November/December 2017

Page 1

IMPRINT CANADA THE MARKETING AND INFORMATION SOURCE FOR IMPRINTABLE PRODUCTS

A Tristan Communications Ltd. Publication

AFKA<= L@AK AKKM= ?DG:9D 9HH9J=D F=OK Retail & apparel news from global markets is highlighted. 6

L@= H9J9;@ML= GJ L@= KL9AJK7 Business development expert and author Tom Panaggio outlines the risks required to build and maintain a profitable, sustainable business. 8

<G=K QGMJ ;GJHGJ9L= ;MDLMJ= J=O9J< L@= D9RQ :J9AF7 Professor and author Edward D. Hess highlights how lazy thinking is reinforced in corporate culture and what business leaders can do to combat it. 16

F=O HJG<M;L KHGLDA?@LK See the latest wearable, advertising specialty, and decorating supplies & equipment offerings from industry suppliers. 20

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With the holidays right around the corner, most of your corporate gift giving list should be checked off, right? For those of you that are procrastinators, you haven’t left yourself a lot of time for finding and delivering the “perfect gift�. A holiday gift is your chance to show how much you appreciate your customer’s business and value the relationship you have with them. However, deciding what to give can be a timeconsuming and stressful endeavour. The following five tips will * PWTQLIa OQN\ Q[ aW]Z KPIVKM \W [PW_ PW_ U]KP aW]

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For more than 25 years, I have had the opportunity to work together with organizations to transform customer service culture. During this time, I’ve discovered that some employees - many of whom would describe themselves as solid performers - actually have a habit of delivering more excuses than results. Unfortunately for you - the business owner - your customers don’t buy excuses (literally). The more your team members rationalize poor service, the more they’ll cost your organization in trust equity with clients. The following list is comprised of six common customer service excuses. Check to see if your employees use any of these damaging - and potentially brand-killing - phrases. We’ll start with the worst offenders: =Za \W IT_Ia[ [M\ aW]Z XWTQKQM[ IZW]VL _PI\o[ JM[\ NWZ aW]Z

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Q 867= ( ), && ( && ),r As 2017 draws near to a close and we look for insights into what may happen on the economic front for 2018, the focus is clearly on NAFTA. There have been concerns highlighted in the press of late that the entire NAFTA deal will be scrapped, but talks continue among the three countries as negotiations nevertheless move along. One of the main concerns that has been discussed is the USA’s request to scrap Chapter 19, which outlines the trade dispute resolution process. “Chapter 19 allows Canada or Mexico to bypass the U.S. judicial review process when the U.S. govern-

ment imposes anti-dumping and/or countervailing duties on Canadian or Mexican products imported into the United States, as has been the case repeatedly with softwood lumber, for example. In such cases, Canada or Mexico can use NAFTA’s Chapter 19 to create an independent, bi-national panel of five arbiters, agreed upon by both parties, who will determine whether or not the duties have merit based on U.S. domestic lawsâ€?.

sions. Fox has warned Prime Minister Trudeau not to become a modern day Judas and abandon Canadian/Mexican negotiation alignment in order so that Canada may be able to hammer out a bilateral trade agreement with the USA. The American approach to NAFTA negotiations is to divide and conquer. The U.S. is hoping that any bilateral agreements may help to play Canada against Mexico and vice versa. From the American vantage point, this seems like a smart play, as any survival of Chapter 19 will depend on the combined negotiating efforts of both Canada and Mexico.

The United States wants to revert to its own judicial system to resolve any trade disputes that arise from NAFTA. For Canada and Mexico, the removal of Chapter 19 would signal an end to what they perceive as being fair resolutions; if that is the case why sign off on a new NAFTA at all?

Will Canadian or Mexican negotiators seriously consider accepting America’s stance that Chapter 19 be scrapped in any new agreement?

Call it political rhetoric or protectionism, priority one for the current U.S. Administration has been to strengthen American manufacturing by imposing greater restrictions on imports.

As NAFTA negotiations continue, we will no doubt see a greater number of cross-fire comments from both Mexico and Canada towards the other - which may play right into America’s negotiation tactics.

Recent remarks from former Mexican President, Vincente Fox, may have provided a hint into what may become Canada’s strategy in NAFTA discus-

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IMPRINT CANADA

Industry News

November/December 2017 - Volume 24, Issue 6

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.),'. " **)#(.- ( 1 ( # ( & - ( ! , Stormtech Performance Apparel is pleased to announce the appointment of Mike Oliver as its new Canadian Sales Manager. Mike will be responsible for Western Canada and designated National Strategic Key Accounts. Reporting into the Director of Sales, Oliver will work closely with Sean Annable – Global VP of Sales and Chris Turner – Director of Sales, Canada, to develop and maintain effective corporate account relationships and ensure business growth is delivered in accordance with the organizational strategy. “As we continue to build on the success of the Stormtech brand globally, we knew we needed to bring on additional resources to help manage the growth we are achieving in Canada,â€? said Chris Turner. “Mike was the perfect candidate

for the position as he is an accomplished sales and marketing executive with a proven track record and is highly respected within the industry by his peers and co-workers.â€? Oliver re-joins Stormtech with 20+ years of experience working in the Corporate and Ad Specialty Channel dating back to 1996, where he spent nine years helping pioneer the launch of the Stormtech brand into Eastern Canada as a Multi-Line Sales Agent. “It’s great to be back with Stormtech. To be part of the Stormtech family again means a lot to me. It’s where I started my career 21 years ago.â€? said Oliver. Effective November 13th, 2017 – Oliver will be based in Ontario working out of the Markham Showroom / Office. Oliver can be reached at 416-894-5095; ormikeo@stormtech.caÂ

