R&B CMW Spring 2015

CMW Insurance

RISK& BUSINESS SPRING 2015

MAGAZINE

Kat Cole

The Rise of a Business Superstar

7 Social Media Strategies • Hiring is a Risky Business • Equal or Equitable Pay • No More Problems

RISK& BUSINESS

MAGAZINE

PUBLISHER

EDITOR-IN-CHIEF

GRAPHIC DESIGN CONTENT COORDINATOR

Carle Publishing Inc. Andy Buyting John Christenson Stacey Cowperthwaite

CONTRIBUTORS Michael Bennett

Andy Buyting Greg Crabtree John DiJulius III Eric Fry Sean Graham David Green Verne Harnish Dave Kerpen Joe Pulizzi Dr Brad Smart Neil Wadhwa

ADVERTISING (National) ADVERTISING (Local)

Keith Keane Reece Cain

PHOTOGRAPHY All images sourced from Carle Publishing Inc. or Thinkstockphotos.ca unless otherwise identified.

700-1901 Rosser Avenue Burnaby, BC V5C 6R6 Phone: 604.235.1859 www.cmwinsurance.com CMW Insurance Risk & Business MagazineTM is published by Carle Publishing Inc. All content, copyright Š 2015, Carle Publishing Inc. All rights reserved.

Risk & Business MagazineTM is a valued and recognized trademark of Carle Publishing Inc. This publication may not be reproduced, all or in part, without written consent from the publisher. Every effort has been made to ensure the accuracy of all content in this publication, however, the publisher nor CMW Insurance will be held responsible for omissions or errors.

Please address all editorial and advertising inquiries to Carle Publishing Inc., Email: andy@carleventures. com. Carle Publishing Inc. is not held responsible for the loss, damage or any other injury to unsolicited material (including but not limited to manuscripts, artwork, photographs and advertisements). Unsolicited material must be included with a self-addressed, overnight-delivery return envelope, postage prepaid.

Carle Publishing Inc. and CMW Insurance will not give or rent your name, mailing address, or other contact information to third parties. Subscriptions are complimentary for qualified individuals.

Carle Publishing Toll Free: (877) 719-8919, Fax: (866) 609-5674 Email: info@carlepublishing.com Website: www.carlepublishing.com

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16 From Waitress to President:

The Rise of a Business Superstar

Kat Cole’s Sweet Success

CONTENTS Letter from the Owner

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Decisions, Decisions!!

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Managing Risks

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No More Problems, Please!

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How to Minimize Your Personal Risks as a Business Owner How to Manage Risks Across Your Supply Chain A Different Approach to Strategy for all Companies

7 Social Media Strategies

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Hiring is a Risky Business

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Creating Inspired Moments

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Right Questions, Right Time

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Have Social Media Work for Your Company Topgrading Steps to Hiring Better

The Importance of a Customer Service Vision Statement The Importance and True Relevance of a Question

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welcome to R&B

elcome to the Spring 2015 issue of Risk & Business MagazineTM presented by CMW. Our hardworking team has carefully assembled a quality collection of topical and interesting articles, with a focus on current issues that may affect your business. Through these selected articles we hope to provide you with a fresh perspective on ideas to reduce risk and make you more successful. We hope you find it to be relevant and insightful.

We at CMW provide corporate and personal risk advice. Our trusted advisors assist clients on insurance and other related risk management services. We offer expertise on the many risks you face in your professional and personal lives each day.

This publication is one vehicle we have chosen to share this knowledge with you. Hopefully, it can serve as a resource.

We also have a library of educational articles available to you through our resource portal on our website.

I encourage you to contact any of our 85 experienced professionals for advice and council on insurance and risk management-related matters. We are also happy to provide more information on the topics discussed in our articles.

Equal or Equitable Pay?

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I look forward to any feedback and comments you may have as well as suggestions for topics to address in our future publications.

Emerging Trend in Construction

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Sincerely,

Cutting Operating Costs

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The Concern of Cyber Security

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How to Get Top Team Performance The Growth of Off-site Construction in New Developments Cut Operating Costs for Your Commercial Vehicles with ICBC’s Fleetplan Demystifying Privacy Risks Businesses Face in a Technology-Driven World

Andrew D. Kemp President & CEO

Tel 604 484 0204 akemp@cmwinsurance.com

www.cmwinsurance.com RISK & BUSINESS MAGAZINETMSPRING 2015

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Decisions, Decisions!!

How to Minimize Your Personal Risks as a Business Owner BY: ROB TEN VAANHOLT, CLIENT EXECUTIVE, VICE PRESIDENT, CMW

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eing an entrepreneur means making challenging decisions every day that could have long-term effects on your business. As you continue driving your company’s growth, are you aware of the risks you are taking upon yourself? Do you know all the ways you could be held responsible for your business’ debts or liabilities? You could be placing your own assets at risk without realizing it.

By having a thorough understanding of the personal risks you face, you can take steps to protect yourself and your family against unexpected financial burdens.

the corporation. This type of structure offers you a certain level of protection.

The Right Business Structure As a starting point, ensure that your ownership structure is aligned with the level of personal risk you are prepared to take. Depending on whether you are operating as a sole proprietorship, partnership or corporation, there can be some serious consequences. The primary difference between these three is whether or not the business owner bears responsibility for the debts, obligations and acts of the company. If you are either a sole proprietor or a partner, you and your company are considered one entity, making you personally liable.

Another way your personal wealth could be threatened is by using your own name on business contracts or mixing personal and business finances in any way. It is crucial to maintain formal legal separation between all personal and business affairs. All documents and property titles should use the company name and all finances and recordkeeping must be maintained separately. Mixeduse assets (personal equipment used for business purposes as an example) can be problematic and it is important to have extensive documentation identifying the split in usage. Any

Personal Liabilities You Could Still Incur with a Corporation Even upon registering a corporation, you are not completely free of liability.

There are still a number of ways that your assets could be in danger. When you started your business, if you signed a personal guarantee to secure a loan, you have put your own finances on the line. Your home, investments and other personal property could serve as repayment if the business dissolves.

On the other hand, if your business is incorporated, you are a shareholder and legally speaking, a separate entity from

expenses associated with the asset should be paid via personal accounts and then reimbursed by the entity.

In addition, no matter the type of business you run, always ensure you secure the appropriate insurance. The risks vary significantly depending on the specific operations of a company and you will require different types of insurance and different limits.

Protecting Your Personal Assets As your net worth grows and you accumulate assets, the types of personal risks you face change drastically as well.

In order to be adequately insured, all assets need to be valued accurately, including any properties, vehicles, watercraft and collections such as art, wine, jewelry, etc. Be aware as well that location of these assets also becomes a factor that could change how you should be insured.

You also become a bigger target for litigation. Consider coverage for liability arising from participation on nonprofit boards of directors, personal injury lawsuits and defense costs.

