My Favorites from Dieline's Top 100 Package Designs of 2010

I love Dieline's take on product design and packaging.  They have a great compilation of the top designs from the past year that you can see HERE.  But I'll show you a few of the super-stars (in my humble opinion).  As you can see, the themes seem to be sophisticated and retro, but always simple.  It is so heartening to see companies really stepping up to create gorgeous, eye-catching, sexy packaging!

 

    

 

 

 

 

Why Did I Rebrand?

Ta Da!  Akamai Consulting is now Trish Thomas Consulting.  A new name and a new look.

Let's discuss.

As my close friends and associates know well, I've been mulling over this wacky rebranding idea for a LONG TIME.  Some of them have probably grown weary of being a sounding board for conceptual names, logos, color schemes and taglines.  (Thank you, my dears!)  For all the rest of you to whom my new identity may come as a surprise, I 'd like to share why I elected to rebrand my consulting firm and hopefully you can glean a few nuggets from my journey to help you in building your own brand.

Let's begin with Branding 101: What is a brand?  Your brand is the emotional and psychological connection you have with your customers.  It certainly involves your mission, your logo and your name... but it's much deeper than that.  Those elements of your identity are the entry point and the shortcut to the brand in someone's mind. Brands are not concrete: they are the thoughts, feelings, and psychological relationships between a business and a customer. And a brand becomes the foundation of all your marketing activities.

The process of forming a brand is the result of "unrelenting passion, not unending spin."
John Moore

Why did I rebrand?

Few of you are aware (it was years ago), but I started Akamai Consulting with a business partner.  We had a very different vision at that time of what the firm would become than what has actually unfolded over the past 5 years.  The original intent was to build a boutique multi-location firm with a dozen or more consultants working across several core service lines.  Once I was operating the firm on my own and began to follow the ebb of the tide and the shifting of the wind, the practicality and appeal of that business model evaporated.  My intent today is to personally anchor a consulting firm that does leverage project team members to serve clients, but in which I am the sole promotional face and account manager for the business.  That new paradigm changed the branding game entirely.

To add another layer to my quandry, the word Akamai was problematic.  Coming from a marketing background I was well aware of the possible difficulties when we selected the name.  (We always assume that the rules won't apply to us if we really like something!)  In theory, Akamai was a perfect name for my firm.  My husband is Hawaiian and it is a great island term that sops up a miasma of wisdom, creativity, tangible skill and street smarts.  Anyone from Polynesia immediately got it.  My clients and friends who understood the history and meaning behind the term loved Akamai, and some are very sad to see it go.

But here's the kicker - and there's really no way around it... Akamai stood as an unnecessary layer between myself and my audience.  It's an unknown, unspellable, unpronounceable word.  People only bonded with the name once they had bonded with me - and that, my friends, is the tail wagging the dog.  Your brand should act as an immediate introduction to your business that begins to draw people in and inform them about who you are before they are even aware of it.  Akamai had the opposite effect, and because the firm will never have the bandwidth to educate the public at large about the meaning of specific terminology, that one word became a barrier to business.

The next factor that influenced my decision is that I am my brand.  People never made a referral to Akamai Consulting, they said "you need to call Trish - here's her number."  My clients work with me because they have faith in my own unique personality and abilities and character, not belief that a collective will deliver.

This profound distinction became painfully clear to me early last year when a long-time marketing partner moved away in the middle of a project that I had had very little to do with.  I was concerned that the client might take Julie's absence mid-project as a negative sign.  When she returned from meeting with the client to tell him about the change, she calmly explained that no one cared about her (her perspective - not mine).  My customer's reaction was that as long as I was at the helm he wasn't concerned at all about who came and went on the project.  He believed in me, and knew that the job would be completed with excellence no matter what.  As Julie said, "we're just nameless, faceless people who can come and go as long as you're behind the scenes."  Hmmmm.

That conversation, along with the fact that Akamai was seldom mentioned except by me, highlighted the need to bring my business identity into alignment with the natural connection between myself and my customers.  I only delayed as long as I did because a. rebranding is a huge pain in the butt and b. I was praying over what to morph into.  If not Akamai WHAT?

The new color scheme, minimalist fonts, and more modern feel simply reflect my personality.  Since the company is now me I can pick whatever tone and look I want to, right?

Remember, branding isn't about the name or the logo itself, it's about accurately reflecting the emotional and psychological bond that customers feel for your company.  Within the business, your brand serves as an internal compass. By clearly branding yourself, you gain an understanding of what you are really about. You gain a self awareness that dictates your actions.  My clients trust me... as a human being.  They rely on my unique instincts and skills and education and relationships to get a project done.  My brand desperately needed to reflect that reality and now I feel that it does.

And thus Trish Thomas (the brand) was born.  It always feels a bit surreal when you rebrand and definitely requires some time to fully adopt the new identity.  It's also incredibly time consuming and expensive.  But I love what I've created.  In a sense, I feel like the company has come full circle and is arriving at a place where it already was.

I never pass up an opportunity to use narrative to teach a lesson, so here comes the application of my tale to your world:  How do you know if you need to makeover your own brand?

The decision to rebrand is a serious one and can effect how customers see your company, good or bad. Ask yourself these questions and you'll get a pretty good idea of whether or not it's time to reassess your identity:

Are you experiencing a decrease in sales and customers?  If so, it may be time to rebrand. If you see that more of your customers are going to your competition, you have to look at your entire business and ask yourself, "What is my visual identity saying to people. Am I attracting people or repelling them?”

Do your look and function match?  From a cosmetic point of view, if you look outdated or your looks don’t reflect what you are or what you deliver, it may be time to rebrand.”  It is absolutely critical to match your external presence to who you really are.

Are you attracting the wrong customers?  If your company is no longer attracting the customers you want, it may be time to rebrand.  Rebranding isn't just a face lift, it's about switching your focus to reach your target audience and appealing to the right crowd.

Have you undergone a major change?  When companies bring in new management with a different set of values, or they adopt a new philosophy, or establish a new direction it may be a good time to think about rebranding.  A fresh new look or a catchy new name can shine a light on positive transformation.

Are you sick of your old brand?  This shouldn't always be a catalyst for a rebrand.  I have friends in marketing who would roll out a new logo every 3-6 months if they could get away with it just because they like design and innovation.  Brands are a serious business, and it's costly to revamp your entire image, but if you truly have deep-seated issues with your old brand you may want to make the investment in reinvention.

Thanks for taking the time to understand how my professional journey and vision is coming to life in my new brand.  Visit www.trishthomas.com to see the whole new face of the firm!

Professional Skills that Really Count

Advancing your education is great.  Seminars, webinars, night classes, books... all can give you tactical skills and ideas that you can use to improve your performance.  But what skills are most relevant to success in today's competitive workplace?  It's not always the things you think.

Here are some soul-searching questions to ask yourself.  Your answers will largely dictate your ability to thrive in a new workplace reality.

1. How good am I at solving problems and making hard decisions?  Fundamental creative skills are in hot demand.  Assess your ability to attack a problem and devise multiple viable solutions.  Be honest about your adaptability and willingness to react to unseen events and unexpected barriers.
2. How good are my analysis skills?  Data is not in short supply these days.  What most companies lack is people with the ability to assimilate data and use it to make decisions.  Are you able to integrate logic with intuition and look broadly to recognize actionable trends and key indicators?
3. How good am I at presenting and communicating information?  You can't influence major change without the ability to stand and deliver a powerful argument.  Honest communication that wows people with your authenticity and smarts will get you ahead.
4. How good am I at managing conflict?  Harmony is counter-productive at times and diversity is the new watchword in business innovation.  If you can preserve healthy work dynamics and lead others through crisis and disagreement you'll find your skills in high demand in the coming years.
5. How good are my listening skills?  The ability to speak clearly and present ideas succinctly is wonderful, but individuals who can listen and adapt their responses to influence others possess a priceless gift.  Listening, not just for words but for context and emotion, is an invaluable skill to nurture.
6. How good am I at building trust?  Trusting relationships are an absolute requirement in today's cut-throat work world.  And trusting relationships naturally emerge from your ability to exhibit behaviors that earn respect and encourage open, productive interactions.
7. How good am I at demonstrating appreciation?  A lot of workers today waste a great deal of time and energy constantly telling everyone around them how great they are.  Here's a tip... if you have to tell other people you're awesome - you aren't.  Expend your energy building other people up, accentuating the positive and offering genuine gratitude to the team around you.  It will pay big dividends.

