BELLWETHER Top Ten Myths About Business By Ed Kless
Is There A Recipe for Building Great Customer Relationships? By David VanToor
When Projects Fail By Alicia Anderson
Why Go
By Alicia Anderson
MOBILE?
Volume 1 | Issue 1 | Fourth Quarter 2010 w w w. b e l l w e t h e r m a g a z i n e . c o m
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Bellwether Magazine | Fourth Quarter 2010
Why Go
12
MOBILE? 4
Featured Article
6
Work | Life | Balance
7
Sales and Marketing
8
sections
Letter from the Editor
Industry News
10
Cover Story
12
Customer Relationships
14
State of the Economy
16
Leadership
18
Product Information
20
Human Resources
22
Book Report
23
cipe e a Re r e h T Is reat ing G d l i u for B mer Custo ips? ionsh Relat
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18 Top 10 Myths About Business
bell•weth•er -noun: one who takes initiative or leadership
3
LETTERFROMTHEEDITOR
BELLWETHER
A Blytheco, LLC Magazine Volume 1 Fourth Quarter, 2010 www.blytheco.com www.bellwethermagazine.com Twitter: www.twitter.com/blythecollc Facebook: www.facebook.com/blythecollc www.blytheco.com/blog
STAFF
EDITOR Apryl Hanson CREATIVE DIRECTOR Greg Went CONTRIBUTING WRITERS Alicia Anderson Dori Fitch Ed Kless David VanToor ADVERTISING SALES / SUBSCRIPTIONS Dori Fitch www.bellwethermagazine.com Or contact Dori Fitch (800) 425-9843, Extension 1168 dorif@blytheco.com Bellwether Magazine is published Blytheco, LLC with principal offices at: 23161 Mill Creek Road Suite 200 Laguna Hills, CA 92653
by
If you wish to be removed from the mailing list or to add names to the mailing list, send your request, including name, business name, and mailing address to the above address or to dorif@blytheco.com This is a copyrighted publication and all articles herein are covered by this copyright. Any use of the content for commercial reasons or other form or reproduction of material herein is strictly prohibited without prior, written approval of Bellwether Magazine.
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Bellwether Magazine | Fourth Quarter 2010
Where will you read it?
BELLWETHER Subscribe at:
www.bellwethermagazine.com
FEATUREDARTICLE
W
hat would you do if your company was losing profitability? With the economic changes we have seen in the past few years, many business leaders are watching the bottom line more closely, and seeking strategies to propel them out of the doldrums and into successful performance.
Turn-Around
Organizational change begins with creativity. As a leader, you have to tap into your creative power to find innovative solutions to the problems you face. Accessing the creativity that we all possess requires that we approach challenges without anxiety and with the desire to learn, change and grow.
Kenneth Williams, CEO of The Shred Authority, won the Rising Entrepreneur of the Year award at a recent Kellogg School of Managment Alumni conference. The Shred Authority, a document destruction company based in Chicago, underwent a complete turnaround after Williams purchased the company in 2005.
Among the strategies Williams used to turn the company around were: a branding campaign focused on the new mission and leadership of the company, a renewed commitment to quality customer service, and a structured financial plan that emphasized measuring progress. We asked Williams a few questions about his creative approach to his company’s turnaround:
Q&A with kenneth williams
by Alicia Anderson
How did you get involved with The Shred Authority?
How does creativity fit in your business model?
I had been working with companies like Morgan Stanley Dean Witter and Citigroup, using my entrepreneurial skills to help them develop new businesses and save money. I met a guy from Chicago on a plane to Dallas – he had a shredding business and was interested in a partner to help him out. We became friends, and two weeks later I was in Chicago meeting with his management team.
Creativity is 90% of what we do. Each client we take on gets a completely custom approach to their business and we create processes just for them. We disregard the “rules” about how customers are treated and approach them like we are employees of their business. For example, one of our employees recognized that a customer had a piece of equipment onsite that they were no longer using – the customer was not aware of it. The employee had the equipment removed, saving the customer money. The customer was surprised that we would do this without being asked to, but that’s the way we operate.
What did you learn when transitioning your team? I always second-guess myself on purpose now. For example, when we interview a new employee, I prefer to set up a “team interview” and have others join me, just in case I’m having a bad day or got up on the wrong side of the bed. Most of the time, the team just confirms my instincts about the person, but I don’t want to take the chance of misjudging someone.
