Wednesday, December 30, 2009

You're Better Than That!

Most of us do way too much negative self-talk. I'm not good enough. I'm bad at math. I'm a terrible public speaker. I'm not organized. I'm not qualified. And on and on and on. So, there's this quote that basically says, "whether you think you can or you can't - you're right." You'll just continue on being unable to do whatever it is that you've convinced yourself over the years that you can't do.

So, why all of this negative self-talk? Isn't it bad enough that others are going to say bad things about you? Even those things don't need to be true. They're only true if you make them true. If not, then it's just silent noise.

A consultant once asked me what one of my worst qualities was as a manager. I told him that I had huge stacks of paper in my office that gave me anxiety over worrying that something important wasn't getting done. Now pay attention to what's next because it's so simple and so obvious. He told me to get a piece of paper and write down the exact opposite of my negative self-belief. So, I did.

I don't keep huge stacks of paper in my office and I don't have anxiety because I'm doing the important things.

Just thinking about that felt so good. What a load off! Next, he told me to write down 10 ways to make that new, positive statement 100% true - and I did.

Since then, I don't keep huge stacks of paper in my office anymore. I just work the best ideas from my original 10-point list. The beauty of this very-simple idea is that it works on just about everything. I joke that the only thing I can't make it work on is being taller. That just is what it is. But it does work on most other things.

So, every time you find yourself saying something negative about yourself, remember that you're better than that. Write down the opposite and make a 10-point list that will help you make the new truth a permanent reality.

You are good enough. You are good at math. You're a great public speaker. You are organized and you are qualified. You do not keep huge stacks of paper on your desk (and neither do I). This paradigm shift will change your life. You will find amazement in all of the things you're good at when you give yourself a chance to be great.

Monday, April 27, 2009

Build Your Marketing Machine

A lot of companies don't understand that in order to excel in business, they can't just be the company that they are. They also can't simply be a company that does marketing as a part of business. For a company to excel - NO - for it to dominate in business, it must transform itself into a MARKETING MACHINE. The marketing machine exists to generate an over-abundance of new customers. Everything that it does serves the singular purpose of creating new customers. All of its working parts need new customers in order to continue moving. New customers are the very fuel that powers the machine. The marketing machine doesn't care what industry it is in. It doesn't care what kind of widget it makes or which services it provides. It only cares about doing it in a way that creates new customers and keeps them coming back for more.

Companies who want to be marketing machines must completely change the way they view themselves and the way that they do business. These companies can no longer see themselves simply as the company that they are. Instead, they must become a marketing machine that does _____________. For example, a medical office can not simply view itself as a doctor's office. Instead, it must become a marketing machine that sales medical services. Hair salons are no longer just hair salons. They must become marketing machines that sale beauty. If you look at the top companies in any industry, you will likely find a tremendous marketing machine. Nike, Adidas, Coca-Cola, Gatorade, McDonalds, NFL, NBA - just to name a few.

As you read this list of top-tier companies, you're probably thinking, "sure, but these companies spend millions marketing their products. I can't spend that kind of money." Agreed. Maybe you can't spend that kind of money. So, let's make an agreement about spending right here. You decide how much you can afford to spend on marketing your product or service. Then, think about how much you can afford NOT to spend money on marketing. Once you have spent adequate time on the money, get past it. Marketing is not ONLY about spending money. That's small thinking. MARKETING IS ABOUT EVERYTHING THAT YOU DO. That's why you're a marketing machine.

You market your company by the way you treat customers. You do it with the packaging of your product. Your pricing structure is part of your total marketing presentation. The neatness of your uniforms and the cleanliness of your business location markets the company. The way you say things markets your company. Your company name markets your company. Your colors, designs, and logos market your company. The quality of your personnel markets your company. Marketing must be built into everything that you do in your business. In fact a marketing machine never makes a move without considering the impact on the customer, especially how it will effect the inflow of new customers.

The marketing machine has certain internal rules that it never violates:

1. Everything it does has a purpose - to create a new customer.
2. Every single piece of written (marketing) material has a killer, customer-focused headline.
3. It always answers the customer's question, "What's In It For Me?" (WIIFM)
4. It never spends money on anything that is not working to generate new customers.
5. When budget cuts must be made, it NEVER cuts the marketing budget.
6. It always knows how customers heard about it and why they chose it over the competition.
7. It always does more of everything that works to generate new customers.
8. All of its working parts (employees) are a vital part of the sales team.
9. It never forgets its historical numbers and its current targets and benchmarks.
10.It unconditionally loves its customers.

Because it is a machine, the marketing machine makes everything automatic, only auto-drive happens in over-drive. Policies have a built-in customer focus. Procedures are created in a way that saves the customer time and encourages the customer to buy from you more often, and certainly instead of the supposed competition. Training is done fanatically so that customers receive a consistently excellent experience and consistently excellent products. Customer service is more important than dollars and cents. Therefore, employees are taught and encouraged that customer satisfaction is the minimum acceptable outcome - that customer enthusiasm is the pinnacle of the customer service plan. That's right - the customer service plan because in the marketing machine, everything is written up and standardized - especially the expected enthusiastic customer experience. When the marketing machine senses or is alerted to a potential dissatisfied customer, it takes immediate action to turn that customer into a source of future fuel that will enthusiastically tell others about their excellent experience.

Finally, once the marketing machine builds up a full head of steam, it becomes a locomotive that is ready to treat illnesses, give hair cuts, repair broken pipes, replace roofs, personal train clients, make hamburgers, or whatever else it does along with marketing. The marketing machine will dominate its industry because it is first and foremost a marketing machine that exists to do just that.

Is your company a marketing machine?

Monday, April 20, 2009

Are you a Time Cyclist?

One of the hidden costs of business is the cost of doing something inefficiently. You may have a process that gets the job done, and getting the job done feels good. Most people love to complete tasks, but a successfully completed task is not the ultimate measurement for good work. No, the ultimate measurement of good work is when the task is done right with the least amount of steps, people, and other resources needed to do the job. For the purposes of this article, we will refer to efficiency as just that - using the least amount of steps, people, and other resources necessary to do the job right.

So, what is a time cyclist? This is someone who is concerned with doing everything as efficiently as possible. When a task can be done with fewer steps, it just make sense that it will take less time. Just the same, when fewer people need to be involved in any process, the total process time will be reduced because one person is more efficient that two or more. Finally - fewer other resources. These could be office supplies and other materials, software programs, computers, documents, as well as a number of other resources, depending on the particular task. If a new customer can fill out one form to obtain credit instead of two or more, wouldn't it make sense that the total time of filling out a credit application would be reduced? Doesn't it also seem to take less time by using Microsoft Outlook to send email, maintain calendar items, and organize important tasks instead of using your ISP for email, a desk calendar, and a paper to-do list?

Minimizing all of these categories of efficiency reduces the total Cycle Time of all of your company's tasks. And, considering the old adage that "time is money," doesn't it make sense that you would want to reduce the time of everything that you and everyone in your company does? Of course it does! If you're able to help more customers in a shorter amount of time, you make more money. If you're able to do more work with less employees, you make more money. If you're able to get more work done with fewer materials, you make more money. That's the idea of being a time cyclist - to make more money for your company by doing things better (more efficiently).

You should evaluate all of the processes in your organization or business unit for inefficiencies. Your aim is to reduce the total number of steps needed to do each task as well as the total number of people that need to be involved with each task. Everywhere possible, you need to consolidate tasks, remove wasteful steps, and eliminate unnecessary resources. Look at each step from the customer's perspective. How will those steps effect your customers? When your customers see you getting more efficient, they will be WOW'd because they will appreciate you taking less of their time at the same time that you are earning more of their money.

When evaluating processes, write up all of the steps, with great detail, and include the name of the job title who does each step. It's very important that each step goes in order of the person doing the task. In other words, it is very inefficient to go from one person, to another, and then back to the first person, and then to a third person, and then back to the second person, and so on. The most efficient way to do any job is to not only minimize the number of people involved with the task, but the number of times each person has to handle something as well.

Imagine that you're a customer who is calling your bank to inquire about your current savings account balance (because you haven't figured out yet that you can do this online) and the person who answers the phone transfers you to someone else, and then that person transfers you to their manager who can't access their computer, so the manager transfers you back to the original person who answered the phone because he can view his computer fine. Don't you feel like a frustrated pin ball. Wouldn't it have been so much better if the first person that answered the phone would have just answered your question? Absolutely!

And this is the job of the time cyclist - to find inefficient processes and fix them so that customers are happy and the company reduces wasteful costs that lead to greater profits. But, like I said, these are often the hidden costs of business. Don't count on employees to tell you when something can be made easier - especially if that means making their position obsolete. Also, don't expect them to take the time to speak up when something isn't working right, because they are spending too much time working around the problems (insert the "Sharpen the Saw" story here. Google "sharpen the saw" and you can read this story on efficiency.).

So, become a great Time Cyclist and you will save your company a tremendous load of money. This could even be the difference between an overall profit or loss to some companies, and it certainly will set you on a path to breaking records.

Sunday, April 19, 2009

Get Promoted!

