BEL L W ETHER Top Ten Myths About Business Volume 1 | Issue 1 | Fourth Quarter 2010 Why Go MOBILE? By Alicia Anderson When Projects Fail By Alicia Anderson Is There A Recipe for Building Great Customer Relationships? By David VanToor By Ed Kless www.bellwethermagazine.com
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BELLWETHERTop Ten Myths About Business
Volume 1 | Issue 1 | Fourth Quarter 2010
Why GoMOBILE?
By Alicia Anderson
When Projects FailBy Alicia Anderson
Is There A Recipe for BuildingGreat Customer Relationships?
Bellwether Magazine is published by Blytheco, LLC with principal offices at:23161 Mill Creek RoadSuite 200Laguna Hills, CA 92653
If you wish to be removed from the mailing list or to add names to the mailing list, send your request, including name, business name, and mailing address to the above address or to [email protected]
This is a copyrighted publication and all articles herein are covered by this copyright. Any use of the content for commercial reasons or other form or reproduction of material herein is strictly prohibited without prior, written approval of Bellwether Magazine.
What would you do if your company was losing profitability? With the economic changes we
have seen in the past few years, many business leaders are watching the bottom line more closely, and seeking strategies to propel them out of the doldrums and into successful performance.
Organizational change begins with creativity. As a leader, you have to tap into your creative power to find innovative solutions to the problems you face. Accessing the creativity that we all possess requires that we approach challenges without anxiety and with the desire to learn, change and grow.
Kenneth Williams, CEO of The Shred Authority, won the Rising Entrepreneur of the Year award at a recent Kellogg School of Managment Alumni conference. The Shred Authority, a document destruction company based in Chicago, underwent a complete turnaround after Williams purchased the company in 2005.
Among the strategies Williams used to turn the company around were: a branding campaign focused on the new mission and leadership of the company, a renewed commitment to quality customer service, and a structured financial plan that emphasized measuring progress.
We asked Williams a few questions about his creative approach to his company’s turnaround:
FEATUREDARTICLE
How did you get involved with The Shred Authority?
I had been working with companies like Morgan Stanley Dean Witter and Citigroup, using my entrepreneurial skills to help them develop new businesses and save money. I met a guy from Chicago on a plane to Dallas – he had a shredding business and was interested in a partner to help him out. We became friends, and two weeks later I was in Chicago meeting with his management team.
How does creativity fit in your business model?
Creativity is 90% of what we do. Each client we take on gets a completely custom approach to their business and we create processes just for them. We disregard the “rules” about how customers are treated and approach them like we are employees of their business. For example, one of our employees recognized that a customer had a piece of equipment onsite that they were no longer using – the customer was not aware of it. The employee had the equipment removed, saving the customer money. The customer was surprised that we would do this without being asked to, but that’s the way we operate.
During the transition, our employees were challenged by being empowered to create their own solutions – they had been used to being told what to do. Now, when our clients say “Jump,” they ask “How high?” They have a few foundational rules, but as long as they stay within them, they can do whatever they need to do to satisfy our clients.
What did you learn when transitioning your team?
I always second-guess myself on purpose now. For example, when we interview a new employee, I prefer to set up a “team interview” and have others join me, just in case I’m having a bad day or got up on the wrong side of the bed. Most of the time, the team just confirms my instincts about the person, but I don’t want to take the chance of misjudging someone.
How do you manage personal anxieties about your strategies?
I guess I don’t give myself time to really think about it. I try to focus on one thing at a time – in my case, I prefer to look at the trees instead of the forest when tackling everyday challenges.
I also prepare for every possibility and manage risk, which minimizes the anxieties brought about by “surprises” in my business. I find our weakest links and prepare against them. And I don’t take it personally. Recently, one of our subcontractors left to start his own business. People asked me “Aren’t you mad he did that?” – of course I’m not mad, I’m happy for the guy! I know it’s not a personal affront to me. And, I was prepared for that to happen, so it’s no problem.
Q&A with kenneth williams
Turn-Around
by Alicia Anderson
7bell•weth•er -noun: one who takes initiative or leadership
“Never regard study as a duty but as an enviable opportunity to learn to know the liberating influence of beauty in the realm of the spirit for your own personal joy and to the the profit of the community to which your later works belong.”