During the transition, our employees were challenged by being empowered to create their own solutions – they had been used to being told what to do. Now, when our clients say “Jump,” they ask “How high?” They have a few foundational rules, but as long as they stay within them, they can do whatever they need to do to satisfy our clients.
How do you manage personal anxieties about your strategies? I guess I don’t give myself time to really think about it. I try to focus on one thing at a time – in my case, I prefer to look at the trees instead of the forest when tackling everyday challenges. I also prepare for every possibility and manage risk, which minimizes the anxieties brought about by “surprises” in my business. I find our weakest links and prepare against them. And I don’t take it personally. Recently, one of our subcontractors left to start his own business. People asked me “Aren’t you mad he did that?” – of course I’m not mad, I’m happy for the guy! I know it’s not a personal affront to me. And, I was prepared for that to happen, so it’s no problem.
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Bellwether Magazine | Fourth Quarter 2010
WORKLIFEBALANCE
YOUR by Apryl Hanson
“Never regard study as a duty but as an enviable opportunity to learn to know the liberating influence of beauty in the realm of the spirit for your own personal joy and to the the profit of the community to which your later works belong.”
Why would this help you? As so many people struggle with work life balance questions and leaderships challenges, we forget that the most important thing we can bring to any situation is a calm and rational self. When we are in this state of mind we can be creative to come up with solutions that can help others get to a more creative and less anxious state.
“
Albert Einstein, In the Princeton University freshman publication, ‘The Dink’, December 1933
A lot of people say they are life long learners, but what does that really mean? For the majority, I think it is an acknowledgement that they must spend their precious time here learning something new. But how far can we take that? Should we learn something new everyday? And who are the benefactors?
What is most important here is your presence as a leader.
The balance all begins with you.
Being a leader often challenges us in unique ways. We struggle with questions like: • • • •
How should I act? How will I be perceived Will others like me? How do I motivate people to do what I need them to do for us to be successful?
“What is most important here is your presence as a leader” says mentor, leadership expert and co-founder of Healing Leaders, Howard Hansen. Hansen coaches that the most important thing a leader can do is focus in on developing themselves and not worry about others.
bell•weth•er -noun: one who takes initiative or leadership
7
SALES&MARKETING
This Market situation has created more price sensitivity than there was thirty years ago. What is creating the perceived price sensitivity is that the perception of value is more scrutinized as word of mouth is more generalized. Word of mouth today is in customer case studies, tweets, video testimonials, blogs and so much more. People aren’t sure what marketing hype versus actual reality is. Tip: Establish a trusting win-win relationship with your prospect and you won’t have oversensitivity to price. If your prospect truly trusts you and your knowledge and experience they will gladly pay a fair price.
by Apryl Hanson
I
n the market we are in today, is the sales process any different than it was thirty years ago? Most would say yes, but let’s compare to determine how things have really changed. •
•
8
“
Buyers Education Level – Most people would say that with our vast access to information, consumers today have a much higher education level than those who were purchasing 30 years ago. To some extent, for some of the population, I think we do have a more educated buyer but for the most part I think what we’ve created is a more confused shopper. With information overload and a lot of blogs with personal opinions, a consumer may not know which way is up. Tip: Educate your prospects based on their level of understanding of your subject. Get to know where they are in the process, how much research they’ve done, and what their understanding is before proceeding into the sales process.
•
Finding Appropriate Consumers – Because of the availability of information on the internet, it is easy to post lots of information and receive leads, but how many of these are quality? Thirty years ago we used word of mouth and direct mail pieces; neither were flooded contact methods so although prospects were fewer in number the quality was much higher. Now sales people have to go through a lot of leads in order to get to the ones that are qualified. Tip: Find ways to categorize all of the prospects you receive into your business, and set up standard ways of communicating with them based on how they came to find you.
I think we do have a more educated buyer Some things are different today than but for the most they were 30 years ago, but the bottom is to emerge with a plan to tackle part I think what line these potential challenges and make we’ve created is them work for you. a more confused If you have a sales challenge or a successful sales story you would like to shopper. share with us please do so at: aanderson@
Price Sensitivity – I don’t think our current financial
Bellwether Magazine | Fourth Quarter 2010
blytheco.com and we may include your information in our next edition.
Health Care Reform Basics for Small Businesses by Alicia Anderson
K
ey provisions of the health reform legislation
provide coverage and must purchase the coverage
passed by Congress in March, 2010 are
from a state exchange plan.
already beginning to kick in. We’re looking
at just a few of the ways businesses are already seeing impacts of this law.
Starting in 2014, companies with 50 or more employees that do not offer affordable “minimum essential coverage” or pay at least 60% of coverage costs for employees will be subject to a penalty if a full-time employee buys insurance from a state exchange plan. Individuals who do not maintain health coverage will be subject to penalties starting in 2014. Business will also need to meet new reporting requirements as a result of the legislation. Beginning in 2011, the value of an employee’s company-provided health care coverage will need to be reported on W-2s. Insurance companies will also be required to provide coverage information to individuals and to the IRS, and the IRS will begin
The Affordable Care Act offers a tax credit to small businesses who pay at least half the cost of insurance coverage for their staff in 2010. From 2010 to 2013, the maximum credit is 35% of premium, and goes to businesses with ten or fewer full-time employees who pay average wages of $25,000 or less. The credit decreases gradually as a company’s number of full-time employees increases, and/or as average wages increase. Starting in 2013, companies get
notifying individuals who fail to enroll in the minimal required coverage.
Visit the IRS website (www.irs.gov) or speak to your accountant to learn more about how this new law will continue to impact your business.
the credit for only the first two years for which they
bell•weth•er -noun: one who takes initiative or leadership
9
INDUSTRYNEWS
WHEN PROJECTS FFA AII LL by Alicia Anderson
W
hile recent news about Marin
Successful projects must involve the right system users and
County, California’s decision to
administrators. If customers don’t have the right people on
scrap their $30 million SAP project
board, they should get them and get them involved BEFORE
has deteriorated into filing lawsuits and finger-pointing, the
launching a project. Business management software is no lon-
story still has lessons for those of us working on less visible,
ger strictly an IT decision. Since ERP software can affect ev-
less politically-charged projects.
ery functional area of the business, systems decisions are now strategic business decisions. Management must be involved,
Marin County had contracted with Deloitte Consulting to re-
as they serve as the visionaries and advocates for the project.
place the local Civic Center’s pencil and paper accounting sys-
A committee or task force composed of key players may also
tem with SAP, but the project failed, and the county is now
be assembled to provide guidance. Communication with the
suing Deloitte.
staff throughout the project can keep employees engaged and
Analysis on Michael Krigsman’s “IT Project
“
Failures” blog on ZDNet (www.zdnet.com) cites both “Marin’s apparent lack of organizational and governance maturity, and its inability to absorb business transformation changes associated with this implementation” AND “Deloitte’s posturing and unwillingness to ac-
cept even partial responsibility” as reasons for this undesirable result. Two key lessons here are: the importance of clear project expectations and the value of participation of stakeholders.
supportive of the project. Providing them periodic updates ensures that users feel invested in, and positive
If your team has not defined the anticipated benefits of a new system, your project will suffer from lack of direction.
In any business technology implementation, both parties (customer and vendor) need to communicate and
about, the new system. Krigsman, CEO of Asuret Inc., a Massachusetts consulting company dedicated to reducing technology implementation failures, writing on ZDNET has it right: “Note to software vendors and system integrators: A substantial number of your customers, especially those who are smaller, only purchase ERP once in many years; these folks require more education than you typically provide during the selling process. Situations like this make clear that something is deeply
wrong with your approach to sales and consulting.
document every expectation, from total project costs to functionality provided. Unclear definition of functional needs and
Note to enterprise buyers: There is no escaping that you are
expected results are two of the biggest mistakes companies
ultimately responsible for the success or failure of your project.
make in selected ERP systems and providers.
That said, when you hire services vendors be sure the contract includes provisions that connect cost and time to achieving
If your team has not defined the anticipated benefits of a new
successful results. If your vendors don’t have skin in the game,
system, your project will suffer from lack of direction. Keep in
then go elsewhere.”
mind, however, that no system can fix every business problem overnight. Business challenges are often the result of years of
Read more about the top mistakes that companies make when
neglect or mismanagement, and it is important that realistic
implementing new ERP systems, so you can avoid them in your
objectives be set about the capabilities of any new software
business. Email solutions@blytheco.com for your copy of the
system.
Blytheco whitepaper “Typical ERP Evaluation Mistakes: Pitfalls to Avoid Before You Buy.”
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Bellwether Magazine | Fourth Quarter 2010
INDUSTRYNEWS
Small Businesses Get Creative and Find Ways to Give
T
here’s no doubt the nationwide recession has made a serious impact on corporate giving. With layoffs, reduced sales, and increasing costs of operation, many small
businesses have been forced to reduce or eliminate charitable contributions from their budgets. A Giving USA Foundation study from 2008 noted that corporate giving decreased by 4.5% in 2008 and the slump continues as the economy struggles to find its feet.
by Alicia Anderson
T
he New York Times recently featured several compa-
•
Get employees involved. Solicit feedback from your
nies who found creative ways to keep giving through
staff about what causes are meaningful to them,
hard times while cutting back on actual cash donations.
and brainstorm about ways they can help. Maybe
A moving company used its trucks to collect supplies for
they are willing to sacrifice the annual holiday party
the victims of Haiti’s earthquake; an IT company spon-
in favor of a donation of cash or services to a charity.
sored a golf tournament, helping a local charity and gaining an opportunity to entertain clients at the golf outing.
Supporting communities has always been part of Blytheco’s culture - for years Blytheco teams have worked with groups
Serving charities helps others, but it also boosts em-
like the American Cancer Society and others to raise money
ployee morale and can help businesses create valuable
and awareness for important causes.
relationships and increase visibility in their communities. To commemorate Blytheco’s 30th Anniversary, the comThe Better Business Bureau Wise Giving Alliance offers sever-
pany has integrated community support into our re-
al tips on how to maximize your company’s charitable giving:
cent “1,000 Hours” initiative, while also creating a spirit of the “rising tide” that lifts all our business boats.
•
•
Check out the charitable organization - before giving, verify your target charity is a legitimate orga-
The goal of 1,000 Hours is to create $1,000,000 worth of
nization and be sure you are comfortable with how
measurable results in clients’ businesses with free consult-
they will use your donation. Use the Better Busi-
ing work, and to generate $100,000 in donations from the
ness Bureau or Guidestar (www.guidestar.org) to
business community to selected charities from those com-
review charities’ history, leadership, and strategy.
panies who receive free consulting. Here’s how it works:
Get creative – Evaluate alternatives to cash donations. Can
•
Companies apply for 8 hours of free consult-
your company offer its services to a charity at no charge,
ing service, with a specific project in mind that
or would you be willing to offer employees a day off dur-
will provide a measurable ROI to their business.
ing which they would work for a non-profit organization? • •
Take the tax break - talk with your accountant
ed charities, choosing from the American Cancer Soci-
about
ety, Liga International – the Flying Doctors of Mercy, or
taking
the
tax
deduction
allowed
when
donating to a charity with 501(c)(3) IRS status. •
Applicants agree to donate to one of Blytheco’s select-
the Make-a-Wish Foundation.
Plan it out - with so many worthy causes and reputable
Getting creative with your organization’s charitable giving
charities needing help, it may be hard to choose how
plan can help you maximize the value of your donation, re-
best to use your limited resources. Put some standards in
energize your team, and create valuable relationships in your
place about what’s important to your company. Having a
community. If your company has found a creative way to give
plan for focused, directed giving helps your budget and
back, let us know! Maybe we’ll spotlight your company in
means you make more of an impact with your donations.
the next issue.
bell•weth•er -noun: one who takes initiative or leadership
11
COVERSTORY
S
Why Go
MOBILE? by Alicia Anderson
o you can’t keep your hands off your Blackberry, even after work hours, and it seems like everyone on the street is texting. It’s clear that mobile technology is making a huge impact on the way we live. Because of the fragmentation of the mobile market (which continues to drive low pricing for phones and service), and the expanding presence of wireless access, we are online more than ever. Who is using mobile technology, and why? Consumers have adopted mobility en masse as a way to keep up with the flood of information they receive daily. A Pew research study from May 2010 shows that 40 percent of Americans use mobile devices for email, the web, or texting – an increase of 8 percent over 2009. They rely on smart phones to keep up with friends, family, and businesses, and vendors are racing to create mobile applications to keep their companies at a customer’s fingertips. About eleven percent of the Pew study respondents have purchased a product using their phone. Mobile commerce is driving and responding to this demand, and the ability to make payments using only the phone will likely soon make credit cards obsolete for many consumers. Businesses are also using mobile technology to interact with other businesses. The ability to use email and the internet while on the road has enabled business people to remain productive away from the office.
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Bellwether Magazine | Fourth Quarter 2010
They can work on documents, correspond, and schedule appointments with only their phone. Business appli-
Your business: Mobile technology has significant positive implications
cations that allow for more sophisticated work are im-
for businesses, but like any company initiative, your
proving productivity even more, while blurring the line
mobility must be managed. Formulate a strategy for
between “work day” and “personal time.”
setting up mobile infrastructure. Create a company
When thinking about a mobile strategy for your B2B company, consider: Your employees: What do they need to be productive while traveling or working from
“
home? Salespeople should have the ability to check customer contact in-
formation and order status so they can manage their time effectively.
Mapping tools and inventory insights
are a bonus for the “road warriors” in your company. Executives and managers need dashboard and reporting
policy around mobile phones and negotiate with vendors for the best billing options. Consider the IT Department’s needs; they should approach phones like “mobile terminals,” and work to implement security controls just like those used for in-office equipment.
And keep in mind - don’t let your At a minimum, phone manage you. Look up once your website in a while and take a breath. Getting should be mobile- perspective on your life and your work can energize and refresh you compliant, or have more than another online check of a mobile-friendly the headlines, and your positive energy is one thing that still can’t be interface delivered via text.
capabilities so they can make decisions quickly while on the road. Look for reliable mobile business tools that look like what your team uses at the office, to minimize the learning curve and encourage user adoption.
Your customers: What types of mobile technologies would your customers benefit from? At a minimum, your website should be mobile-compliant, or have a mobile-friendly interface, so customers trying to reach you from their phone have a positive experience. Also think about “apps.” Could your company create a mobile application that would make it easier and more pleasant for mobile customers to reach you? The level of customer satisfaction and increase in sales these tools could provide could be significant. These relatively inexpensive strategies are a way for small to medium-sized businesses to level the playing field, enabling them to look like a larger company with an impressive mobile presence.
bell•weth•er -noun: one who takes initiative or leadership
13
cipe e R a re Is The reat G g n ildi u B r fo er m o t s Cu ps? i h s n io Relat by David or van To
T
his question was asked recently on an online discussion board I’m a member of, and as I thought about it more, answering it seemed to be a great way to begin my contributions to this publication. The discussions on the board covered the expected range of opinions including building trust, credibility and listening. Some contributors suggested there was no recipe - that every customer interaction is unique. Personally, I believe there is a recipe, or at least a broad framework for building great relationships. But first, let’s be clear what question we are answering. For the sake of brevity, I’m going to assume that most of us, when we see the phrase “Great Customer Relationships” infer a longer-term quality relationship which exists based on mutual benefit to both parties. That being the case then, I’m going to discuss three key elements: caring, product and communication.
Caring
Not a word you’re likely to find in the Goldman Sachs procedures manual, but the most basic element in creating a business based on relationships.
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Bellwether Magazine | Fourth Quarter 2010
Do you actually care about your customers? I think that most CEOs today would say “Yes.” I also think that most are not answering the question honestly. Or at least they are not answering accurately. They are confusing the question with “Do you care about your customer’s money?” To actually care about your customers means that you are probably providing a product or service that you are actually passionate about. Sadly, that does not describe the majority of CEOs. The reason this is critical is that caring, or empathy, or concern - or whatever synonym you use - is the foundation of meaningful human relationships. A relationship with a customer without caring may be profitable. It may meet some company objectives. It may help you meet quota. But it is not going to be great.
Product or Service
The reason that a vendor to customer relationship exists is the product or service that is provided. Therefore the quality of that product or service is critical to the quality of the relationship. From a customer’s perspective, there is a simple definition of product quality.
CUSTOMERRELATIONSHIPS
Does it solve the problem that I bought it for, without creating other problems I did not want?
“
If your product does not do this, then forget about building great customer relationships. If your product does not do this, then your relationship is based on deceit, at least in the mind of your customer. Fix your product or service first. Solve your customer’s problems simply and effectively. Then you can move to building relationships.