Coping with Negative Publicity Before it Strikes

It's a fact of life... you can't please all the people all the time.

Every business or individual will go through a time when they face some type of negativity in the marketplace.  It could be disgruntled customers in online forums, a searing newspaper article or a personal attack based on events long past.  The catalyst for the negativity, or the channel by which it is made public, isn't nearly as important as your reaction to diffuse the situation and minimize damage.

I'm on the Board of the Better Business Bureau in Denver, Colorado.  Our BBB office is operated with impeccable professionalism and we enjoyed more media exposure than any other BBB in the country in 2010.  Bottom line, we serve consumers, accredited business, non-accredited businesses and the community with integrity and pride - but we have absolutely no control over the actions of other BBBs around the nation.  A few weeks ago a scathing report came out on a national news show exposing accrediting irregularities, manipulative sales techniques and poor business practices in several other BBBs.  We were very worried about the impact that the negative reporting would have on our relationships locally - even though the issues highlighted were not relevant to us.

Luckily, actions taken long before the troublesome story broke diffused the impact and gave us the ammunition and forum to deal effectively with concerns.  This approach is truly the key to coping with negative publicity.  Defend yourself against negative publicity before you have to.  By the time the story breaks you must already have a framework in place to mitigate the damage or it's too late. 

Here are my suggestions for actions you can undertake today to prepare yourself to deal with a worrisome public event down the road:

Manage your external image consistently and without fail.  Everything today is 'branded'.  Individuals have to manage a public image.  Products have to build a recognizable and respected consumer value.  Service companies have to support a track record of quality, affordability and reliability.  The best defense is a good offense, so make sure that you're doing everything in your power every day to build a positive and accurate public brand image that will stand up to an occasional hit.  Our BBB is well-known along the Front Range area for providing excellent dispute resolution services, fair ratings scales, consumer alerts for scams, and taking swift action against companies that breach marketplace trust.  Strong local awareness offered an insulating barrier of protection against a single negative news story that brought to light the failings of other BBBs.  Our media partners gave us a chance to voice our response and everyone moved on quickly with the assumption that the problems of other BBBs had little relevance to the performance of their well-known and trusted local office.


Sidestep landmines and lodge preemptive strikes whenever possible.  Here's the honest truth... a lot of times we know about a potential public relations nightmare before it comes out, but we take the ostrich approach - sticking our head in the sand and hoping it all goes away.  It usually doesn't go away.  So, if you've experienced a legal challenge, a customer service disaster, or a major failing JUST DEAL WITH IT UP FRONT.  Stand behind your value claims, clarify your intent, and address questions or shortcomings with candor about how you will not allow the problem to occur again.  Have statistics and research to back up your statements.  Take charge of your message and get out in front of the problem before the dialogue spirals out of your control and falls into the hands of your enemies.  Year's ago when Tylenol had to cope with deadly poisoning attacks facilitated through their product distribution chain, they took the right approach... they took control of public information, shared everything they knew, created call centers, conducted media interviews, processed prompt refunds and changed their packaging voluntarily to discourage future attacks without Federal intervention.  As a result, the brand only suffered a temporary setback and maintained the public trust in the big picture.

Never let anyone else take charge of your message or act as a shield.  People hate cowards, and they perceive companies that hide behind PR firms, pretty front men, and uninformed CS reps very negatively.  I'm not saying you shouldn't get outside advice, but seek professional help and then allow no layers to get between you and your audience as you deliver your message.  Don't allow pros trying to shield you from liability by lying or hiding information - even if their intentions are good.  9 times out of 10 that reaction will come back to bite you, and you'll never live the hypocrisy down.  BP would have fared much better in the court of public opinion if they had been more open all the way through the Gulf oil spill crisis.  They first denied oil was even leaking into the Gulf, then they minimized the amount, then they denied the damage to coastal wildlife, plant life and people, and finally they are muddying the waters in managing payouts and lawsuits.  Claims continue to swirl that they are spraying dispersant at night and yet nothing is said to confirm or deny everyone's suspicions.  In an information vacuum people will assume the worst. 

Be prepared for challenges to unpopular or controversial moves.  I'm always amazed when a company does something extreme that will obviously generate controversy and angst, and they seem stunned when there is public outcry.  Who advises these people?  If you know something will be traumatic for the public make sure you deal with the issue immediately and convincingly.  This is a pretty mild example, but when Republic Airways bought Frontier Airlines recently they seemed confused that faithful Frontier customers were concerned about saving the Frontier brand they had grown to love.  Management eventually 'wised up' and made an announcement that they had selected the Frontier brand to operate under, but why the delay and the passenger stress?  Republic had zero brand recognition or loyalty - they were a generic discount carrier.  Frontier's animal planes, adorable commercials and passenger-focused policies were beloved by millions.  Of course they were going to bring operations under the Frontier banner... duh. And they could have leveraged that good decision much earlier on in the merge by simply stating so publicly with much fanfare and celebration.

If you're already embroiled in a PR nightmare you obviously can't employ some of the proactive strategies outlined in this post.  But, if you're just trucking along doing business everyday and hoping to avoid a problem, please take the time and energy to set yourself up for good public interactions in the future - no matter what challenges you may face.

Creating a Value Proposition

One of the questions I am frequently asked is, "How do I communicate my real value to my customers?"  It doesn't sound that complicated, but understanding what your customers are truly paying for and learning how to frame a summary statement powerfully and succinctly is actually quite a mind-bender.

So, here is a brief process outline that will assist you in analyzing your own value proposition from the comfort of your desk.

1.  What is a 'value proposition?'  A value proposition is a clear and concise communication about the core benefits your business provides to customers based on their goals (not yours). The point of having one is to provide a compelling reason for people to want to do business with you.

2.  Here is a simple exercise that will assemble the key components for a value proposition by prompting you to answer questions about your business.

• What is your core business offering?
• Who do you serve?
• What differentiates you from other competitors?
• What are the specific solutions you provide that will meet your customer's objectives?
• What factual results have you achieved in meeting your customer's needs and wants?

3.  Next, you need to compile your completed responses into a coherent statement.  Here's an example of how to structure a value proposition:

"At XYZ IT, we focus on providing cutting-edge technology solutions to health care facilities and hospitals throughout the Midwest.  The difference we make for our clients is reducing technology costs, increasing the life cycle of technology equipment, and improving the experience of employees and patients at the facilities we serve.  Partnering with us for IT solutions allows our clients to increase profits without sacrificing convenience, affordability, accessibility of information or quality of care. Over the past 10 years we've slashed IT costs by 10% or more in over 100 health care facilities while earning an average satisfaction rating of 9.4 on a scale of 1-10 from our clients."

4.  Make sure that your responses to the questions really delve into the heart of what you offer your customers.  Remember that while you have your own goals, ideals and reasons for being in business, those will seldom align with why your customers will make a purchase from you.  If you don't know what your customers are really after just ask them and find out!  Get specific about:

• What are you really selling?  A perfume is probably not sold based on the combination of floral scents assembled in the formula or the shape of the bottle.  The perfume is truly selling sensuality or confidence.  
• What are the benefits to the buyer?  Let's shift to the example of scheduling software... the benefit of buying and using the software isn't the pretty calendar layout - the tangible benefits are really organization, productivity and control over time.
• Why make the decision to buy (value)?  This is where the rubber meets the road.  Address directly the problem that is driving your customers to you and provide proof that your solution is the best option available.