An insurance broker that specializes in complex personal and family risks will be able to conduct a thorough review and help you minimize these risks.

Rob ten Vaanholt is a Client Executive, Vice President at CMW Insurance Services Ltd. Rob brings over 30 years of insurance experience, including senior roles at a leading international insurance company. With his extensive underwriting expertise, he provides clients with a unique perspective on managing commercial and high value residential risks.

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Managing Risks

How to Manage Risks Across Your Supply Chain BY: JURGENS BOSMAN, VICE PRESIDENT, BUSINESS DEVELOPMENT, CMW

the mistakes of others. A defective or inherently dangerous product or part can cause liability issues for its designer, offshore manufacturer, shipper, wholesale distributor, retail seller and installer, who are all jointly responsible. Even if you have exercised all possible care, an injured third party can sue any or all parties involved in bringing the product to market.

Reducing Your Exposure What can you do to reduce this risk?

Fortunately, there are some best practices you can follow:

Companies are relying more and more on their suppliers as they outsource and minimize stock to stay flexible and responsive to their markets. This relationship creates a host of potential problems if you have a number of parties involved in your supply chain.

Successfully managing the risks presented by a complicated crossborder supply chain can be daunting, considering the countless factors that can cause disruptions or liability issues.

Compounded Risk A key supplier or buyer can be debilitated for a number of reasons out of your control. Supply chain partners both upstream and downstream can be dramatically affected as a result.

A single disruptive event in Europe could ignite a customer service nightmare in Canada. And disruptions are more common than you might think – a survey of corporate risk managers and supply chain risk managers by insurer Zurich Services Corporation revealed that 74 per cent of respondents had experienced a supply chain disruption within a 12 month period, not only affecting top and bottom lines but also damaging their brands and diminishing market share.

Your Liability in the Chain Even worse, you can be held liable for

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• Choose suppliers carefully, and conduct regular audits and inspections to ensure they are just as committed to business interruption prevention as you are. › Verify suppliers’ insurance coverage. Remember, a certificate of insurance is evidence of insurance only when the certificate is written, and not at any time after that moment.

• Clearly define contract scopes and draft contracts carefully with the help of legal counsel. Consider indemnification, hold harmless and defence agreements.

• Work with your insurance broker to create a business interruption worksheet that quantifies the potential impact on revenue and profit.

• Re-evaluate the worksheet on a regular basis to account for changes in the market or your business model. Focus not only on the inherent risk of a broken link in the supply chain, but the interdependencies between links. › When there is a global event, examine your supply chain to see if any part of it might be affected. › Be aware of developing risks, such as cyber warfare, climate change,

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nanotechnology and synthetic biology.

• After identifying risks, put a plan into place that could include: › Business continuation › Geographical diversification of servers › Relocating the business to an alternate location › Sourcing of goods from alternate suppliers • Investigate if your supply chain partners have several locations that could keep the flow of raw materials going in the event of a disruption.

• Transfer your risk by purchasing appropriate coverage, which could include the following: › Business Interruption/Business Income › Marine and Cargo coverage for long voyages taken by commodities, components and finished products › Liability coverage, including Commercial General Liability and Directors and Officers Liability Carefully read your policy and ensure that it includes coverage of loss of supplier, stoppage of supply and interruption of service.

To successfully manage your business’ risk from beginning to end, it is important to engage your supply chain partners and insurers and regularly reassess exposures.

Jurgens Bosman is Vice President, Business Development at CMW Insurance Services Ltd. Jurgens brings over 25 years of insurance experience to his current role managing a team of Risk Advisors. Prior to joining CMW, he held executive positions at leading international insurance companies in South Africa and Canada.

No More Problems, Please!

A Different Approach to Strategy for all Companies BY: VERNE HARNISH AND ANDY BUYTING

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irst, my public apology to all the companies I’ve misguided over the past two decades, as well as an apology to my employees. And while I’m at it, let me add a public apology to my family and friends.

I just didn’t know any better until I read a thin 70 page book called the Thin Book of Appreciative Inquiry

I apologize for dredging up all their problems, for focusing on what is wrong instead of on what is right. I apologize for focusing on the F’s instead of the A’s.

I just didn’t know any better until I read a thin 70 page book called the Thin Book of Appreciative Inquiry.

me, as his new consultant, to some of the people in his accounting department.

One of the women quipped “I suppose you’re here to point out everything we’re doing wrong.” Ouch! But an accurate description of the role of most consultants.

Quick summary – Focus on what’s working instead of on what’s not working. Period.

As a leader of my own firm, I’ve fallen into this same “problem analysis” focus of solving my growth company challenges.

And as a father, during a recent teacherparent conference, I caught myself focusing more on the “B’s” than the “A’s”, even though I now know better – these are difficult habits to break.

Here’s the rub. During quarterly planning and consulting sessions the tendency is to make a list of problems and then spend the bulk of the time discussing these problems and trying to solve them. No wonder people dread the process.

This was brought home to me recently when a client introduced

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DRIVING REVENUES So what’s the alternative? Let me go back to my latest planning session with the client mentioned above. Their main challenge was driving revenue.

Rather than analyze all the reasons why revenues were NOT growing as rapidly as they would like, we took a different tack. Instead, we explored a time when revenues were exploding i.e. when things were going great.

Rather than analyze all the reasons why revenues were NOT growing as rapidly as they would like... we explored a time when revenues were exploding i.e. when things were going great.

Back a number of years ago, one of their divisions had driven revenues from $2 million to just over $9 million in the span of twelve months. Since then, that division’s revenues have gone flat. So we brought in the head of that division and rather than spend an hour analyzing why revenues had gone flat, instead we asked “what were you doing right back then that caused revenues to explode?”

First, the head of the division was getting to re-live a positive time, rather than hash through a bunch of negatives. More importantly, about an hour into the conversation, as we continued to explore what worked for them in the past, the head of the division had a major insight.

Back a few years ago, he was spending about a week a month out in the field visiting with his main distributors and customers. However, after experiencing the sharp jump in revenues, he was sucked into all the challenges of running a much larger operation which had reduced his field time to less than a week every quarter. The minute he said it, the CEO looked at his head of operations, he looked at me, and we all looked at the division head and we knew our answer had been found. We then spent the next hour figuring out how to get some

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activities off the division head’s plate so he could get back out in the field.

the company was doing then that they aren’t doing now.

Results? When I checked back three months later, though the division head had not yet achieved a week/month of field time, he had managed to get out a lot more than he had been and in the process found a new product that may likely add $10 million in revenue next year! Now the company is faced with finding the cash to support the added inventory and again, when explored how they had successfully accomplished this in the past.

In one recent turnaround, he found seven distinct activities the firm was doing during the boom times that they weren’t doing now and he simply focused the firm on doing those activities again, even though the market and products had shifted over time. Results? Another successful turnaround.

DEFINING AND FOCUSING ON THE CORE CUSTOMER While discussing the downturn of company profitability over the past few years, Certified Gazelles Coach Andy Buyting brought a new client in the security guard industry through a core customer exercise. After analyzing the hard numbers and the gradual shift in customer profile in recent years, it was found that approximately 76% of their customers made up less than 5% of their revenues.

What they concluded was they were wasting far too much (76%) of their time, attention and resources servicing clients that were simply not profitable. This was taking them away from their larger clients, clients they were better equipped to service well, and would most likely contribute to larger and more profitable growth in the future.

Result? Within a three week period, they essentially fired (transferred out) three quarters of their customer list. This freed up their operations and admin people to focus on their large profitable clients. It also provided their sales team with clarity on their core customer, and has allowed them to grow larger, faster and with much stronger profitability.

FOCUS ON STRENGTHS Marcus Buckingham, the strengths movement guru (Go Put Your Strengths to Work), notes that if you want to help your children with their F’s, ask them about their A’s – what did they do to get their A’s, why they like that subject more than the other, what the teacher does, etc. You don’t ignore F’s, but you must study the A’s, not dwell on the F’s, if you have any hope of supporting your child in a positive way.

You don’t ignore your problems, but it’s far more productive to study what’s working...

The same with your company. You don’t ignore your problems, but it’s far more productive to study what’s working, in your own company or others, as the best way to solve the challenges facing your growing firm.

TURNAROUND STRATEGIES

Verne Harnish is founder and CEO of Gazelles, a global executive education and coaching company, Verne has spent the past 30 years educating entrepreneurial teams. He’s the author of Mastering the Rockefeller Habits which is endorsed by over 100 CEOs of mid-size companies and is published in ten languages.

Another friend who turns around business said he uses a similar process.

He simply asks for a graph of the company’s financial performance for the past decade or so, looks for a point where the performance was stellar, and then brings together leaders and employees who were around during that period and spends a couple days inquiring into what

As a Certified Gazelles International Strategic Advisor, Andy Buyting provides strategic direction for high growth companies and their management teams as they grow their organizations to the next level. Learn more at www.

AndyBuyting.com

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7 Social Media Strategies Have Social Media Work for your Company BY: DAVE KERPEN, FOUNDER AND CEO, LIKEABLE LOCAL

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one are the days of strictly using traditional marketing vehicles.

Today, savvy SMB’s use search marketing, search engine optimization and various social media platforms to market their companies online.

And, today is as good a time as any to look at your social media strategy.

More than 1.3 billion people in the world are on Facebook, including over 180 million Americans. Twitter recently surpassed 400 million accounts.

LinkedIn boasts over 300 million users. Many SMB’s are trying to take advantage of these trends, by using social networks to promote themselves and broadcast their messages, but few are fully reaping the rewards.

If you stop thinking like a marketer and start thinking like a customer, you’ll understand the secret to social media is in the “social” more than in the “media”. It’s in being human, and being the sort of person at a cocktail party who listens attentively, tells great stories, shows interest in others and is authentic and honest. To put it simply, the secret is to be likeable.

Here are seven tips to be more likeable and ensure great success using social media:

1. Listen first and never stop listening

Before your first tweet, search Twitter for people talking about your company and your competitors. Search using words that your prospective

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customers would say as well. For example, real estate agents should use Twitter and Facebook to search for people using the words “looking for a realtor” in your town. You’ll be surprised how many people are already looking for you.

2. Don’t tell your customers to “Like” you and “Follow” you, tell them why and how they should

Everywhere you turn, you see “Like us on Facebook” and “Follow us on Twitter”. Huh? Why? How? Give your customers a reason to connect with you on social networks, answering the question “What’s in it for me?” and then make it incredibly easy to do so.

Note the difference between these two calls to action: “Like our page on Facebook” vs. “Get answers to your questions on our Facebook page.”

3. Be authentic

Your customers don’t want to read impersonal posts and sales offers all day. Instead, be human and be yourself.

Are you sponsoring a Little League team in your town? Share it with your fans! Know a few jokes related to your industry? Tell them! Show your company’s personality and watch your online community to engage and grow.

4. Why ask questions?

Wondering why nobody’s responding to your posts on Facebook? It’s probably because you’re

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not asking questions. Social media is about engagement and having a conversation, not about self-promotion.

If a store posts on Facebook, “Come in and see what’s on the sale today,” nobody will comment and nobody will come. If that same store posts a question as simple as “What’s your favorite gift you’ve ever bought?” and attaches a great picture, people will be more likely to comment online and engage with the company.

5. Surprise and delight your customers

Want to bring more attention to your company’s social media pages and become more likeable overall? Figure out ways to surprise and delight your customers on a regular basis. Offer contests and raffles or encourage your community to join the conversation for a chance to win local gift cards that show off a town’s personality.

Remember, free is like magic and a delighted customer will share their experience with friends and family.

6. Share pictures and videos to tell stories

People love photos. The biggest reason Facebook went from zero to 1 billion users in just 10 is photos. Photos and videos tell stories about you in ways a text alone cannot.

You don’t need a big production budget, either. Use your smartphone to take pictures and short videos of customers and cool things around town. Then upload them directly to Facebook, Twitter and LinkedIn. A picture of happy, attractive customers is social media gold. Try a video featuring testimonials from your happy customers! A picture really is worth a thousand words – and a video is worth a thousand pictures.

7. Spend at least 30 minutes a day and use tools to help Likeable Local offers a software that makes social media fun, easy, and effective for small businesses. With advertising, analytics and idea suggestions, Likeable Local gives you the tools to be successful on social. If you bought a newspaper ad or radio ad, you wouldn’t spend five minutes on it or relegate it to interns, so don’t do it with social media. Spend real time each day reading and learning, listening and responding, and truly joining the conversation. The more time and effort you put in to social media, the more benefits you’ll see.

The strategies listed above are critical to maintain and grow an online community, but before you even consider social media – I tell Likeable customers – consider this: Social media will help magnify and multiply the conversations about your company. Will you be happy about the nature of those conversations?

Before you get involved with external communications – online marketing, advertising and social media – look internally at your company. The secret to the most effective marketing is so simple – just be likeable.

Dave Kerpen is the the founder and CEO of Likeable Local, the cofounder and Chairman of Likeable Media, the NY Times Bestselling author of 3 books, the #1 LinkedIn Influencer of all time in pageviews, ahead of Bill Gates, Jack Welch, Mark Cuban and Barack Obama, and the proud father of Charlotte and Kate Kerpen.

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Hiring is a Risky Business Topgrading Steps to Hiring Better BY: DR. BRAD SMART, AUTHOR AND PRESIDENT AND CEO OF TOPGRADING, INC.

“The ability to make good decisions about people represents one of the last reliable sources of competitive advantage, since very few organizations are very good at it.”

