BabeofBusiness.com

On Friday, August 27th, a report was released that revised the 2nd quarter US Gross Domestic Product (GDP) figure. The report revised the figure downward, from 2.4% to 1.6%. This means that the US economy only grew at 1.6% between April-June 2010. While a growth rate of 1.6% is better than no growth at all or negative growth, it is still an unimpressive growth rate. It is a sign that the economy is slowing. Businesses need to be aware of economic indicators, as they provide crucial clues regarding the behavior of the target markets of their products.

Businesses that sell directly to consumers must know the pulse of their consumers. Right now, the consumer has a very weak pulse. In recent months, many pundits had talked about a recovery. Now, with negative economic information being released frequently, prominent economists are talking about the prospect of a double dip recession, as they consider the first recession to have occurred from late 2007-early 2009. It is difficult for many consumers to believe in this concept. Equity markets did rally from March 2009 until the first half of 2010, but the majority of consumers didn’t see their economic conditions improve during that time frame. The majority of consumers never really recovered from the onset of the recession in late 2007 & 2008. Unemployment increased while the equity markets gained, and the consumer only gauges their economic health by their levels of income.

How should businesses react to a weak and likely to be weakening consumer market for goods and services?

Since the consumer is weak, they are very price conscious. Pricing is likely to be the most significant factor in the marketing mix for many brands now. Price conscious consumers are looking for a tremendous price-value proposition.  In this economy, there have been certain product categories that have shown growth despite commanding premium level prices. However, in other categories, deep discounts have been vital. No matter what level a business chooses to price their products at, it is vital that the consumer perceive value in the price point.

Product promotion is another important factor in the marketing mix. In this economy, many businesses have been looking to cut advertising spending significantly to save money. This is a fundamentally erroneous approach. Numerous studies of previous economic downturns have shown that brands that continued to advertise during a downturn emerged from a downturn much stronger. This should be a time for all brands to examine their media channel promotion strategy and select media channels that provide significant return on investment. It is possible that advertising spending may be cut in this process, but a company will still be engaging in brand building behavior. As always, it is important to select the right channels. The right channels are influenced by the product category, the budget, campaign objectives and the target market. The final criterion is the most important one as the target market needs to be aware of a brand and perceive it positively before deciding to purchase.

Navigating the waters of discouraging economic data is a challenge for all businesses, particularly those businesses that are consumer centric. However, using aspects of the marketing mix can provide remarkable competitive advantages that will enhance revenue and profitability.

I have to confess, I am a wallflower. Yes this dynamic, enthusiastic, creative, intelligent individual writing this blog post is, in fact, a wallflower.

Every time I have been put into a business “mixing” situation I would rather run to the corner and hover with a drink and another friendly business colleague than to walk the room and say “hi” to other people. This includes board meetings,  small business mixers, trade shows and even introducing myself to my audience at larger presentations.

I am sure it boggles the mind that an otherwise successful entrepreneur is almost paralyzed in a room full of almost strangers.  I have yet to meet someone in these situations that has been anything but friendly.

So who’s with me? I know I can’t be the only one that, despite being able to comfortably speak to large groups of strangers from a podium, can barely make it through one evening of personal associations afterward.

Can you sense the frustration and angst? So how do you own the room if you would rather be hugging the wall?  Here’s how I make it through:

1. Treat yourself to a little pampering if it’s to be a really big event - get your nails or hair done.
2. Dress for success! Start by wearing that one outfit that makes you look in the mirror and scream YES! You know the one I’m talking about.
3. Think about who you expect to see there: people representing specific companies; people who have accomplished something in particular; people who have recently made presentations, traveled or been published (even if it’s in the local news!) and so on.  Think about one thing you could say about these people to their faces if you should see them.  ”Hi Joan! I saw a really great review of your restaurant the other day in …”
4. When you get to the event, take a deep breath outside the door, put on a smile and have a plan for walking the room. Yes, it’s okay to get a beverage first, but try to stay away from the food until you’ve talked to at least 10 people - 20 if there is chocolate!
5. Now, walk into the room. Scan, look for familiar faces.  Imagine the room as if there were a graph paper grid - tables in some squares, people in the other.  Don’t focus on the whole room, take one small section at a time.  Your goal is to walk the room, all the squares then diagonal across the middle saying hello to anyone that looks familiar from your preparation of who is expected to be there.  If you’ve planned ahead you’ll know what to say when you see them.
6. Once you’ve hit the “familiar” go out on a limb and introduce yourself to someone new.  Most of the time they will have a name tag so you can ask about their business to get the conversation going. Remember, these conversations don’t have to be lengthy - just enough to get acquainted and maybe trade contact information.

Ready? Set? Get that drink - start walking the grid.  If you follow the steps above you’ll meet people and by the end of the evening you’ll feel like you own the room and can talk to anyone there. You may even find people seeking you out to make the introductions and that is sweet!

I hope this is as helpful to you, at least it should help make these types of situations less daunting.  I’ll be interested to get your feedback.

Tags: business networking, entrepreneurs, women in business

When naming an engine to spur economic development and boost our national economy, most business people default to either business tax breaks or large public works projects. I often remind people to not overlook the U.S. Small Business Administration for the same purpose.

Small businesses create about 60% of the new jobs in America, and its SBA loans that fund businesses to create many of them. New jobs develop communities, recover dilapidated real estate, and spur economic activity that feeds families and generates taxes. These are the kinds of stimulating transactions that actually enlarge the economy and promote prosperity.

The SBA is an economic development agency established in 1953 that among other programs, enables small businesses to more readily access local business financing. Arguably today the financing programs are most the important implemented by the agency, which provide incentives to private sector commercial lenders (banks and certain licensed non-bank lenders) to extend long-term capital financing to qualified, eligible small businesses.

The two primary SBA credit assistance efforts include the flagship 7(a) Loan Guaranty Program, which provides a credit enhancement directly to participating lenders. Secondly, the 504 Loan Program, which provides subordinated financing directly to small businesses from SBA through debentures that are administered locally through SBA-licensed nonprofit Certified Development Companies (CDCs).

There are about a dozen various options under the 7(a) program, which are designed to meet the varying needs of small businesses. The basic program is very broad to cover most business needs, while other programs target particular business niches, such as rural area businesses, seasonal businesses, and veteran-controlled businesses. The 504 loan meets larger capital needs of ‘bricks and mortar’ financing. Go to www.sba.gov to view these options and decide which is right for your company.

Financing assistance in the 7(a) program is limited to loans of $2,000,000, while the more restrictive 504 program has a higher limit, based on the senior lender’s risk appetite. These limits may seem quite accommodating, but realistically have not kept in step with inflation over the years. And, considering the tight capital restraints of most commercial banks today, lower guarantees have made participation too much of a financial risk for banks.

The SBA loan guaranty program has grown steadily over the years as a popular tool for small businesses to obtain capital financing. The program has provided financing assistance to over 80,000 small businesses, totaling almost $20 billion. While these programs declined in 2009 due to economic uncertainty, revitalizing SBA’s reach will be important to getting our economy growing again.

There is a bill pending in Congress this week that will provide small community banks with up to $30 billion of affordable capital with which to leverage up to $300 billion into small business sector financing. Included in this legislation are provisions to raise the limit on 7(a) loans and 504 debentures to $5 million.

Both of these provisions would greatly stimulate capital financing available to small businesses where jobs are actually created in America. New jobs would spur economic growth, and help our country pull out of its current economic stagnation.

Call on your Senator to support the President’s Small Business financing package, and let’s get our economy moving again.

——————————————————————-

Charles H. Green
Small Business Financing Advisor
and author of The SBA Loan Book (Adams Media)
Charles Green Co.

Tags: 504 loan, Adams Media, Charles H. Green, SBA, small business loan, The SBA Loan Book

I just had a chance to listen to a great Webinar on the power of trust presented by Stephen M.R. Covey, and I have to tell you it both reinforced some of my ideas and really stimulated thoughts in other areas. It kind of connected as well for me with some points Seth Godin made in a recent post about Choices.

Godin points out that intentionally or unintentionally we “choose” our customers”. We choose them by how we communicate, which customers we focus on or ignore, how we market and a host of other factors. Up to and including the kinds of people we hire and the people we “partner” with as our suppliers in my opinion.

