“Highly Recommended for Public and Academic Libraries...” -Library Journal
Live With Dave:
Gaining Wisdom from Mr. Debt-Free
January-February 2012 STRATEGYMAGAZINE.COM
+
- What’s the Right Resolution? - The Top 11 Worst Sales Tips - Investment Strategies that Work - Conferencing in Atlanta Just Got Sweeter
Fashion Inspired by the Eight American Ivy League Universities; Liquid Assets; Getting Influenced by Self-Help Business Books, and more…
TABLE OF CONTENTS | January-February 2012
EDITOR’S LETTER 4 Where Are Our Brains Headed Today and What Is Our Destiny? PERSONAL GROWTH 8 Life Coaching |Considering a YOU Upgrade... GETTING PUBLISHED 10 Building Your Platform | Making it Work, Now, the John Bernard Way 12 Publishing Industry | Rewind and Fast Forward RATINGS 13 Self-Help Business Books | Influencers of the Mind and Behavior ENTREPRENEUR 17 Leadership Development | Reality Bites 18 Sales & Marketing | Reigning Emotions
STRATEGY brings you Business Learning & Life via our website and social networking sites. Sign up for your free subscription and keep updated on the latest self-help business trends, plus extensions to our feature articles. Website: Visit www.strategymagazine.com, today. Facebook: Become a Fan of Strategy Magazine and connect with other like-minded professionals.
24
BUSINESS 20 Management | Better Not Be You; or Your Team LIFESTYLE 34 Fashion | Biff & Muffy Chic 38 Beauty | Brush Be a Lady Tonight 40 Leisure | Liquid Assets CONFERENCE CONCIERGE 42 Where to Stay; Eat; and Go in Atlanta OP/ED 7 Conversations | What’s the Right Resolution? 45 Elevator Pitch | Stating the Facts with Melora Hardin
28
FEATURES 24 Investment Strategies: What To Do After Vacation Has Come and Gone A business that doesn’t produce adequate cash flow is an expensive hobby. Up, down, sideways—January is an active month. Potentially it is a profitable month, and now is the time to prepare; to evaluate strategies.
28 Challenge and Opportunity in the Year to Come
What are the challenges in the world today? As a new year gets underway, where are the opportunities for improvement? As hostilities grow throughout the world, how can one affect positive change?
30
30 Man of the Year: Dave Ramsey Financial guru, best-selling author and top-syndicated radio host Dave Ramsey just added another best-seller notch to his financial belt. His latest chart topper is EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, based on the core principles of how Ramsey grew his company: debt-free.
strategymagazine.com | STRATEGY | 3
EDITOR’S LETTER
Where Are Our Brains Headed Today and What Is Our Destiny? The overall body of knowledge doubles every year. No person can be a true know-itall. There’s just too much to know. What is happening in today’s world is very subtle: younger people are demanding more intelligence from their interactions. Whether the interaction is with a computer, an automobile, a cellular phone or another human being, consumers want engagement. So, new marketing tactics and the new media are engaging. But what’s happening in regards to our personal engagements, our person-to-person interactions? Do we lose something when we are interacting with gadgets or does new technology bring people together? Absolutely, Androds, iPhones, and the Internet have made the world a smaller place. It’s easier and cheaper to send video, still images, text, and voice than ever before. With webcams and small digital video cameras, people run the risk of making inappropriate personal disclosures and invading each other’s privacy. Ironically, making polite conversation with someone in an elevator becomes awkward because it’s easier and more efficient to send them a text message. Yet, individuals have the power to control the flow of program and
advertising/social media content in the new media. This control over the volume of information is where we find Einstein. Did you know Albert Einstein spent much of his time in solitude? He had the power to shut out distractions and work out his theories with the latitude to make his mind a playground with solitude and music. According to Kenji Sugimoto, Einstein understood passion and love. Love is the most powerful creative force. Robert Fritz, author of The Path of Least Resistance, wrote about an ongoing debate he had with the local Catholic priest while Fritz was studying at the Boston Conservatory. The debate was about creationism versus evolution. The priest told Fritz that God created the world because God loved it enough to make it exist. Although Fritz was agnostic, he recognized the power of love as the creative force because he was creating music. Robert Fritz had to love the music enough to create it. Einstein loved to
Editor-in-Chief
Sales Director
Web Developer
Senior Editor
Writers
Customer Services For more information on subscriptions, call 800.883.1387 and/or visit, www.strategmagazine.com.
spar with fellow scientist Niels Bohr about their respective theories. He loved the theories enough to thrash them out with reasoning— one mode of loving them into existence. As we engage technology and—hopefully—each other, we can become part of the user-driven tide of marketing and interpersonal communication. The new media platforms can help us control the volume of inputs, so we can decide as individuals what, where and how to engage. We can have the time and space to allow our minds to play with ideas and thrash out new concepts—to reflect on old concepts in some solitude and to choose our passions.
Do we lose something when we are interacting with gadgets or does new technology bring people together?
Mavian Arocha-Rowe
Matt Peterson
Maggie Sabatier-Smith, Dayna Steele, Eban Potter, Michiel Van Kets, Arvind Yadav, Gordon Coastes, Christian Ruben, Alan Gruver
Amy Day
Art Director
Stephanie Threinen
Mavian Arocha, Editor in Chief
Avion Technologies
For more information on advertising, call 800.883.1387 or email us at advertising@strategymagazine.com Vol. 5, Issue 1 © Strategy Magazine, LLC. All rights reserved. Reproduction or use, without permission of editorial or graphic content in any manner is prohibited. Photo credits are not given to improperly identified photos. Published by: Strategy Magazine, LLC 2625 Piedmont Road, Suite 56-370, Atlanta GA 30324 4 | STRATEGY |strategymagazine.com
CONVERSATIONS | Employee’s Ladder
What’s the Right Resolution? What makes things right and wrong, good or bad? With the month of January almost to an end, my brain’s wave lengths are thinking of family I wasn’t able to see during the holidays, deadlines, and of course, those extra pounds. According to firstgov.gov, “Lose Weight” is the most popular New Year’s resolution, followed by “Pay Off Debt,” “Save Money,” and “Get a Better Job.” Interestingly enough, “Get Fit,” and “Eat Right,” scored as No. 5 and No. 6. This sort of reminds me of what comes first, the chicken or the egg? While all of these decisions to do something require hard work, they can easily come and go, similar to those one-hit wonders we all question and now identify as die-hards. One thing that does last, and is difficult to get away from, even for Mcauley Culkin, is a family tie. Although in 1992, Gregory Kingsley, now Shawn Russ, won the right to divorce his parents and live with his foster parents. Surely no small feat, but whether he likes it or not, his DNA can’t be altered or changed. Along with classical genetics comes an inscribable ancestral pedigree. Morality, ethics and perseverance are also passed from generations; however, they are altered with our society. Morality is important in all areas of society. It’s critical that young people receive impart ethical values that provide lasting benefits. Today’s educational teaching produce mixed results, yet every 20 seconds another teenager contracts a sexually transmitted disease. Are we just too scared or too politically correct to answer the questions “why is this good?” and “why is that bad?” Abortion is right. Abortion is wrong. War is sometimes right. War is always wrong, except when we remember 9/11. Cheating on your income tax is OK as long as you don’t get caught? Are we killing our valuing process and objective standards of right and wrong and dismissing the principles encountered in the Ten Commandments, the wise proverbs of Ben Franklin or other principles of living? So why can’t we emphasize the restructure of morality or ethics as our resolutions? This is the philosophy of too much “postmodern”
society. Rather than “Get a Better Job,” concentrate on how to stop changing right from wrong, get a little bit tougher, and ask yourself if you are living it right. By doing so, certain basic themes will continue their existence, while emerging and organizing ethical thinking. TEXT BY CHRISTIAN RUBEN
...Along with classical genetics comes an inscribable ancestral pedigree....
strategymagazine.com | STRATEGY | 7
PERSONAL GROWTH | Life Coaching
Considering a YOU Upgrade…
DOWNLOAD
Are you ready to download the latest YOU release? How long has it been since you updated YOU?
8 | STRATEGY |strategymagazine.com
Recently, hoping to spend some time just relaxing with a good movie, I was suddenly prompted, “Upgrade Netflix?” Without giving it a second thought, I clicked okay. My experience was not as relaxing as I had hoped. It did; however, fuel this article.
What if, like software, there was an “About You” option where others could learn about your latest release? Curious, they might go on to check the details: Fixes? Enhancements? New Features? They might also perform an Internet search to determine if there were any compatibility and/or installation issues. What are others saying about your latest release? What’s planned; is anyone anticipating your next version? Are you? Technology advances wait for no one. You can choose to remain the same, but you will soon encounter compatibility issues when working with others. If you wait too long your technical support contract will expire; there may not be an upgrade path and instead you have to go with a brand new purchase. For some of you, technology advances push you out of your comfort zone. They force you to change the way you do things. Reactive thinkers get what they get. Others have been impatiently waiting to implement these changes. They see into the future and have already anticipated how to benefit from the upgrade. In fact, they were probably the drivers behind the change. Strategic thinkers see into the future and plan for it. A competitive marketplace requires that we stay up-to-date with our field of choice. There was a time when we expected our employer to contribute to our personal development—not so much today. Staff training and development costs have been trimmed down. The choice to personally upgrade is yours to make. The same consequences apply. If you wait too long your employment or client contract
Reactive thinkers get what they get. ••• Strategic thinkers see into the future and plan for it.
will expire, your upgrade path will require an overwhelming investment, and you may find that others are choosing better equipped candidates. Why not consider a YOU Upgrade? Vision coaching is about setting our sights on the best YOU. Consider such questions as: • What works; what doesn’t work? • What stays; what goes? • Who will you influence and how? It’s about tapping into your passion—your core values. • What matters most to you? • Who is your audience? • Who needs you to show up as your best YOU? • What would you like the “About You” option to say? Legacy—what do you want to leave behind? Why Upgrade? How big is your WHY? Our best plans often get side-tracked when we short-cut the visioneering process. Without a passionate goal, it’s easy to give up when obstacles show up. I typically stop my clients here and invite them to step into the future. How will life be different when you are operating as your best YOU? Check in with your senses—describe what you see, feel, and touch. Make that vision irresistible. Test it. Does it matter to you? To others? Sometimes today’s challenges are so big that we can’t see beyond them. For some it’s best to tackle that BIG obstacle first. Set your sights on completing it. As you replace procrastination with action, suddenly the future begins to show up as hope. Completed tasks bring in the confidence you need to see beyond today, “I can do this!” Whether a short-term vision or a life-long dream, get your vision locked and loaded in your mind and heart; bring it back into your present. Personal Development coaching is about prioritizing and planning the steps that will take you there. Consider the cost… Time and money influence our priorities. How urgent is our need? It’s possible that our first task is not our favorite. With a clear projected timeline however, we can see how each step contributes to our projected future. Short attainable goals encourage us along the way. Expect creative tension along the way. Making room for the new is often a bit uncomfortable. It gets a bit messy before order can be restored. It took a couple of days for our
What matters most to you? ••• Legacy—what do you want to leave behind? Netflix to settle down. A direct internet connection vs. the wireless connection did the trick. Life is as it should be when it comes to relaxing movie time. Take time out to celebrate… New releases typically come with lots of fanfare. Marketers invest in their pre-release announcements. They keep that Vision in front of you. Why not do the same? Why not celebrate YOU as well? Plan it! Let’s get practical… It’s a New Year. How would you like it to end? What will this year’s best YOU look like? Body, mind, spirit, finances, career, etc. —where did you invest your time? What kept you focused? How did you anticipate and handle the challenges? Who supported you on this journey? How did you celebrate along the way? A closing question…. What would this New Year look like if you were 10 times bolder? TEXT BY MAGGIE SABATIER-SMITH
strategymagazine.com | STRATEGY | 9
GETTING PUBLISHED | Building Your Platform
Making it Work, Now, the John Bernard Way
John Bernard
...Fire Up Your People, Thrill Your Customers, and Crush Your Competitors... 10 | STRATEGY |strategymagazine.com
John Bernard, founder and chairman of Mass Ingenuity had his first book published this December: Business at the Speed Of Now: Fire Up Your People, Thrill Your Customers, and Crush Your Competitors. Management expert Bernard shows business leaders how to be responsive to customers’ queries, problems, and demands almost immediately. He presents his ground-breaking NOW Management System and discusses how to leverage three game changing forces: social media, cloud computing, and the millennial mindset. Bernard has been inspiring leaders to rethink how they run their organizations for thirty years. Having sat in nearly every seat around the leadership table, from founder/CEO of a start-up firm to senior vice president of a multi-billion-dollar financial services company with responsibilities for a workforce of 1000, Bernard’s consulting work has spanned the globe in high-tech, service, distribution, utilities, banking, insurance, manufacturing, health care, education, and government.