Albert Einstein, In the Princeton University freshman publication, ‘The Dink’, December 1933
A lot of people say they are life long learners, but what does that really mean? For the majority, I think it is an acknowledgement that they must spend their precious time here learning something new. But how far can we take that? Should we learn something new everyday? And who are the benefactors?
Being a leader often challenges us in unique ways. We struggle with questions like:
• How should I act?• How will I be perceived• Will others like me?• How do I motivate people to do what I need them to
do for us to be successful?
“What is most important here is your presence as a leader” says mentor, leadership expert and co-founder of Healing Leaders, Howard Hansen. Hansen coaches that the most important thing a leader can do is focus in on developing themselves and not worry about others.
Why would this help you? As so many people struggle with work life balance questions and leaderships challenges, we forget that the most important thing we can bring to any situation is a calm and rational self. When we are in this state of mind we can be creative to come up with solutions that
can help others get to a more creative and less anxious state.
The balance all begins with you.
WORKLIFEBALANCE
YOUR
“What is most important here is your presence as a leader.
by Apryl Hanson
Bellwether Magazine | Fourth Quarter 20108
In the market we are in today, is the sales process any different than it was thirty years ago? Most
would say yes, but let’s compare to determine how things have really changed.
• Buyers Education Level – Most people would say that with our vast access to information, consumers today have a much higher education level than those who were purchasing 30 years ago. To some extent, for some of the population, I think we do have a more educated buyer but for the most part I think what we’ve created is a more confused shopper. With information overload and a lot of blogs with personal opinions, a consumer may not know which way is up. Tip: Educate your prospects based on their level of understanding of your subject. Get to know where they are in the process, how much research they’ve done, and what their understanding is before proceeding into the sales process.
• Price Sensitivity – I don’t think our current financial
situation has created more price sensitivity than there was thirty years
ago. What is creating the perceived price sensitivity is that the perception of value is more
scrutinized as word of mouth is more generalized. Word of mouth today is in customer case studies, tweets, video testimonials, blogs and so much more. People aren’t sure what marketing hype versus actual reality is. Tip: Establish a trusting win-win relationship with your prospect and you won’t have oversensitivity to price. If your prospect truly trusts you and your knowledge and experience they will gladly pay a fair price.
• Finding Appropriate Consumers – Because of the availability of information on the internet, it is easy to post lots of information and receive leads, but how many of these are quality? Thirty years ago we used word of mouth and direct mail pieces; neither were flooded contact methods so although prospects were fewer in number the quality was much higher. Now sales people have to go through a lot of leads in order to get
to the ones that are qualified. Tip: Find ways to categorize all of the prospects you receive into your business, and set up standard ways of communicating with them based on how they came to find you.
Some things are different today than they were 30 years ago, but the bottom line is to emerge with a plan to tackle these potential challenges and make them work for you.
If you have a sales challenge or a successful sales story you would like to share with us please do so at: [email protected] and we may include your information in our next edition.
ThisMarket
“I think we do have a more educated buyer but for the most part I think what we’ve created is a more confused shopper.
SALES&MARKETING
by Apryl Hanson
9bell•weth•er -noun: one who takes initiative or leadership
Key provisions of the health reform legislation
passed by Congress in March, 2010 are
already beginning to kick in. We’re looking
at just a few of the ways businesses are already
seeing impacts of this law.
The Affordable Care Act offers a tax credit to small
businesses who pay at least half the cost of insurance
coverage for their staff in 2010. From 2010 to 2013,
the maximum credit is 35% of premium, and goes
to businesses with ten or fewer full-time employees
who pay average wages of $25,000 or less. The
credit decreases gradually as a company’s number
of full-time employees increases, and/or as average
wages increase. Starting in 2013, companies get
the credit for only the first two years for which they
provide coverage and must purchase the coverage
from a state exchange plan.
Starting in 2014, companies with 50 or more
employees that do not offer affordable “minimum
essential coverage” or pay at least 60% of coverage
costs for employees will be subject to a penalty if
a full-time employee buys insurance from a state
exchange plan. Individuals who do not maintain
health coverage will be subject to penalties starting
in 2014.