David van Toor is the founder of No Plan B LLC, a businessto-business consulting firm specializing in the development and implementation of new processes that ensure the delivery of a profitable, and consistently unique, customer experience. Prior to creating No Plan B, David spent over 15 years in executive leadership positions with public software companies in the US and overseas. Most recently, David served as Senior Vice President for Sage Software in which he led the development and execution of a succession of product lines, culminating in his role as General Manager of the ACT! and SalesLogix CRM Products.
The problem with communication is the illusion it has occurred.
Communication
As George Bernard Shaw once said, “The problem with communication is the illusion it has occurred.” Communication is often mistaken by corporations as informing. Relationships involve the mutual sharing of information. Do you, in your business, provide as many ways for customers to meaningfully interact with your organization in ways they want to as you have for sending them information? The key words in the above question are in ways they want to. Do they want to know your product direction? If so, then can they interact with your Product Marketing department? Do they want to be able to talk with other customers? If so, what tools do you provide to allow that? I’ve really only scratched the surface of creating Great Customer Relationships, and will continue this theme in other articles. If you agree or disagree with anything I’ve written hear, please let me know at david@noplanb.com
A long-time evangelist of the customer experience, David is an advocate of using Web 2.0 technologies to create transparency of businesses to consumers, thereby opening the lines of communication between businesses and their customers. David has been commended by industry analysts for creating Sage Software's ACT! Online Community, which gave ACT! customers the opportunity to have direct access to Sage executives, while also allowing Sage executives a more dynamic view of the issues most important to their customers. Within its first twelve months of operation, the ACT! Online Community had over 8.9 million page-views and drove a 20-point increase in its customer loyalty scores. Recognized by business industry leaders and analysts alike for his provocative and innovative leadership in the customer communications arena, David continues to develop new methods for businesses to strategically approach, and monetize, the Customer Experience.
bell•weth•er -noun: one who takes initiative or leadership
15
STATEOFTHEECONOMY
N
ews on the economy is a mixed bag this fall. Some indicators are turning positive while some still lag. On the positive side, the performance of the stock market signals growth, companies like eBay and Caterpillar are providing strong earnings forecasts, and retail sales are up. However, the job market still shows little improvement. Credit is hard to come by for many, but it’s cheap for those who can qualify, with interest rates at historic lows. by Alicia Anderson
An October, 2010 survey by the National Federation
period. If the recession ended as of June, 2009 (as the
of Independent Business (NFIB) showed a .2 point
National Bureau of Economic Research stated), small
gain in its Index of Small Business Optimism – still in
business owners have not all seen the light at the end of
recession territory, with hiring, capital spending, and
the tunnel quite yet.
sales numbers all declining in the previous three month
What are some key strategies for businesses navigating these murky waters? 1. Keep listening to your customers. The ability to quickly assess and adapt to customer needs is not going away, and companies with this ability will thrive regardless of our economic environment. 2. Spend wisely. Don’t stop serving customers adequately. Just be prudent – find creative ways to cut costs without impacting service quality. 3. Sell strategically. Determine what types of customers are most profitable for you, and acquire more of them. Not all customers have the same value.
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Bellwether Magazine | Fourth Quarter 2010
by Apryl Hanson
A
s social media is gaining speed, many of us are left wondering how we are to navigate these waters when it comes to employees, clients and brand management. The social media experience is driven by each individual, their opinion, and their relationships. So when it comes to brand management and relationships with your employees and clients, driving a social media strategy may seem a little like herding cats. Have you been avoiding a social media strategy because
document your internal expertise and even acquire certain
it seems overwhelming, or because you don’t think that it
knowledge if needed. Also, find out who your influencers
will lead to positive results for your brand?
are in your industry and find ways to engage and interact
Don’t miss out on a great opportunity to take your brand
with them socially.
to the next level. Below are some tips to consider when
Work with a tool that allows you to listen to
developing your strategy:
conversations about your key words. If you have key
Who is responsible for social media strategy? One assumption is that social media is everyone’s responsibility in the company. While that may be true, if it doesn’t have an owner, you won’t have a strategy. Find an owner who is responsible for the overall strategy and can take responsibility for getting participation from your executives
words that you’ve identified for your website, find a tool that helps you listen to the conversations that are happening in social media around those key words. This will help you find influencers. Resources like www. tweetdeck.com or www.hubspot.com have great tools to develop social media strategy.
and employees. Give your employees a voice and empower them to use it. Hold classes to teach employees what types of social media avenues are appropriate and what messages you want to send. The Social Media “owner”
can
engage
employees
to
respond to conversations based on their expertise, knowledge and passion. Understand who your experts and influencers are. You should find a way to
bell•weth•er -noun: one who takes initiative or leadership
17
LEADERSHIP
Top 10 Myths About Business
W
by Ed Kless
hile going through some old notes I found this list I had developed of the top ten myths about business. Without further ado, they are: 1. Business is a zero-sum game. Oliver Stone makes
4. Increasing market share leads to increased
great movies, but he knows nothing about basic
profitability. Market share and profitability are not
economics. Free and fair exchanges create wealth
related in any way, unless, of course, you have been
(value) on both sides. In other words, business is a
granted a monopoly by the government. If anything,
positive sum game (win-win).
the reverse is true. If you are highly profitable, you
2. Price is based on cost. Cost is but one factor that truly great pricers take into account. Other
should you so desire.
factors include: perceived value of the customer,
5. Focusing on efficiency makes your company
risk, timing, and scarcity. In fact, cost is the least
more effective. Wrong! Efficiency means doing
important of those mentioned
something right. Effectiveness means doing the
3. Excessive profits must be because the company is doing something evil. First, just what is excessive? Second, the truth is that profit is “an index of your altruism,� as George Gilder says. Profit indicates how well you focus your attention on the needs of others, namely your customers and potential customers.
18
can create a strategy to increase your market share
Bellwether Magazine | Fourth Quarter 2010
right thing. The former is always a measurement; the latter is a judgment. A focus on efficiency kills innovation because in the end the result is always the same. A focus on effectiveness changes the result. 6. Leadership is about changing others. While leaders may inspire others to change, they can
never change them without the other willingly
would have given them a faster horse.” Customers are
changing. There is a difference between accountability
rarely innovative. Companies that try only satisfy the
and compliance. Accountability can never be imposed,
wants of their customers will not innovate. Innovative
since by definition, it is a choice. I choose to be
companies look at the needs of their customers or
accountable.
prospects and ask, “How can we best fill that needs?”
7. Strategy is about analyzing, planning, and doing. Strategy is about creating, executing, and deciding what are you going to say “no” to.
“
8. Business is science, and requires data to back up
decisions.
practitioners
While
some
may
claim
otherwise, business is a pseudoscience.
With
few,
if
any,
testable hypotheses, business
fails in every way to classify as a scientific endeavor. Reliance
on data has become a codependent
relationship
for
most managers, similar to drug or alcohol addiction. 9. The customer is always right.
In addition, some customers are a drain on your organization. You are often better off without them. 10. Differentiation can be achieved by saying you are customer focused. Unless you are truly world class in service (think USAA and Ritz-
If I gave my by saying to a prospect that you care about your customers. customers what Why? Because so does everyone else. Have you ever heard an they wanted, I organization say we provide crappy service to our customers? would have given them a faster horse. Henry Ford Carlton), you can’t differentiate
Henry Ford said, “If I gave my customers what they wanted, I
Ed Kless joined Sage North America in July of 2003 and is the senior director of partner development and strategy. He developed and delivers the curriculum for the Sage Consulting Academy, a five-day course designed to educate Sage Software partners on the art and practice of small business consulting. He also facilitates the Sage Leadership Academy, a yearlong program designed to assist Sage Software partners develop a continuous process of improvement in their organizations and serves as liaison to the Sage Leadership Academy Alumni Association. Ed is a frequent contributor to industry publications, including the Journal of Accountancy and Harvard Business Review, and has spoken at many conferences worldwide on project management, pricing, and knowledge workers. He is active in the Information Technology Alliance (ITA), Toastmasters, and is a senior fellow at the VeraSage Institute. Follow him on his blog at www.edkless.com or on Twitter @edkless.
bell•weth•er -noun: one who takes initiative or leadership
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PRODUCTINFORMATION
Sage ERP News – Intelligence Update by Alicia Anderson
Effective January 31, 2011, there will be an important change regarding the FRx module developed by Microsoft and marketed and sold by Sage. As a result of Microsoft’s decision to retire FRx, the module will no longer be distributed with Sage ERP MAS products.