STRATEGY: Businesses everywhere are struggling for a variety of reasons. You say that one key issue all companies need to deal with is the fact that the economy has shifted from “mass production” to “mass customization.” What’s the difference? Why is this so significant? John Bernard: Competing in the 20th century demanded mass production thinking to achieve the price and quality customers wanted. Today with the Internet, social media and mobile access our customers have unlimited choice, and so to be competitive companies must be able to customize solutions to meet the needs of every buyer, while still delivering high quality at a low price. The implications to how we run our businesses are profound because it moves decision making from management to the front line of customer interaction. This completely changes the purpose and role of management. Management’s job for a long time has been to make decisions, now instead it must enable employees to make decisions. That’s a far more complex change than it may seem on the surface. STRATEGY: In Business At The Speed Of Now you write about “YESability.” What is YESability? Why is it more important than ever for companies to be able to say “yes” to their customers—and to their employees—and to be able to say it right away? John Bernard: In today’s real-time economy the only viable value proposition is “yes” and the only acceptable timeframe is now. Management must recognize this is the key to growing revenue, improving customer experience, and reducing costs. When your employees have the skills, knowledge, and authority to say yes to opportunities they encounter in their daily work, the business wins. The ultimate state of YESability is when every opportunity encountered by every employee gets acted on every time. Zappos is a good example of a company that does this well.
STRATEGY: You developed the NOW Management System to respond to the specific conditions of today’s economy. How does NOW differ from traditional management methods? Why do traditional methods no longer work in today’s environment? John Bernard: Traditionally management’s job has been to make essentially all decisions. In a mass-customization economy decisions must be made by the employees who encounter the opportunities. The NOW Management system eliminates the gap between what leaders envision and employees deliver by putting in place everything tools and methods employees need to make the right decision. Underlying the system is a philosophy that eliminates fear, focuses resources on constraints, and uses facts to drive decisions. STRATEGY: In Business At The Speed Of Now you say that companies must harness three game-changing forces if they wish to compete successfully. The first of these is social media. How should businesses be using social media? Why do you warn that organizations must eliminate policies that prohibit their employees from using social media in the workplace? John Bernard: Social media is simply conversations enabled by technology. These conversations have been going on behind our backs for years, and now we have the choice whether or not we listen to them. Ignoring the voice of your customers and your employees is dangerous. Employees access Facebook from their smart phones at will— you cannot prevent them from socializing. It is simply a matter of time before social media used inside the organization to facilitate “now” decisions will be commonplace, because it is a powerful means of listening to the voices of customers and employees. If you intend to stay competitive you will need to develop both external and internal social media strategies. STRATEGY: Cloud computing is another key force that you emphasize. What is cloud computing? Are there dangers to storing
company data and software on the web? What are the advantages to doing so? John Bernard: Cloud computing is simply the delivery of computing services via the Internet rather than on a local computer and proprietary network. With Web 2.0 technology it’s now routine to assemble whatever tools your organization needs from various sources into a comprehensive solution (aka: technology stack) rather than building your own custom application. The reality is custom applications are horrendously costly and risky to build and expensive to maintain. To compete in real time we we need more and better access to our data to drive real-time decisions, and the cloud makes that easier to do. While many fear data vulnerability in the cloud, the reality is cloud data is less vulnerable than local data because cloud vendors can afford more comprehensive security tools and expertise. The cloud is not without challenges, but it represents a compelling new direction for technology. STRATEGY: The millennial generation presents a puzzle to many companies. Many simply can’t understand a group of young people that resists the notion of paying-their-dues and bristles at any negative feedback. But you say that there are significant positives to the millennial mindset that businesses can harness. What are they? How can they give companies a competitive advantage? John Bernard: The millennial generation thrives in real time having grown up with constant access to technology. They have little fear of change and no regard for the status quo—a valuable asset in a time of great change. This generation takes social responsibility seriously, a healthy dynamic to cause businesses to pay full attention to the implications of their actions. And while their parents struggled with the need to better balance work and life, this generation insists on balance. Millennials are both employees and customers, so their voice needs to be heard and their perspective respected and integrated into the fabric of the organization. strategymagazine.com | STRATEGY | 11
GETTING PUBLISHED
The Publishing Industry: Rewind and Fast Forward The past year was an extremely interesting one, if not a bit scary, for the publishing industry. In fact, the shifts were so major, they altered almost everything about the way the industry is positioned, what it produces, and how it markets those products to consumers. So, I thought I’d take the opportunity to provide a summary of the major events. While I’m at it, I also give a sneak peek into the ndustry as I see it during 2012.
2011
What changed the face of the publishing industry? As I rewind, I see the following factors can take most, if not all, the responsibility:
1.
Books on Screen: It wasn’t very long ago that most consumers were saying they preferred their paper books to digital readers because they could “feel” them, turn real pages, use bookmarks, etc. Oh, how times have changed. In 2011, ereaders and other digital options gained so much popularity, sales surprised even the manufacturers. Now, there is quite a bit of competition in this space, with brands from Barnes and Noble to Apple to Amazon offering their own unique versions.
2.
Borders Goes Belly-up: A decade ago, no one would have guessed Borders could suffer the fate of February 2011. However, as the industry began to move toward a largely digital platform, and the company didn’t get with the swing of things as fast as its competitors, its downfall became almost inevitable. So, when the company filed for Chapter 11 protection, authors and publishers alike mourned not only the fall of a giant and industry staple, but also the shelf space that is now no longer available for their work.
3.
Going Indie-Style: Following Border’s demise, consumers began choosing Indie bookstores or smaller, independent shops when in the market for real on-paper books. It is expected that end-of-theyear numbers will show a boost in Indie bookstore-sales over previous years.
4.
Audiobooks in Demand: According to the Audio Publishers’ Association, sales of audiobooks were up almost 10% in 2011, with the total number of published audiobooks doubling over just the past three years. This serves as even more proof of changing consumer preferences on how they receive information.
5.
Interaction Required: We have become a social networked, digitallyconnected, and constantly interacting 12 | STRATEGY |strategymagazine.com
society. And, this is not lost on the industry. Authors have realized the need to come out from behind the pages to meet and greet their fans. Many are now using tools such as Twitter and Facebook to gain a following, entice with writing samples, and stir excitement over coming works.
What changed the face of the publishing industry? 2012
With a keen awareness that the industry is beginning 2012 in a very different position than where it began 2011, I predict the following for the coming year:
1.
Do-It-Yourself: Self-publishing is going to continue to have a big impact on the traditional publishing format by giving authors a real and viable option. Amanda Hocking is a great example of a self-published author who has proved true success with this method. According to WikiPedia, Hocking self-published 17 of her novels as ebooks beginning in April 2010. By March 2011, she had sold more than one million copies of nine books and earned two million dollars from sales. She recently signed with St. Martin’s Press for $2 million, but proves that some DIY authors may not need publishing house assistance.
2. Thanks, But No Thanks: Jumping on the DIY train, even big name, wellestablished authors are going to be leaving their publishers as their contracts allow. Companies such as Amazon are simply making it too easy to accomplish the same goals at a fraction of the cost.
3.
In Others News: Magazines and newspapers have been hit particularly hard by the recession. While there was a modest increase in advertising in 2011, the majority of advertisers know consumers are online; so that is where their marketing investment is going as well. As a result, it is likely more magazines and newspapers will close the doors on their traditional paperversions in 2012.
4.
The Truth About Non Fiction: It’s my belief that nonfiction will have a noticeable appearance as ebooks in the coming year. While this in part is due to the larger number of self-publishing authors, publishers also tend to avoid unknown/unpublished fiction writers. So, the majority of published works are nonfiction. With many publishers opting for the ebook format in 2012, you can do the math.
5.
Reading, in 3D: Okay, not literally. But maybe someday. The bottom-line is that authors need to be prepared to offer their works in more ways than just one (or even two). In today’s world, consumers want options. So, the successful author will reach them via multimedia paper, ereader, online, and via social networking. Stay Tuned… With one book going to a publisher and another taking the DIY route in 2012, I have to say that I am just as anxious and excited about what the coming year holds for the industry. I, for one, am happy to see the birth of additional delivery platforms. It simply provides greater chances of success for writers who want to reach others with our work. So, whether you are publishing with a big name or going solo, I wish you the best of luck in 2012.
TEXT BY AMY DAY
RATINGS
Influencers of the Mind and Behavior
Coming soon to a Nook, Tablet or stores near you, these must-have guiding self-help business books are filled with pages of inspirations to encourage you as a businessperson, bold and beyond. Want to make the sale? You need to learn to speak their language. The Secret Language of Influence; Master the One Skill Every Sales Pro Needs by Dan Seidman Great selling is invisible. Influence occurs at a level just below the buyer’s awareness. That’s important because today’s buyer is savvy and all too familiar with traditional selling techniques. However, a few simple words—the right words—can transform an awkward sales call into a comfortable conversation and a resistant prospect into a happy customer. Some people, for example, want to hear about the money they’ll save, while others respond to the pain they’ll avoid. By identifying different ways buyers are motivated, sales people can quickly customize their conversations and lead prospects to “yes.” The Secret Language of Influence reveals the best ways to approach buyers who are: Motivated by benefits vs. problems; proactive vs. reactive; big-picture vs. detail oriented; systems thinkers vs. creative minds; and influenced by external feedback (testimonials, evidence) vs. internal factors (feelings, personal experiences, beliefs). From the use of storytelling, humor, and emotion-evoking language to words to avoid and questions that advance the sale, this entertaining and practical book demonstrates the power of words to break down resistance and change buyers’ minds. Dan Seidman (Barrington, IL) is a globally recognized speaker, consultant, and trainer on selling and influence. He is the author of Sales Autopsy, and his regular columns reach more than 2 million readers monthly online and in print.
Don’t overlook the most crucial element to success—your reputation. The Power of Reputation; Strengthen
the Asset That Will Make or Break Your Career by Chris Komisarjevsky We judge people in business the same way we judge those in our personal lives. We listen to what they say, watch how they behave, and take note of the results of their actions. Success is ultimately built on a foundation of character, communication, and trust. To accomplish our goals, people must believe in us. The Power of Reputation offers businesspeople an action plan for creating the kind of reputation that generates trust, inspires confidence, and paves the way for lasting success. Readers will discover how to: Identify and reinforce the values behind their reputation; earn respect by respecting others; engage people through constructive, open communication; and build strong connections by personalizing their approach to everything they do. Featuring interviews with distinguished business figures and containing instructive real-world examples, this book reveals how to leverage the remarkable power of a reputation rooted in authenticity. Chris Komisarjevsky (Atlantic Beach, NY) is retired as worldwide chief executive officer of Burson-Marsteller, one of the world’s leading global public relations and public affairs firms, in 2005, after a 35-year career in public relations. He is the coauthor of Peanut Butter and Jelly Management.