Covey goes even further. He talks about how trust really isn’t a social driver or personal virtue; it is a key economic driver, maybe the most critical driver in today’s business environment.

When you have a foundation of trust your decision making processes accelerate. You don’t have to debate and discuss and reverify. You move “groups” into teams and vendors into partners. He also says and I agree that trust is the number one contributor to engagement and innovation.

Neither Covey or I suggest that you “trust” blindly. He talks about trust being built on a foundation of two primary pillars:

• Credibility/Believability
• Behavior

Credibility is based on some critical sub-factors including: character-your integrity and congruency((perceived shared values), and your competence- your demonstrated capabilities and results. The key is that these need to be integrated and in sync. Character without competence doesn’t create credibility and neither does competence without character. You must do both.

Behavior speaks to who you are. Not what you say, but how you act or demonstrate those behaviors. He identifies thirteen key behaviors. I won’t go into all of them, but some key behaviors include things like; clear expectations, the extension of trust, practicing personal and professional accountability, and straight talk.

He and I also believe that the ability to build and facilitate trust is a learnable skill, it isn’t something you are born with or without.

The “dividends” of trust are huge. They can be measured in almost every key performance indicator from profitability to retention and productivity.

So I guess I would leave you with a couple of questions to ask yourself about the business relationships you have and you are cultivating:

• How am I choosing my customers?
• Am I reaping a trust dividend or am I paying a trust tax?

As Godin says at the end of the day - we really choose don’t we…….

Tags: character, communication, congruency, Covey, credibility, engagement, Godin, intent, profitability, retention, success, transparency, trust

by Patrick Aievoli - founder digiedcorp.com

There is a term going around today called “Disruptive Technology”. Basically it means anything that truly is groundbreaking. Maybe it should actually be progressive technology with progressive meaning going forward. The industrial revolution was close to 200 years ago and we are still thinking of progress as disruptive? An example of this is the use of tablet computing and eBooks.

Alan Kay of Xerox’s (yes that Xerox, more later on that one) Palo Alto Research Center invented the beginnings of the laptop computer in 1970. Yep forty years ago he came up with what he called a DynaBook. It took 20 more years for even the earliest models to peek out from behind the curtain. Ivan Sutherland in 1969 created a stylus that worked on a computer screen for his doctoral thesis. Larry Paige and Sergi Brin created Google as a thesis project as well. Marc Andreesen created Mosaic as a thesis. Not to mention Adele Goldberg, Grace Hopper and who knows else. I guess academia might just have it right?

Well that does seem to be the case. In articles on both CNN and the New York Times Websites there is a major discussion about the use of eBook readers and the publishing world. Specifically how that world is being impacted by the use of these devices in academia. If you have had a child in college you know the cost of textbooks. You know that’s the bill you never saw coming…like one of those great online videos … you know the one where the Dad pitches to the kid and the kid hits it dead on target, that bill.

The basis for the discussion is, can students learn properly without a physical piece of paper? Hmmm, they seem to be doing okay texting to each other, don’t they? The CNN article speaks about how the iPad (of course my favorite, being a devotee since 1985) is going to campus this fall and are students ready for such innovation? Well one University believes that they are…

It is occurring at my place of work. Long Island University is ordering iPads for every incoming freshman and transfer student. According to George Baroudi, CIO for Long Island University, this device will be well worth any investment, “With more and more books being published in an e-format, the book-reading functionality on the iPad is a huge plus for students. With a battery life of 10 hours and the flexibility to enable students to read on the fly, it’s a game changer,” Mr. Baroudi said. “Imagine having a backpack with 20 lbs. of books on your back, and it all disappears into a single device that contains all your books.” Students can use iPad applications to purchase and download books from several different online publishers.

This line of thought is backed up by our Provost at the C.W. Post Campus as well, “We are developing a framework for communication among faculty members, staff and students that is keeping pace with where technology is taking us in the 21st century,” said Paul Forestell, provost of the University’s C.W. Post Campus. “By giving our students access to cloud computing, we are creating an environment where faculty and the new millennials can more efficiently and effectively collaborate on the process of learning.”