Business will also need to meet new reporting
requirements as a result of the legislation.
Beginning in 2011, the value of an employee’s
company-provided health care coverage will need
to be reported on W-2s. Insurance companies will
also be required to provide coverage information
to individuals and to the IRS, and the IRS will begin
notifying individuals who fail to enroll in the minimal
required coverage.
Visit the IRS website (www.irs.gov) or speak to your accountant to learn more about how this new law will continue to impact your business.
Health Care Reform Basics for Small Businesses
by Alicia Anderson
Bellwether Magazine | Fourth Quarter 201010
“If your team has not defined the anticipated benefits of a new system, your project will suffer from lack of direction.
FAILWHEN PROJECTS FAIL
FAILINDUSTRYNEWS
While recent news about Marin
County, California’s decision to
scrap their $30 million SAP project
has deteriorated into filing lawsuits and finger-pointing, the
story still has lessons for those of us working on less visible,
less politically-charged projects.
Marin County had contracted with Deloitte Consulting to re-
place the local Civic Center’s pencil and paper accounting sys-
tem with SAP, but the project failed, and the county is now
suing Deloitte.
Analysis on Michael Krigsman’s “IT Project
Failures” blog on ZDNet (www.zdnet.com)
cites both “Marin’s apparent lack of organiza-
tional and governance maturity, and its inabil-
ity to absorb business transformation changes
associated with this implementation” AND
“Deloitte’s posturing and unwillingness to ac-
cept even partial responsibility” as reasons for
this undesirable result.
Two key lessons here are: the importance of
clear project expectations and the value of
participation of stakeholders.
In any business technology implementation,
both parties (customer and vendor) need to communicate and
document every expectation, from total project costs to func-
tionality provided. Unclear definition of functional needs and
expected results are two of the biggest mistakes companies
make in selected ERP systems and providers.
If your team has not defined the anticipated benefits of a new
system, your project will suffer from lack of direction. Keep in
mind, however, that no system can fix every business problem
overnight. Business challenges are often the result of years of
neglect or mismanagement, and it is important that realistic
objectives be set about the capabilities of any new software
system.
Successful projects must involve the right system users and
administrators. If customers don’t have the right people on
board, they should get them and get them involved BEFORE
launching a project. Business management software is no lon-
ger strictly an IT decision. Since ERP software can affect ev-
ery functional area of the business, systems decisions are now
strategic business decisions. Management must be involved,
as they serve as the visionaries and advocates for the project.
A committee or task force composed of key players may also
be assembled to provide guidance. Communication with the
staff throughout the project can keep employees engaged and
supportive of the project. Providing them periodic updates en-
sures that users feel invested in, and positive
about, the new system.
Krigsman, CEO of Asuret Inc., a Massachu-
setts consulting company dedicated to re-
ducing technology implementation failures,
writing on ZDNET has it right:
“Note to software vendors and system inte-
grators: A substantial number of your cus-
tomers, especially those who are smaller, only
purchase ERP once in many years; these folks
require more education than you typically
provide during the selling process. Situations
like this make clear that something is deeply
wrong with your approach to sales and consulting.
Note to enterprise buyers: There is no escaping that you are
ultimately responsible for the success or failure of your project.
That said, when you hire services vendors be sure the contract
includes provisions that connect cost and time to achieving
successful results. If your vendors don’t have skin in the game,
then go elsewhere.”
Read more about the top mistakes that companies make when
implementing new ERP systems, so you can avoid them in your
11bell•weth•er -noun: one who takes initiative or leadership
The New York Times recently featured several compa-
nies who found creative ways to keep giving through
hard times while cutting back on actual cash donations.
A moving company used its trucks to collect supplies for
the victims of Haiti’s earthquake; an IT company spon-
sored a golf tournament, helping a local charity and gain-
ing an opportunity to entertain clients at the golf outing.
Serving charities helps others, but it also boosts em-
ployee morale and can help businesses create valuable
relationships and increase visibility in their communities.