Peter Drucker

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hich managers among us have not suffered from too many costly mis-hires? Dr. Brad Smart, widely respected as a hiring expert, offers three common sense steps to help us hire better. He coined the term Topgrading to mean achieving 90% success hiring and promoting people.

and the average number of hours “wasted” sweeping up after a mis-hire is more than 250 hours. The cost of keeping low performers gets bigger over time because they suck the energy and productivity of high performers who must work harder to prevent mistakes and later correct them.

R&B: Brad, let’s get straight into it. Why is hiring very risky?

R&B: OK, so what are the steps managers can take to hire better?

Brad: Because almost all managers suffer from poor hiring results. I met with the number one Human Resources executives from the largest 100 companies in the world. Across the board, they said that 75% of the people they hire turn out to be disappointments.

Brad: Step 1: Use the Topgrading “truth serum” which is simple: Tell candidates that a final step in hiring is for them, not the company, but for them to arrange reference calls with their former managers and others.

The low performers, those with hyped resumes, drop out because they know there is no way that they could get their former managers to talk with the hiring company – nor would they want you to.

R&B: Why is the success rate so low for most companies?

Brad: Most companies mis-hire people because of three things: One, candidates get away with lying on their resume and in interviews; two, interviewing methods are so shallow Forrest Gump could pass them; and three, companies don’t verify what candidates told them because the reference calls they conduct are generally ineffective.

R&B: I know Topgrading has ways to overcome problems, but first let’s talk more about risk. What are the risks when there is a mis-hire?

Brad: For three decades we’ve asked managers to estimate what it costs in money and time when they mis-hire someone. Bottom line, the average estimated cost of mis-hiring a $100,000 per year manager is over $400,000,

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Step 2: Conduct a Topgrading interview.

Remember, all the remaining candidates are motivated to tell the truth. The Topgrading Interview walks them through their career so you can really understand how they evolved and what their abilities and competencies are today.

Start with their first job and come up to the present and ask: What were your successes? What were your failures? What were any additional key decisions or any important people interactions you had?

Appraise your boss. (It’s very important to see what sort of bosses they liked, or not.)

And here is the single most important and revealing question of all: If we were to ask you to arrange a reference call with your managers, what is your best guess as to what they would list as your strengths

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and your weaker points and how would they rate your overall performance?

The Topgrading interview reveals how people they performed and improved, and how they learned from mistakes. Values are revealed and over time, clearly defined patterns uncover their strengths and weaker points today.

Step 3: Ask candidates to arrange reference calls with their former managers —and then make those calls. This assures solid verification of everything the candidate said. Ask candidates to arrange the calls with not just their bosses, but anyone you want to talk with. It might be a couple of sharp subordinates or peers.

Or for a sales rep candidate, maybe you want to talk to a couple of customers and so forth. Candidates arrange the calls so there’s no telephone tag.

R&B: That’s brilliant. With regard to the Topgrading Interview, would you recommend one person or a panel do them?

Brad: That is a terrific question. Definitely use two interviewers, the hiring manager and another manager, perhaps Human Resources. General Electric started with 25% success and with solo Topgrading Interviews improved to 50%. Jack Welch, GE CEO at the time, asked how they could improve and I suggested two interviewers. He implemented it and GE achieved an over 90% hiring success rate. Soon after, GE became the most valuable company in the world in terms of market capitalization.

The cool thing is that thousands of managers have been trained in Topgrading and when they use these three basic steps and conduct tandem Topgrading Interviews, they too achieve 80% and even 90% hiring success. And many managers prefer to have a Certified Topgrading Coach as the main interviewer and they serve as the tandem partner.

R&B: Is Topgrading just for large companies?

Brad: No! A single mis-hire in a small company could be devastating.

Thousands of small- and mid-sized companies have successfully Topgraded.

R&B: What proof is there that Topgrading really works so well?

Brad: Go to www.topgradingcasestudies. com to read 40 case studies. On the first page is a master chart showing the average hiring success rate improved from 26% to 85%. And every CEO is quoted saying the company is more profitable because of Topgrading.

R&B: Tell us a little how our readers can learn more.

Brad: They can go to www.topgrading.com to download a free 70-page e-Book, Topgrading 201.

Dr. Brad Smart is an internationally renowned management psychologist and is generally regarded as the world’s leading expert on hiring best practices. Topgrading methods have helped leading companies such General Electric, Honeywell, Barclays, and American Heart Association plus hundreds of small and mid-sized companies improve their hiring methods.

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From Waitress to President:

The Rise of a Business Superstar

Kat Cole’s Sweet Success BY: NEIL WADHWA

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he cinnamon roll shouldn’t be here. The story of the cinnamon roll only knowing the confines and comfort of mall foodcourts, remaining resilient against the glass-half empty nutritionists that called for its downfall, and then becoming the staple item in a billion dollar business, runs parallel to Cole’s own rise and the challenges she faced along the way. Cole went from “waitress” to “President” by thinking bigger, doing more, embracing change, and welcoming all challenges.

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Walk through most mall food-courts around the world and you’ll be sure to smell that magical aroma of sweet cinnamon, brown sugar, gooey icing, melting margarine, and pillow-soft pastry dough, calling your name. Follow your nose and you’ll end up at Cinnabon, the cinnamon roll brand with a cult following.

10 years later, at the age of 19, Cole started working at Hooters, selling beer and chicken wings.

As Cole’s mom was still raising three kids on a low salary, Cole spent her time outside of Hooters (when not at school) working a second job at a local mall.

The cinnamon roll’s popularity hasn’t diminished at a time when fast-food chains and restaurant menus worldwide are adopting healthier options. In fact, Cinnabon has hit $1 billion in sales every year since 2012, and its licensed products can now be found everywhere from supermarket shelves, in packaged-foods by Kellogg and Pillsbury, to fastfood restaurants, including Taco Bell and Burger King.

While Cinnabon’s success can be traced to Makara cinnamon—Cinnabon’s proprietary cinnamon from Indonesia that can be found in all of Cinnabon’s licensed products—and loyal customers willing to indulge in a little guilty pleasure every once in a while, the company can also take comfort in knowing it’s in the safe hands of Kat Cole.

Cinnabon’s classic roll is 880 calories—330 more than a Big Mac. It goes against all the trends of the “make it healthier” and “make it artisanal” discussions that surround food in 2015. Yet it manages to survive, thrive, and expand. In many ways, the story of the classic roll echoes the story of Cole, President and Chief Executive Officer of Cinnabon, who is in a position that might have been unimaginable to her 9-year-old self.

“I had worked my buns off to be known as someone who could get the job done.”

“I grew up in Jacksonville, Florida. Our father, who was a Vietnam veteran, had come back a troubled guy, and was making bad decisions. He wouldn’t be around for family events, or my mom was left to do things on her own, or he was out drinking and wouldn’t come home till late,” said Cole, during her recent appearance on Undercover Boss.

“So, when I was nine years old, my mom had the courage to leave him and take me and my two younger sisters to a different city so that we could start a new life. She fed our little family of three girls on $10 a week.”

It’s in these early stages of life where Cole learned to take charge and be responsible—traits not typically asked of a 9-year-old. But it’s these very traits developed by Cole at an early age that still help guide her throughout her professional career.

Cole watched as her mom became the leader of the family. More importantly, seeing her mom feed three growing girls on $10 a week instilled in her the drive to be successful, a drive that can only be understood by those who have grown up in situations similar to Cole.

Her time at Hooters wasn’t one of working for tips, but rather embracing any opportunity that came her way, gladly accepting challenges that others would turn away from.

“I was in the right place at the right time with a company that was growing, but at the same time, I had worked my buns off to be known as someone who could get the job done. When the cooks quit, I went in the back and learned how to cook, when the managers needed help, I helped, when the other servers or people needed help, I was there to help, because I was curious and I genuinely wanted to help,” Said Cole, in a recent interview with NextShark.

“Fast forward a year of doing that, I was one of the few people that had worked every job in the building. So when someone called and said ‘hey, we want you to go overseas and open restaurants,’ it wasn’t just that I was chosen, it wasn’t just that I was lucky, it’s that I had happened to put myself in a position— unknowingly—to be one of the top candidates.”

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For Cole, every challenge and every new opportunity was a new chance to learn and grow.

For Cole, every challenge and every new opportunity was a new chance to learn and grow. She was willing to put herself in new situations, ones that she may not have had the skills or training for at the time, in order become a well rounded, knowledgeable employee—rather than one that had only very narrow, replaceable skillsets.

Nothing encapsulates Cole’s willingness more than when Hooters asked her to help open a restaurant in Australia.

Although she had run every aspect of the Jacksonville’s Hooters location, what Cole had never done at that point in her life was step on soil outside of her home state of Florida—never mind stepping on an airplane. She asked management for a day to decide, and after consulting her mom, flew to Miami to stand in line and get a passport, which could be completed within the day. She got the passport, and was soon in Australia, where she spent 40 days helping with the opening of the restaurant.

Management never knew about her day trip to Miami in order to get the passport.

At the time, Cole thought of Hooters as just a pit stop, as she was pursuing an engineering degree at the University of Northern Florida, with plans on enrolling in law school afterwards. But Cole’s experience in Australia was life changing. Not only was it her first trip outside of Florida, but also management saw how successful she was and started sending Cole to more countries to open more restaurants.

As a result, she made the decision to drop out of school. A big decision, considering Cole was the first of her family to go to college—and a decision she would revisit less than 10 years down the line. This continued the trend of embracing opportunity and change, rather than question and resist change in order to follow a path seemingly set in stone.

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After opening restaurant locations for less than two years, a Vice President at Hooters asked the then 20-year-old Cole to apply for a management job based in Hooters’ Atlanta headquarters. Cole applied—even dressing up for the phone interview—and got the job. Six short years later, Cole became a VP of Hooters herself. To make up for the fact that didn’t have a university degree— revisiting her decision to leave the University of Northern Florida 10 years earlier—Cole completed her Graduate Management Admission Test (GMAT) and then enrolled in Georgia State University’s Executive MBA Program.

In 2010, still a student in her early 30s, FOCUS Brands, the Atlanta-based franchisor and operator of six food-

service chains with over 4,500 locations in the United States and 63 other countries, hired her as the CEO of Cinnabon. Two short months after she was hired, Cole finished her MBA. One month after finishing her MBA, she was promoted to president of Cinnabon.

At 32, Cole was responsible for over 1,000 Cinnabon locations in over 50 countries, which, at the time, was approaching $1 billion in annual sales.

Kat Cole promoted to President of FOCUS Brands In February 2015—during the very week of this article’s initial drafts—Kat Cole, now 36, was promoted to president of FOCUS Brands, putting her in charge of Carvel, Schlotzsky’s, Moe’s Southwest Grill, Auntie Anne’s Pretzels, McAlister’s Deli, in addition to Cinnabon. A short 17 years ago, Cole was just in charge of wings and beer at the Jacksonville Hooters.

“I was the daughter of an alcoholic and a single parent, I worked at Hooters most of my life, and I dropped out of college,” Cole explained to Charlotte Alter for an interview with Time Magazine.

“You tell me if that inspires you to want to have me run your company.”

We think FOCUS made the right decision.

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Creating Inspired Moments The Importance of a Customer Service Vision Statement BY: JOHN DiJULIUS, PRESIDENT, THE DiJULIUS GROUP

“Putting our feet in the shoes of the Customers, [we understood] what they were dealing with and [their] anxiety . . .We were growing the company with such speed and aggression that we lost sight of the Customer experience.”

-Howard Schultz, Starbucks’ CEO, Wall Street Journal 2011

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n 2010, I had one of the highlights of my consulting career: Starbucks asked me to help it re-create its Customer service vision statement. I have worked with Starbucks in the past, but this was different. I knew this was going to be something that would live for a long, long time in Starbucks. Starbucks has always been one of my favorite companies, both as a Customer and as a Customer service consultant. I was so excited! I knew that no one helped create better Customer service vision statements than The DiJulius Group. I knew we were perfect for this project. I was so excited about taking on this project, until I asked them what their current vision statement was that they wanted to change: “To inspire and nurture the human spirit one person, one cup, and one neighborhood at a time.”

I thought to myself, Wow, that’s pretty good. I honestly didn’t know if we could improve on that. I asked Craig Russell, senior vice president of global coffee, why he felt that statement didn’t work for Starbucks. He replied, “We love the statement; those are Howard’s [Schultz’s] words. It is more of our purpose. As far as a Customer service vision, it is too big, too aspirational. We want something that’s actionable, trainable, measurable.” As I thought about it, he was right. If someone comes in and orders a venti soy latte, and the barista gives

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it to them exactly how they ordered it, in ninety seconds, did the barista inspire or nurture their human spirit?

Probably not. That is something that takes dozens and dozens of positive experiences. I believe Starbucks does that. But it doesn’t happen one time.

So we did what we do with all our consulting clients when making a Customer service vision statement; we started with scripting a day in the life of a Starbucks Customer (see chapter 5 for the day-in-the-life discussion). A Starbucks Customer is easy to relate to.

Virtually anyone reading this book can relate, whether you actually frequent Starbucks or not. Starbucks customers are people with discretionary income who are battling the hustle and bustle of their busy lives, trying to balance everything they have going on personally and professionally—people dealing with the daily grind that can wear us all down from time to time.

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Inspired moments One of the biggest takeaways from this workshop that the group of executives from Starbucks shared was that Starbucks can’t change what’s going to happen today to its Customers. Whether they get a flat tire on their way to work or they are irate because their package didn’t arrive next-day air, as promised, what Starbucks can provide (and does provide very well) is an escape—if only for a few seconds in the Customer’s day. Starbucks allows its Customers to step inside, collect themselves, see some friendly faces—whether it be the workers, friends, or neighbors from the community—and take a break, enjoy a beverage, regroup, and then go back and take on the world again.

There it was. The team had it: the Starbucks’ Customer service vision statement. One of my proudest trophies as a consultant is the Starbucks green apron. The next time you walk into a Starbucks, anywhere in the world, and you see a Starbucks employee wearing that signature green apron, politely ask them to turn the inside top of the apron over for you. There is where you will see the Starbucks Customer service vision statement and pillars printed. It reads:

Why is the service vision statement printed on the inside of the green apron?

It isn’t for the Customers or public to see; it is for the Starbucks employees to see. And every time they put that apron over their head, they are reminded of their job for every Customer with whom they come in contact with.

Personalize—This means customization.

With over eighty thousand ways someone can order a Starbucks beverage, you truly can have it your way.

Pillars to the service vision statement The four pillars to the Starbucks service vision statement have to do with the company’s key drivers of Customer satisfaction:

Each of the pillars is critical, but only in conjunction with each other. Customers want their drinks made exactly how they ordered it, quickly—but not by someone with an attitude. Just the same, a

Anticipate—This might mean that if a barista notices a Customer in a business suit, at 6:05 a.m., ordering his coffee, while barely looking up from his smartphone, he probably has some place to be. Get him his drink and help him get on his way. On the other hand, it can be a completely different pace at 9:05 a.m., when a barista encounters a few mothers who just dropped their children off at school and seem to be in no rush.

Customer does not want someone to greet them by name and have their drink ready for them before they order it, only to have their drink made incorrectly.

Connect—A connection could be recognizing regulars and having their drinks ready for them, or it could just be a smile or a kind word.

Own—Starbucks trusts its employees.

They can own the experience. If a little girl drops her hot chocolate, a Starbucks employee can give her a new one for free.

John R. DiJulius III is considered the authority on world-class Customer service and is the author of three books on Customer experience. He is the president of The DiJulius Group—a Customer service consulting fi rm that works with companies like Starbucks, Chick-fi l-A, The Ritz-Carlton, Nestle, PwC, Lexus, and many more.

John is also the founder and owner of John Robert’s Spa—named one of the Top 20 Salons in America

The content for this article was taken from The Customer Service Revolution: Overthrow convention Business, Inspire Employees, and Change the World, (January 2015 Greenleaf Books)

by John R. DiJulius III

Big Impact The Starbucks service vision statement contributed to the company’s turnaround in 2010 and 2011. Earnings rose 44 percent, Customer visits rose by 5 percent, and more Customers were paying for higher-priced items.

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Right Questions, Right Time The Importance and True Relevance of a Question BY: ERIC FRY, MANAGING PARTNER, SANDLER TRAINING

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takes place once you leave the building... All forward motion stops.

was: “Will you be able to handle a 4-province distribution schedule?”

Then prospect poses an innocent sounding question, “So, how big is your company?”

The prospect no longer returns your calls. Your emails receive ambiguous replies and weeks pass by. You’re off the prospect’s radar screen. You find that no one else in the company seems willing to acknowledge your attempts to reach out. It’s like the prospect has ordered everyone in the enterprise to deny your company’s existence.

As it happens, you can handle a 4-province distribution schedule.

But the answer your company taught you to repeat only mentions one province. And that was enough (non)information for this prospect to tune you out... without telling you why.

ou are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work with you.

Without hesitation, you answer that question. You recite, more or less verbatim, the standard reply you were trained to recite when people ask you about the size of your company.

The answer laid out for you in your orientation workshops, promotion materials, and brochures: 85 employees, a headquarters location, and 3 other regional offices across Atlantic.

The prospect nods and the conversation continues.

Although there are plenty of smiles, pleasantries, and earnest promises to be in touch as you wrap up your meeting, the oddest thing

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What happened?!? You answered all the prospect’s questions!

My belief system states you should only answer your prospects’ questions if doing so can help you... or at least it can’t hurt you.

Since prospects tend to “smokescreen” their questions - meaning that they tend to ask questions whose true purposes aren’t likely to be clear to you at first you must make sure, first and foremost, that you’re answering the real question.

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Guess what? When that prospect so innocently asked, “How big is your company?” the real question

In most cases, and especially in the early going, you have to assume that every question you hear from a prospect is a smokescreen question.

So the question, “How soon can you get shipment to us?” may mean, “Can you get shipment to us by 10:30 Thursday morning?” The question, “How strict are you with quantity discounts?” may mean, “Can I take advantage of the quantity discount and arrange for a 14-day split-shipment?”.

If you make a habit of answering the first question you hear, you’ll never understand the real question!

You must discover why the prospect asked you the question you just heard.

You must identify the underlying intent.

Intent: The importance and true relevance of the question to the topic of discussion.

If you don’t know the intent you cannot respond intelligently.

How do you identify the intent? By Reversing.

Reversing is the strategy of responding to your prospect’s questions and statements with a question.

It puts the verbal ball back in the prospect’s court.

Reversing prevents you from attempting to mind-read. It adds clarity and completeness to the prospect’s smokescreen questions and statements. It helps you uncover the underlying intent of those questions and statements.

Some reversing questions include: Why do you ask?

Why is that important?

Why did you bring that up just now?

What are you really asking?

What are you really saying?

Reversing must be done with caution. Firing back with questions in response to the prospect’s questions may sound harsh. So in most cases, you will want to precede your questions with softening statements.

That’s a good question. And you’re asking me that because...?

Many people ask me that. And that’s important to you because...?

That’s an interesting question. Why do you ask? (What brought that up?)

Good point. And you brought that up now because...?

I appreciate you sharing that. I can’t help wondering, what are you really saying?

Often it takes three or more reverses to get the prospect’s real question.

In this case, if you had asked effective Reversing questions, you could have gotten to the prospect’s true question and confirmed that a 4-province roll-out was no problem.

And you would still be in the game.

Eric Fry is Managing Partner with Sandler Training.

Prior to Sandler Training, Eric worked for a number of well-known, international organizations including Xerox and Staples Advantage while honing his skills in sales and leadership throughout his career.

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Equal or Equitable Pay? How to Get Top Team Performance

BY: GREG CRABTREE, PARTNER, CRABTREE, ROWE & BERGER, PC

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ver since I identified Labor Productivity as the #1 key to profitability in my book “Simple Numbers, Straight Talk, Big Profits!”, I have continued to research how the best teams produce more than their peers.

Professional sports teams offer a good laboratory for this discussion. The NFL presents the best picture since they have a labor agreement that imposes a “salary cap” that prevents any team from spending more than the cap amount any one year. I offer up the New England Patriots as the best example of this. They have made it to the playoffs 12 out the last 14 years and won 3 Super Bowls. During that same time period, the Oakland Raiders have not even come close to the playoffs.