Because it’s time to upgrade your life. Click Millionaires; Work Less, Live More with an Internet Business You Love by Scott Fox The rules have changed. The American Dream is no longer the “corner office.” It’s a successful business you can run from your home office, the beach, or wherever you desire. It’s work you love that still allows you the freedom and income to live the life you truly want. Sound like a tall order?
Well, thanks to the Internet, anyone can launch a business with little or no start-up capital or technical expertise. And in Click Millionaires, e-commerce expert Scott Fox teaches weary corporate warriors and aspiring entrepreneurs how to trade the 9–5 job they hate for an online business they love. The book explains how to combine outsourcing, software, and automated online marketing to build recurring revenues, all while working less and making fewer of the lifestyle compromises that corporate “success” requires. Readers will learn how to: Find a lucrative niche on the Internet that matches their interests and skills; choose an online business model: from blogs... and audience communities to digital delivery, online services, affiliate marketing— even physical products; position themselves as a experts; build their audience; and design the lifestyle they want; balance passion and profits to realize their personal definition of success. Featuring stories of dozens of “regular folks” who have reinvented themselves as Click Millionaires, this inspiring and practical guide shows readers how to stop dreaming of a better life and start living it. Scott Fox (Los Angeles, CA) is a successful online entrepreneur, an expert on social media marketing and ebusiness startup strategies, and the author of Internet Riches and eRiches 2.0. He hosts the popular Click Millionaires Radio podcast and is a weekly contributor to BusinessTalk Radio Net work’s nationally syndicated Big Biz Show. He has been featured in publications including The New York Times, The Wall Street Journal, SUCCESS, and Smart Money.
To read this article in its entirety, please visit www.strategymagazine.com.
TEXT BY DICK MARTIN (Summit, NJ) Dick
is a writer whose articles have appeared in the Harvard Business Review and other publications. The author of Tough Calls, he was executive vice president of public relations, employee communications, and brand management for AT&T. strategymagazine.com | STRATEGY | 13
ENTREPRENEUR | Leadership Development
Reality Bites Six smart pieces of advice to the young and restless who crave their own business, regardless of the economy. Thousands of young people have dreams of having their own business, because such a dream is not only a way to fortune, success and honor, but also provides infinite possibilities to realize their personal value and show their intelligent and ambitions. However, desire, longing or imagine will never bring success in front of you, and on the contrary, there is a long way full with difficulties and frustrations to go before obtaining what you want. If you intend to start a business of your own, you might consider the following personal and realistic applications.
1
Establishing a Business Is an Adventure of a Dreamer and Doer
Before the start a new undertaking, you should take a full consideration of your own characteristics and advantages. Dreams will lead us and bring us passion. Yet, if you only have dreams but are not willing to take actual actions, dreams are only dreams and they never come true. You need to prepare yourself to have the awareness that establishing a business is an adventure, and there are only a few chances of success for adventurers.
2
Leadership and Forgiveness are Necessary
If you are determined to hew out a career, especially a big business, your individual effort is far from enough. Cooperation of a good team will contribute to your achievement. Therefore, your ability of leadership and organizing is very important. Never think a boss simply orders people around. Power cannot bring you loyalty; cohesive force and fighting capacity, which are exactly the key of the ultimate triumph in entrepreneurship. Of course, to bring out the best in your employees,
you should have a containing heart of various roles.
3
The Way You Carry Out a Project Is More Important Than What The Project Is
A lot of people devote most of their energies to looking for proper projects while starting a business. In fact, to common class, a few of them could enter a huge profit industry and get a huge profit project. To observe carefully, research the profits and deficits occurring in every industries and all kind of projects. Having a good command of management and business operations is crucial to realize profit.
4
Networking and Interpersonal Relationship
The turning point of business development depends heavily on networking and interpersonal relationship. Build networking and interpersonal relationship with great care and sincerity, and you will benefit from what you build some day.
5
Change at the Right Time
6
Achieve a Peace Between Wealth and Soul
There is no doubt that persistence and determination could access success. To those specific things in your investment area that might need change according to opportunities and social backgrounds; change is the answer and more so the timing.
Never be the person who won the whole world but lost his soul. To peel off the role you play in the society, the only thing left is your soul. While chasing wealth and fame, do not forget to keep peace and pleasure of your mind. If you feel difficult to get rid of craving material things, try peace wristbands...they actual work. They are normally made of silicone rubber, simple and low-cost, but with powerful words to give you faith and also be as a kind reminder. TEXT BY EBAN POTTER strategymagazine.com | STRATEGY | 17
ENTREPRENEUR | Sales & Marketing
Reigning Emotions Uncover your true brand story by gaining consumer insight; it’s easy if you pay close attention… Stories are powerful when used as a way of understanding what a brand means, today; enabling meaningful brand stretch, tomorrow. Gaining consumer insight about their full brand experience helps to identify emotional connections. Memories come from many sources and are hugely powerful in making emotional connections. Working out whether memories consumers have are personal, founded in a product truth or derived from marketing activity, will help to build stronger relationships with consumers. Plato and Descartes attacked the power of narrative and this cloud of disapproval has lasted for thousands of years. But in recent years the tide has turned and there has been a shift back toward telling stories in brand innovation. Asking consumers to narrate the story of a brand like Guinness would suggest that despite a shift toward on the move products, the ritual of the pour allows Guinness to buck this trend. Also, the ritual of crumbling an Oxo cube implies that it would lose relevance if the format became more convenient, so it will be interesting to see how the recently launched Oxo tubes will fare. A recent ethnographic study revealed that the Lyles Golden Syrup brand has a wealth of emotional meaning amongst consumers, despite no recall of any advertising. It’s a brand that has stood the test of time and connects with mums particularly, as it links to the notion of relieving the stress of being a parent and helping to maintain a work/life balance. Lyle’s brand meaning for mums is as an oracle, or font of all knowledge, with the magical ability to introduce children to their first experiences of food preparation. The memory is centered on the fun of cooking with your kids and therefore the brand enables a sensory experience, from the rich golden color and sticky texture, to the smell of freshly baked flapjacks (and more).
Storytelling allows people to see, feel and believe... 18 | STRATEGY |strategymagazine.com
Understanding the meaning of a brand can help brand innovation, particularly within the area of brand stretch. Just think about the endless possibilities for Lyles Golden Syrup! However, the arrogance of brand owners prevails with constant brand tracker monitoring, which only serves to tell marketers what marketers want to know and not the things that keep the brand relevant. Relevance is something that is constantly changing and developing, but is rooted in deep connections with the consumer. These connections are built independently, through a personal experience, creating meaning and memories. Brands such as Marmite feel like the brand of the people and their brand stretch is linked to personal memory. An ethnographic study highlighted that Marmite plays a real role in ritual, as well as flavor combinations. The study also suggested that families see Marmite as a brand that symbolizes family cohesion. It can cause powerful division in a household, bonding some family members and creating playful antagonism between others. It is interesting to think that if brands like Smarties talked to consumers about personal meaning and memories, they would not have moved away from the round tube. This shifted the brand into a more generic emotional territory. The round tube conjured up childhood memories of the plastic lid and the letter…daring your friend to pour the whole pack into their mouth…the challenge of identifying flavors by color… All of these personal meanings and playful rituals have now been lost and so has the connection people had with the brand. Storytelling allows people to see, feel and believe— quickly co-creation drawing in the listener or reader. Everyone seeks a sense of connectivity and affinity, so it will benefit the innovative and consumer focused brand owners to make sure they understand their true brand stories. Feeding consumer insight and ideas into the NPD program or of their brand or brand stretch can have real impact and will ensure that NPD does not damage strong consumer bonds. TEXT BY MICHIEL VAN KETS strategymagazine.com | STRATEGY | 19
BUSINESS | Management
Better Not Be You; or Your Team
Sales Productivity; Yes, Sir, Yes, Madam‌ It’s called Better Sales Enablement
Have you ever had sales people who just never seem to make it no matter how hard they try? These sales people are one of the main factors for decline in business. Your sales people are the heart of your company and without good ones you will find it difficult to succeed in selling your products. To train good sales people you sometimes need to take a different approach. Here are 11 tips that will save you from becoming the worst sales person in the company:
1
. Not Being Punctual
Being on time is very important to a customer. Take into consideration that many of your seasonal Christmas customers will be new. Your sales people will represent the first contact these customers have with your company. First impressions are lasting ones and your sales person need to make a good impression. Being on time will give a good impression to the client and increase their confidence in your company.
2
. Poor Presentation
Some sales people just do not have all their ducks in a row and simply do not present the product well. A presentation is the first thing a customer will know about your product. If your product is not shown correctly to the customer he is very unlikely to buy.
3
. Bad Attitude Rudeness and unprofessional behavior is not acceptable under any circumstances. It is quite surprising that
20 | STRATEGY |strategymagazine.com
you will meet some sales people who are just plain rude and short with you the consumer. This gives the potential buyer the wrong impression about your company. They do not get a proper picture of the product, as they will probably not even wait for the presentation to end. You will lose many sales like this.
4
. Not Being Articulate
A sales person must know how to express himself with confidence and fluency. He needs to be able to greet the prospect and introduce himself with assurance. This will start the whole presentation off to a good start. When he actually presents the product he must be sure to do this in a confident manner. He should also be prepared to answer all questions concisely and well. If your sales person cannot do this, your sale will not go through.
5
. Not Listening to a Customer
A sales person should not only be able to present your product but listen to the prospective buyer. There is nothing more irritating to the consumer than having a sales
It is extremely risky for a sales person to depend on cost to close the sales.
person go on about a product and not letting you ask a few simple questions. After all whose money is on the line here? Worse still is when you do finally get to ask your question and instead of giving you a straight answer they go off on a tangent and have clearly not been listening to you. This will make a customer angry and they will probably never do business with you.
6
. Basing a Sale on Cost
It is extremely risky for a sales person to depend on cost to close the sales. The prospective buyer will be quick to take advantage when he sees that the deal depends on the cost factor. He will drive the price as low as he can and you will take a heavy cut in profits for the sake of a sale. The buyer may hold off and then not even buy.
7
. Not Knowing When to Close a Sale
This is a common fault but a lethal one. Many sales have been lost because the sales person did not know when to close the sale. A good sales person is in tune with the prospective buyer and knows instinctively when to move to close the sale.
8
circumstances. Inflexibility will cost you many sales.
10
. Not Following up a Hot Prospect
Follow up is very important. It is actually plain good manners. You have spoken to a person who has expressed interest in your company’s product but may not have been able to make a decision yet. It is courteous and good for business to follow up with hem. You may even make a sale this way. If your sales person does not know how to do this you will end up losing valuable customers and sales.
11
. Biggest Time Waster Spending more time on Facebook and surfing the Net versus cold calling‌
TEXT BY ARVIND YADAV
. Hard Sell
Hard sell is when sales people try to push the sale on the prospective customer. This will make the buyer aggressive and he will try to get rid of your sales person as soon as possible. It is a proven fact that nobody likes to be sold to.