The Better Business Bureau Wise Giving Alliance offers sever-
al tips on how to maximize your company’s charitable giving:
• Check out the charitable organization - before giv-
ing, verify your target charity is a legitimate orga-
nization and be sure you are comfortable with how
they will use your donation. Use the Better Busi-
ness Bureau or Guidestar (www.guidestar.org) to
review charities’ history, leadership, and strategy.
• Get creative – Evaluate alternatives to cash donations. Can
your company offer its services to a charity at no charge,
or would you be willing to offer employees a day off dur-
ing which they would work for a non-profit organization?
• Take the tax break - talk with your accountant
about taking the tax deduction allowed when
donating to a charity with 501(c)(3) IRS status.
• Plan it out - with so many worthy causes and reputable
charities needing help, it may be hard to choose how
best to use your limited resources. Put some standards in
place about what’s important to your company. Having a
plan for focused, directed giving helps your budget and
means you make more of an impact with your donations.
• Get employees involved. Solicit feedback from your
staff about what causes are meaningful to them,
and brainstorm about ways they can help. Maybe
they are willing to sacrifice the annual holiday party
in favor of a donation of cash or services to a charity.
Supporting communities has always been part of Blytheco’s
culture - for years Blytheco teams have worked with groups
like the American Cancer Society and others to raise money
and awareness for important causes.
To commemorate Blytheco’s 30th Anniversary, the com-
pany has integrated community support into our re-
cent “1,000 Hours” initiative, while also creating a spir-
it of the “rising tide” that lifts all our business boats.
The goal of 1,000 Hours is to create $1,000,000 worth of
measurable results in clients’ businesses with free consult-
ing work, and to generate $100,000 in donations from the
business community to selected charities from those com-
panies who receive free consulting. Here’s how it works:
• Companies apply for 8 hours of free consult-
ing service, with a specific project in mind that
will provide a measurable ROI to their business.
• Applicants agree to donate to one of Blytheco’s select-
ed charities, choosing from the American Cancer Soci-
ety, Liga International – the Flying Doctors of Mercy, or
the Make-a-Wish Foundation.
Getting creative with your organization’s charitable giving
plan can help you maximize the value of your donation, re-
energize your team, and create valuable relationships in your
community. If your company has found a creative way to give
back, let us know! Maybe we’ll spotlight your company in
the next issue.
There’s no doubt the nationwide recession has made a serious impact on corporate
giving. With layoffs, reduced sales, and increasing costs of operation, many small
businesses have been forced to reduce or eliminate charitable contributions from
their budgets. A Giving USA Foundation study from 2008 noted that corporate giving
decreased by 4.5% in 2008 and the slump continues as the economy struggles to find its
feet.
INDUSTRYNEWS Small Businesses Get Creative and Find Ways to Give
by Alicia Anderson
Bellwether Magazine | Fourth Quarter 201012
So you can’t keep your hands off your Blackberry, even after work hours, and it seems like everyone
on the street is texting. It’s clear that mobile tech-nology is making a huge impact on the way we live. Because of the fragmentation of the mobile market
(which continues to drive low pricing for phones and service), and the expanding presence of wireless ac-cess, we are online more than ever.
Who is using mobile technology, and why?
Consumers have adopted mobility en masse as a way
to keep up with the flood of information they receive
daily. A Pew research study from May 2010 shows that
40 percent of Americans use mobile devices for email,
the web, or texting – an increase of 8 percent over 2009.
They rely on smart phones to keep up with friends, fam-
ily, and businesses, and vendors are racing to create
mobile applications to keep their companies at a cus-
tomer’s fingertips.
About eleven percent of the Pew study respondents have
purchased a product using their phone. Mobile commerce
is driving and responding to this demand, and the ability to
make payments using only the phone will likely soon make credit
cards obsolete for many consumers.
Businesses are also using mobile technology to interact with other busi-
nesses. The ability to use email and the internet while on the road has
enabled business people to remain productive away from the office.
COVERSTORY Why GoMOBILE?
by Alicia Anderson
13bell•weth•er -noun: one who takes initiative or leadership
They can work on documents, correspond, and sched-
ule appointments with only their phone. Business appli-
cations that allow for more sophisticated work are im-
proving productivity even more, while blurring the line
between “work day” and “personal time.”
When thinking about a mobile strategy for your B2B company, consider:
Your employees:What do they need to be produc-
tive while traveling or working from
home? Salespeople should have the
ability to check customer contact in-
formation and order status so they
can manage their time effectively.
Mapping tools and inventory insights
are a bonus for the “road warriors” in
your company. Executives and man-
agers need dashboard and reporting
capabilities so they can make deci-
sions quickly while on the road. Look for reliable mobile
business tools that look like what your team uses at the
office, to minimize the learning curve and encourage
user adoption.
Your customers:What types of mobile technologies would your customers
benefit from? At a minimum, your website should be
mobile-compliant, or have a mobile-friendly interface,
so customers trying to reach you from their phone have
a positive experience. Also think about “apps.” Could
your company create a mobile application that would
make it easier and more pleasant for mobile customers
to reach you? The level of customer satisfaction and
increase in sales these tools could provide could be
significant. These relatively inexpensive strategies are
a way for small to medium-sized businesses to level
the playing field, enabling them to look like a larger
company with an impressive mobile presence.
Your business:Mobile technology has significant positive implications
for businesses, but like any company initiative, your
mobility must be managed. Formulate a strategy for
setting up mobile infrastructure. Create a company
policy around mobile phones and negotiate with
vendors for the best billing options. Consider the IT
Department’s needs; they should approach phones like
“mobile terminals,” and work to implement security
controls just like those used for in-office equipment.
And keep in mind - don’t let your
phone manage you. Look up once
in a while and take a breath. Getting
perspective on your life and your
work can energize and refresh you
more than another online check of
the headlines, and your positive
energy is one thing that still can’t be
delivered via text.
“At a minimum, your website should be mobile-compliant, or have a mobile-friendly interface
by Alicia Anderson
Bellwether Magazine | Fourth Quarter 201014
This question was asked recently on an online discussion board I’m a member of, and as I thought about it more, answering it seemed to be a great way to begin my contributions to this
publication.
The discussions on the board covered the expected range of opinions including building trust, credibility and listening. Some contributors suggested there was no recipe - that every customer interaction is unique.
Personally, I believe there is a recipe, or at least a broad framework for building great relationships. But first, let’s be clear what question we are answering.
For the sake of brevity, I’m going to assume that most of us, when we see the phrase “Great Customer Relationships” infer a longer-term quality relationship which exists based on mutual benefit to both parties.
That being the case then, I’m going to discuss three key elements: caring, product and communication.
CaringNot a word you’re likely to find in the Goldman Sachs procedures manual, but the most basic element in creating a business based on relationships.
Do you actually care about your customers?
I think that most CEOs today would say “Yes.” I also think that most are not answering the question honestly. Or at least they are not answering accurately. They are confusing the question with “Do you care about your customer’s money?”
To actually care about your customers means that you are probably providing a product or service that you are actually passionate about. Sadly, that does not describe the majority of CEOs.
The reason this is critical is that caring, or empathy, or concern - or whatever synonym you use - is the foundation of meaningful human relationships. A relationship with a customer without caring may be profitable. It may meet some company objectives. It
may help you meet quota. But it is not going to be great.
Product or ServiceThe reason that a vendor to customer relationship exists is the product or service that is provided. Therefore the quality of that product or service is critical to the quality of the relationship. From a customer’s perspective, there is a simple definition of product quality.
Is There a Recipe
for Building Great
Customer
Relationships?
byDavid
van Toor
15bell•weth•er -noun: one who takes initiative or leadership
CUSTOMERRELATIONSHIPS
Does it solve the problem that I bought it for, without creating other problems I did not want?
If your product does not do this, then forget about building great customer relationships. If your product does not do this, then your relationship is based on deceit, at least in the mind of your customer.
Fix your product or service first. Solve your customer’s problems simply and effectively. Then you can move to building relationships.
CommunicationAs George Bernard Shaw once said, “The problem with communication is the illusion it has occurred.” Communication is often mistaken by corporations as informing. Relationships involve the mutual sharing of information.
Do you, in your business, provide as many ways for customers to meaningfully interact with your organization in ways they want to as you have for sending them information?