One of the keys to business success and salesmanship is being able to articulate the value of a product or service to potential buyers in a clear and compelling way.  I've seen many businesses fail that built a great product or delivered a very valuable service, but they couldn't convince customers to invest their hard-earned dollars in a sale.  Take a moment to examine your pitch and make sure that the value proposition you're putting out into the marketplace is worthy of attention.

HELP! I'm An Underperformer.

By: Amy Gallo

No one likes to be an underperformer. It can be embarrassing, discouraging, and bewildering. Yet, many of us have at times failed to meet expectations. The good news is that poor performance isn't incurable. It's possible to turn it around and save your reputation with awareness, a sincere approach, and the right support.

What the Experts Say
"Usually a person doesn't realize that he or she is the underperformer," says J. Richard Hackman, the Edgar Pierce Professor of Social and Organizational Psychology at Harvard University and author of Leading Teams: Setting the Stage for Great Performances. Sometimes a boss, teammate, or HR representative will tell you you're not up to snuff, but according to Hackman, it happens less than it should. No matter how your underperformance is identified, by yourself or another, owning up to it is an important first step. "If you're underperforming, chances are that everybody knows it. If everybody knows it, let's acknowledge it because at least then we are all living in the same world," says Jean-François Manzoni, Professor of Leadership and

Organizational Development at IMD International and co-author of The Set-Up-to-Fail Syndrome: How Good Managers Cause Great People to Fail. Once you've done this, follow these guidelines to improve your situation.

Accept and understand it
"We all have an amazing capability for retrospective sense-making, which allows us to rationalize difficulties as 'not my fault'," says Hackman. It's easy to be defensive about not pulling your weight, especially because the underlying reasons are rarely straightforward. There is often a complex set of causes. You may be managed poorly or have inherited a weak team. Whether there is concrete data, such as sales numbers, or consistent feedback from your boss, peers, or direct reports, it's important to balance the information. "For someone struggling, the tendency is to attribute too much to external events," says Manzoni. This is largely because of self-serving bias. For example, you may believe you have a tougher sales territory or a more difficult team.

While those things may be true, there are probably aspects of your own behavior contributing to the failure too. Manzoni recommends taking a hard look at your performance and distinguishing between what you can change and what you can't. Hackman suggests asking colleagues for their input to better understand how you are missing targets. But don't just ask: "How am I doing?"

"It's generally much more constructive and helpful to seek confirmation and disconfirmation of one's own assessment than to ask someone to respond to an open-ended question about one's performance," Hackman says.

Ask for help
"If you're screwing up, you should be open with your boss," urges Manzoni. Many bosses respond better to "I need help" than they do the various rationalizations and explanations that often accompany poor performance. Be concrete about what you ask for. "Others will be more open to helping you if you show them how they can help, and you show them you are taking responsibility for what's in your control," says Manzoni.

Involving others — peers, mentors, even direct reports — can also be helpful. Ask for feedback about how you are performing and advice on how you can improve. These discussions serve two purposes. One, they help you gain useful insight into your own behavior. Two, they also let people know you are working on the issue. If they know that, they are more likely to give you the benefit of the doubt in assessing your future performance.

Decide what to focus on
Hackman recommends using a three-part checklist to assess the underlying causes:

1. Effort. Am I putting enough time and energy into the work?
2. Strategy. Am I working smartly rather than relying on routine?
3. Talent. Do I have the skills, knowledge, and capabilities to do my job well?

"Just asking one's self those three simple questions often will surface some concrete things one can do to improve," says Hackman. Use the answers to decide where to focus your efforts.

Restore your reputation
As you begin to turn your performance around, you may realize that your reputation has been damaged. "The most telling and valid signal is whether you are actively sought out for the most challenging and important work, or whether you are overlooked when something comes up that really counts," says Hackman. If this happens, you need to pay careful attention to how you appear to others. "You not only need to perform better, but you need to be seen to perform better," Manzoni says.

Once you've made some progress, share your success with others. Ask for feedback to confirm they see improvements. Hackman recommends saying something such as, "I've been doing some work to improve the degree to which I do X. Have you noticed any changes? Are there additional things you might recommend I consider?" He cautions, "There always is a reputational lag. It will take some time before improvement is noticed, and even more time before people actively seek you out for the important work."

If all else fails, consider a change
There are occasions when you might find it too difficult to restore your reputation. Even if you make objective progress, others may not recognize it as such. It's also possible that you realize that you are underperforming because you are disengaged or uninterested in the work. In both these situations, consider moving on, either to a new team or a new employer. As Hackman says, "Sometimes withdrawing really is the best option."

Principles to Remember

Do:

• Recognize what is in your control to change and what isn't
• Sincerely ask for advice and feedback
• Include others in your improvement efforts so they can see and appreciate your progress

Don't:

• Be defensive about your underperformance and try to blame it on outside events or other people
• Assume that just because you are improving, others recognize it
• Stay at a job where you've become permanently labeled an underperformer

Adaptability: A Prized Skill

"Be ready at any time to make a 180 degree turn in your business."  Emily Spencer

People who have the ability to instigate and manage change are a hot commodity right now.  Why?  More than any other time in recent history (except, perhaps, the Great Depression) corporations rise and fall on their ability to adapt to ever-shifting market conditions and fickle consumer demands.  Individuals who embrace and drive innovation are extremely valuable and enjoy compensation and job security that is envied by the change-averse masses coping with unemployment and under-employment.

What are some core traits of these amazing adapters?

Bold plans.  Adapters and innovators are masters at developing a dream and conveying it to other people in an actionable form.  They create the future through mindful thinking, envisioning a new reality through their own lens and filling it with color and texture.  They assemble players who can implement the vision and they compile data and statistics to back up their concepts.  But they never discount the role of creativity and intuition in the planning process, and that gift allows them to beautifully merge proven approaches with revolutionary ideas to achieve great things.

Market pain.  Adaptation for the simple sake of 'change' is useless.  You have to drive strategic transformations that meet the needs of the unique people who buy your products and services.  Adapters and innovators are adept at rooting out the pain in the marketplace and responding to subtle opportunities to solve problems and make customers feel good.  By listening, soliciting outside opinions, and taking direction from the marketplace, adapters can be crucial to driving wise changes that will generate huge paybacks.

Alliances.  Professionals who embrace adaptation are typically not shy about leveraging relationships and partnerships to get things done.  It harkens back to the old adage "a cord of three strands is not easily broken."  We're always better equipped to make good decisions when we're working with a team of smart people than in isolation.  By valuing diversity and pulling together advocates who understand the business, innovators can be a catalyst to take an entire company to the next level by facilitating collaboration and new ideas.

Saying 'No'.  Adaptive and innovative personality traits go both ways... they don't simply create yes-men for every cutting-edge concept - they also build individuals who are able to stand against the crowd and question the status quo when necessary.  Protecting the best interests of a business venture sometimes requires strong people to say no or force groups to rethink standard approaches to problems.  Adapters unique ability to think outside the box and challenge preconceived notions makes them priceless when a enterprise is sailing into uncharted waters.

Fight.  No, no, no... I'm not talking about people who like conflict for conflict's sake.  I'm referring to individuals who are willing to go to bat for the things they believe are true.  Allowing a team or department to develop a 'herd mentality' is a death sentence for innovation and change.  Adapters simply don't allow that dynamic to develop in the first place, because they stand up for their beliefs, defend their positions in healthy debate, and stick to salient points and lucid arguments to win the day.  The ability to take a leadership role and refuse to be derailed by change-averse peers or subordinates can be the single biggest factor in whether a great idea comes to fruition or gets lost by the wayside.

So, as you peruse this short list of adapter traits, ask yourself, "Do I exhibit these behaviors in my career?"  If not, you might want to try shifting your mindset and approaching your work from the perspective of embracing change rather than fearing it.

Six Keys to Being Excellent at Anything

By: Tony Schwartz (HBR Blogs)

I've been playing tennis for nearly five decades. I love the game and I hit the ball well, but I'm far from the player I wish I were.

I've been thinking about this a lot the past couple of weeks, because I've taken the opportunity, for the first time in many years, to play tennis nearly every day. My game has gotten progressively stronger. I've had a number of rapturous moments during which I've played like the player I long to be.

And almost certainly could be, even though I'm 58 years old. Until recently, I never believed that was possible. For most of my adult life, I've accepted the incredibly durable myth that some people are born with special talents and gifts, and that the potential to truly excel in any given pursuit is largely determined by our genetic inheritance.

During the past year, I've read no fewer than five books — and a raft of scientific research — which powerfully challenge that assumption (see below for a list). I've also written one, The Way We're Working Isn't Working, which lays out a guide, grounded in the science of high performance, to systematically building your capacity physically, emotionally, mentally, and spiritually.

We've found, in our work with executives at dozens of organizations, that it's possible to build any given skill or capacity in the same systematic way we do a muscle: push past your comfort zone, and then rest. Aristotle Will Durant*, commenting on Aristotle, pointed out that the philosopher had it exactly right 2000 years ago: "We are what we repeatedly do." By relying on highly specific practices, we've seen our clients dramatically improve skills ranging from empathy, to focus, to creativity, to summoning positive emotions, to deeply relaxing.

Like everyone who studies performance, I'm indebted to the extraordinary Anders Ericsson, arguably the world's leading researcher into high performance. For more than two decades, Ericsson has been making the case that it's not inherited talent which determines how good we become at something, but rather how hard we're willing to work — something he calls "deliberate practice." Numerous researchers now agree that 10,000 hours of such practice is the minimum necessary to achieve expertise in any complex domain.

That notion is wonderfully empowering. It suggests we have remarkable capacity to influence our own outcomes. But that's also daunting. One of Ericsson's central findings is that practice is not only the most important ingredient in achieving excellence, but also the most difficult and the least intrinsically enjoyable.

If you want to be really good at something, it's going to involve relentlessly pushing past your comfort zone, as well as frustration, struggle, setbacks and failures. That's true as long as you want to continue to improve, or even maintain a high level of excellence. The reward is that being really good at something you've earned through your own hard work can be immensely satisfying.

Here, then, are the six keys to achieving excellence we've found are most effective for our clients:

1. Pursue what you love. Passion is an incredible motivator. It fuels focus, resilience, and perseverance.

2. Do the hardest work first. We all move instinctively toward pleasure and away from pain. Most great performers, Ericsson and others have found, delay gratification and take on the difficult work of practice in the mornings, before they do anything else. That's when most of us have the most energy and the fewest distractions.

3. Practice intensely, without interruption for short periods of no longer than 90 minutes and then take a break. Ninety minutes appears to be the maximum amount of time that we can bring the highest level of focus to any given activity. The evidence is equally strong that great performers practice no more than 4 ½ hours a day.

4. Seek expert feedback, in intermittent doses. The simpler and more precise the feedback, the more equipped you are to make adjustments. Too much feedback, too continuously can create cognitive overload, increase anxiety, and interfere with learning.

5. Take regular renewal breaks. Relaxing after intense effort not only provides an opportunity to rejuvenate, but also to metabolize and embed learning. It's also during rest that the right hemisphere becomes more dominant, which can lead to creative breakthroughs.

6. Ritualize practice. Will and discipline are wildly overrated. As the researcher Roy Baumeister has found, none of us have very much of it. The best way to insure you'll take on difficult tasks is to build rituals — specific, inviolable times at which you do them, so that over time you do them without having to squander energy thinking about them.


I have practiced tennis deliberately over the years, but never for the several hours a day required to achieve a truly high level of excellence. What's changed is that I don't berate myself any longer for falling short. I know exactly what it would take to get to that level.

I've got too many other higher priorities to give tennis that attention right now. But I find it incredibly exciting to know that I'm still capable of getting far better at tennis — or at anything else — and so are you.


Here are the recent books on this subject:

* Talent is Overrated by Geoffrey Colvin. My personal favorite.
* The Talent Code by Daniel Coyle
* Outliers by Malcolm Gladwell
* The Genius in All of Us by David Schenk.
* Bounce by Mathew Syed



Tony Schwartz is president and CEO of The Energy Project. He is the author of the June, 2010 HBR article, "The Productivity Paradox: How Sony Pictures Gets More Out of People by Demanding Less," and coauthor, with Catherine McCarthy, of the 2007 HBR article, "Manage Your Energy, Not Your Time." Tony is also the author of the new book "The Way We're Working Isn't Working: The Four Forgotten Needs that Energize Great Performance" (Free Press, 2010).

Recession-Era Entrepreneurship

It might seem like a recession would be a terrible time to launch a new business, but actually there are some great arguments in favor of recessionary economies as a prime time to engage in entrepreneurship.  If you're struggling in a sagging job market, ready to change careers, or have a brilliant idea for a new company, right now could actually be a great time to act.

One of the biggest struggles when you launch a new enterprise is controlling overhead costs.  Recessions offer ample opportunities to land a great office, warehouse space or manufacturing site at fire sale prices.  Commercial real estate units see higher than normal vacancy rates (unfortunately, due to other businesses failing), and rent is typically cheaper than the square footage rates you'll see during boom times.  Equipment is another area you realize big savings.  Reasonably priced used equipment, furniture, fixtures and vehicles will be on the market, and pricing for new items is usually highly competitive.  By setting your business up as cheaply as possible and locking in low lease rates long term you can ensure low overhead during your crucial early years.

Talent is another vital component to the start up game.  In order to succeed against better funded, well-established competitors, you have to be able to pull the best and brightest into your company as early as you can afford them.  During a recession good talent is plentiful and inexpensive because people need jobs and are willing to work harder for less money.  If you can draw some key players into your inner circle for a song, they'll be appreciative for the position during a tough time and strive to make your new venture a success.  And, as the economy recovers and the job market eases, you'll ideally be in a position to pay higher wages and sweeten deals for proven performers to keep them on board long-term.

Lastly, recessions place a great deal of stress on existing businesses.  And that stress opens the door for them to make mistakes and scramble, leaving you a prime opportunity to steal their customers.  There is no better time than a recession to capitalize on a dominant market player who decides to cut customer service staff, slash marketing budgets, close locations and generally annoy their customer base.  Their stumble can become your big break, and offer a great chance to snap up customers that would never have switched to your company without a major failing on the part of the known brand.

So, while launching a new venture is never easy and you'll certainly face obstacles, there are some really great reasons to invest your time and resources in founding a new company right now.  When the market is in flux and transition is everywhere - that is the time to make your move.

The Miracle of Making Mistakes

HBR Blogs
Vineet Nayar

* On:
* Talent management,
* Leadership,
* Organizational culture



Make no mistake: The fear of making mistakes is deeply ingrained in our psyche.

All through school, a mistake indicates the prospect of lower grades. Good students don't make mistakes. At home, mistakes lead to admonishments. Good children follow the rules. At work, mistakes have serious repercussions. Good workers get it right the first time.

But, in those very schools and organizations where we are marked down for making mistakes, we also learn that people often stumble upon great inventions. There's growing evidence to suggest that innovation flourishes when people are given the space to make mistakes. Even Mahatma Gandhi attached value to experimentation; he believed that "freedom isn't worth having if it doesn't include the freedom to make mistakes."

Why then don't we allow, much less encourage, making mistakes? Most of us, particularly in business, fight shy of them. We believe that people will see a faux pas as incompetence. We also feel that success is driven by our image as experts rather than as learners. And the measures of our performance are numbers such as sales, profits, total returns to shareholders, and so on.

Are these really the best measures of success? Consider an alternative. What if we were to ask employees what mistakes they committed because they did something differently? What did they learn?

Does that sound a little crazy? It may, but we have to bring the human element back in business; we can't function as extensions of computer programs. Some mission-critical and life-threatening tasks may have zero tolerance for failure, but not the rest of our work and lives. I'm not suggesting breaking every rule; I feel we should institutionalize the art of making mistakes; introduce a method for the madness; and innovate the innovation process.

Imagine encouraging an employee to keep trying to solve a problem until he or she makes, say, five mistakes. Imagine asking team members whether they have made their five mistakes yet! Trust me, if you aren't making mistakes, you're not learning — or, at least, you're not learning enough.

Do you remember the first time you rode a bicycle? Can you relive the exhilaration of riding free, the sense of triumph as you broke free of the crutches of support? Now step back. How many times did you fall off the bike before that first ride?

I remember my first class in engineering school during which our professor asked us to dismantle an engine. We did that. Then he asked us to put it together and walked away. We messed that up big time and had to work at it for days. I learned more about engineering in that short time than I did in the next four years. Why don't you ask your employees to dismantle something and then, give them the time but not the help to put it together?

Do you have the nerve to encourage the mistakes that people will inevitably make on the path of discovery?

Which Time Management Style are You?

Last week I did a presentation on Time Management Personality Types. Some of the descriptions seemed to strike a chord with many people in the room. Take a look at these common styles and see if one applies to you:

The Fireman - For you, every event is a crisis. You're so busy putting out fires that you have no time to deal with anything else - especially boring, mundane things such as time management. Tasks pile up around you while you rush from fire to fire all day.

Firemen lose an amazing amount of time and efficiency as they bounce from one task to the next, never finding completion. They get bored with repetitive tasks, even if they are a high priority, and move on to things that are more interesting. Firemen forget that their lives are no different from anyone else’s – they just choose to continually refocus on the next ‘emergency’. They are always dreaming about the next deal, the next sales conversation, or the next company they will be working for.

Firemen need time management systems that keep them on track and make their days flow smoothly. Because Firemen aren’t good at mundane tasks, they like time management systems that are simple to update and easy to use, plus stay in their face throughout the day pushing them to maintain their focus on what’s really important. A written list or home computer that can be ignored may not work for a Fireman – an incessantly beeping alarm is more in tune with their personality. Firemen need to consciously allocate time for everyday tasks and take active measures (like closing their door and turning off their phone) to keep their mind on the present moment.

The Perfectionist - You have a compulsion to cross all the "t's" and dot all the "i's", preferably with elaborate whorls and curlicues. Exactitude is your watchword, and you feel that no rushed job can be a good job. Finishing tasks to your satisfaction is such a problem you need more time zones, not just more time.

Perfectionists are in search of something that doesn’t exist, and that unachievable vision sucks away their time. They continually notice all the mistakes and deviations from what’s “right.” They have a critical inner voice that is constantly raising the bar and pushing them to do things correctly. The problem is that Perfectionists lose productivity as they spend hours and days working to improve things beyond what is reasonable or required. They get lost in the minutia of work and lose track of the big picture. Perfectionists also have trouble letting people help them and delegating tasks, as they believe no one can perform up to their high standards.

Perfectionists need a detailed and thorough time management system that allows them to keep track of all the variables and information they require to feel in control. They probably can’t fit all the information they want to see on a weekly calendar and may prefer to order their lives day-by-day. Their own customized system may be required so that it lives up to exacting standards. Because they want everything to be neat, orderly and up-to-date, electronic time management tools can be better than paper because they keep the Perfectionist from writing and rewriting their lists and plans incessantly.

The Over-Committer - Your problem is you can't say 'No'. All anyone has to do is ask, and you'll chair another committee, take on another project, or organize yet another community event. You're so busy you don't even have time to write down all the things you have to do!

Over-Committer’s good intentions create big problems. They take on more than they can handle thinking that they are doing other people a favor, but in reality they generally end up doing nothing well because of their unrealistic schedule of obligations. They are harried, usually late, and frequently grouchy – but they have no one to blame but themselves! Over-Committers try to do too much, and in spite of their intentions, they often are unable to follow through. It’s better to say no to some things and do the important things with excellence.

Over-Committers primarily need a time management system to remind themselves to maintain balance. They should engage systems that block time for various things and allow dedicated work time for all the miscellaneous duties of everyday life. Whether it’s paper or electronic, the simple act of writing lists and timelines will probably help Over-Committers recognize the limitations of what they are capable of - and remember all the things they’ve already said ‘yes’ to!

The Snoozer - There is such as thing as being too "laid-back" - especially when it starts interfering with your ability to finish tasks or return phone calls. Getting to things when you get to them isn't time management; it's simple task avoidance.

Snoozers tend to be emotional, artistic, creative, and introspective. They get lost in the moment and cannot stay on task. Difficult, meticulous or mundane tasks simply aren’t fun, but they have to be done. Snoozers are fantastic at avoiding budgeting, record keeping, entering data, or making decisions, often relying on their intuition alone to see them through. Delay is nothing more than denial. If something has to be done, whether it’s fun or not, it’s best to just do it!

Snoozers need a steady stream of reminders to get through the day. They need a detailed time management system that will allow them to cover all their bases so that important tasks cannot be forgotten or skipped. The automation of electronic systems can be helpful in programming reminders far in advance and keeping Snoozers on schedule. And remember, if a system takes too much effort to maintain, it will simply become one more thing that the Snoozer puts off doing.

The Talker - Born to socialize, you have astounding oral communication skills and can't resist exercising them at every opportunity. Every interaction becomes a long drawn out conversation - especially if there's an unpleasant task dawning that you'd like to put off.

Talkers have plenty of good points. They are emotional, engaged, and invested in relationships and intimacy. But they often get drawn into tasks that are not in their best interest. They lose track of their priorities and long-range objectives to assist others. Their love of conversation and people interaction can lead to days and weeks of wasted time and energy.

Talkers are sensitive, touchy-feely types and they generally like paper systems. Contact management and appointment schedules will usually take precedence over task lists. That being said, task lists are the thing that Talkers need to focus on the most to get things done. They need deadlines, clear priorities and motivation to complete their to-do list. Visualizing the stages required to accomplish goals and seeing the big picture can be crucial to managing their time wisely.

Tips for Collecting on your Invoices

Many business owners struggle to collect on their outstanding invoices. Customers tend to pay slowly, minimize the threat of action and focus first on bills that may result in the phone or electricity being turned off. So if you have nothing to leverage, and no ongoing service to discontinue, how do you get people to pay?

Collections aren’t fun – there is no doubt about it. And since most small businesses today have personal relationships with customers that they have worked hard to acquire, heavy-handed collection techniques can feel vicious or counter-productive. On the flip side, the lack of steady collection activity can lead to mad scrambles for capital and hard feelings toward lax customers. This article is intended to show you a better way to get the money that is owed to you… to help you build an organized collection system that you can feel good about.

Any collections system should be an orderly process that moves progressively through layers of increasing intensity and urgency and consequences. The levels of motivation to pay should play out as follows:

1. Incentives to pay early.
2. A reminder notice before the due date.
3. Friendly, sporadic communications referencing the past due balance.
4. Polite but firm reminders that are frequent and urgent and add penalties.
5. A ‘final’ notice.
6. Referral to an attorney or collection agency.

Let’s look at each motivation level individually and explore what the process would look like.

Motivation to pay early. It’s not widely known, but many mid-size and large companies (and even some small businesses) have a policy that requires bills to be paid at discounted rates if they are offered. That means that if you have an invoice that is due in 30 days, but you clearly offer 2% off the total for payments remitted within 10 days – the accounting staff may be required to take the offer and pay early! Even some individual consumers will be enticed by a small reduction in their bill and pay ahead of schedule with a motivating discount.

A reminder notice. Most companies don’t send a friendly reminder notice 5-10 days before a bill is due, but that simple step can really reduce the number of overdue invoices you deal with. It reminds customers of the reasons that they should pay before the due date passes while they still have time to act. The bottom line is that everyone is busy and cash-strapped, so keeping your bill in the forefront of people’s mind in a polite and helpful way can mean that you get your money before another guy gets his.

Friendly, sporadic communications. Once an invoice has gone beyond its due date, you should start by assuming the best about your customer – times are tight, they got busy, your bill got mislaid, etc… Your early past due notifications via telephone or mail should take the approach of friendly reminders or simple balance statements, and they should offer the customer one last chance to avoid a late fee (i.e. “Your bill is now 5 days past due. If you remit payment by the 15th of the month we will waive our normal late fee of $25 as a thank you.”) This phase of the process should stay light, non-threatening and continue to offer positive incentives to pay up.

Polite, but firm reminders with increasing frequency. If you’ve made 3-6 contacts over 30-60 days and the customer still has not paid their bill or explained why, it’s time to step up the urgency of your communications. This is the stage in which you make repetitive phone calls and send more frequent notices. Late fees and interest should be applied to any balances due and you should state that charges will continue to accrue until the bill is paid. You may also let the customer know that credit will not be granted on any other purchases and that you will consider requiring up-front payment in the future. In spite of the more heavy tone, I urge you to avoid accusatory language and demonstrate openness, even while being firm in your demand for payment. This is the stage at which you might make an offer of payment terms if you are open to that type of arrangement. (i.e. “If you remit 1/3 of your balance this month, we will accept 1/3 next month and 1/3 in June.”)

Encourage your customers to call and discuss payment options with you in person, and state that you are sympathetic to difficult situations and want to help resolve the balance fairly. Most people have a very negative view of the collection process and assume that there is no room to bargain or delay payment. No one likes drowning in guilt or being made to feel like an irresponsible person, so be sure that you don’t project those negative emotions onto your customers. If you demonstrate your willingness to talk, they may at least call and give you a true picture of what is going on - and that will translate into better knowledge of your own financial picture.

Send a ‘final notice.’ Every business reaches a point where they really need to get paid or stop dealing with a past due invoice in-house. This is the time to send a final notice letter. You should state in no uncertain terms that while you value your customer and want to work with them to resolve their debt, you simply cannot allow the bill to remain on your books any longer. For most businesses this timeframe is between 90 and 180 days. It’s often a good idea to send a final notice via FedEx, UPS or Priority Mail just to lend some credibility to the letter and track receipt of the message.

Two things are important about final notices... First, a final notice should really be final. Some companies start sending out rude and threatening letters at the 30 day mark and they really don’t mean it. Your final notices won’t have teeth if you keep them coming for months on end with no tangible action. Second, you should clearly state that the customer still has time to pay (give a short deadline) and tell them exactly what will happen if they don’t. (This could be sending their balance to a collection agency or hiring an attorney.)

Having a systemized approach will make collections much less painful for everyone involved - your customers, your staff, and you. Set up a schedule of activities for your team and assign someone to handle each collections task. Give them telephone scripts, templates of various collection letters and a detailed time table of when to perform each activity.

The benefits of a formal collections system are many, including improved cash flow, realistic expectations about receivables, better customer relationships, happier staff members and, of course, higher profits!

Leadership in Uncertain Times

Imagine "...the moment in 1492 when somebody thought This is it: the absolute edge of no return, to turn back now and make home or sail irrevocably on and either find land or plunge over the world's roaring rim."

William Faulkner wrote this beautiful passage about facing a desperate crossroad, and making a decision in the face of uncertainty in his novel Intruder in the Dust. It aptly sums up the enormity of responsibility of leadership, and the critical need for it.

There is a pervasive illusion stalking executives and managers today. The illusion is that they should have concrete certainty about all the answers all the time. To the contrary, leadership is in fact necessitated by uncertainty and the element of intuitive guessing never fully vanishes from the leadership landscape.

We're definitely coping with uncertain times right now. Upheaval in financial markets, lack of confidence in government, global unrest, war and economic stress are causing companies around the globe to question their strategies and budgets. These are the very times when leadership is crucial - and sometimes proves to be the dividing line between success and disaster.

When everything is rosy, everyone is getting along, and there is no uncertainty people don't need leaders. As Jim Kouzes puts it, "Uncertainty creates the necessary condition for leadership." If you find yourself in the uncomfortable position of having your team look to you during a critical juncture - don't panic! Don't be tormented by the assumption that you have to know exactly what to do at any given moment.

Leadership in uncertain times requires a few simple practices:

Embrace change and uncertainty. The longer you lead and the more responsibility you accept, the more you will inevitably face change. It can be your friend, or it can be your enemy, but it will not go away. How you view it is entirely up to you. You can never hide uncertainty from your followers, so it's best to embrace upheaval and make peace with the unknown; which will allow them to trust your strength and confidence while understanding your humanity.

Have clarity of vision. All great leaders know where they are ultimately going. They may have to sail through uncharted waters to get there, but they aren't uncertain about the end goal. Having an unwavering vision of the final prize will give you the fortitude to overcome difficulties and confront unknowns along the way.

Use what you already know and call your shot. When a general at war is faced with a do-or-die battle situation, what does he do? Does he say 'I can't command my troops because I don't have complete information'? Of course not! He draws upon historical facts, his knowledge base, the expertise of other people and intuition and he gives the order. Be decisive.

Measure success by the score, not the play. In sports, we accept that coaches make guesses and shift their strategies to suit the game situation. Somehow we don't acknowledge the same ever present give-and-take in the business world. Educated guesses and gutsy moves won't always work out, but if you measure your progress by the larger game score and not the individual play, you'll find that you most likely win more often than you lose.

Leadership involves taking other people on a journey with you - often to places you yourself have never been. You'll face unanticipated problems and have to change your plans to deliver the big win - that's life. But you must remain clear even when you are not certain. You must make decisions and stick with them. You must guide your team confidently and own the results of every decision you make.

Strong leaders will survive a few bad decisions... what they won't survive is a lack of vision or faltering courage. If you were captain of that ship of destiny in 1492 and you reached the point of no return, what would you do? Go home, or sail irrevocably on towards the world's roaring rim.

Problem Solving

Most of the clients I work with are trying to solve problems. I happen to be a person with a natural knack for fixing things, and it's sometimes disheartening to watch people struggle so much with troubleshooting, brainstorming solutions and solving problems. Over the years I've learned a few tricks that will help you find solutions for situations that are bugging you.

One of the most basic observations I've made about problem solving is that you can't examine something from the same point of view that created the issue and expect to fix it. You have to change your mind in order to see all the possibilities and options that exist. You cannot get a fresh perspective on how to resolve or cope with a problem unless you can step back from your typical mindset and look at the issue with new eyes.

Think about global warming... our biggest barrier to working together to solve the problem is that our entire social structure is oriented toward instant gratification and excessive consumption. Until we can look at the destruction of the planet from a different perspective and formulate creative solutions that are outside of our current way of living, we won't make any progress.

Another barrier to effective problem solving is reliance on historical information. Now you might say, 'but isn't historical data helpful in knowing what will work and what won't work?' Sometimes. The trouble is that a historical perspective will never let you look beyond what has already been tried. And, truthfully, the success or failure of an innovative idea that hasn't been attempted before cannot be measured by looking backward. Even ideas that have been tried at some point may work out completely differently in a new situation and a new time frame. So don't be afraid to try something new or resurrect a brainstorm from the past.

Letting go of preconceived notions is another huge leap toward solving problems. Having a closed mind that is deeply attached to established beliefs is a surefire way to go through life facing down one tough problem after another with no ability to find a solution. Try to allow your mind to open up to all possibilities, and don't harbor expectations for certain outcomes or make blanket judgments.

Have you ever been in a relationship that went through a 'rough patch'? It's really hard to continue a healthy, happy relationship after bad experiences because of our innate need to hold onto our notions of how our partner might hurt or disappoint us. Thanks to our negative attitude and horrible expectations, the relationship develops a natural tendency to become negative and horrible. But, by letting go of the outcomes we've been trained to expect, we can open the door for a positive experience and build a new, loving bond with the other person.

Don't be overly attached to the things you believe are 'right' or 'good'. The best problem solvers are willing to look at any and every option to uncover the one that works best. Opening your mind doesn't mean that you have to end up accepting everything - it simply means that you are open to new ideas and are not overly attached to your old ones. Your ego makes it hard to open up like this, but it's truly the only way to get innovative and fix the things in your life that seem hopelessly broken.

We all have problems. No one is immune. But if you can consciously work to re-program your approach to the problems in your life, you can learn to see them with new eyes and push through to a solution quickly.

Stopping Just Short of the Finish Line

In my business of working with entrepreneurs and business owners to achieve growth and manage change I take on many roles. Some days I feel like a counselor, a teacher, a coach, a cheerleader or even a cop! There are some critical facets to my job that have nothing to do with an MBA or marketing savvy or the ability to make projections and plans. Sometimes the most important thing I do for a client is to hold them accountable for their dreams and push them across the finish line.

It's apparent to me that many professionals stop short of reaching their intended goals - usually because they are playing it safe and refusing to step outside of their comfort zone. We all love our comfort zone, but it's NOT the place that makes you great. Think about runners in a marathon... if they all stopped running when it got uncomfortable, few people would make it beyond mile 5. Our shining moments, heroic acts and greatest payoffs come from places of discomfort and risk. We each have a tendency to allow our fear of screwing up or failing to prevent us from taking advantage of opportunities and winning the race.

Don't stop short of your intended goals. If you have an aspiration - go after it with a vengeance, and run straight on to the finish line.

20 Indicators your Financials are all Wrong

By Ken Kaufman
April 24, 2010

Not too long ago I was asked to review the financial statements for a struggling company. This business had several years of fantastic performance, but the business was out of cash and needed desperately to correct its course. The financial statements depicted a strong, healthy company with plenty of liquidity to handle its obligations and demands. Yet the bank account was empty. Something was not right.

Upon further investigation, the financial statements were not correct. The issue went back for more than 18 months, meaning the company had operated for over a year with an incorrect understanding of its performance and direction. You can imagine the frustration and anger expressed when the owners of this company realized they could have avoided most, if not all, of their current issues if they had received accurate information that helped them identify their problems.

Here are 20 indicators that will let you know if you aren't getting accurate information.

1. Revenue Incorrectly Recognized

If your customer pays you up-front for a product in May, and then you deliver the product in June, you should recognize the revenue in June. Each industry has different criteria for revenue recognition, but it needs to be right so the financial statements are accurate.

2. Missing Matching Principle

If you pay $100 for an item in May and then sell it for $200 in June, you should recognize the $100 expense in June when you earn the revenue.

3. Gross Margin Variability

Any issues a business has with numbers one and two can cause the gross margin of the business to change more than a few percentage points each month. This should never be the case unless your business has undergone a significant change in its business model.

4. Period Cost Timing

Why did you pay $4,000 in rent in January and $0 in February (you didn't move, did you)? Most likely January and February rent payments were both entered in January. This is just one example of period cost timing issues.

5. Discounts Buried

If your business gives discounts, you should be able to see them on your Profit & Loss so that it can be measured. After all, it really is an investment into customers. Don't bury discounts against your revenue; illuminate them to track your return on this investment.

6. Bad Debt Neglected

Don't decrease your revenue when you write off your bad debt. You should expense it. It is a cost of doing business and it should not hurt all the work you are doing to correctly recognize revenue.

7. Divisional Profitability Hidden

Every time I have ever helped a company separate its divisional stand-alone performance, the business owner was shocked to learn which divisions were subsidizing the others. Do you have more than one department, division, or location? If so, you need to break it out.

8. Job Costing Forgotten

Looking at a profit and loss statement by itself will never give you all the information you need to know about your profitability. Use job-costing (or similar approaches for other industries) to find and improve your profit drivers.

9. Balance Sheet Reconciliations Dismissed

Every account should be reconciled every month, not just the bank accounts.

10. Accounts Receivable

Have an answer for why each and every invoice over 60 days past due has not been paid. If any of your answers are not truly legitimate, write it off and send it to collections.

11. Pre-Paid Item Indifference

You pay your general liability insurance every year in February. As a result, February is always one of your worst months because it bears the brunt of all twelve months worth of insurance. Book it as pre-paid and share the "love" through the entire year.

12. Physical Inventory Lost

It does not matter how good you are, how nice you are, or how smart you are. You still need to do a regular physical count of your inventory. If you have inventory, properly managing it will make all the difference to your cash flow.

13. Depreciation Debacle

Just because your tax CPA depreciated your capital expenditures last year does not mean that last year should carry the burden. Keep your depreciation on a straight-line or more appropriate basis and spread it out over a realistic lifetime of each of your assets.

14. Fixed Assets Expensed

There are differing opinions here, but pick a dollar amount, like $1,000, and capitalize anything that costs more than that and will have a life of more than 12 months in your business. Forcing one month or even one year to carry the weight of fixed asset purchases is not accurate — that is why we have depreciation!

15. Payroll Liabilities Overlooked

Reconcile this account to zero every month to make sure you stay on the good side of the IRS, your state, and any other agencies or companies to whom you owe money from payroll.

16. Long-Term and Short-Term Debt Confused

If you buy a new vehicle for your business and you finance it over four years, the portion due in the next 12 months needs to be a short-term liability and the remaining balance is a long-term debt.

17. Principal and Interest Jumbled

The principal and interest portion of each loan payment needs to be properly coded rather than applied to an expense account called "Loan Payment."

18. Retained Earnings Miscarried

The name of this balance sheet account is exactly what it means: The accumulation of all of the losses and profits that have not been distributed from the company. Appropriate journal entries need to be made at the end of every year to make this balance correct.

19. Owner Compensation Confused

Owners receive compensation in one of three ways. Make sure to code each one correctly.

20. Statement of Cash Flow Ignored

Most businesses don't have to worry about the accuracy of their statement of cash flows because they ignore it altogether!

Accurate financial statements are critical to building a successful business. Give heed to these indicators and you will be well on your way to accuracy.

Ken Kaufman, Founder & CEO of CFOwise®, serves as the Chief Financial Officer for a dozen start-up, emerging, and medium-sized businesses. With almost two decades of experience and as an adjunct professor and published author, Ken focuses his professional efforts on helping entrepreneurs maximize cash flow, improve profits, and obtain clarity.

How to Survive in an Unhappy Workplace

Lots of people are having to cope with bad working conditions right now.  Here are some great tips from Pat Olsen about how to survive - and even thrive.

When you don't like your job, going to work every day can be a challenge. Your problem might be with a bad manager, that you constantly feel stretched to the breaking point, or that you are resentful about taking a pay cut. Or, the whole environment may just feel toxic. You might need to stay in your job because it provides health benefits, or maybe you're only staying while you look for another position. Whatever your reasons for being unhappy, you need to maintain your professionalism and prevent a bad attitude from sabotaging you.

What the Experts Say
Timothy Butler, Senior Fellow and Director of Career Development Programs at Harvard Business School and author of Getting Unstuck: How Dead Ends Become New Paths, believes there's something elemental about the statement 'I'm unhappy at work.'" Butler, whose research focuses on personality structure and work satisfaction, says that to understand your unhappiness, you need to turn towards that feeling of unhappiness, experience it in a deep way, and not try to solve things too quickly. He suggests observing the feelings and not expecting anything. You may just find yourself at a frontier, considering what you're going to do next. "The existential nature of unhappiness is a wake-up call," Butler says. "There's some part of the self that is not being heard, that wants your attention, and that's the issue."

Similarly, Joe Mosca, an associate professor in the Leon Hess Business School at Monmouth University, who specializes in human resources management and organizational behavior, agrees that looking within is the first step. "That may be hard for some people to hear," he suggests, because while it's true that sometimes people just don't match well with their jobs, employees tend to rationalize their job dissatisfaction rather than consider that they may be part of the problem. But if you are part of the problem, you may be part of the solution, too.

Tammy Erickson, a workplace expert and author of Plugged In:The Generation Y Guide to Thriving at Work, advises that if you're unhappy, see if you can upgrade your contribution to the company, or find a way to be more creative about your job. She once performed very dull work in a book bindery but avoided becoming negative about the job by finding a way to make it less boring. Erickson was "interested in the process" and tried completing the tasks in a different order, which made the work quicker, easier, and less monotonous. "No work is uninteresting if you can think how to do it differently," she says.

That's not to say unhappy workers don't have valid complaints. One thing you don't want to do, however, is let your feelings boil over at work.

Signs That You Need to Take Action
Perhaps you've heard of someone who was so unhappy he quit on the spot or blew up at a boss. Losing control at work helps no one and may have repercussions in both your current job and in the future — you never know when you'll work with one of your current colleagues again.

Indications that you need to address your emotions may be physical or behavioral, explains Catherine McCarthy, a clinical psychologist and COO of The Energy Project, an organizational consulting firm. The signs include feeling distracted, sluggish, angry or irritable, not sleeping well or sleeping excessively, relying on alcohol or food to comfort yourself, and withdrawing from friends and activities. All may indicate underlying depression or anxiety, which you shouldn't ignore.

If you feel you have nowhere to turn, are about to burst, or are depressed, one option is to seek out your company's Employee Assistance Program (EAP) if it has one, adds McCarthy. Some EAPs will help you find a counselor, and all are bound by healthcare and workplace laws to keep your request confidential.
There are also things you can try to change in your approach to your job. Consider these solutions for surviving and even thriving in a job that's less than optimal:

1. Face the reality head-on. China Gorman, chief global member engagement officer of the Society for Human Resource Management (SHRM) reminds workers that during a recession or slow recovery, people at all levels experience the pain. Such an economic climate makes it more difficult to leave a job, but it doesn't mean you should feel stuck. Erickson advises that you "Accept that this job is not where you want to be, even if you can't make a change today. But begin taking steps to change things." McCarthy seconds this advice.

"Practice radical acceptance," she says. "Tell yourself, 'This is where I am, this is where I'm going to be for a certain amount of time.' You have more control over how you think than you realize." Understand what you're feeling, and that if you show up to work irritated, it affects your performance.

2. Develop a plan. Be proactive. Brainstorm with trusted friends and family members about your ideas. If there's something you'd like to change, decide whether your boss is approachable and if so, the best tactics to use. If you have suggestions, discuss how they will improve your performance as well as others'. The Human Resources department may also be able to help in some way, suggests Gorman, from helping you find a job within the company you're better suited for, to assisting with work/life balance.

You could also try learning a new skill. At the very least, it may help you prepare for another job. It can also lift your spirits and lead to new possibilities at your current job. If your problem is with your boss, Gorman offers advice from personal experience. She once had a boss who was smart and a strategic thinker, but terribly lacking in people skills. Gorman decided to be the boss she wished she'd had. "I made a list of what not to say, for example, and developed skills I still use today," she says.

Finally, consider looking outside your job for fulfillment. Having an outside interest or two gives you another outlet and an activity to look forward to.

3. Find (or Accentuate) the positive. Make a list of the good points about your job, advises McCarthy. Gorman calls this a benefit log. You may be thankful to have healthcare and other benefits. You may like your coworkers, or the fact that you have a short commute. Maybe there's a great gym on-site, or you enjoy the opportunity for travel or the mentoring you do. Listing what you do like about your job will help shift your perception and keep you from feeling so trapped. If you don't take responsibility, "it will hurt your performance, erode your satisfaction further, and make your time at the job worse," she says.

Principles to Remember

Do:

• Differentiate between what you can change and what you can't.
• Take responsibility for making a change.
• Focus on making the best of a bad situation.

Don't:

• Assume nothing will ever change.
• Allow negative thoughts to rule you.
• Go it alone.

Case Study #1: Finding Satisfaction in Some Part of Your Job
Elizabeth Roman (not her real name) had been head of marketing at a professional services firm in New York for four years when she fell out of favor with her boss. He had always given her good performance reviews, so she was stunned the day he let her know that he had little respect for her work. After that conversation, Roman "hated going to work every day." She resolved to find a new job, but in the meantime, she wanted to find some ways to make her job bearable. "First, I pushed myself to perform at the highest level possible after that conversation so he'd have no further ammunition against me," she said. Along with that, she came up with a creative project for attracting clients, suggested it to her boss, and threw herself into organizing it with her staff. Roman also contacted a mentor at another firm who served as a sounding board and lifted her spirits. She never betrayed her boss and never let her feelings affect her relationship with her employees. When she finally found another position and resigned, she mustered the grace to thank her boss for all he had taught her.

Case Study #2: Finding Satisfaction Outside of Work
Allen Smith (not his real name) is a technologist at consulting giant Bain who became frustrated with what he saw as a lack of a career path. "I also felt like my manager didn't understand what I needed day to day to do my job," he says. But he liked the people he worked with, so he did some soul-searching, asking himself whether he was unhappy because of someone else or because of his own attitude. He decided it was the latter. Smith had been toying with the idea of starting a business, and he thought if he could do it on the side, it would affect his outlook. He was right. He was given permission to work three days a week, which allowed him to start the part-time property management business he envisioned. "With a reduced work week, regular chats with my manager, and a focus outside of work, I've become much happier about my time here," he says. In turn, working fewer hours helped reduce his department's budget.

by Pat Olsen - HBR Blog

Your Employees... You don't need to marry them, but you do need to engage them!

2009 is over and the recession is receding. Having cut expenses and laid off employees, you are now operating with a lean workforce and focusing keenly on building revenue, maximizing profit, and generally improving business outcomes. So as 2010 gets underway, what lies on the road ahead for you?

According to The Conference Board CEO Challenge Top 10 Report, here are the top three challenges and priorities facing business leaders today:

• Sustained and steady top line growth
• Customer loyalty and retention
• Profit growth

Research results mentioned in an article about managing human capital from Deloitte Consulting Managing Talent in a Turbulent Economy, reveal that 49 percent of employees are either looking for a job or plan to look for a new job over the twelve months following the end of the recession. Only 37 percent of Generation X employees (those between the age of 31 and 45), and 44 percent of Generation Y employees (those under age 30) are planning on staying put. Employees stated they are leaving for the following reasons:

• A real or perceived lack of opportunity for advancement
• Having borne the brunt of keeping companies afloat during the recession, they feel they are not appreciated or valued
• Their compensation is not commensurate with their contribution
• They are unhappy with their managers

Deloitte Consulting predicts that headcount reductions and other cutbacks will give way to the need to retain employees and focus on their development. At a cost of one to three times annual salary to replace each employee, not paying attention to retention could destroy some companies that are already struggling to stay afloat. However, almost one quarter of companies surveyed are doing nothing about it, or are unaware of the impact that retention has or will have on the bottom line.

Recent studies by Towers Perrin and the Gallup Organization that compared the financial results of those businesses that had high levels of engagement with those that had low levels of engagement showed significant differences in such measures as net income growth,earnings per share, absenteeism, turnover and customer retention. We also know from countless other studies that engaged employees tend to stay put for longer, are more creative, and play a pivotal role in boosting customer loyalty and retention through providing excellent service and going the extra mile.

The Bureau of Labor Statistics' latest data on workplace disengagement inform us that employees across the nation, across all industries, are disengaged an average of two hours per day (and some estimates more recently go as high as 3.5 hours per day). You can do the math with your organization's own numbers, but if you take a rough cost estimate of $35.00 per employee per hour, and you have 100 employees, that equates to an annual cost of disengagement at $1,680,000!

Putting all this information together, it makes sound business sense to put top priority on engaging your employees. Now more than ever before, your employees are the main driver behind positive business outcomes.

Sounds like a plan, but exactly how is that done? While there is no "one-answer-fits-all" response to the question, here are some things to consider:

• Run an engagement survey to get the current engagement level in your organization
• Ask your employees what improvements they would suggest that would result in them being more involved with their jobs (bear in mind that outside facilitation may be necessary to ensure confidentiality, trust, and honest responses)
• Find out how you can establish a culture of engagement in your company by customizing an Engagement Model

Fiona Cattermole is a strategy consultant and performance specialist. Visit her website at www.catt-alyst.com.