Clearly, the Patriots have produced more output for every dollar they spent than the Raiders. This requires every dollar spent to be productive. Every position player, every coach, and every front office person has to do their job to select the right players, negotiate a fair pay for performance, develop a successful game strategy, coach the players to be ready, and execute to their best ability during game time.

Your business is no different. I contend that every business has a natural salary cap that they must live under.

For every level of revenue, in every industry, businesses have a common cost structure they must live by. The only thing that changes the non-labor costs in business is the actions of exceptional team members. If you have exceptional managers who select, lead, and manage their team, only then will you be able to beat the competition.

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Sounds great, but it is hard to do. I have come to believe that the missing element is compensating your team “equitably” not “equally.” As I have been able to study my clients’ data, it has become evident to me that productive people want to work around other productive people. They also want to be recognized with reasonable differences in pay based on their measurable (or perceived) performance. This is what we refer to as “Market Based Pay for Market Based Performance.”

Whether you try to keep wages confidential or are open book like my company is, your team has a way to find out (or guess) what their peers make. I do not recommend it for every business, but if you do not hide compensation, it causes fewer headaches if you truly strive for no inequities in pay of your team.

Internet sources for comparable pay like Glassdoor.com and Salary.com make readily available data for pay comparison. What you need to do is establish your process to coach your team through where they stand to how they can make more by producing more.

In Adam Grant’s blog from giveandtake. com, I read a quote that really struck me:

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“Equity matters more than equality.

Differences in pay aren’t a problem as long as they’re fair. When players are paid less than teammates who aren’t performing any better, jealousy, resentful, and discouragement often follow. When they’re paid less than teammates who deliver more value, they understand.”

I could not agree more. Your team knows who is productive and who is not. Your job is to take action before the productive ones leave you for a more equitable position. Why would you be the Oakland Raiders when you could be the New England Patriots?

Greg Crabtree, Author of Simple Numbers, Straight Talk, Big Profits, is a partner at Crabtree, Rowe & Berger, PC, an accounting firm focused solely on the needs of entrepreneurs, helping them build the economic engine of their businesses.

Emerging Trend in Construction The Growth of Off-site Construction in New Developments BY: DAVID GREEN, CLIENT EXECUTIVE, VICE-PRESIDENT, CMW

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ff-site construction is an emerging trend among developers and architects for a wide range of largescale projects. Previously used mainly for small temporary structures, this building method is now being employed for entire multi-story buildings that are fully compliant to the same standards as traditional on-site construction.

Complete apartment units or offices can be assembled in a factory setting and then shipped to the actual site.

Off-site construction offers a number of benefits: Sustainability Materials are stored in a warehouse in a dry, controlled environment. They are not exposed to damage from the elements and excess materials can be kept for future projects, generating significantly less waste. Pollution from vehicle traffic transporting materials and workers to the site is reduced as well.

Off-site construction also lends itself to LEED certification. The ability to seal off sources of air infiltration in a factory during construction means the finished building will be more energy efficient, resulting in lower heating and cooling costs.

Quality Control The stable, controlled conditions of off-site building enables more advanced planning and better project management.

A lot can go wrong on a regular job site with all the people and resources involved. In a factory setting, you can establish a sequence of workflows and prepare workstations with all required equipment and tools to avoid crew scheduling conflicts and delays from workers not having what they need.

Materials can be sourced in advance and purchased in bulk. Furthermore, with the implementation of QA/QC programs and testing protocols, you can ensure all components are built to required standards.

Efficiency One major advantage off-site construction provides is a shortened project schedule. With the building activities happening indoors and away from the site, delays due to unfavourable weather are no longer an issue and two phases of the project can be happening simultaneously. Large building components (i.e. floors, walls, ceilings, roofs, etc.) can be completed at the same time and then assembled while the foundation is being poured. Time-savings equates to cost-savings in this business and off-site construction can cut weeks or even months from the completion timeline.

Additionally, there is no disruption to local communities around the site and any usual business operations occurring there can continue uninterrupted.

Safety Safety conditions for contractors, subcontractors, trades and labourers are dramatically improved as they are not exposed to weather and other hazards of working outdoors. Meanwhile, a controlled factory setting allows easier supervision and implementation of safety programs.

This practice is already widely used in Europe and has been gradually gaining momentum in recent years throughout North America. The adoption has been slow and limited to specific types of construction as many in the industry still view it as experimental. However, its popularity is expected to grow as we see more of its application in all kinds of residential, industrial, municipal and commercial developments.

David Green is a Client Executive, Vice President at CMW Insurance Services Ltd. David brings 13 years of insurance experience, including a decade at two large international brokerages.

He has significant expertise working on large complex risks for public and private entities, particularly with major infrastructure projects delivered through the Private Public Partnership construction model.

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The Concern of Cyber Security

Demystifying Privacy Risks Businesses Face in a Technology-Driven World BY: SEAN GRAHAM, CLIENT EXECUTIVE, VICE PRESIDENT, CMW

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usinesses are increasingly reliant on digital technology to operate. A wealth of sensitive information is being stored electronically, yet most business owners remain unaware of the liabilities they face and do not view cyber security as a concern.

The truth is that every company has a database of some sort that can be exploited. Whether it is customer and employee records or proprietary company information, it is valuable and will be a target for thieves both internally and externally.

A privacy breach is any unintended release of sensitive personal, proprietary or financial information. It can result from an attack on the company’s database, hard copy files from locked filing cabinets or even lost or stolen mobile devices owned by employees.

Your network could be compromised in a matter of minutes by a fake e-mail from a cloned LinkedIn site tricking employees into giving up usernames and passwords.

The Consequences of a Privacy Breach Should you experience one, the company could be held responsible for: • Costs to notify all affected • Damages arising from affected individuals suing • Fines and penalties imposed by regulatory bodies You could also face mounting costs for investigation, legal defense, repairing data and systems as well as reputation damage. It has taken years for companies to recover while many have failed to survive.

Privacy risks affect all companies, from large multinationals to small local businesses. It is your responsibility as a business owner to take all precautions to protect the private information of employees, suppliers and customers.

Reducing the Risk Basic IT security measures (updating firewalls and anti-virus/malware/spyware software, encrypting and backing up data, etc.) are a starting point. Some additional steps include: 1. Limiting access to your website › Only provide administrative access to those responsible for changes 2. Being cautious with content that is posted to your website › Company websites are among the first places cyber criminals look for data 3. Restricting access to your network › Only provide staff the level of access needed to perform their duties 4. Implementing privacy, password, internet usage and social media policies › Educate and train your employees

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5. Minimize and safeguard print materials › Implement procedures to limit quantity printed 6. Dispose of trash and equipment containing sensitive information securely 7. Seriously consider cyber liability coverage The Importance of Cyber Liability Traditional property and liability policies will not cover the types of events discussed here. The term “data coverage” is often misunderstood in these policies – it refers to the physical materials such as hard drives or paper records that data is stored on, not the actual information.