The key words in the above question are in ways they want to. Do they want to know your product direction? If so, then can they interact with your Product Marketing department?
Do they want to be able to talk with other customers? If so, what tools do you provide to allow that?
I’ve really only scratched the surface of creating Great Customer Relationships, and will continue this theme in other articles. If you agree or disagree with anything I’ve written hear, please let me know at [email protected]
David van Toor is the founder of No Plan B LLC, a business-to-business consulting firm specializing in the development and implementation of new processes that ensure the delivery of a profitable, and consistently unique, customer
experience. Prior to creating No Plan B, David spent over 15 years in executive leadership positions with public software companies in the US and overseas. Most recently, David served as Senior Vice President for Sage Software in which he led the development and execution of a succession of product lines, culminating in his role as General Manager of the ACT! and SalesLogix CRM Products.
A long-time evangelist of the customer experience, David is an advocate of using Web 2.0 technologies to create transparency of businesses to consumers, thereby opening the lines of communication between businesses and their customers. David has been commended by industry analysts for creating Sage Software's ACT! Online Community, which gave ACT! customers the opportunity to have direct access to Sage executives, while also allowing Sage executives a more dynamic view of the issues most important to their customers. Within its first twelve months of operation, the ACT! Online Community had over 8.9 million page-views and drove a 20-point increase in its customer loyalty scores.
Recognized by business industry leaders and analysts alike for his provocative and innovative leadership in the customer communications arena, David continues to develop new methods for businesses to strategically approach, and monetize, the Customer Experience.
“The problem with communication is the illusion it has occurred.
Bellwether Magazine | Fourth Quarter 201016
STATEOFTHEECONOMY
News on the economy is a mixed bag this fall. Some indicators are turning positive while some still lag.
On the positive side, the performance of the stock market signals growth, companies like eBay and Caterpillar are providing strong earnings forecasts, and retail sales are up. However, the job market still shows little improvement. Credit is hard to come by for many, but it’s cheap for those who can qualify, with interest rates at historic lows.
An October, 2010 survey by the National Federation
of Independent Business (NFIB) showed a .2 point
gain in its Index of Small Business Optimism – still in
recession territory, with hiring, capital spending, and
sales numbers all declining in the previous three month
period. If the recession ended as of June, 2009 (as the
National Bureau of Economic Research stated), small
business owners have not all seen the light at the end of
the tunnel quite yet.
What are some key strategies for businesses navigating these murky waters?
1. Keep listening to your customers. The ability to quickly assess and adapt to customer needs is not going
away, and companies with this ability will thrive regardless of our economic environment.
2. Spend wisely. Don’t stop serving customers adequately. Just be prudent – find creative ways to cut costs
without impacting service quality.
3. Sell strategically. Determine what types of customers are most profitable for you, and acquire more of
them. Not all customers have the same value.
by Alicia Anderson
17bell•weth•er -noun: one who takes initiative or leadership
Have you been avoiding a social media strategy because
it seems overwhelming, or because you don’t think that it
will lead to positive results for your brand?
Don’t miss out on a great opportunity to take your brand
to the next level. Below are some tips to consider when
developing your strategy:
Who is responsible for social media strategy? One
assumption is that social media is everyone’s responsibility
in the company. While that may be true, if it doesn’t
have an owner, you won’t have a strategy. Find an owner
who is responsible for the overall strategy and can take
responsibility for getting participation from your executives
and employees.
Give your employees a voice
and empower them to use it.
Hold classes to teach employees
what types of social media avenues
are appropriate and what messages
you want to send. The Social Media
“owner” can engage employees to
respond to conversations based on their
expertise, knowledge and passion.
Understand who your experts and
influencers are. You should find a way to
document your internal expertise and even acquire certain
knowledge if needed. Also, find out who your influencers
are in your industry and find ways to engage and interact
with them socially.
Work with a tool that allows you to listen to
conversations about your key words. If you have key
words that you’ve identified for your website, find a
tool that helps you listen to the conversations that are
happening in social media around those key words.
This will help you find influencers. Resources like www.
tweetdeck.com or www.hubspot.com have great tools to
develop social media strategy.