A
s of January 31, 2011, FRx will no longer be available for purchase through Sage for Sage ERP MAS products.
Microsoft will no longer be providing any bug fixes for issues found within the FRx product, so Sage and Blytheco will only be able to support matters that involve the integration between Sage MAS and FRx. Sage ERP MAS Intelligence will be provided to customers using FRx as an alternative solution for Financial Reporting in response to Microsoft’s announcement to retire FRx. Sage is providing current on-plan FRx customers with an offer to transition their FRx licenses to Sage ERP MAS Intelligence. Customers will receive one free Intelligence Report Manager or an equivalent product mix depending on the FRx licenses purchased in the past by the customer. For example, if customers purchased an additional FRx Professional Designer license they will receive one Report Manager license and one Report Designer license.
Nonprofits Win with Online Fundraising Contest Blytheco non-profit clients - enter "Connect with Sage"! This online fundraising contest will award grants to six nonprofit organizations. Entrants will be in two categories — smaller organizations and larger organizations — based on annual funds, and contest winners will be determined based
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Bellwether Magazine | Fourth Quarter 2010
on the total amount raising using Sage Fundraising Online. The contest is open to any tax-exempt nonprofit in North America or registered Canadian charity. On Dec. 18, the top six organizations — three in each category — with the highest total amount raised using Sage Fundraising Online will be deemed winners. The two grand prize winners will each receive $5,000 grants, with second prize receiving $1,000 and third prize receiving $500. Enter at http://www.connectwithsage.com
clients
thousandhours sowing the seeds of giving, growth and prosperity
bell•weth•er -noun: one who takes initiative or leadership
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Human Resources Trends for 2010
by Alicia Anderson
Donna Baeza, SPHR and Blytheco’s Director of HR and HR Business Solutions has been making the rounds, attending several important industry conferences this year. Throughout this year we have noticed definite trends. Change in our economic climate and the challenges and opportunities that creates for employers continues to be a focus, including areas such as employee and leadership engagement and morale building in a down market. Social media was another heavily focused area, ranging from policies and procedures, employee engagement, recruiting and everything in between. Global human resources as an emerging topic continues to advance on the scene.
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tions and the third was performance management applications. Blytheco was very excited to be able to demonstrate the Sage Abra solution with the recently released brand spanking new user interface! Sage has done an excellent job of updating the look, feel, navigation and functionality of Abra. Sage continues to build on that work with more enhancements due out before the end of 2010. We are entering very exciting times for Abra HRIS and the feedback we are receiving is that our customers feel the same way.
we get to hear feedback from hundreds of HR professionals around the world
Many individuals shared that their organizations were still running very lean from a budget perspective. However, it was very encouraging to see that many more were actively looking to invest in their HR departments with technology and other HR specific resources. Global human resources continued to be a theme even on the exposition floor with many individuals inquiring about global human resource information systems (HRIS). What was interesting was how many small and mid-sized businesses were inquiring about multi-currency payroll and HRIS applications. This trend is rising year by year at conferences.
In the area of HR technology, we had three primary trends this year for the individuals that stopped by our exhibit. The first was a complete HRIS, the second was time and collection that could interface into their current payroll applica-
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Bellwether Magazine | Fourth Quarter 2010
BOOKREPORT The Five Dysfunctions of a Team | Patrick Lencioni If you are wondering if team dynamics may be a factor in the success of your company, read this book to learn how team dynamics can play a role in lost revenues and project failures. The book includes a team test that you can administer to find out which dysfunction your team may be suffering from. This is a quick read, and the last chapter sums up what lessons you should walk away with.
The Ultimate Question | Fred Reichheld If you are looking for a better understanding of your customer base and how you can advance the profitability of your business, this book is a must read. Reichheld focuses on a measurement he developed with Bain and Company which is a predictive indicator of future revenue.
The High Purpose Company | Christine Arena Arena’s book measures the long term success of companies that develop a higher corporate responsibility and finds that they can lead to long-term profits. With a style similar to “Built to Last” by Jim Collins, Arena compares two different groups of companies to illustrate how strategic initiatives focused around corporate responsibilities can result in improved bottom lines.
bell•weth•er -noun: one who takes initiative or leadership
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