If you are the top manager in your organization, then share this information with everyone that works under you. However, if you are someone who strives to move up the organizational chain, then this article is for you. You may not be know this, but your managers want you to know this information (unless they're not doing their job effectively and they are worried about you taking it). Bad managers aside, your manager wants and needs you to work at a higher level - a level that makes their job easier and one that fits well inside of the organization. To get yourself promoted, you have to stand out from the rest of your co-workers and do what most of them will not do. You have to get noticed and make yourself known for being innovative, making good decisions, and for being someone who really cares about the business. You can do this by following these directives.

Set Personal Targets for Yourself
Many companies don't set targets for each individual position in the organization. You will though, and it will pay off. Figure out what your average production / performance has been in the past - daily, weekly, and monthly. Then, set yourself a high but attainable target and post that target at your workstation. You already know about business tracking systems, so you need to set one up for yourself. Create a graph of your production and track it weekly and monthly, at least. Your co-workers may be happy to show up to work and collect a pay check, but not you. You're going to set targets, track them, and work like crazy to reach them.

Recommend New or Modified Policies and Procedures
Everyone else does their job without really going the extra mile for the company. You will get promoted if you recognize outdated or flawed policies and procedures and you recommend a better way to do them. These kinds of policies and procedures exist in EVERY organization. You just have to keep a close eye out for them and don't hesitate to make suggestions to your manager.

Dress to Impress
If your company has a strict dress code, then it's important that you always adhere to that policy. However, if your company allows you to dress in any kind of business attire, then always dress to impress. A good rule-of-thumb is to be the best dressed person you meet each day. You're not dressing to intimidate or because you think there's a fashion show in town. Instead, you dress well enough to show your managers and the company that you care about your job and you respect your managers enough to show it. As part of this, always maintain a very neat and well-groomed appearance. Dressing to impress and being neatly groomed will get you noticed.

Stay Out of the Gossip and Rumor Mill
All companies have employees who spend far too much of their time and energy with gossip and rumors. Good managers hate this and you must avoid it. You need to be known as someone who rises above such things. If a co-worker wants to talk to you about rumors or gossip, don't hesitate to tell them that you would rather not get into it. Just stay out of it.

Write up Your Post
The best way to move up in the organization is by writing up your current job so that it can easily be given to someone else. With a clearly written job description that includes all of the steps that you take to do all of your daily tasks, you can even train your replacement. This makes your manager's job easier because she won't have to spend time in training. It also shows your managers that you think about the business as a whole and not just about your business unit. They will know that whatever position you hold, it will be a high-performing and efficient position, that will be a success for the organization. Writing up positions is the job of the manager, so show your company that you are willing and able to take on that role.

Always Follow Policy
The surest way to not get promoted is to not follow policy. Having to be warned and written up will stick with you. So much of company policy is just common sense. Get to work on time, clock out for lunch breaks, don't falsify time-keeping and other records, etc, etc, etc. Policy exists so that managers can focus on the core functions of the business and not have to waste time baby sitting the staff. As a person who wants a promotion, you won't need baby sitting, but in spite of the common sense nature of policy, others surely will and you will be their boss someday.

Be a Super-Nice Person
Speaking of common sense, you need to be aware that people want to be around those who they find to be interesting, fun, and nice. Like it or not, it really does matter if people don't like you. When you're not likable, your probably also not promotable. This is quite simple. Smile a lot. Give professional compliments to others. Shake peoples' hands. Tell people when their doing a good job. Say nice things about your co-workers to their managers and say nice things about your managers to their managers. Being likable is a common sense principle of influence, so use this to your advantage and be a nice person.

If you do these things, you deserve a promotion. If you do it and you find that it's not working, it's probably because you forgot one simple thing - be sure your managers know these things about you. Show them your graph. Give them the write-up of your post. Submit a summary of policy you recommended at your next performance review. If you've done these things, you're dressing to impress, you're a super-nice person, and you clearly follow all company policies, then all that's left is to ASK. Remember: you have to ask for the things that you want, so ask for the promotion. If you don't get it right then, you will surely plant the seed in the minds of your managers and that seed will grow until you do get promoted.

Tuesday, April 14, 2009

Qualities of Great Leaders

Great leaders have many qualities - so many that I can't possibly list them all here. You will likely think of others. Regardless, I want you to read this list and evaluate yourself on each one. Be brutally honest with yourself and work on the areas where you are not as strong. Most importantly, build on your current strengths. These are the things that probably come naturally to you. Finally, if you find that you are the exact opposite of any of these, consider how being so detracts from your overall leadership ability.

Leaders are skillful and persuasive speakers.
Leaders have a positive attitude that is contagious.
Leaders motivate others.
Leaders have a vision of greatness.
Leaders are compassionate.
Leaders are trustworthy.
Leaders persuade rather than coerce.
Leaders empower others to make good and innovative decisions.
Leaders are ethical.
Leaders are honest.
Leaders have unyielding drive.
Leaders never show pettiness, spite or vengeance.
Leaders encourage innovative thinking.
Leaders control their temper.
Leaders are consistent.
Leaders make tough decisions.
Leaders set and reach goals.
Leaders are self-confident.
Leaders are dynamic and energetic.
Leaders frequently praise others.
Leaders plan ahead.
Leaders treat others as equals.
Leaders show respect.
Leaders never gossip.
Leaders never speak badly of others.
Leaders delegate to accomplish more.
Leaders know that good people are the key to success.
Leaders care about their staff.
Leaders identify and build on each person’s unique talents.
Leaders place strengths ahead of weaknesses.
Leaders instill confidence in others.
Leaders want to inspire others.
Leaders reject average.
Leaders listen at least as much as they talk.
Leaders give credit to others, even when it sometimes belongs to themselves.
Leaders take responsibility for problems.
Leaders focus on solutions more than problems.
Leaders solve problems before they get out-of-hand.
Leaders set consistent expectations for everyone.
Leaders use resources efficiently.
Leaders take and learn from constructive criticism.
Leaders criticize without insults or degradation.

Sunday, April 12, 2009

Decision Making is Not a Popularity Contest

"When I've heard all I need to make a decision, I don't take a vote. I make a decision."
- Ronald Reagan

As a manager, when a decision you make doesn't work out quite the way you planned, who's going to be held responsible for it? You are. If you only make decisions based on others' approval, do you think those other people are going to be around if the decision turns out badly? Of course not. So, why should your decisions be a popularity contest? So often, I've seen managers who don't want to make decisions without the approval of others around them. This is because they aren't confident in their decision-making ability, they fall to the pressure of other strong-minded individuals, and/or they just don't want to take risks that are part of big decisions. Management exists because someone has to take the lead in business. So lead. Don't let your decision making be part of a popularity contest. Here's how it's done.

1. Identify the problem or the area of opportunity that a decision must be made on.

2. Talk to those who are involved in this specific area. The purpose of these discussions are to gather all of the available information from the perspective of staff - not to gain approval.

3. Review any other available data that could be helpful in making your decision.

4. Measure the potential financial impact of the decision - positive or negative.

5. Decide and put the plan into action.

The point is simple: all you need to make your decisions is relevant information. Once you have all of the available relevant information, you then must decide, act, and don't look back. All of your decisions will not be popular with everyone that you work with and they don't need to be. They just need to be good decisions based on relevant data. Don't get lost in popularity contests and don't get bogged down in the fear of big decisions. To be certain, important decisions bring with them various levels of risk. That's part of the deal, but you are in a position to lead by making these decisions. So, don't leave them up to the consensus of others who won't be around if the deal goes bad.

I want to note that I'm not suggesting that managers should ignore the good advice of others around them. Good advice is part of the information-gathering process. I'm just saying that it's up to you how you use it. Never ignore good information.

Finally - when you make smart decisions based on relevant data and the deal goes as planned, who do you think should get credit? This is a 2-way street. A leader who is able to make tough decisions, based on all of the available, relevant data, deserves all the credit - especially considering that you'll take all the blame if it goes bad. And, if you allow your decisions to be part of some group consensus, expect to be lonely when the group was wrong. Be strong and lead with good decisions.

Tuesday, April 7, 2009

Paint the Portrait of Pain

It is well studied that most people will go to great lengths to avoid pain. In this case, I don't necessarily mean "pain" literally. Pain could be a problem that people would want to avoid. It could be a significant loss that would result from a specific action or inaction. It could be financial and it could be social. For now, we'll use "pain" to mean anything that a person would like to avoid in order to avoid a negative consequence.

In sales, the idea of pain avoidance is a powerful tool. Currently, gold dealers are promoting the pain of a falling dollar because gold will not likely ever lose its value. Put your money in gold, they say, and not only will you get a great return, but your money will not be worthless when things get worse. Who wants their money to be worthless? Nobody. And these companies tell you to buy gold in order to avoid the pain of a worthless dollar (they may be right by the way).

Doctors know all about this principle too. When you're seeing the doctor and all you have to pay is your copay, what do you think you would say if the doctor asked you, "would you like to get blood work to rule out a life-threatening illness?" Hmm. . . let me think about it. OK - go ahead since it could save my life.

What pain do your customers suffer when they don't buy from you? What pain do they suffer when they go to your competition. In my medical office, when an injured worker goes to the competition, he finds himself back at work with an injured back. That's literal pain. Some of them go to doctors who don't understand workers comp rules, so they don't get their forms filled out correctly and they get fired from their jobs. When I tell them how we solve these problems, they wouldn't consider going to the competition and I don't blame them.

Personal trainers have a captive audience of gym members who experience various levels of pain - from being overweight and unhealthy to being almost as strong as the next guy. When they paint the picture of an ineffective workout being performed in a gym that they are paying a monthly fee to belong to, and show prospects the success of their past clients, they not only paint the portrait of pain, but they paint the portrait of solution at the same time. Powerful.

You have to figure out how your customers experience pain if you want to be able to solve their problems and promote those solutions to future prospects. Customers who want economic cars likely have the pain of a long, expensive drive to work. So, hybrid dealers sell them an inexpensive car that gets 40 or more miles to the gallon. Problem solved. Lawn care guys go door-to-door leaving business cards at the houses with the worst yards. They assume that the home-owner doesn't enjoy doing his own yard or it would look nice like the neighbors. They fix the pain by offering a service that other people want to avoid. During "tax season," firms promote the avoidance of scary IRS audits. Who wants that kind of pain? Nobody, so these companies make a ton of money by using (at least partially) fear avoidance.

To attract more customers and prevent your existing customers from going to the competition, you must identify their areas of pain, solve their problems, and promote the ways in which you solve their problems. Paint the portrait of pain and then paint the solution through advertising and promotions.

Friday, April 3, 2009

Covert Customer Loss

Smart companies budget their marketing, advertising, and sales costs, and these costs can be significant, but even greater when they don't produce the desired results. Take the following example into consideration.

Say you spend $15,000 per month in total marketing, advertising, and sales costs. For this, you expect to get 100 new customers per month. That's $150 per new customer (assume this is a great deal with a high return-on-investment). What if you only attract 80 new customers? Now your cost is almost $188 per customer. Many companies have relatively low profit margins which means when your cost per new customer increases by $38, like in this example, your margins are swallowed up in the new customer loss. Incidentally, another way to look at this is that with only 80 new customers, you lost $3,000 in advertising costs (because they were ineffective) plus all of the sales revenue that you hoped to receive from those lost 20 new customers. Assuming a 10% margin, each of the 20 lost new customers would have brought the company $165, for a total of $3,300. That's a total loss of $6,300 per month, and over $75,000 per year if this continues. Wait just a minute!

$75,000? We should probably take a deeper look into why our marketing, advertising, and sales budget was so ineffective. So, you go back and find that your ads are perfectly designed and perfectly located in the perfect geographic areas and media to make a perfect impact. Your sales team is doing a perfect job attracting new customers and your marketing plan was written perfectly to maximize the company's tools in each of the promotional areas.

Really? Then what happened? All of this perfect effort achieved a 20% loss in new customers. I'll tell you what happened. Your receptionist turned away new customers when they called because she didn't understand how valuable that call was. Your on-site staff wanted to leave early a few nights so they weren't available to help the new customers. Your phone was busy when the new customers called, so they just called the next number listed in the yellow pages. Your staff underwhelmed new customers by their lack of customer focus or by their lack of product knowledge. You had some crazy policy or procedure that unknowingly limited new customers and nobody told you about the problem. When the customer called, your phone sales staff wasn't trained well enough to close the deal.

And. . . all of this stuff happened right under your nose. It happened in the evening when you were no longer in the office. It happened during the afternoon when you were really busy working in the business. It happened because you and your management team didn't have or make time to ensure that it did not happen. This is one other very important reason for you to spend more time working ON the business than IN the business. It's another reason that you must focus your effort on training, not only your staff, but their managers as well. You need to set up "secret shopper" phone calls to find out what's being said on the phone. Send "secret shoppers" into the office / store to find out how the on-site sales team operates. You must find all of the areas of covert customer loss that kill your business right under your nose.

When you don't know that all of these things are happening (and believe me, they are happening), you spend more time on advertising. You fire your sales team, you re-work your otherwise effective marketing plan. You spend valuable time and money on all of the wrong things and then as a result, you continue to get the same poor returns.

Be aware of your company's areas of covert customer loss. Find them, and you will see the result of your otherwise excellent plan, people, and marketing materials.

Tuesday, March 31, 2009

Blown Away

I had a recent experience at a local tanning salon, named MAX TAN, that literally blew me away, from the perspective of customer service. It made such a huge impression on me that I feel compelled to write about it. The lesson you will learn is so simple: remember names and address customers by name. Here's the story. . .

I last visited this tanning salon 5 years ago. When I decided to go back 5 years later, I walked in and the manager, who was there 5 years ago, said, "Hi Chris". It stopped me in my tracks. I couldn't believe it. He remembered my name after 5 years. He walked around the corner from a hallway, made eye contact with me, and addressed me by name without hesitation. I have to admit that although I recognized him, I couldn't remember his name. He made a dramatic impact on me (and I teach this stuff!). Of course, I asked him, "How did you do that?" He didn't have any tricks. He said that he just remembered. Every day since then, he has addressed me by name and I always remember the 5 year thing. What an impression!

The other great thing about this company is that every person who works there addresses me by name - even some of the people who I have never met or been introduced to. One of the employees even opened the door for me when I left there today. This company truly gets CUSTOMER SERVICE. What does it cost them to use my name? Zero! Guess how many people I've told? Before writing this article - at least 10. That's the best marketing a company can ever hope to get - a customer's enthusiastic testimonial and recommendation.

As an additional note on this company's overall service, their salon is always ridiculously clean, the employees are always smiling and making eye contact, they price their services reasonably and give customers multiple options for the various levels of available tanning agreements. They are simply unbeatable.

As a business manager, or as a person who simply wants to make a great impression on others, take a lesson from MAX TAN. Address people by name. Do whatever it takes to remember names. There are books available on remembering names. Get one if that's what it takes. Take pictures (with consent) of your customers to attach to their profile in your company database. Whatever it takes, address customers by name. You will blow them away.

Friday, March 27, 2009

Don't Get Mad at the Money

As I've said before, customers who complain are a valuable opportunity for a company. Unfortunately, many times, when customers do complain, staff get upset or even angry. They take it personal because they don't realize what a great opportunity that complaint can be. It will give them an opportunity to evaluate and improve systems, products, staff, and services. You need to train your employees to accept complaints and learn from them. Even more, you need to train them to thank customers for complaining and giving them an opportunity to improve.

In my office, when a customer has a complaint that hasn't been handled to their satisfaction by another employee or supervisor, I always speak with that customer and make them happy if it is at all in my power to do so. What I usually find is that one of my employees has followed policy the way they were trained to do, but the situation warrants breaking policy to make the customer happy. Some policies are meant to be broken on a case-by-case basis. After all, policies are for staff - not for customers. I'm not talking about very important company policies like the ones that address following laws or that prevent workplace injuries. I'm just talking about "smaller" policies. For example, my doctor's office has a policy of needing to personally meet with patients who need certain forms filled out. Well, if that patient (customer) is going to be late getting back to work if she has to wait long for the doctor, maybe we can just interrupt the doctor and get the formed filled out right then. We have another policy of taking our last patient 30 minutes before we close. However, if a new patient were to come in 15 minutes before closing time, it's a good idea to help them out and get an account started so that we can see them again tomorrow. These are less important policies that are meant primarily to maintain order and give all associates a frame work for how to operate. They are not policies for customers, so customers don't need to care about them.

When a customer talks to me and I "over-rule" one of my employees, that person will sometimes be upset with me because I didn't "back them up". I just tell them that making customers happy is the top priority for all associates at all levels of the organization. I'm a brick wall when staff complain about customers. Customers = Money. So, I say, "Don't get mad at the money."

Train your staff to make customers happy and empower them to break policy on a case-by-case basis, to make customers happy. At least encourage them to talk to their supervisor about finding a solution that can make the customer happy. Complaints are a valuable opportunity for creating happy customers that refer other customers.

Don't get mad at the money. Instead, make customers happy so they will tell all of their friends about how you went above and beyond to take care of their needs.

Saturday, March 21, 2009

Working ON the Business

As a top manager or business owner, the way you spend your time at work will determine the impact you have on the business - either positive or negative. You can not allow yourself to get buried in the day-to-day tasks of your organization. If you, for example, answer phones, stock shelves, purchase inventory, or do other work that could be handled by someone else, you are hurting your business because you aren't serving your primary purpose of growing the business. When you spend most of your time working in the business, it's like you're a hamster on a wheel - you're working really hard and getting no where.

As the top manager or owner, you need to spend the vast majority of your time working on the business. When you work ON the business, you are doing things that grow the company in many different ways, from creating policies and procedures, to devising strategy for getting new customers. Some tasks that you should be doing instead of the day-to-day tasks of the operation are:

1. Writing and modifying policies and procedures.
2. Writing marketing and strategic plans.
3. Creating budgets and reviewing financial statements.
4. Talking to customers to get their feedback on ways to improve the business.
5. Training others to do the day-to-day tasks of the organization.
6. Reviewing sales reports.
7. Reviewing your chart of graphs to find problems and opportunities.
8. Training people to do the training of others.
9. Delegating assignments and following up on their completion.
10. Working with suppliers to get better deals.
11. Talking to established clients and future prospects.
12. Talking to your staff to find out what problems they are having and identify areas needing improvement.
13. Creating new products for sale.
14. Building alliances with complimentary products and services.
15. Finding ways to get more efficient.