Sorry for the unashamed plug but I am proud to work somewhere where they actually get it. This isn’t disruptive it is progressive. This needs to be done all over. As Gale Stevens Haynes, provost of Long Island University’s Brooklyn Campus states, “We are delighted to put this cutting-edge device in our students’ hands… But this initiative is not about the iPad per se. It’s about our ongoing commitment to ensuring that our students have access to the latest tools to enable them to learn, to compete and to thrive in our rapidly evolving world.”

As I have said all along in every column, it is never about the hardware it is always about the software. And software is dependent on progressive thinking. When I was a graduate student I wrote code that actually displayed color images in a program that was only designed to display black and white images. I didn’t originate the code but I compiled it into my project and voila there was a color image in a black and white presentation. It wasn’t my brilliance that did it, it was progressive thinking and that was close to 20 years ago. I am not a programmer I am a designer, but design is all about solving problems. That is what the software made me capable of doing, solving a problem.

The problem today is greater. If the cost of academia cannot survive another increase and the main ancillary revenue streams cannot either then what’s a content developer (author) or a publisher to do?

This is where the concept of alternative revenue streams comes to play. Academia and any related industry must realize that the business model has shifted seismically. There needs to be a major adjustment. In a recent article the NYTimes shows how one of the founders of Sun Microsystems, Scott Neally, is focused on developing free open textbooks. Also at the same time the Department of Education is establishing criteria for funding that has a definite focus on open educational resources. So if your client (read school) can’t get funding from its main source (read government) unless it uses open educational resources then how do publishers continue in existence?

Very simple, they must develop alternative revenue streams. A while ago I wrote a post about the interactive Coca-Cola vending machines in the regional malls. I wasn’t fascinated by the technology I was fascinated that a major supplier of sugar water had entered the advertising field. Of the screen, two-thirds is dedicated to displaying some form of advertising. Why are they doing this? My guess is alternative revenue streams. Please realize that a can of Coke was 75¢ ten years ago, and now it is only a dollar? How could any company exist on that kind of growth? It is cheaper to sell bottled water. You can only price something to what the market will bare.

By the way, the publishing industry is in frenzy, over this. I was part of McGraw-Hill until 1988 when my division put out a CD-ROM of our main product a 20-volume encyclopedia. The encyclopedia cost $200.00 to produce, while the CD-ROM cost $4.95 to produce. Right then I knew that this industry wouldn’t be around when I was 50. Ta –daa!!! Thank goodness I worked for people who understood that disruptive meant progress. I have been building and teaching how to create interactive media since then and I have never looked back.

Right now most publishing executives are stripped to the waist, screaming, and dancing around a conference table in a Dante-esque like conga-line.

Now that’s what you call disruptive.

by Patrick Aievoli, Associate Professor and Director, Interactive Multimedia Program, C.W. Post Campus of Long Island University and Founder/Managing Partner/COO, DigiEd Incorporated

If you are considering launching your own business you have to get your name and brand exposed to your potential target market. Networking is key. Not only is networking inexpensive but it helps you by making personal connections that can last longer than any newspaper advertisement or radio ad purchase.

The first thing you’ll need for a successful networking campaign is a good set of business cards. Business cards should contain the vital contact information for you and your business. If you have a logo, be sure to include it in the layout. If you don’t already have a logo, now is a good time to get one. You can create a logo on your own, or if you don’t have design skills, you can have a graphic designer create one for you. There are also a variety of websites that allow you to make a custom logo without spending tons of cash. Once you have a logo you can also use it on postcards, brochures or other marketing materials. Making use of the space on the back of the business card is often overlooked, don’t make this mistake. You can place information describing your products and services on the back of the business card.

The next step in networking is, of course, meeting people. Most areas have chamber of commerce groups that meet weekly, bi weekly or monthly. There are also a lot of networking and ‘leads’ groups you can join for a fee. Networking groups can be beneficial because you get to meet people in other businesses that may need your product or service. If they don’t have a need for it, they may know someone who does. Ideally they will be able to refer customers your way.

You can also network your own group of friends and acquaintances. This is a great source of referrals because they already know you and can vouch for your character. You may want to create an e-newsletter and send it out once a month with an update of what is going on in your industry. Be sure to include your acquaintances on your distribution list. This will keep you in their forethoughts and let them know you are an expert at what you do.

