Janssen Consulting, LLC

Books on the Brain (Literally)

Wed, 03 Mar 2010 16:09:32 -0800

I recently read two books about the brain (yes I'll admit that I read books like these on the beach in Maui). I found them both fascinating. I enjoyed them not only for insights into my own thoughts and behaviors, but for the insights and perspective they provide for working with clients, colleagues as well as family and friends. If you have an interest in some of the contemporary understanding of the most important organ in your body, you might want to check these out.

Magnificent Mind at Any Age by Daniel G. Amen, M.D.
Daniel G. Amen, MD has been around for a while. In fact I had the opportunity to visit his clinic in California back in 2002 (no, it wasn't for me - though I would love to have my brain scanned). At the time, his work was still considered fringe, but he is now a headliner on the Public Television and speaking circuit. In this book, Dr. Amen talks about the brain as what it is - a physical organ. I particularly appreciate his focus on natural ways to improve the health of the brain, while not discounting medication. I think he strikes a good balance.

Dr. Amen writes about how different parts of the brain are involved in different aspects of thought, feelings and behavior. Successful and unsuccessful behaviors along with specific diagnoses such as ADHD, Depression and OCD are categorized by the health or deficiencies in different areas of the brain. The prescriptions for improved health through natural or pharmaceutical means are different depending on which part of the brain is the focus. This makes sense and reinforces the fact that one size does not fit all.

His Brain, Her Brain by Walt Larimore, M.D. and Barb Larimore
I had the opportunity to see Dr. Larimore speak a few months ago at a nearby church. He was very engaging and entertaining while being educational. He and his wife present the material the same way in their book. "His Brain, Her Brain" presents research into some of the physiological differences between male and female brains as the result of the impact of different hormonal activity from before birth. While the book is primarily oriented toward married couples, anything that increases our ability to understand another person has value in all aspects of life. There are definitely many things in this book that I wish I had learned at a much earlier age. I have not evaluated all of the studies and research referenced in the book but I found the results, as presented, to be consistent with my life experience.

What do these books have to do with business? Well, all business is really personal. It all comes down to people. Systems, processes and technology are meaningless outside of the context of the people who have some stake in them and the outcomes they produce.

Break The Habit of Intervening. Get More Time and Grow Your Business

Mon, 01 Mar 2010 12:17:06 -0800

One of the hardest habits to break is intervening to solve problems that your employees should handle. For instance, your customer calls you directly about a problem or concern related to a project. Of course it's faster for you to just handle it then and there. You love taking care of your customer and It might be even be a rewarding distraction to deal quickly with an issue where you have great expertise.

Unfortunately, each time you do this there is a long-term impact that reduces your capacity for future growth/profit/time. Think about it...

Your Customers:

Become trained to call you if they don't get the answer they like from your representatives
Lose respect for your Account Manager since they got a different answer or response from the boss
Learn how to get the answer they want by exploiting (consciously or subconsciously) multiple channels of communication. This is a great negotiation tactic for them
Get used to ignoring any organizational structure you might put into place

Your Customer Account Managers (Project Mgr, Relationship Mgr or whatever term you use):

Become discouraged and lose confidence in their ability to handle client issues
Stop taking 'ownership' of the relationship since they come to assume that it really belongs to you
Walk around afraid of getting into trouble if they make a decision that the client (or you) may not agree with
Lose the opportunity to gain the experience and formation around dealing with difficult customer relationship issues

If you are serious about getting more time and being able to grow your business you need to break the habit:

Start by making sure that your customers understand your organization and the processes you are putting into place
Practice saying "Let me talk with {Enter Employee Name Here} and we'll call right you back." Put a sign on the wall or on your phone if you need to be reminded
Listen to your Account Manager. Let them explain their perspective and thought processes before you jump to the solution. There's always more to the story
Use the opportunity to 'form' your staff. Have them make the follow up phone call - with you present if it is going to be a really tough conversation
Make sure you show support of your staff. If you don't show confidence in them, how do you expect your customers to?
Give them the freedom, resources and authority (with appropriate accountability) to take care of your customers. They will make mistakes - just like you did. And if they are keepers, you will reap the benefits in the long run.
Also, pay attention to 'core strength' issues with systems, procedures, knowledge sharing, etc., that may be contributing to the problems being experienced by your customer

It's not easy to let go and old habits are hard to break - but the effort usually pays big dividends.

Give the Gift of Experience
Maximize Your Return on Investment from Mistakes

Transitions... Opportunity or Cost?

Mon, 22 Feb 2010 13:43:47 -0800

I have been enjoying the Olympics - especially the downhill skiing like Super-G. The amazing transitions that racers make as they fly down the course clearly take tremendous energy and consume critical fractions of time. The skiers who minimize unnecessary transitions and execute the necessary ones most effectively are the ones that win. On the other hand, it doesn't take much of an error to cost the race.

All transitions require time and energy; from getting up in the morning to being interrupted or distracted while doing a project. Think of how many transitions occur in the course of your daily business operations. What might you gain if unnecessary ones were eliminated or reduced and necessary ones were significantly improved? For instance...

Are you or your experienced employees having to unexpectedly 'transition' because you get interrupted with questions that have been asked before and will be asked again? Save some of that time and energy by:

Documenting your accumulated knowledge and making it widely available
Developing simple process outlines and flow charts
Creating checklists for common activities - traditional 'task completion checklists' as well as 'thinking checklists' that help people consider important aspects of what they are doing
Maintaining a list of Frequently Asked Questions (FAQs) that provide guidance and direction for common issues

Do you or your staff 'transition' information manually from your main system to some other software tool like Excel so you can analyze it better? Consider these options:

Talk with your software vendor. Chances are good that there is more capability in your existing system than you are currently using
Use connectivity tools already built in to Excel, Word (and many other applications) to 'link' directly to the information in your main system (technical term: ODBC - Open Data Base Connectivity)
If your existing system doesn't have any custom report writing capability, there are third-party tools that will help you get what you want directly from your database (Crystal Reports is a common one)

There are many other examples where reducing or improving transitions will pay off in terms of more time and money (not to mention peace of mind). Things like...

The flow of any information, in any form, as it transitions from one group or department to another
The transitioning of customers from the sales process to production, support, accounting, etc.
Getting an employee transitioned from being brand new to being knowledgeable and capable

This isn't rocket science (or Super-G). It is a matter of identifying the opportunities, prioritizing initiatives and then just getting it done.