Ă *,)(- n( ), ( 5 */, " - - 3& ( m- - 1#(! /-#( -Aprons ‘n More Inc. announced that it has purchased Gayla Canada’s promotional product sewing business. “This important acquisition will make Aprons ‘n More a stronger and more competitive player within the promotional products industry,â€? said Ian Townsend, co-owner of Aprons ‘n More. “We look forward to maintaining our strong relationship with our current customers and we will equally look forward to building strong new relationships with new customers.â€? Frank and Julie Guzzo - owners of Gayla Canada - have decided to retire after having been in the promotional products business for more than 40 years. “On behalf of all of us who know Frank and Julie, we

extend our best wishes and heartfelt appreciation for their many years of dedication and service to the promotional products industry and, most importantly, we wish them health and happiness on the road that lies ahead,� added Townsend. For current Aprons ‘n More customers, the company is now in a better position to provide increased levels of customer service and overall production capabilities, as well as expanded in-house custom design and screen printing services, in addition to sublimation and other innovative decorating technologies. Gayla customers are invited to contact customerservice@ apronsnmore.com or 1-800-897-0224.

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F=O HJG<M;L KHGLDA?@LK *( O=9J9:D=K K@GO;9K= *. 9< KH=;A9DLQ K@GO;9K= +( KMHHDA=K =IMAHE=FL K@GO;9K= PUBLISHER Tony Muccilli : tony@imprintcanada.com PRODUCTION MANAGEMENT Adriano Aldini : news@imprintcanada.com

CONTRIBUTORS Edward D. Hess, Jeff Mowatt, Tom Panaggio, Marc Gordon MARKETING COORDINATOR Steve Silva : feedback@imprintcanada.com OFFICE ADMINISTRATOR Maria Natale : shows@imprintcanada.com GENERAL INQUIRIES feedback@imprintcanada.com, (905)856-2600 ADVERTISING SALES Tony Muccilli (Toronto) Tel: (905) 856-2600 Fax: (905) 856-2667 Imprint Canada is published six times per year by Tristan Communications Ltd. The contents of this publication may not be reproduced either in part or in whole without the consent of the copyright owner. The views expressed in this publication are not necessarily those of the publisher. Request for missing issues are not accepted after three months from the date of publication.

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INTRODUCING FOR 2018

WHY HAMMER? Our newest PREMIUM T-SHIRT is a modern take on a classic! It’s Substantial - The 10.0 oz/lin yd fabric makes the Gildan® Hammer undeniably robust. It’s Soft - 100% combed ring spun cotton offers all day comfort. You’ll want to wear this t-shirt again and again. It’s Smooth – The high stitch density provides decorators with the ultimate print surface. The perfect canvas for any printing technique! The Gildan® Hammer hits the mark with nd feel all its i own. a look and

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Imagine you stand at the edge of an enormous cliff with a parachute strapped to your back. To your right is a winding staircase with a sturdy handrail. There are only two ways off the cliff: jump or take the stairs. If you jump, once you reach the bottom, you’ll be awarded the exact amount of money you and your family need to live a happy and comfortable life. If you take the stairs, you’ll reach the bottom and walk away; nothing gained, nothing lost. Will you take the risk knowing there’s a slight chance the parachute won’t open? Or will you take the safe way out, knowing a life of mediocrity awaits? This is the dilemma entrepreneurs face every day.   Risk is eternally linked to opportunity! In my book, The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge, I explain why there is nothing wrong with taking the safe way out -millions of people make that choice every day. However, successful entrepreneurs are a different breed; they are professional risk takers and they need to be willing to strap on that parachute every day. Though we typically associate risk with the initial leap-of-faith decision to start a business, to achieve real success, one must consistently embrace risk every day, and not just on the business’s first day. I am very familiar with the rewards of risk. Together with several partners, I built two thriving companies: Direct Mail Express and Response Mail Express (RME), the latter of which was sold to an equity fund, Huron Capital Partners.

I wrote The Risk Advantage to help entrepreneurs face the many situations, predicaments, and crises they’ll encounter during their lives and to help them formulate their leadership style and business strategy. A willingness to take risks separates leaders from the rank and file. If you lose the spirit of risk, the business begins to decay. From startup through the last sale, the spirit of risk is the unexpected edge for every business. The following points highlight some of the risks business owners must accept if he or she wants to build and run a sustainable, profitable business.