Even if there is a policy enhancement for cyber events, it is usually very minimal and does not include costs for investigation, legal defense or reputational restoration.

Cyber liability policies are available separately and were developed to specifically address risks associated with digital technology breaches that have left organizations crippled. As more and more incidents come to light, particularly among smaller to mid-sized companies, cyber liability will become even more essential. A breach is inevitable but you don’t have to be a victim. Ask your broker about cyber liability.

Sean Graham is a Client Executive, Vice President at CMW Insurance Services Ltd. As a trusted Risk Advisor to a diverse group of organizations, he works with each client to create an insurance program that addresses their specific risks and supports their operations and objectives.

Leveraging his 20 years of consulting experience with organizations of all sizes, he has a long track record of building lasting relationships through innovative, collaborative solutions and enterprising client care.

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Cutting Operating Costs

Cut Operating Costs for Your Commercial Vehicles with ICBC’s Fleetplan BY: MICHAEL BENNETT, CLIENT EXECUTIVE, VICE PRESIDENT – TRANSPORTATION, CMW

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f your business uses vehicles as part of your operations, a review of your insurance program may reveal some excellent opportunities to improve your protection while saving you a significant amount in premiums.

Many small to mid-sized businesses are not aware of the availability and advantages of ICBC’s Fleetplan program.

Any legal entity operating a minimum of five motorized vehicles can benefit, as long as those vehicles are primarily used for commercial or business purposes.

Once the basic requirement of five or more motorized vehicles (trucks, cars, motorcycles, etc.) is met, trailers can also be included in a fleet.

Any person or company with five to nineteen vehicles can apply for Fleetplan status with ICBC, and if you have 20 or more vehicles insured for commercial or business use, Fleetplan participation is required.

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​ enefits – What’s In It For You B With Fleetplan, you can get better discounts on your premiums and simplify your vehicle insurance administration.

Vehicles rated by an individual owner or driver can achieve maximum discounts of 43% on basic mandatory insurance and 54% on optional coverages. Vehicles insured under Fleetplan can receive a maximum premium discount of up to 63% for both basic and optional, saving you hundreds of dollars or more per vehicle.

Standard policies require you to declare a Principal Operator for each vehicle - this can lead to trouble if the main driver changes and you forget or neglect to advise your insurance broker. Under Fleetplan, there is no need to declare a Principal Operator, and that can save you from a ‘breach of coverage’ situation in the event of a claim. Premiums are determined by the vehicle and fleet history, not by the driver’s record, so having drivers use different vehicles on different days does not jeopardize your insurance protection.

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Larger Fleets Another benefit is that the discount applied to your fleet’s insurance is calculated by the losses versus the premium for all vehicles in the fleet, and not by each vehicle’s experience. This can help protect you from the potential negative impact or premium increase after one or two smaller claims by one of the vehicles.

For larger fleets (200+ vehicles or an annual premium of $100,000+ after discount), a Fleet Premium Adjustment Agreement is available from ICBC. This can result in a further discount 35% at the end of the policy term if your losses are below a pre-determined ratio.

There are many advantages of placing your company vehicles on a fleet policy, and your CMW Risk Advisor can provide you with any information you need.

Michael Bennett is Client Executive, Vice President – Transportation at CMW Insurance Services Ltd. Michael brings 18 years of insurance experience, specializing in the trucking, automotive and marine industries. He leads the Transportation Division at CMW and his clientele includes companies of all sizes in the trucking, warehouse, repair, dealership, tug & barge, marina and fishing resort industries. He is proud to serve as a member of the Boards of Directors for both the BC Trucking Association and the Canadian Association of Fleet Supervisors.

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Is Your Business CASL Compliant?

Protect Your Business Against Growing Cyber Risks

Complete your commercial insurance portfolio with Legal Expense Insurance and protect your business against growing cyber risks.

Business owners need to handle a host of responsibilities ranging from planning and strategizing to managing technology risks. Entrepreneurs easily recognize business revenue opportunities but might not always take into consideration the unforeseen and costly legal risks that come with owning and running a business in today’s cyber-world.

Only 49% of business owners believe their current commercial insurance policies provide adequate legal expense coverage for legal risks facing their business.

Only 49% of business owners believe their current commercial insurance policies provide adequate legal expense coverage for legal risks facing their business.1 External events, such as new legal requirements, the development of new technology, or the introduction of new legislation can fundamentally change the way companies do business. A recent example is Canada’s Anti-Spam Legislation [CASL]. Introduced in July 2014, CASL has dramatically changed the way Canadian businesses market themselves. Applying to any form of electronic messages and requiring companies to obtain and store express consent, CASL’s significant requirements are costly to implement and its penalties are severe, with maximum fines reaching up to $10 million for companies.

The Canadian Radio-television and Telecommunications Commission [CRTC] issued its first-ever Notice of Violation to a Quebec-based company which is now facing a $1.1 million penalty.

20% of business owners don’t know if their business is CASL compliant and if they can effectively respond to a CRTC inquiry into their digital marketing practices.2 Are you one among them?

DAS offers a comprehensive insurance solution to business owners trying to manage their CASL risk. Among other common business legal issues, the DASbusiness solution covers legal expenses to respond to alleged CASL violations. It also gives you unlimited access to DAS’s telephone legal advice helpline, a toll-free advice line available 24/7, which allows you to prevent or reduce potential exposure to litigation.

Unsure about CASL’s requirements or if all your electronic messages are CASL compliant? A simple call to DAS’s legal advice helpline is the first step to find answers and obtain guidance. What’s more, DAS will assign a lawyer to help with a formal response if the CRTC issues a Notice of Production requiring you to prove you did not violate anti-spam laws.

An effective formal response requires a significant amount of a lawyer’s time, which could end up costing your

company thousands of dollars. With a DASbusiness policy, these legal expenses are covered from the first dollar spent.

Moreover, should you receive a Notice of Violation, DAS will assign a lawyer and cover all legal expenses to defend against the notice. In 2017, individuals will gain the right of private action, allowing anyone affected by a violation of antispam laws to sue for actual or statutory damages. DAS will also assign a lawyer and cover all legal costs to mount an effective defence.

More than proper CASL-related coverage, a DASbusiness policy gives you legal coverage and peace of mind so you can focus on what matters most to you, managing and growing your business. It protects you from costly legal expenses, allows you to defend or pursue your legal rights, and gives you unlimited access to legal advice.

Contact your insurance broker to find out how a DAS Legal Expense Insurance policy completes your commercial insurance portfolio.

1. DAS Canada/Ipsos market research survey of 1,005 small business owners completed in January 2015 2. DAS Canada/Ipsos market research survey of 1,005 small business owners completed in January 2015

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