Interpersonal Business

Vol. LXVIII

Dear Manager,

Perhaps only a small number don’t fully understand this basic fundamental. Yet the takers of the world, looking for “somethin’ for nothin,’” seem to have affected many of our perspectives. I now find myself reluctant to ever ask for favors for fear that I will be perceived as a mooch. Once again, too bad.

Whenever possible in new relationships, I make the effort to discuss the individual needs of others prior to my own. Sharing an appreciation and sensitivity for another’s time and interests goes along way in establishing a beneficial relationship for all parties. I believe this can’t simply be implied; it must be verbally addressed specifically at this time in American Business.

CAN’T GO IT ALONE!

If we think of ourselves as an island, this is exactly what we will become. While I understand the value of networking in many industries, I wouldn’t say that it’s been one of my priorities in the past. Those who network certainly scratch each other’s backs, but it seems to be a scratch here and scratch there. It would be difficult for me to keep score, much less invest the time to be effective at it. I’m not discouraging this practice, as it has been very effective for many. It’s just not my gig.

I’ve always relied much more on my ability to evaluate and participate with a much smaller group of individuals. This is a group I protect, appreciate, and will not compromise. In this highly professional environment there are no sellers, there are no buyers, and there is no need to keep score. It is simply a relationship whose value is apparent to all parties, and whose members will come to the rescue at a moments notice, and without a second thought.

We all share in these types of personal and professional relationships. As we prepare our organizations for a new world order in business, these types of relationships have heightened in their value. To insure a healthy organization, these relationships will become our cornerstone. Yes, this is the foundation that will sustain us in the years to come.

REINVENTING THE WHEEL

I have a fairly simplistic vision of American Business: steaming locomotives on parallel tracks, all heading in the same direction, each solving their own and often identical issues. Each is paying for identical and redundant services and overhead, each financing the coal to support their ability to be The Engineer.

Certainly there can be value in an independent business structure to innovate and lay a path for others to follow. But how many resources could be conserved if at least a “like coalition” hopped on a single locomotive and created an efficient “Super Train.” I warned you that this was a fairly simplistic analogy!

What would the cost savings be? What could your resources be devoted to if they weren’t redundantly directed at reinventing the wheel? Just how much more powerful and profitable could you be if you began to “train pool?” Be it stubbornness or pure ego, I am convinced there is not near enough collaboration from the very top echelons of business to the very bottom of the food chain. To survive the new economy, much more will be required in this area of collaboration.

CREATING STRATEGIC ALLIANCES

More will be required, because business is changing so rapidly. The sheer costs to modernize, computerize, economize, and mobilize will tap many of our resources. Look at the bath the dot.com industry has endured in the 90’s. Talk about parallel tracks and redundant resource investment. Is that a train whistle I hear, or the sound of a vacuum draining resources and venture capital?

If we are going to survive and retain our leadership, we must do so in the form of strategic alliances. Obviously, these must be acquired with great care, mutual understanding and forethought. We certainly wouldn’t want to endure a head on collision! To proceed, some questions come to mind that must be answered not only with great care, but also with great candor.

 What are your greatest concerns for your company in the near and long term?

 What do you need to accomplish to address these concerns?

 What similarities and redundancies do you share with related companies? Are there needs similar to your own?

 What do you seriously need to accomplish, but are unable to dedicate the resources to?

 What position of strength do you admire in other companies or industries?

 What strengths do you have to offer in a collaborative and strategic alliance?

 What are your weaknesses that could be enhanced through this effort?

The final question is by far the most important. What individuals known or unknown, what companies known or unknown, what industries known or unknown would gain benefit or might need to collaborate in this strategic alliance?

What areas of business might benefit from this collaboration? The list seems endless dependant on the common needs of its participants. Areas that initially come to mind include: web site development, computer hardware and software, data entry, payroll, accounting, group purchasing, shared infrastructure, cloud computing, product design and development, advertising, trade shows and product promotions, to name just a few. As compared to purchasing these services independently, economies of scale impact favorably in each of these areas of investment.