These important tasks can not be left to someone else. You are ultimately responsible for the success or failure of you operation. Jefferey Fox suggests (and I agree) that you first need to hire a office / business manager and a marketing / sales person. You will be able to delegate many key tasks to these positions which will save you the time you need to work on the business. While these people will also be charged with doing their part to work on the business, their key responsibilities will be to work in the business and ensure that your priorities are handled effectively.

Working ON the business is the only way for you to grow the business to the level that you envision in your own mind. Start delegating the day-to-day tasks of the organization and do the things needed to grow your business.

10 Tools for Getting a Pay Raise

Some companies give cost-of-living increases. Others give automatic pay increases annually. Still others give pay increases in the form of bonuses (that are often undeserved). When you want the pay raise that you really "deserve", you need to use these tools.

1. Most importantly - you must ask for the raise.

2. Calculate and present your worth / value to the organization. How much did you do in sales in the past year? How do you rank among your co-workers? What was the overall dollar value of your performance?

3. Present the market value for your position / job title in your geographic area. You can use web sites like www.salary.com to find a very rough estimate of your market value. A better way to do this would be for you to call other businesses and talk to others who do your same kind of job. When you share salary information with others in your industry, you give those other people tools that they can work with and this will probably convince them to talk to you about salary. This is a form of salary survey like salary.com uses - only on a smaller scale. (Note: your company probably has policies on discussing salary with your co-workers. Don't violate this policy and get yourself fired. That's why I suggested talking to people in other companies.)

4. Be willing to take on new responsibilities that will increase your future value to the organization.

5. Ask for more than you expect to receive. This gives your supervisor room to negotiate. When you concede some of the money that you're asking for, you supervisor gets to "win" when he/she gives you less that you ask for and you actually "win" because you get a nice pay raise. This is a proven negotiation technique that works. Even if it seems silly, do it anyway.

6. Don't expect to get your answer today but know that the longer your supervisor takes to "think about it", the less likely you are to get what you want. The better your presentation of facts and the more likable you are already, the more likely you are to get resolution sooner than later.

7. If you don't get an answer today, you must always ask, "what day can I expect you to have a decision on this matter?" It's important that you have a mutually agreed upon time line. The longer it takes, the less likely you are to get the result you deserve. So, get a firm deadline.

8. If your supervisor is required to take your request to a higher authority, ask them to take a stand for you. Here's what you have to say: "Considering my high value to the organization and the market rate that is above what I'm currently getting paid, will you recommend to your boss that I get my requested pay increase?" When you get the supervisor to commit to helping you, he/she will be very likely to make a strong effort to do so, if for nothing else, to remain consistent with their agreement to help. This is a powerful influence technique.

9. Ask for objections to find out what, if anything, would prevent you from getting your raise. When you don't know what the objections are, you can't change anyone's mind. You need to know what your supervisor is thinking if you want a good outcome.

10. Tell the supervisor that they already agree with your position. I love this one the most. When you are presenting all of the facts, you tell your supervisor, "You'll agree that I'm being paid less than market value, especially considering my excellent production." Or, you might say, "Our company values high performance, that's why you'll agree that rewarding my performance is the right thing to do." Or, "I'm sure we agree that high performance deserves high reward." The key is that anytime you can emphasize points of agreement with your presentation of facts, you will significantly influence your situation.

Finally, many people think that it's a good idea to threaten to quit if you don't get what you ask for. What a bad mistake! Never, ever, ever do this unless you are ready to walk out the door right now. Threatening to quit does not win you favor with your employer -present or future. If your value is not perceived as being high, you are probably punching your ticket with the threat of quitting. Even if you were previously perceived as being valuable, now you have left a bad taste in your employer's mouth and that's a devastating result for you. Threatening to quit is only going to work if your employer is short on other talented people in your position, but only in the short-term. As soon as someone else is hired, you could be fired. Lastly on this topic, never threaten to quit unless you already have another job lined up. You might just be asked to leave right then.

Don't make yourself jobless when you're just trying to get a raise. Instead, follow these 10 tools, stay employed, and get the raise you deserve.

Critical Missing Sales Step

Businesses that do great marketing and sales have a well written marketing plan, with a killer sales offering, a compelling message, and effective marketing and sales materials. As part of the marketing plan, one or more sales people may be charged with face-to-face marketing with key referral sources. During these sales attempts, the marketer / sales person will try to get time with key decision makers. They will hopefully present the sales materials (brochures, booklets, presentations, etc.) in a way that compels the decision maker to send them more new business / customers.

But, with the potential high cost of marketing and sales, and in spite of the effective sales materials, the effort to reach decision makers, and even with having what you think is a spectacular marketing / sales person, if the following critical sales step is missed, the entire cost and effort could result in a frustrating and damaging nothing. What is this critical missing step?

Always Ask For The New Business. Always Ask For The Sale. Always Ask For The Referral.

Yes - you must ask if you want to receive. This seems so obvious, but the number of sales attempts that end without actually asking for the business is shocking. This sometimes happens when the sales / marketing person is intimated by the decision maker, so you must hire someone for this position who is not only very skilled, but very confident (almost cocky). It also happens when the sales person is not trained on effective sales techniques or even worse - when the sales person simply doesn't believe in your product. In the first case, you need to make sure your sales team is highly trained. In the last case, you just have the wrong person in that key position. Get someone else fast.

Asking for the new business can dramatically improve your sales effectiveness. While there's a lot that plays into this step (enough to write an entire entry on the subject) you must be aware that your sales / marketing team may not be doing it, and this is hurting your business. Make this part of your marketing and sales policies. In policy, you should clearly mandate that asking for the business is part of the sales and marketing process. Asking for the business should also be found in your marketing and sales materials. Do not take it for granted that your customers will do business with you just because you have good materials and good people. Instead, always ask for them to do business with you.

Thursday, March 19, 2009

Management Fire Fighters

A management fire fighter is someone who is great at fixing problems. In fact, they know exactly what to do in most problem situations. Everytime a customer complains, the management fire fighter is there to fix the problem. Everytime a staff member has a problem, the management fire fighter knows the solution. That problem can happen over and over again, and the management fire fighter will never forget the solution. The management fire fighter will handle problems as often as they occur, even if a subordinate manager is there to help. The management fire fighter doesn't need to waste any time teaching others how to solve problems, because solving problems is his job. To the management fire fighter, fixing problems feels good. It makes that manager feel very useful. And, while the management fire fighter feels really good about always being able to fix every problem over and over and over again, he is also damaging the business.

As a manager, everytime you have an opportunity to solve a problem, you should take extra time to write it up. Writing it up means identifying the problem, determining its root cause, and implementing a solution - all in writing. After its all written up, you then need to train those involved, with your new written solution, so that the problem never happens again.

Many times, organizational problems occur due to a lack of policy or inadequate existing policy. When you find this, you must recommend and implement new or revised written policy and then distribute it throughout the organization. Policy is another form of written solution to problems. In absence of solid, written policy, people will make up their own rules. While they probably think these unwritten rules make sense, they very well may not fit into the bigger picture. It is the manager's job to make sure employees do not need to create their own rules.

Similar to written policies, managers need to also implement written, step-by-step procedures for how to do each job. It doesn't matter if only one person is involved in a process or if multiple people are involved, written routing procedures will crystallize the task and make it more simple. Written routing procedures are also excellent training tools. Managers can literally teach each step of the process, one-at-a-time, to make sure each new associate is able to do their job successfully. Finally, written routing procedures can be made more efficient because when working the procedures, you can find ways to make each procedure more simple or to combine processes so that the cycle time is at its lowest. Shortened time cycles can give an organization a decided strength advantage over the competition.

The last way a management fire fighter damages the business is by not training other managers how to do the job right and how to train others to do the job right. Instead, the manager should always have the direct supervisor involved in the solution, writing up the problem, creating policy, fine-tuning routing procedures, and training staff. When you are able to delegate future problem-solving to your subordinate managers, your time will be free to make big-picture decisions and grow the business instead of hurting the business.

So, don't play the role of management fire fighter. There is absolutely no value in fixing every problem over and over again. Write it up. Implement effective policy. Create routing procedures. Shorten time cycles. Train managers. Focus on the big picture.

Wednesday, March 18, 2009

Management No-No's

As a manager, you must be held to a higher standard than that of those who report to you. No - you must hold yourself to a higher standard. If you don't, then how can you ever expect anything that resembles excellence from your staff? Clearly, you can't. So, let me point out some things that I have seen managers do that you should never do.

1. Don't have a personal vendetta against anyone. It is unacceptable for you to "be out to get someone". I see this mostly when managers feel insecure about their own performance or when they fear that someone under them might take their job. First of all, nobody should ever be able to "take" your job. When you chronically under-perform, you are giving your job away to someone who can do better. So, work hard, be smart, do excellent work, and treat people with dignity and respect. If you find yourself being "out to get someone," don't be surprised if it is you who is gotten.

2. Don't place blame on someone else, or as I like to say it, "throw someone under the bus". As the manager, you are ultimately responsible for everything that you are responsible for. If someone under you messes up, it was your job to have trained them not to make that mistake in the first place. If you did train them, and they continually make that mistake, then it is your job to put them in a more fitting position, or to free up their time to find a better position elsewhere. Placing blame is a sign of weakness in managers. It is unnecessary. Instead, find a solution for problems and fix bad situations.

3. Don't be messy and disorganized. I once heard someone say that if you want to know something about a manager, take a look at their desk. Stacks of paper usually mean unfinished business. Papers scattered all around the desk and office usually means forgotten and thus unfinished business. A messy work area creates a very poor image of the manager and as a manager, you want people to think highly of you, don't you?

4. Don't make excuses for poor performance. First of all, nobody's perfect. Mistakes happen. Own up to them and figure out a way to avoid them in the future. Also, instead of excuses, promote how you will make sure performance will improve. A sign of a good manager is the ability to acknowledge areas of poor performance and fix them. Don't waste anyone's time giving excuses. Just fix it and move on.

5. Don't be a sniper. I hate hearing constant negativity being thrown at people, policies, situation, etc. Managers can not constantly criticize others. They can't use meetings to "throw others under the bus". They can't constantly criticize company policy (especially to their subordinates) and they can't criticize the boss publicly. Snipers always find time for negativity. They always find time for criticism. This just makes me want to take a deeper look at them and see what problems they're causing.

Be a good manager and avoid these no-no's. If you fit into any of the above categories, there's a better than zero chance that you won't get to stay there for long. Be nice. Be positive. Be professional and organized. Be a problem-solver and not a problem-maker.

What are You Really Selling?

I think it's critically important for you to understand what you're really selling to people. If you can't identify your real product, you will never be able to effectively sell your product or service to the masses that you want to sell to. Let me give you some great examples.

1. Hair Stylists do not sell hair cuts.
2. Chiropractors do not sell adjustments.
3. Electronics stores do not sell big screen TV's.
4. Furniture stores do not sell beds.
5. TV advertisers do not sell advertising.
6. Realtors do not sell houses.
7. Athletic shoe stores do not sell shoes.
8. Lawn Care guys don't sell lawn mowing.
9. Gyms don't sell gym memberships.
10. Photographers don't sell photos.

So, what do all of these people really sell? Well, hair stylists sell people self-confidence and a strong ego. Chiropractors sell relaxation and freedom from pain. Electronics stores sell an entertainment experience you can share with your friends and family. Furniture stores sell the best night's sleep you've ever had. TV advertisers sell companies a dramatic increase in new customers. Realtors sell dreams and a better life. Athletic shoe stores sell a better jump shot. Lawn Care guys sell a beautiful yard that is the envy of the neighborhood. Gyms sell beach-ready bodies and photographers sell memories that last forever.

When you know exactly what you sell, you're able to create more effective advertisements with more powerful headlines and better sales pitches. You create a mission that everyone who works for you can get behind and believe in. Most importantly, you give your customers an emotional reason for buying from you instead of your competition.

What are you selling?

Friday, March 13, 2009

My Story of Perseverance

This is part of my story and due to its personal nature is the hardest entry I will write. Some will find it "cheesy". Others will find it self-serving. Still others might even find it pointless. But, someone will find it motivating and inspiring. I am writing this to that person.

As a kid, I was small, quiet, shy, and in my opinion, just average, but there was my grandmother. She always told me that I was big, and smart, and cute, and great at everything. She told me that I could do anything that I wanted to. I believed her. Thank God she was right.

At the age of 9, my grandmother asked me if I wanted to learn how to play the "fiddle" (not the violin - trust me there's a difference). I wanted to please her so I said yes. She paid for my lessons with the best fiddle player I have ever heard. Before the year was up, she began entering me into fiddle competitions against other kids my same age. I stood on a stage, in front of a microphone and crowds of people who were watching and hoping that their kids would win. At the end of each competition, I disappointed quite a few moms and grandmothers. My grandmother always told me I was the best and I believed her. I never placed lower than 2nd, but usually 1st (and I won $25 to $50 each time - I couldn't believe that they paid me to do that).

I continued winning for the next 3 years until I put down the fiddle to play the trombone. Thankfully, I maintained my healthy self-esteem and was the best at trombone too. I won 1st place in most of the competitions. I was the "1st chair" of my band's trombone section. I played solos in the Jazz band and solos in the marching band, including the state champion band when I was just 15. I stood on the 45 yard line of the University of Texas football stadium and played a beautiful solo - totally fearless and absolutely unaware of the possibility of failure.

After a few years of music, I decided to quit the band to focus on sports. Several years before this, I was little and slow. Instead of giving up on sports, I just kept working at it. As a 14-year old, I began to grow, got faster, and generally began to "figure it out". By my freshman year in high school, I made the varsity track team for the 400m dash and the mile relay. I wasn't slow anymore. In practice, I ran until I literally puked every single day, then I kept running. In my sophomore year, I blew out my ACL (knee ligament) and had to run with a bulky, fiberglass brace for the next 2 years after two knee surgeries. In each of those 2 years, I was voted the MVP of my varsity track team, despite running on a bad knee.

Academically, I was a straight-A honor student and an officer in the National Honor Society. I graduated high school with honors and went straight to college at the University of North Texas. It was at this stage of my life that everything temporarily fell apart. I went thru 3 different academic programs, was placed on academic probation, and at one point was 1 hour away from being placed on academic suspension. I got an A in that 1-hour basketball class and the rest was history. I started making the deans list, re-took all of the classes I failed, and finally graduated with a degree in Kinesiology (coaching, PE, personal training, etc).

I knew I was going to be a strength coach until the Summer of '98 when I spent one training camp with the Tampa Bay Buccaneers as a volunteer strength coach. What a great experience this was, but it helped me realize that I needed to change career paths because I wanted to be able to spend time with my family while making a fortune professionally. That just wasn't going to happen soon enough for me in the NFL.

Two years later, my boss asked me a life-changing question: "Chris, do you think you could run this place?" "Of Course," I said, and I had no idea whatsoever about how to do it, but I knew I could do anything, so I said yes. Years later, we're breaking records. Since then, I went back to school to get my MBA (Master's of Business Administration) and I am so proud and thankful that my grandmother was still alive to see it. Sadly, she later passed away and I will never stop missing her and I will NEVER forget her - enough said.

The keys to my success (and the main point of this entry that I hope you will take away and use for yourself) were the unbelievable and infinitely loving supportiveness of my grandmother, my subsequent huge belief in myself and my abilities, extraordinary hard work and perseverance, never turning down a great and life-changing opportunity, and a laser-sharp focus on my goals. You need to believe in yourself. Otherwise, how can you expect anyone else to? Always work hard and set big goals. Never turn down a great opportunity. These are the lessons from this part of my life.

"Micro Manager" - Not the Definition of a Great Manager

Micro Manager
A manager who dictates rather than delegates job functionality to those they manage. A manager who is excessively concerned with specifying the details of how a task should be done rather than managing the big picture and allowing subordinates to do their job (from http://en.wiktionary.org/wiki/micro_manager).

Micro Manage
To direct and control in a detailed, often meddlesome manner (from http://www.thefreedictionary.com/micromanager).

As I've previously written, one quality of a great manager is the ability to effectively delegate tasks. The definition above states that a micro manager dictates details of how to do something rather than managing the big picture and allowing people to do their jobs. Has anyone ever felt as if they were being micro-managed? If so, how did that make you feel? Did you feel like your boss didn't think you were able to do your job? Did you think the general feeling was that you weren't good at your job or at least good enough to manage the fundamentals of your job? How did that feel? From my experience, the answer is, "not good".

Another part of that definition is . . . "rather than managing the big picture." This is the job of the manager - to manage the big picture. If you are wasting your time on the minute details of each person's job, how then can you possibly focus on the big picture? How can you focus on growing the business by getting more new customers if you are spending so much of your time doing everyone else's job? Don't be a micro manager. Anyways, very few people like or appreciate micro managers. This doesn't inspire people to do good work. It just makes people feel upset and insecure.

So, if you are afflicted with the micro management bug, I am going to give you some steps to letting go, allowing people to do their jobs well, and focusing your attention on the big picture of growing the business.

1. If you set up effective training protocols, you will have no need to micro manage because everyone will already be doing the job the way you want them to do it. So, create and implement effective training protocols and train those that you intend to train everyone else. Then, let them do that job.

2. Set up lines of communication and an organizational structure that allows staff to report to their direct supervisors. Those supervisors will report to a top manager. The top manager will report to you. Maintain these organizational lines. Make sure everyone in the organization maintains those lines.

3. Teach the management team to manage effectively. Make sure they understand management policies and procedures and that they follow them.

4. Set forth the organization's mission and your vision for your company's future. When everyone in the organization believes in and follows the mission and vision, you will not need to micro manage because everyone will be doing exactly what you want them to do.

5. After everyone is trained, the organizational lines are set, the management team is functioning properly, and the mission and vision are being followed, the final step is to set up feedback points and measurement tools that tell you what is happening, how the company is performing, and where potential problems exist. I have referred to these in previous posts as graphs because these give snapshot pictures of the current situation at all times. You will also hold meetings with your management team and hold them accountable for accurate feedback and excellent performance.

Then, all that is left is TRUST. If after following these 5 steps, you still can't trust your managers and their direct reports to do the right job, then either you have done a poor job in preparing them for excellence or they are the wrong people for the job. Also, it may just be that you are not willing to extend the trust necessary for everyone to handle their jobs so that you can handle the big picture. If this is the case, then good luck to you because your good people will go find a good job somewhere else where they can be trusted to do excellent work and where they will feel appreciated for it.

Aside from fair pay and the right benefits, the thing people really want the most is to feel appreciated for the good work they do and to feel like they are actually good at their jobs.

Constantly micro managing them will not get this done. Don't be a micro manager. Fight the urge. Follow the 5 steps above and trust good people to do good work.

Thursday, March 12, 2009

Turning Around a Failing Business - Part 2

When we took over the other office, it took about 9 months to take the office from losing tons of money every month to starting to make it into the positive. In this blog, I am going to outline all of the steps we took to turn that office into a profit machine.

1. We got the wrong people off the bus and kept the right people on. In one day, I permanently freed up time for several people to find jobs that were better for them. Note: I did all of this in one day. When you're going to do a mass personnel change, it's critically important that you don't drag out the process. Doing this will make the "right" people uneasy and some of them will quit, while others will be poor producers until the time passes. So, I got it all taken care of at once and then assured the remaining associates that their jobs were safe as long they got their act together. Making sure we had the right people on board was the critical first step.

2. The manager who was in charge of the business was demoted and subsequently resigned. I will note here that when the CEO suggested to me that the manager be fired, I opted to allow him to continue his job as clinical director instead of firing him. Does anyone think he would have extended me that same courtesy?

3. We reviewed all of their written systems, found that they weren't using any of them, and re-implemented all of the written systems that I and the CEO had created for use in my office

4. We re-trained the entire staff on all of the written systems - over and over until everyone had it down cold.

5. We created new positions that mirrored some key positions in the other office to make sure that each office operated identically.

6. We put new managers in place to operate the office locally and set up vital reporting lines to ensure that everything ran smoothly.

7. We agreed that I would be on-site at the office at least one day per week and the CEO would be there every other week. Another key manager frequently worked on-site as well to make sure some of the inner-workings of the medical office ran smoothly.

8. We identified and cleaned up the back-logs in every area so that everyone was able to work on current operations and old billings didn't get too old to collect.

9. I trained the new on-site office manager to manage the staff and their operations the right way.

10. We brought the collections operations to the home office in a successful effort to centralize billing and collections. This was a huge success.

11. We graphed everything for ongoing feedback on all business areas.

12. We continue to review their systems, technology, staff, and all business reports to make sure that everything continues to run in a way that breaks records.

So, remember - when you take over a failing business, always make sure you have the right people in place (do this swiftly), create and use effective systems, train everyone to do the right job the right way, teach managers to manage effectively, create feedback systems, graph everything, and never lose touch with the operations.

Wednesday, March 11, 2009

Turning Around a Failing Business - Part 1

Three years ago, I had the unique and special opportunity to turn around a failing business. It was my company's second office. The manager at the time was a brilliant clinical practitioner, but the management decisions that were made absolutely destroyed the company. At one point, the company was losing tens of thousands of dollars every month, and the next part of the story is my favorite. Read on.

My office is internationally accredited for excellence in rehabilitation. This is a very prestigious honor that we have maintained for 7 years. Three years ago, we were set to undergo our next accreditation survey, but the weather was a horrible icy mess. I was worried that I would be iced in the morning of the survey, so I decided to spend the night in my office floor so that even if nobody else was there to oversee the survey, I would be. Yes, I slept overnight in my office floor. When I woke up the next morning, I got dressed and ready for the survey team to show up (fortunately, they stayed in town overnight so they were able to be at the office that morning). My boss (the CEO) stopped me in the hallway and told me something that I will never forget. He told me that the manager of the other (failing) office said it was my fault his office was failing, due to some really ridiculous reasons that later proved to be false.

Recap: I just woke up from sleeping in my office floor. We subsequently received the maximum accreditation by the survey team. My office was making money. His office was losing money. I WASN'T EVEN LISTED ON HIS OFFICE'S ORG CHART. But, the problems were all my fault. Really? Jim Collins writes about this sort of thing in his book, "Good to Great". Only he writes about the opposite kind of manager who looks out the window for success and in the mirror for failures.

Anyways, to skip to the really good part - a few months later, the truth came out. I took over that failing office, turned it into a profit machine with the help of other managers, and it has just finished breaking records in net income for the last two years. I use the management principles in my blogs daily. These principles are the base line for how to get this sort of turnaround done.

For more on the details of how we turned office #2 around watch for Part 2 of Turning Around a Failing Business.

Business in Your Own Image

Many businesses take on the personality of its top manager. Who do you want your business to be? If you are a manager who panics in adversity, your company could find itself in a state of paralysis. Your staff will fight with each other and they will eventually quit to work somewhere more stable. Customers will realize it and they will leave too.

On the other hand, confident and optimistic managers will build a strong organization filled with employees who feel empowered to make good decisions for the company and its customers. Employees will report high satisfaction and customers will buy more products and purchase them more often. Confident and optimistic managers inspire the staff to achieve high goals. Their inspiration will be measured in many areas throughout the organization.

As a manager, who do you want your business to be? What do you want outsiders to think of you when they interact with your organization?

Here are 10 tips to build an organization in your good image.

1. Always seek to inspire and motivate.
2. Always be positive and upbeat.
3. Talk about big goals with all levels of the organization.
4. Be fun, have fun, and encourage everyone else to have fun.
5. Choose optimism over pessimism always.
6. Never panic - ever.
7. Be decisive and consistent.
8. Be highly organized and promote efficiency.
9. Get in really good physical shape and be in great health.
10. Meet with your employees often, get their opinions, and solve their problems.

Remember: Your company will be a reflection of you.

Tuesday, March 10, 2009

Are You Emotionally Intelligent?

Emotional Intelligence is the ability, capacity, or skill to identify, assess, and manage one's own emotions and the emotions of others. More and more research is being done on this relatively new idea, but it is becoming clear that emotional intelligence is among the top abilities required of managers.

Break down the definition. First, it requires an ability to identify emotions - to recognize and understand them. Next, to assess emotions - where do the emotions stem from, how serious are they, etc. And finally, to manage emotions - how do you deal with them in such a way as to control the outbreak of negative emotions, turn the emotions into productive actions, and determine ways to prevent negative emotions in the future or bring about more positive emotions.

In my experience, this is a key ingredient in a great manager - the ability to recognize, understand emotions and their severity, and to convert them into productive action. Very often however, I have seen managers fail completely in these areas. These managers take the negative emotions of others personally and may possibly lash out at the other person. They seek to invalidate emotions or find excuses for the person expressing emotion. They are nervous in emotional situations and don't know how to respond. They may even avoid them all together and hope the situation just goes away - weak.

That's about negative emotions. What about positive? Managers low in emotional intelligence have no idea how to capitalize on positive emotions. They don't realize that success breads success and that people want to be rewarded for success, especially with public compliments on good work.

Finally, those with emotional intelligence also understand their own emotions. These people don't take bad personal situations out on others. They don't take abuse from their low emotionally intelligent boss and then let it roll down heal (so to speak). They don't take constructive criticism personally. They understand their own strengths and those of others. They build on those and don't penalize people for their weaknesses because they know that we all have weaknesses.

This just scratches the surface for this complex and relatively new topic, but as a manager, you need to understand that such a topic exists and that when you score a high emotional IQ, you will excel. For more information, google emotional intelligence and read more.

Sunday, March 8, 2009

Think BIG!

The most successful people in our history have been big thinkers. Thinking big is a key ingredient to reaching huge goals. Instead of thinking incrementally, you need to think exponentially. My company just finished back-to-back record-breaking years. After reaching such a great accomplishment, I decided that I wanted to double in the next two years. So, I set a goal to double in the next two years. Simple. In order to reach big goals, you first must set big goals. Guess what has happened? The first 2 months of this year were double the average of the last 2 years. Setting big goals can be powerful. We'll keep it going in that direction too!

What big goals have you set for yourself and your business? Guess what? They aren't big enough, so set them higher. The pastor of my church, who is a very wise and great man, once said that God wants us all to achieve great things. He said that regardless of how big we think, it's never big enough. So, of course I look back at my business goal of doubling and I wonder how small that goal really is compared to my abilities. We'll sure see.

Get out of your comfort zone. Anyone can set conservative and easy goals. If anyone can do it, then it's not good enough. Be a little uncomfortable with your big goals. I want people to think you're just being cocky when you announce your goals. Good! Let them think that.

And, that leads to the next point - announce your goals publicly. You need to write them down, share them with others, and be held accountable for reaching those goals. Most people will work like hell to do what they say they are going to do. So, say it loud. Everyone in the organization, in your family, and your circle of friends needs to be aware of your big goals. Give yourself something big to live up to.

What's the worst thing that could happen by setting big goals - even bigger goals, announcing them and then working like crazy to reach them? Only good things can happen. Shoot for the moon and reach the stars. If I plan to double, but then only increase profit by 50%, do you think anyone's going to ridicule me? Heck no! I'll be known as the guy who broke company records 3 years in a row. I'll take that any day. Wouldn't you?

So, think BIG - BIGGER! Be careful though. This kind of thinking could make you famous.

Thursday, March 5, 2009

5 Marketing Tips That Make the Competition Invisible

If you want to truly beat the competition and be untouchable in your market, you have to follow these unbeatable marketing tips and make your competition invisible to your customers.

1. You must have a remarkable headline that grabs the audience's attention. Take this blog's title for example. Notice how is doesn't say something like, "Use these marketing ideas" or "Good marketing ideas". Instead, it stops you cold. After all, who doesn't want to make the competition invisible.

2. Use information in your marketing materials that is useful and of great interest to your target audience. This information should set you far apart from the competition. For example, if you are a personal trainer, don't tell the reader that you are certified and you have been a trainer for 5 years. Everyone expects their trainers to be certified. So what? Instead, tell them that your training techniques have helped your clients achieve massive reductions in body fat. Tell them about your clients that met all of their goals and were very happy with you. Tell them how compared with working out without a trainer, your training techniques achieve a 70% greater improvement in body composition. (PS: don't forget to add your certification to the ad.)

3. Use color and pictures that get people's attention. Don't use the same stuff that everyone else is using unless there is clear evidence that it works so good that you must use it. Otherwise, it is a good idea to stand out and be noticed. After that, you better have a killer headline and intriguing content.

4. Connect the dots between your offering and the audience's needs. Tell people why they need what you have. Tell them all of the things others use your product for. Tell them the very best uses for your product or the very best reasons others use your product (or service).

5. If something bad could happen if customers don't choose you over the competition, absolutely point that out and be emphatic about it. But, be careful you don't unintentionally talk bad about a specific competitor or competitor's product. This could get you into unnecessary legal trouble. Instead, you need to point out exactly how you or your product will solve their problems, even if they don't yet know that the problem exists.

For more information or assistance on ways to supercharge your marketing materials, email me at chelmsmba@aol.com.

Wednesday, March 4, 2009

Dangers of Financial Ignorance

We all love to get more new customers. Selling those customers a lot of products or services improves revenue. You can really ring that cash register if you get a lot of new customers and sell them all a lot of great stuff. Then, you get repeat business from lots of those customers and you've got the makings of a great selling machine.

If you don't understand how to read, analyze, and use your financial statements, you will be at risk of running that machine deep into the ground. You must know where your money (expenses) is going. Do you ever take the time to review your income statements? Do you even have income statements? For those of you who aren't sure, an income statement is nothing more than a detailed report of your revenues and expenses. It tells you what you are spending your money on (and how much) and it compares it to how much money you are making. The bottom line of this report is Net Income (or Net Loss if you aren't paying attention). For operational purposes, this is (in my opinion) the most important piece of financial data that you can use. A program like QuickBooks will let you enter invoices and print checks from your computer. It also lets you enter in your revenues. As soon as checks are printed, and at any interval, you can immediately run an income statement. You can view these as often as you want to - daily, weekly, and absolutely monthly.

To make sure your operation is making money, you should graph this information at regular weekly and monthly intervals. Graph your expenses and work like crazy to minimize these, except for anything that helps your company grow. Graph your incoming revenues and work like crazy to increase money coming into the organization. Finally, graph the bottom line - net income / loss. It is irresponsible management not to know where you are financially at all times. The income statement provides you with this data.

On the income statement, your expense categories need to be detailed enough for you to measure each individual category and find ways to reduce those expenses. A simple report with nothing more than a Total Expense number is practically useless to you operationally. With this only, how would you begin to figure out if something is wrong or where you have problems? So, give yourself plenty of detail, and certainly enough to effectively manage your financial operations.

You can not be blind to expenses, revenues, or net income. This is financial ignorance and this kind of ignorance will surely run your company into the ground.

Sunday, March 1, 2009

You Can Achieve Financial Freedom

How much of your income is going straight to credit cards, loans, and other wasteful spending? Have you ever taken the time to create for yourself a personal or family "operating" budget? Do you know how much money you and your family need just to get by? What percentage of your take-home pay goes to savings and what percentage goes to needless waste? How long do you have before you will retire and when would you actually like to retire? How much money do you have and how much will you need to live on after retirement? If you lost your job today (which is a sad reality for record numbers of Americans today) how many months would you be able to remain unemployed before you have to make very tough decisions about your home, cars, and other necessities? Will you be able to send your kids to college or will they need to get huge loans that they will have to pay back for the rest of their working, adult lives?

These are the tough questions that many of us face, but that so many of us don't have answers to or even know where to begin to look for those answers. In this blog, I am going to give you some very easy instructions on ways you can begin to answer these questions and achieve financial freedom. Notice that I didn't say to "get out of debt" or any other negative statements. Instead, I focused on the positive outcome of new strategies, "To Achieve Financial Freedom". Doesn't just saying that feel good? Imagine everything that this statement means to you. What is financial freedom to you? For me (as I've eluded to in previous posts), it's vacations to Vegas, relaxing on a beach, sending my kids to Notre Dame, having the house of my wife's dreams, and more. For all of us, it is something that makes us smile or something that makes us sad if we don't know how to get there. So, by all means, let's all get there. So, consider my advice below on getting yourself to your state of financial freedom.

1. Create a personal / family operating budget. All you need to know is how much money you bring home and how much money you spend. Break you spending down into the separate categories: Mortgage, utilities, car loan, insurance, gas, credit cards, groceries, etc. I recommend doing this in Microsoft Excel so you can save it on your computer and never lose it.

2. If you're like most people and you have a lot of credit card debt (or even just a little), get a poster board and create a "Payoff Schedule for Financial Freedom". Set a goal for the date that you want to be completely debt free. Divide your poster board into the number of months that it will take and list all of your credit cards, their current balances, and the minimum payments due monthly on each card. Each time that you make a payment, write it on the board. Each time you pay off a credit card completely, reward yourself reasonably. Set goals, achieve goals, and reward this achievement. Hang this poster board in a place where you will see it every day. Where many people fail, is thinking about the problem, setting a goal, and forgetting it soon after because it is out-of-sight and out-of-mind.

3. Cut up the credit cards and close the accounts as soon as the card is paid off. Cutting up the cards will prevent you from using them again. Closing the accounts will improve your credit score. Most people think that it's enough to just pay them off. A banker told me that closing the accounts is even better because it shows banks and other lenders that you don't have other revolving lines of credit that could get you into trouble later.

4. Where are your areas of wasteful spending? Everyone has some. For me, it was premium movie channels such as HBO. The time I spent watching this wasn't worth the money. I've also gotten more productive since cancelling these subscriptions. The book, "The Automatic Millionaire," calls this, "The Latte Factor". (Check out this book in my 5-Star Book Store.) Every dollar of wasteful spending that you can save, should be paid directly to debt.

5. Don't kick yourself too much for past mistakes. Getting down and depressed will only make the situation worse. Stop all of that negative self-talk. Thanks to your new plan, you are no longer that wasteful spender or that person who is deep in debt. Now, you are that intelligent, hard-working person who has a great plan for achieving financial freedom. In that way, you have already achieved a degree of freedom. Doesn't it feel good?

Finally, I want you to never lose focus of your goals and I want you to continuously work on your plan. I want it to be as natural to you as breathing. You need to be thinking about it all the time. Most likely, you didn't get in this situation over night, and it's going to take serious determination for you get out of it, but YOU WILL GET OUT OF IT.

DO YOURSELF A HUGE FAVOR: I want you to get the following books that I have placed in my 5-Star Book Store. I read these books and everyone who wants to get into a better financial position needs to read them to. These particular books, in my book store, are audio books and I did this because the #1 excuse I hear for people not reading and learning is that they don't have time. Well, guess what? You have time every day that you get into your car. Also, instead of watching all of your favorite TV shows, DVR them for later and pop in the Audio CD and take notes. When you have questions about the books, email me and I'll help you out. So, here are the books:

1. The Automatic Millionaire
2. You're Broke Because You Want to Be
3. Live With Passion: Strategies for Creating a Compelling Future

You have to hear these books. I want you to be able to do the things that others will not be able to do. So, do the things that others are unwilling to do. You can do it!

Saturday, February 28, 2009

Great Managers Reject Average

Great managers reject average because they know that it comes at the cost of excellence. Average does just enough to get by. It requires little effort or thought. It achieves average results. It settles for second best and even third best. Average doesn't impress customers, but it also doesn't bother them too much. It doesn't look for better ways to do things and it doesn't identify problems to be fixed. Average clocks in and clocks out and works just for a pay check. It is not invested in the company, the customers, or even in itself.

Despite its rejection by great managers, average is widely accepted by most of the public. Is anyone really ever surprised anymore when someone doesn't address them by name? Do we ever really complain when service is average or substandard? At restaurants, don't we see mistakes with the meal as just part of the experience?

I recently had an experience with a major delivery carrier that actually caused me to write this blog. After the delivery agency promised to have my package to my home after 5pm, the delivery attempt actually happened at 3:15pm. I was home by 4:15pm (early considering the promised delivery time), so I called the carrier and asked them to send the delivery man back to my house before the end of his shift. Fortunately, he was still in town, so I thought I was in luck. However, despite being just 10 minutes from my house, I was told that he couldn't make it back, but that I could meet him on the other side of town. I could drive 10 minutes to receive my home delivery, after the delivery time was not honored, but the driver could not spare those 10 minutes for me - the customer. When I questioned this decision to the telephone "service" agent, she actually told me that this decision was based on "driver discretion".

Driver discretion! But, what about the customer? It was too much for me to expect a promised delivery time, or an additional 10 minutes of drive time to just satisfy a customer. Don't these average companies know that they have competitors who will earn these customers right away from them? And guess what - it will take a just-better-than-average effort.

Now, as an example, here's how that delivery experience could have gone:

Telephone Service Agent - "Mr. Helms, please accept my apology for the mix-up. I am going to call the driver right away and re-route him directly back to your house. Can you hold the line for just a short moment please sir?" When she comes back on the line: "Mr. Helms, the driver wanted me to convey his sincere apologies as well. He understands that you left work early to receive this package on-time and he is going to be back at your house in 10 minutes. Will that be OK with you Mr. Helms? Also, the next time you need to ship a package Mr. Helms, please give the attendant the following reference number and receive 50% off of your delivery. We really appreciate your confidence in our ability to delivery your package on-time and with great accuracy Mr. Helms. Have a great day and enjoy your package!"

Mr. Helms - "Wow!"

Directive to all Managers: DO NOT ACCEPT OR TOLERATE AVERAGE!

Expect excellence in everything you do, and in everything your company does. Train your staff to be excellent. Recruit and hire only those people who have a history of and desire for excellence. Make your customers say, "WOW!" Achieve excellent results. Set high targets and exceed them. Reward your employees for achieving excellent results. Never reward average, as these are not results - these are the things that happen naturally just for getting out of bed in the morning. When you shoot for excellence, your company will be the sacred "Purple Cow" in your industry and certainly in your town.

Yes, great managers reject average because they know that average comes at the expense of the only acceptable outcome - EXCELLENCE.

Wednesday, February 25, 2009

Boost Productivity With High Morale

Do not overlook the critical importance of having high morale among your staff. People who are unhappy, for good reasons or not, do an overall worse job than those who are happy. Unhappy or dissatisfied employees will be unproductive and make mistakes - even willful mistakes. These people will be more likely to run off your customers and they will bad mouth you to the public. You will pay them hour by hour and day by day to do a poor job and hurt your business until the day that you finally decide to fire them. The worst thing about this is that if you would have done a better job of boosting productivity by boosting morale, you could have avoided all of the bad things that happened. So, the question is: "How do I boost morale in my organization?"

The first thing you must do is ask the staff what's wrong and what's right, what they like and what they dislike, how they feel about management, what they would change about the company, and certainly other questions that are relevant to your organization. You need to take these answers very seriously - especially the trends or the responses that come up over and over again. Let the staff know that you are taking their responses seriously and take appropriate actions on the things that you can change. Communicate the reasons you can't change other things so that the staff at least knows they were considered.

How can you get positive responses that are leading to high productivity and excellent results? Great question! Here are some things you can do and that you really should do right away.

1. Give consistent positive feedback to everyone and for everything that deserves it, even for the smallest things.

2. Sincerely tell people thank you for doing a good job - consistently and often.

3. Don't obsess over the negative and don't panic, especially publicly for the staff to see.

4. Reward success. Set up a reward system for reaching desired targets. These do not have to be in the form of huge bonuses. Small, public rewards and recognitions will go a long way.

5. Give awards such as employee of the month or top performer award.

6. Be super-nice to people. Let them know that you LIKE them and that you CARE about them.

7. Do the little things that cost little and mean a lot. This is different in every office. In my office, it would be something as simple as letting the staff choose different color uniforms when we purchase new uniforms anyway.

8. Train your management team to be supportive to staff and to be expert in their work areas. Expert and supportive managers create high morale among their direct reports.

9. Train employees so that they are expert at their jobs. Highly trained employees tend to have higher job satisfaction because they are equipped to do a good job.

10. Speak nicely of employees in front of their coworkers, their managers, their husbands or wives, and others. Public recognition and compliments make people feel good and want to do a good job. This is very powerful.

Do not under-estimate the power of high morale over your company's productivity. If you ignore it, do not be surprised when you miss the mark. To break records, do the right things to keep people happy and motivated.

Sunday, February 22, 2009

Signs of Weakness in "Leaders"

When leaders panic, business can suffer. That's why I always say that panic is not a quality of leadership. Along with panic, you could add: blow-ups, extreme furiousness, out-of-control or erratic behavior, and any of a number of other reactions of fear and anger.

With all of that said, here's how business suffers. Others will have a tendency to panic. This can range from a person's fear of losing their job and thus losing focus of doing the right job, to people quitting that you would not want to leave, to those that the "leader" lashed out at sabotaging the business, and more. Knowing these possibilities, why would a "leader" behave this way.

Of course, a true leader would never behave this way. Instead, a true leader will always take a step back from a negative situation and evaluate all of the possible causes and solutions. Solutions usually come quick and easy to a true leader. As a result, the leader has no need for panic, fear, or furious anger. A true leader is great to work for in this way. People who do a great job never fear the wrath of a great leader. The leader knows that these people are the key to the leader's success. Those who don't do a great job, also need not fear because the great leader will train poor performers or mistake makers so that those mistakes are not made again. Should they be made again, the only necessary reaction of the leader would be to find someone else to do the job. No other harm done to the rest of the business.

Never panic. Never let other see weakness in you as displayed with fear, worry, erratic behavior, or anger. These are not leadership qualities. True leaders know this.

Saturday, February 21, 2009

Secrets Tips for Getting Hired

I have a unique insight into the business of hiring as I have done it for nearly 10 years. I have seen a lot of things that would make you laugh. So, the first thing I want to do is point out some of the very obvious things not to do if you want to get the job. Again, let me emphasize that all of these things have happened at my office.

1. Don't eat the snack food that is on the interviewers desk. This actually happened in my office. The applicant asked if she could have a piece of the fruit on the desk as she grabbed it out of the interviewers bowl. Not a very good start.

2. Don't bring your child with you to the interview AND ask the receptionist to watch him while you interview. At the very least, this gives you something to have to explain that you might not want to.

3. Don't argue with the interviewer about her interview methods, testing requirements, or just about anything else. Bottom line: you may be right, but in the end will it really matter?

4. Don't have your mother call the interviewer asking why you didn't get the job. Seriously don't.

5. If you're doing drugs - don't. If you are one of the unfortunate idiots that smokes pot or does some other really ignorant drug, don't tell the interviewer that you can't take the drug test because you don't need to use the bathroom, and don't ask upon finding out about the drug test if you can come back another time to take it. Just don't be that stupid - OK?

So, with the amusing, ridiculous items out of the way, the things that follow will give you a significant leg up on the "competition" when you are trying to get a job.

First of all, you need to understand the most important part of any interview - 1st Impressions. Kevin Hogan says in his book, "The Science of Influence," that most people form an impression of you within 30 seconds of first seeing you. This means that you don't even need to say hello. You don't even have to see them coming. Either way, that initial impression is formed and it's very hard to erase if it's a bad one.

What should you do then? Dress to impress. Even if the job requires a uniform consisting of shorts and a t-shirt, you should show up to the interview in a shirt and tie, and even a suit if you have one. You will be showing the interviewer that you're not only serious, but that you are taking them seriously. Also, don't forget to shave, get a fresh hair cut, and look and smell clean. This part seems obvious enough, but believe me when I say it is missed too often.

Next, make eye contact, smile, and give a firm hand shake. There's nothing I hate more than an embarrassing, weak hand shake - especially from a man. Practice this if you need to. It's important.

Once you're past first impressions, you had better have a concisely written resume that sells you to the interviewer. You need to go beyond the standard employment dates and job descriptions. Very important: Connect the dots between you, your history, and the job you want. Very clearly spell out how your background makes you the perfect choice for the position.

What are your Unique Selling Points? You should have 3 to 5 bullet points ready to discuss about yourself that will tell the interviewer exactly who you are and why he/she should pick you. Be confident. Be almost cocky (almost). If the interviewer asks you if you can do something, say yes and even if you're not sure, act like you are.

Prior to the interview, study the company's web site. This will prepare you to ask the right questions during the interview. A good interviewer will let you talk a lot. Don't hang yourself. Have good, pithy questions, and clear, concise answers. Use proper grammar always. Ask the interviewer what he/she is looking for in a candidate. Find a way to be that description. Knowing this answer will help you answer all of the rest of the questions asked of you.

Once the interview is over, give another firm handshake and ask for the job. An accountant once gave me the perfect line at the end of the interview (nobody else has done it since then either). He said, "I want to work for you and I'm the right person for the job." He was too. I ended up learning a lot from that guy. The point? You must ask for the job. Be confident and know that the best way to get anything is to ask for it.

If you don't get the job right then, be sure you say thank you on your way out and then send a card or email later on thanking them again for their time. This message should also reinforce the 5 unique selling points you have for yourself again.

The psychology of this process takes up whole books so I won't go into all of it here. There is clearly a lot more to getting hired, but you should remember the main points here:

1. 1st impressions are critical.
2. Have a winning resume.
3. Ask the right questions.
4. Know your unique selling points.
5. Ask for the job.
6. Send a follow up note reinforcing your USP's.

Read some of Kevin Hogan's books to get more on the very important psychology of these types of interactions. Incidentally, his best book is listed in my 5-Star Book Store.

Good luck!