Last but not least you should have a brief 30 second statement that concisely describes what you do and can be easily understood by the general public. You don’t want your 30 second statement to sound rote and rehearsed, but at the same time you want it to be succinct and informative. Be sure to carry your business cards with you everywhere you go. You never know when you’ll meet someone who will be able to help your business grow and prosper.

Tags: brochures, business cards, networking, new business ideas, Nextdayflyers.com

Social media can be used to impart an idea, service or product to a specifically targeted demographic. If you have an idea that you want to communicate to the outside world it is definitely worth using the different social media networks that are available online.

When we speak about online social media networks we are talking about any system that enables groups of like minded people to communicate. There are many different types of online social media. They include forums, social networks such as FaceBook and MySpace, miniblogs such as Twitter, and communities that share multimedia content such as YouTube and Flickr. Most of these types of networks are free to use, which is good if you are just starting out. However, you should make sure that you have a positive strategy to prevent the disappointment of poor results.

When designing a social media strategy there are some important things to consider. You need to decide what you want from your social media strategy. This could be anything from gaining feedback on a potential product or service, gaining additional sales, gaining interest and publicity or finding out what people are after, thereby establishing a niche in the market.

Once you have done this, you need to think about your target market and seek out the social networks that will attract your market. For example, if you are offering a debt management service you may want to communicate with a forum that helps people in debt. The main advantage of using online social networks is the many different types of social media that cater to a variety of tastes. There are many online web content and news feeds devoted to subjects as diverse as dominoes, knitting and ballroom dancing. Your target market is out there; you just have to find it.

Having said this, you will need to think about how may sites you want to target. This will depend on the specificity of the subject matter. Think from the online user’s point of view. You need to strike a balance between getting the information out there and not appearing on every single network. You don’t want people to ignore you because they have seen it all before. Target the key social networks in the first instance and monitor the results carefully.

Then you need to think about what you want to say. If you are selling something or offering a service then you need to think very carefully. Internet users are bombarded with thousands of advertisements every single day and as such may switch off to a typical sales pitch. Be honest, realistic and clear about what you are trying to communicate.

Think about how you are going to monitor the resultant feedback. It is worth setting up a system whereby you ask people that contact you where they got your details. This is a simple but effective system. Give your strategy time to generate an interest, review the results in 6 – 8 months and don’t be afraid to change your strategy if it is not working out.

Tags: Facebook, news feed, social media, social network, Twitter, Web content

There is nothing quite as refreshing as escaping to the great outdoors to cook, relax or play; that is, until everyday activities become somewhat problematic because…well, you’re outdoors. When away from the comforts of a kitchen, garage or living room, an easy task such as toasting up a yummy snack can quickly turn into a lesson in Survival 101. This week’s Featured Start-Up is aiming to take the grrrr out of grrrrilling and other outdoor activities. Read on to learn more about Grate Outdoor Solutions from founder Matt Wegner.

Please tell us about your start-up Grate Outdoor Solutions. What makes it unique? And how does it fit into the marketplace?

[Matt Wegner] Grate Outdoor Solutions, LLC was founded by three friends with a love for the outdoors. Our products are designed to enhance the outdoor experience for all whose lives are touched by our products. Our products make us unique. We provide unique solutions to common problems through products like the Original Rotis-a-Prong® which solves all the traditional problems found in traditional campfire roasting forks. Our fit in the marketplace is providing niche products to everyday people looking to get a little more enjoyment out of their camping & outdoor experience.

How do you promote a business such as this?

[Matt Wegner] Our products lend themselves to word of mouth advertising, and we promote primarily through social media and our web presence. The stuff we make is unique and “gadgety” so people like to talk about them (and show them off). That approach is a perfect fit for the identity and personality of the company.

Did you write a business plan? How did you fund the launch of your business? Are you currently seeking investment?

[Matt Wegner] We have a very simple business plan, focusing mostly on low-cost or no-cost marketing to drive sales and revenues while keeping expenses and overhead low. We funded the business with a small investment from each of the partners. It was very important to all of us to start and maintain the business debt free. So we do things the old fashioned way: we work hard, we sell hard, we play hard, and we reinvest our earnings to grow the business. And we don’t borrow money. It’s a lot easier to be profitable when you don’t have massive loans weighing down your start-up.

Is this your first start-up venture? What other businesses have you been involved with?

[Matt Wegner] This is my second start-up. I also own and operate a successful financial and small business coaching firm where we teach our clients how to become debt free and stay debt free. We help them develop spending plans (budgets) that actually work, eliminate debt, and save for emergencies before investing for retirement. We don’t sell investments or insurance, nor do we endorse debt consolidation, debt management plans, or bankruptcy because we believe those are all quick fixes to your situation and don’t address the root cause of the financial problem.

What resources have you utilized for start-up assistance and advice (both on and offline)

[Matt Wegner] Other than business blogs, networking, and research we didn’t really look for a lot of outside help. Being a business coach as part of my other start-up, I used a lot of my knowledge to start this business. We did hire one business coach who I use for my other venture (even I as a business coach use a business coach). But we did most of the work on our own with free online resources and our own knowledge. Between the three partners we have a collective thirty plus years of manufacturing experience so we have a good idea of how to implement processes and systems. It’s the well rounded team with a lot of experience that makes us great.

If you had to start all over again, what are some things you would do differently?

[Matt Wegner] Timing is pretty important in the camping industry – since it’s so seasonal you have to be on top of your timing to launch products at the right time. We were a little late with our initial product launch and we missed the spring rush when a large part of our market was upgrading their camping equipment and purchasing products for the summer. We now have a better understanding of the marketing cycles and the proper timing for maximizing success on future products.

What customer(s)/demographic(s) do you serve?

[Matt Wegner] We serve anyone who enjoys camping or the outdoors – that’s a great market segment that we connect with because we are personally part of that market segment. Our favorite customer is the person who loves to enhance their experience at the campsite by owning the best equipment. Not only are we able to give them a better outdoor experience but they are the proudest owners of our products and they often are the ones who get the most out of what we make.

Follow the company on Facebook!

Tags: camping supplies, Grate Outdoor Solutions, Matt Wegner, Rotis-A-Prong

Go ahead and take a look around you. Tell me, what do you see? Chances are you’ll find people with their heads down. On the street. In the elevator. At a stoplight. Texting. Updating their Facebook status. Tweeting about what they just had for lunch. Recommending a friend on LinkedIn.

Now don’t get me wrong. I’m not here to bash social media or modern technology as we know it. In fact, my agency recently launched a comprehensive branding effort for a client that featured a spot running not just on television, but across multiple social media channels as well. And the results were huge.

So yeah, I’m well aware of the game-changing capabilities of social media. I’ve seen how powerfully and immediately it can connect brands and consumers. I was blown away by what Modernista! and BooneOakley did with their sites. That was truly cutting edge and cool stuff, which is something you don’t see every day in our business. Especially, when it comes to agency self-promotion.

Hell, I even met my lovely wife on a social networking site. That right there is enough to make me a lifelong advocate of the medium.

So like I said, I “get it” when it comes to social media and mobile networking. I just don’t think it’s the same as good old-fashioned, face-to-face communication and real-life hands-on interaction. Moreover, I don’t think it ever will be.

There’s just certain things you can never replace. And the value of an intimate, face-to-face sit down is one of those things. The human connection can be replicated over social networks like Facebook or, better yet, video conferencing services like Skype. But a facsimile is never the same as the real thing.

And that’s where this incredible explosion in social media and mobile devices has me worried. While I marvel at the power, speed and creativity inherent in these new technologies, I’m concerned we might all be losing a bit of our ability – and even more troubling, our desire – to connect with one another in person. And that, by extension, us advertisers and marketers will lose a bit of that talent and skill as well.

So here’s an idea. A humble solution, if you will. Let’s put our mobile devices down for a minute. Let’s pull our hands off our keyboards for a moment. And let’s use more than just our thumbs and fingers. Let’s use our entire hand. Preferably the dominant one (though they say experimenting with your “off” hand boosts creativity).

Let’s use it to pick up the phone and schedule a lunch meeting. To shake another hand prior to that meeting. To raise a glass in a toast during that meeting. To hand-write a Thank You card after that meeting.

Before you know it, you might even be using it to sign an agency of record agreement. Or high-five one of your partners.

Sorry, but there’s just no app for that.

Author: Ian Mavorah, President + Creative Director | KAOS Advertising

From Madison Avenue to Michigan Avenue to Brickell Avenue, Ian Mavorah has been around the block. After 15 years crafting campaigns and growing global brands, Ian launched KAOS in 2004, adding the words President and Creative Director to his business card. Headquartered in Miami, KAOS is a branding + advertising boutique that helps companies define their culture and build their brands with a decidedly non-traditional approach.

ian@kaosadvertising.com

Tags: Facebook, how to brand, Ian Mavorah, KAOS Advertising, LinkedIn, Skype, social media, Twitter

As a consultant and executive with my formative background and education in human resources management, I typically have a semi facetious response to executives and business owners who ask me what differentiates great companies from “good companies”. My response is “It is the people, stupid!” The organizations with the best people aligned in the best way always win. This is especially important to those you running small businesses, where every hire is a critical hire!

So how do we define the best people? I have a couple of recommendations for my clients.

• Identify Key Attribute for Success and Hire “Right”
• Incorporate Responsibilities Into All Job Descriptions
• Provide Appropriate Training
• “Retrofit” Skills and Attributes of Existing Staff
• Coach and Mentor

So what do I mean by all that “HR stuff”? Very simple, I want everybody on my team to share some common attributes:

• Commitment To The Team
• Ability To See The Big Picture
• Ability To Learn And Share New Skills
• Listening For Key Information

If they can’t or won’t do these things or lack these attributes, I don’t want them on my team – period.

There are reasons why I have focused on attributes rather than skills. You have probably heard some of these before but they bear repetition.

• You can teach smart people to do almost anything!
• It is hard to teach people to be smart!
• People who are committed to your mission will reflect it!
• Changing people’s core values is very hard!

Again, in my sarcastic way, I have compared trying to violate these “truths” to trying to teach your dog to sing. It just exhausts you and it pisses the dog off.

People who know me would tell you that patience is not always one of my most noticeable virtues. However, when I have been called in to “retrofit” a number of cultures, I believe there is a very respectful way to go about doing that – a way that requires patience to bring about the desired changes. I believe that companies have the right to define their cultures as long as they do so within the context of the law and are respectful to all employees.

While businesses and most organizations are not democracies, I do suggest to all business owners and leaders that, beyond the attributes that I mention above, they need to ensure that everyone in a leadership role either possesses or is trained in some key skill sets:

• Establishing Clear Performance Expectations
• Giving Periodic, Constructive, and Clear Feedback
• Taking Appropriate Corrective Action

I can honestly tell you that, if 90% of management had mastered and demonstrated these skills on a consistent basis, at least half of the management consultants in the world would be unemployed. You will notice that none of these skill sets address technical skills like financial analysis, marketing, etc. That is not an oversight. Technical skills are task competencies and can be taught. You can have excellent technical skills and be an awful manager. If you don’t believe me, ask staff if they would rather work for a manager who consistently performs my list or a manager who is technically “gifted.”

I believe that employees have an absolute entitlement to four and only four things-

• Respect For Individuals
• Clear Expectations
• Meaningful, Balanced Feedback
• Equitable , Clear Reward System

People have said to me “What about empowerment and development, and mentoring?” I think those things are awesome and contribute to growing organizations and reinforcing commitment, but the first four are absolute entitlements that form the basis for the others.

I also encourage clients to “re-recruit” existing staff using the following model:

• Train Current Staff Must On New Competencies And Expectations
• Compliance Works Short Term But Commitment Is Essential For The Long Term
• Retrain, Re-Assign, or……..
• Remember WIIFM (What’s in it for me!)

In the long term, you simply cannot tolerate performance that won’t or can’t meet your expectations. Asking or forcing people to leave your organization is hard on them, on you and on their colleagues, but leaving them in a role where they are not thriving or happy is worse. That’s why I suggest we hire right up front. If you do you reap the rewards.

In the words of Jack Welch-

“If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don’t have to manage them.”

Now you have to admit, that it is a pretty exciting thought!