Now that you have your game plan and model, it’s time to set out to find the individuals with shared values to form these alliances. You have a lot to offer, the mutual benefit is established; you are there to assist them in exchange for their assistance. You have the concept, the product and the team to sell from a distinct position of strength!

The leaders of American Business take great pride in their ability to out think, out maneuver, and outperform one another. It is time to put egos aside and use the collective resources that only an alliance and collaborative effort can provide. We all have powerful strengths and weaknesses. The power of acting as one is formidable.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. 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. LXVII

Dear Manager,

I continue to see evidence of less than stellar performance. With all of the discussions regarding its importance, and the clear and obvious need, why are we still having this conversation? Could it be a conspiracy? While kidding, there are times when even this doesn’t seem too far-fetched!

In my review of many institutions and corporations, I have come to the conclusion that many are in total darkness with regards to their ultimate customer. While they may indeed “talk the talk” with their management and shareholders, in reality they simply don’t want to allocate the resources to provide effective customer service. In many instances they are not only getting away with it, they are flourishing in this environment.

This is where it begins to get scary. These companies and industries, directly or indirectly, have come to the conclusion by their actions (or lack of actions) that they simply no longer have to care about true customer service! You must understand that I’m becoming a generalist in this view, but it’s too often true. How is this possible? Let’s look at examples where this may be the case, then examine the corresponding impact on our priorities and perspectives on this topic.

I believe it all begins with a mentality established years ago by our utility companies. While their monopoly is now in transition, over a period of years their approach to customers was to provide service “on their terms.” Effectively, they owned us as a customer; the rules of supply and demand provided very few options for the consumer.

Our only position of strength was with the regulatory commissions. And how many of us have contacted this “watch dog” recently, let alone in our lifetime? The only customers that the utilities had to please at a very personal level were these regulators. Have you ever tried to work out what should be a simple problem with a utility company? We have evolved from being a customer to simply being a user.

Users and Simply Being Used

As we look beyond utilities, let’s focus a bit closer to home by looking at companies and institutions that make significant impact in our lives, yet have no monopolistic grip on their users. This type of company, including banks, mortgage companies and insurance companies, relies on the initial contact and sale to develop long-standing and “convenient” relationships.

Certainly there’s very heavy competition in each of these areas. Yet for most of us, it would require one of these institutions to hit us over the head with a ball peen hammer to bother to make a change. We are simply too busy to worry about these seemingly mundane aspects of our daily lives. Sign me up and let me forget about it. This is exactly what these types of companies are banking on … mortgaged against and insured upon!

Once you’ve signed up, have you noticed how difficult it is to get their attention? Their attitude can be one of superiority, with very clear rules, policies and hoops to jump through. Have you noticed how few bankers actually reside in the local branch of the larger banking institutions? Don’t dare ask for service or, God forbid, a personal discussion with the individual approving the loan. We have seen steady increase in the number of independent community banks in our region. Their success and growth in the market place has been significant because they provide service and personal contact.

We have all tried to contact a major bank or our mortgage and insurance companies by phone. With fifty layers of options to choose from, the hope is that you will figure out your own problem long before you have figured out their phone system. It’s very simple: if the process is difficult enough for our customers, they will simply quit calling to pester us.

These industries and others rely heavily on the initial sale, with little or no responsibility after the initial conquest. They rely on actuaries that determine they will lose only a minor percentage of their customers regardless of their customer service efforts. You and I become no more than an annual annuity for these institutions.

The Difference Between “The Need” and “The Nod”

I feel these major institutions have skewed our perceptions on common sense and simple courtesy with regards to ones sense of priority to the customer. Once again, they simply don’t have to in most cases. As long as we get an occasional “nod” we will accept their terms of sale. This personal convenience quotient holds significant power in our behavior.

The problems begin when this mentality and acceptance begins to seep into more conventional business and personal relationships. In a recent conversation with a doctor, he was discussing how wonderful his profession “used to be.” He can no longer look at his patients as clients. His true customers are the insurance companies, HMO’S and Medicare, as they hold the purse strings to 80% of his income. These institutions effectively control his earnings, and the decisions he must make regarding patient time in the hospital, prescriptions, rehabilitation and convalescence. Second generation suggest these controls affect staffing, time with patients, further education, facilities and state of the art equipment.

I recently heard a radio commercial that caught my interest. An auto body shop was extolling its ability to truly meet their customers’ needs. They suggested that studies have shown four out of five consumers do not recognize whether their auto bodywork has been properly executed. Combine this with the fact that once again 80% of the repairs are paid by insurance companies. Who is the customer? Will these repairs return your vehicle to its original condition, or simply repair it to the standards established by the insurance companies? I’m afraid to even touch the analogy regarding auto repair and human “bodywork”…

In the consumer products industry, this customer service mind set simply won’t due. With most of our products, our customers make a conscious decision, whether or not we have cut the mustard. Instead of a placating NOD, we must earn our stripes, because we NEED our customers.

So why do we continue the need for consistent conversations with our staff regarding proactive customer service? Because we are fighting a culture that is confronted daily with something much, much less. I believe this “user mentality” continues to compete and conflict with our own efforts to establish a very high standard of customer service.

There can never be enough discussions within our companies about very personal customer service. While this relationship has become blurred by other industries, it is our paramount job to bring crystal clarity with regards to its priority, daily. Our lifeline is in the hands of our customers.

I recently saw a television ad for Ameritrade with the byline: “Customer service doesn’t begin until someone answers the phone.”

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. 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. LXVI

Dear Manager,

With this issue, I would like to share some fundamentals that might assist in your own cash collection process. It’s such a festive topic; I’m surprised it has taken me nearly six year to address it!

Having worked with dozens of companies over the years, I have seen numerous styles and approaches to the collections process. Some were highly successful, some were heavy handed and adversarial, still others reflected total mismanagement and a skewed sense of priority to collections. Ones approach is critical to overall success and the continued growth and prosperity of the company.

In any business relationship, there is an assumed mutual commitment for performance. This assumption generally proceeds with little direct conversation or specific pledge. It is simply assumed that if I deliver, you will pay. All parties proceed on good faith, and with mutual benefit of the doubt.

Problems only arise when this assumption and commitment to fulfill ones obligation becomes compromised. In most cases this is a simple oversight or short-term aberration. We have all found ourselves in this situation. It is critical for credit managers to remind themselves of this daily. Having developed this foundation, I also believe that this benefit of the doubt has a brief window of opportunity! Accepting debt, commitment, and accountability, are all very personal issues.

We also have the individuals and companies that thrive in an arena of deceit, misinformation and failed commitments. This is where we will find a condescending approach by individuals looking to create a problem where none exists! These are the individuals to whom this issue is unfortunately dedicated.

In some instances, the parties might have the very best intentions, albeit very poorly conceived. In the absence of proper financial resources they have chosen to roll the dice. They are betting on the come; betting that they can find success prior to their creditors landing on their doorstep. Yes, they are using our valuable resources to finance their dreams! I believe this approach to business to be deceitful, self-serving and dishonest.

A COMMON THEIF

Had we, as managers, wanted to be in the financial industry we would have become bankers! What is the difference between purchasing with no ability to pay, and stealing? Very little. Individuals such as these operate under the guise of businesspeople, when in truth they are common thieves.

There are numerous effective and creative approaches to this type of individual. With practice, the process of dealing with them can become even entertaining in its ability to hold them accountable, for perhaps the first time.

THAT’S ENTERTAINMENT!

I always begin with a lot of questions in the hopes they will begin to dig themselves into the proverbial hole. Questions like: “Have we not fulfilled our original commitment?” or “Are you dissatisfied with the service we have provided?” or, “ I have had to assume that this is a situation of our making, as I know your intention was to fulfill your commitment to us!” It is critical that one approaches these probing questions with no preconceptions or edge in ones voice. You are asking for genuine answers to very fair questions!

This type of dialogue will, in the very least, open some doors and force their hand. If there are indeed financial problems, this is your opportunity to bring them to light. I would also ask, “Have you tried to contact us regarding your situation?

These individuals rely on “the con.” It is our job to gently but effectively use their words against them. Explain that you would like to be able to give them some additional time, but that your hands are tied. In fact, your own position is now being evaluated by their performance! Suggest that you truly need their help to get yourself “out of a jam.”

When asking for their payment plan, be ultra specific in your conversation and your notes. If payment is expected in ten days, does this mean it will be mailed in ten days or in your hands? Are they absolutely sure that this is “NOW” a commitment that they can fulfill? Do they understand that if they fail to do so, your mutual relationship will be in jeopardy?

One key to this conversation is to maintain an earnest and sincere approach to finding its resolution. If your approach is firm but fair, it cannot be judged critically. Do not give them any personal reason to justify not fulfilling this obligation. This individual will create any possible rationalization in order to defend their “dead-beat mentality.” Don’t do them any favors!

There are also individuals who in fact have the resources but have made the profound decision to bestow this financial burden on you. How gracious of them! There are two significant triggers that will motivate a response. The first relates to the fact that there are priority vendors. If a key vendor goes unpaid, they may suffer significant financial impact. This may impact their personal job security. Be sure to analyze your own position of strength prior to all conversation. Determine their prior order depth and purchasing cycles in addition to their prior payment history.

The second factor cannot be denied. Individuals oil the squeaky wheel. Become a squeaky wheel. These individuals live in the tomorrow, never the current moment, and are banking on your lack of follow through. Establish a very clear understanding that you are not simply going to go away. On more than one occasion an individual has suggested they would immediately write and mail me a check. Whenever logistically possible, respond with, “terrific, I (or one of my associates) will be over in an hour to pick it up!” Create a significant sense of urgency to fulfill this obligation, today!

Over the years I was confronted on occasion with a manufacturer we represented who made the choice not to pay the commissions due our organization and sales associates. I would proceed to explain that commissions are not just simply another accounts payable in their system. Commissions are payroll. It only seemed fair to ask, “How would you feel if you didn’t get your paycheck on time?”

These remunerations represented the livelihood of my team. Yes, it represents bread, butter, mortgages and braces. By the time a commission is due, we have completed our full investment in that sale. In many cases, the customer had already paid the manufacturer! Anything less than a full, complete and immediate payment was simply intolerable.

For me, the most effective approach and choice of words was: “Let’s not be confused. We have fulfilled our obligation, and you have my money in your pocket!”

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. 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. LXV

Dear Manager,

When we have it, life is good, and obstacles are perceived as mere bumps in the road. There is no greater confidence than when you have momentum on your side!

EVERYONE WANTS TO BE WITH A WINNER!

This sentence suggests just how important momentum is. When “Big Mo” is on your side, at least for a time, you become a good fortune magnet. Some managers don’t take Mo very seriously, or have come to the conclusion that only fate will bring good fortune. Yes, even poor managers find positive momentum on occasion. Better managers create their own fate!

Great managers are in a constant state of striving to either maintain or recapture this often-elusive phenomenon. While we can always set the stage for it, we can rarely fully insure it. All the planning and preparation in the world cannot guarantee you momentum. Sometimes the planets must be properly aligned in your favor as well! This is not to suggest, however, that we should cast our fate to the wind, or enroll in a class on celestial configuration.

Now that we have better defined its attributes, how do we create this wave (I know, only the moon can affect the tides!), and ride it as long as possible? First of all, we must accept that we can only control the mental aspects of momentum. The mental performance of any company most effectively starts at the top.

WHEN YOU’RE HOT…

O.K., congratulations, Big Mo has tagged you and you’re it. Are you enthusiastically translating this heightened positive company image to your clients and staff? Momentum and confidence are very contagious. Now is the time to strike up the band, opportunistically taking full advantage of “the good times.” Build the biggest bandwagon you can find; you will be amazed at how fast everyone jumps on board!

When Mo is in your pocket, the question should be, just how great is our potential, how deep is the well, and how long is the rainbow? It is common for individuals to underestimate their full advantage in these “Mo”-mentous times. Remind yourself that there is no form of measurement for maximum potential; it is now time to pull out all the stops!

We must also remember that Mo can be fickle by nature. We should learn to not only understand it but to learn to court its many virtues. As suggested, this is your time to shine. With so many admiring your bandwagon, it’s time to recruit only the best to hop on board. Are there clients with major potential who would benefit from your team’s visible momentum? Are there individuals with significant skills whom you can entice to join you? Are there competitors that are particularly vulnerable at this time? Have you restructured your goals and objectives to reflect your enhanced and evolving potential? Often, our original objectives were developed and established in less momentous times.

The time to seize the prize is fleeting. This sense of urgency should only be equaled to that in the down side of your cycle! Yes, as with all aspects of life, your momentum will cycle from its frenzied highs. Take heart, I have seen cycles sustain their momentum for years, if not decades. Strong managers wake each day in a state of paranoia! At all costs, prolong it!

This can be accomplished with a complete analysis and understanding of what brought Mo to your doorstep. Was it a decision you implemented as a manager that worked in your favor? Is there an individual or group that inspired this trend? Are there competitors or market conditions that left the door open to you? Once you have defined its qualities, zero in on sustaining it!

AND WHEN YOU’RE NOT…

Oh yes, momentum can be very fleeting. Out of the blue, in the wink of an eye, high tide becomes low tide, just ask Alaska Airlines. For twenty-five years, they enjoyed a reputation as one of the most highly regarded airlines in the industry with a safety and satisfaction record admired and acknowledged by all. A number of years ago with the tragedy of Flight 261 from Puerto Vallarta, and in the months to follow, all of this changed. I was on an Alaska flight to Puerto Vallarta a week after Flight 261 was lost. The silence and personal reflection on this flight was deafening. No one wanted any part of this bandwagon!

In the weeks to follow, report after report of potential problems surfaced regarding possible mismanagement at the airlines. How much heart breaking news and publicity can one company sustain? Perhaps it is warranted, over a period of months and years they once again generally well thought of.

The point is in the fact that when things are on the skids, when momentum is against you, you are the most vulnerable. In fact, Big Mo has jumped ship leaving the pieces to Bad Mo. Yes, momentum can reverse its thrust and work against you! This is when you earn your stripes as a manager.

As a team you must first accept your current set of circumstances. Denial will only delay positive steps that need to be immediately implemented. Understand that the human factor for your clients and staff creates its own set of obstacles. Effectively, do your very best to reduce the emotional trauma of your current circumstances.

Communication and a measured response is the foundation for slowing the back-slide. Alaska, in fact, was noted for their timely, sincere and proactive form of communication. You can only earn a sense of benefit of the doubt! Their biggest problem was the weeks and weeks with little good news. As managers, we must shine the most positive light on any set of circumstances. If we don’t voice a positive and confident perspective, who will? This does not suggest we gloss over or be less than forthright with the reality at hand. Be empathetic to those who have also assumed their own losses in this process.

Proactively address all concerns or rumors that may present themselves. Understand that bad news travels fast, and there are those who will delight in your misfortunes. This is not a time for the weak of heart, or to be thin skinned.

Keep in mind that time heals most wounds. In fact, the grace of time and the natural cycles in life are on your side and may be your greatest ally.

Create a focus, define your target, and stay on it. When Big Mo was on your side, decisions may have seemed very simple; now they are all tough. Now everyone has an opinion and can second-guess all prior decisions. Listen to the same voice that confidently directed your decision making process in more successful times!

Big and Bad Mo will touch all of us in the span of our career. Our challenge is in protecting the good times, and minimizing their alternative.

Remember, as managers we are never quite as good as we are perceived on our best days, and we are never quite as bad as we are perceived on our worst days.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. 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