As social media is gaining speed, many of us are left wondering how we are to navigate these waters when it comes to employees, clients and brand management. The social media experience is driven by each
individual, their opinion, and their relationships. So when it comes to brand management and relationships with your employees and clients, driving a social media strategy may seem a little like herding cats.
by Alicia Anderson
by Apryl Hanson
Bellwether Magazine | Fourth Quarter 201018
1. Business is a zero-sum game. Oliver Stone makes
great movies, but he knows nothing about basic
economics. Free and fair exchanges create wealth
(value) on both sides. In other words, business is a
positive sum game (win-win).
2. Price is based on cost. Cost is but one factor
that truly great pricers take into account. Other
factors include: perceived value of the customer,
risk, timing, and scarcity. In fact, cost is the least
important of those mentioned
3. Excessive profits must be because the company
is doing something evil. First, just what is
excessive? Second, the truth is that profit is “an
index of your altruism,” as George Gilder says.
Profit indicates how well you focus your attention
on the needs of others, namely your customers and
potential customers.
4. Increasing market share leads to increased
profitability. Market share and profitability are not
related in any way, unless, of course, you have been
granted a monopoly by the government. If anything,
the reverse is true. If you are highly profitable, you
can create a strategy to increase your market share
should you so desire.
5. Focusing on efficiency makes your company
more effective. Wrong! Efficiency means doing
something right. Effectiveness means doing the
right thing. The former is always a measurement;
the latter is a judgment. A focus on efficiency kills
innovation because in the end the result is always
the same. A focus on effectiveness changes the
result.
6. Leadership is about changing others. While
leaders may inspire others to change, they can
While going through some old notes I found this list I had developed of
the top ten myths about business. Without further ado, they are:
About Business
Top 10 Myths
LEADERSHIP
by Ed Kless
19bell•weth•er -noun: one who takes initiative or leadership
never change them without the other willingly
changing. There is a difference between accountability
and compliance. Accountability can never be imposed,
since by definition, it is a choice. I choose to be
accountable.
7. Strategy is about analyzing, planning, and doing.
Strategy is about creating, executing, and deciding
what are you going to say “no” to.
8. Business is science, and requires data to back
up decisions. While some
practitioners may claim
otherwise, business is a pseudo-
science. With few, if any,
testable hypotheses, business
fails in every way to classify as
a scientific endeavor. Reliance
on data has become a co-
dependent relationship for
most managers, similar to drug
or alcohol addiction.
9. The customer is always right.
Henry Ford said, “If I gave my
customers what they wanted, I
would have given them a faster horse.” Customers are
rarely innovative. Companies that try only satisfy the
wants of their customers will not innovate. Innovative
companies look at the needs of their customers or
prospects and ask, “How can we best fill that needs?”
In addition, some customers are a drain on your
organization. You are often better off without them.
10. Differentiation can be achieved by saying you are
customer focused. Unless you are truly world class
in service (think USAA and Ritz-
Carlton), you can’t differentiate
by saying to a prospect that
you care about your customers.
Why? Because so does everyone
else. Have you ever heard an
organization say we provide
crappy service to our customers?
“If I gave my customers what they wanted, I would have given them a faster horse. Henry Ford
Ed Kless joined Sage North America in July of 2003 and is the senior director
of partner development and strategy. He developed and delivers the
curriculum for the Sage Consulting Academy, a
five-day course designed to educate Sage Software
partners on the art and practice of small business
consulting. He also facilitates the Sage Leadership
Academy, a yearlong program designed to assist
Sage Software partners develop a continuous process of
improvement in their organizations and serves as liaison to the
Sage Leadership Academy Alumni Association.
Ed is a frequent contributor to industry publications, including the Journal of Accountancy and Harvard
Business Review, and has spoken at many conferences worldwide on project management, pricing, and
knowledge workers. He is active in the Information Technology Alliance (ITA), Toastmasters, and is a senior
fellow at the VeraSage Institute.
Follow him on his blog at www.edkless.com or on Twitter @edkless.
Bellwether Magazine | Fourth Quarter 201020
As of January 31, 2011, FRx will no longer be available for purchase through Sage for Sage ERP MAS products.
Microsoft will no longer be providing any bug fixes for issues found within the FRx product, so Sage and Blytheco will only be able to support matters that involve the integration be-tween Sage MAS and FRx.
Sage ERP MAS Intelligence will be provided to customers using FRx as an alternative solution for Financial Reporting in response to Microsoft’s announcement to retire FRx. Sage is providing current on-plan FRx customers with an offer to transition their FRx licenses to Sage ERP MAS Intelligence. Customers will receive one free Intelligence Report Man-ager or an equivalent product mix depending on the FRx li-censes purchased in the past by the customer. For example, if customers purchased an additional FRx Professional De-signer license they will receive one Report Manager license and one Report Designer license.
Nonprofits Win with Online Fundraising Contest Blytheco non-profit clients - enter "Connect with Sage"! This online fundraising contest will award grants to six non-profit organizations. Entrants will be in two categories — smaller organizations and larger organizations — based on annual funds, and contest winners will be determined based
on the total amount raising using Sage Fundraising Online.The contest is open to any tax-exempt nonprofit in North America or registered Canadian charity. On Dec. 18, the top six organizations — three in each category — with the high-est total amount raised using Sage Fundraising Online will be deemed winners. The two grand prize winners will each receive $5,000 grants, with second prize receiving $1,000 and third prize receiving $500. Enter at http://www.connectwithsage.com
Sage ERP News – Intelligence Update
Effective January 31, 2011, there will be an important change regarding the FRx module developed by Microsoft and marketed and sold by Sage. As a result of Microsoft’s decision to retire FRx, the module will no longer be distributed with Sage ERP MAS products.
Donna Baeza, SPHR and Blytheco’s Director of HR and HR Business Solutions has been making the rounds, attending several important industry conferences this year.
Throughout this year we have noticed definite trends. Change in our economic climate and the challenges and opportunities that creates for employers continues to be a focus, including areas such as employee and leadership en-gagement and morale building in a down market. Social me-dia was another heavily focused area, ranging from policies and procedures, employee engage-ment, recruiting and everything in between. Global human re-sources as an emerging topic continues to advance on the scene.
Many individuals shared that their organizations were still run-ning very lean from a budget perspective. However, it was very encouraging to see that many more were actively look-ing to invest in their HR depart-ments with technology and other HR specific resources. Global human resources continued to be a theme even on the exposition floor with many individuals inquiring about global human resource information systems (HRIS). What was interesting was how many small and mid-sized busi-nesses were inquiring about multi-currency payroll and HRIS applications. This trend is rising year by year at conferences.
In the area of HR technology, we had three primary trends this year for the individuals that stopped by our exhibit. The first was a complete HRIS, the second was time and collec-tion that could interface into their current payroll applica-
tions and the third was performance management applica-tions. Blytheco was very excited to be able to demonstrate the Sage Abra solution with the recently released brand spanking new user interface! Sage has done an excellent job of updating the look, feel, navigation and functionality of Abra. Sage continues to build on that work with more enhancements due out before the end of 2010. We are en-tering very exciting times for Abra HRIS and the feedback
we are receiving is that our customers feel the same way.“we get to hear
feedback from hundreds of HR professionals around the world
23
by Alicia Anderson
bell•weth•er -noun: one who takes initiative or leadership
BOOKREPORT
The Ultimate Question | Fred Reichheld
If you are looking for a better understanding of your customer base and how you
can advance the profitability of your business, this book is a must read. Reichheld
focuses on a measurement he developed with Bain and Company which is a
predictive indicator of future revenue.
The Five Dysfunctions of a Team | Patrick Lencioni
If you are wondering if team dynamics may be a factor in the success of your company, read
this book to learn how team dynamics can play a role in lost revenues and project failures.
The book includes a team test that you can administer to find out which dysfunction your
team may be suffering from. This is a quick read, and the last chapter sums up what lessons
you should walk away with.
The High Purpose Company | Christine Arena
Arena’s book measures the long term success of companies that
develop a higher corporate responsibility and finds that they can
lead to long-term profits. With a style similar to “Built to Last” by
Jim Collins, Arena compares two different groups of companies
to illustrate how strategic initiatives focused around corporate
responsibilities can result in improved bottom lines.