The Benefits of Operational Alignment
The Problem with Friction... (Operationally Speaking)

Maui Musings

Mon, 15 Feb 2010 12:10:55 -0800

I recently returned from a wonderful vacation with my wife in Kaanapali on Maui. I love Maui. It is an extra special treat during the 'dreary' stretch of Pacific Northwest weather that occurs between January and March...

The beach is such a great place to ponder life. Last year I wrote about surfing. This year my motivation came from the whales...

The whales are incredible off the coast of Maui this time of year. I am always struck by how beautiful they are and how they draw the attention of nearly everyone when they show themselves. When you think about it, all they do is show their fluke, splash their fins and, at times, jump out of the water (which is truly spectacular). They do this day in and day out. Yet in its simplicity and elegance, it draws the attention and excitement of everyone within sight. Not only does everyone watch when the whale actually shows itself, but they (and I) also spend time searching the blue expanse of ocean for signs of their presence.

As I was watching and pondering, I thought about how businesses that consistently do the simple things that their customers want in an elegant manner also draw a crowd. Things like a consistent and positive experience regardless of how they interact (or with whom), proactive communication that is timely and concise and follow-through that actually occurs.

How often do you or I experience dissatisfaction with a company because of 'how things are done' even though the actual product might be great; like tasty food in a beautiful restaurant with slow or discourteous service - or great software that meets your needs, but has slow, inexperienced customer service. So much can be gained when attention is paid to the simple (but not easy) aspects of operating a business. So much can be left on the table when it's not.

Now I just need a revenue model for sitting on the beach and watching the whales...

Aloha

How About a Profitable Business AND a life?

Thu, 21 Jan 2010 13:49:18 -0800

Earlier this week I attended a meeting with a number of colleagues and I was struck by how we consultants say pretty much the same thing when we talk about how we help our clients. The 30 second introductions are full of sound bites like "successful growth," "profitability," "cash flow," "increased value." We all strive to be clear about our "value proposition" and how it relates to dollars.

As I was pondering this, I thought about my clients and what triggers their decision to invest the dollars and effort in my services and the change it represents. With all the talk of growth, value and profit, it's interesting that the motivation often comes down to "I want more time" or "I want a life."

I can relate to this personally. After years of slogging through longer and longer hours at my software company, we started down the path of change. A big part of our motivation was the desire for more time with our families. We invested significant energy and dollars making changes similar to those that I now help my clients through. These changes aren't rocket science, they are often simple; just not easy. As a result, we did get more time with our families. Along the way we also became more profitable and we ended up selling the business for significantly more than an offer we had received just a few years before.

The balance between quality of life and the hard work of running a business is a difficult one to create and maintain. The beauty is that the same things that help owners get a life, also positively impact the financial measures mentioned above. It's the transition between the status-quo and new behavior that is the challenge for us all....

The Importance of Core Strength

Mon, 11 Jan 2010 13:45:14 -0800

Continuing the analogy of the Personal Trainer, let's talk core strength. For me, the most difficult, time consuming and often unpleasant aspect of getting into shape has been developing and maintaining core strength. The core muscles are the ones we can't readily see - yet they are critical to everything we do. They keep us properly balanced, protect the back from being injured and actually make other exercises more efficient.

My natural inclination would be to focus on working the visible muscles. Fortunately, my trainer knows better and makes sure that I do what's necessary to develop and maintain my core muscles. She knows that this is the key to true strength. It works. The chronic back pain that I endured for over 15 years is gone, I have better balance and coordination and I feel great. Of course it is an ongoing challenge to keep my core strong and not slack off.

So, how's the core strength of your business? Are you developing and maintaining the fundamental aspects of your operation that support success and increase value? Things like...

A clear vision, strategy, principles and values that are understood throughout the company
Clear, concise and consistent communication through all channels - from meetings to email
Intentional and structured approach to customer service and relationship management
Effective hiring, training, mentoring and accountability practices
Defined and documented best practices, policies and procedures and accumulated knowledge
Technology that is well implemented and effectively supports your business purpose
Accounting and administration that understands their part in customer service and business development

Here is one thing that I know for sure. With a strong core, there is less pain, everything is more efficient and it really feels good.

The Personal Trainer Effect

Thu, 07 Jan 2010 12:39:01 -0800

It's always interesting at this time of year to see how crowded the gym gets with people acting on their New Year's resolution to lose weight and get into shape. Then in about a month or so it will calm down to around the level it was before the holidays. Some people stay with it, but many struggle for consistency and eventually drop off. I have been one of those people many times over the years... until I hired a personal trainer.

As a result, I have been going to the gym consistently for the past 4+ years. I am sure it is the best investment I have ever made in my health and well-being. While I certainly am not 'chisled' by any stretch of the imagination, I am definitely in the best physical shape of my life (at least since boot camp). I have an outstanding trainer, Karen Lauth at 24 hour fitness in Ballinger. She not only gets me to come to the gym (at ridiculously early morning hours), she gets me to do things I would never choose to do on my own; and for those things that I would do on my own, she gets me to do a lot more of them than I would ever do without her standing there pushing me. The results are real - and are paying off in a variety of ways.

Now...
Do I know how important exercise is on the quality of my life? Yes...
Do I know how to lift weights, use a treadmill, do crunches and push-ups? Yes ...
Do I know how much better I will feel every day if I exercise regularly? Yes ...
Do I know that if I don't exercise regularly I would probably have a shorter life? Yes...

So why don't I (and millions of others like me) do this on our own? That's a question for the psychologists. I just know that with external accountability I get results. We see very visible evidence of this weekly on the popular show "Biggest Loser."

The personal trainer effect certainly doesn't just apply to exercise. When I use this example in talks I give to business owners and CEO's, I always get a lot of knowing smiles and nods. Most business people I know are very smart. They often know what they should be doing to grow their business and prepare for an exit or succession. It's just extremely difficult to make this happen without some external accountability.

Want Results? Get Accountability...

Happy New Year - maybe I'll see you at the gym?

Costly Lessons Re-Learned

Thu, 17 Dec 2009 09:59:43 -0800

An article in today's Wall Street Journal tells us how militants are using $26 off-the-shelf software to counteract our US Predator drones. As I shake my head at what appears to be an incredible lapse of judgement and common sense, I am reminded of a couple of important business lessons that we all need to re-learn from time-to-time...

Simple solutions can have a significant impact
It is important to Consistently Challenge Your Assumptions

In spite of the potential life-and-death consequences of this specific story, we need to take lessons from wherever they occur.

Three years pass in the blink of an eye...

Tue, 22 Sep 2009 22:26:16 -0800

I can hardly believe that it has been three years since I started Janssen Consulting. I consider the "official milestone" to be the kickoff party that we had on September 23, 2006. Having an outdoor party in our backyard in September in Seattle was a risky proposition at best; but then so is starting a business! Unlike this year with its record sunshine, in 2006 the weather was touch and go until that Saturday when the skies cleared and the temperature warmed allowing us to enjoy the patio until the late hours. It was a great party...

While I can't say that the skies have parted for me every day since then, I can say that it has been a great first few years of this adventure. I have had the privileged of serving many wonderful clients, and I have had the pleasure of meeting many talented and generous colleagues. I feel extremely grateful to be associated with so many incredible people.

So on the occasion of my Three Year anniversary, I wanted to take a moment and simply say thank you for all of the support and encouragement I have received. I look forward to the continuing adventure.

10 Reasons Why You Are Underutilizing Technology That You Already Own

Thu, 17 Sep 2009 20:24:48 -0800

You rely on an external technology vendor who has never come to you with suggestions on how to improve quality, increase production or enhance customer service
Your internal technology team has never come to you with suggestions on how to improve quality, increase production or enhance customer service
You ask your tech people for something new and they respond quickly "the system doesn't provide that"
The last time you had any training on the programs that you use was when they were installed
You only use the standard reports that came with the system
You are entering data from reports or screens into spreadsheets
There is only one (or two) people in your company who really know how the program works
You installed the programs yourself and then figured out how to use them on your own
When something doesn't work your people say "there is something wrong with their (the software company's) program"
You haven't installed any available upgrades in years

One Thing Guaranteed to Increase Productivity...

Tue, 15 Sep 2009 17:09:37 -0800

We live and work in a world of ever-increasing distraction... Email, text messaging, instant messaging, Twitter, Facebook - they all call out for our attention. Unmanaged, they represent constant interruptions with obvious impacts on productivity.

Consider that it takes anywhere from a few minutes to over 10 minutes to recover from an interruption (depending on who you ask). And multi-tasking isn't the answer either. John Medina points out in his book Brain Rules that "Multitasking, when it comes to paying attention, is a myth." Articles in the WSJ and on NPR agree.

If you are looking for opportunities to increase productivity (your own or your employees), start by dealing with the distraction factors. There are thousands of great books on time management written by people a lot smarter than me. But the one thing that I am convinced is guaranteed to increase productivity is:

Create periods of undistracted time when you turn all this stuff off and focus on important projects (or people) - or simply take that time to think...

In my opinion if you can do this one thing consistently, you will be way ahead of the game.

Who is your Business Confidant?

Mon, 14 Sep 2009 12:38:48 -0800

Eighteen years ago I 'tried' to start an independent consulting practice... Emphasis on the word 'tried.' One of the primary reasons this didn't work out so well, is that I did not have a Business Confidant. I needed someone I could trust who was objective and could understand what I was going through; someone with experience who could provide perspective, guidance, encouragement and accountability. I learned from my mistake. When I started Janssen Consulting a few years back, I made sure to have such a Business Confidant and it has made a significantly positive difference. I have learned that while I can act in this role for others, I cannot do it for myself.

Who is your Business Confidant? Sure this will be seen as a self-serving question in the context of this blog. However I firmly believe that all Owners/CEO's need someone to fill this role. And yes, it's usually someone you will be paying. In our personal lives, we often pay counselors, life coaches, spiritual directors, etc. Why wouldn't we invest in the same way for our business lives which consumes so much of our time and energy?

So, who is your Business Confidant? Who sees you and your business from a holistic perspective and can provide that guidance, encouragement and accountability to help you achieve (your definition of) success? It might be your CPA, Attorney or Financial Advisor. Maybe it's an Executive Coach, or a CEO Roundtable group or an independent advisor. Regardless of whom it is, when you have a good one you will quickly see what a significant difference it makes to you and your business.

It's a great day at Janssen Consulting and life is good...

Give the gift of experience... You and your employees will be happier!

Mon, 03 Aug 2009 10:42:25 -0800

The next time one of your employees comes to you with a question or a problem, resist the easiest (and most automatic) reaction: To give the answer or jump in and take care of the problem. You (and they) know that you can do it faster and better, however that's short-term thinking which can be costly in the long run...

Granted, the quick answer or immediate action is needed at times. Often, however it is not. Providing that quick answer or jumping in to help can delay the accumulation of the very experience that your employees need in order to grow and take on more responsibility.

Here are a couple of methods that I use and recommend to my clients:

The "Just put it off" method. When someone comes to you with a problem that is not critical, tell them that you don't have time to get into it now and that you will need to discuss it later in the day/tomorrow. When you do follow up, you will be amazed at how often they end up having figured it out on their own.

The "Make 'em think first" method: Anyone coming to you with a problem must also bring potential solutions (or suggested approaches to get to a solution). For this to work, they need to be confident that they won't be ridiculed for naive or unworkable ideas. This can create a very teachable moment where you find out how your employees think and where there are gaps in training or resources. You may also be surprised by some some great ideas that you hadn't thought of before.

In spite of the short term 'pain' of dealing with another person's learning curve it is definitely worth the effort. You end up with more capable and confident employees as well as more time for you to focus on strategic initiatives, new opportunities - or maybe getting home in time for dinner with your family...

10 reasons you are leaving money on the table ....

Wed, 29 Jul 2009 12:32:26 -0800

You are 'doing' what you have been doing - the same way you have done it - for years
You think (or hear the words) "we can't charge that much - especially in this economy"
What your customers expect before they buy is not what they experience after they buy
What employees are taught about the company mission, values and culture is not what they experience when they come to work
People come to you when they have a problem ... and you solve it for them
When a new employee does something for the first time, they have to ask around for help until they find someone who has done it before
Meetings take place and people wonder why
At those meetings people have to help each other remember the results from the last meeting
You are using your computer system the same way that you did when it was first installed
The reports that you have to run your business come from your accounting system

Fred's Guest Post on Ian Lurie's Blog; Conversation Marketing

Tue, 28 Apr 2009 10:42:59 -0800

Here is a link to an article that I wrote about developing and managing great customer relationships as a guest on Ian Lurie's Blog; Conversation Marketing. Thank you Ian for invitation to write and for the great testimonial in your introduction!

Building a more valuable asset

Wed, 22 Apr 2009 14:31:02 -0800

The purpose of my business is to help business owners build a more valuable asset, not just get a paycheck. Here are ten foundational elements that I believe define a valuable business:

A clear, well articulated long-term vision and strategy for achieving the goals of the owner and the business

A quality product or service that is delivered on time at a price that properly reflects it's value

A brand image that is authentic and that is consistent from all viewpoints inside and outside the company

A well managed operation that leverages people, processes and technology and that minimizes dependence on the owner

Marketing, Sales, Operations and Finance aligned with each other and with the overall vision, strategies and goals

Motivated, capable employees who take ownership and who are empowered to get things done

A satisfied and diverse base of customers who are profitable, loyal to the company and refer good business

Systems and procedures that are practical, effective, well defined, highly accessible and well understood

Technology, Administration and Accounting functions that are driven by the needs of the business and not the other way around

Intelligent financial management that focuses on efficient cash flows, long-term profitability and a solid balance sheet

It is not easy to develop and maintain these as a business grows and circumstances change. Doing so requires insight, creativity, structure, guidance and accountability. And that is the essence of what I provide to my clients.

Perspective, Focus and Endurance...

Wed, 01 Apr 2009 12:58:21 -0800

I have a special place in my office where I keep some of the books that I have found uniquely inspirational and helpful over the years. Seeing these titles and thinking about the lessons and wisdom that they contain often gives me perspective.

One of these books is Endurance: Shackleton's Incredible Voyage by Alfred Lansing. This is an incredible true story of adventure, crisis, survival and triumph that I highly recommend reading (or re-reading). The sheer magnitude of the challenges faced by Sir Ernest Henry Shackleton and the crew of his ship Endurance is difficult to imagine. Yet, in spite of the unbelievably challenging circumstances he faced, Shackleton had the perspective, focus and endurance to help his crew survive and ultimately get rescued.

We are not Ernest Shackleton, we're not aboard the Endurance and this isn't Antarctica. However, we are navigating through turbulent times and unknown economic waters. The incessant daily drumbeat of gloom and doom coming from so many directions has the potential of getting people 'stuck' in fear and anxiety just like the Endurance got stuck in the Antarctic ice. Had Shackleton focused on the fear and anxiety provoked by his circumstances instead of on his vision and goals, I am sure that there would have been a much different ending.

Whether or not you find yourself stuck or anxious about current circumstances, I recommend reading this book. It is always good to get a little perspective.

Surfing and the Economy

Sun, 08 Mar 2009 13:56:05 -0800

I recently realized a childhood dream, I went surfing. While on vacation in Maui, I took a lesson with my daughter on her 15th birthday. It was great fun! As I have thought about that experience, I have looked at surfing as an analogy for operating in this (or any) economy. Think about it...

Waves, like economic cycles are always different and they are constantly moving and changing
If you don't catch the wave at the right time, the experience is very different than if you do
If you don't bail out in time, you might crash into the rocks or the shallows
Even the experts wipe out
No matter how good the wave, the ride never lasts forever
And, after the ride, hindsight is always 20/20 as to what you should have done different

I thought of more, but I'll stop there. If you get to West Maui and want to enjoy a fun surfing lesson, go to Goofy Foot Surf School and ask for Mack.

The (Real) New Economy; Value, Principles and Common Sense

Sun, 18 Jan 2009 13:23:25 -0800

The 'new economy' was originally touted around Y2k. I believe that the 'real' new economy is ahead of us as the result of (and gift from) the current economic downturn. I see the 'new economy' as a return to Value, Principles and Common Sense. Of course, what's new is old... these attributes have always been effective and they always serve individuals and businesses well.

Value: Taking the time and making the effort to recognize, deliver and acquire products and services that clearly provide real value and return on investment - however you define that (versus "fluff 'n stuff").

Quality products delivered in a timely manner with great great product support
Professional Services performed as promised with proactive follow-up ensuring expected value was received
Investing in people, process, equipment and technology based upon their ability to help you achieve your long-term goals

Principles: Acting with integrity and with the sincere intention of delivering value to others.

Communicating with your customers, employees, vendors - with everyone - in a clear, honest and straightforward manner
Saying what you do, doing what you say and always following through
Living and working with a purpose that goes beyond personal gain and supporting the success of others

Common Sense: Applying sound thinking and proven fundamentals in the short, medium and long-term.

Building solid relationships and delivering quality products and services in a timely manner.
Recognizing that the downward economic cycle will reverse and investing the time, energy and money to be well prepared for that upturn
Recognizing that you can't borrow your way out of debt/deficit - financial or otherwise. The only way out is creating net additional value

I absolutely believe that businesses and individuals who do a good job executing on these "Simple,not easy" fundamentals will be successful in the long run.

Mary Anne Dorward Interviews Fred Janssen

Tue, 02 Dec 2008 14:04:43 -0800

I was recently interviewed by Mary Anne Dorward, CEO of Speaking to Win, on her BlogTalkRadio show "Business Off The Beaten Path."

Click Here to Listen

Here is an index of the questions:

00:00 Introduction
02:00 How would you describe your business?
02:33 Why do business owners and CEO's hire you?
06:47 What makes you unique as a business consultant?
08:27 Do you specialize in a particular industry?
10:24 Does a solo practitioner have a different need from a larger organization?
11:00 Are there other similarities that you see with your clients?
12:33 Are there communication skills that most business owners need for success?
14:41 Is there one communication skill that is most essential?
18:06 Do you have a favorite book that has impacted your business?
21:14 Is there a special mentor that has helped you in your life?
23:24 What experience has most influenced who you are today?
25:24 Is there someone you admire in your industry?
27:10 What defines good operations?
30:50 Is there anything that you would like to leave in the mind of our listeners?

5 Ways to Build a Strong Foundation for Happy, Satisfied Customers

Fri, 21 Nov 2008 15:00:57 -0800

How you begin your relationship with a customer has a lot to do with how well the remainder of the relationship goes. In a previous post, I listed five ways to keep your customers happy and loyal. If you gain the trust and confidence of your customer from the start, you will have more stability throughout the relationship. This can really help when you stumble at some point down the road.

Here are five ways to begin your relationship on a strong foundation and create happy, satisfied customers from the start.

Define and follow a structured process for transitioning your customer from the sales team to the delivery team. A process that covers all the bases and demonstrates your capability and professionalism. This will reinforce your customer's confidence that they made a good decision.

Before you begin delivering products or services, re-confirm with your customer that what they expect to receive (and when) is consistent with what you intend to deliver (and when). Unmet expectations from either perspective are the cause of many problems.

Have a system for recording, sharing and maintaining customer information internally. Make sure that it includes critical background intelligence gained from the sales and intake process. Then make sure everyone involved in the project/relationship is familiar with this information.

Tell your customer what they can expect in terms of communication, when and how it will take place, and who in your company is responsible to make that happen. Then make sure you follow through and communicate the way you said you would.

Confirm that your customer clearly understands their responsibilities for the success of the relationship.

While these would seem like common sense fundamentals, it is amazing how many companies do a poor job in this area. Remember, success doesn't come from knowing, it comes from doing.

Maximize Your Return on Investment from Mistakes

Thu, 20 Nov 2008 16:31:33 -0800

What do you do when you or your employees make a mistake? Do you...

Get angry?
Focus on blame?
Jump in and fix it yourself?

Mistakes are costly in dollars, time and frustration so be sure to maximize your R.O.I. when they occur. Identify and separate the value of the mistake from the consequences of the mistake then take action to maximize that value; i.e.:

Improve a process or procedure to prevent (or minimize) repeating that (or a similar) mistake
Create a tracking and reporting mechanism that warns of the circumstances that often lead to the mistake
Identify and address deficiencies in management, supervision or accountability that might have contributed to the mistake
Improve staff (or customer) training, communication and knowledge sharing methods
Develop a more valuable employee by mentoring and reinforcing the experience gained from the mistake including the experience of correcting it and dealing with the consequences
Improve the evaluation and hiring process to filter out people who don't learn from their mistakes
Improve your own management and leadership style to focus on opportunity and less on knee-jerk reactions
Use the opportunity to build overall staff capability, trust and loyalty

Mistakes represent an opportunity to improve your business. If you endure them without capitalizing on that opportunity, the same mistake will most likely re-occur until you do.

On This Father's Day, Words To Live By From My Dad...

Sat, 14 Jun 2008 00:00:00 -0800

I was very fortunate to have had a close relationship with my dad. He was a Dutch immigrant who came to this country right after WWII. He and my mom had a wonderful marriage of 46 years. As a couple and as individuals, they have both been great role models for my sisters and me.

Being the only boy in a family of 5 children, I had the advantage of my dad's full attention when we did 'guy stuff' together. Throughout his life, my dad was always known for his strong character and great integrity. He was a gentleman and a truly gentle man. Somehow, he was able to command respect and obedience in our family without raising his voice (an accomplishment that I have failed to replicate).

I learned a lot from my dad, mostly through his example. There is one specific piece of advice, however, that I have carried through the years in a special way. I received it when I was 18 years old living in Germany while serving in the Army. As a Christmas present, my dad gave me a little book titled As A Man Thinketh by James Allen. On the inside cover, my dad wrote his words of advice which I have treasured ever since. He wrote "Be the master of your mind and your life will be good and meaningful." His advice and the principles contained in this book have been (and continue to be) a consistent and motivating influence in my life.

Year after year I come back to this little book, and to my dad's words. It always seems to inspire me to keep working towards the ideals they represent. Also, reading my dad's handwriting brings a clear picture of him into my mind which gives me comfort and encouragement. My dad has been gone for many years now, and I still miss him. Yet I am proud to carry so much of him with me as I live my own life. I truly believe in his advice and in the principles contained in this little book.

I only hope that I can live in such a way that would make my dad proud, and that I can pass his advice on to my own children in a way that helps them have a life that is "good and meaningful."

Happy Father's Day

In Loving Memory Of My Dad
Frederick (Friedjof) Johannus Christie Janssen
April 12, 1922 Apeldoorn, Netherlands
March 31, 1991 Bakersfield, California

The Benefits of Operational Alignment

Tue, 06 May 2008 08:24:33 -0800

The benefits of alignment are clearly evident. Cars run better, use less gas and get more mileage on a set of tires when the wheels are properly aligned. A marksman is able to hit the target more consistently and accurately when the sights are aligned. And so it goes.

From a business standpoint, operational alignment is not only beneficial - it is crucial to a company's success. 'Operational Alignment' occurs when people, systems, processes and technology are properly positioned to support your strategies which in turn support your overall mission and goals.

Let's say that one of your key strategies is outstanding customer service. If you have Operational Alignment with regard to this strategy, here are some indicators:

Employees are screened, hired, properly trained and well managed with relevant accountability standards in a manner consistent with the customer service objective.
Employees have ready access to useful tools and information along with adequate authority and flexibility to make decisions that support outstanding customer service.
Internal systems, procedures and technology are designed to support quality customer service throughout the lifecycle of the customer relationship (i.e. single customer database, documented processes and workflows, project status reporting, issue tracking and proactive follow-up).
Management information and reporting is timely, accurate and tracks useful customer service metrics and trends which are acted upon to make improvements.
Every touch point with the customer reinforces quality customer service (i.e., clear proposals, proactive project updates, delivery status notification, clear billing statements, timely customer service response, proactive account management).
In general, communication, management behavior and the overall environment within the company supports the strategy which results in employee buy-in. Outstanding Customer service is a 'value' (What you do) not just an 'ideal' (What you 'should' do).

How do you know that you are in a state of Operational Alignment? Your customers tell you (because you consistently ask them for feedback). They enthusiastically refer you to others. They remain loyal and they forgive you when you stumble occasionally (provided you handle the stumble well).

How do you know if things are (getting) out of alignment? Hopefully you find out first from your people, systems and processes. Other symptoms are discussed in my posts on Operational Friction and Disconnect. One clear indicator is if you, as Owner/CEO, are spending a significant amount time directly involved in detail issues or talking to unhappy customers or employees. Another sign of (potential) problems is hearing nothing good or bad... (See my post "No News Is Bad News").

Applying a fresh set of experienced eyes to your business will identify opportunities and methods for improving Operational Alignment (yes, more shameless self-promotion). The benefits are increased profitability, additional equity value, more peace of mind and greater satisfaction as you move more quickly toward your goals.

The Perils of Disconnect... (Operationally Speaking)

Sun, 20 Apr 2008 12:28:38 -0800

In an earlier post, I brought up the subject of Operational Friction. In this entry, I would like to address a more dangerous business condition, 'Operational Disconnect'.

Where 'friction' implies the need for some adjustment or lubrication, 'Disconnect' means something is really broken and will take significant effort to fix. We more commonly experience this with large corporations and government entities. However, It can also happen in smaller companies with more immediate and dangerous consequences.

Here some examples of what I call disconnect:

Marketing materials and salespeople tout high quality and on-time delivery. What the customer actually experiences, however, is late deliveries and all-too-often defective products.
Outstanding customer service is part of the message, but when the customer calls they end up yelling at a poorly designed automated attendant (as much as I hate to admit it, I have done that...), then they are put on hold with lousy music or annoying ads and are dealt with in a rote, impersonal manner by someone who can't take care of a problem that doesn't match the checklist. On top of that, they have to call back multiple times to find out where things are at and make sure things don't get lost in the cracks.
The Mission Statement includes the sentence 'Our Customers' or 'Our People are our most important asset.' Yet when you look into things, you find that no one is really listening to 'our customers or 'our people' about what is really going on and how to do things better.

So how do you address Disconnect? It can be as challenging as having to change an ingrained culture. At the very least, it requires significant operational changes that allow points of Disconnect to be identified, followed with the will to implement changes that eliminate it. For instance:

Define and monitor the metrics that will help you identify and manage trends in areas that often turn to Disconnect, such as on-time/quality delivery, long term quality, service call volume to product type, time-to-resolution (from the customer's perspective), etc.
Create an environment for honest two-way communication between you and your customers. This takes proactive effort beyond the typical satisfaction survey. Make the phone calls to the decision makers (Don't delegate to a front-line staff person). Do this at different intervals in the relationship such as during delivery, post-delivery and after long-term use. Make time especially to listen, face-to-face, to your best customers to find out what is going on from their perspective and what it takes to attract and keep them. Then take action on what you learn.
Create an environment for honest two-way communication between you and your staff, face-to-face where possible. This means scheduled visits, regular meetings, reviews, etc. Listen without judging, discounting or manipulating what is shared. Combine this with clear expectations and standards of accountability that are documented and measured with consistent followed-up.
Keep customers and staff informed about what is going on. You don't have to share confidential financial information or sensitive plans, but don't patronize or underestimate the intelligence and awareness of your staff OR your customers. Remember that trust begets trust and loyalty.
Don't delay too long in making the tough decisions when necessary. Fire that customer. Let that long-term employee go. Drop that old product or service that you can no longer deliver or support properly. Admit you need some help then get it.

Disconnect is challenging to address. It takes time to resolve. With proper intent, good planning and consistent effort, it is possible to reconnect the pieces and resume the 'flow.'

An 'R' Word Worth Focusing On

Wed, 13 Feb 2008 19:35:32 -0800

It appears that unpredictability is the operative word these days - from weather to politics to economics - the status quo is being challenged. With some of the blatant errors made by the many pundits in the media, a critical eye and ear on what we see and hear is certainly in order. Nothing new here. Throughout all this, it seems that everyone wants to talk about an 'R' word, so I will add my voice to the discussion:

My 'R' word is Resilience: Resilience is defined as the ability to recover from, or adjust easily to, change. Resilience addresses the fact that there will always be disturbances to the status quo, both positive and negative. As a Prostate Cancer survivor, the concept of resilience has taken on more importance for me. We all experience those surprises in life that challenge us and 'test our mettle.' Whether we are talking about disturbances in our health, unexpected weather or other emergencies, or our business, increasing our resilience helps us move through these challenges more effectively and helps us gain more from the experience.

While resilience is perfected through dealing with challenges first-hand, one can learn a lot from the experience of others. Developing resilience requires forethought and consistent effort. From a business perspective, whether you are experiencing rapid growth or you are facing a slowdown, you can use the same strategies to build resilience. Here are some examples:

Always keep an eye on that point on the horizon you have chosen as your destination.

Be the drama settler. You can't ignore rough waters or changes in the wind and currents. You can, however, keep your employees focused on what is important.
Assemble a group of trusted advisers that you can talk with and gain perspective from, and meet with them consistently.
If you choose to alter your destination, do so reasonably, realistically and rationally from the point-of-view of opportunity versus fear.

Know what the key indicators are that tell you how your business is doing, and stay on top of them.

Clear and concise cash-flow reporting that not only tells you what you have, but what is coming, and how accurate your projections were last week.
Useful and timely financial statements including P&L with ratios and comparisons that show performance of different departments or business units.
Accurate operational reports that show results and trends in sales cycles, duration of projects, timely delivery, quality, customer service and satisfaction.

Leverage your resources, making sure you get the most out of the people, processes and technology that you have.

Create and maintain consistent, documented processes, checklists, training aids, etc.
Develop methods to share knowledge and information resources as effectively as possible.
Make sure your employees are properly and consistently trained.

Strengthen your relationships with your customers, suppliers and employees.

Invest in consistent face time.
Always communicate with clarity, honesty and openness.
Follow through in all that you do.

Reduce your dependencies.

Leverage your own knowledge, skills and capabilities so you can focus on leadership and strategy versus tasks and firefighting.
Diversify your customer base.
Find additional suppliers and outside resources.

Stay vigilant.

Keep up on market trends and technology changes.
Seek new markets for existing products and services.
Watch for new competitors or changes in existing ones.

And don't forget to develop your own personal resilience by making time to:

Stay healthy (in all ways).
Enjoy your family and friends.
Reflect on life and keep things in perspective.

The Problem with Friction... (Operationally Speaking)

Wed, 06 Feb 2008 21:00:00 -0800

As I work with my son to build his Cub Scout Pinewood Derby car, I am reminded that the difference between winning and losing these races is based on how much the builder can minimize friction - i.e. between the track and the wheels and between the wheels and the axles. These are usually simple things that can make a big difference starting with basic alignment of the wheels and a little graphite on the axles.

Which brings me to the subject of this post: "Operational Friction"

Much like physical friction, operational friction is "resistance or conflict" which consumes additional effort and energy and produces less-than-optimal results. Fortunately, operational friction can often be reduced or eliminated with changes in processes, procedures, technology, training, attitude or staffing.

Examples of operational friction in action:

A new project is delayed while the delivery group scrambles to respond internally and externally to find out what was promised by whom and what they should do about it.

A frustrated customer calls to find out the status of an order that should have already been delivered, and the customer service staff has to literally chase all over the place trying to find out what's going on.

Staff are overloaded with calls - and customers are frustrated with the delays - when a new product is released and there are problems - from actual flaws to a lack of understanding of how to use or support it.

Operational friction is present at some level in every business. It can be very costly, with the negative impact becoming more significant as your business grows. As you might expect, Identifying and reducing or eliminating operational friction can significantly improve results through increased productivity, higher customer satisfaction, better employee morale and more time to focus on strategy versus tactics.

Here are a few ideas for reducing the operational friction described above (making assumptions about the type of business):

Establish structured involvement of delivery team leaders/project managers in the proposal development process.

Develop systems and procedures that notify the customer of internal delays before the customer calls.

Get support involved in product development and testing so that they can provide training and documentation that is useful to them.

Are you experiencing operational friction in your business? The place to start looking for opportunities to reduce or eliminate operational friction is anywhere that a transaction, transition or exchange of information takes place - i.e. Customer/Sales - Order/Fulfillment - Production/Accounting - Anyone/Technology - Management/Information - etc.

It's amazing what a minor change in alignment and little graphite can do...

Extra! Extra! - Read All About It!

Fri, 18 Jan 2008 14:54:28 -0800

"As Economy Slows, Reputation Takes On Added Meaning." ⁽¹⁾

This is the title of an article that caught my eye (the more cynical one on my right side). In this article, the author talks about the rise in demand for 'Reputation Consulting'-- apparently a new niche brought about by the number of companies that have managed to squander theirs. To quote the managing partner of a national reputation consulting firm interviewed in the article "Mending reputations can't be done overnight" (a bit self-evident, but undeniably true). ⁽²⁾

So - I have decided to expand into a new line of business (at least for purposes of this post) and provide "Reputation Consulting" services - for free. I feel compelled to do so since these principles were taught to me for free ⁽³⁾ by the best reputation consultants I have ever known - my Mom and Dad. So - here is my "secret sauce" reputation advice:

A good reputation is really important (regardless of the economy).

If you want a good reputation treat other people with respect, always act with integrity, always tell the truth, say what you do and do what you say, admit it when you make a mistake (then make appropriate amends).

Remember that even if you don't think anyone is watching, someone who knows someone who knows someone who knows you know will likely find out if you do something you shouldn't (that one always got me when I was teenager).

It only takes a brief moment to tarnish or lose your reputation

If it does get tarnished it's a long and difficult road to recovery (with appropriate attribution to the consultant interviewed in the WSJ article).

The only person who can earn, protect or (heaven forbid) lose and then try to recover your reputation is you. From a business perspective you may have employees to be concerned about, but you are the example they (usually) follow.

Hmmm... Maybe I should rename this new line of business 'Common Sense Consulting'... ?

(1)"As Economy Slows, Reputation Takes On Added Meaning" by George Anders, Wall Street Journal, January 9, 2008 page A2. Unfortunately, this link will only work if you have a subscription to the on-line version of the WSJ.

(2) In all fairness, my frame-of-reference as a consultant to owners of small to medium sized closely-held businesses is obviously different than those who work with fortune 500 public companies.

(3) Please note that 'free' is a relative concept here and does not include the times I paid the price in unpleasant consequences for occasionally getting some of these wrong when I was a kid...

The Art of Leverage - In Good Times and Not-As-Good Times...

Tue, 15 Jan 2008 09:00:04 -0800

I have always liked the term 'leverage' to describe ways to get more done with less effort (applied to me, it always sounded better than the word 'lazy'). When I talk with clients, I define leverage as getting more (i.e. time, productivity, money) from what you have (i.e. people, processes, technology). I consider gaining leverage as more of an art than a science, since it requires perspective, insight and creativity along with the ability to effectively implement change involving people, processes and technology.

Increased leverage is critical in order to grow your business profitably. Leverage is also very important when it's time to 'tighen the belt' allowing you greater margin to weather 'economic disturbances' more effectively. Just think of what you could do if you had more time to focus on strategy as opposed to reacting and putting out fires (not to mention improved health)? What if you could better leverage the time of your staff to get more done without adding more people? Can you imagine finding new revenue opportunities or ways to save money or time if you operated a bit differently?

Doing more with what you have is always a good idea. Here are some signs that there is opportunity to gain value through leverage (indicated by 'yes' answers and qualified by the type and size of your business).

Do you get pulled into participating in projects or operational details by your staff?

Do customers and/or staff consistently call you in to solve their problems?

Do you find yourself and/or your key managers tied up 'doing' what you/they are supposed to be 'managing'?

Is there any confusion or mis-steps in the process of moving your customers from proposal through sale through delivery and follow-up?

Are you unsure which customers are truly profitable and which are not (including intrinsic factors)?

Is it painful for you to get useful information quickly?

Is there any doubt that you/your people have all the information that you/they need to make effective, timely decisions?

Do you ever doubt the accuracy of the information that you do get?

Is it possible that there is some underutilized or untapped capability available from the internal systems and technology that you already have?

Is there any chance that your people might not be properly trained or have what they need to do their jobs well?

Is there any question about the motivation and attitude of your staff?

Do you ever wonder if your financial resources are being used and managed as efficiently as possible?

Does your intuition tell you that there may be ways make your business operate better?

In good times or not-as-good times, finding new ways to leverage your resources can put money in your pocket, time in your day and value in your business (inferring, of course, the shameless subliminal self-promotion conspicuous in its absence).

Will you and your business be ready when the time or opportunity to sell comes along?

Tue, 08 Jan 2008 08:35:24 -0800

The 'What If' Analogy...

What if you decided to sell your home this year - or, what if someone came along tomorrow interested in buying your home right now? Would you be prepared? Are you ready for a potential buyer to start poking around more closely - foundations, structure, roof, plumbing, electric, heater, appliances, etc.? Would knowing everything about these details increase the value of your home -- or might it be the other way around? What if you were 'prepared' and had everything in great shape, no deferred maintenance and your home was nicely 'staged' so that a potential buyer could clearly see how they might quickly acquire and move into your house and live comfortably. How might that impact the selling price and time it might take to complete the sale? (1)

What if we are talking about your business?

