Archive for 2010

Nurse, Purse or Worse

Wednesday, September 1, 2010 by:David Zahn
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Small business owners are a rare breed. They are willing to invest their own thoughts, labor, equity, expertise, and all of their hopes, dreams, and aspirations into a business without any guarantee of success.  In return, they anticipate that the business will succeed and provide back to them the satisfacation and rewards they seek. However, what the entrepreneur seeks is worth truly analyzing as it will determine many of the strategies and decisions made by tht business owner.

Is your business a nurse?

Is your business a nurse?

Nurse

For some business owners the business performs a function that is less to do about employment for monetary gain, and more to do with the sense of fulfillment or emotional health benefits received as a result of owning the business.  That may be in part related to:

Social - for some people, having others relying on them to perform their roles or job tasks is sufficient.  For others, it is important that they feel part of a team as opposed to an individual contributor and they enjoy the community aspects of the work environment.  For still others, it is about the shared accomplishment in completing a project creatively with others.

Self Esteem -in some instances, the entrepreneur enjoys the feeling of owning a business him or herself and having their name on the door or shingle (or invoices).  It elevates their own self perceptions of what it means to be a success and fuels their desire to perform at a higher level.

Sense of Purpose – owning a business is a daunting task and for some the challenge of doing so well is motivational and a rewarding.  Knowing that “the business needs me” is very fulfilling and provides those entrepreneurs with a mission and reason for them to go to work. 

The emotional aspects of owning a business can be overwhelming for some people, and for others, it is a positive that energizes them, fuels them to seek improvements, and provides them with reasons to go to work each day or night.  The business in that sense provides a healthful outlet for the entrepreneur.

Purse

Another common reason given for why people choose to start their own businesses is related to the upside potential available to them monetarily.  A business owner is not constrained by salary plans, union agreements, contractual limits, etc. and are not capped in terms of their earnings.  Of course, that also means that they do not have a guarantee of income either.  The business owner assesses the likelihood of a product or service being well received by a segment of the purchasing public and attempts to opportunistically fulfill that need before others do, better than others currently do, or create a need that the market was unaware it had and then seek to meet it and capture the entire market for him or herself (think IPOD or E-book readers).

Worse

Of course, there is also the downside of what a business represents for some entrepreneurs and it must be assessed or evaluated to ensure it does not create conflict for the business owner or the business owner’s loved ones:

  • has the business become a burden or negatively impacted the entrepreneur’s emotional state (often surly or moody)?
  • does the business require so much time that it encroaches upon leisure time, family commitments, or what was once thoughy of as non-work time?
  • Is the business owner able to differentiate between “on the clock” time and “home life?”  Very often, due to technology and wireless communications, entrepreneurs struggle with staying away from emails, text messages, or other remotely delivered communications and so there is no delineation between being at work and being away from work.

When strategically assessing whether to go into business for oneself, or even analyzing if the business is being used as a resource to deliver on one’s life’s goals, it is helpful to think in terms of whether what one seeks is a nurse, a purse, or if the business has become something worse.

Is Stew Still Right?

Monday, August 16, 2010 by:David Zahn
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A week ago a JetBlue flight attendant received quite a bit of attention for doing what so many employees have dreamed of doing. Steven Slater lived out the fantasy of the old Johnny Paycheck song, “Take This Job and Shove it.”  The reports of the incident have become well-known by now.  In spite of the incessant announcements made by the flight attendant not to stand up and open the overhead compartments until the plane had stopped taxiing to the gate, one or more passengers assumed that the rule was for others, and not them (as a frequent flyer myself, I am left to wonder, “Where did they think they were going anyway?  It is not like you can deplane any sooner and get on your way.  You still have to wait for the door to be opened and the aisle is only wide enough to accommodate a single passenger at a time – you can’t “cut ahead of anyone” even if you wanted to!”).  The ensuing conflict apparently ended when the flight attendant suggested that the passengers attempt to do something that is anatomically impossible, took a few beers with him, and then released the emergency exit and slide and left the plane on the tarmac with all of the passengers still aboard.

The immediate response across the social media sites and elsewhere is what has become the more interesting part of the story. His actions have resonated with many and has led to “fan pages” and much discussion about how his actions resonated with so many.  Given the current economic crisis, the layoffs, and the general feeling of oppression felt by those that still are employed in jobs of having to do more work for less pay, benefits, or appreciation – Slater’s actions seemed to be viewed as a victory for the downtrodden.

Going Back To Stew

Stew Leonard's approach is in direct contrast to Steven Slater's

Coincidentally, this weekend included a stop at the Stew Leonard’s on the Berlin Turnpike for me and the dichotomy between Slater and those that line up behind him cheering and the way that the iconic retailer view customers could not be more stark.  Are there grocery customers who are rude, who act selfishly, who are angry, try to take advantage of others, and commit all other kinds of social indiscretions – sure!  However, the response at Stew’s is to offer them another sample, attempt to offer them something to please them, ask how their experience is as they shop, and at minimum offer them an ear to listen as they complain.

While some may think that responding with kindness to rudeness just encourages more bad behavior (and Stew Leonard’s almost seems to invite that by proudly claiming that the customer is always right), the motivation and  interpretation may in fact be quite different. 

As a shopper, I do not want to be restricted in receiving any of the benefits of the “Stew Leonard’s shopping experience” just because some dolt abuses it.  Stew Leonard’s appreciates my business and so is willing to tolerate the occasional knucklehead who acts inappropriately, because the overwhelming majority of shoppers don’t! 

Instead of allowing rules and policies to be created to account for the very few at the expense of the majority, the retailer is willing to put up with the rare headache of a customer so as not to deny the many that choose to shop there over other competitors because of that experience.

Airlines or Grocers

Now, admittedly, if someone behaves inappropriately in the frozen food aisle by shouting at their kids to put down the ice cream, blocking the ability of others to pass, or stopping traffic to take a cell phone call – it is frustrating at worst.  If someone does something in an airplane that endangers the lives of others, it is quite a different story.  Therefore, the rules and expectations of behavior need to be enforced differently on a plane.  However, while there is never an excuse for a customer to strike an employee (as has been alleged in the Slater incident), to swear at an employee, or to refuse instructions based on protecting the customer’s (and those around the customer) safety; it is certainly a much more pleasant experience to shop at Stew Leonard’s than it is to deal with airline travel these days.  Is it just mere coincidence?

Back to School For All

Friday, August 13, 2010 by:David Zahn
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Back to School is not for kids alone. Employers and employees can benefit as well.

The weather here in Connecticut is still rather summery, but the commercials have already begun to run for the sales occurring on back to school supplies. Many kids are trying to slow down time to savor their summer for a bit longer, but quite a few parents have the wisdom to know that returning to school to build on skills, abilities, and knowledge is a very exciting proposition and will better prepare their children for eventual careers, personal development, and general wisdom and insight. However, these same parents don’t always recognize the importance of their own continuation of learning and education on their jobs. 

The skills that were once sufficient to be considered an expert or even to provide minimally acceptable customer service, may no longer be deemed as such. Competitors change their ability to meet needs, customers change their expectations, and the level of performance needed to remain at previous levels of success changes.

Lifelong Learning

Professionals (medical, accounting, legal, etc.) are required to maintain their certificates or licenses by going to continuing education to ensure that they are exposed to the latest thinking within their industry.  Workshops conducted by associations of professionals, trade groups, unions, etc., allow people to stay at the highest levels of expertise.

The same is rarely said for many other employees that work within retail, service, or other businesses.  A good number of these employees are still operating with the skills that may have once been accurate, state of the art/science, or best practices in the industry.  However, advances in technology, changes in competitive market conditions, or any other factor may have rendered those skills as outmoded.

Therefore, it is incumbent upon the employee to commit to lifelong learning and be devoted to constantly upgrading their skills and knowledge.  Currently, it is the rare employee that remains in the same career (nevermind the same employer) for the duration of their entire working life.  The ability to change directions while in mid-career is essential, and to do that well requires the ability to learn new skills.

The Learning Organization

Author Peter Senge (The Fifth Discipline) is credited with the labeling of those companies that emphasize ongoing employee development as, “Learning Organizations.”  According to Senge, a learning organization puts emphasis on the employees working within the company to constantly expand their competencies to generate the business results.  Moreover, the emphasis is on innovation, new ways of problem solving, and thinking in ways that are not outside the conventional norms.

A core thrust of a learning organization is that there needs to be freedom within the company to challenge precendents, and pursue new ways of achieving better results.  Speed of response is held in high regard, and organizational structures are designed to increase the opportunity for people to interact and share ideas (non-hierarchical).

Get on the Bus

So, while the younger members of families may be preparing for the return to school, it behooves all of us, even those that have graduated from degree offering institutions decades ago to reconsider whether or not it would be beneficial to brush up on current skills or extend our competencies into new skill areas.  While we may not have to go shopping for clothes, don’t need to choose between spiral notebooks and looseleaf books, and need not bring in a letter from our parents to give to our teachers; the time for becoming a student may be overdue.

Pledge to get into a class, read something you would not otherwise read, attend a lecture from someone you do not currently agree with, watch a television commentator you have not viewed previously, or step out of your comfort zone to stretch your own awareness, insight, and understanding.  Who knows, you might just get the A+ you have been seeking by securing a promotion, a new client, or better meeting an existing job’s requirement.

How to Prevent a Repeat

Monday, August 9, 2010 by:David Zahn
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The recent news has filled with the tragedy that occurred at the beer distributorship in Manchester, CT.  A disgruntled route driver was accused of having stolen from the company and reselling it on his own.  As the story seem to be unfolding, the driver’s employment was terminated and he then requested a drink of water in the corporate cafeteria as he was being escorted out the building.  Unknown to the corporate executives, he had previously stashed firearms in his lunch box and accessed them to start a shootiung rampage where eight people were killed.

Omar Thornton, accused gunman in beer distributorship massacre

While the event is still being scrutinized and investigated by police and law enforcement personnel, the business community is left to wonder how to ensure that their companies will not be next. 

The nightmare that occurred in Manchester has at least three issues that cause enterpreneurs to pause:

  • Racism
  • Employee Termination
  • Firearms at work

Racism

The alleged gunman’s family and friends are adamant that the employee was subject to numerous examples of racism, discrimination, and bias.  The company refutes that the work environment was hostile in any way, and point to there being no record of any complaints registered.  However, there is a lesson to be learned here. 

Companies would be well served to constantly monitor and reinforce the importance of maintaining a discriminatary free environment.  At the most mild, the “jokes” and teasing that may occur under playfulness in one person’s  mind can and are very differently received by others.  At the worst, the williful and intentional promotional practices, work assignment distribution, or other ways of interacting with empoloyees based on race of the employee are poor business practices and may be subject to legal raminfications.

Just passing out a handout or posting a form in a common work area about being anti-discriminatory is not sufficient.  The practices and policies of the company must be vigilantly managed.

Employee Termination

Few things evoke more anxiety in business owners than having to terminate an employee.  It is emotional for the people involved and can easily escalate into anger, tears, or other reactions.  Based on reports, it appears that the beer distributorship approached this conversation as correctly as they could, they:

  1. Chose a location to have the conversation away from other workers in a neutral office.
  2. Had multiple executives were there, so it was clear it was a business decision and not just a personality issue with one person.
  3. Provided examples, proof, or evidence (work samples, performance appraisals, or video tapes in this instance) of why the performance is not up to standard.
  4. Offered an opportunity for the employee to resign or be fired (treated the employee like a person and recognized the importance of maintiainig dignity).

It is never easy to separate an employee from employment.  Given that work represents how one meets financial obligations, it is not to be taken lightly.  Prior to firing someone, attempts should be made to provide remedial training, management, and clear communication (in this instance, stealing is likely not something that could have been addressed by the company in any other way than firing).

Firearms at Work

The last issue is one that is controversial and continues to be debated in the courts.  Lining up on one side of the discission are those that fear that firearms in the workplace may lead to acts of violence against others within the workplace.  On the other side are those that maintain it is a constitutional right and that if MORE people were armed or had ready access to firearms in the workplace, it would serve to actually REDUCE the incidence because people could defend themselves before many were victimized.  Additionally, the claim is that if a would-be shooter knew that others had guns at work, the concern about being shot themselves would limit the number of people who would even chance shooting others.

The danger is clear any time a business makes the decision to end someone’s employment.  The steps to avoid confrontations like the Manchester beer distributorship from happening in any businesses require forethought and care.  It is only through proper preparation that the likelihood of unexpected occurrences can be minimized.  The beer distributor tragedy is a good wake-up call and reminder that all businesses should assess their current practices for handling problem employees, termination procedures, and ensuring that the work environment is a safe one for alll employees.

A False Favre

Thursday, August 5, 2010 by:David Zahn
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The annual circus around will Brett Favre come back or not is in full bloom. The rumors, speculation, and hypothesizing are being given the kind of time and attention more often reserved for true news stories that impact our daily lives much more personally and dramatically than whether a Football Quarterback who is on his fourth or fifth threatened retirement is really going to walk away this time for good. However one feels about his decision and the implications for their favorite team, there is a lesson to be learned by watching the evolution of his decision-making and actions.

Most have stopped caring if Brett Favre returns

Trust

When Brett Favre first hinted that he was considering ending his career, there was a genuine mix of sorrow that the game and the league was losing an iconic player and a feeling of happiness that he was walking away while he was still able to continue whatever his life’s pursuits were outside of football unencumbered by injuries that would otherwise prevent him from succeeding.  Most fans of the game wished him well and acknowledged they would miss his exploits, but knew it was time to move on and cheer for others.

The trust he had developed between the fans and himself by being approachable, humble, and able to rise to challenges made the relationship special.  In the five years since he has announced his retirement for the first time, he has fractured that trust and lost the feeling many had for him.

Reasons

His reasons for retiring and unretiring may be heartfelt and sincere, but it just comes across as if he is negotiating unethically.  If he does not want to play for a team any longer, than say that and work to make that happen.  If he prefers to avoid training camp after all of these years as a pro, then say that and don’t pretend you are retiring just to come back as the season starts.  If he is injured and needs time to heal, then have a Dr. confirm where his recuperation is at versus expectations.  If he wants more money, then communicate that. 

His playing coy with the media, his employer, and the fans has lost any allure it once had.  He portrayed himself initially as a simple living guy off of the farm, but now appears as sly and calculating as a person can be without becoming a fox. Simply put, he bores the fans now and any goodwill he had built up has been eroded beyond the point of repair.  Sure, there will be some that will forgive and forget if he reappears on the field and is able to perform admirably.  For the vast majority of fans though, he is now an object of scorn and derision.  He is a cartoon to be laughed at, not admired.

Business Lessons

The important thing to take from the way Favre has handled this issue each year since 2005 is that fans or customers will be loyal to you as long as they can believe you when you speak. As business people, we have to stop and consider if we are doing things Favre-like:

  1. Telling a customer that this sale will end in a week, only to have it extended frays that trust
  2. Announcing that one has the lowest prices or broadest assortment, only to have the customer uncover better prices at a competitor
  3. Claiming to have a liberal return policy, be easy to do business with, or being proactive with a highly trained customer service staff – all proven false when a customer has to jump through hoops, there are conditions to be fulfilled, there is red tape, etc. that must be adhered to before any of the claims can take place.

Favre may not care what fans or others think of his toying with his talk of retirement.  After all, he is a millionaire many times over and does not likely care what the media reports, commentators bloviate, and bloggers rail about – but few business can afford to treat their customers as pawns in a game to be used or ignored as one sees fit.  Eventually, the customer gets wise to the game and seeks out other suppliers or vendors to meet their needs.  Unfortunately, there is no Quarterback in business that can complete a touchdown pass after the game has ended due to lack of interest!

Running the Relay Race

Wednesday, July 28, 2010 by:David Zahn
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Many businesses began with two or more people excitedly agreeing to put their trust, faith, skills, and future successes in each other’s hands. Plans are made, decisions are reached, enthusiasm and excitement at what the future holds fuels late nights, weekends, and vacation time spent building the business.

However, the real test of a business, and a partnership is how well is the business performing after the initial exuberance of starting a business wears off and everyone assumes their daily role within the business.  Running a business is more akin to a relay race than it is to a sprint.

Business is akin to a relay race between partners

 Business Plan

After having some time working IN the business (creating products or services, interacting with customers, handling the cash flow issues, etc.), a certain routine becomes established and methods and procedures evolve.  However, that does not always reflect what the original plan contained.  In some instances, the reality of running a business identifies and corrects for opportunities or problems that were not foreseen when the business plan was put together.  In other cases, the daily demands of the business slowly change how the business is conducted away from the intended approach – and not for the better.

That is why it is critical for partners to occasionally connect and work ON the business.  Rather than focus on resolving the next client or customer complaint, they should share ideas on why customers are complaining at all and what they need to do about it in the future to prevent it.  Instead of just meeting each customr request for a product or service, they need to ask themselves if their business model still is appropriate or if they need to revisit that.

Alignment

With the best of intentions, people can agree to work together and split roles, responsibilities, and other aspects of the business – but until they begin to do it; the philosophies and perspectives each will rarely surface or become known.  In one business that I am familiar with, two partners both agree that they want to run their business profitably, but they disagree on how to best accomplish that. 

One partner views expenses as “bad” and seeks to minimize them as best as he can. The other partner looks at expenses diferently.  She sees certain costs, like inventory, new technology, and training for employees as ways of enhancing assets and as contributing to their ability to be profitable.  Neither is necessarily wrong, and they both seek the same thing (profit).  They just see different pathways to accomplish it.  This difference of perspective has not bubbled over into disputes or conflict, but it does have the potential to do so in the future if they don’t come to some agreement.

 Happiness

It is also appropriate for business partners to take a moment during the relay race of running their business and consider how they feel about the business and the partnership.  They would be well served to discuss:

  1. Are they enjoying the work – if not, what changes would need to be made to allow them to enjoy the work?
  2. Do they feel valued – when the partner works in the business, are they feeling that their efforts are appreciated, recognized, and acknowledged?
  3. Are they fulfilled – is the work still challenging and providing a sense of accomplishment, contribution, and reward?
  4. Is the business providing sufficient income – while it is not the only measure to be used, and in some instances it may not be the most important one, the partners need to address if the business is sufficiently profitable enough to meet the financial needs of the partners.  If it is not, then ways of accomplishing that need to be surfaced and decided.

Running a business with a partner allows for each person’s strengths to be leveraged and applied, but it also means that occasional checkpoint meetings need to happen.  Failure to discuss these issues can lead to resentment, assumptions, perceptions, and beliefs about the business and each other.  If that is allowed to continue, it can be the difference between a clean hand-off of the baton in the relay race and a disqualification because of the lack of coordination between them.

It is too easy to get drawn into the pressures of the day-to-day and lose sight of the larger race being run.  In order to manage the business and not be managed by the business, occasionally arranging for a partner meeting, even if over tacos and margaritas, will go a long way to resolving issues before they cause the parntership to implode.

Customer Service Continuation

Thursday, July 22, 2010 by:David Zahn
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On June 11th, 2010, I wrote about an incident that had occurred where a major retailer stumbled in responding to a customer raising an issue with their customer service.  Now, nearly 45 days later, it is time to revisit that scenario and see what has transpired since then.

Quick Review

Just to refresh memories, a major retailer had scheduled a delivery of a major appliance to occur between the typical four hour window that has become standard in the industry currently.  A confirmation phone call was placed the night before to re-confirm that the customer will be home to receive the appliance.  Everything was in place and the customer had acknowledged that someone would be home to receive the shipment.  Further, the customer called early the day of the delivery and tried to gauge or assess where in the queue the shipment was for the day to be absolutely certain that someone would be home at the appointed time.  The retailer responded that the shipment was still scheduled to be delivered within that four hour window. As the customer waited beyond the four hour window, a phone call was placed to the retailer to inquire when the delivery was to occur.  It was at that point that the customer was alerted that the driver assigned to that territory route had not come in that day, and therefore, the delivery needed to be rescheduled.

About three days later, a delivery was made (after the customer had to take ANOTHER day off from work to await the arrival of the appliance), and the appliance arrived dented.  The customer had to point it out to the driver of the truck, who answered, “it won’t impact the performance of the appliance.”  After some negotiation, the driver consented to reduce the cost by $50, and the customer, out of frustration and the need for the appliance, accepted.

Clearly, the customer was enraged and decided to communicate the dissatisfaction with the treatment received to more senior executives within the retailer.  What follows is the level of customer service received AFTER a complaint had been registered.

Dealing with customer service can be infuriating.

Follow up

The customer sent a letter enumerating the ways the retailer had not provided customer service nor even accurate information when asked very direct questions about product delivery times that THEY had established.  Here is what then took place:

  • A form letter was sent to the customer simply “acknowledging” receipt of the original letter and promising that someone would review the contents of the letter shortly and respond if appropriate.
  • About  4 days later, a phone call was placed by someone out of the corporate office sharing that the issue had been placed with an “escalation unit” and that a response would be given shortly.
  • When the customer had STILL not heard back from the company 3 days later, a phone call to the “escalation unit” during standard workday hours went into voicemail and was not returned.  Further adding insult to injury, the phone number was not even a toll-free number, so the customer had to incur toll charges for leaving the voicemail message.
  • The company’s response (now a week after the initial contact) was that the delivery service is contracted out and therefore, they are not responsible for any delays associated with that aspect of the customer experience.

Of course, the retailer in this instance is COMPLETELY wrong.  The customer purchased the product, contracted with them for delivery, and expected the product to arrive as scheduled.  Unfortunately, pointing fingers at a sub-contractors  does not generate confidence or loyalty with customers and serves no purpose in building relationships for future prospective purchases.

Of course, this retailer has lost much of the market dominance it once had, and the reasons are mutli-fold, but if the way they interacted with this customer is any indication of their management strategy; this is one company that will not survive much longer.  Companies must be responsive to their customers, be transparent in their communications, and provide accurate responses to questions, and deliver on their commitments.  If they choose to subcontract or outsource functions for economic or efficiency reasons, that is certainly a business decision that can work – but it must be managed appropriately, and the customer can NEVER be disadvantaged by the decision to save money.

Business is not Immune to ID Theft

Monday, July 19, 2010 by:David Zahn
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Most of us have received unsolicited phone calls, emails, and even paper mail warning us of the dangers of identity theft.  The outcomes are dire.  Bills being run up on credit accounts, legal situations arising requiring defending actions that we are unaware of, and the cost and expense of proving that the actions of others are responsible for reported debts, illegal activities, and commitments.

Identity theft is not a joke and can be very costly

 Steal Traps

Not too long ago, there had been a commercial that was both provocative as well as amusing.  In the commercial, a series of people brag about purchases they have made – only the voiceover clearly does not match the person that is supposedly talking.  In fact, the purchases have been made fraudulently through the theft of someone else’s identity.

The commercial is very clever in compelling consumers of credit card companies to protect their accounts and identities by purchasing an additional service for a fee that will track purchases, unusual expenses, or provide an insurance of sorts against expenses that were not legitimate.  The commercial focuses on the consumer and personal use of credit cards, however, the same issue exists for corporate clients.  Small businesses especially rely heavily on their credit cards, and thus, are require special vigilance in protecting their identities from criminal access.

What Is Identity Theft?

By way of definition, identity theft is what occurs when someone uses your personal identification data such as a credit card number, Social Security number, bank card Personal Identification Numbers (PIN) or name to secure credit and make fraudulent purchases. Unfortunately, most people aren’t aware they’ve been hte victim of a crime until they begin to receive collection notices or phone calls from collection agencies or creditors seeking payment for expenses that the credit holder is unaware ha sbeen incurred. According to Stamford, CT online market research firmInsightExpress (www.inisghtexpress.com), it happens more than you might think. They claim that fifteen percent of Americans have been victims of identity theft.

Businesses Are Not Immune

Businesses are as likely to be victimized by identity theft as an individual.  However, where many consumers check their statements and can easily recognize a charge they do not recall making – not all businesses are as vigilant in checking their statements (banking, credit cards, or other invoices) given the large number of suppliers that a business may interact with in any given time period.

In a recent NFIB interview on the subject, it was reported that according to Lee Smith, president and COO of Insight Express. “I don’t think the risk for a small-business owner is substantially different than the risk for consumers because a lot of small businesses do use credit cards,” Smith says. “And credit cards are a way in for criminals.”

There are ways to protect yourself, Smith says, such as locking mail boxes, shredding paperwork and mail-especially unwanted credit card solicitations-and securing credit card receipts.

And since crimes do happen, prepare yourself ahead of time, he says. “Call your financial institution and ask them what kind of identity theft protection they offer for small businesses,” he says. “The risk and protection may be different than what you get as a consumer.”

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