Interpersonal Business

Vol. XXXVI

Dear Manager,

With time, our image can often be taken for granted. What would someone surmise in the first thirty seconds if they were to walk into your office right now? Do you find yourself pushing hard to do a last-minute clean up in anticipation of visitors? Does your place of work suggest you simply don’t care? Walk in with fresh eyes. Would you be impressed?

There are individuals who obviously thrive in the world of making an overstated impression. While this approach is beyond my comfort zone, I have to admit that their sense of theatrics has certainly gotten my attention! A reasonable portion of our overall budget should be devoted to our image and visibility. How can we put our best foot forward?

Let’s step beyond our personal office and focus on other areas of high visibility that may need an update. Is your reception area neat and pleasant, or is it cluttered with several days worth of UPS deliveries? Does your receptionist fully understand his or her value to your organization? Is their personality uplifting and enthusiastic, or is it a downer? Do first-time callers and long-term customers receive the same warm greeting?

Receptionists are our gatekeepers. While they are often skilled in
diverting unnecessary and nuisance calls, we cannot expect them to be mind readers. Have your receptionist take a name and message from each and every caller, regardless of its nature. Without knowing all circumstances of each call, how many opportunities have been lost due to our desire to avoid gate crashers?

IS ANYONE HOME?

Do you have a receptionist at all? A pleasant, confident greeting establishes the tone and level of professionalism for you and your office. The value of using automated answering systems has been highly exaggerated. Consider maintaining a specific line open for your customers’ use that provides an immediate and helpful human voice.

Regarding telephone voice, I will never forget hiring a receptionist who had recently moved to the Pacific Northwest from an area of the country with a different accent. I soon began receiving calls from my sales associates and customers, pointing out that “the person who answers the phone can’t pronounce your name.” This individual was the only scenario worse than an automated attendant!!

YOU, TOO, CAN ENJOY A MAKEOVER!

I’ve found that every five to seven years it’s time to give your image an update. Why not begin with a new and exciting approach to your logo? Times change, tastes change; there can be nothing more revitalizing than a timely, well-planned face lift. (We all know we’re going to need one of those sooner or later!)

Find a designer(s) who can “get into your head” and convey the true feel of your company. Ask to be provided with a number of options and logo variations. The right image can be a very powerful reflection of your organization. Relatively reasonable in cost, this single makeover can dramatically impact your image. Incorporate your new look into all your stationery, signage, brochures and trade show promotion.

If there is an area in which to consider an overstatement of your image, it should be at trade shows. Your greatest opportunity to impact a client’s perception is in “your home.” Keep in mind that your sales people and your trade show presentation will comprise 75% of your customers’ perception of your organization. I have always believed that (within reason) a trade show is your greatest opportunity to present yourself as the most dominant player in your category.

This can be done with a very reasonable (well, maybe semi-reasonable) budget. Find individuals within your organization who have a flare for design, merchandising and the ability to create the unexpected. Invest in affordable creative and effective props. Remember, your objective is to promote innovation and excitement, not just eat up footage with two-story monoliths.

Manufacturers, more than anyone else, need to assume high image visibility through name recognition. Where better to begin than with your current end-user? How is it that the average consumer will know one manufacturer by name and search it out, while others seem to go completely unnoticed?

Don’t let the use of point-of-purchase advertising be an afterthought! If it works for the “big guys” it can certainly work for you. Your signage and point-of-purchase materials are the most effective means of getting your name in front of the customer. Make them innovative and eye-catching, as they reflect the enthusiasm and flair of your product. Provide them at no cost, and with every purchase.

With the instant and global opportunities available on the internet many new options are now available. The most effective use I’ve seen has been in the promotion of products in conjunction with a listing of locations, by city, where these products can be purchased. How better to have a heightened role in your customer’s success, as well as your own? “We can put you on the ‘net!” can be a great selling tool in the field.

Sales agencies also have specific and substantial reasons to maintain their image and visibility. For example, I was actually asked to represent a major new manufacturer a number of years ago simply because their current sales team chose not to stop by the manufacturer’s booth at a national trade show! Extreme, but true.

Trade shows are obviously a great opportunity for manufacturers and sales agents to get to know one another. They are also an excellent environment in which to cultivate the image and visibility of your sales agency. Make every effort to know your competition well – their products as well as their key management. You just never know … these relationships may become even more valuable in the future. Good business suggests a broad knowledge of the market and a position of strength for all future unforeseen circumstances.

For both manufacturers and sales agencies, word of mouth is probably your greatest source of visibility and image. Unfortunately, a poor image often speaks louder than one of integrity. Reputation overrides all other surface efforts in image promotion.

Manufacturers and sales agencies have a great responsibility from top to bottom to maintain the values of the whole. Sometimes it’s wise to set aside the signage, logo, and trade show and take care of your personal image first! Your image and reputation follow you everywhere; it is found in the words that follow in your path.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XXXV

Dear Manager,

All companies seem to address these issues from different perspectives. Some set no objectives, some set forecasts based on insufficient data, and some take their forecasts dogmatically. Others find the balance, maintain very real expectations, and find them to be productive. But please….

GIVE ME QUALITY NUMBERS

How can any manager possibly manage with ineffective or inconsistent expectations? Under these circumstances, companies seem to reward those who fail and reprimand those who succeed. Amazingly, many companies look at their sales figures and daily sales bookings in a similar light.

In this scenario, a company’s focus is formulated and translated through their financial department. Accounts receivable and payable make the rules. Shipments, not sales, reign for these companies, because of its relationship to the bottom line. Daily sales sheets and historical comparisons are nowhere to be found!

The analysis of receivables, payables and shipments have no direct relationship to current sales. Sales drive all aspects of an organization, while shipments are a support function. As an indicator of success, shipments are old news. How can a company get an accurate picture of current business by living two to four weeks in the past? How can sales management possibly be asked to be accountable for information so dated in nature, unless the intent is to provide them with a safe haven in which to hide?

The number of companies who rely on this dated information is nothing short of perplexing. From a pure sales perspective, how does the factory know if I exceeded my previous year’s sales or not? If shipments will determine my success or failure, I will need to monitor both their purchasing and shipping departments to maintain an accurate evaluation of their/my performance. This is what I am now being held accountable for! I wonder how many sales people from these companies were terminated due to their perceived lack of performance during a UPS strike?!?

I SUPPOSE ONE ALTERNATIVE IS NO DIRECTION AT ALL

While accuracy is critical for managers, forecasts are intended to establish patterns, and form comparisons for their sales people. How is this possible if no forecasts are given? I know of many manufacturers and sales agencies that do not even provide forecasts for their sales people. Once again, this is an example of management living in the past. Should problems arise, management and their sales people are often caught flat-footed and in no position to respond. By then it can be too late. Sales management, in contrast to the big game hunter, gains no benefit from the element of surprise.

When a solid foundation is established, the greatest benefit of forecasts for all companies is the ability to bring focus. Quality numbers simply don’t lie. There is no refuting the best of the best and the worst of the worst. There is no one quicker and more capable of defending (and even finding the bright side of) poor performance than a good salesman. This is why they are in sales. There is no one better at destroying your position than a sales person who is asked to be accountable for expectations that reflect inaccuracies in your system. Quality information is a manager’s only salvation!

THREE DISCIPLINES OF FORECASTING

1. Develop objectives: This can be done weeks prior to the end of the year. Meet with your associates to gain a feel for the marketplace. Determine their objectives, and what they feel are reasonable expectations for their presentations. Share your thoughts and responsibilities with them individually, or as a group.

Always remember the following premise: Manufacturers anticipate growth. This is why we, as sales people, have been asked to represent their products. Sales people should expect quality products and presentations. This is why they have chosen to represent your products in anticipation of meeting mutual expectations.

While equal in foundation, these two perspectives are seldom considered simultaneously. Factories will rarely admit to poor performance in the marketplace, while continuing to expect (hope for) continued sales growth from the field. Sales people will rarely acknowledge excellent performance in the marketplace while trying to defend their failure to meet their objective. Obviously it becomes a dance. Somewhere between these valid considerations lies a reasonable and attainable objective.

2. Review your objective: All too often for sales management the process stops after step one. A monthly and quarterly review is essential to maintain performance.

Forecasts are similar to the grades we received in high school. We cannot argue that a D is acceptable if everyone else in the class is getting an A. Neither can you suggest that an A is expected if every one else is getting a D. If the majority of your regions are exceeding their objectives, those who have failed to do so will need to re-evaluate their own performance. The standards of a quality forecast are always defined by one’s peers. If the majority of your regions have failed to meet their objectives, there is certainly no value in terminating the entire sales force. In this instance, the original system of forecasting is flawed. It is now time to evaluate all aspects of your own presentation.

3. Recognize your objectives: With each step after number one, management seems to take less involvement in fulfilling these basic objectives. Recognition is a very powerful and rewarding tool for all parties. Studies have shown that, as a source of fulfillment and satisfaction, personal recognition often equals monetary compensation!

Personal recognition assumes a very low profile. No one will negotiate for personal recognition in their time of review. Personal recognition is the silent victory we all feel when we have been singled out. Having been recognized, we know, and everyone else knows, just how good we are. There may not be any greater personal victory in life.

I have always believed in monthly recognition for the top achievers in my company. Quarterly or semi-annual awards are as much fun to give as they are to receive. A final award of Sales Associate of the Year always enjoys great anticipation as the highest recognition for a job well done. As managers, never allow this opportunity to slip through your fingers!

Forecasts will also provide you with a foundation in the event that a change of course is required. There is no benefit in retaining individuals who have consistently exhibited a lack of performance. There comes a time when it is a disservice to all parties to continue. With months of review at your fingertips, comparative analysis, and conversations that have taken place, there can be no misunderstandings. As a manager, you have a responsibility to yourself, and to the entire organization, to consider a change.

Forecasting can and should be motivating, challenging and, most of all, rewarding. Individuals who only live by the numbers will die by the numbers. Individuals who take inspiration from this process will treat it like a challenge, and be rewarded greatly for their efforts. We can accept the process and flourish, or deny the process and place our fate in someone else’s hands.

I am reminded of a favorite quote from Dave Leland, a Portland businessman, which seems to have obvious applications in meeting the realities we must all face. “It’s really easy to spend a lot of time solving the wrong problem.”

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XXXIV

Dear Manager,

I will be the first to admit that I thrive in a face-value environment. Too often, relationships and business practices can fall deep into the caverns of dealing with another’s hidden agenda. We are taught to keep our guard up for those who live in a world of servicing only their own needs. We can begin to question the motives of others, with or without justification. There is a distinct contrast between having a sense of awareness, and buying into the paranoia of “every man for himself.” I am absolutely convinced that a positive, and ever-so-slightly naive, approach to business can best service the needs of an organization.

We have all been taken aside and warned about an individual or organization prior to developing a new working relationship. Common sense suggests we look beyond the surface. Good business demands a dose of benefit of the doubt, or many solid opportunities will be lost due to the unhappy experiences of others. I believe that, in the vast majority of business situations, those with whom we come into contact are fundamentally good. We owe it to ourselves, and those individuals, to anticipate an ability to measure up.

At least once in our lives, each of us has failed to meet the mark. Thankfully, maturity and experience plays its hand. We learn from our mistakes and are better off for the process. Business provides us with many opportunities, and we hope to be given another chance. Under new circumstances, there is every reason to believe that we will rise to the occasion.

Over the years, I have interviewed individuals who are obviously reeling from difficulties with a former employer. There have been indications that this individual is convinced that these unpleasant experiences are common business practices. I have also been faced with individuals who suggest, in their own subtle but direct way, “You better not mess with me!” As managers, we also deserve the benefit of the doubt.

In both instances I have quickly “taken a pass,” as the risk is simply too great. This jaded attitude will never serve the needs of the individual nor the organization they have asked to serve. Are there bad people out there? Yes. Are they in the minority? Yes, without question. As managers, we obviously need to focus on the good, and deal with the “less than good” as it arises.

By approaching business with a degree of trust, we develop a platform of understanding that only a very few, and the very foolish, would be willing to risk or compromise. I continue to believe that individuals will learn from, and respond to, reasonable expectations. Individuals want to offer and receive respect. Explain the standards of your company and give everyone the opportunity to succeed. You will be disappointed on occasion but, ultimately, you will have won for having retained your objectivity.

Having addressed the majority, I believe it is now time to address the wayward souls with whom we may also come into contact. These are the individuals who have granted themselves the God-given right to accept little responsibility for their actions. These people are obviously dangerous to themselves, and to those of us in business. After three years of publishing this letter, it is time to deal with this type of business personality as well.

In no uncertain terms, there are individuals who will make every effort to bring you down. Often, these individuals will take a very visible role and show a great deal of initiative. If we fail to understand, or underestimate their potential, they have the ability to (with great delight) bring harm to those around them. As I shared with a friend and business associate recently, “Unfortunately, there are bad people out there. It’s easy to be caught flat-footed.”

This friend had recently gone through some very difficult times with an employee. The employee had made a grievous error in judgment and, without a second thought, my friend immediately terminated him. The former employee could, in fact, be imprisoned for his offense. My friend owns a high-profile company yet, because of his swift termination of the employee, he was convinced that the issue had passed. While I hope this to be true, he would be foolish, and very vulnerable, if he were not to not prepare for all scenarios … not to anticipate them, but to prepare for them.

Sadly, there is a segment of the population who is convinced someone else owes them a living. Their actions are justified by their desire to even the score from previous business dealings. These individuals are vocal. They will share with any audience that, through no fault of their own, they have been wronged. This is a personality type that we must all be aware of.

Rather than taking full responsibility for our own successes and failures, as all of us in business must do, these individuals are relentless in the use of their index finger, pointing at anyone but themselves. We don’t generally think in these terms, nor do the individuals we associate with, so they catch us off guard. When they appear, it can be as if they multiply like rodents. Don’t over estimate their numbers … it only takes one. Their appetite can be huge, and their perception of importance upon conquest is a source of personal fulfillment.

These individuals live in the world of harassment and litigation. They will seek out others to assist in fabricating their position, then align themselves with attorneys of a similar breed. Armed with the pointer’s information, they will practice their profession, often at your expense. Those who practice are always looking for pointers!

As managers and business owners, we are foolish not to give consideration to this phenomenon. We must first define our exposure, then begin to understand it more fully. This includes becoming familiar with current laws that may rightfully, or wrongfully, affect us. Integrity and a sense of fairness will not always protect you. As my wife often says, “If you cross the street with the walk signal and you’re hit by a car, you may be in the right, but you’re still dead.”

Retain a qualified lawyer (one of the many who do not simply practice) for an hour to review your business and define the potential sink holes. Speak with your accountant regarding any changes in the tax structure that may impact your business. Watch the newspapers and business journals for changes that may affect you. Stay informed.

Secondly, keep very good records. There can be no stronger evidence than information that speaks from the past. This information inherently establishes consistency, mutual acceptance and intent. Dated correspondence and notes from conversations will provide great assistance. These are the things the pointers will have conveniently forgotten, or neglected to convey to those who practice. It is very difficult to contradict the evidence of fact.

You will always have the opportunity to rely on your allies – those who might have common knowledge, who will be outraged by the false intentions of others. This is the unknown factor for pointers, and is often underestimated, as it is the one aspect they cannot manipulate.

Of greatest importance, do not allow yourself to focus on, or be absorbed by, these individuals. By doing so, you have only validated and enhanced their perceived position of strength.

It is sad to say, but I have seen far too many jaded managers. From a personal perspective, I would accept an ever-so-slight touch of naiveté over being jaded, each and every time. In the end, the answer can be simple: trust, awareness and a dose of preparation. And… always look both ways before you cross the street.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XXXIII

Dear Managers,

Taken at face value, this is an example of management exercising its fundamental responsibility to maintain fiscal profitability for the organization. I sincerely support the profitability of the manufacturers associated with our organization with almost the same tireless enthusiasm that I support the need for the profitability of my organization and those associated with it. All parties must first sustain profitability for a relationship to exist. Prior to an evaluation of each of these conclusions, let’s take a look at the premise for the decisions.

The new year is a critical wake-up call for all companies relating to that elusive profitability issue and controlling or reducing ones fixed costs. Profit and loss sheets are complete for the previous year and, for most of us, hidden but very real expenses have eroded our anticipated profits. How do we possibly get these costs under control and, more importantly, how do we do so with the least amount of interruption and impact on future growth? Obviously, reducing overhead at the expense of growth should be our absolute last course of action. In this scenario we have simply exchanged one critical concern for another.

There are many fixed costs that have no relationship whatsoever to future growth potential. The process begins by addressing these areas. The erosion of profits effects all of us on a relative basis. Following are a few examples that should be addressed by all individuals and organizations in a position to impact and enhance the bottom line.

PHASE ONE: OFFICE EXPENDITURES

Historically, this is the area with the greatest opportunity for cost reductions. Often, a full 20% can be shaved off current budgets with a relentless review of all fixed costs. Savings in these areas have little appreciable relationship to the future growth of the organization.

• POSTAGE: When was the last time you reviewed this money pit? Batch mailings to customers and sales agencies, third class mail for catalogs, and re-negotiating air express charges are all areas worthy of your review. I have worked with a manufacturer for a number of years who continues to mail a single page invoice in a 9 x 12 envelope; we receive these envelopes 3 or 4 times a week!

• OFFICE EQUIPMENT: With technology moving forward on what seems like a daily basis, do we truly need the very latest on the market? Will last year’s model adequately meet our needs? Developing strong relationships with individuals who are familiar with secondary markets creates an opportunity to save from 30% to 50%. Computer hardware, telephone systems and copy machines are just a few areas where last year’s introduction will adequately service our needs. We all enjoy the smell of a new car, but how does that smell translate itself into increased sales productivity?

• FINANCING COSTS: Most organizations work with a line of credit through their bank to even out the ebb and flow of cash reserves. Do you anticipate your needs and activate funds prior to actually using them? I recently changed my credit line to only activate upon checking account overdraft. With careful cash flow management, my line of credit use was reduced by 50%. Have you reduced or eliminated excessive credit card interest charges by using a line of credit on occasion? This can add up to a 50% savings on interest rates alone.

• FACILITY COSTS: With interest rates relatively low, is there an opportunity to purchase a facility that can meet your current and foreseeable needs? I recently purchased our office building, which will significantly reduce operating expenses in its third year and beyond. If leasing is your only realistic option, have you taken a proactive role in securing favorable rates for your current and future needs? Simply knowing the current market and the options available will assist in your negotiations.

• PROMOTIONAL EXPENSES: The desire to continually expand our trade show presentations has dramatically increased costs for many of us. As exhibitors, we are very important to these show management companies. I have found them to be willing to assist in managing costs (such as storage fees, lighting and drayage) by negotiating long-term commitments; very few people even ask. By the way, are you charging these fees on a credit card to earn frequent flyer mileage for future business travel awards? Strategic credit card purchasing can make a significant impact on your travel budgets.

By nature, office expenditures have a tendency to compound themselves year after year. The solutions come from asking the question, “Do the systems that were established to meet the needs of a previous time continue to create an advantage in today’s market?” It may be time for some cost-effectiveness house cleaning.

PHASE TWO

This area of review may not return the 20% seen in Phase One, yet even a 10% cost savings in areas with much larger budgets can be very significant to any organization. This review (and the ultimate reductions) will begin to unlock the doors of ones organization. There is the potential risk for an emotional price as compared to Phase One. Approached correctly, the risk is limited and will have no significant impact on the future growth potential for the organization.

• MANUFACTURING COSTS: I have toured many facilities and was amazed to view the varied levels of productivity found acceptable from one facility to another. I saw warehouses full of obsolete product, production lines slowed by little or no departmental management and pride, and little incentive to correct the problems. Certainly these are only surface judgments, yet has corporate management abandoned incentivising the productivity of those at the bottom of the scale for a job done accurately and well? If so, is it time to revisit out-sourcing this critical area of business?

• STAFFING COSTS: As an alternative to increasing staff salaries, have you considered increasing vacation time in alternating years of their review? I have often found this to be very well received. In many cases, and with proper preparation, other staff members can assist with the temporary additional load.

• MANAGEMENT AND MARKETING COSTS: With just a bit more planning, can that four-day trip be condensed into three days? Can the three-day trip be condensed into two with an earlier flight? Have we adequately negotiated the most favorable advertising rates, based on the size and duration of our advertising? Simply by creating an “in-house” advertising agency, you can save 20% off the top!
Have we finely tuned our budgets for the cost of printing sales materials, catalogs and order forms, by getting three to four bids? Printing is a very competitive field, and a great place to leave money on the table.

Have you considered an in-house staff member to manage and monitor these and the many other costs in doing business? You may find their position will pay for itself, again and again and again.

PHASE THREE
(You had to know there was a sacred cow somewhere in our midst)

In my twenty-five years in business I have worked with hundreds of manufacturers. As my experience relates to competent managers and sales professionals, I have never seen one that was being over compensated. I have certainly seen incompetence in sales and management being over paid but, evidently, ownership found this scenario to be acceptable.

The implementation of Phases One and Two have in no way impacted the heart of your organization. This heart is shared between your management and sales staff. I can’t help but ask, “Has ownership thoroughly exhausted all avenues of cost management prior to carving out the heart and source of growth for their organization?”

Without question, there is a time and place to implement Phase Three cost reductions. There is a very real moment when costs exceed revenues and profitability no longer exists. There can be no other alternatives; all Phase One and Two cost analyses have been addressed. Survival becomes ones singular concern and, ultimately, a heart transplant is the only course of action. On this occasion, allow me to be first donor in line to assist in protecting the long-term interests of the ailing organization.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2009. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM