treatments and massages onboard, Branson didn't bother with market research. "Sounds like a great idea," he said. "Screw it, let's do it." Now Virgin has 700 therapists on staff.

Putting customers first is hard in a corporate environment that understands only cost, efficiency, and business as it has always been done. That was the case when Branson thought flyers would love seatback video screens that would let them pick the movies they wanted to see onboard rather than having to wait for whatever film the airline had picked. "Seatback videos are complicated, expensive things to do," he recalls. "The cost was around $8 million, and the airline was quite stretched at the time. I went to the bank, and they wouldn't give us the money. So I rang up the head of Boeing and said that we wanted to order some new 747s and could he give us seatback videos, and he said yes. We were able to borrow $2 billion to buy a new fleet of planes, but not $8 million for seatback videos."

Airlines are not the only industry where the big players exist in a weird state of mediocre parity because they put their own interests ahead of their customers'. Virgin Active, Branson's European chain of health clubs, lets members pay when they go rather than locking them up with a contract. Similarly, in the mobile-phone business, Virgin Mobile USA has attracted 4 million customers by offering prepaid cards mainly to young people who couldn't afford costly long-term service plans. The lesson: Don't rip people off, and they'll happily stay your customer.

A lot of executives consistently do what's easiest or cheapest for the business rather than the people paying the freight. Branson offers an alternative: Take a look at your business and ask yourself, "Is this how I would want to be treated if I were the customer?"

Correction: This article incorrectly implied that all the traditional major U.S. airlines have filed for bankruptcy or gone "belly up." American Airlines has done neither.

 

Can Marshmallows Predict Success?

Courtesy of www.sybervision.com, this study shows an amazing link between children's ability to delay gratification and their future success in the adult world.

Stanford University psychology researcher Michael Mischel demonstrated how important self-discipline (the ability to delay immediate gratification in exchange for long term goal achievement) is to lifelong success? In a longitudinal study which began in the 1960s, he offered hungry 4-year-olds a marshmallow, but told them that if they could wait for the experimenter to return after running an errand, they could have two marshmallows.

Those who could wait the fifteen or twenty minutes for the experimenter to return would be demonstrating the ability to delay gratification and control impulse.

About one-third of of the children grabbed the single marshmallow right away while some waited a little longer, and about one-third were able to wait 15 or 20 minutes for the researcher to return.

Years later when the children graduated from high school, the differences between the two groups were dramatic: the resisters were more positive, self-motivating, persistent in the face of difficulties, and able to delay gratification in pursuit of their goals. They had the habits of successful people which resulted in more successful marriages, higher incomes, greater career satisfaction, better health, and more fulfilling lives than most of the population.

Those having grabbed the marshmallow were more troubled, stubborn and indecisive, mistrustful, less self-confident, and still could not put off gratification. They had trouble subordinating immediate impulses to achieve long-range goals. When it was time to study for the big test, they tended to get distracted into doing activities that brought instant gratification This impulse followed them throughout their lives and resulted in unsuccessful marriages, low job satisfaction and income, bad health, and frustrating lives.

Create a Leadership & Accountability Culture

Eventually a growing company will expand beyond your ability to reach personally into every corner and crevice. In order to grow a business you have to build systems and mentor leaders, so that you can maintain your focus on the bigger picture. This article will help you create an organizational culture that raises up great leaders, rewards results, and makes it easy for people to do their jobs.

A one person company requires little management beyond self-discipline. A 5 person company is obviously much more complicated. And the need for leadership and accountability increases as the numbers rise.

A 10 person company is less complex to manage than a 25 person company, and a 25 person organization is less complex than a 50 person firm. With growth comes the demand for additional structure and an expanding ability to cope with people issues. At the same time, too much complexity will stifle growth unless it is effectively introduced and embraced.

Strong leadership and building a culture of accountability are both crucial elements to increasing your company’s capacity for growth.

“Leadership,” writes expert Peter Drucker, “is helping organization members see a bright and exciting future and collectively work toward it. It is the role of visionary, coach, cheerleader, pilot and listener all rolled into one.”

Bottom line… you have to champion the values, attitudes and behaviors you want to see in your team. People will do what you do – not what you tell them to do. Learn to act as the guiding star that motivates them to keep moving forward, accept more responsibility and improve their skills. And don’t be afraid to take on the role of advisor and ‘great encourager’ for everyone below you.

Once you’ve anchored yourself as a great leader and earned the respect and following of your staff, you can systematically implement a clear accountability structure that will sustain itself.

It is estimated that lack of accountability costs U.S. companies billions of dollars each year. The research also says that the majority of employees (85%) come to work each day wanting to be accountable. But only 45% continue to feel that way throughout the entire day.

So why the disconnect between employees intentions and the reality of the workplace? Building accountability in any work environment is a systems effort. It requires a clear definition of accountability that everyone agrees on, adherence to high performance, and a team mentality.

Five Critical Building Blocks of Accountability

1. Establish clear direction. Without a carefully crafted business strategy, you are essentially flying blind. A well thought out strategy enables you to properly allocate resources and clearly communicate your plans to employees, customers and other stakeholders.
2. Align people, process, and systems. Strategic alignment provides the ability to focus - through common processes, procedures and operating principles - toward the fulfillment of group objectives. It sounds complicated, but it really involves careful planning and coordination. Just think if each member of a precision marching band had a different idea of how to move across the field, or a different tune they wanted to play. You would have chaos and noise. Aligned, with everyone marching in the same direction and playing together, a precision marching band is a joy to watch.
3. Engage your staff. A study by ISR found that companies with high employee engagement improved 19.2% whiles companies with low engagement levels declined 32.7% over a one year period. People want to be involved in something bigger than themselves. You must allow group participation in decision-making and value staff input. Hire people who fit with your culture, know your vision, and have proven to be high-performers.
4. Lead the way. This one is obvious. Follow through on the demands you make of others. Exhibit the habits and traits you want to see in your employees. And when you make a misstep – admit it and openly return to accountability so that honesty and responsibility become the standard for everyone.
5. Monitor progress and evaluate results. Accountability by its very nature requires people to have ongoing information about their performance. And your initiatives will have no teeth if clear consequences and rewards are not attached to results. Be sure to support your staff and regularly review their results with them. Make life really wonderful for passionate, committed people who are willing to accept responsibility for their work - and make sure that lack of accountability is a bad place to be.

In an accountable workplace an "execution mentality" prevails. Activities, plans and effort are not enough. Instead, there must be an emphasis on measurable results and a ‘get-it-done’ attitude that is endorsed by everyone. People are expected to step up to challenges and they are given the guidance, tools and information to do so effectively.

By following these simple tips, you can enable your company to expand and grow while maintaining teamwork and high standards... as well as your sanity!

The Triumph of Web 2.5

The well-deserved success of Mint.com, and what other Web businesses can learn from it.

Courtesy of Newsweek

By Daniel Gross

Sep 18, 2009 | Updated: 5:20  p.m. ET Sep 18, 2009

Earlier this week, Intuit, the software company that owns the popular personal-finance software programs Quicken and TurboTax, agreed to pay $170 million in cash for Mint.com, a two-year-old startup whose free tools allow chastened customers to manage their personal finances online. Some critics, such as Web entrepreneur Jason Fried, view the deal as a defeat for upstarts: A wounded incumbent that charges hefty fees for its services is taking out a free competitor for a relatively small sum and increasing its market power. (Last year, Slate's "Shopping" column tabbedQuicken.com and Mint.com as the best online tools for keeping track of personal finances.) But the all-cash deal, which will provide a hefty payday for the company's founders and venture capital investors, represents a triumph of a new business model. Indeed, the sale of Mint.com may be the first big payoff for a Web 2.5 company.

The first generation of dot-coms burned through cash rapidly because they had to spend a lot of money building and running their businesses—marketing and advertising to get the word out, not to mention software, consultants, and programmers to run online systems and analyze the results. Thanks to Web 2.0, many of these costs have plummeted. Many of the basics are now essentially free, which means a business built on the infrastructure laid down by the first two generations of Web companies can gain scale on a shoestring budget, all while giving away its products and services for free. Call it Web 2.5.

Yesterday, at a panel I moderated in San Francisco, Donna Wells, Mint.com's chief marketing officer, stunned a room full of digital marketing pros by noting that she really didn't have much of a marketing budget. Mint.com has gone from zero to 1.5 million users in two years with no ad campaign, save a mid-five-figures sum spent on search engine terms. Rather than purchase traffic, it has pursued the same type of strategy that food trucks and online magazines do: Using free social media and piggybacking on popular new communications technology. Mint.com has more than 36,000 Facebook fans and 19,000 Twitter followers, a well-trafficked blog, and a popular iPhone application.

Mint.com, which advises customers on how to pinch pennies, does some penny-pinching of its own. It uses Wordpress (free) to run its Web site and blog. To analyze traffic partners, conversion rates, and other essentials of an online business that generates its revenues through lead generation, it uses Google analytics (free and sufficiently simple that Wells' marketing staff can use it without the help of software experts). Wells referred to a bunch of other services it uses to keep tabs on its site, such as ClickTale and Crazy Egg and Compete, as "virtually free"—costing a few hundred dollars a month. Mint.com's main market research tool is Zoomerang, which helps companies conduct online surveys and collect user feedback. The cost: about $700 per year.

Mint.com has benefitted from a cultural shift as well as a technological one. During the free-spending housing bubble, a Web site that encouraged people to manage spending, comparison-shop, and save was definitely out of step with the prevailing mood. But once the financial and housing markets tanked and the nation went into recession, the zeitgeist shifted. Shrinking top lines have caused people to focus on the bottom line, and the savings rate has spiked. Third homes and luxury goods are out; coupons and growing your own vegetables are in. Saving is the new borrowing. Thus considered, Mint.com, which launched in September 2007, timed the market perfectly. It hit the Web at a time when more Americans suddenly had the time, inclination, and motivation to manage their financial affairs more prudently. And it gave them a way to do it without having to spend a dime.

© 2009

Stand vs. Position

This weekend I attended a fund-raising seminar with Lynne Twist for a non-profit that I serve on the Board of (www.theothersideofeverest.org). One of the most illuminating points she made was the difference between taking a stand and taking a position.  I believe that this principle applies to business every bit as much as to money... so enjoy!  (www.soulofmoney.com)

"Great leaders know the distinction between taking a position and taking a stand.  Taking a stand creates a field where all positions are heard and respected and truth begins to have room to be expressed.  Archimedes said, 'Give me a place to stand and I can move the world.'" Lynne Twist

The very nature of taking a position invites opposition - and who wants that?  That's because a position is an opinion, an item of debate, a battle in the making.  A stand, however, is very different.  It can be nothing but positive - transcending simple arguments or opinions and coming from deep within.  Because it is a reaction to nothing, nothing can react to it.  A true stand based on character and deep belief is so honorable that whether you agree with the stand or not, you have to respect it.  Standtakers derive their power not from authority or influence or logic, but from pure authenticity.

The Democratic and Republican parties have positions on many issues, and those positions invite opposition and create strife and disagreement. Ghandi, Martin Luther King, Mother Theresa, Nelson Mandela... standtakers all.  And because their simple desire to make the world a better place contended with no one - no one could contend with them.

In business, it's easy to get lost in the competition and stress of day-to-day operations and forget about the big picture.  Why are you in business?  What do you stand for as human being?  What impact do you want to make on the world?  What are you committed to for your whole life and beyond? 

Even small companies can stand for something so authentic and powerful that people are compelled to sit up and take notice.  If your personal stand cannot find it's way into your professional life, the contradiction will suck the joy and impact out of everything you do.  Find your common ground and take a stand in your business so that work and mission are beautifully blended into something larger than just you.  By taking a stand for something that matters, a person or an organization can elevate itself above the fray... see everything, be seen and coexist.

I encourage you today to examine your life and decide what you truly stand for.  We live in the greatest age of opportunity and challenge that the world has ever known.  Positions will not guide us successfully into the future; however, if we all take an honest stand for what really matters, we might just have a chance.

Everywhere You Go... There You Are

“Everywhere you go, there you are.”

I say this to clients a lot, because they often want to believe that every problem originates from some source outside of themselves.  It’s human nature to deflect responsibility… basic self-preservation instincts from before the dawn of time. But, that instinct to blame and make excuses doesn’t serve people in leadership positions.

In discovering your true self, the very core energy you project to other people shifts.

Like it or not, there is really no fate for us except the one we create. Churchill very wisely said that ‘you create your own universe as you go along’. Do good things happen to bad people, and bad things happen to good people? Of course. But 99% of the things that come to us in life we manifest based on our behaviors.

The beauty of this simple truth is that we can all change our thoughts and behaviors to reflect our true self. And that alignment of external image to internal reality is incredibly powerful. When you get very comfortable in your own skin and become very clear about your beliefs, character and destiny, people are drawn to you and good things begin to happen naturally.

So where do you begin in getting to know your true self?

Values come first. Values dictate how you relate to other people and the world around you.  They guide your behaviors and decisions.  Every great leader understands how to balance the fine line between adaptability and rock-solid certainty about what really matters.  While you have to be ready to shift and change with the demands of your environment, you also have to know what you believe in so that you never compromise your core values.  If honesty is a principle you live by - you can't lie to get a lucrative business deal finalized.  It destroys your credibility.  If good communication is a something you believe in strongly - you shouldn't withhold bad news from your team to avoid hard questions or dissent.  Know and live your values everyday.

Character.  Horace Mann said that 'reputation is what men and women think of us. Character is what God and angels know of us.'  Character differs from values in that it relates more to our most basic understanding of ourselves than our external relationships and interactions.  Character defines your personality and soul at a very deep level and drives the values, strengths and priorities that exhibit in your day-to-day behaviors. Be sure that you never get caught in the trap of linking your character to public opinion or evolving priorities.  If you are a kind and gentle person at your core, your character doesn't change simply because you've been wrongly convicted of a violent crime.  Although your reputation and even your day-to-day values may change based upon your circumstances, your character always remains constant.

The good, the bad and the ugly.  Taking a long, hard look at your strengths and weaknesses is crucial to good leadership.  No one is excellent at everything, so wise leaders know how to leverage the things they are good at and fill in the gaps of their weaknesses with the talents of people around them.  You can't begin to engage in this process unless you've first conducted a realistic assessment of yourself and built a strong base of self-awareness.  Strengths are obviously the fun part!  Our ego loves to focus on the things we're good at.  But often far more critical to success is our understanding of where we fall short, and our ability to admit our weaknesses to others and elicit their help in making things happen.

Vision. Your life, your work and your goals should all converge around a common vision: a big picture view of the purpose for your life and the primary thing you want to accomplish in your time on this planet. Your vision is your enduring purpose. The fundamental reason for existence beyond just making money or survival. It is a perpetual guiding star on the horizon and does not change over time. In essence, your vision is a mental picture of the future you wish to create through endless pursuit of an ideal. It is love, and passion, and the impetus to pursue that which you truly want most out of life.

I hope that by beginning to view your success or failure ratio as a direct result of your own internal make-up and actions, you will move beyond blaming situations or luck for your present day reality and step into a powerful new recognition of your own key role in determining your outcomes and impact.

5 Benefits of Managing Ethics

International trainer, consultant, and founder of The Toxic Workplace, Tara Powers partners with organizations interested in improving their company culture to boost their bottom line.  If you're ready to make changes in your business that will make employees happy AND make you money, check out  www.PowersResourceCenter.com.

In top rated business schools across the country, ethics courses have seen an explosion of interest as students view running a business about more than just making money.

What is more important to this next generation of leaders is HOW you do business, HOW you make money and the impact business has on society.

Here are some examples:

• Nearly 20% of Harvard's 2009 MBA class signed the MBA Oath which states that they will act responsibly, ethically and for the greater good of society rather than striving for only their personal ambitions.  
• At Columbia Business School, all students pledge to honor a code which states they will not lie, cheat or steal OR tolerate anyone who does.
  

Can I get a big OH YEAH!!

It's not only responsible but crucial that businesses study and consider their impact on workers, community, and society. Once armed with that information ~ they can choose to do the right thing, even if it costs more. This is the definition of business ethics and what I believe can and will positively change our communities, our environment, our country, and our world. 

Still not sold on the importance of managing business ethics in your organization? Check out this list of benefits that may surprise you.

5 Benefits of Managing Ethics

1. A Focus on Business Ethics Has Substantially Improved Society and Working Conditions

If it wasn't for ethical standards being set, children would still be working in factories, 16 hour work days would be the norm, discrimination, abuse, and unfair labor practices would still be part of doing business. What's important to recognize is that change is happening and new standards are now being set. This is good for all of us.   

2.  Having a Code of Ethics Provides a Morale Compass During Tough Times

By having a code of ethics, it provides you a tool to make consistent decisions about what is right and wrong. This is especially helpful when making decisions in times of conflict.

3. Ethics Support Employee Growth and Provide Meaning to the Work They Do

By running an ethical operation, employees feel like they are contributing to society in a positive way. This sense of accountability provides meaning and context to what they do on a daily basis.

4. Ethics Programs Can Align with Personal Values and Improve Performance
If clear ethics are consistently communicated in your organization and discussions take place on how they align with personal values, it can develop motivation and collaboration in your organization.  Employees that feel strong alignment with their personal values and the ethics of an organization react with strong commitment and performance.

5. Clear Business Ethics Can Promote a Strong Public Image and Goodwill

Aligning behaviors with values is important in developing a positive image for your business. Today's savvy consumer is doing more research and watching more closely how businesses conduct themselves and if they truly "walk the talk". Consistently applying ethical values to everyday business decisions is the foundation to building a truly successful and socially responsible business.

© 2009 Powers Resource Center

Become the Threat!

Break the cycle of countering the competition! Many business consultants advise clients to study their competitors and play off their every strategic move to mimic successes and dodge failures. I respectfully disagree. In this post we will explore techniques to help you innovate rather than copying, and get ruthless about trying something different.

Most companies achieve conventional growth rates because they pursue conventional lines.In order to really rocket your results into another stratosphere, you have to abandon the status quo and make an abrupt change in behavior. That can be a tall order when money is tight and you’re stressed about the future, but it’s truly the only way to move beyond modest, incremental improvements in your bottom line.

Since the process of thinking outside the box obviously can’t be delineated in a neat list of bullet points, I’m instead going to give you some basic principles to help spark your imagination and help you see business development in a new perspective.

Accept failure. Our aversion to failure is what makes us perpetually play it safe. If we don’t do anything risky or dangerous, we’ll be less likely to fail. But if you’re experiencing no difficulties, problems, or pain, you’ve probably aimed too low. You aren’t pushing your limits. When Alexander Graham Bell was working on one of his many inventions, someone asked him why he wasn’t discouraged after failing thousands of times to build a working prototype. Bell snapped back that he hadn’t failed 1,000 times. He had simply succeeded in isolating 1,000 methods that didn’t solve the problem. To him, the exhausting process of eliminating options that didn’t work was success – not failure. You won’t reach your full potential if you aren’t willing to make mistakes.

Suspend disbelief. In business, most of us tend to operate on the principle that we must verify that success is probable before we make a move. But our most inspirational thoughts spring forth when we suspend disbelief for a moment and open up to a new plane of possibilities. Ask yourself, “What would I do if I knew I couldn’t fail?” Stop holding back because you don’t have hard proof that a crazy concept will fly.People typically only realize 10% of their full potential. Why not suspend doubt and skepticism by acting on one of your bold ideas?

Do the opposite. There is a Seinfeld episode where lovable loser, George Castanza, decides that all his instincts are obviously wrong and he will now do the opposite of everything that seems logical.He immediately sees a turn-around in his bad luck and makes money, meets women and starts having fun. It’s just a sit-com, but consider the natural principle of ‘ricochet’. By launching yourself in the opposite direction of where you want to go, you gain momentum and are able to leverage other things to move in the right direction.

Embrace the supernatural. Unseen forces… we all have different labels for them, but most people believe that there are invisible powers beyond us. I don’t think most of us have the strength and fortitude to achieve our dreams through our own singular effort. Embracing the supernatural is comparable to playing bridge: your bidding is based not only on your own cards, but also on your partner’s cards. Though you can’t see the value of those cards until you play your hand, you trust that they will bring additional strength to you when you need it most. Whether it is God, angels, spirits or sheer luck… leverage your belief in mystical powers to summon the courage to act on a breakthrough idea.

Second guess yourself. I know, I know… we’re always being told to trust our intuition. And a lot of times our gut instincts are right on the mark. But to move beyond the bounds of familiarity you have to second guess your initial reactions and push the envelope. Instincts are great, but they’re designed to help us survive – not thrive. If it’s thriving you want, you’ll have to rethink your tried and true responses and make a quantum leap into the unknown.

Risk more than you have to lose. A top-notch poker player (I can’t recall which one) once said that you don’t really learn to play the game until you risk more than you have to lose. When you have a net to catch you, you will automatically tend to hold back your best efforts and most creative ideas because everything is not at stake. But, if you are brave enough to risk so much that losing will hurt immensely, you are forced to play the best game of your life!

The business climate is very competitive right now. The ease of tweaking a competitor’s successful ad or copying a new service model can lure us like a siren’s song of proven performance. But that strategy will take your company from innovation to stagnation. Look inside yourself today for the opportunity, the vision, the timing and the courage to break away from the pack and try something new.

My advice to you is BECOME THE THREAT. While every smart business owner knows understands his differentiators and keeps an eye on the market, the most successful organizations step away from the norm and make their competition worry about them!

Look Before You Leap: A Price Increase Backfires

By David Berky

David Berky is president of Simple Joe, Inc. a marketing company that sells simple software under the brand name of Simple Joe. Thanks, David, for this simple reality check on price increases and how to do your homework beforehand!

I just got off the phone with a company that provides me a service for which I pay $600 each month. A couple of days ago I received a letter from them saying that due to economic factors, cost increases, blah, blah, blah they were going to raise my rate by a "modest amount".

Ok, so what do they consider a modest amount? I called them and found out that to them a modest amount was 8-10%; they weren't sure yet. I don't know if their definition of a "modest amount" struck me wrong or if I was just against paying more for this service, but I took the time to look in the phone book and find two of their direct competitors.

I called each competitor and got price quotes on the exact same service.

As you probably can guess, I found some lower prices (without even mentioning what I was currently paying). And it turned out that both of the competitors were priced about the same.

I then called my current provider and mentioned that their competitors would give me a price of $500 for the same service; $100 less! They said that they would research it and call me back.

I got a call a few hours later saying they wanted to keep my business and would be happy to match their competitor's price. I gave myself a pat on the back.

But I started thinking about how my current provider intended to raise my monthly rate by about $50 but ended up cutting their rate by $100. So rather than creating an additional $600 of cash for themselves next year, they are now going to take $1,200 less. I can't believe that would have been considered a good risk by anyone. So where did they mess up? By not doing their homework.

They did not take the time to compare my current rates with the rates offered by their competitors. If they had (and I am assuming they didn't because I can't believe they would take this risk), they would not have sent me the letter about increasing my rate.

The letter led me to call them to find out the actual amount of the increase. The significant (to me) price increase led me to call their competitors. Before the letter I was content to pay their fee. I hadn't planned on checking prices and making comparisons. But when they brought the subject of fees up, I took the initiative and ended up with a much better deal.

Maybe they were counting on most of their customers to roll over and accept it. But I wonder how many will now renegotiate their fees since the subject has come up.

They obviously have different customers on different fee schedules. So why wouldn't they take the time to determine which customers should have their fees increased and which should be left "overlooked" this year.

Customers who were paying close attention to their competitors fees would probably accept their "modest" price increase because of the hassle (read: barrier) of switching to a competitor. Even if they did a price comparison a small increase is usually not worth the trouble.

I guess the moral of the story is that before you bring up the subject of increased fees, make sure you know your customers' alternatives.

Emotional Quotient: Measuring Decision Making Ability

Thanks to Paul Cattermole for this insightful interpretation of the impact EI and EQ have on our leadership ability and earning potential! Visit http://www.catt-alyst.com/ to learn more!

Research has shown that high performance in any field is driven by good decision-making. Of course, high performance also requires other attributes such as general intelligence, technical skills, and training or experience. However, what separates sporadic high performance from consistent and sustained high performance is Emotional Intelligence (EI). EI when measured, gives one a score known as one's Emotional Quotient (EQ).

Dr. Daniel Goleman, one of the pioneering researchers on EI, notes the following:

1. CEOs are hired for their intellect and business expertise - and fired for a lack of emotional intelligence.
2. Those with high EQ are 127 times more productive than those with low EQ.
3. The key differentiator between star and average performers is their EQ.

Just think of that remark for a moment. Have you ever been managed by, or lead by, an individual who may be intelligent and skilled, yet "missed the boat" on how to get the best out of the people working for him or her? They did not make good decisions about how to lead or manage, nor were they skilled at building good rapport.

Decision-making has a significant impact on how successful, efficient and effective individuals are on the job. Not surprisingly, this ability is becoming more important for both employers and employees, and the pressure is on to deliver!

Our EQ indicates how well we can sense, understand and effectively apply the power and acumen of emotions to facilitate high levels of collaboration and productivity. The higher our EQ, the more we can leverage our awareness of emotions (both ours' and others') for being effective in decision-making and overall performance.