." *#! “Are you a chicken or a pig?� I frequently heard one of my business partners, Phil Turk, often ask this odd question. One day, I asked him what it meant, and Phil explained, “Think about a bacon and egg breakfast. The chicken is involved, but the pig is committed.� Lending an egg to a breakfast meal, the chicken participates but sacrifices nothing. However, the pig literally has skin in the game. The pig is most definitely fully committed. Following your entrepreneurial dream by giving everything you have is like being the pig: you must be fully committed. An entrepreneur’s commitment is personal; it includes an investment of money, time, and loss of opportunity from forgoing other opportunities. The life of an entrepreneur is not glamorous; it can be stressful and it swallows up your personal time. Once you decide to jump, if you want any chance for success,

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THE FIRST INDUSTRY EVENT OF THE YEAR IS THE LAST SHOW YOU CAN AFFORD TO MISS

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Try to always set your policies around what’s best for your brand and best for customer loyalty. Don’t let lawyers establish your customer service policies. If you must have an unpopular policy, ensure that your employees understand it, can get behind it, and can easily explain it to customers. More importantly, train and empower frontline employees to overrule policies when common sense dictates.Â

85 p /, -"#**#(! * )*& ' -- T/*o Customers have zero patience for service providers who blame foul-ups on someone else; be it on co-workers in

another department, or external suppliers/contractors who are part of your supply chain. Blaming others makes customers assume that they’ll get the proverbial run-around and intensifies their aggravation, making a bad situation worse. So take the opposite approach - accept responsibility. Say, “Looks like we messed-up. I’m sorry about that.� Most customers realize it wasn’t actually you who made the error. And they’ll respect the fact that you are nonetheless stepping-up to own it.

message you hear from call centers: “Due to high call volumes...� Essentially this excuse tells customers that the organization has experienced this problem repeatedly, but (since they don’t really care that much about customer experience) hasn’t bothered to do anything to fix it. That’s better left unsaid. Best to simply thank the customer for their patience, and get on with what you can do for them.

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In my customer service seminars we talk about employee status, and how it’s a mistake to put a customer at a higher or lower status than the service provider. Instead, you want employees to be viewed by customers as their trusted advisors. So when you need to ask higher-ups for input, explain to the customer that you want to look into this further to see what you can come up with. Then discretely discuss the matter with your supervisor. When afterwards you report back to the customer, tell them, “Here’s what I came up with.� That makes customers feel like they’re dealing with an equal, rather than wasting their time.

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Customers want service providers to help them make decisions. And in the case where customers view you as their trusted advisor, they even want you to make decisions on their behalf. But that only works when the service provider has discussed the customer’s needs and overall objectives. We earn the right to make assumptions after talking with the customer and gaining their respect. Paraphrase your understanding of their needs with the words like “sounds like�. For example, “Sounds like you’d like to...� After you’ve done that, customers will be much more comfortable and confident with your assumptions.

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Actually, in this case customers will accept this excuse, which is why I put it last. Customers can be wonderfully compassionate when a newbie, who realizes something is taking longer than it should, apologizes for the delay and explains the situation. Tip: rather than saying bear with me (which sounds like an order), instead say I appreciate your patience. For example, “Sorry for the delay, this is my first week here. I appreciate your patience with me.â€? Now the customer feels like a hero for being nice. Bottom line: In every organization, things will occasionally go wrong that put customer relationships at risk. The key to preserving the customer connection is ensuring frontline employees are trained to recover trust. As for managers, revisit your policies to ensure they don’t force employees to automatically say no to customers when instead they should be looking for ways to say yes. After all, if you don’t satisfy that customer, your competitor will. Then you’ll have bigger problems where excuses won’t matter. Allow your competitors to blunder their way out their customers’ good graces and send them into your capable hands. Good luck and here’s to you and your sales team not dropping the ball! *JW]\ \PM *]\PWZ#

Jeff Mowatt is a customer service strategist, Hall of Fame speaker. He’s the author of the best-selling business books: Becoming a Service Icon in 90 Minutes a Month and Influence with Ease. Jeff heads his own training company and has written and produced 13 self-study coaching tools. His Influence with EaseŽ column has been syndicated & featured in over 200 business and on-line publications.

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FIEL-FAIRDEAL IMPORT & EXPORT LTD. FLEXFIT FRUIT OF THE LOOM INC. GC APPAREL INC. GEARWARE INC. GILDAN ACTIVEWEAR GITCH SPORTSWEAR INC. GRAFIK EXPERTS INC. GUNOLD CANADA INC. HEADWEAR CANADA HIGH CALIBER LINE OF CANADA INC. IDEAL KNITWEAR IMPRINT CANADA JACKFIELD/DIST. E. GAGNON JASON ALEXANDER CO. JOHN FORSYTH SHIRT COMPANY JOTO PAPER LTD. JWG KANATA BLANKET COMPANY KING ATHLETICS KNP HEADWEAR INC. KOBE SPORTSWEAR LP TENT CANADA M&O KNITWEAR MACARON INC. MACSEIS CANADA MAGNUS PEN CORP. MARATHON THREADS CANADA MARCO AWARDS GROUP MARKETEX APPAREL INC. MIDLAND CLOTHING MILL-TEX SPORTSWEAR INC. MINIMEDIA INTERNATIONAL MODERN FLARE SALES ND GRAPHICS NEW BALANCE NEXGEN GOLF PRODUCTS INC. NEXT LEVEL APPAREL NIKE GOLF NOVELTY PRINTERS OAKLEY OCEANIC INC. OMNI APPAREL INC. PARKDALE NOVELTY CO. LTD. PATCHES & LABELS PDS