Based on what I have seen with clients, experienced first hand and have heard consistently from business broker colleagues, owners are often not ready when they decide to sell their business or they have an opportunity to sell knocking at their door (The Wall Street Journal recently had an article on this subject titled "Want to sell a Business? You May Not Be Ready" (2).
In addition to profitability and cash flow, there are a number of things that can increase the value of your business and the speed of sale (and transition) i.e.:

A business with the right team and structure in place to continue being successful with or without you

Systems, processes and procedures that are well defined, understandable, up-to-date and working properly

Management reporting that is delivered consistently, concisely and reliably and provides decisionable information from which you and your team can effectively operate the business

Customers, Employees and critical Vendors who are happy, referenceable and loyal (to the business - not just to you)

Properly prepared (and audited or auditable) financial statements available annually

Strong accounting processes and controls that are consistently followed

These are obviously important and desirable whether you plan to sell you business or not. If, like many owners, you do plan to sell your business, being well prepared could represent significant additional value and allow for a smoother, faster transaction and transition. Getting a business in the best shape for sale is often a 3-5 year process. And, like properly staging your home, you will benefit from the expertise of outside professionals who understand the components of value and how they fit together (beyond just the financial statements). Yes I realize that is a self-serving statement, but it is the truth.

(1) Some of my inspiration for this post comes from my friend Susan Peters who is a master at staging and marketing her client's homes - adding significant value in terms of both higher sale price and speed of sale (www.susanpeters.com).

(2) "Want to sell a Business? You May Not Be Ready" By Arden Dale, Wall Street Journal, January 8, 2008, page B6. Note that this link will only work if you have a subscription to the WSJ online.

Good Book: The Battle for the Soul of Capitalism (2005, John C. Bogle)

Tue, 13 Nov 2007 17:52:32 -0800

I have always had a lot of respect for John C. Bogle, founder of Vanguard Funds. I consider his book The Battle for the Soul of Capitalism well worth reading. He defines problems with Corporate America, Investment America and Mutual Fund America - and talks about causes and solutions.

Unlike many "Now that I am retired I want to Rant" books (i.e. Lee Iaccoca's Where Have All the Leaders Gone?), Mr. Bogle's treatise is clear and logically presented. You also don't have to be a fan or believer in "Stock Indexing" to get something out of it. I like his style... Check it out.

CYA

Mon, 12 Nov 2007 20:39:07 -0800

I have always had fun with acronyms. Most people know CYA to mean something that I won't spell out here. For my purposes, I'd like to redefine this acronym as "Challenge Your Assumptions."

For years I have been told (and I have often told others) "Never assume anything." I've decided that this statement really makes NO sense. We MUST make assumptions all of the time, then move forward on our best judgment, instincts, etc. If we didn't we would never get anywhere - at least not anywhere very fast.

It isn't about 'never' assuming anything, it's about challenging the assumptions that we make - especially key ones (i.e. the light just turned green, so all cross traffic will stop). When it comes to business, there are all sorts of key assumptions that should be challenged.

- My customers are happy (One of them told me so, and no one calls me with complaints)
- My product quality is high (We have QC processes and the products don't get returned)
- I am selling a lot of stuff, so cash flow is not a problem (it has never been in the past)
- I don't need a line of credit (I have money in the bank and debt is 'bad')
- I need a new computer system (I don't get good information from the one I have)
- I know what's best for my employees (I have age and wisdom, they are young and inexperienced) *

What assumptions are you making? Maybe itâ€™s time to sit down and have a serious CYA session.

* These days you should be especially aware of 'inter-generational' dynamics in the work place. Anna Liotta shares some great information about this her Blog.

And... Check out the assumptions made by the judge panel in this video. I enjoyed it so much, I wanted to share.

No News is Bad News

Mon, 22 Oct 2007 20:19:57 -0800

How often have you dealt with someone (or some organization) that did not respond to your call or email in a timely manner, or left you hanging about some issue, project status, etc? A few recent experiences have made me acutely aware of how a lack of response or follow-up can really irk people (especially me).

The old adage that 'No News is Good News' is wrong - 'No News' typically means that someone is becoming frustrated from lack of communication. Where customers or employees are concerned especially, "No News is Bad News"...

When customers or employees call or email - get back to them in a timely fashion (24 hours max is a good rule of thumb). Even if you simply tell them that you are unable to respond immediately, your acknowledgement is important. If you can't respond immediately, tell them when you will and then follow up.

If you are working on a project or service issue for a customer, keep them posted (see this earlier entry)

If you have told an employee that you will get back to them about something, get back to them - and if you get delayed, let them know when to expect your response.

Everyone is overloaded with too many emails, voice mails, etc - but that doesn't change the reaction people have when you leave them hanging. No one likes to feel ignored. I am really talking about basic courtesy here - something simple (though not always easy) that makes a big difference.

Management, Measurement and Common Sense

Tue, 02 Oct 2007 10:43:57 -0800

Everyone has heard the phrase "you can only manage what you can measure." Numbers, metrics and statistics are useful and important in every business. The key is to make sure that the 'what', 'how' and, most importantly, 'why' of your measurements and related methods makes sense.

The more a business focuses on numbers, the more those numbers tend to start 'saying what we want to hear.' I have always marveled at how numbers can be 'managed' - which can certainly contradict 'managing by the numbers.' If you are not using some measurement of results and progress in various areas of your business, you probably should be. If you are, then you should consistently re-evaluate the reasons, relevance and accuracy of your measurements along with your methods for obtaining them - e.g.:

Is it still important to measure [your statistic here] - Do you make decisions based on this?

Does that satisfaction survey represent an adequate cross-section of your customers (or types of interactions with your customers)?

Are the questions inadvertently 'rigged' to give good feedback?

Are your quality or on-time measurements valid (i.e. from the customer's perspective)?

Have your staff performance review rankings become homogenized and predictable?

Are your budgets and forecasts inhibited by pre-determined 'expectations' versus reality - or possibility?

I am all for management by measurement - when combined with common sense. And, as far as I am concerned, Common Sense is still king.

Cash Flow - a subject close to everyone's heart....

Tue, 25 Sep 2007 11:30:50 -0800

Monday's Wall Street Journal (9/24/07) has an article in the 'Small Business Link' (B4) titled
"Three Approaches to Reining in Customer Debt." by Simona Covel. The three approaches discussed include:

- Cut off offenders
- Tie sales commissions to payments
- