Business Sense

A New Twist on an Old Friend The Value Proposition

2012-01-19T14:15:00.004-06:00

It's why a customer buys from you. Ok, that was simple. Maybe too simple. Try this: A Value Proposition is a statement of what is unique, compelling, and clearly distinguishes you from your competitor. That gives enough additional detail to be of a bit more value in crafting a value proposition of your own, doesn't it. And if we can just remember that statement on a constant, daily basis we shouldn't have any trouble fronting our value proposition at all times. Ah, if we could just remember.

Now try this on for size. A value proposition is a value promise. Not hard to remember either, is it! Now -- what's your value promise?

Don't Do It -- Ever!

2012-01-15T09:55:00.009-06:00

I never thought I'd comment on another direct mail letter--at least not this soon--but I've got to! This time, however, it's in the form of a "Thank you for your contribution" letter. The second part of any good direct mail fundraising effort. Since it's not my intent to be mean spirited in any way, I'll obscure the offending organization; however, I want you to read the first few words with me. They go like this: 'Your support will help us bring new and empowering things to . . ."

THINGS? THINGS! Are results so hard to come by that the charity must now say "things"? Give me a break! Let me say it again: if your organization is going to rely on direct mail fundraising, move it to an art and science level. If it can't do so alone, get help. There are plenty of really good companies in the market place, including mine, which can guide you to successful direct mail fundraising. For goodness sake . . . for direct mail's sake . . . for your company's sake, ask for assistance if you need it. You'll find it doesn't involve a cost; it returns a benefit.

Ok, I'm over my snit. For now. Have fun out there.

How Absolutely Positively NOT How to Write a Fund Raising Letter

2012-01-04T14:07:00.013-06:00

Ok, I'm only going to say this once: "Before you send a fund raising letter, know what you're doing. Make it a science if you will." A couple of weeks ago, I received a direct mail appeal. Nothing about that upset me; after all, many not-for-profit organizations rely heavily on the charitable goodness of persons receiving the appeals. May their kind increase! Here's what bothered me.

1. They got my name wrong. It's Russel, not Russell. Not a big deal, but it is a first impression and we all know how first impressions matter. When you ask for money, start by getting the name right.

2. The appeal I received from this charity was nearly word-for-word the appeal they sent me last year. They invested absolutely no creativity in the new ask. It was like,"We've gotta do this direct mail thing. What can we write that will take us away from our important work for the least amount of time?" The only substantive change was different statistics. How do I know? I had actually kept the prior year's appeal from this organization and compared the two side by side.

3. Did you catch in point 1 that I used the word "statistics"? Fortunately, I wasn't bombasted with lots of analytics, e.g., cost per hour per person served, net change in cost per hour per person served this year versus last year, and the like. Just principally number of units served. Two additional points here. First, #s without comparative parameters are merely snapshots, nothing more. At least, tell me whether #s served are more or less than the year prior, and why. I may be interested. Secondly, give me some perspective on how #s served is impacted by agency resources, e.g., staffing. For example, if you tell me that you served 300 persons during the year, what does that mean? Does this imply multiple contacts per month, or a single contact in a year? Is the contact brief, e.g., referral, or is it extended as with counseling? Once you tell me what you mean by served, you still stop short if you don't tell why my donation matters. This particular letter started by telling me that I could make a difference but never said specifically how I could do that. It can be as simple as "We lost a critical grant we counted on to provide these services and need 250 people to give $50 each."

4. I'm still not done ranting on statistics. Stats have arguable value but they will never elicit a donation from me--or from very many others. They're just too cold. You may impress your banker with them but you will never impress a donor. Use pictures if you can! Numbers alone do not activate our moral emotions. People and victims are lost in numbers. As Mother Teresa said perhaps best of all, "If I look at the mass, I will never act. If I look at the one, I will."

5. The appeal ultimately was a litany of the services the agency provided. Missed entirely was the heartbreak in the lives the agency served. The appeal was too much about the organization's services (which obviously impressed the writer) and almost nothing about how those served by the organization saw it as a rescuer. Too bad. It's really a great organization and the service it provides is quite valuable--a point entirely lost in its end of year mail appeal.

Oh well, before I start to ramble, I'd better stop. You get the picture, however. Right? Direct mail is a great funding method. Done properly, it has pull and it is quantifiable. Do it wrong, however, and it can be a kiss goodbye from that donor you've wanted to reach. If you send direct mail appeals, make the process an art and a science. If that's asking too much, by all means sell restaurant subscriptions. Or something.

How to Handle Termination Reasons on Your Job Application

2011-12-27T11:51:00.007-06:00

I recently contributed the following response to an online discussion group. The question addressed was: "I was recently terminated from my job. Do I need to give the reason for termination on my application?" Let me know your thoughts on my response.

"Assuming" that termination was performance related (which is a worst case), if you notate "Will discuss" in reasons for termination, it will likely be a kiss of death. That said, honesty and personal integrity are important to the process. My suggestion, therefore, is to lead as much as possible with your resume--which should not give a reason for leaving. When you get an interview on the resume alone, you can address reason for leaving (if requested) in an appropriate, well-rehearsed way. A few additional thoughts here: (1) No matter how wronged you might have been, never mention your prior employer in a negative way no matter how cathartic it might be. To do so is an even more sure kiss of death! (2) Terminations are often blessings in disguise. For example, your skills, temperament, etc., might not have been a good match for the prior job. If that was the case, termination probably validated the mismatch--nothing more. In the interview, therefore, don't be defensive. Recognize the mismatch, show how your skills, etc., match the new position, how you can contribute positively to the prospective employer, then move forward without hesitation or embarrassment. (3) Establish a proper mindset when you approach the next interview. Recognize that the employer NEEDS a new employee as much as you need the new job, so on balance, both the potential employer and you are in a mutual need position. Knowing this, assertively interview the employer to see if s/he has a position that will be a good match overall for what you offer. Don't sell out cheap. The mindset you create here can be a powerful tool in getting the job you want.

If, however, you MUST complete an application before you can get an interview, I always recommend leaving the response unanswered in cases of termination. Any way you cut it, the number of applicants for any job nowadays will likely mean you won't get called for an interview if you have answered. Sad, but true. That said, I would suggest additionally that you leave a few select items blank for each past employer--almost as if there's some "greater" reason you didn't respond. Examples might include city/state, supervisor, etc. Having interviewed thousands of individuals in my career, none of these omissions would ever have stopped me from interviewing a candidate who otherwise looked attractive to me. Understandably, some respondees to your Q might argue rightly with this approach. Nonetheless, I believe it's a good method for getting an interview in a situation such as yours. Good luck in your search!

Using Carve-Outs to Save Insurance Costs

2011-12-20T18:55:00.005-06:00

Rising health care costs, mandatory insurance rules, and decreasing tax revenues are leaving businesses and nonprofit corporations with fewer and fewer options for continuing employee health care coverage. Many are now opting for "spousal carve-outs" which essentially take one of three forms:

1. A premium surcharge on working spouse coverage under the employer's plan IF the working spouse has alternative coverage available under his/her employer's coverage.
2. A requirement that a working spouse must purchase through the spouse's employer's plan BEFORE coverage is available under the employer's plan.
3. Full exclusion if similar coverage is available under the spouses employer's plan.

The National Business Group on Health recommends that employers consider these provisions as a way to control costs. Before you decide, be sure to check the laws in your state since many have marital discrimination laws that would allow challenges to carve-outs. If you think this would work for you, however, discuss in depth with your insurance advisor and appropriate legal counsel before proceeding.

Effortless Performance Evaluations

2011-12-13T11:18:00.004-06:00

Having recently left nearly 30 years of executive leadership, I am well acquainted with the angst that accompanies employee evaluations. I could even write a book on the many last-effort employee maneuvers just before the dreaded conference. On entering my office, one staff member began with "I just want you to know that you're the best supervisor I've ever had!" She wasn't being coy. How could I ding her --she who gave me a great compliment? Or so she thought. Another employee used his opening moments to let me know he was fully in control of next year's business plan. Trouble is, he seemed to be missing-in-action over the past 6 months! Still another used the opportunity -- teary eyed -- to acknowledge that she was aware she had not fulfilled her work obligations. If only her mother hadn't died . . . her dad hadn't developed cancer . . . her husband had not left . . . she hadn't broken her ankle, foot, right arm, big toe . . . You get the point here, don't you?

In reality, evaluations do not have to be the traumatizing experiences they have become. No employee should ever be surprised by an evaluation rating and no supervisor should ever scramble to assemble documentation upon which to base an assessment. Evaluations should be simply a formal restatement of what is already known. No surprises. Done properly, even setting future goals will be a non-event. It all starts with proper preparation. So let's examine a few ways to do it right.

1. Be sure each person to be evaluated has a written job description. Surprising the disconnect between what is done and what is expected when there is no job description.
2. Be sure each staff person has written performance expectations. What is expected, when, and what will the outcome look like. If there is no significant positive track record with your employee, consider interim markers that will signal (to all) whether sufficient progress is being made. Don't overdue with this or you might stifle the creativity you need to foster. But a few, might give some early and important indicators.
3. Ensure that your employee understands what is expected. Don't assume that once expectations are devolved to writing, his (or her) thoughts on what s/he "thinks" is due will automatically match yours. Ask questions. Be sure.
4. At least 4 times yearly, sit down with your employee to review progress. Here are three simple topics to guide your conversation. (a.) What I like, (b.) What can be improved, and (c.) Goals for the next period. Unless performance clearly demands it, I would not suggest giving a wage or salary adjustment at this point. Also, be sure to record your information. [By the way, before your sit-down meeting, give these three questions to the person being rated for self-review. When you don't tie in a monetary reward as part of this meeting, you not only get rid of the inherent tension but you also increase the chances that you'll have substantive conversation around performance. Importantly, I would have these conversations 4 times each year--after all, you're providing critical feedback on performance. Remember, if you engage in these conversations to provide feedback (and not to evaluate per se), they are non-threatening to either the employee, or you.]

If you would like to know my thoughts on the annual evaluation, email me. I'd be happy to provide you with details. Have fun out there!

Open the Books--Let It All Hang Out!

2011-12-12T14:59:00.004-06:00

For those of you who actively read this blog--and I know there must be thousands--study "open book management." It has been around for several years and for the life of me, I don't know why I never heard of it before! In my opinion, it is "participative management" carried to a logical end. Here's what I mean.

Participative management assumes that if the employer involves employees in its decisions and plans, outcomes will be improved. And yes, it generally works. Open book management, however, encourages employers to give employees a stake in the (financial) outcome. It starts with opening the books on company financial information (all of it), training employees to understand company finances and how it makes money, vesting authority, responsibility, and accountability, then showing how their performance affects the bottom-line--good and bad. In essence, employees become financial managers who understand how their day-to-day decisions and actions impact earnings--of which they will share in part.

And I have only scratched the surface of this exciting management process. In fact, I may actually have done a disservice to open book management by introducing its most basic tenets without taking the time to explain further--there is SO much great stuff here! Its application is clearly for-profit businesses but there is plenty of interpolation to nonprofits as well.

If you want to learn more, here are a couple of books that are worth the read.
1. Open Book Management (John Case)
2. A Stake in the Outcome (Jack Stack)

Go ahead, stretch yourself. God knows we all need it! In the process, you might actually find yourself enjoying life more.

It's All About Choices

2011-11-30T18:59:00.002-06:00

Running a successful business is all about the choices. Make the right choices and life generally smiles at you. Make the wrong ones, and well, few of us will get any kudos. Is it the right business? Is it the right time to start a business? Do we have the right talents to run a successful venture? And there are more: Which manager? Which sales personnel and how many? What should our brand look like?

It is very easy to get excited at the prospect of becoming an entrepreneur, and to assume that these and other "choice" decisions can be made on the run. They can’t. Think long . . . and hard . . . before taking even the first step. Do your homework. Whereas time waits for no one, and opportunities generally must be grasped quickly, the success of your business requires careful consideration at all stages of the process—beginning with a feasibility study. If you are uncertain how to proceed, we can help you. Give us a call. We would love to be of assistance.

By the way, if you’re not having hilarious fun while you’re at it, you might want to ask, “Why not?”

Exceptionality Couched in Simplicity

2011-11-21T14:06:00.003-06:00

In an interesting and informative article "Learning From Drucker, and the Scouts Too" ( Fortune magazine -- 11/21/11), Frances Hesselbein, former Girl Scouts CEO and current CEO of the Peter F. Drucker Foundation for Nonprofit Management shared her life lessons. Here they are.

1. IF A DOOR OPENS, WALK THROUGH IT.

2. HAVE A CLEAR VISION. She highlighted Drucker's 5 questions: What is our mission? Who is our customer? What does the customer value? What are our results? What is our plan?

3. BE INCLUSIVE. Share successes and results freely.

4. ACCEPT ONLY THE BEST.

5. BE ON TIME.

6. SEE YOURSELF "LIFE-SIZE." In other words, appreciate the significance of the work you do for others.

7. LOOK TO THE FUTURE. Ms. Hesselbein said that Peter Drucker "encouraged us to focus on the type of change that will determine whether or not we are--all of us-- a part of the future."

Each is exceptional it its simplicity. And by the way, Frances Hesselbein is a young 96 years old!

You Can't Afford Not To Ask This Question

2011-11-15T18:56:00.011-06:00

Let's not kid ourselves--the economy truly is bad and it's affecting most if not all of our businesses. Unfortunately, I'm afraid that's life as we're going to know it for awhile. But here's the one question you shouldn't avoid: "Do your business plans (even perhaps your business model) reflect these new economic realities?" In other words, are you operating from old, or new constructs?

The reason I even mention this has everything to do with the number of nonprofit leaders I meet who acknowledge a changed fiscal reality but continue to operate as they have for decades. One agency executive I spoke with mentioned that donor contributions had indeed taken a heavy hit as had retail receipts from a business they owned. Amazingly, however, they had yet to re-strategize on either the organization or business. It's the "head in the sand" thing, I guess. Hopefully they'll do so soon.

Don't be guilty of the same passivity. It's past time to get serious. If you have not reviewed your business model and/or business plans against economic realities, you will likely find that the assumptions upon which they were formed have changed. Radically. In greater likelihood, you just might be gambling with the future well-being of your organization. It's not worth it: spend some time revisiting. (If you need assistance, well, heck, give me a call. It's what I do. I can help.)

How to Change Frenetic Shoppers to Relaxed Shoppers

2011-11-04T09:33:00.007-05:00

A recent study discovered that relaxed shoppers tend to spend more. Michel Tuan Pham, a Columbia business professor who co-authored the study, says that the relaxed state "promotes abstract thinking, which causes customers to focus on the general benefits of products rather than on specific features or details."

Enter the Christmas shopping season--a decidedly frenetic time!

If we accept the findings of this research at face value, how will you structure your shopper experience to encourage relaxation? Here are a few quick thoughts to consider along with your own.

1. Appropriate music. This means seasonal, low volume, and not the "Grandma Got Run Over by a Reindeer" genre. You want music to induce a relaxed state.
2. Aroma. Scents of pine, evergreen, and the like evoke long-stored, fondly-remembered memories of Christmases past. It's a subliminal process to be sure; however, just remembering will tend to slow the heart rate and relax the facial muscles.
3. Short checkout lines. Very little does more to stress a shopper (even at entry to the store) than seeing l-o-n-g checkout lines. It may cost you a bit more upfront to open extra lanes but will likely yield benefits in the long run. Remember, checkout is usually a customer's last experience with a store and will generally shape how s/he feels about that particular retailer. You want this to be good!

That's a start. Oh and by the way, relax yourself! Surprising how associates pick-up a manager's anxiety . . . and how shoppers pick-up associate anxiety.

Have fun out there.

How To Deal With Fickle Customers

2011-10-28T08:49:00.004-05:00

Customer relations is such a fragile art, and as customers, we are so-o fickle. But then again, isn't the job of retailers to know and market to their customers? Are you picking up that I am leading somewhere with this? Here's what happened to me this morning; no big deal in the grand scheme of life. Just an annoyance.

Every morning I have coffee at a local fast food restaurant where I visit with a few good friends, then read in my field and prepare for the day. This morning wasn't too much different--just a little. The only difference was a malfunctioning video game (for kids). Instead of the usual grating duh-duh-duh-da-da-da-la-duh the game was making a very loud metal scraping sound. I tried to ignore it at first but try as I might, I could not concentrate.

I asked one of the workers who happened into the area if he could take shut it off. He said he couldn't but would let his supervisor know. Nothing happened--whereupon I myself asked the shift leader if she could shut down the game. There weren't even kids in the place! Never are at the hour I go. Anyway, in a vocal mannerism not unlike a dead-fish handshake, I was told she had to speak with her supervisor . . . and he wasn't in the restaurant. "Oh, I think he just drove in!" Clearly a ploy to get me to go back to my seat--and she didn't say it but I know she meant it--to quit disturbing her morning. Her supervisor never came. Eventually, I moved to a distant point in the restaurant, did my reading, then left.

Will I not visit the place again? Nope. It's inexpensive, and I'm cheap. We've been a good fit! But the experience was avoidable, however, if the shift leader had just oozed a bit of empathy with my situation. She really didn't even have to shut the game down--just empathize a bit. I would have been happy, and this fickle customer might actually have said something especially nice about the place and its employees.

It doesn't take much to shove one of us fickle customers either to the positive, or to the negative. And it does matter. Let's all try harder to empathize when possible. We'll have more fun in the process for sure.

Two Important Questions That Can Change Everything

2011-10-27T10:03:00.003-05:00

For those of you who like shorter blogs, here's one to please you. Or not. Buffeted by high unemployment and long term economic malaise, shoppers are staying frugal--even when there are moments they could do otherwise. Two questions: (1) Did you know that, and if not, why not?, and (2) How will that information affect how you run your business? Both are good questions. I'd encourage you to give them active consideration.

STOP -- You've Got to See This!

2011-10-23T10:48:00.010-05:00

Here's a perfect "get the week going" question for your Monday morning staff meeting: How are you compelling drive-by traffic to stop at your retail business? For the moment don't worry about converting shoppers to customers; invest some time considering how to get "shoppers."

Not too long ago I provided consulting services to a small western U.S. business. Would you believe I drove past the store 3 times before I actually located it? And I had the advantage of knowing the type of business I was looking for! As is all too often the case, despite attractive appeal once inside the store, there was little on the outside to catch my attention. Were I a potential shopper, that's lost revenue any way you cut it.

So let's go back to our opening question: What are you doing to get drive-by traffic to stop? Though the best ways will rise from a thorough discussion with your staff, here are a few principles to get you started.
1. No two drivers will be compelled by the same message. What is it that you want passers-by to notice? Is it a limited time offering, or do you want them to sample the entire store? Relate the message to your intent.
2. When considering options for compelling attention, think through the eyes, ears, and mindset of the shopper. The more you know your typical shopper, the better able you will be to craft an appropriate attention getter. What gets a man's attention is totally different that what gets a woman's attention. And that's just one dimension.
3. Simplify the message. The more words, the less likely you are to grab attention. Remember, we are talking about moving traffic. Don't force drivers-by to divert their attention from the road. You do not want to cause an accident in front of your store.
4. The tighter the cluster of other businesses, the more distinctively yours needs to shout for attention. This holds true also for signage.
5. What gets a drive-by to stop (when s/he has no prior intent to shop anywhere) will be different from what compels a stop for that person who intends to shop your competitor.
6. No matter how compelling or effective the medium at first, the longer it stands unchanged, the more likely it will become part of the unnoticed landscape. "Change" gets noticed!

Well, hopefully that will get you pointed in the right direction. Oh and by the way, be sure to make the in-store offering worth stopping by. You do not want a mismatch between what you imply you offer and what you actually offer. And that includes quantity available.

Have fun out there. Retailing is a blast--if you have it in your blood. If you don't, consider manufacturing, or test pilot, or building contractor, or . . . (You get the picture!)

How To Say What You Mean

2011-10-01T11:25:00.006-05:00

The following is excerpted from an article I am writing under the title "Finally Government is Turning to Nonprofits For the Answer: But That's Not A Good Thing!" In it, I suggest that tax-exempt nonprofit organizations will increasingly feel the pinch of governmental intrusion into a once sacrosanct relationship--because government has an insatiable thirst for new revenues. I also propose steps that can be taken now to reduce the likelihood that it happens to your 501c(3). The entire article will be available within the next few days.

Here's an excerpt:

"Be sure that organizational outputs are defined in understandable language. To say that ones charitable organization helps homeless veterans find work is quite different than stating that “During the past 12 months, XYZ Agency helped 45 homeless veterans find work of whom 55% have been in the job for more than 6 months and 10% have received a pay increase of $0.25/hour or more in that time.” The first statement is self-serving; the latter, a quantifiable statement of organizational value. Guess which statement makes it easier to justify program worth to governmental officials who argue that there are better ways to spend tax dollars."

Amazing Things Can Happen!

2011-09-19T09:39:00.007-05:00

While reading this morning I saw an interesting summary of shopping behavior: "Shoppers come into stores with the express purpose of getting stuff they want, and they have no compunction about wanting more. Of course, they would like to spend as little as possible but that's not because they want to get as little as possible. Focus on delivering what they want, and amazing things can happen."(1)

As I read these words, my thoughts turned immediately to a question I inevitably ask when working with a business: Who is your customer? Perhaps not surprisingly, most don't know. It follows from here, then, that if the business owner, or manager, doesn't know who is being served, they cannot know what the customer truly wants. And if they don't know what the customer wants, chances are sales will reflect it.

Socrates said, "Know thyself." Kinzinger says, "Know thy customer!" Sorensen says, 'When you do so, amazing things can happen." Try it, you'll like it. I promise.

(1) Herb Sorensen, Inside the Mind of the Shopper: The Science of Retailing (New Jersey, Prentice Hall, 2009), 49.

Should an Expunged Criminal Record be Considered in Hiring Decisions?

2011-08-26T10:43:00.003-05:00

At one time or another, most employers have had to decide if an expunged felony conviction (1) must be disclosed on an application--if asked, and (2) if the information is already known, whether it can be used in determining employment eligibility. If your experience was anything like mine, deciding what to do was anything but clear. No more.

In Holstein v County of Napa et al., California District Court of Appeal, No. A126987, 05/13/2011, the court stated that expungement did not release an offender from all of the consequences of a conviction. "In addition, the court pointed out that an expunged conviction must always be disclosed in applying for public office, and also could be considered by licensing authorities. Further, it observed that records of an expunged conviction were also accessible to the public."*

Simple enough, huh!

*"'Expungement of Criminal Record Doesn't Equal 'destruction,'" Nonprofit Business Advisor, August 2011, p10

A Sure Fire Way To Sell Banana Splits

2011-08-20T14:09:00.010-05:00

Sometimes, it's good to admit our humanity. Perhaps almost cathartic. It de-stresses our pursuit of human perfection by reminding us that in the end, we're pretty frail persons.

Ok, I'm catharcted now. Here's what happened. Visiting one of our favorite restaurants recently, the host who greeted my wife and me talked excitedly about the banana split they were offering that day only--and believe it or not, at a discount!. He mentioned how good it was and get this--3 scoops of vanilla ice cream with 3 different toppings, whipped cream, and a maraschino cherry on top. He said they had sold a bunch already. Clearly a ploy on the face. Who couldn't see through that one!

Then our waitress greeted us. You guessed it-she could hardly restrain her excitement about the banana split they were offering that day only--and at a discount. It was so-o-o good and get this--3 scoops of vanilla ice cream, 3 different toppings, whipped cream, and a maraschino cherry on top. She said they had sold a bunch already and staff were having a blast eating banana splits in the kitchen area.

Then yet another waitress greeted diners at the table next to ours with exciting news of the banana split being offered this day only--and at a discount--with 3 scoops of vanilla ice cream, 3 different toppings, whipped cream, and a maraschino cherry on top. And yes, they had sold a bunch already.

Weakening--weakening--reserves depleating! Though I have never really craved a banana split in my life, I was beginning to do so now. And it didn't help that my wife who actually does crave banana splits was starting to salivate words of encouragement (to indulge). Almost as if acting outside of myself, I replied, "I'd like a banana split." when the waitress asked if we had saved room for dessert. "And bring one for my wife, too." No sharing--I had a craving to satisfy.

Now here's the simple conclusion: there's power in focus. Whether you use it to get your retail staff to highlight a daily special, or perhaps even to target staff energies on one critical project at a time, focus is a necessary precursor to accomplishment. The restaurant had done its research and knew that focused, repeat conversation of a single product would likely influence my purchase decision. And they were right, it did.

By the way, did you catch that the excitement of restaurant employees seemed to be fueled by sampling some of the goodies? Might do us all well as management to reflect on some of the very simple ways we can add a fueled excitement to our staff's days. There's likely a big payoff here.

Think about it.

Wrong Decisions

2011-07-24T16:23:00.004-05:00

I am in the process of gathering information for a book I am working on and would love to hear from you if you have appropriate managerial experiences I could use. Since leaving my last executive directorship (and having led several public and nonprofit organizations), I have found myself reflecting on "wrong" decisions I made over the years and whether there are "lessons" that can be extracted and passed along. Don't misunderstand me; to be successful, management needs to be right more often than it is not. That said, I have thought frequently of decisions I made that were simply flat wrong. Why were they so? Did I sense failure ahead of time but fail to act? Was there ever an ego aspect that kept me from acknowledging that one or more elements didn't fit? Was there a tipping point beyond which I refused to back down? Was my decision-making intuitive or fact-based? Did a sort of groupthink unduly influence me?

Hopefully you get the point. If you have solid examples you would like to share, you can do so as a response to this entry. If you want to be more private, you can send your experience(s) to my email: RKinzinger@TalonCompany.com. Be sure to let me know if I am free to use your name, otherwise, I will not do so. Thanks much!

Management Lessons From Mayo Clinic

2011-05-23T11:28:00.003-05:00

Not too long ago, I went to Mayo Clinic, Rochester to successfully correct an abnormal heartbeat. This was only the second time I had ever used their services but it was sufficient to convince me that there was something almost magical about the Mayo experience. Lots of people but no real queues or delays; busy doctors but never too busy to spend what ever time needed with the patient; substantial medical tests and x-rays but all with nearly immediate interpretations; a sense of grand size without for one moment of feeling lost, or a stranger. It felt almost as if the whole of Mayo Clinic Rochester was welcoming me home.

Driving back from this latest visit, I remarked to my wife that I would love to read a book (or serious study) which spoke to what made Mayos the unusual place that it was. Not only was the experience so remarkably contrastive with the usual mode of medical care delivery, but it seemed also that whatever the magic, there surely had to be an application somehow in our social services programming.

I am happy to report that recently, and quite serendipitously, I found a book which indeed does pull back the curtain on the magic of Mayo Clinic. It's entitled "Management Lessons From Mayo Clinic: Inside one of the world's most admired organizations." (Leonard L. Berry and Kent D. Seltman, McGraw Hill, 2008). I am thrilled to report also that application abounds whether to individual medical practices, social service organizations, governmental agencies, or whatever. The secret? Well, you'll just have to read it. I assure you, however, that it won't take you long to get through the book. It is compelling, highly practical reading from page 1.

Have fun out there!

Is It Really "Good" Friday?

2011-04-21T08:46:00.005-05:00

Ever wonder what rocket scientist came up with the name Good Friday? Christ was ruthlessly torutured and executed. Evil dealt Heaven's Angel its cruelest. To call that darkest of days 'Good' is the overstatement of the millennia. But in a clever counter-blow, Magnificence Itself plunged a dagger straight into the heart of bondage and unleashed the power of Heaven on earth . . . for our restoration and the beginning of the end of evil on planet Earth. Ah, no wonder they call Him the Savior.

Thought it might be worth reflecting during this approaching celebration of His resurrection.

A Little Time in Washington, DC

2011-01-29T10:30:00.000-06:00

This week I had an amazing opportunity to be my son's special guest at a White House reception and the State of the Union address. As you may recall from an earlier blog (as well as a plethora of media articles and interviews with him), my son Adam Kinzinger was elected to the U.S. Congress from the Illinois 11th Congressional District. The opportunity to visit the White House, meet the President and Vice-President (and their wives) went far above politics to a once-in-a-lifetime opportunity to witness one of the benchmark strengths of this country, i.e., an orderly transition of power.

An incredible opportunity I would genuinely wish for everyone.

Getting Beyond Expectations

2010-12-30T15:45:00.003-06:00

Here's one for you. A few days ago I inadvertently left my bank card at the local Steak & Shake--a great place to eat. Discovering my loss a day or so later, I made a call or two to a couple of businesses thinking I may have left the card with them. I hadn't, and was nearly ready to call my credit union, cancel the card and replace when I took one last look online to see if anyone had been using. Since I hadn't recorded the transaction in my checkbook register, I was surprised to discover that I had in fact last used the card a few nights prior at (you guessed it) Steak & Shake. When I called the restaurant to see if they had the card, they said it was in their safe.

Relieved to find it finally, I said nothing. But I have to wonder why no one contacted me. I am a frequent diner and my telephone number is in the phone directory. No twenty-five or so people with the same name to winnow: I'm the only Rus Kinzinger listed. I could also have supplied what they needed to prove the card was mine--after all, when I dropped by to get the card, they gave it to me. Could it be no one cared enough to reunite a lost card with its worried owner? I sure hope not.

Folks, good customer service isn't that hard but it starts with wanting to deliver it.

When You Need to Save More Than Money

2010-12-25T16:31:00.017-06:00

I'm normally pretty good at analyzing costs and benefits for most things I spend money on. Assuming dollars are not infinite (and they're not), if I buy product A at a given price, I forego other options including purchases I might have made alternatively, or even saving those dollars. That said, I recently discovered that I had fallen prey to one of the oldest tricks in the book, however, so I'm telling you about it--perhaps even to spare you from the same insidious mistake.

It goes like this. Several years ago I joined the ranks of individuals who believed that life was marginal unless one carried a cell phone. I soon discovered to my amazement that indeed, quality of life was improved. I was both reachable and I could reach out and touch. Initially, the phone was for emergency purposes only; then, it became a "necessary" tool for business when away from the office. Now, it's an indispensable companion with its internet, GPS, calendar, recorder, and jillions of apps I can't live without! I needed a phone and schedule with me at all times, and as everyone knows, carrying one phone was much less troublesome than the burden of a phone and PDA. Initially, the monthly cost was about $25 or so--now, it's $192.41.

Here's the rub I am getting to: without recognizing the dollar creep, I am now paying approximately $2400/year for the privilege of using a jazzed-up phone. Alexander Graham Bell would be speechless with wonder, I am sure. Twenty-four hundred dollars each year is nearly $10,000 every 4 years, or $20,000 for 8 years. Alternatively (remember I am into cost:benefit comparisons), I could have bought a nice car--and paid it off! More crushingly, I could have entered a partnership to buy an airplane--which REALLY kills me! I could also have an extra $20,000 in a savings instrument of some sort. Then there's the matter of the interest I could have gained by saving those dollars. Want to go just a bit deeper into this? Considering that I can get my phone needs met at less than $56 monthly, that means I am spending $1637 per year on an electronic calendar and apps. Over 4 years, that cost morphs into $6548 and over 8 years, I have invested $13,100 just to use an electronic calendar and fidget with some neat apps. Sad, huh!

Perhaps needless to say, I will now (1) buyout my phone contract for the balance of time remaining, and (2) purchase a PDA. Though I am looking at $700 (plus), it's still much less expensive than the alternative. The costly situations we occasionally get into, huh. Can you relate? If yes, let me leave you with a few closing thoughts. Hope they help.

1. Exercise continuous situational awareness. Air Force pilots call this SA and it means being aware of what's happening all around your jet--above, below, to the right, to the left, behind, in front. Everywhere. What might you discover if you had good SA in your business or organization? What might you find if you taught it to your employees?
2. Practice creativity. For example, "assume" you cannot continue an expenditure at current levels but must nevertheless achieve results as if there were no restrictions on the money. What will you do? If you will hold yourself accountable for maintaining given assumptions, forcing yourself to come up with a solution can be a highly effective tool for stimulating viable alternatives. You might be surprised even to find that you don't need the product or service at all!
3. Don't be complacent--about anything.
4. Marketers are trained to know how you think, then, sometimes to get you to act in a way you might otherwise not do so. You may have heard of the frog in the kettle. Pour hot water on him and he will jump out of the pan. Add a little bit at a time and that's where his history will end. So also with each of us. Most of our drastic changes are in small increments. This says we may even move in a direction that ultimately works against our values and/or common sense. I'm now spending $2400 each year for a calendar and some neats apps--something I would NEVER have done had I been a bit more aware of this dynamic at play in my life. It got me . . . don't let it get you!

Have fun out there. Just remember, this world is an exciting but dangerous place. Be careful.

How to Position Your Product for Best Results

2010-12-16T12:09:00.009-06:00

Let's face it: if we're any good at what we do, we get excited about measurable results. Or at least we should! We've worked hard, our projections have been met or exceeded, and we're on track for some really great end-of-year numbers. Nothing wrong with that. How we communicate that information, however, makes a significant difference if we are trying to excite someone to some level of participation, e.g., a donation, or perhaps a business purchase.

Recently, I received a direct mail appeal from an organization that does great work in my community. Here's the gist of their appeal. "Dear Friend, We have been in business 15 years, we helped 300 persons during the year, and here's what we do as an organization. Please give. Here's how." Though as earlier stated I knew the good work of the organization, the appeal did not move me even 1 inch toward donating. Unfortunate--especially since I had given on prior occasions. Did you also notice the "Dear Friend" greeting? Made me feel warm.

Here's another example--this time from the for-profit side. Recently, my rather new car failed to perform as expected. Specifically speaking, it didn't go forward. Or backwards. It also didn't move the RPMs past 1700 when I pushed hard on the accelerator. Eventually I was able to get it into my garage at about one-third mile per hour. Literally. When I asked On Star to do a diagnostic, they said something was prohibiting them from being able to do so. When I called the dealer, I was told it would be more than a week before they could see me. Interestingly, when I shut off the car (then restarted) everything seemed to work fine, albeit something was clearly wrong. Unfortunately, when I finally got the car to the dealer for repair, my service attendant said that newer cars had a series of codes that were downloaded automatically whenever something was amiss with how it ran. Over the next few minutes, in fact, I got a real lesson in the dynamic interrelationship between newer cars, and computers. He spoke almost with a passion how much computers were making his work easier. Just what I wanted . . . and needed to hear. Sure!

Here's the bottom-line to it all. Customers (and benefactors) seldom get impressed with what really turns us on in our businesses or organizations. They just don't care--nor should they be expected to do so. In the case of my car, I wasn't concerned about the codes or how state-of-the-art my car's internals were. My only concern was that it could take me from one place to another--reliably. My attendant missed that in talking computer-speak, he lost the opportunity to translate how codes (and all the other dynamics he spoke of) benefitted reliability, drivability, and overall comfort. (Oh, did I tell you my car lost all the codes so nothing has yet been done to correct a real but non-duplicatable problem?) The attendant was surely impressed with how cool the car was, but I went away very frustrated.

In the case of the community organization, they too were deservedly impressed with what they did for their service population. Unfortunately, they didn't talk "lives changed" so I, and likely many others, didn't get aroused enough to get involved. A shame to be sure.

When you are positioning your product for an exchange with either a consumer or donor, speak in their language and to their emotions. I care about kids and I care about the comfort my car gives me. In both cases, however, my exchange with the service seller fell short of being mutually satisfying.

Think about it.

Little Adjustments Make Grand Changes

2010-11-27T16:27:00.002-06:00

I was amazed recently when the leader of a nonprofit agency acknowledged that revenues were shrinking (as a trend) but said they had no plans to do anything differently in the future. When I asked directly, "How are you planning to offset the revenue loss?" she replied, "We haven't considered it."

Frankly folks, I was pretty much knocked off my game. I've talked with many leaders who are facing similar trending shortfalls, but to not even be considering how to respond?! This was a first for me.

Facing a financial crisis in ones headlamps is not that uncommon for nonprofit leaders. What is unexpected is to see a crisis looming and yet to take no action to prevent it from becoming a foreseen disaster. Though I did my share of probing, nothing that I did could move this leader to action. Too bad.

Here's a mini lesson: (1) set up metrics for everything you do as a leader -- program, finances, products, people; (2) make it a point to measure often; (3) act on what you find. Little adjustments are generally not that difficult to make or rally staff around. Wait until the ship has taken on too much water, however, and there is little you can do that will not require an all out effort by staff--and a whole lot of miracle thrown in!

Get the point? Minor adjustments are often fun in nature. Major changes seldom are.

Here I Go Again

2010-09-16T09:42:00.005-05:00

Ok, I know already I tend to get readily annoyed in this area, but it happened again yesterday. The day before, I called my favorite thrift store to ask if they would accept a certain good as a donation. Admittedly, whether they would accept was questionable; hence, the reason for my call. I was told they would do so--much to my delight.

As I opened the car trunk to unload my treasures, one of the receiving personnel told me they did not accept what I was offering. He was polite. Politeness turned quickly sour, however, when I mentioned that I had received clearance the day prior to make the donation. "I wish they would get their act together. They say one thing then do another!" I could continue with other things he said while unloading my car, but I imagine you get the point already. Though I had felt good originally about helping the store's revenues with my drop-off, what was communicated by its representative was fairly significant displeasure.

Don't get me wrong here. Thrift stores DO have the right to set policies such as which goods to receive and which to reject. And unquestionably, not everyone will be happy when turned away. That said (1) all such policies should be set prior to any customer contact, (2) they should be seamlessly communicated and frequently refreshed for all staff from receivers to sales personnel, and (3) staff attitude should be carefully monitored at all points of customer contact. The latter of which is where this particular thrift fell short.

Here's a suggestion: at all points where any staff member will encounter your customers, send secret interacters with a host of different circumstances, e.g., angry, infirm, demanding, outright rude, overly solicitous of your time, and the like. You might be surprised what you find. If I had not had significant experience already with this thrift store (all of which was good), they likely would have received my last donation. You don't want that: it hurts business, and ultimately the cause for which a particular thrift store is begun.

Have fun in this whole business. And if you can't find it fun, look for a job that better matches your "fun" threshold. Life is too short.

Just Ask

2010-08-24T14:26:00.004-05:00

Got a question on any matter of organizational management or business development? Send me an email and ask. Happy to give input. Really -- I love this stuff! Ask away.

Pay Attention to the Details

2010-08-22T13:17:00.007-05:00

If as I you are following how businesses are faring given great economic uncertainties, you might already have noticed that many are seeing "reduced" earnings but better "net" pictures than in the prior two years. Though at first blush the picture might not make sense, improved profitability quickly comes into focus when looking at the expenses side of the profit and loss statement. Here, you will notice that businesses have learned well the lessons of the past two years and have actually continued to keep spending low--even in the midst of sluggish revenues.

It is easy to overlook the "cost" of worker idle time, especially if it is just an hour here or there. Not so for the businesses which are seeing bottom-line gains this year. Profitability means continuing to ensure that every employee hour paid is an hour of work gained. For some businesses, getting the most bang per employee dollar spent meant (means) giving a new level of attention to peaks and lows of customer demand. Optimal staffing always take its cues from the customer. Companies that have continued to fare well also discovered that when employees leave the company, re-thinking need for a position is a better auto-response than is immediate hiring.

In short, companies that improved profitability over the past two years are those which discovered that cost cutting (throughout) can be a magic wand for sustaining profitability even in the face of decreasing revenues. Two-thousand ten (2010) is not giving business leadership much encouragement that gross revenues are going to recover anytime soon. For those who study the lessons of 2008 and 2009, however, profitability might well continue to remain strong.

How are "you" using your profit & loss statement? It can be a great tool for moving your business forward -- in good times and in bad. Have fun. Business is a blast!

A Question You Can Help Me Answer

2010-07-20T22:28:00.004-05:00

Here's a question to think about: are you more interested in knowing why a shopper enters your store to shop or why after shopping, they might leave without making a purchase? In other words, would you rather know why 50 shoppers become customers, or why 50 shoppers leave without buying? For the sake of getting a full vetting, assume you CANNOT choose "both."

To be truthful, I had not given the question much thought until today when a friend and I just happened to touch on the issue. The answer may indeed lie with "both," however, before defaulting to that rather knee-jerk response, i.e., the path of least resistance, try wrestling this one through. You will definitely come out ahead by doing so.

(I would love to hear your thoughts on this question!)

Fully Unique

2010-07-18T16:44:00.006-05:00

People are unique. Really—they’re downright interesting. I am sitting in the Atlanta, GA airport during a 3-hour layover from Washington, DC doing what I am talking about: watching people. I am well placed so I can see everyone walking by. Let me share just a bit of what I see.
• Nearly everyone is cell phone absorbed. For those into the evolution stuff, a few more generations of talking/texting/emailing while walking, and survival of the fittest will surely be to those who adapt a sonar sense. Like bats.
• Ah there goes a young lady talking animatedly to herself. Nope, she’s fully into a conversation on her Bluetooth and totally oblivious to anyone else around her.
• Three individuals sat down by me while I am typing. No one spoke. Maybe they were waiting for me to break the ice. I didn’t because of my “observation research.”
• Nice: a mom just bent down and kissed her young daughter on the forehead while they were walking. Wish more parents did that!
• Dozens pass by staring aimlessly ahead.
• Cowboy, thin girls, heavier girls, thin men, heavier men, all colors, races and seemingly an endless array of personalities.
• Please move lady: you’re in my way.
• Two just went by in a dead sprint. Been there myself at times. A hot day, too!
• That couple can’t be married—they just can’t be. I think they are.
• What a scam! That guy being pushed in the wheelchair is NOT handicapped. His snarky smile was a bit too revealing. Of course, I’ve never thought of doing the same thing myself.

OK—you get my point. People are limitlessly different. Which says that within your business and coming to your place of operation are a wide variety of people with an infinite array of personalities. And though you certainly can’t manage (or respond) in accordance with each unique variation, it sometimes helps to be reminded that each has a God-given uniqueness. Hopefully, I’ve done that for you.

Smile!

2010-07-01T09:58:00.003-05:00

I have written and spoken often of the need for sales staff to engage the customer and to make a high-quality exchange part of your store's brand. Little will more cement future sales than a great experience with the current one.

Want my example du jour? Today I entered a business, made a purchase, checked out, and not once did the clerk make eye contact with me. She acknowledged me only once to ask, "What do you want?" Remember, no eye contact of any sort and obviously, no real friendliness.

If you guessed the U.S. Post Office, you're right. No wonder it's one of our favorite places to visit. And no wonder alternatives thrive! Here's my oft-repeated bottom line: if you don't enjoy your work, leave it. If you enjoy it, show it. You will make someone's day--perhaps, even your own.

Itchy, Scratchy Tags!

2010-06-11T15:30:00.004-05:00

Here are some of my greatest annoyances.
- Scratchy tags affixed to shirts and other articles of clothing. Just yesterday I put on a new shirt and before I could do anything else, I had to carefully cut-out the tag. It was tearing up my neck!
- Tags sewn on washcloths
- Tags sewn on towels
- Tags sewn on pillows
- Sticky labels placed on expensive books telling how much the darn thing costs. Take them off . . . damage the book.

Now a few thoughts.
- I'm not the only purchaser and, therefore, certainly not the only one with these gripes. Some of the above list is so endemic as to be the subject of jokes. What I want to know, however, is "Do the manufacturers ever use their own products? If so, how can they ignore what irritates the begeebers out of the rest of us?"
- Remedy for each is pretty easy. Take Hanes T-shirts, for example. For years I dutifully removed the tag from each shirt before I wore it. Couldn't stand it otherwise. Finally, Hanes Corp. got wise and began imprinting the information onto each collar. Duh! What a wonderful idea! Now, months later I know the T-shirt I wear is a Hanes product because the imprint is still readable. Not so with the expensive shirt. Tag took a ride long before. Guess what: I like Hanes. I "tolerate" the expensive shirt maker only because I can cut-out their irritating tag.

Now a question: Do you have any "tags" in your business that you could remedy? What about customers that you could move from "tolerating" you (for what you offer) to actual proponents of your business? Don't be fooled; we've all got tags. Sometimes hard to see them but always easy to get rid of them. Go out and make converts!

Have fun doing so.

Get Busy!

2010-06-09T10:22:00.006-05:00

Giving USA Foundation and the Center on Philanthropy at Indiana University recently released their annual tabulation of charitable giving in the United States and it wasn't good news. Not even a bit! Charitable giving tumbled 3.6 percent--the second worst performance in nearly 55 years. It is so bad, in fact, that Bruce Trachtenberg writing in the June 9, 2010 Wall street Journal said, "Nonprofits looking for a silver lining in the economic clouds will have to keep waiting a little longer—maybe even a few years more."

I have blown the trumpet on this for several years now, let me do so again. Plan diligently to make earned income a larger percentage of your overall organizational revenue. Like it or not, dollars from donors and the government (including tax exemptions) will steadily decrease over the foreseeable future. Study the economic markers and I believe you will have to agree--even if begrudgingly.

Granted it may not make the most scintillating reading but subscribe to the Wall Street Journal--and read it daily! Read Fortune magazine. Enroll at a college (or community college) and begin taking business classes. Business may not be your field of choice as goes your personal interest; however, it may well be the only path to sustaining your organization. Believe me, the heretofore fairly comfortable environment within which nonprofits operate is changing. Fast.

Then again, you could hire Talon Company to do it for you. There's safety in experience . . . and we love the stuff. Have fun!

Behold the Donor!

2010-06-04T14:29:00.009-05:00

I had a wonderful conversation last week with Jeff Gillman, executive director of the Redwood Gospel Mission in Santa Rosa, CA. Whereas our conversation touched on a number of points regarding the retail thrift industry (including that Santa Rosa has a nearly ideal temperature--just what any Illinoisan needs to hear), Jeff took an interesting detour to talk about the often overlooked receiving end of donations. Though he acknowledged that without our great customers no business would long succeed and, therefore, everything we can do to improve the quality of our retailing is certainly needed, he added that without the donated goods, we are dead in the water. A welcoming atmosphere that stays with customers until they complete their shopping is critical. Proper sales techniques are important. Quick checkout--what more do I need to say?! But it's those individuals who think enough of a particular retail thrift business to bring it their gently-used goods who fuel the entire economic engine. And Jeff says, these are the ones who should be the principal focus of our customer service training.

He may be onto something. A great sales volume presumes all sorts of things but none is more important than an adequate supply of good quality donations. Do this end of the process wrong and the other end won't matter. Do it right and it will improve the other.

Think about it, then let me hear your thoughts.

Worth Thinking About

2010-05-31T18:30:00.001-05:00

I just read a great comment that deserves stand-alone regard.

"It is ironic that one of the few things in this live over which we have total control is our own attitudes, and yet most of us live our entire life behaving as though we had no control whatsoever." (Jim Rohn)

Worth thinking about. A lot!

Survival 101 for Nonprofits

2010-05-18T15:58:00.011-05:00

I'll make this short since frankly, I don't have the stomach to tolerate too much of this stuff. Here goes: government will make it increasingly more difficult to operate profitably. A few cases at point. In a recent (May 10th) Wall Street Journal article "States Move to Cut Incentives to Business," reporter Conor Dougherty stated, "Tax credits are an easy target for governors and legislators looking to close ongoing budget gaps caused by falling sales, income and other taxes. Eliminating or reducing such credits can boost a state's coffers without creating new taxes or raising them on broad swaths of the population."

Okay, so increasing taxes on businesses does not directly affect nonprofits--or does it?! Consider for a moment. Business tax increases are almost always passed along to consumers. Nonprofits are consumers. So are its donors. Here's the greater point: not so buried in the WSJ quote is a statement alluding to the direct relationship between falling (state) sales, income, and other taxes, and budget gaps. My concern? States are strapped for money and I propose they will be looking for supplemental dollars beneath any rock they can lift, every bush that provides cover, and every golden icon that can be upset.

Therein lies the nonprofit's risk. Exemptions provided annually and tax credits offered to its donors amount to significant revenue sources foregone in favor of services deemed needed, but not profitable to the private sector. Obviously, for states/government to tap heretofore exempt dollars it would first be necessary to redefine services needed for the public good. Really? Here again, I suggest that the greater overall public good will simply trump the narrow need(s) of a targeted segment and, therefore, justification would be provided inherently in any move to adjust/delete a credit or exemption.

Now consider this. In three situations I know first hand (1 NFP, 2 churches), each entity was refused expansion property on the sole basis that they were exempt from paying property taxes. In one of the cases, the organization offered voluntarily to pay property taxes for a number of years. Not good enough. Eventually all three organizations were forced to acquire property at greater cost.

Now my point, I acknowledge as I am sure we all do that our nation's/world's economies are a mess. We pray that stability will be returned--as I am confident they will be, eventually. Assuming that recovery takes years, however, can your nonprofit survive? Here's a practical exercise that just might help you answer that question. Assume with your top management team that ALL governmental revenues will stop (for the time, at least) and that 10% of all non-governmental revenues will disappear. Ask the question, "How will we provide services -- and pay our bills?" In other words, worst-case it! What you discover may just save your organization. You may also discover that now is the time to begin focusing on earned income--either to start an exempt (or for profit) business, or to step-up management of the one you have now.

This is not intended to be a message of doom. God has blessed our wonderful nation and I believe He will continue to do so. He also gave us the wisdom to deal intelligently with complex issues before us. There's so much out there from which we can learn. Let's re-commit to do so, especially now.

And by the way, make the effort fun!

I'm Ranting Again

2010-05-11T15:15:00.004-05:00

OK--so I nitpik. Maybe I get too annoyed at poor customer service. Then again, maybe there's too much of it. Maybe there are too many burned-out persons trapped in customer-centered jobs. Maybe management has gotten tired of asking its minimum wage employees to perform at $40K levels--only to be disappointed when they don't. Maybe management doesn't care. Maybe there are no incentives to make them care. Who knows. Perhaps all are reasons. Whatever the case, however, we still make our living by being better than our theoretically equally good competitor (down the road). So if we want to keep earning the bucks, maybe we need to look one more time at little annoyances (and habits) that become really big issues to crotchety consumers--like me.

It's 5 minutes until my pharmacy opens and I am one of several standing in line to be served at one of our large discount retailers. And of course, we're all waiting. And waiting. Funny how 5 minutes drags on when one is in a hurry . . . and when 4 pharmacists and techs (our potential deliverers!) are all lined up in a row working on seemingly important stuff. Then again, it might not have been important stuff. I jumped to that conclusion since each employee looked serious, stressed, spoke only in quick, short phrases (to each other), and no one could chance look at any of us for fear of messing up on the "really important stuff" s/he was working on. That is, I presume that is the reason. I presume also that that's why we all waited the full 5 minutes before we officially became customers with needs to be met. Maybe that's also why the lady who waited on me was so very non-communicative, serious, stressed, and unfriendly. I was taking her away from her terribly important work.

Come on! Get a life!! Your customers pay your bills--engage with them! Maybe those ubiquitous "rules" do prevent you from opening even a few seconds before your declared opening. But if you're ever in a similar (or for that matter, any) setting with your customers, at least acknowledge them! They're people--good people. They work hard, pay their bills, and they spend some cash that's left over at the end of each week. Some even in your store/s. Make them feel welcomed. Have fun with them. Smile and let them know their patronage is appreciated. Just don't ignore them. Ever! They don't cease to exist just because you won't look at them. And if it's too hard for you . . . find another job.

Having fun in business makes it a joy to get up every morning. Now I feel better. :)

A Surefire Way to Improve Profits

2010-05-05T08:57:00.004-05:00

According to a Harris Interactive poll conducted in 2007, at least 80% of more than 2000 adults polled said they would never return to buy from a particular company after a negative experience. Pretty damning, isn't it! Consider also that this number is up a full 12% from data obtained just one year prior in 2006.

Want to improve profits? I think I know at least one way.

Ask for the Sale

2010-05-04T17:17:00.004-05:00

Here's a quick lesson that might contain a good reminder for us all. Yesterday, I went bike shopping--unfortunately, not the Harley type; rather, the type we get after training wheels are removed. Anyway, having already spent a good deal of time online checking the models and options I could choose, I took my newly-found knowledge to my favorite sporting goods store.

Fortunate for me, my salesperson was also one of the store's main managers who quickly impressed me with how much specific knowledge he had of hybrid-type bicycles. He was also fluid, presented himself and the store well, and was very personable. Then again, that's part of the store's brand image with me so I wasn't really surprised.

Here's why I am writing about this experience. First, most of the manager's sales spiel was directed to a bicycle that actually cost less than the one I wanted. To his view, I didn't need the extra "stuff" -- even though I was clearly sending signals that I wanted the more expensive bike. Although I am certain my salesperson was trying to do me a good turn, he missed the point of my interest.

More egregiously, perhaps, is the second reason I am blogging--after spending 15 minutes genuinely impressing me with his complete knowledge of his product, he NEVER ASKED ME FOR THE SALE! For that matter, he didn't even nudge me with questions designed to "tenderize" me toward a climactic, "Yes, I'll buy!" In the end, he simply gave me his card with the well-worn statement, "Give me a call if you're interested in purchasing." When I asked if he was on commission, i.e. should I ask for him if I called back, he said he wasn't. Anyone could take my order -- which by the way never came his way.

Two interesting questions: (1) Would he have asked me to buy if he were appropriately incentivized, and (2) could he have gotten my sale if he did? My guess is "yes" on both.

Have fun out there. Retail sales really is a blast.

Rainy Day Sunshine

2010-04-16T09:49:00.011-05:00

It's a rainy, somewhat dreary day here but let me at least bring a little sunshine into 'your' day. I guarantee you will smile--or at least should smile--if (1) you're a nonprofit executive and have a profit-seeking retail business as one of your ventures, and (2) what I say specifically applies to you.

In running a successful retail business, ending the month having taken in more money than incurred to produce the revenue is generally a quite reasonable goal. If the net trend is also upward each month, so much the better. Net monies produced are thus re-directed against program delivery costs and if significant enough, everyone smiles. But should you?

Let me further explain the question. In my sometimes-strange calculus about how best to do anything, I suggest there is at least one more, critical step we need to take; namely, to compare production efforts and net revenues against alternative efforts and returns. Always, ALWAYS ask the additional question: Is this the best (highest) use of my time and is this the best return on use of dollars? Simply put, $5K of monthly net profit might be a lesser return than if the same corpus were invested in some alternative venture. Though indeed yielding a positive return, it may not be optimal. Secondly, a $5K net profit might considerably diminish a potential net positive social good in that dollars needed to achieve the good are necessarily invested in the production side of your business. Cash flow becomes the determinant.

Since I am speaking mostly to nonprofit leadership in this particular blog, I propose that break-even or arguably any positive return of any size 'might' run at cross purposes with a greater good, i.e., benefit to a targeted population. In view of the standing charitable charge, it is always expedient to consider whether an alternative path would better serve clientele. I can think of no time when consideration would not be appropriate. Remember, I earn my living by helping nonprofit leaders fund mission through business-generated revenues so I lean heavily on a pro-business stance. In fairness to your cause, however, let me encourage you to add this "highest use" question to your due diligence management of the business.

Then have fun--and smile! You're doing it right.

How to Communicate for Effect

2010-04-12T13:30:00.003-05:00

Sometimes another's thoughts need nothing added for clarity--even if written 18 years ago. Here's one I thought you might find rich.

"At most companies, people are never told that the survival of the company depends on doing those two things (making money and generating cash). People are told what to do in an eight-hour workday, but no one ever shows them how they fit into a bigger picture. No one explains how one person's actions affects another's, how each department depends on the others, what impact they all have on the company as a whole. Most important, no one tells people how to make money and generate cash. Nine times out of ten, employees don't even know the difference between the two." *

Any "ouch!" moments as you read?

*Stack, Jack. "The Great Game of Business." New York: Currency Doubleday, 1992

Amorphous JULIE

2010-04-06T15:50:00.011-05:00

If we will just take the time to observe, we should be able to notice that the routines of our lives are full of lessons which can apply very readily to the world of our businesses. For me, it started with a quick call to JULIE. Not a girl Julie-- the amorphous centralized number we call to locate underground utility wires, gas lines and the like. Responding in an efficient, friendly way, the older lady I spoke with assured me that any wires/lines would be located and marked within 72 hours. Just like that -- efficient, organized, responsive. Wonderful!

They were so efficient, in fact, that one of the utility companies notified had even marked their line within 3 hours of my call. Wonderful again. Almost. In reality, they had confused east for west and marked the wrong side of my yard. Thinking I could save everyone trouble later on (and in fact believing it was what I should do), I called JULIE again to report the mistake. Hence the eventual point of this blog (keep in mind, the utility company had "finalized" its line marking and from all intents had fully satisfied its obligation to me).

You can likely understand my surprise then when I was told that I had to wait 72 hours to report the mistake--evidently so the company could self-discover its error and correct on its own. Yeah, that makes a lot of sense. Stupid of me not to have seen it! Anyway, I went along with the program but quite predictably called again after 72 hours to report that the wrong side of my yard had been marked. Not to worry--JULIE would notify the company who was then under the obligation to correct the marking within 2 hours.

Now a quick and logical application to our businesses.
1. Train your employees to look for "dumb" processes that miss the mark of excellence. What is often attributed to staff inadequacy is many times a deficiency of process.
2. When an illogical process is discovered, do something about it.
3. Be fanatical in your pursuit of "exceptional." Looking for, then correcting errors, is not a sign of paranoia: it's good management. Build exceptional brand equity with service that exceeds both customer need AND expectation.

I was half-way to highly impressed. With my tipping point not far off, a great impression was ultimately reduced to a "how not to" blog." A lesson for us all.

Top 10 Retail Turnoffs

2010-03-29T11:47:00.006-05:00

In an informative piece "Top 10 Ways to Turnoff Customers," Shari Waters enumerates these items as definite business killers. Each is really straightforward, so that's pretty much how I am going to lay it out to you. (You'll note that none rises to the level of rocket science.)
1. Dirty bathrooms
2. Messy dressing rooms
3. Loud music
4. Handwritten signs
5. Stained floor and/or ceiling tiles
6. Burned out or poor lighting
7. Offensive odors
8. Crowded aisles
9. Disorganized checkout counters
10. Lack of shopping carts/baskets

I don't know about you but these sure do it for me! Any one will likely be enough of a turnoff that I will not return to that particular offending business. A costly though easily-avoidable mistake.

Using Influence to Sell

2010-03-25T16:26:00.008-05:00

Sometimes I feel like a walking poster child for many of the topics I write about in these blogs. Happened to me again a few days ago. It was noon time and since noon generally signals lunch time, I started looking for a place to eat. Given that my wife and I were in an unfamiliar city we searched for a restaurant that had a lot of cars in its parking area. Not finding much except fast food sites, we were ready to chose one of the nationals when we passed an unpretensive-looking European Street Cafe that didn't appear especially inviting. Seeing it late, we drove past it in our continued search to find anything alternatively. Nothing. As we returned having decided to eat fast food, a late model CLS 550 BMW pulled into the European Street Cafe just ahead of us. That was all I needed. If the owner of the cool BMW was going to eat there, it had to be good. Right?

Actually, it was--exceptionally good! Though if you're ever in Jacksonville, FL you should visit this delightful restaurant for one of your meals, here's the point of it all as far as this blog goes: there are "influencers" and the "influenced" in all areas of business. In this case, I was an "influenced." Have you discovered this for yourself already? If not, the actions of influencers tend to cause others to act similarly. For me, though I also drive a nice car, the driver of the CLS 550 BMW influenced my dining decision even though I never met the individual in my life. I don't even know if the driver was male or female, and for that matter, (s)he might have enjoyed dining on worms for all I know.

Maybe not everyone is so easy to influence as I; however, you would do well to ask and answer the question, "How can I use what I know about influencers (and the influenced) to increase the revenue flow to my business?" Who is that individual, those individuals, that group, or groups whose comments or patronage of your business--if known--would matter? You might even pose the question at a meeting of your sales staff. Be prepared to be surprised.

Oh yeah, have fun out there!

Moments of Truth

2010-03-22T08:41:00.013-05:00

If you're like me, you are always on the lookout for surefire ways to make significant financial gains in your business. Here's one that should help start your week off right--"moments of truth." At its core, a moment of truth is an important intersection between a shopper and your business which gives the shopper an opportunity to form an impression of your business (good or bad). Perhaps surprisingly, moments of truth can start long before a shopper ever enters your store. Consider a passer-by who happens to notice your business. What is the impression (s)he takes away? That's a moment of truth. For that matter, so also is the caller who happened to dial your business as a wrong number. If they talked with someone from your business who identified it by name, they were left with an impression. Was it good, or bad? Does it matter? Would it matter to you if "you" were the caller? Would you shop at the store if you were treated rudely? Ever?

For the many moments of truth which can be identified before, during, and after a shopper experience, each can be further compounded by many different slices of diversity including ethnic, profession, wealth, single, single with children, married with/without children, and disability--to name but a few. Not every slice is worth considering separately. For those you do consider, however, you will likely find that the time spent considering effect will yield returns many times over the cost. More importantly perhaps will be customers who feel as if you designed your business "just for them." And that would be a great compliment indeed!

Now, it's your moment of truth. What will you do with it? By the way, have fun while you're at it.

Don't Fail -- Prevail!

2010-03-16T14:35:00.007-05:00

Building a business is hard work. Unfortunately, it can also be quite discouraging. Over the past few months, I have heard from several small business owners and managers who are operating in a nearly omnipresent fear that at the end of the day, they fail. Hardly a motivating scenario for anyone.

Perhaps you, too, are struggling to survive in an economy that seems to be doing all it can to wrest from your hands what you have built through blood, sweat, and tears. Not having seen your business or knowing of your financial standing, I cannot give you perhaps what you need the most--assurance. What I can do, however, is offer a few words of advice which hopefully, will be encouraging also.
1. Resolve to win. Little is more motivating than a renewed confidence that whatever the circumstances, you will come out on top!
2. Go back to your business plan. It's easy to let a flood of negative circumstances get us off our game plan, and we flounder. It's not necessarily that our plan is bad; rather, we allow circumstances to point us in a direction we should not be going.
3. Diligently scan your business environment for complementary products and/or services that you can mix with your current offering. Look also for needs that a customer might have before, during, or after they have purchased your product. Can you meet them? More frequently than not, rigorous effort will yield rewards. Doing something--anything--when business is slow renews the creative juices that led you to start the business in the first place.
4. Don't overlook your need for balance. Let's face it: bad news and difficult times sap strength. Just as a balloon needs a fresh infilling of air over time so also do we need energic inputs to renew our strength and buoy our spirits. Good books on entrepreneurism, marketing and the like do it for me. Whatever feeds your energy whether books, motivational tapes, alone time, pay attention to letting no more escape than is replenished.
5. Believe in yourself. Sometimes, you have to be your own greatest hero--and especially so if you own or manage the business. Don't doubt yourself now. You're involved with the business as you are because you have an abundance of talent and skill. Pull on those resources now.

Hopefully, one or more of these suggestions work for you. If none do, I'm sure you can find many others that can. Whatever, don't accept bad news as fate. It never has been . . . and it isn't now. Have fun!

"Priceless"

2010-03-03T10:10:00.006-06:00

I'm reading a nearly priceless book. Actually, its title is "Priceless." Written by Wm. Poundstone and released only within the past month, the book deals with the neuroscience of pricing. Though necessarily starting out with a bit more of the academic than any of us practitioners would like, application comes soon enough and in doing so, justifies the first few foundational chapters. The author's main thesis is that anchoring (a mental benchmark for estimating an unknown quantity), exerts a powerful effect on a consumer's willingness to pay. While not necessarily an "effortless" read, the book nonetheless is so informative to my practice that I found myself saying, "Bring it on!"

Regretfully, I am nearly finished with it. It is one of the rare books, however, that I plan to re-read almost immediately--relying heavily on my underlining, of course. With an infinite variety of books to inform my fields of choice, studying this book again is the highest compliment I can pay to the author's treatment of the subject matter.

Read it: you'll like it . . . and you will even have fun in the process!

You've Gotta Measure to Get

2010-03-01T15:02:00.002-06:00

So what goal(s) are you working purposively toward this week? Are they written and are they clearly articulated in a fashion that permits measurement? Remember, if a goal is not written clearly it is formless, and if formless, it does not exist in a shape that facilitates attainment. We tend to get only what we measure. Be diligent here and you'll more likely reap the rewards (and the fun) that lies in retailing.

Benefits of an "Open Book" Company

2010-02-25T10:08:00.009-06:00

Had a great discussion yesterday morning with a business owner whose 30+ member business is fully "open book." In short, every employee, every month is treated to a full examination of the company's books. At regularly scheduled "huddles," department heads discuss their unit's financial performance and each employee (previously taught to understand financial statements) see the black and white net results of income and expenses. Employees are even shown the full share of the company owner each time he takes a distribution. Very transparent throughout.

Though I will be writing more on this subject later, here are a few additional observations.
1. To make this system work, employees were linked to the financial bottom line. In other words, tasks were tied to financial outputs. Obviously, then, performance matters.
2. Employees were regularly rewarded with a piece of the financial pie whenever company profits warranted. It was no longer perceived as solely a management/owner prerogative.
3. Knowledge and understanding (of financial statements) placed additional pairs of eyes on ways to save money. My owner friend mentioned that in one particular huddle, staff brought suggestions for $11,000 of cuts in current expenses. And all were valid! You can be sure employees were rewarded for these savings.
4. Both employee performance AND financial returns increased significantly almost immediately. The effect was immediate with implementation of "open book."

Will this work as well for smaller businesses and/or nonprofit organizations? I can't say with absolute certainty that it will; however, I can say that at first blush, the gains seem significant enough for you to put together a team to study. Yesterday!

(If you currently operate by an open-book process or have tried unsuccessfully in the past, I'd love to hear about it.)

Productive Evaluations

2010-02-22T10:23:00.012-06:00

Most everyone including supervisors, dislike having either to give or receive evaluations. If you happen to be the supervisor, however, you have an opportunity to make these events much less troublesome and angst-filled. Here's how--and they don't have to take a lot of your time preparing.

1. Pre-establish 15 minute periods for each reporting staff member to meet with you to discuss performance. I would suggest you plan 3 or 4 of these meetings with each individual over the course of the year. This eases follow-through as well as planning for the brief meeting.

2. Let it be known early-on that 3 areas only will be discussed: What I like, What needs more attention, and What if any changes need to be made to established performance objectives. Obviously, the latter question presumes that objectives are already determined. If they haven't been set, one of these early sessions can be a good time to do so. Remember, we tend only to get what we measure.

3. Hold to 15 minutes. Focused. brief conversation greatly helps to make these conversations times of real communication-- not periods of intense employee guardedness.

4. Shortly following the review, provide your employee with a brief summary of the conversation in a document that essential asks and answers each of the above 3 areas. You will be surprised how much quicker the process is and how much less-dreaded it is for you to complete.

I have already credited these brief sessions with reducing employee/employer "evaluation dread." Here now are a few other benefits that I believe make this process worth considering.

1. The simplicity of the conference makes it far more likely that evaluations will be conducted regularly.

2. Each session starts on a positive note, i.e. What I like. That makes everyone happy and tends to forestall defensive employee posturing in favor of productive conversation.

3. Negatives are phrased as areas of work needing more attention. It's a direct yet firm approach which invites employee feedback at minimal resistance. Actually, what I really like is that this approach both places an obligation on the supervisor to be specific in identifying areas needing corrective attention as well to make sure that the employee has the necessary resources to accomplish the objectives.

4. Remembering that one seldom gets what escapes measurement, 3 or 4 meetings per year keep metrics in the forefront for everyone--even if rather simplistically crafted due to the position. (Be sure [a] to tie each position to the organization's end goals, and [b] to use the brief evaluation conversation to let the employee know how his or her work has contributed to the whole.)

5. Finally, annual evaluations are simplified in that they principally serve as singular summaries of the 3 or 4 prior sessions. Sure, there may well be other areas of performance not previously covered by these 3 simple questions. That said, should they have been?

The discipline to make this work rests fully with the supervisor but followed closely, has the potential to help deliver some really transformative performance. Try it!

(I wish I could take credit for this approach but it came from another whose name I don't recall.)

The One Mistake You Can't Afford to Make

2010-02-21T18:44:00.009-06:00

Recently I had occasion to answer a very pointed question: What is the one mistake no start up initiative can afford to make? My answer was as quick as it was brief--its homework! An exciting idea pumps volumes of feel good tingly thoughts directly into our brains and all too often flood our "logic" reserves with tainted reasoning. As a result, important steps that need to precede execution are often foregone in favor of intuition (fueled by feel good tinglies) and hurried-up feasibility studies (that mostly, coincidently, tell us what we already know). Why waste the money?!

Then disaster strikes and too late we discover that a pre-feasibility study might have killed the idea at first serious blush. For certain, a thorough feasibility study would have told us the idea couldn't sail even in the stiffest of winds. Few of us are exempt from having made this same mistake -- which makes what I'm saying here worth listening to.

By all means have fun. But remember, do your homework! It really does matter.

I Wish I Would Have Known Earlier

2010-02-15T09:01:00.014-06:00

Nearly each weekday morning, I am fortunate to meet with a good friend--to just talk. For years, I had rigorously reserved early morning breakfasts as alone time, a time to catch-up on overnight news, read in my field, and prepare for the day ahead. Being a nonprofit CEO, much could have happened overnight that would bring the news hounds to my door during the day. Of these three tasks, however, reading in my field was the most treasured use of my time. For me, it immediately jump started my thinking into high gear and inevitably filled one or two napkins with notes--new concepts, things to do, and the like.* Preparing for the day was necessary but by then, I was moving from the land of endless possibilities into the realities of practical application. Wind-ups were always a bit of a downer.

Over the past few months, my friend and I (he's also a small business owner and equally supercharged by reading in his field) have slowly begun to shift our conversation to discussing new ideas and concepts. I am richly blessed and benefitted by these morning meetings. Hopefully, he feels the same way. This morning, another friend stopped by to chat. In the course of conversation, I was treated to a lengthy discussion of how he marketed his quite successful small business. I hope he stops by again.

Here's my application: formerly, when too many people would begin to stop by regularly to chat, I would simply change breakfast locations so I could recapture some of my previous anonymity--and of course, my private time. (Literally, I have changed breakfast sites at least nine times.) Not anymore. What better way to start ones day than to share new ideas (and life) with friends. I missed a lot of good conversations and tons of great ideas. Hopefully you won't. There's too much to teach--and learn--to be a loner. Go for it and by all means, have fun!

* (To illustrate how guardedly private I was in my morning routine, I made the mistake of "furtively" checking my watch about 5 minutes into chatting with my wife--who happened to stop by my haunt one particular morning. MISTAKE--she caught me doing so!! What happened? Just don't get caught!)

Position Vacancy

2010-02-08T14:57:00.004-06:00

It's always a pleasure to use this resource to help managers identify truly exceptional candidates for strong businesses. Matt Sommer, Assoc. Executive Director--Retail Operations for South Side Mission recently passed along the following. A great opportunity for someone.

Mission Mart, the retail ministry of South Side Mission (Peoria, IL) is seeking qualifed Manager applicants for one of its thrift stores. Must be strong Christ follower, regular attendance in a local Church, high level of Christian maturity, and have managment and/or retail experience. Send resume and three references (one of which is your Pastor) to: mart@mtco.com

It's A Wacky Wacky World

2010-01-18T11:51:00.005-06:00

Ever have one of those days (weeks?) when everything seems to work against forward progress? And every subsequent event contributes its own uniqueness to certifiable lunacy? I'm sure you have if you are old enough to read this blog. Life is like that sometimes. Fortunately, normalcy eventually sneaks back into the equation and life returns to sanity.

Last week was one of those weeks for me. Unfortunately, normalcy hasn't yet even entered my universe! But it'll come - eventually - and I will once again rejoin my compatriots who know all to well that life cycles in ebbs and flows.

Right now, I am in a period of reflecting on how well I've handled all the uncertainties, surprises, and yes, even lunacies of the past week. I didn't do very well. I love rapid change . . . but I do better when I know it's coming . . . and so much better still if there's a logic to it. Last week supplied me with none of these.

So here's what I will leave you with. Life is uncertain. Sometimes really uncertain! And many times, it doesn't even make sense--a "lunacy" of sorts. At those times we have essentially two options: react (then it really gets wacky), or pro-act (and therewith attempt to introduce a little common sense into the mix). I was in the "react" column last week. I am now trying proactively to figure how I got so sidetracked. I think perhaps I allowed the "whole" to assume a life of its own rather than to handle each annoyance in isolation. I knew to do so . . . but in the angst of rapidly compounding annoyances, I allowed emotion to overrule "divide and conquer." Maybe my mistake won't have to be yours.

Have fun out there!

Why Do You Do It?

2010-01-09T11:33:00.007-06:00

I want to go back to a theme I introduced some time ago and ask this question: Why do you the job you do? I'm serious with the question. Is it survival -- it pays the bills, you get some free time in the process, and it keeps the in-laws off your back? Perhaps it's a stepping-stone to the job you ultimately want. Maybe it's the position for which you educated yourself long years in school, endured rigorous on-the-job training, and you're finally able to call the shots. Then again, there might be any number of reasons.

Let me get to where I am leading: in the process of identifying all the reasons why a particular job might be a good place to earn a living, don't bypass first defining what "living" looks like. It will not be the same for any two persons. Work is a part of life; it is not life itself. Only as we carefully look at life as a whole, then identify what part work plays can we truly then answer the question--Why am I doing the job I get paid for?

Gotta keep balance, you know. Have fun out there!

A Warning at the New Year

2010-01-01T11:11:00.004-06:00

It's the start of a new year and we all want to think positively--especially given the turbulent decade we've just escaped and an markedly unsettling 2009. But an article in the "Wall Street Journal" caught my eye yesterday and I think I would be less than responsible if I did not at least bring it to your attention--again. So here goes.

Tax revenues are declining. Local and state revenues fell 7% in the 3rd Qtr of 2009 (compared to a year ago) and sales taxes declined by 9% over the same period. Add to these an income tax dip of 12%, sluggish property tax revenues, and a less than enthusiastic projection for 2010 and that could begin to spell trouble for time cherished breaks given to nonprofits and other charitable concerns. Yours included.

I know it sounds almost unpatriotic to say so but sooner or later, governments are bound to take notice of revenue opportunities foregone in not taxing charitable organizations. I don't expect a radical shift in removing charitable deductions to donors, or dis-allowing tax exemptions from purchases and property. But I do see a sure and steady erosion. Soon. Expect also to see fewer and fewer grants to fewer nonprofits. Recognizing that governments are at heart political animals, that financial distributions equate with power, and that monetary resources are ultimately fixed, I cannot help but think that government leaders will increasingly exercise their right to make investment decisions directly rather than de facto to pass those decisions to nonprofits via tax deductions and exemptions.

What do you think? Agree, or disagree? I would love to get your take. Concluding my thoughts, however, I encourage you to take action now to consider a business model that does not presuppose significant government help but rather one which assumes a net income-generating business.

Enjoy the opportunities you will surely find in the New Year!

Merry Christmas

2009-12-25T10:15:00.004-06:00

Christmas morning and we're waiting for kids and grandkids to fill our house with food, gifts, love, and NOISE! But it's noise we love. We're happy also to have our full family with us today since for two of the last three Christmases, one of our sons was flying with the Air Force Special Operations Command in the Middle East. Nice to have everyone here.

Gotta get ready for the arrivals so I will leave you with this quote from Max Lucado taken from his book, "And The Angels Were Silent."

"God did what we wouldn't dare dream. He did what we couldn't imagine. He became a man so we could trust him. He became a sacrifice so we could know him. And he defeated death so we could follow him."

Merry Christmas all!

Don't Just Survive -- Thrive!

2009-12-16T22:07:00.003-06:00

Retailers saw a 1 - 3 percent increase in November sending from October (seasonally adjusted). How did you do? Do you know yet? At a time when quick shifts often define the difference between closing shop or staying open, successful companies realize that analyzing their business' performance promptly is more important than ever. So -- if your monthly sales reports come well into the following month, hurry-up the process. You need the information NOW. Also, study what the data is telling you. I know numbers aren't always sexy but they are always revealing if you'll take the time to look at them. You cannot afford to be casual about performance and expect to survive. Your competitors will ensure that you're not given that choice.

It's a great world out there. Have fun!

How to Deal with Tardiness

2009-12-16T10:09:00.004-06:00

Recently, a manager asked me for guidance on how to deal with a tardy employee. He said he had tried everything from arranging flex hours to stern warnings to complimenting timely arrival to threatening to terminate employment if immediate changes were not made. In his words, "I'm at the end of my rope with this employee and don't know what further to do!"

Perhaps you've there too.

Let me say right away that (1) there aren't universally applicable solutions, and (2) as soon as I might tell you what to do you could likely counter with "I've already tried that and it doesn't work." And you would probably be right--so don't presume in reading further that I am laying out a quick-fix instructive for dealing with tardiness. What I will attempt to do instead is to bring to the front some of the inherent dynamics in handling tardiness. Maybe you'll find a solution somewhere in what you read.

Here are just some of the many subliminal declarations that a chronically tardy employee might be saying to YOU.
1. "I, not you, will define this criterion of my employment."
2. "It is more necessary for me to arrive late than to avoid your displeasure."
3. "I've determined that timely arrival is not critical to my organization's success. Then again, maybe I just don't care."
4. "I am not greatly bothered by your threats of termination."
5. "I do not get upset by the workload I shift to my peers (in being late) or by their disapproval at having to do the extra work."
6. "I am not sufficiently vested in my organization's success."
7. "You have not shown me how NOT to be late given my family responsibilities."

Insightful aren't they!

Now let's look at what a supervisor might perceptually be saying to the EMPLOYEE in allowing him/her to be chronically late in reporting to work.
1. "You have the right to set your terms of employment. Then again, maybe I am too ineffective to enforce the organization's right to set your terms."
2. "The principal tool in my supervisor's handbag of responses is 'displeasure.'"
3. "Your work is not dynamically linked to the organization's success. Your attitude is a real hassle to deal with--but you're not affecting our bottom-line by being late."
4. "I love to threaten you with termination. It makes me feel so powerful!"
5. "I am a strong advocate of equal pay for unequal work. Your peers will just have to adjust; you're special."
6. "I know you're not vested in your work but then again why should you be: it's just a job."
7. " We're one big family here. If I don't take the time to help you figure out how to balance family with work responsibilities, it's because I'm disinterested. After all, it is my duty as your supervisor to help you do so."
8. "I just don't care anymore. For me, too, it's just a job."

That's as far as I am taking this blog. Hopefully, so great insights popped-out at you while reading. Go have fun, now!

Doing the Important Things

2009-12-08T22:30:00.002-06:00

As I am getting ready to say goodnight to a busy, albeit frustrating day, my mind (not unusual) is starting to ruminate on a very simple question, "Did I do the important things?" I guess where my thoughts are taking me is not so much whether what I did was important; rather, did I do the things that truly matter. It's the place where our activity intersects our purpose.

I don't think I aced this one. You?

Seriously Now

2009-12-04T14:51:00.000-06:00

Analyze. Analyze! Analyze!! Running a business is not a passive activity. Analyze how you're performing. Don't guess -- know. Don't rely on intuition alone -- look at the data. Every number, every ratio is begging you to pay attention because singly, or when coupled with other numbers or ratios, yields really important information that you need for good decision making.

Again this week, I have been reminded that far too many nonprofits are managing their businesses too casually, with the cost of course, being foregone net profits and lives that could be touched by the extra funds. If you have a business and you're investing staff and other resources to the effort, go the extra mile and do it right. Take some courses in retailing, read one or more of the many fine books in the field, or perhaps get a mentor. Look at data not only as a snapshot (what's happening at this moment) but also as a linear panorama (what has happened over a broader period of time). Make sure all comparatives are true comparisons. Look for distorted conclusions in aggregated data.

Being successful takes a lot of effort but it's a heck of a lot of fun when you get there. Enjoy your weekend.

We've Got A L-o-n-g Road Ahead of Us

2009-12-02T17:08:00.000-06:00

I recently read that 44 states reported an 11 percent decrease in third quarter tax collections. In fact, according to the Nelson A. Rockefeller Institute of Government at SUNY, every major source of state tax revenue fell compared to the same period a year ago. Unfortunately, projections of a quick recovery are not encouraging, with many economists claiming that recovery could be months or even years after the technical end of the recession. Unfortunately, too, many nonprofit leaders also report similar lags in donated and other income.

Are you ready for this? Have you prepared your organization to survive in the face of decreased governmental support? Likely, grant dollars will be greatly diminished next year. In fact, one funder I spoke with today told me that he fully expected significant cuts in next year's distributions not only from his agency, but also state government. His comment: "The money is just not there."

Here's a question: Could your organization survive if it had to start paying property taxes? Get used to the idea: I am fully convinced that taxation of this sort is coming sooner rather than later. There is simply too much untapped revenue in the charitable sector for government to ignore for long. Unless we see an unanticipated restraint of governmental spending such as we have not seen in my lifetime, the Third Sector must surely become a target for plunder--and that will have a devastating impact on those served by charitable organizations.

I asked earlier if you could survive. Have you considered starting a business? If you have a business already, have you taken discrete, purposive steps to maximize the revenue potential it represents? If you're thinking about starting a business or want to increase profits from a current business, give me a call and let's talk about it. Maybe we can point you in the direction you should go, or maybe we can help with our on-site consultative services. Either way, it's time to get started.

Have fun. Really!

Way Past Reacting

2009-11-30T14:02:00.000-06:00

If you're finding that it is seemingly more difficult to stay ahead of your competition, there may be a logical reason. Last year, most retailers reacted to the souring economy as it unfolded. There was very little advance planning that had any meaningfulness since no one really knew where we were headed. This year, it's different. Most retailers kept good records of what did/did not sell last year and thus have a reasonably good basis from which to anticipate what is still very much a big unknown.

Here's the point: last year, retailers were reacting. This year, they've got more to go on--if only how to manage cash flow during turbulent times. Successful competitors are active learners. They are conducting continuous environmental scans (what's changing; what's trending), they're studying their numbers, and they know that business-as-usual is no longer an appropriate modus operandi for retailing.

So--are you keeping pace? What about outdistancing? How have you purposely changed your operation based on environmental uncertainties? Have you managed to get better? What have you learned today that is going to help you tomorrow?

Have fun out there . . . but play serious hardball!

Nine-Tenths There

2009-11-25T12:00:00.000-06:00

I know I am sounding like the self-appointed Customer Service Czar recently but I'm doing so to demonstrate how little actions--or the lack thereof--make huge differences in the messages they send to the customer. Enter my recent experience buying three sandwiches for take-out from my favorite informal Italian restaurant. When we started to eat, however, everyone partaking discovered that something was wrong with the taste. In fact, it was so wrong that we no choice but to dispose of the sandwiches and start all over with dinner.

Not to waste a feedback moment, I called the restaurant's take-out manager to report the problem and was offered three no-charge sandwiches whenever I wanted them. My name would be on a list and all I needed to do was inform the order-taker. Needless to say, I was pleased with the response and profuse but entirely unnecessary apology.

My feel-good experience ended one week later, however, when I called the restaurant to place a pick-up order of sandwiches. And yes, I reminded the person I talked with that the manager had said I would get my next order at no charge. All he had to do was check the list and my name should be there. Unfortunately, the order- taker was getting confused by my request and I was beginning to feel as if every word I said additional was being regarded with increasingly apparent distrust. As the conversation unfolded (and not much to my surprise), I discovered that the individual to whom I was speaking was the manager. Never fully recalling our week earlier conversation--and there was no list--he reluctantly gave me my sandwiches at no charge.

Small deal, right? Yes, but it left a bad impression--even though he was 9/10 of the way to a fully satisfying response to my problem. Remember, even here, one-tenth of anything will often produce nine-tenths of the impression.

Have fun out there. Above all, remember to give the good Lord thanks for His blessings this Thanksgiving Day.

Make It a Merry Christmas Indeed

2009-11-22T16:12:00.000-06:00

According to a recent Wall Street Journal article, the upcoming Christmas season should see an interesting mix of smarter customers shopping the stores of smarter sellers. Customers and sellers have both been battling it out in a sour economy and both have a lot riding on victory -- or loss. Each have had nearly a year and a half to perfect their art. Who will win should be interesting to see. (Personally I'm pulling for both)

Now here's a question to you as seller. Tell me the three most important steps you will take that will impact 50 percent of the gain you'll see in your Christmas revenues. Can you do it? If not, you may not be as focused as you need to be to be one of those really smart sellers. Remember: always think through the lens of the Pareto principle. That's the law of the vital few and the trivial many. This means that in anything, a few (20 percent) are vital and many (80 percent) are trivial.

This says that most of what you will undertake this Christmas season, store-wise, will have little impact on revenue gains. But a very few things you do will have a great effect. So now -- back to my question . . .

Have fun out there!

Employee Email

2009-11-20T15:45:00.000-06:00

Yesterday's Wall Street Journal had an interesting article on recent court rulings that affect an employer's right to read employee email.* Most CEOs that I have spoken to acknowledge internal policies that regard employee email as company owned. This carries with it the implicit right to read staff email content whenever needed.

According to the WSJ article, however, the days of being able to do so with relative impunity (as a management right, so to speak) appear to be approaching their end. In the past, courts generally sided with corporations and concluded that company computers and anything thereon was corporate property. Not so, now. Judges are increasingly considering whether employers have explicitly informed employees about company policy with regard to emails sent from company computers. In other words, "when and how email is monitored" and "the explicitness of communicating the when and how to employees" become arenas for judicial discovery. Fifty-two percent of employees (in one survey) will have more that a passing interest in that information since that is the number who access personal email from company equipment.

If you're in management, I would suggest you get a copy of this article and read it. You might also begin now to review you company policies on personal use of corporate computers. Develop well-thought-out policies, run by your attorney, then thoroughly educate your staff on content. The more you communicate your policies, the less you will likely have to worry about employees who waste company time doing personal messaging. This is supervision 101, but sometimes it helps to be reminded.

Have fun!

* "Some Courts Raise Bar on Reading Employee Email," Wall Street Journal, November 19, 2009, A17.

Better Take Notice!

2009-11-18T15:11:00.001-06:00

My last couple of blogs have been fairly lengthy, so let me keep this one short. Here goes: When dealing with a customer, look at him or her! Again today, I went through a complete check out process and not once did the clerk look at me. Not that there's any real spine-tingling benefit to doing so, it's just that it sure would have made me feel better. Might even have made me feel like my business was appreciated. Was the process quick? Yes. Will I be in a hurry to return? No.

Now here's where we get a bit serious. Have you ever been enjoying a fine meal at a restaurant when suddenly (with no heads-up time) your spouse/boyfriend/girlfriend wants you to get your waiter's attention--and you don't have a clue who it is? Even though perhaps s/he has checked on you many times. We have all been there a time or two, haven't we?

We feel awful. How could we not have noticed! We're not bad because we didn't pay attention, we just didn't make it a priority to do so. Maybe my clerk--and all of us--need to remind ourselves (daily?) that there is little better we can do than to validate the worth of another. And it can start simply by looking them in the eye. Would have made me feel better.

Go ahead--have fun at your job! You've got my permission.

He Didn't Know He Couldn't

2009-11-17T10:31:00.000-06:00

My wife and I have been gifted with 6 wonderful grandchildren. Each is unique and each does a great job of applying his/her particular individuality to everything they do. For one of the boys (Cree), uniqueness literally screams "Watch out world--here I come!" Even his nickname is unique. You get the idea. He's full tilt forward in everything--always pushing the margins, always challenging business as usual (in kid talk).

Recently, Cree's dad removed the training wheels from his bicycle. It was time he learned to ride a two wheeler bicycle. No sooner had my son-in-law removed the wheels than Cree grabbed the bicycle and started to ride. Let me rephrase: Cree began to speed on the bicycle, turning sharp circles while racing his new freedom cycle. He actually stood up on his bicycle as he flew over small hills. Had my kids not had the presence of mind to grab a video camera, I would have seen this as nothing short of parental bragging.

But there he was--in all his glory. Racing his two wheeler having had absolutely NO training of any sort. Pretty amazing stuff. As best we can speculate, Cree was able to ride his bicycle as a pro because no one told him he couldn't! Fear and trepidation are not words in his vocabulary.

Here's the application. What could you do if you didn't know you couldn't do it? Research has shown that most of any person's creativity is limited at a very early age by the boundaries we adults place around them. "Do this, not that. Draw inside the lines. Think this, not that. You'll never be able to do that." All the old cliches that eventually conform us to everyone else. As a result, the grand majority of us are limited before we ever begin. No wonder our sales approaches are so boring and predictable, and our stores so uninspiring.

So here's your assignment. Tomorrow, you're Cree and your dad has just taken off the training wheels. Approach your day and work full of life knowing full well that anything you try to do you will do. By the way, Cree is young enough that his creativity is still full bore forward. Add that to the mix.

Have fun out there!

It's a Brand Equity Thing

2009-11-16T11:35:00.000-06:00

Every time it happens, I am amazed at my response. Again, today, I attempted to deliver a plasma tv to a repair shop--for someone I didn't even know. Can talk to my son-in-law about that one. Anyway, I made my first attempt to deposit the goods at about 9:30A only to find that the store opened at 10A. My bad. I left with every intention to return later in the afternoon. When the balance of morning duties kept me away from the office longer than I intended to be, I decided to swing by the electronics store and leave the tv. Saved a later trip.

I arrived at the store at 10A and proceeded to enter only to find that the door was still locked. Lights were on in the back work area, however. No problem, I would sit in my car and wait until I saw staff open the door. I waited. And waited. And waited. Finally impatient (after all the sign on the window clearly said the store opened at 10A), I knocked on the door. No response. I knocked again. Still no response--though I did hear noise coming from the store and more lights were now on. It was 10:15A.

Not to be outsmarted, I returned to my car and telephoned the store. Figured a "come to Jesus" moment with the proprietor would be a great way to start Monday morning. Still no response.

Do you get where I am going with this? The likelihood that I personally will ever need this store is nearly nill. That I would tell others how frustrated I was (starting with this blog), quite high. And if I ever do need an electronics repair shop, can you guess one place I will probably never go? Here's the point. There is potentially one or more very good reasons the store did not open on time--which I will never hear. Here's what I did hear.

We're inefficient.
We're disorganized.
We're not really "invested" in our work.
We'll open when we open and if you don't like it, take your business elsewhere.
We're the only electronics repair shop that works on plasma tvs in a 100 mile radius. Good luck finding someone else. You'll come back after you get over being annoyed.
We don't care about customers. They are a means to an end.

None of these may be legitimate. But the fact that I have blogged about it says volumes about the message I perceived. Too bad: I am sure they're great people at heart.

Remember, have fun at what you do, and above all, let others know you're having fun.

Face(book) It!

2009-11-15T13:44:00.000-06:00

Whether you're one of its many fans or not, Facebook has come of age in retail marketing. In fact, according to Bill Emerson of Emerson Advisors, "Social media is becoming the way you connect with your customers." And big retailers are noticing. In fact, more than ". . . 47 percent of online retailers will increase their use of social media during the coming holiday season. More than 60 percent . . . have added or improved their Facebook and Twitter pages this year alone." *

Perhaps surprisingly, Facebook is emerging as an acceptable tool for listening to customer complaints. "Allowing criticisms to remain on a company-sponsored Web page isn't a negative," Emerson said. In doing so, retailers begin to corral (and control) the conversation. Then again, Facebook and Twitter offer great mediums for announcing sales and other special events. Remember, we are quickly becoming a "convenience" society--and we love time-savers.

Are you missing out on these important tools? Don't get left behind. It doesn't take much to get started; then, to carve your place in this rapidly expanding cyber niche. Have fun. It's a great place to play!

(* http://www.mercurynews.com/business/ci_13731720/)

Purposiveness Makes It Happen

2009-11-13T09:45:00.000-06:00

I read this morning that Kohls and Walmart were planning aggressive discounting over the Christmas season. This is additional to already deep price reductions and only two of many, many retailers that will be trying to preserve their piece of the action. What might have been the nearly sole domain of retail thrift stores (and other resale businesses) is no longer exclusive territory.

That's not bad, however. Keep in mind that every intrusion into your niche, every challenge to your uniqueness, every assault on your profits gives you an opportunity to get better. So my question this morning is "What are you purposively doing to get better?" Therein lies the challenge and fun of retailing.

How Is It Going?

2009-11-11T22:29:00.000-06:00

Well, the economy has been in a rough patch for more than a year now. That's not good. Even worse have been the many examples of how greed rules decision-making in so many of our corporate and organizational leaders. We none like to see our heroes fall. As sobering as these shortfalls are, however, difficult times give us a rare opportunity to introspect deeply--both corporately and personally. And if we're wise, we'll likely need to make a few corrections from our findings.

Let's talk for a moment on the corporate side. How are you proceeding with your business(es)? Up until recently, comparisons of monthly numbers against prior year numbers had to be quite depressing given prior year figures were pre-slump. Not anymore. Since we are more than a year into a negative economy, you should now be comparing monthly revenue data against other similar months--that were also affected by the bad economy. How are you doing? Seeing improvement? More importantly perhaps, are you seeing improvement where you should be experiencing improvement? Not every upward trending statistic is necessarily bullish. It is all too easy to be misled by the allure of positive gross sales, and to miss what is really happening with your business.

Don't know how to proceed? Ask someone who does know. If you can't find anyone, that's what Talon Company is here for. Ask us. Let us help you achieve true profitability.

By the way, have fun out there!

Feel the Love?

2009-11-07T16:04:00.000-06:00

I am getting ready to go to a political fundraiser but wanted to take a moment to share a brief conversation I had this morning with a couple of older friends. We were talking about cars and discussing all the usual stuff, e.g. how often trade, what type car preferred, etc. What caught my ear was a comment one of them made. It went like this: "I trade all my cars at SuchNSuch Auto Dealers in Champaign. I never ask about price and we don't haggle. I have dealt with them for years . . . I trust them . . . and they always treat me like royalty. They even give me a loaner when I have my oil changed! I'll never switch."

Get the point I am pushing toward? It's that customer service thing again. SuchNSuch Auto Dealers have a customer for life--all because they respect him and treat him very well. Is there a cost? Probably. Is there a greater return? Most likely. My friend lives 50 miles away from the dealer but will forego all the sellers in our area to return time and again to where he is treated like a king. Wouldn't you?

By the way, really great customer service comes from really loving your customers. And that's something you can't fake.

It's All About What You Know

2009-11-06T14:54:00.000-06:00

The WSJ had an interesting article on Target-Marketing yesterday.* I'll explain what I found interesting, then make an application.

Starting point for the article was a principle we all know, i.e. that web-based marketers use the information they buy to make better ad-buying choices. What the article added, however, was that marketers are increasingly buying ads based on visitors to a particular site versus the site's specific content. In other words, a site that sells women's dresses might conceivably be a perfect place to sell men's cuff links if the visitor data reveals that men (who wear cuff links) tend to by dresses for their wives, and that those who do, tend to visit this particular site. Marketing according to content would logically exclude male shoppers from a market-targeted product, e.g. cuff links. Marketing to web site data, however, provided raw data to justify marketing cuff links on the site.

Here's the application--and it's more of a reminder than a new concept. Actually, it's quite simple:
KNOW YOUR CUSTOMERS . . . KNOW SPECIFICALLY WHO SHOPS YOUR STORE(S) . . . THEN MARKET TO THAT KNOWLEDGE. Anything less, fails to fully meet the shopper's need, and importantly, leaves program-enabling revenues on the table.

Have fun out there!

* Emily Steel, "Target-Marketing Becomes More Communal," Wall Street Journal, (November 5, 2009), B10

Something to Think About

2009-10-28T14:57:00.000-05:00

In their insightful book, "Forces for Good: The Six Practices of High-Impact Nonprofits," Leslie Crutchfield and Heather McLeod Grant write that these organizations have an unwavering commitment to real impact. What is especially noteworthy is that the nonprofits selected want lasting impact as well. "They create social value; they relentlessly pursue new opportunities; they act boldly without being constrained by current resources; they innovate and adapt; and they are obsessed with results." As Martin Eakes, founder of Self-Help commented, "I need to have impact more than I need to be right." (pgs 24-25)

In other words, great organizations are not about large budgets and numbers of staff, program growth, multi-state offerings, public acclaim, or charisma of their leaders. Great organizations are not necessarily about efficiency of their operations, well-defined mission statements, or budgetary compliance. Great organizations are all about lasting impact. Significance of our missions, therefore, lies not so much in what we usually laud as visible symbols of success as it does in what can usually be discovered only with determined effort, i.e. meaningful, lasting change.

Hmmm. Meaningful . . . lasting. Something to think about.

Position Opening

2009-10-27T09:20:00.000-05:00

Received notice from Matt Sommer, Associate Executive Director Retail Operations (at South Side Mission, Peoria, IL) that they're having a Ribbon Cutting November 6th, 10A at their newest shop -- Morton Mission Mart. I'm sure they would love to see you there.

Matt mentioned also that they need to hire more retail associates and truck drivers. Interested parties can respond to: mart@mtco.com.

(Let me know if you have a position you would like me to mention.) Have fun out there!

Newly Posted Talon Quick Tip

2009-10-21T12:34:00.000-05:00

Gosh, it sure takes a long time to get followers via blogs. If you're reading (just not commenting) let me know. If you want different topics discussed, let me know that, too. I'm here to make your job easier . . . and fun.

If you haven't read it already, check out my latest Talon Quick Tip (http://taloncompany.com/tqt.html#div1). In it, I scratch the surface of a very important consideration for any nonprofit considering or operating a business: "Is it a program, or a business?" I think you'll find the article thought-provoking.

Hope you enjoy.

Competitive Retailing

2009-10-05T14:20:00.000-05:00

The most optimistic of us could have hoped the economy would be healthier by now--especially as we move into the Christmas season. Fortunately, for nonprofits having resale businesses, prices per item are already low; thereby, making product naturally attractive. In fact, by now, most have seen a pretty good increase over net dollar this same time last year.

Here's the rub. As we enter the Christmas season still slugging it out with an uncooperative economy, many for-profit retailers are also lowering their prices to make their products more competitive. Arguably, this adds to the universe of retail offerings more directly competitive with nonprofit businesses.

That's ok, after all, that is the heart and soul of a capitalism-based economy. But if you happen to lead a nonprofit and are fortunate to have a business as part of its program or funding base, can you survive the increased competition? Perhaps as importantly, can you thrive? Here's a quick suggestion: Don't compete by getting into a price offering war, rather, use this occasion to find out which products really drive your profit. You can do this by analyzing true dollar yield per square foot of retail space. Not every product will be similarly positioned. If you buy, then resell products, be sure to use "all-in" costs to determine related expenses. If you sell donated goods, do the same thing. You should only differ on what costs comprise "all-in."

Now, use the information at your fingertip to determine what to market in your store(s), and where. Do this properly and you just might surprise yourself at how competitive you really are. Have fun!

Thanks Mom

2009-10-01T09:41:00.000-05:00

Yesterday, we buried our wonderful mother. Though the day was difficult to say the least, time and again individuals made a point of telling us all how much her encouraging words had meant to them. Mom also prayed nearly continuously for a number of individuals. One was a former pastor now suffering from advanced Parkinson's Disease. With halting words that turned into sobs, he managed to say, "When I learned your mom died, I panicked." With increasing difficulty he managed to add, "for 10 minutes!" Mom's prayers mattered greatly to him.

I guess what I have tried to remind myself over the past couple of weeks is this: In the midst of busyness, making money, and laying plans for the future, be sure to do the things that really matter. Like praying for those whose needs come before you, stopping to chat with a friend, taking a moment to give undivided attention to a co-worker--or employee, or just enjoying the day then acknowledging and thanking the Creator for its beauty. In the end, what really matters is pretty simple.

Love you Mom! I'll see you soon.

The Affirming Power of Please and Thank You

2009-09-15T19:02:00.000-05:00

It seems that more and more the simple art of saying "Thanks!" is disappearing. Here's a quick example. Yesterday, I ordered coffee in the drive through lane of a local fast food chain (senior rates of course). "That'll be fifty-four cents," ordered a faceless voice in the monitor. As I pulled forward and smiled affirmatively on the only benefit to getting older, a hand mechanically reached out from the first window, and the faceless voice now with a face said, "Fifty-four cents." Not fifty-four cents, please, but simply fifty-four cents. It still didn't bother me at that point--I gave her fifty-five cents. With no further words spoken, I got my penny back, the attendant retreated behind her window, shut it, and I pulled forward to get my coffee. At the next window, pretty much the same thing. A hand with a coffee cup attached reached outward . . . I took the coffee . . . and the window closed. No "Thank you." Nothing.

I think our customers are beginning to perceive that this genuine art form is disappearing from the retail landscape. And it bothers them. I can't say with any real confidence that they especially notice good manners when they see it: I think I can say they're beginning to take note when they don't.

We have a real opportunity here, folks, to make a significant difference in store profitability simply by doing what should come so naturally to us all--saying Please and Thank you. It will also make your customer's day, and yours.

H1N1 Preparations

2009-09-08T10:37:00.000-05:00

As with all of us, I am seeing much on H1N1 swine flu predictions. As a retailer, it is important that you start early in determining what steps you will take to minimize contagion in your stores as well as how you will respond to a host of sick staffers. Though no one knows for sure whether the virus will truly be pandemic, good planning says you will assume that it becomes so. Plan now: if it hits, it will be too late.

Does anyone have current contingency plans that you would be willing to share?

Ignored -- At a Cost

2009-09-04T11:12:00.000-05:00

A few days ago, I visited my favorite garden center to purchase sod. Not a big order, but about $100 nonetheless. Evidently I interrupted my sales person's conversation with another because I got no personalized greeting. Instead, without dismissing the first conversation, he cursorily asked what I wanted before returning to the prior conversation. Clearly he heard what I said as he rung up my sale ticket, handed it to me, then went back to his conversation. I wasn't exactly offended by the lack of regard, but I did notice. Unfortunately, I had to interrupt my salesman again to ask him where I could pick up the sod.

Here's what I found interesting. The individual my salesman was talking to was a supplier. At the point the salesman first asked what I wanted, the supplier said under his breath, "Take care of him, we can talk later." In fact, he said no fewer than three times that his business could wait until I was taken care of. The supplier got it right . . . and I noticed that, too!

Kind of sad that the truly great customer validation came from someone other than the garden center's sales staff. Not exactly how it should be. Here's my point: every day, we intercept a myriad of these opportunities to make a truly noteworthy impression--and we most likely get only one shot at it. If we look past the mundane of a host of seemingly ordinary encounters with our shoppers, we'll probably miss it.

Multi-task With Care

2009-09-01T10:44:00.000-05:00

Multi-tasking emerged last week as the nation's topic du jour. Unfortunately, the scenario at play reminded me all too vividly of my own experience with multi-tasking. I was a somewhat brash twenty-three old executive and rather proud of my ability to do two, three, or even four tasks at once. That I could do so was good: that I was not careful when I did so was bad.

Here's how it unfolded for me. I never felt it necessary not to continue going full steam ahead when staff were in my office. Accordingly, I would receive and make phone calls, finish reports, and even dictate (quietly of course) whenever I was discussing some problem with a member of staff. Cool, huh? That's what I thought!

Evidently piqued that I was being unbelievably rude, one of my staff members simply got up and walked out when I found it important to take a phone call in the midst of our conversation. My visceral response was to be ticked--how dare she! Fortunately, that simple little action on her part (no words spoken) made an almost immediate impression--and I've tried never to do it again in similar circumstances.

Here's the point I am making. Multi-tasking is great if you're not involved with people. It's great to intersperse work over other work if able. If you do so while engaged with peers, subordinates, or others, however, you're being rude. No excuses offered--I thought I was demonstrating my talents when in fact, I was just plain rude. (In the following blog, I'll discuss how I was recently treated to a dose of multi-tasking in a retail store.)

Price Reductions

2009-08-27T18:41:00.000-05:00

I noticed in today's Chicago Sun Times that Dominick's was slashing prices at its 81 Chicagoland grocers in an effort to be more competitive. The economy is hitting everyone, folks. Question: Have you found it necessary to reduce prices to keep customer loyalty? If yes, have you cut prices across the board, for specific products only, or are you reducing prices through sales and the like? I would be interested in your comments . . . as I know others would also. (I've included the article's address if you would like to read it.)

http://www.suntimes.com/business/1737406,CST-FIN-DOMINICKS27web.article

Welcome!

2009-08-26T19:09:00.000-05:00

Welcome to a new feature of the Talon Company website. Many of you have commented that you would like the opportunity to ask questions of me as well as to see how other managers handle various operational matters of retail management. I hope this meets that need.

In many of the articles I've written recently, I have speculated that the tumbling economy can actually serve as a spring board for improving net income in retail thrift and other low-dollar retail stores. I am interested to know if that’s what you’re experiencing. If you are seeing an increase in profits, is it because you’re getting more customers, selling more per customer, or both? Has your customer base changed? Appreciate your thoughts.