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Even though the commitment is substantial, it’s necessary to motivate you to keep pushing forward. Money buys resources, technology, and manpower— all critical elements in helping a new business succeed. If all capital investment is from your coffers, and not from outside sources, then you are truly committed. Of course, you might have to find a source for additional financial support, which means either giving up a piece of your dream in the form of a partnership, or taking on debt responsibility. Building a successful business when money is tight is a true accomplishment. The committed entrepreneur doesn’t allow a tight money situation to stop him or her. True entrepreneurial spirit promotes self-reliance and the willingness to find the money.

is that a business must be willing to simultaneously change internally and externally to keep progressing and remain competitive. Internal change happens within a business’ walls and is not necessarily customer-facing. Internal change can be organizational, involving changes in personnel and management. It also extends to processes or systems, changes in attitude and culture. While these characteristics can and do change independently, they also can be linked, thus resulting in dramatic transformation. External change is always customer-facing; it’s most noticeable to your customers and competition. Innovation is an external change which brings a new competitive edge through the introduction of products or services that increase the value of a customer’s experience with your organization and is announced in the marketplace through branding and marketing.

AXbZ Xb ]^c P {^]T [TP_ P]S h^dzaT S^]T| _a^_^bXcX^] )- ." 2 /- - 4]caT_aT]Tdab fW^ Pe^XS aXbZ Some entrepreneurs are like a small child standing QTRPdbT cWTh fP]c c^ _a^cTRc with his or her nose pressed to the candy store window, cWTXa QdbX]TbbTb Ua^\ WPa\ hoping and thinking, If I had a couple of pennies, then cT]S c^ {[^bT cWTXa TSVT| P]S I could buy some candy and everything would be great. For example, if I had the latest CRM software, then Tg_^bT cWTXa ^aVP]XiPcX^]b c^ everything would be great. Then, I could really grow SP\PVT my business; I could sub-in new technology, open

,#Û 3)/, ')-. *, #)/- *)-- --#)(A #' When you pursue a new enterprise, one resource that cannot be reimbursed, borrowed, or saved in an account for later use is time. Time is the most perishable resource of all because it’s finite; time is more precious than money and more costly to waste. Losing time is the risk you take going in. How you invest your time is a test of your resourcefulness. Where is the best use of one’s time? How much time must you invest? Too little means less than a full effort. If there is too much, then other life segments suffer. The good news is eventually you will learn to navigate these challenges.

)(m. ()(T # , In business, you need to make tough decisions over and over again. The first decision you make is to jump in and pursue an entrepreneurial dream, but decisions don’t end there. And every time you make a decision, there are risks: of failure, of criticism, of being wrong. Don’t let that stop you! By making decisions, whether right or wrong, you are progressing and moving from where you were to something different. When you refuse to make tough decisions, nothing happens; you’re stagnate, and your business will eventually suffer. Despite this, there are people who refuse to make decisions. You can’t be an entrepreneur and avoid decision making. You make your move and then embrace the risks that come with that move.

" (! ), # Businesses are like sharks, they have to keep moving, or they will die. The rule is simple: businesses must progress, and this requires change. In the business world, fear of change is probably the single biggest obstacle businesses need to overcome to meet the evolving marketplace challenges. What makes embracing change even more difficult

a bigger store and increase my advertising budget, et cetera. However, the lack of those “two pennies� feeds into excuses made by struggling entrepreneurs everywhere. Entrepreneurs must be self-reliant. You must get comfortable looking to yourself as the solution, not other people or objects. I have heard all the “If I had,� excuses over the years. Unfortunately, this way of thinking is based on false reality, because the road to success is through action, not tools or accessories.

2* . .) #& Starting and building a business is like a child learning to ride a bike. To master the skill of riding a bike - just as learning to be a successful business leader - you must first embrace the risk of failure and expect to fail. What both child and entrepreneur must realize is that failure is not defeat but a signal that a change is necessary. It is rare that someone can expect to accomplish either of these skills without a fall or two, and just as a child gets back up from a fall when learning to ride a bike, you have to be resilient to the pain and embarrassment of failing and keep pushing ahead. By expecting to fail, we accomplish two very important objectives: first, we are willing to embrace risking failure by doing something to keep our dream moving forward rather than avoiding risk and doing nothing. Secondly, we set the proper expectation mentally that we are planning for the best but preparing for the worst. This is not a defeatist attitude, but it gives the opportunity to prepare for recovery and make another attempt.

)(m. -%#'* )( ' ,% .#(! Marketing is key to building a successful business, but it is also something that many entrepreneurs are loath to spend their money on. Instead, they offer these handy excuses: “I tried it once and didn’t get any response, and so I stopped.� -or - “There’s just no money for marketing this quarter. Maybe I’ll try something next quarter.� It’s hard to know what consumers think and what

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S3 • HATS, LEARN WHY YOU HATE SEWING HATS

S2 • DIRECT-TO-GARMENT: THE GOOD, THE BAD AND THE UGLY

Presented by Bill Garvin, Gunold

Presented by Kevin Price, RB Digital

Discover the relationship between top and bobbin thread; how to set it, and forget it. Understanding specialty threads, and how they pull through the machine. Tension is a tug-of-war, who is going to win? Handouts for class: Bobbins and Literature.

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This informative sessions will examine the many positive issues associated with direct-to-garment decoration, but will also delve into the negative issues that can arise. Learn from an industry insider with over 14 years' experience with major brands such as Brother, Epson and Kornit, and having worked with home-based customers and to large scale printers with more than 15 units. Kevin will teach you how to have more of those positive experiences and prevent those not-so-pleasant experiences with this type of decoration.

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In this class, you will learn: Why does the thread break? Why is the thread looping, and sewing being of poor quality? Proper oiling and keeping your ATM running smooth, day in and day out... Handouts for Class: Oil Pens, lint brush, and literature.

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their day-to-day needs are, but a business void of a long-term and consistent marketing effort is doomed. At RME, our motto was very simple: Who markets the most wins. In fact, we used marketing risk as a competitive edge against our competitors. Anyone wanting to become a potential competitor had to be willing to match our investment and commitment. Competitors were forced to divert resources and money from other areas of their business to keep up with RME’s aggressive marketing strategy and this limited their ability to expand and innovate. The irony is, competitors weren’t willing to embrace the same risk of marketing that they were trying to convince their prospects to do, and they also weren’t willing to embrace it to stay competitive with RME. Accepting marketing risk also means recognizing that some degree of failure is both inherent and necessary to find your right path. We knew that our marketing message was going to be received by some who were not ready to buy. Therefore we committed to a consistent, ongoing strategy to ensure that our message got in front of prospects when they were ready to buy. You can’t accomplish this by sending a single message and hoping prospects individually remember you and then respond months later.

. /* &)- E * ,-)( & 1#." /-.)' ,- Shortsighted business owners often assume that customers have unreasonable expectations or their demands will increase once you open the door to a relationship. After all, what if you start talking to them and they start asking about better pricing, extended credit, or other special considerations? Customers require consistent care and investment, and you must risk investing in the necessary resources to draw your customers closer.

Start by understanding the customers’ experience, and then continue maintaining a consistent line of communication throughout your relationship. As with almost any small business, money is tight; the simplest solutions are just as effective as grand gestures. A short thank-you note after a customer places an order, whether it is done via email or by sending a handwritten thank-you card by regular mail, is an easy way to start building personal relationships with your customers. Send birthday cards or holiday cards too and call them with information or updates on products they’ve purchased or have asked about in the past. To a small business owner who has a small number of customers, losing just one customer has a significant impact on organizational health. If you lose a customer due to price or other circumstances beyond your control, then fine. However, losing a customer because they felt unappreciated or underserved is inexcusable; it indicates serious flaws in your internal business processes that lead to additional losses. The easiest way to avoid customer churn is by continuously reaching out and communicating; the sales process never ceases. The road to entrepreneurial success is not an easy one. You can’t simply take the stairs to a successful business. To be a successful entrepreneur, you have to recognize that taking advantage of opportunities—big and small—means embracing the risks that come with them. And then you have to be willing to embrace those risks day in and day out. Keep that parachute handy!Â

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Tom Panaggio is the co-founder of Direct Mail Express and Response Mail Express. He is also the author of The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge. (River Grove Books). For details, please visit www.TheRiskAdvantage.com

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1. Group your customers:Â

Not every customer may deserve the same kind of gift. Placing them into groups based on purchases, status or other criteria can make gift buying decisions less stressful and more efficient.

2. Don’t forget key staff:Â

Buying for the owner is great, but don’t forget the staff - especially those that have a lot of influence in buying decisions. For example, the marketing director or customer service lead that is your point of contact should not be forgotten when making your list of who’s who.

3. Skip retail & showcase your strengths:Â

As a company operating in the promotional product marketplace, avoid taking the easy way out and buying something at the retail level. A critical aspect of your expertise involves identifying, sourcing and creating unique self-branded merchandise that appeals to your customers (and reflects your style). This holiday season, resolve to showcase your talents (and your understanding of your customer’s respective tastes) by putting together a unique gifting option for each client.

4. Avoid Edibles:

With so many people suffering from allergies and dietary restrictions, food and drink gift baskets containing wine, nuts, candy, and other tasty treats may actually end up getting re-gifted to others (not something that you ideally would want from your holiday gift). This holiday, try skipping the edible gift options and use your imagination to really wow the customers that help fuel your business.

5. Understand your customer’s industry:Â

Some of your customers may be prohibited from accepting gifts - either of a certain value or at all. A charitable donation in their name can be a thoughtful alternative if this is the case. A gesture such as this will go a long way in solidifying long term, profitable relationships that form the backbone of many companies.

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Marc Gordon is a recognized marketing expert, speaker and strategist. His articles appear in over 200 publications worldwide. Visit marcgordon.ca or his online show at marctv.net for more business tips.

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) - )/, )'* (3m- /&./, 1 , ." 43 , #(D Five Ways to Override This Natural Human Tendency and Save Your Company in the Process 3 1 , 5 " --

Humans are lazy thinkers. They truly are. proactively created a new culture and installed new Although the brain comprises only about 2.5 per processes, all designed to create an idea meritocracy. cent of our body weight, it generally uses 20 per cent One of its primary goals was to galvanize product of the body’s energy. That’s why the human learn- development by discovering often-unstated customer ing machine prefers to needs and creating soluoperate in a low gear, or tions for them. on autopilot, as much as Intuit wanted to possible: It’s a conservaempower idea generation thing. tion and encourage fast, As Nobel laureate and cheap, customer-centric behavioral economist experimentation by all Daniel Kahneman puts employees. it, “Laziness is built deep As part of the transinto our nature.� So your formation, founder Scott slothful brain is probably Cook stated that deci=PM P]UIV TMIZVQVO UIKPQVM XZMNMZ[ \W WXMZI\M QV I TW_ OMIZ WZ WV

thinking, what’s wrong sions at Intuit would no I]\WXQTW\ I[ U]KP I[ XW[[QJTM 2V WZLMZ \W OM\ \PM UW[\ W]\ WN aW]Z

with that? longer be made based on aW]Z[MTN IVL aW]Z MUXTWaMM[ aW] VMML \W W^MZZQLM \PQ[ JMPI^QW]Z Well, the big problem PowerPoints and politics, is that business has taken the “laziness modelâ€?- a.k.a. but rather by the customers themselves, who’d ‘vote operational excellence - as far as it can go. The lazy brain with their feet’ for the ideas they like best. is why the operational excellence model - in which They designed the experiments to first test key cuscompanies fight for dominance by being faster, better, tomer needs or value assumptions so that they could and cheaper - rose to dominance in the first place. move quickly on critical ‘must-have’ data. Also—here’s Unfortunately, many of the jobs this model cre- the ‘cheap’ part—they decided to start small in scope ates can now be done by machines. Today, the only until innovators had more and better data to justify real competitive advantage is an ability to learn and a larger investment. innovate. That’s it. We take what we already know, In India, young Intuit innovators conducted an replicate it, improve it, and repeat. It is much easier experiment on helping farmers get the best price for than thinking innovatively. their products—even though management initially The fact is, the old operational excellence model wasn’t interested in the idea. provides too many reasons NOT to learn; too many Operating under Intuit’s new “Caesar is deadâ€? reasons to remain lazy, complacent, robotic. Steeped in principle, they forged ahead with their research and the “command and controlâ€? paradigm of operational spent time with farmers to understand their business excellence, leaders (and employees) see learning as a challenges. They found that farmers didn’t know what high-risk activity. price wholesalers would pay on any given day in any Combine a deeply entrenched attitude that risk- geographical market for their crops. So, they created taking is a no-no with the brain’s inherent laziness, an app for mobile phones that provided farmers with and you get a company that can’t innovate its way out daily prices from various markets. As a result, the of the proverbial wet paper bag. farmers could choose to travel to the market that The implication is clear: If you want to survive the would pay them the highest price; 1.6 million Indian coming Digital Age of Machines (aka the 21st century) farmers now use the successful program. you must give your culture a serious shake-up. You Cook and other leaders have made this a prime must engage and reward people so strongly that they’re example of how empowered employees can quickly willing to override their natural tendency toward lazi- and cheaply transform new ideas into products that ness and continuously generate and share new ideas. materially improve people’s lives. In other words, you have to create an idea meritAllowing employees to pursue their own ideas is ocracy. Doing so requires creating a hybrid business a great cure for lazy thinking. If an idea succeeds, model, one that prioritizes the need for innovation the company reaps the benefits. And if it doesn’t, the while keeping in play the best aspects of operational company still has energized, engaged employees who excellence. For example, its focus on relentless, con- are motivated to try again. stant improvement. Succeeding at this hybrid culture requires a com- 2. Turn mistakes into surprises. Another major change was needed at Intuit to fully mitment to learning; lazy brains won’t survive. engage the workforce in this new culture of innovaThe following list will help shed some light on how tion and learning—specifically, a new mental model you and your employees can energize your lazy brains about mistakes. and revitalize your culture in the process. Fact is, lots of ideas just don’t work out. They may 1. Empower fast, cheap, customer-centric not be supported by data when they are tested, or a process improvement idea that looked wonderful in experimentation. Intuit is a very successful and highly profitable theory may not work as expected in practice. In an idea meritocracy, mistakes like these are not company. (Quicken, TurboTax, and QuickBooks punished, so long as financial risk parameters are are a few of its products.) About 10 years ago, after respected. becoming concerned that it was losing its edge, Intuit

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News ^%XVLQHVV 'HYHORSPHQW` Instead, they are viewed as learning opportunities. There is no mistake, so long as you learn. Intuit even calls mistakes or experimental failures ‘surprises.’ First of all, while mistakes are not good, there’s no negative connotation with surprises. Surprises don’t elicit the same amount of fear and anxiety that mistakes do. And when we aren’t afraid, we’re more likely to take risks that have the potential to lead to big wins. Second, in many cases, those ‘surprises’ ultimately point employees down a different path that could have great promise.

3. Teach employees how to work around their weaknesses.

Bridgewater Associates, one of the largest and successful hedge funds in the world, implements its idea meritocracy through a culture and processes designed to help people overcome the common human obstacles to learning: their cognitive blindness, dissonance and biases, and their ego-driven emotional defensiveness. Bridgewater does that through radical transparency, constant stress-testing of one’s thinking by others, the daily rigorous use of best learning processes, complete candor, permission to speak freely, and an egalitarian idea meritocracy where everyone has the duty to challenge ideas regardless of rank or position in the hierarchy. Bridgewater also has installed root cause analysis as its standard process of diagnosing problems and examining results that differ from desired results. To do all of that well requires employees to be aware of their personal weaknesses, and to either get training to improve those weaknesses or to team with others whose strengths complement those weaknesses.

4. Let employees “pull the cord.�

Sometimes employees see big problems and mistakes but feel powerless to make a change. They figure bringing mistakes to the attention of higher-ups is above their pay grade and not a part of their job description, or they fear ending up being the proverbial messenger who gets shot. Of course, these feelings of powerlessness are terrible for morale and just encourage people (and their brains) to stay on autopilot. The solution is to make it very clear to employees that they are able not just to point out problems, but to take bold action to correct them. At Toyota, an idea meritocracy was created by giving every employee in the factory the ability to “pull the cord� at any time to stop production. In other words, all employees were empowered to take ownership of preventing defects and mistakes. In many cases, fixing a mistake required a team to discover the root cause of the problem and to devise a process that would prevent that mistake from happening again. Empowering frontline employees to take responsibility for continuously improving processes using root cause analysis, helped Toyota keep employees engaged and was Toyota’s quality differentiator for years.

Make it a duty to dissent.

listen to “HiPPOs,� (the Highest Paid Person’s Opinion). At Google, permission to speak freely is not enough— one has a duty to dissent. This means that relative ‘rookies’ can - and do - raise objections and present alternate ideas when they disagree with their bosses. A similar duty to dissent can be found at UPS, which has an employee-centric culture of ‘constructive dissatisfaction,’ meaning that everyone has the duty to find ways to improve. Allowing dissent is yet another way to combat lazy thinking. When employees know their voices not only will be heard but are needed, they’re far more likely to engage in the kind of thinking that leads to big ideas and positive changes. Idea meritocracies are able to continuously improve or innovate faster and better than the competition. Seek to engage all employees in constant improvement or innovation through everyday learning. No matter what product or service you sell, in order to compete in a technologically advancing, highly globalized competitive environment, you must be in the business of learning. You must build a culture where lazy thinking is snuffed out and big thinking is encouraged and rewarded.

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Google’s culture is built on driving innovation and experimentation—in other words, trying new things. To support this culture, pay level is irrelevant in decision making, and so is experience or tenure—unless the experience provides data used to frame good arguments. In fact, Google chairman Eric Schmidt stated in the book How Google Works, that Google employees are told not to

Edward D. Hess is author of Learn or Die: Using Science to Build a Leading-Edge Learning Organization (Columbia Business School Publishing. He is the professor of business administration and Batten Executive-in-Residence at the Darden Graduate School of Business, University of Virginia. He is the author of more than 10 books, over 60 cases, and over 60 articles. His work has appeared in over 200 media outlets around the world including CNBC, Fox Business News, Dow Jones Radio, WSJ Radio, MSNBC Radio, NPR, Forbes, Bloomberg, BusinessWeek, CFO magazine, Financial Executive, Journal of Applied Corporate Finance, Big Think, the Washington Post, and Financial Times.

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WINNER GARMENT

S A F E T Y T H AT F I T S . www.winnergarment.com Winner Garment is one of Canada’s leading manufacturers of safety workwear. Open since 1975, we are 100% Canadian owned and operated with 51,000 square feet of state-of-the-art facilities in Edmonton, with in-house embroidery and silk screening available.

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Flame- and Arc-Resistant, and Hi-Visibility apparel is our specialty and we carry an extensive stock program p g for fast delivery.

Westex

UltraSoft

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Polyester/Cotton

Nylon Fabrics

WINNER GARMENT INDUSTRIES LTD.

Toll Free Phone: 1-866-956-8989 • Toll Free Fax: 1-877-455-7788 Phone: 780-453-8989 • Fax: 780-455-7799 12003 Kingsway Ave. Edmonton, Alberta, Canada T5G 0X8 E-mail: info@ winnergarment.com

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Your em mbroid dery expe er ts

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IMPRINT CANADA _ 1RYHPEHU 'HFHPEHU

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rbdigital.ca

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INTRODUCING THE NEW

WWW.FERSTEN.COM

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To order your subscription publication please email info@trendexna.com After increasing by 0.4% in July, total Canadian retailer sales unexpectedly decreased by 0.3% in August 2017. The decrease was primarily driven by a 2.5% decrease in food store sales, along with declines in two housing related categories: building materials (-1.9%) and furniture stores (-2.4%). Gasoline station sales increased by 3.1%. August’s sales increase was the largest in four month for gasoline stations. A sales increase in new car dealers (+0.7%) was far less than the 5.6% increase in used car sales. Retail sales fell in six provinces during August. Saskatchewan reported the largest decrease (-2.0%), while retail sales in Ontario (+0.3%) rose for the fifth time in six months. Total retail sales increased by 2.9% in Toronto, while sales in both the Vancouver (-1.1%) and Montreal areas (-1.0%) decreased. Comparable store sales in Costco Canada’s 97 stores (excluding gasoline sales) increased by 4.3%. E-commerce sales increased 41.9% and accounted for 2.3% of total retail sales in August 2017. Sales in Canada’s clothing stores increased by a strong 9.2% in August 2017, and were up 5.2% during the first eight months of 2017. During August, sales in retail clothing stores increased in every province, with the largest increases occurring in Ontario (+18.5%) and British Columbia (+11.0%) and the smallest increases in MB/SK (+5.3%) and the Atlantic Provinces (+5.8%). After increasing by 4.8% in Q1 2017 and 4.6% in Q2 2017, Canada’s GDP is on track to slow during the remainder of the year. RBC is forecasting that the Canadian GDP will increase by 2.3% and 1.7% respectively during the last two quarters of 2017. Nevertheless, for the year, the Canadian economy is forecasted to increase by 3.5% in 2017 versus 2.4% in 2016 – good news for Canadian apparel retailers! Clothing specialty store sales increased by a 9.2% during August 2017 and were up 5.2% year to date

Canadian apparel imports decreased 1.0% in August 2017, and increased 2.3% during the first eight months of 2017 increased by 2.3%. During the period, Chinese apparel exports to Canada decreased by only 0.2%. Bangladesh, the second largest apparel exporter to Canada, recorded a 1.3% decrease, while Cambodia and Vietnam recorded 9.5% and 9.9% increases respectively. Perhaps the most interesting developments in the first eight months of 2017 were the 80.7% increase in apparel exports from the Myanmar to Canada along with the 20.4% and 25.1% increases in Pakistan and El Salvador’s apparel exports. It should be noted that India’s apparel exports to Canada year to date decreased 2.1%, while Mexico’s fell 3.7%.

Canadian apparel exports increased by 3.1% in August 2017 and increased by 6.5% during the first eight months of 2017. Apparel exports to the United States increased by 9.2% during August 2017 and were up by 6.3% year-to-date. Driving the increase in both total exports and exports to the United States continued to be men’s apparel exports which were up 10.4% in total, and 10.8% to the United States. Of the 10 largest destination countries, excluding the U.S., during the first eight months of 2017 Canadian apparel exports declined to only Australia (-0.4%) and the Netherlands (-12.4%). Exports to Japan grew by a strong 45.4%, while the UK, Germany and Hong Kong all continued to gain in importance as a result of their respective 25.8%, 6.2%, 37.0% increases. Surprisingly, exports to Panama increased by 570%, making it year-to-date the tenth most important destination for Canadian apparel exports. During the first eight months of the year, total women’s apparel exports increased by 0.8% and the U.S. accounted for 76% all Canadian women’s exports. Women’s apparel exports increased by 80.7% to Japan and 24.6% to the U.K.

*(5(+0(5 *36;/05. 4(5<-(*;<905. The capacity utilization rate of Canadian clothing manufacturers during the second quarter of 2017 increased by 4.0% from the same quarter a year earlier. During 2016 the capacity utilization rate averaged 71.4%, down 4.5% from 2015

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In August 2017 sales of Canadian clothing manufacturing shipments increased by 14.3% compared to the same month a year ago. During the first eight months of 2017, sales of Canadian clothing manufacturing shipments increased by 1.6%

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www.BigKClothing.ca

I N D U S T R Y S TA N D A R D P R O D U C T S • Q U A L I T Y & D U R A B I L I T Y T E S T E D • I N N O VAT I V E F E AT U R E S • P R O F E S S I O N A L LY E N D O R S E D

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Liberty

Crew Neck tee men’s S05917 ladies S05918

www.canadasportswear.com

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