Learn from Others

A recently concluded nine-month performance excellence project involved executives from five very different organizations. One of the highlights cited by many of the attendees were the exercises where teams were comprised of a mix of the organizations. They stated that they learned that their organizations were different, but they had the same problems.

I can relate to that as it reminded me of an experience I once had. I was in the high-flying computer business in the sixties and we had a pretty high opinion of ourselves. I attended a seminar in San Francisco and quickly learned that most of the other attendees were from soap or oil businesses. I thought I had nothing in common with the others and the seminar would be a waste of time. To my astonishment, I learned that the established companies in mature markets had the same problems that I was facing; the difference was that they had solved them years ago. I returned back to my organization a wiser but much humbler person.

Most organizations could benefit with learning from others outside the organization, but our ego and fear of opening up to others gets in the way. This learning can take the form of private conversations with one of the many retired executives in this area, an advisory board, Small Business Development Corporation (SBDC) consultants, or SCORE mentors. Both SBDC and SCORE are affiliates of the Small Business Administration and both offer their services free of charge.

The SBDC provides consulting, training, and information in all aspects of small business management and development including (but are not limited to): Strategic Planning, Financial Projections, Market Analysis, Mergers and Acquisitions, Expansion, Diversification, Franchising, Loan Packaging, Accounting and Record Keeping, Patents, Human Resources, Marketing Plans, and Business Planning.

In addition to the one-on-one consulting services, the SBDC will partner with many organizations to provide a variety of business training workshops and events.

To schedule an appointment, contact the SBDC at (218) 299-3037 or email sbdc@cord.edu

SCORE’s mission is to provide guidance and information that will maximize the success for existing and emerging small business. SCORE is a national non-profit organization of volunteers who provide one-on-one assistance to entrepreneurs at no cost. SCORE focuses on the American dream of small business ownership. Their unique service is based on the idea of “giving back” to our communities. Business people with successful careers and entrepreneurial ventures join SCORE to volunteer their time to help new businesses start and existing businesses grow and prosper. Their national website, www.score.org, provides templates for business plans and other useful tools. They can be reached locally at their office in Room 101 of the Hubbard County Courthouse, by telephone at 218-732-2256, or by email at score@hubbardcountyedc.com.

At a recent SCORE meeting, one of the Mentors presented his view of small businesses in the area

Existing Businesses

1.     successful small business that is doing well

2.     successful small business but could be doing better

3.     struggling, needs help

4.     too late

Start-up Businesses

5.     start up, credible

6.     start up, maybe but needs help

7.     wild idea, little hope for success

Our first reaction was that all of the above types of organizations with the exception of #1 could benefit from outside perspectives. With further thought, a successful organization can always get better. In our experience, it is always the good organizations that ask for help as they are constantly striving to get better.

Every organization can benefit with an outside perspective and advice from those who have been there before. Help is available; you only need to ask for it.

A friend once told me, whether the situation involves the future of the company or just a daily problem, “Never fail alone!”

Basic Marketing 101

To start any marketing activity it is well to understand the aim of the organization and how this marketing activity will help to achieve that organizational aim. Taking a step down, it is then important to understand the aim of the total marketing effort and how this activity helps to achieve that marketing aim.

There are three basic elements of marketing of goods and services, prospecting, nurturing, and closing, and not necessarily in that order.  In fact they are not serial activities, but parallel.

Prospecting is finding people who might be interested in the offerings of your organization. No organization can be all things to all people because of limitations of time, finances, and/or talent. Therefore it is important to identify the market niche where you can dominate. Studies have shown that usually there is room in any niche for two organizations to succeed and one to barely get by. Others eventually fall by the wayside.

Then determine whether you need many customers and you need to “shotgun” your efforts towards a multitude of prospects or “rifle shoot” to a select few who are needed to ensure success of your organization.

Shotgun marketing usually involves the media, newspapers, radio, television, magazines, and broadcast emails. This can take the form of advertisements, press releases, and announcements. A careful accounting of return versus investment is important in these activities. Start with small projects and learn what works for you and your organization.

Rifle shot marketing involves carefully identifying targets and using a personal approach to reach them such as personal emails, direct mail, sales calls, telephone calls, and working through your network.

SCORE, a national organization dedicated to providing free mentoring to small business, provides a booklet titled, 10 Simple Steps to Finding Customers…and Delivering the Goods. It can be obtained by going to score.org on the web or by stopping by your the local office. They stress knowing the characteristics of your prospects, their needs and wants, what they have in common, and how they can be reached.

Nurturing prospects and customers means continuing contact and development of a loyal cadre of people to your products/services, to your organization, and to the people in it. Marketing Sherpa conducted a survey on what worked in nurturing the prospect list and they found out three top activities that worked best; email newsletters, sales calls, and informational papers and articles. Steady personal contact of some sort is necessary to build relationships.

Closing the sale is not a final event but a continuous effort throughout the marketing activity. Every effort should be designed to make it easier for the customer to say yes. First and foremost, listen. The prospect will tell you what he/she wants to hear in order to buy if you give them a chance and listen to what they are telling you. When you do talk, speak in terms of benefits, not features of your products/services. Think of your prospects as selfish individuals; they care not for the history or features of your product/service, they only care what it will do for them.

And always, always follow up after the sale because you want to add each customer to your network of loyal customers. Satisfied customers are like money in the bank and you want to protect and grow that network because they will become your best source of leads and recommendations.

Remember, the biggest asset of your organization is your network of loyal customers

Three Elements of Management

Do you have a documented management system in your organization?

In previous articles, we have said that all work is comprised of a series of processes to form a system. You do, in fact, have a management system but it may not be documented nor understood by employees.

One management system developed by Japanese industrial leaders is comprised of three elements that can be likened to the legs of a three-legged stool. They are Policy Management, Cross-Functional Management, and Daily Management.

Policy Management starts with a good strategic plan with input from many, if not all, employees and other stakeholders such as Board Members, key customers and suppliers, and key members of the community. Not only does this utilize all the brainpower of the organization, it results in buy-in and ownership by employees and other interested people.

The next step is to establish accountability for results. A key employee is selected to lead each of the strategic actions developed in the plan. They then develop an action plan of specific tasks needed to accomplish the strategic action complete with names accountable for each task and timelines for completion. These task leaders then break down their tasks into smaller increments and this is deployed down the organization until the work is identified to complete the strategy. In this way, nearly all employees have defined tasks to guide their actions for their part in accomplishing the strategic plan.

Cross-Functional Management recognizes the need for teams from different departments to work together of achieve the common goals. This need is exploding today and team training is important. The team needs to have open communication, trust and respect for each other, and assurance that they have common goals. Establishing a team charter at the beginning of the effort with approach, expected completion time, budget, meeting schedule and space, and progress reporting well defined are helpful.

Daily Management is, as the name implies, the management of daily activities. In order to maximize the contributions of each employee, they must know what is expected of them in their work and that they are accountable for specific tasks. They must be properly trained and have needed equipment and supplies in timely fashion. They need to know the needs and expectations of their internal and external customers, other employees, and owners. They need to know the products and services of their organization. Participation of employees in discovery and implementation of incremental, continuous improvement of their work processes and products/services are not just desired but critical to the organization’s success. They should feel free to openly communicate needs to suppliers, management, and fellow employees.

Of paramount importance to each of the above management elements is the need to follow up on progress of completion efforts, schedule, budget, and barriers to completion. This is incumbent on management at all levels.

Knowledgeable employees working together to achieve common goals lead to success for the organization.

Keys to Success in Today’s Business

“Times have changed. Have You?”

Many, many books have been written over the years about how to succeed in business; most of them old school. An exception is a new book by Dr. Adam Grant, a professor at The Wharton School of Business at the University of Pennsylvania titled, Give and Take: A Revolutionary Approach to Success. His research led him to believe that our relationships play an even more important role in individual success today.

We all grew up under the teachings of the old school on individual success in the corporate world. Many of these teachings were shallow, but effective, like when you move around, always walk fast. This creates the image that you are industrious, busy, hard working, and ambitious. Laugh if you want, but it works.

We were taught to treat the boss as your customer because he/she controls our chances at promotion and salary increases. We were taught to view our co-workers as competitors as we had to beat them out for that promotion. This led to hoarding information and political infighting.

A friend of mine, Bob Killeen who was the Regional Director for United Auto Workers, once said, “You can’t lead a union today like you did in the ‘30s, just like you can’t manage today like you did in the 30s.” Are you working as your ancestors did in the 30s or are you adapting to modern approaches?

Dr. Grant describes three major trends in interpersonal relationships that give rise to increased opportunities for innovative referrals and promotions.

·      People are increasingly being asked to work on project teams and strong interpersonal skills greatly enhance the chances of success for the team.

·      We are in the midst of a shift to a knowledge and service economy. Understanding and caring about the needs of the customer, both external and internal, make or break your chances for success. Whoever uses your output is your customer.

·      On-line social networks expose you for the world to see.  Word of mouth has always been important but now its importance is exploding with the widespread use of various electronic networks.

Grant describes three types of workers, Takers, Matchers, and Givers. Takers look out for #1, Matchers strive to trade evenly, and Givers contribute to others without expecting anything in return. The Givers become the most valuable asset for any organization. Some thoughts on how to become more of a Giver are:

·      Become an active listener. Focus on the customer or speaker, look him/her in the eyes, and understand the point they are trying to make. Follow up to ensure that you understand correctly.

·      Be willing to give more than you receive by sharing information, contacts, and ideas.

·      Understand areas where you can help. Use your area of expertise such as marketing, social media, networking, etc. to provide assistance or teaching to others.

·      Find ways to enhance the fun in your workplace. Make life more enjoyable for others. Do not be super critical of management, co-workers, customers or anyone else.

Now more than ever, the Golden Rule applies to help us become more successful in our careers and personal life. Someone once said we harvest what we sow and that is very apparent in today’s workplace. Besides, it makes you feel good.