9
. Inflexibility
A sales person should be aware of different personalities and various situations. They must be flexible and able to adapt to different circumstances. The presentation may be the same but the buyers are rarely the same. Each buyer wants to feel special and expects the sales person to understand his strategymagazine.com | STRATEGY | 21
FEATURE
Investment Strategies: What To Do After Vacation Has Come and Gone “January. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, October, September, April, November, May, March, June, December, August, and February.” - Mark Twain
Mark Twain was a joker, but January can be a treacherous month in the financial markets. Investors are back
from their vacations, and they’re watching the market closely. Investors, who have positions and have their stops and limit orders in place, can buy stocks as they go on “sale” and take profits when stocks exceed target prices. Up, down, sideways —January is an active month. Potentially it is a profitable month, and now is the time to prepare; to evaluate strategies.
Strategy One: Do What You Know Because It’s All About Cash Flow Thomas J. Stanley and William D. Danko wrote the book The Millionaire Next Door while trying to learn how to market to the wealthy. What they learned about the rich in America is significant. The highest net-worth people in America spend less than they earn. They make large incomes from low-tech, cash-cow types of enterprises or from low-overhead professions. The people with the most money in the United States have control over their commitments and fight the urges of instant gratification. As Stanley and Danko researched the rich, they found many families struggling to meet the demands of mortgages, car payments and burdensome credit card bills.
24 | STRATEGY |strategymagazine.com
Everything becomes unnecessarily stressful when a family cannot maintain financial discipline. The condition of being cash-strapped, yet living in a mansion and driving an exotic automobile bring to mind the scene from the 2000 movie Boiler Room where several young stockbrokers are gathered around a television in a sprawling, unfurnished house (while reciting verbatim the famous greed-is-good speech by the
character Gordon Gekko in the 1987 movie Wall Street). A business that doesn’t produce adequate cash flow is an expensive hobby. According to Stanley and Danko, businesses such as coal mining can be very profitable, and they mention law and dentistry as two professions with relatively low overhead and high gross profit margins. Consultants who are able to work at home or with laptops, cellphones, and PDAs while on the road are able to keep expenses down also. There are certainly many other professions and enterprises that fit into the category of cash cow. The world is always going to need accountants, pest exterminators, plumbers, mechanics, tool and die makers, architects, and morticians. Whether the enterprise is a small mechanic’s shop or a sophisticated law office, successful business people know what their cost structure includes every month. Also, they understand the cash flow and workflow of their particular business—especially if it’s cyclical. Portrait photographers must plan ahead to run specials and do marketing in December to make up for doldrums in January and the first half of February. March through November they are normally very busy. Accountants may work seventy hours per week from February through April, and they may spend the rest of the year advising clients, developing business, and performing routine functions. In any case, wealthy people understand the ebb and flow of their profession. They know if their accounts payable exceed their accounts receivable that a cash flow problem is upon them. They comprehend and have an intuitive feel for the cost structure of their enterprises, what they should be grossing, and they know what actions they should take at any moment to ensure viability of the business. Equally, a household that spends more than it earns is a potential disaster. Millionaires run their personal financial affairs with discipline. Wealthy people in America put their surplus funds to work. They set aside funds for emergencies, and they invest for the future. They manage their resources to maximize the enterprises they understand, where they are able to produce outcomes with some predictability and minimize exposure to risks that are unique to those enterprises.
Pay Yourself First, Invest In Yourself First...
Do What You Know... Strategy Two: Pay Yourself First, Invest In Yourself First Many budding entrepreneurs and professionals forget the advice, “Pay yourself first.” Seasoned entrepreneurs know there will always be an alligator to eat up the money, so they compensate themselves first, and they allocate cash to pay expenditure slater. Getting paid first is critical because time is truly money, and the faster they can get money working, the sooner they can give to charities, provide educational and cultural opportunities to children and loved ones, and support causes and candidates that promote solid values and ideals. The first strategy covered re-investing in the enterprises that
bring positive cash flow. In Strategy Two, paying yourself first keeps personal expenditures contained and allows for investment in yourself. Making time for outdoor recreation, exercise, traveling to new places, doing research into emerging trends, treating a nagging health problem, and going back to school, are all ways of investing in yourself, which ultimately increases your capacity to earn. Formal education toward an advanced degree or certification is almost always worthwhile in monetary and emotional returns. Many successful companies are led by CEOs who attended law school but chose not to practice law. They went to law school to learn how to get information, how to interpret data, how to ask the pertinent questions, and how to communicate the appropriate answers. Expanding your reasoning and thinking skills by going back to school can make you a shrewder investor and enrich your inner life.
Strategy Three: Follow The Leaders and Use Three Sound Investment Philosophies: The East-West strategy, the Modern Portfolio Theory, and Value Investing. The East-West strategy is a balanced portfolio approach. Half the portfolio is in dividend earning utilities stocks and mature companies, and conservative interest earning investments such as municipal bonds, Treasury securities, and high-grade corporate bonds and altogether make up the East side. The other half of the portfolio is in growth stocks, foreign stocks, cyclical stocks, IPOs, and start-ups. The investor keeps strategymagazine.com | STRATEGY | 25
FEATURE CONTINUE.
CONTINUE.
the portfolio balanced by investing the incremental, smaller gains from the conservative group into the principal of the more aggressive (West) side, while taking the larger gains from aggressive securities and adding them to the principal of the conservative (East) side. Drawing two columns on a blank sheet of paper, while labeling one side East and the other side West then listing conservative investments on the left and aggressive investments on the right — now linking the columns with yin-yang arrows—produces an illustration of the model. It’s a simple method for balanced, controlled portfolio growth. The Modern Portfolio Theory, which is the basis of money management and hedge funds, is a little more abstruse. Without trying to oversimplify the details, hedge fund managers attempt to “buy” the market. They buy stocks from the companies in market sectors, and they hedge their bets, making short sales of companies that look overvalued within each sector. If only part of the sector moves, the funds benefit from the diversification of the entire sector, and potentially, the fund can still make money from the short sales of overvalued companies within the sector when those stock prices take a downturn. In effect, the Modern Portfolio Theory attempts to maximize gains and spread out risks over entire stock market sectors. It’s based on complex mathematics, but hedge fund portfolio managers like Mark Yusko of Morgan Creek Capital Management in Chapel Hill, North Carolina have done very well for their customers. The buy-in for their investment services is $200 million. As of last year, Morgan Creek is affiliated with Julian Robertson of the Tiger Fund in efforts to produce a hedge fund with a buy-in of $5 million. Yusko and his team have many years of experience working with University of North Carolina, Duke University, and University of Notre Dame endowment funds. For investors able to afford hedge fund managers ‘services, one to three percent of assets go to management as fees, plus net profits up to 20 percent may be shared with the advisers. Benjamin Graham introduced value investing in his classic books Security Analysis and The Intelligent Investor. Warren Buffett declares the latter “the best book on investing ever written.” His investment holding company, Berkshire Hathaway, has done extremely well. Benjamin Graham’s model for investing in stocks is a simple formula that includes earnings per share (EPS), five-year earnings growth estimate, average yield of high-grade corporate bonds in the current year, the current yield of AAA corporate bonds, and the price-to-earnings ratio(P/E) of a no-growth company (which Graham estimated to be 8.5). Although the model may be too rigid considering the volatility of today’s stock market, it takes into account a company’s fundamentals and the broader market conditions. 26 | STRATEGY |strategymagazine.com
Never have all your eggs in one basket. Strategy Four: Look For Securities at Sale Prices Whether bonds, options, or stocks, it’s smart to look at the technical charts, and the sales and earnings reports to determine if the stock might be in a “pocket” or window of buying opportunity. Phil Town, author of Rule #1 and commentator on CNBC’s The Millionaire Inside, advises people to buy stocks on sale—meaning, think like a business owner and buy a company that’s understandable when it’s price is half what it should be, then sell it when the stock price reaches the estimated target. September and January may be great months to use contrarian tactics to find undervalued securities. If a company is cyclical, an investor can watch the stock’s price chart through any of the online brokerages, Reuters.com, or even Yahoo! Finance. William J. O’Neil, publisher of Investor’s Business Daily, recommends buying stocks with solid company fundamentals and a technical chart that forms a discernible cupand-saucer pattern, which might signal an upward breakout for the stock.
Strategy Five: Diversify “Never have all your eggs in one basket.” The old proverb is a good rule. The Modern Portfolio Theory tells managers to buy the market and spread out risk systematically. If an investor knows a particular industry and market, then their tolerance for risk is much higher than the novice investor whose experience is limited to mutual funds and annuities. According to Paul Hawken, author of the Next Economy and Growing A Business, entrepreneurs are not risk-takers. They minimize their exposure to risk with knowledge and appropriate action. Investors with specialized knowledge and insight might minimize their risk and maximize their profits by investing solely in an industry they comprehend. Others may need to create diversification by investing in solid companies using the Benjamin Graham value method. In 1999, Warren Buffett addressed the students of the University of North Carolina Kenan-Flagler School of Business and explained that he liked to buy companies that were simple and solid. At that appearance, Buffett explained how he used Benjamin Graham’s
Investors should never become emotionally attached to a stock. model for investing in large blocks of Coca-Cola and a substantial part of Gillette. As evident in the success of Berkshire Hathaway, he owns stock in many companies that were undervalued at some point, providing diversity and lowered overall risk. In 2007, David Bach, another commentator on the CNBC special The Millionaire Inside and the author of several practical investment books, recommends a diversification strategy of one-third of assets in real estate, one-third in stocks, and one-third in guaranteed returns.
Strategy Six: Never Deviate From a System That Works Many people understand the theory of value investing as outlined by Benjamin Graham and put into practice by Warren Buffett, but very few investors understand the concept of protecting investments from downturns and the concept of taking profits. Investors born during The Great Depression often buy and hold, and they keep holding. Investors should never become emotionally attached to a stock. If the stock price has exceeded Wall Street estimates, and the investor can at least sell a portion of the shares, they should follow through and take some profit. Some investors who want to maintain a foundation of consistently good stocks in their portfolios will sell off only enough shares to pay for the original purchase of stock. Preferred shares and dividend-paying stocks (often times mature companies such as utilities) make good portfolio foundations when it comes time for Baby Boomers and children of The Great Depression to diversify. Markets are so volatile due to institutional and automated trading that investors should always have stop, stop-loss, limit, and stop-limit orders in place. Most brokerages keep a good-until-canceled order (GTC) for sell-limits and buy-limits for ninety days. Keeping such orders in effect with the brokerage serves three purposes: a) Downside protection from a loss greater than the investor-specified limit, b) The opportunity to take a profit in a stock that has reached its target without the hassle of watching a computer screen all day, and c) The chance to utilize cash reserves for investment in new stocks without waiting for a stockbroker’s phone call to time
a purchase. A disciplined strategy for getting out of an investment position is just as critical as an investment purchasing algorithm.
Strategy Seven: Pass It On Raymond A. Moody wrote a short, anecdotal book about the experiences of people who have been revived after being declared dead called Life After Life. The individual stories differed in regards to the transition made into the afterlife, but there was a common thread in the experiences of the deceased-revived. The respondents were questioned on two subjects—either by impression to the mind or by direct interrogation from benevolent souls. How well did you live? And how well did you love? Successful professionals and entrepreneurs live well. They are net producers in the socioeconomic fabric of America. The wealthy have grand opportunities to work hard and play hard. The affluent can indulge their tastes for the haute-luxe life, live well, and reward themselves. They have the power to create opportunity and confidence within their own families through the use of family partnerships, revocable and irrevocable trusts, 529educational programs, Uniform Gifts to Minors accounts, and family foundations—in effect passing on the love. Legacy gifts to educational institutions and planned donations to hospital and research foundations have been increasing the quality of life for generations, since the beginning of the United States of America. The time is now to get proper advice from CPAs, estate planners, and attorneys. An updated will is always a good investment of time and money, and insurance needs should be reviewed frequently. It takes work and stewardship to accumulate wealth. It takes structure, strategy, and planning to keep an estate out of probate court. With some evaluation of strategies and implementation of portfolio safeguards and diversification, January can be a profitable month. Just as an artist must begin with a clear image of the final painting in mind, investors must decide their goals, must visualize the end result very clearly, and must create the game plan to accomplish the vision. Producing a substantial income, spending less than personal earnings, investing in enterprises that are comprehensible and have positive cash flow, paying and investing in oneself first, looking for bargain investments, consistently working an investment strategy that creates diversification over time, and passing on the wealth to do more good in the world are solid strategies for investment management at this time of year. Indeed, January could be a particularly great month. TEXT BY ALAN GRUVER strategymagazine.com | STRATEGY | 27
FEATURE
Challenge and Opportunity in the Year to Come Expectations help determine outcome. People of vision and action lead the way; whether you lead or follow, will you please take a stance?
Dr. Dave Jenkins, a physician from New Zealand, is an avid surfer. Ten years ago, he went to the Mentawai Islands in the Indian Ocean to find the Perfect Wave. He discovered the Perfect Opportunity. When Dr. Jenkins came on shore in a small boat, some of the poorest people on Earth came to greet him. The villagers found out he was a physician, and they brought to him a woman dying of pneumonia. Tragically, the woman died, and her death could have been prevented with early treatment. Dr. Jenkins became motivated to help these people. He took inventory of the health conditions and determined that malaria was the greatest threat to the Mentawai people. He began a campaign to outfit the islanders with permethrin-treated mosquito netting. After enlisting the help of an investment banker named Andrew Griffiths, Dr. Jenkins was able to broaden the scope of his humanitarian organization. Now SurfAid International continues its mission to stop preventable diseases through education, the distribution of the special mosquito nets and basic medicines, and the coordination of visiting medical staff to natives in more than 53 villages. The enterprising doctor saw a need and chose to act; other people with resources bought into the vision, and the Mentawai people are healthier and can expect to live longer. What are the challenges in the world today? As a new year gets underway, where are the opportunities for improvement? As hostilities grow throughout the world, how can one affect positive change? The CIA’s The World Factbook says the world population has reached beyond 6.5 billion. China now has more than 1.3 billion people. In October, the United States’ population exceeded 300 million. Sustainable food sources, renewable energy, adequate infrastructure, climatic change, pollution, affordable housing, quality education, basic health care, preparation for natural disasters, and coping with the devastation of crime, 28 | STRATEGY |strategymagazine.com
warfare, and terrorism are issues that daunt leaders worldwide. As more people inhabit the planet, the issues become more pressing. Homo sapiens have less elbow room. As more people come into the world and people die off more slowly, the competition for scarce resources worldwide might resemble dinnertime at a Depression-era boarding house: Stronger entities with the capacity to act quickly will push weaker entities aside. In the United States, manufacturing is leaving for cheaper labor markets. Highpaying blue collar jobs are all but gone, and with them goes the need for middle management. The middle class is shrinking— which means the disparity between the have’s and the have-not’s will be much more evident in the future. Highly skilled professionals will always be in demand, but people with less education and training will suffer along at low wages, flying under the radar of unemployment figures. In the last few months, unemployment in the United States reached a record high. But that figure never accounts for underemployment, for those people who teeter along the periphery. The underemployed category includes those who are college-educated and have been downsized into temporary work or jobs where they cannot fully utilize their skills and abilities, the adult children of Baby Boomers who live with their parents because they cannot afford to “launch,” retirees who have taken
...where are the opportunities for improvement?
minimum wage jobs because Social Security and retirement funds don’t make ends meet, tradespeople and contract workers who get paid under the table, and scores of other folks who avoid taking government assistance. The days of spending an entire working career at the local factory are gone. The local factory is closed and vacant. Townspeople pray for a logistics hub or a retail center—anything that brings jobs and currency to the local economy—to open in its place. Inevitably, when a factory leaves and something else moves in, the new businesses do not offer many permanent, high-paying jobs to the employment seekers. New creation of wealth and jobs must come from emerging technologies and small, local businesses. Less than 10 years ago, Mother Earth News reported that there was enough arable land in the United States for every family of four to homestead on five acres and sustain itself with food, energy, and potable water. Now that the population is over 300 million, it seems unlikely that there will be space available. Schools do not teach homesteading. So, if five acres were available per family, most tenants would not have the requisite skills to take on homesteading, let alone maximize the property. Creating one’s own energy is possible, but few people have the ability— or the pressing need to attain the skills—to produce ethanol, biodiesel, or solar hydrogen. Sunshine is still abundant in North America, yet few people are willing to go off the grid. Meanwhile, landfills are filling up. The environment is suffering. One need only experience the clean air and water of the Rocky Mountains or of southeast Alaska to understand the contrast to metropolitan areas on this planet: pristine versus polluted. The threat for an El Niño winter is here. Scandinavia has experienced paralyzing storms this season, and The Miami Herald declared winter might come to South Florida,
again. The depletion of the ozone layer is occurring rapidly. And the polar ice caps are melting. What a conundrum. The world is decaying. Most people cannot grow their own food, and they are poor stewards with their land. And now there’s more of us than ever before. Infrastructure in developing nations, by definition, is lacking. But the United States’ infrastructure is also lacking. This nation is feeling growing pains like never before. Roads are clogged; consequently, commute times are up. The potential for gasoline to rise above $4.00 per gallon is ever-present, yet the growth of alternative fuels and alternative transportation is in the background. Buses, railways, and trains in this country are woefully behind the mass transit systems of continental Europe. New growth and renovations in metropolitan areas such as Miami, Phoenix, and Dallas cause increasing demand for power and information networks. The price of building materials rises daily thanks to increased demand from China and the rebuilding from hurricanes and tsunamis. Prisons are full, and criminals are freed before the penal systems can rehabilitate them. Internet searches can yield the names and addresses of predators in a community, but that fact gives no comfort to law-abiding, tax-paying citizens. In the shadows of No Child Left Behind and high standardized test scores, high school graduates do not recognize the name Christopher Columbus. Most college undergraduates do not know the names of a half dozen world leaders. Children are allowed to use calculators for end-of-grade tests, so there is no need for them to learn arithmetic and multiplication tables. The young generation can burn music CDs, build websites, and post videos on the Internet—and they can get into college. But they have no intuitive feel for numbers because they never develop basic math skills. In all fairness to the dedicated teachers all over this nation, schools are underfunded and bursting at the seams. The needs of individual students cannot be met when the classroom looks like a three-ring circus. As technology makes the world a smaller place, neighbors rarely bond with each other. Teenagers model the icons of popular culture, never learning to open the door for females, seldom removing their hats when entering a building or home, and
remaining ignorant of appropriate etiquette and language for use in polite company. The systems are overloaded. From the way people travel across the country to the way children interact on the playground, the coping mechanisms of society are under pressure. Latinos are the largest minority in the United States. Twelve percent of all U.S. households speak Spanish. In October, on CNN’s Anderson Cooper 360°, commentator Lou Dobbs said, “...we’re running out of resources...,” in response to a story about Dalton, Georgia’s influx of Spanish-speaking people. African-Americans are feeling the strain of jobs going to Latinos, and the conflict for social services has switched from blackand-white to “black-and-brown.” That observation is food for thought: Every day many Americans go without health insurance—and without the opportunity to receive
As technology
makes the world a smaller place, neighbors rarely bond... preeminent health care. The latest government directive admonishes everyone to get tested for HIV. The Centers for Disease Control and Prevention (CDC) recommends testing for everyone between the ages of 13 and 64. People who engage in high-risk behaviors should be tested yearly. Although most health departments give free testing, patients would benefit from keeping their health information with a single primary care physician. Also, the combination of drugs necessary to sustain an HIV/ AIDS patient is expensive. As the U.S. population ages, the demand for prescription drugs will increase. The elderly who rely on government assistance to supplement their retirement income oftentimes do not have enough money to purchase necessary medicines, or they may have to make do with older, less efficacious drugs that Medicare/Medicaid will cover. National retail chains sell generic drugs at
very low prices, and Pfizer announced a program last year to help people who need the company’s drugs. But there are two ways to get the latest treatments and medicines: have the money to afford adequate health insurance—or have the time to volunteer for experimental treatments and drug studies. For instance, the University of North Carolina’s dental school runs a teaching clinic where indigent people can receive cleanings and other procedures. But there is a waiting list for services. An abscessed tooth waits neither for dental insurance coverage nor for proper treatment. Health care is as much a domestic concern as it is a global one. As minority populations have grown in the United States, the need for cultural tolerance increases. Diplomacy starts in households and neighborhoods. Practicing the social skills detailed in How to Win Friends and Influence People becomes tantamount to productive human relationships, without the need for diversity training. Dale Carnegie’s best advice was to spend more time giving genuine compliments, asking questions, and listening intently to other people. This country’s short history is full of cultural assimilations (most easily recognized in the Restaurants section of the local Yellow Pages). When parents teach children to celebrate cultural differences, the need for institutional diversity training will disappear. Families can practice their own religions and cultures in the home and share them with interested neighbors and coworkers. As the children of America grow to value others who may be different, they will have the respectful attitudes necessary to heal the wounds of two centuries of haphazard U.S. diplomatic policy. While former San Antonio mayor Henry Cisneros served as Secretary of Housing and Urban Development, he toured Detroit and became inspired. He started American Sunrise, a non-profit company, to bring suburban housing into an urban environment. Others with resources bought into the plan. Now families can buy affordable housing in the American Sunrise Community in San Antonio... To read this article in its entirety, please visit www.strategymagazine.com.
TEXT BY MAVIAN AROCHA-ROWE strategymagazine.com | STRATEGY | 29
FEATURE
Gaining More Momentum
Financial guru, best-selling author and top-syndicated radio host Dave Ramsey just added another bestseller notch to his financial belt. His latest chart topper is EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, based on the core principles of how Ramsey grew his company: debt-free.
As a self-professed Ramsey groupie myself, I couldn’t think of a better Rock Star Conversation to kick off the New Year: STEELE: What is EntreLeadership? RAMSEY: EntreLeadership describes the passion and creativity of an entrepreneur combined with sound leadership principles. Most small business owners are really good at one or the other. In teaching the principles to business owners, we help them narrow down their strengths and weaknesses to help them hire the right people and grow their business. STEELE: Often you hear people say ‘you have to spend money to make money’ —they don’t say ‘take out a loan.’ How do you advise companies to succeed and stay debt free? RAMSEY: The biggest reason small businesses fails is because they grow too quickly. You’ve got to grow slow and avoid debt. In business, you’re going to make mistakes. And if you have debt, the mistakes are magnified. So if you have debt on your business, get on a plan to get rid of it. Then, avoid debt at all costs! Rent, outsource, do whatever it takes to grow slow. Every time I read the book, “The Tortoise and the Hare,” the tortoise wins. STEELE: How do you feel about business plans? RAMSEY: You have to have a plan for your business, know who you are and, more importantly, whom you serve. It will keep you on track and help you concentrate 30 | STRATEGY |strategymagazine.com
on what you are good at. STEELE: When it’s time to grow a company, what positions do you advise leaders to fill first? RAMSEY: This depends on the business you’re in and your own strengths as an EntreLeader. If you aren’t good at accounting, then your first hire should be a bookkeeper. In our business, the first person I brought on board was a financial counselor because I physically couldn’t handle the demand alone. STEELE: In EntreLeadership, you highlight recognition and inspiration as great ways to get the best out of your people. Why do you think so many so-called leaders still treat employees poorly but expect their best? RAMSEY: The Golden Rule applies even in business. How can you expect your
team to perform to their potential if you’re constantly micro-managing and dragging them down? Treat your team members like you would want to be treated. STEELE: Technology is changing the way companies market, what is great marketing? RAMSEY: Marketing is really the overall plan that gets the product or service to the customer. With technology you can bring quality products to the market faster right now with Twitter, Facebook and YouTube. There are great ways to get the stuff out there. STEELE: What would you say to company leaders about using social media? RAMSEY: You’re crazy not to use it! It’s free. Back when I started in the 80s we struggled to get the word out that we even existed. Today, you don’t need marketing dollars when you’re first starting out, you can easily use social media to bring in business. STEELE: You came late to the Twitter party but seem to have embraced it wholeheartedly; why? RAMSEY: Like the radio show, it’s great to interact with people directly. Twitter can bring big results to your business for a small commitment. STEELE: Most important thing a leader should do to grow his or her business? RAMSEY: Hire slowly. This is one of the biggest mistakes small business owners make because they’re covered up and just need the help. So they hire the first person that comes along, only to create more problems down the road. Take time to hire. Get the right people on the bus. At our place, we have a 12-step process to get hired and a low turnover rate as a result. STEELE: Who’s your favorite rock star and why? *Alas, my financial hero is a country fan and declined to answer this question. In closing, as we kick off 2012, I wanted to leave you with my personal Dave
Ramsey story: In late 2004, I informed Charlie the Wonder Husband that I was miserable at work and wanted to come home to spend more time with the kids and go back to freelancing in PR and marketing, maybe doing the occasional voiceover if I was lucky. Crazy? You bet! I was asking to leave a six-figure job with all expenses included, a matching 401K, all health benefits and the freedom to come and go as I pleased. We had two car payments as well as a couple of credit card balances and a boat payment. Despite all that, I knew I needed to work for myself and get the creative juices flowing once again. Corporate America just wasn’t the right cup of tea for this former rock and roll radio chick. We sat down that night, took a serious look at finances and began to cut costs like crazy. We found a new home for the nanny, traded the two sports cars in on a much cheaper, more practical car and didn’t buy a thing unless we absolutely needed it. Friends and family thought we (I) were crazy. And boring. Fast-forward six months. The freelance business picked up much faster than I could have ever dreamed and we had already paid off one car, the boat and one credit card. Then, another man came into my life…I heard Dave Ramsey on the radio. From that moment on, we knew we weren’t crazy but actually onto something and attacked debt and savings even harder. Today? We are still debt free and are working to pay off the house before our last one graduates from high school. College, savings, the emergency fund, and our retirement accounts are funded. Now, we are able to buy gadgets and have the occasional expensive meal without guilt or breaking out into hives. We still pay cash for everything, including cars. The best part? We are able to give to others—we’ve adopted an at-risk middle school class, bought books for underprivileged kids for the holidays, can donate when friends compete in charity sporting events, and the list goes on. Thank you Dave. We like your kind of crazy.
Dave Ramsey is a personal money-management expert and extremely popular national radio personality. His syndicated radio show is heard on more than 450 stations across the country. His four New York Times best-selling books—Financial Peace, More Than Enough, The Total Money Makeover, and EntreLeadership—have sold more than 6 million copies combined. Dave’s latest book, EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, debuted at number one on the New York Times best-selling list.
TEXT BY DAYNA STEELE Dayna Steele is a Hall
of Fame radio personality, successful entrepreneur, the best-selling business author of Rock to the Top: What I Learned about Success from the World’s Greatest Rock Stars, sought-after speaker and in-demand business consultant and media strategist. Readers’ Digest Magazine has called her one of the “35 People Who Inspire Us.” Successful Meetings Magazine calls her presentations “a pep talk from the deejay booth.” Talkers Magazine said she was one of the “100 Most Important Talk Radio Show Hosts.” And, AOL Business named her “one of the foremost experts on career networking.” Follow her on Twitter @daynasteele or visit www.daynasteele.com. She is currently working on her forthcoming book 101 Ways to Rock Your World: Everyday Activities for Success Every Day. strategymagazine.com | STRATEGY | 31
LIFESTYLE | Fashion
Biff & Muffy Chic Homage to the McGregor Womenswear and Menwear Winter 2012 collection which is inspired by the lifestyle and heritage of the eight American Ivy League universities. But it’s also a celebration of the brand that’s been synonymous with intelligent, colorful collections since 1921. The result: an authentic collection with a contemporary, preppy look, which puts the brand’s rich Anglo-American heritage center stage.
MENSWEAR Club House Gents
The varsity-inspired Club House Gents theme embodies both the competitive spirit of the match and the feeling of relaxation before and after the game, with heritage and modernity side by side in perfect harmony. Some of the more eye-catching pieces in this theme are the reversible college jacket in navy and white, the traditional lace-up rugby shirts, chinos in a range of colors, including the Club House colors of navy and bordeaux, and lightweight down jackets in cobalt and bottle green. The preppy feel of Club House Gents is further enhanced by a special line of accessories, offering items like a stormproof umbrella, reversible leather and silk belts, and woolen caps.
Fraternity Drive
The source of inspiration behind Fraternity Drive is communal living in the Ivy League universities. This nonchalant theme references the fraternity and sorority houses, which has been translated into a distinctly casual collection. The key items in this theme are the destroyed washed denims, washed corduroy jackets with preppy details like a navy-and-white lining, tartan washed flannel and Oxford shirts, and washed leather jackets.
Elegant Futura
Sophisticated use of color is one of the distinctive features of the Elegant Futura theme, where rich blue tones are combined with warm greys and contrasting lavender, pink and aqua shades. Italian luxury is the common denominator between the different pieces, such as the unstructured jackets in the authentic McGregor tartan, the slim-fit pinstripe suits, a quilted wool jacket, and the commuter jacket in luxury herringbone with plenty of practical, stylish pockets.
Castello Estate
Warm brown tones, camel, beautifully understated blues and deep green paint the Castello Estate picture. This theme offers 34 | STRATEGY |strategymagazine.com
LIFESTYLE | Fashion
CONTINUE.
extra-fine rib cord suits, herringbone cargo pants in the finest Italian wool, cashmere V-neck sweaters and, for the first time in the collection, a sophisticated taupe sheepskin jacket.
WOMENSWEAR Club House
The varsity-inspired Club House theme embodies both the competitive spirit of the match and the feeling of relaxation before and after the game, with heritage and modernity side by side in perfect harmony. Club House makes its mark with striking, sporty colors combined with subtle, timeless tones in pieces like tailored tweed blazers, long coarse-knit winter cardigans, knitted waistcoats with fur collars and heritage blazers in stunning green, pink and off-white tartan.
Homecoming
An important part of American university life is the annual ‘homecoming weekend’, which sees students and alumni come together for a weekend of sporting and other events. The colors and traditions of Harvard and Yale provide a rich source of inspiration for the Homecoming theme, and are combined here with McGregor’s own bold color palette of red, white and 36 | STRATEGY |strategymagazine.com
navy. Luxurious silk blouses, wraparound dresses and tunics with black-and-white polka dot and mille-fleurs designs give the homecoming theme its sophisticated feel, as do the sweat dresses and the super-soft hazelnut-colored leather bomber jackets. And making its first entrance into the womenswear collection is the ultra-feminine tailored duffel jacket in midnight blue tartan.
Ski Society
The exclusive Ski Society theme is inspired by the famous Dartmouth Ski Team. This top Ivy League team is known for its sporty and stylish traditions. In this theme McGregor’s familiar red, white and navy are combined with classic college colors to give the collection a chic, retro look. Ponchos, gloves and long scarves in Norwegian patterns, luxurious sporty woolen biker jackets, wraparound cashmere cardigans, cozy fleece blazers and beautiful shiny down jackets are the eye-catching items in this theme.
Sorority Drive
The source of inspiration behind Sorority Drive is communal living in the Ivy League universities. This nonchalant theme references the fraternity and sorority houses, which has been translated into a distinctly casual collection. The key items in this theme are the washed leather biker jackets, the cotton women’s car coat, wraparound dresses in washed silk with mille-fleurs prints, and some very feminine washed flannel shirt dresses.
LIFESTYLE | Beauty
Brush Be a Lady Tonight
Founded in Belgium in 1968 by Jean and Cathy Rennette, Olivia Garden has built a reputation for designing innovative, high quality products using state-ofthe-art technology. The company began by manufacturing wigs and distributing them with its own sales force to Belgian hairstylists. Today, the company manufactures a variety of product lines for quality hairbrushes, hair curlers, salon tools, accessories and apparel serving both the professional and consumer markets worldwide. Whether you have short, medium or long hair, nothing beats their quality thermal brush to help create perfect party hair. Olivia Garden has five different barrel sizes in their Ceramic + Ion Thermal Brush collection for any length or texture. The barrel for long hair is ceramic-coated for maximizing heat, and has large hexagonal holes for a faster blow-dry. The ion-charged bristles will dramatically cut down on frizz and fly aways, too,$29.95; available at www.oliviagarden.com.
Finest Example of Freshness and Glamour S&G Hampton Sun, the luxury sun and skincare product company that is known for more than just their luxury tanning oils and lotions, introduces their signature fragrance, Privet Bloom this spring. Developed in partnership with Ungerer & Company, Privet Bloom features top notes of lemon verbena and bergamot blended with white hyacinth petals and enriched with the crisp aroma of sea grass and fresh cucumber. The expansion into the fragrance category is a natural evolution for S&G Hampton Sun. “With our first foray into the fragrance arena, we wanted to develop a unique product that spoke to our core inspiration— the beautiful beaches of Eastern Long Island,” says Salvatore Piazzolla, President and CoOwner of S&G Hampton Sun. “In Privet Bloom we were able to capture the essence and energy of the Hamptons.” Named after the privet hedges synonymous with the Hamptons, Privet Bloom features the breathtaking aroma of privet hedges in bloom wrapped in a bouquet of delicate muguet, jasmine, linden blossom, gardenia, orange flower and dune rose on a backdrop of driftwood and sun-warmed musk. The result is a delicate scent that captures the purity and elegance of summers in the Hamptons, $49.50 - $65.00; available at Henri Bendel New York and www. hamptonsuncare.com. 38 | STRATEGY |strategymagazine.com
Makeup With Time
Aging is inevitable, but we can definitely take steps to slow down the process and encounter beauty at any age. What we put inside our bodies is just as important to what we do to the outside. Boost your intake of antioxidant vitamins by aiming for seven portions of fruits and vegetables a day. Not only do they help fight the effects of aging, but this also boots your skin to create its own sun protection, which will fight any UV rays that get through your sunscreen. Aim for at least eight glasses of water a day to keep skin cells plump and rejuvenated. And when using the right makeup colors and textures this too makes a difference. For instance, when using shimmer” on mature skin, the light reflective particles accentuate fine lines and wrinkles, therefore it’s important to use matte textured products on those areas, especially the eyes. For deep-set eyes, use light colors to open the eye, and use dark colors to deepen and contour. Touch Cosmetics’ Natural Eyes Eyeshadow Compact comes complete with all the right textures for an enhancing natural look, $28.00; available at www. touchcosmetics.com. A silicone based foundation primer is also vital before applying foundation. Skin will be silky smooth without clogging pores and this allows for a smooth even application. Lastly, “Go for the Glow.”Add shimmer to cheeks for a youthful radiant glow, Touch Cosmetics’ In-Dispensable Angle Glow, $21. Always remember, you’re worth all your efforts, so here’s to a healthy beautiful you. TEXT BY NANCY RAND
Smear With Oil
Bio-Oil is a versatile, cult skincare remedy from Cape Town, South Africa, and brings PurCellin Oil and their promise of healthy, flawless skin stateside. A veritable panacea, this formula treats a multitude of skin concerns: prevents and minimizes scars and stretch marks, as well evens skin tone, nourishes aging skin and intensely lubricates dryness and flakiness through rapidly absorbed dry oil that leaves no residue. Bio-Oil delivers vitamins A and E, Calendula, Lavender, and Rosemary oils and Chamomile extract through PurCellin Oil, which is inspired by the preen gland oil of ducks. Used in burn centers across the globe and one of the top pharmacy purchases in the UK, Africa, and Australia, Bio-Oil contains no preservatives and is suitable for all skin types, $11.99; available at select Walgreens.
Brighten the Complexion
With bio-fermentation and physics as its heritage, La Mer’s Radiant Infusion’s powerful ingredients—ionizing sea salts, Radiant Ferments, and super antioxidants—are suspended within an interactive sea gel. The mesh-like gel is said to work with their exclusive Deconstructed Waters to expand and contract as necessary, diving into the landscape of the skin where needed. As the tonic is smoothed over the skin, the gel texture transforms in to a liquid, yielding a flood of activity, energizing the skin and revitalizing the complexion. The blend of vital ingredients in the gel also minimizes pores,$90; available at Saks Fifth Avenue and www.lamer.com.
strategymagazine.com | STRATEGY | 39
LIFESTYLE | Leisure
Liquid Assets Wine, like all art, has an intrinsic value above that it fetches at auction. Unlike most investments, when you liquidate wine, you can do it through the actual depletion of stocks, that is, you can drink it. The joy that comes from sharing a well-aged wine with friends cannot be quantified, and this is doubly true for a wine that has spent its entire life in your cellar waiting for this very moment.
Investing in alcohol can be a tricky proposition and even the financial wizards who treat Wall Street as their personal piggy bank can get their fingers burned when it comes to wine. Like all investments, you can spend your time studying historical trends, auction values, and sales data to try and get ahead of the curve, but the market is pretty capricious at the best of times. According to Rhette Gadk, Wine Director of Bounty Hunter Rare Wines, it’s atricky investment to judge in comparison with stocks or property, “There are more legalities involving the sale, resale, and transportation of alcohol than just about any other consumer industry.” 40 | STRATEGY |strategymagazine.com
...you can always turn to a wine investment company...
If you want to sell a stock, you sell a stock. To sell any large amount of wine, it usually involves some sort of auction service, most of whom command a premium beyond what typical investment or real estate middle men charge. It can throw off an apples-to-apples comparison pretty dramatically. “I would say upwards of 90 percent of our clientele buy wine to drink or to put it another way, at least 90% of the wine they buy is to drink (even if they do speculate from time to time). The ability to flip certain wines off of mailing lists can be a strong allure for collectors, but we deal largely in wines whose purchaser will eventually open them his or herself.” With countless headlines about bottles bringing record breaking prices in the auction rooms of Christies and Sotheby’s, it’s easy to forget that there’s a downside to wine investment, which can make your money disappear quicker than a Chianti down the drain. Wines, which promise much, can fail to deliver, leaving demand low and the prices even lower, as in the case of the white Burgundies of the late 90s. Collectors and amateurs alike were stung when their wines aged prematurely and rather than keeping them in their vaults for the value to increase, they were greeted with articles advising them to drink them as soon as possible, wiping out millions of dollars in investments. If you can’t devote the time necessary to familiarizing yourself with the intricacies of the wine market, then you can always turn to a wine investment company, in the same way the wealthy can turn to a knowledgeable broker, but as in all walks of life, promises are quickly made to relieve you of your money, but not always delivered. We asked Rhette Gadke how to go about finding a reputable investment company. “I’d hook the pitchman up to a polygraph! Money can be made in wine investments, but it’s as risky as anything else—maybe more so given the fact that it’s a physically volatile product that by definition doesn’t allow itself to be inspected without destroying its value. Throw in no small amount of fraud, counterfeiting, and the like, and it’s caveat emptor. No doubt, there’s money to be made if you play the game right, but I wouldn’t bank the kids’ college fund on a Bordeaux futures campaign. I would say that finding a wine
merchant you trust is paramount whether your interest is personal, financial or both. There’s plenty of quicksand to be had with fly-by-nighters who have no history of honest business. It’s like anything else you’d spend money on—do your homework, ask questions, and trust your gut—not just on what you’re buying, but on who is selling it. You can figure out pretty quickly who is interested in a one-time sale as opposed to a long-term client relationship. It’s probably the single biggest decision you can make if you’re serious about wine. Are wines with outrageous price tags worth it? There is no way to judge the answer to this. An analogy: Gadke has a client that makes over $20,000,000 a year. If this person works the usual 240 days a year, eight hours a day, his hourly rate is$10,416.67 an hour. For this person to pay for a $1000 bottle of wine, he only has to work about six minutes. If you make $20 an hour, you have to work 50hours to afford the same bottle of wine. For those in the $20 an hour range,$1000 bottle of wine is the ultimate extravagance. For those in the $10,000 an hour range, it is no more a stretch of the budget than a $2 bottle of wine. In fact, since there are so few good $2 bottles of wine, the millionaire is actually getting a bargain. The cost of the wine may well not be an indicator of the quality of the wine. This is especially true in New World wines where the main factor in the pricing of the wine is the demand. Many wines become chic, propelled by the press who are too afraid or ill informed to speak a dissenting opinion. These wines often sport huge price tags that place them in the highest leagues of World Class wines, without the wine itself being that good. Since money is no guarantee of taste, these wines sell briskly, increasing their value out of proportion to their quality. In fact, I would go so far as to say this is the case for the majority of New World wines that find themselves selling at the highest prices. The cost of advertising
It requires a well-trained palate and great deal of confidence to weed out the pretenders from the truly great wines. and promotion can necessitate a retail price far above a wine of similar quality with fewer overheads. Simple touches, such as gold embossed labels may add several dollars to the wine, before any wine is even added to the bottle. It requires a well-trained palate and great deal of confidence to weed out the pretenders from the truly great wines. Time often tells, and those chic and trendy wines rarely keep their value over the long haul. The bottom line is that wine as an investment is so risky as to only make it worth while for those that would be as content drinking the wine at maturity, as selling it. To make matters worse almost all localities have stringent laws relating to the commerce of alcoholic beverages that may make selling a collection all but impossible. Want some professional opinion? There’s a Napa-based winery called Kapcsándy that appears to have all the right pieces to be a big player. The founders are Bordeaux importers and experts with amazing standards and expectations. The industry is seeing a huge amount of overall interest in 2005 red Burgundies from both speculators and drinkers—it’s a can’t-miss vintage from a notoriously inconsistent region. The industry has also noticed a resurgence in demand for top-flight Italian wines from marquee regions like Barolo and Brunello. People are paying top dollar for the good stuff, and they should be; it’s worth it.
TEXT BY GORDON COASTES strategymagazine.com | STRATEGY | 41
CONFERENCE CONCIERGE
Where to Stay; Eat; and Go in Atlanta French provincial meets southern hospitality at the spa and race track?
Attending a conference in Atlanta is sparking much attention these days. Even seasoned spa goers will feel like they are in virgin territory when walking through Château Élan’s 3500 acres. The view while driving through the only winery, resort, and spa in Georgia is impressive yet unobtrusive. The founders, Donald and Nancy Panoz, and the buildings’ designers were careful to minimize disruption to nature when preparing for the construction of Château Élan, and it’s obvious to visitors as they walk through the nature trails and around the golf courses. A unique experience is encountered, especially in the Georgia suburbs—it is not only a spa and resort, but also a golfer’s paradise, equestrian show center, tennis center, award-winning full-production winery, and vineyards all within walking distance of each other. Their $1.5 million renovation to the Spa at Château Élan, encompassing a makeover of all guest suites at the Spa, the Fleur de Lis restaurant, two spa library areas, gift shop, front desk and lobby was completed in October 2011. This second phase completes a comprehensive, $3 million transformation to the Spa, which includes improvements made last year to the Spa’s 35 treatment rooms, relaxation areas and couples’ rooms. “We are thrilled to unveil our newly renovated luxury spa to guests as we approach the 20th anniversary of one of Atlanta’s premier destination spas,” said Doug Rollins, vice president of sales and marketing at Château Élan. “These improvements provide the ultimate relaxation experience for our guests where they can experience total luxury and enjoy the finest quality in spa services.” A subtle theme throughout the spa is the feel of water. Restful, tranquil swirl patterns are found in the carpet, wall coverings and furniture. Calming shades of blue, sand and sea glass are dominant throughout the rooms, lobby and waiting area. It is impossible to leave their spa without achieving a sense of complete relaxation. From the waterfall showers in the women’s locker room, to client-controlled air conditioning in the private treatment rooms, the spa goes to every extent to insure blissful comfort. The spa’s à-la-carte services include nail care, hair care for men and women, makeup application, and full-body waxing. Massage therapy at the spa can range from 25 to 80 minutes, and the therapists evaluate 42 | STRATEGY |strategymagazine.com
the client’s stress level before beginning the session. There are also a variety of different body exfoliation and body wrap treatments. Skin care treatments range from skin-refreshing and rejuvenating facials to back treatments and peels. A licensed esthetician will assess the client’s skin and advise the best treatment program at the spa and follow-up at-home regimen. For facial treatments, the spa chose d’vine as their aligned skin care providers. The spa has designed a special Private In-Suite Island Sojourn modeled from the French Caribbean rituals of St. Barth so guests can have a private trip to the Caribbean from the privacy of their own room. The three hour and 25 minute treatment in the guest’s room includes a body exfoliation with coconut and papaya, a body pack with alumina and cucumber mousse, a facial and décolleté treatment, a pampering body massage, and an island cocktail. Within the spa, there are fitness and wellness activities to compliment the relaxing spa atmosphere. There is a gym, which can be used by resort inn and spa guests, even if they are not staying overnight. There are also personal training sessions and workout classes provided seven days a week. A co-ed whirlpool, indoor resistance pool, steam room, and sauna complete the spas relaxing amenities. Completely separate from the resort is a set of 14 rooms within the spa facilities that spa guests can reserve during their treatments. Each guest suite is designed to offer a soothing, romantic experience and includes new upholstered beds with a rolled head and footboard appointed with nail head trim. Renovated bathrooms feature a rich color palette of watery blues and peaceful greens with tranquil glass mosaics. Guest can choose from a
two-person pedestal Airjet tub or a couples’ Raindance waterfall shower each with an invigorating hand shower. In another building, walking distance from the spa, is The Inn. At first, the outside can be deceiving with its small and quaint design. But stepping through the doors, guests will see the hidden extravagance and grand dining rooms of the resort. The Versailles dining room, one of eight restaurants at Château Élan, sits on the bottom floor and reflects off the glass ceiling. The inn is also a great meeting place for conferences and weddings, with the 25,000 sq. ft. high-tech Conference Center. On the grounds, along one of the hiking trails, there is also an area for team building activities. For visitors who come to take advantage of the golfing experience while conferencing, there are three championship golf courses and a Nine Hole Executive Walking Course for quick games. A 276room Four Diamond Inn and 10 Golf Villas with full kitchens provide easy access to the green. During the off-season, Château Élan provides free golf for women so they can learn the game. Whether your conference is scheduled for two days or one week, Château Élan Winery and Resort is its own little country ready to provide you, the guest, with optimum hospitality. In fact, the Panoz’s hotelier discipline and high-standards guarantee an experience where nostalgia remains active days and years after visiting their grounds. Chateau Élan’s spa and resort experience would not be complete without a visit, or several visits, to one of the spas many restaurants and the winery. With eight specialty restaurants, including French, Mediterranean, Bistro, and Southern regional, it is impossible to choose which to try first. But the most
unique of the group is Paddy’s Irish Pub, which was built and transported from Dublin in 1997 to guarantee its authenticity. Paddy’s Fish & Chips, which they make with beer-battered Cod filets, had a savory-soft inside not typical of Cod. The breading was crispy and created the perfect contrast with the Cod for a blissful experience. But the meal wouldn’t have been complete without the authentic Irish ketchup, of which I begged to purchase a bottle to take home. It had the perfect touch of vinegar to spice up the seasonedwedge fries. For a slippers and robe dining experience, the Fleur de Lis inside of the spa serves a seasonal menu for breakfast, lunch, and dinner. The Pulled Chicken Crepes with sautéed peppers, onions, asparagus, and garlic ricotta were light, without sacrificing flavor. The garlic ricotta complimented the soft warm crepes and held the flavor of the sautéed peppers and onions. So even when dining in the spa in your rode and slippers, the cuisine is far from being laid-back. As much care is put into preparing the spa lunches as is put into dinners at the Versailles dining room. As the largest wine producer in Georgia, the winery has a tough reputation to live up to. The 75 acres of vineyards contain Vinifera Chardonnay, Sauvignon Blanc, Riesling, Viognier, Cabernet, Chambourcin, Sangiovese, and Merlot grapes. In total, their annual production is about 20,000 to 25,000 cases a year. When the Panozes decided they wanted to develop a vineyard in Georgia, they extensively tested the soil and climate. They found that it was similar to California and France and decided to venture into wine producing. The full-production winery has self-guided tours and tastings, as well as occasionally guided tours and tastings. strategymagazine.com | STRATEGY | 43
CONFERENCE CONCIERGE
CONTINUE.
At the end of August, they hold their annual Vineyard Fest to celebrate the grape harvest. Wineries from around the world participate in the festivities, and there are seminars on wine and food pairing conducted by their executive chef. Interested in hosting your next conference at Château Élan? STRATEGY sat down with Doug Rollins, their vice president of sales and marketing to discuss details when conferencing at Château Élan. STRATEGY: We understand Château Élan specializes in team building activities; what are some of the activities that can be coordinated for employee motivation? ROLLINS: Whether the goal is to reward hard working employees, motivate your sales force, increase customer awareness and traffic, or entertain VIP’s, we will meet the goals set for every company’s target audience with the excitement and thrill of the greatest show on four wheels: the Skip Barber Racing School. Through a variety of racing and high performance exercises, with Formula Race Cars or Mazda Speed MX5 Pro Cup Race Cars we can develop a comprehensive, unforgettable program from one-half to three days for groups of 10-200. Other activities consist of experiencing golf after dark. Teams will play eight holes in a scramble tournament format on our Par 3 walking course. The longest shot is 115 yards so even the novice golfer can participate and best of all, no golf experience required. All teams will be given “nite lite” golf balls, golf clubs appropriate for night golf, use of flashlights, tournament support, shuttle service from last hole to first hole, and glow accessories for each golfer. Château Élan has also aligned itself with lapdog, inc., a Corporate Development and Teambuilding firm located in Gainesville, Georgia. As a result of this alliance, Château Élan is proud to offer exciting, innovative experiential programs designed to help companies reach their potential. lapdog, inc. helps teach teams how to transform ordinary performance into exceptional outcomes. STRATEGY: Which spa services can be offered for large groups? ROLLINS: Traditionally, our 50 minute massage and facial services are best. 80 44 | STRATEGY |strategymagazine.com
minute services can be great as well depending on the size of the group. Body wraps and body exfoliation are wonderful for smaller groups. We usually discourage nails to groups in general (especially large groups)—trying to push the groups into more luxurious services. Large groups would constitute of 15+ people. Small groups could be anywhere between five10 people. STRATEGY: Can you provide a sample schedule? ROLLINS: The schedule depends on the number of people, the number of services, and the preferred time frame of the group. But, in the past for groups we have had people start in the morning and ending with lunch or vice versa. If they have two services or more the spa would need a more flexible time frame and for lunch, it would be more of a lunch at their leisure, then a scheduled group lunch. Sample Schedule: 6:00 AM – Sunrise Stroll through the vineyards 7:30 AM – Breakfast in Fleur de Lis 9:00 AM – Fitness Assessment 10:30 AM – Château Signature Massage 12:00 PM – Culinary Studio Organic Hands on Cooking Luncheon 3:00 PM – Château Pure Oxygen European Facial STRATEGY: What are the group room rates at The Inn and Spa (what if group wants to reserve all spa rooms?) group rate for activities within spa/ outside spa? ROLLINS: Rates vary throughout the year. The Inn group rates range from $159$239 and the Spa is from $350-$500 per night. Recreation throughout the resort ranges from $75.00 per person up to $400 per person depending on activity. STRATEGY: What is the suggested time frame needed to plan a conference and/ or an employee motivation event? ROLLINS: Depending on the size of the group, you can plan a conference a week out. If the group is larger it takes more
time to coordinate various staff schedules. The more you plan ahead on the motivation side, the more you will gain out of the program. STRATEGY: What makes Château Élan the “right” choice for conferences in Atlanta? ROLLINS: What we hear most from our repeat clients is the Staff here at Château Élan really “Gets Meetings” and understands what a particular group is trying to accomplish during their program. Yes we have a beautiful IACC certified conference facility and beautiful guest rooms, but it is how the people at the resort make you feel that truly makes a meeting or conference memorable. For more information, visit www.chateauelan.com.
ELEVATOR PITCH
Stating the Facts
Melora Hardin, the director, producer, actress, and singer believes there is a point in your career when you think ‘nice people, or not at all.’ STRATEGY: Women have lots of phases and characteristics. Tell me about Melora, the daughter; the wife; the friend; the mother; and the artist. HARDIN: The daughter: I am very lucky. I had amazing parents and they are exceptional artists on their own. I am very fortunate that I had two people in my life that at an early age supported me as an artist. They helped me become a good craftsman and most importantly made me understand the business side of what I was getting myself into. The wife: I am lucky here, too! I am very fortunate to have an amazing partner and to have married my soul mate. He encourages me to be the best person I can be. The friend: I have very amazing people in my life. I am not one of those people that have lots of friends; instead I have a few friends yet they are all brilliant. I am thankful I have my wonderful female friends, and I also have male friends; however, my relationships with my women friends are beyond important to me. We are full of curiosity for each other and take joy in each other’s lives. The mother: I have an ability to completely love my daughters and still give them their space awa yfrom me yet still connected to me. I am also fond of my curiosity with them. The artist: I am an ever-exploring individual and enjoy the process of being an artist. I consider myself an eternal student of life, human nature, and my nature. This determines my decision on whom I am. STRATEGY: Describe the essence of an artist. HARDIN: I think you are born with the task of being an artist. People can become good artists without having that special gift, but I don’t think you can become really great without having that seed. I do believe everyone in this Earth is an artist, some people, more than others, but I do be-
lieve we are all artists in a certain way. We all have unique abilities. There are people who are meant to make it their life and that is a different kind of person who would choose to be on that path. STRATEGY: When was the last time you said you did a stupid thing? HARDIN: All the time! My daughters decided to decorate the staircase. So, there were ribbons down the banister andthen they decided to decorate me! The finale was a dance we coordinated together, but boy, do they love to tie scarves all over me. STRATEGY: If you were to describe yourself as a 1950s performer versus a woman of today, who would you be from each era? HARDIN: I would start with someone like Katherine Hepburn, Doris Day, and Judy Garland. Barbra Streisand is one of my favorite icons. Glenn Close, Meryl Streep, Judi Dench, Helen Mirren. Oh and
Madonna! She is pretty cool and has the power to change the world. STRATEGY: If you were given the life task of rescuing, who or what would you spend your life rescuing? HARDIN: Children. Surely children. They are heading this world and it is a very complicated world. There are so many wonderful little souls out there to love and who need love. I want the opportunity to give back to the world, which is really what we are all here to do. It is pretty hard to give back if you don’t give back, so I would surely say rescue and bring love to children by many means; via harmony, food in their bellies, there are so many ways to love. I love the Raffi song my kids used to listen to: All I really need is some sun on my face, food in my belly, clean water to drink, and love, love, love. STRATEGY: I am sure you have heardthe phrase, “everyone is looking for something.” strategymagazine.com | STRATEGY | 45
ELEVATOR PITCH
CONTINUE.
What is your something? HARDIN: Understanding and connection. STRATEGY: Which question do you ask yourself and you are not able to answer? HARDIN: The question regarding discrepancy of aging and gaining wisdom as you get older in unanswered for me. It would be nice if we were born old and got younger as you gained more wisdom. Isn’t the circle of life incredible? You usher your children in and they usher you out. STRATEGY: What makes you feel good? HARDIN: I love spending time with the people that I love in an un-pressured situation… sitting in the warm sun and eating good food, and enjoying the essential pleasure of life together. STRATEGY: In your opinion, which is the hardest career to choose? HARDIN: I think my career is a pretty hard one. I would have to say if you could do anything else and be happy, you should do it because there are many, many challenges
that come with this career. You should only be doing it if there is no other life you can imagine for yourself. STRATEGY: If you could turn back the clock of time and give yourself one adult lesson for your childhood, which message would you choose? HARDIN: Be the biggest and brightest light you can be at all times regardless of what people feel. STRATEGY: Hollywood versus New York City? HARDIN: Hollywood is for me. I am a very big city person who needs culture; I have a metropolitan mind-set. My goal would be to have my home in Los Angeles, but have a place in New York City too. When Indians first came to New York, it was built on quartz crystal. Quartz crystal has so much energy in it, which is why the City is so buzzy. Indians used to go to New York, get their buzz, their energy, and just leave. They could not settle there because it was too much buzz. I love it and people crave for that, but I don’t think I can be there constantly all the time. A part of me enjoys the space in LA. The fact that I can
have a nice home and have a yard and I can look down on trees is great. But when I go to New York it is tiny; even the real palatial homes are different. It is a different lifestyle and I prefer to have the two options open, plus I crave the balance. I need the balance. STRATEGY: Which is the worst addiction human kind can have and how can it be stopped? HARDIN: Greed and therefore the byproduct of being disconnected from each other, themselves, and the world is the worst in my book. The change has to occur with the individual person. We all have to strive to connect to the deeper parts of ourselves that connect to the world, our environment, and its people. This will bring birth to compassion, understanding, and tolerance. STRATEGY: What can change our country in a positive way? HARDIN: When I was 20 years old, I went on a backpacking trip around Europe. I had a euro pass and I spent three months there. I really feel students should be handed a euro pass or a plane ticket and have them travel the way I did. I strongly feel we would have much more understanding. There would be no war. People would see and witness good people in all sections of the Earth. Most of the conflict that happens between people is because of politics and religion. When you get placed into a country that influences you to meet different types of people from different walks of life, you will see the goodness that is available for offering. You will soon realize there are good people everywhere. It is unfathomable that our country doesn’t leave our backyard. And, they don’t have a concept beyond television. If people would travel and reach out to others, this can possibly change our country. HARDIN: FYI: You asked great questions in my interview. I hope I answered the questions correctly; they were surely not the typical questions and I really look forward to the final piece.
TEXT BY MAVIAN AROCHA-ROWE 46 | STRATEGY |strategymagazine.com