Whether we are aware of it or not, we make decisions based on emotions. Sometimes they are the right decisions to make, sometimes not. Wouldn't it be better for us to be able to make decisions from the head, as well as from the heart? At least then we would have a choice. Well, the good news is, we can - if we use our EI.

EI is categorized into two parts: intrapersonal intelligence (the ability to understand ourselves) and interpersonal intelligence (the ability to understand others), and each can be measured.

Intrapersonal EI includes:
Self-awareness - the ability to recognize and understand your moods, emotions and drives, and to understand their effect on others.
Self-regulation - the ability to control or re-direct disruptive impulses and moods and the propensity to suspend judgment and think before acting.

Interpersonal EI includes:
Motivation - a passion to work for reasons that go beyond money and status and a propensity to pursue goals with energy and persistence.
Social skills - a proficiency in managing relationships and building networks.
Empathy - the ability to understand the emotional makeup of other people.

Want to know more? Get a book to help you discover your EQ HERE.

Do Women Create Their Own Glass Ceiling?

Interesting study showing that female managers are more likely to underestimate how their work is valued. Say it ain't so, girls!

ALBUQUERQUE, N.M. - A new study shows female managers are more than three times as likely as their male counterparts to underrate their bosses' opinions of their job performance.

The discrepancy increases with women older than 50, the study states.

"Women have imposed their own glass ceiling, and the question is why," said Scott Taylor, an assistant professor at the University of New Mexico Anderson School of Management who conducted the study.

Taylor will present his findings Tuesday in Chicago at the annual meeting of the Academy of Management, a 19,000-member organization devoted to research and teaching.

"It's pretty fascinating, actually. It's a different take on it," said Leanne Atwater, a management professor at the University of Houston. Atwater has researched the standard management assessment tool that Taylor was examining when he discovered the gender difference.

In the study, 251 male and female managers from different industries nationwide rated themselves and requested ratings from supervisors, peers and subordinates. Each subject also was asked to predict the ratings made by others.

Taylor collected the data for the study in 2005 while a doctoral student at Cleveland-based Case Western Reserve University.

The ratings measured nine elements of emotional and social competence essential to leadership: communication ability, initiative, self-awareness, self-control, empathy, bond-building, teamwork, conflict management and trustworthiness.

The men who were studied slightly overestimated how their bosses would rate them, while the female respondents underestimated their ratings on average by about 11 percent.

Chelsea Walker, 52, an administrator for UNM's College of Pharmacy, participated in a similar exercise while taking Taylor's class and was shocked to find her results matched her professor's findings. "I was very, very surprised by his responses," she said. "I guess that I just didn't think that he thought that highly of me, even though I thought pretty highly of myself."

The exercise was a confidence booster, Walker said. Now, she takes five minutes during weekly meetings with her supervisor to discuss what she's done on the job, something she thinks men do more easily than women. "To me it's still uncomfortable to a certain degree," she said. "We're not out for the glory kind of thing. We're just out to get the job done."

Walker said her experience also reflected the generational difference found in the study.

"Younger women tended not to be as off-base in their predictions than middle-aged or senior women," Taylor said. Taylor said managers may need to learn better ways to communicate to female employees that they are valued. Women may need to learn how to better seek positive and critical feedback, he said.

Taylor says the findings could indicate why many women don't rise to head companies or why there is a wage disparity between men and women. In 2008, the Census Bureau estimated women receive only about 78 cents for every dollar that men get for doing equivalent jobs.

Bonnie Coffey, president of the National Association of Commissions for Women, said women are unable to predict their bosses' assessments because of media images, particularly those of older women, that show them as silver-haired beauties or grandmothers in dumpy dresses.

"If you recognize that society doesn't really value older women, then you say, 'Gee, this isn't where I belong. Maybe I shouldn't be asking for a raise. Maybe I shouldn't be speaking up at meetings," Coffey said.

Cara Waymire, vice president for human resources at insurance brokerage Hub International in Albuquerque, said when she works with female employees on getting raises or promotions, she notices they are more likely to focus on shortcomings rather than accomplishments.

"They think the boss needs to think they hung the moon in order for them to ask for anything," Waymire said.

Copyright 2009 The Associated Press. All rights reserved.

http://www.msnbc.msn.com/id/32364451/ns/business-careers/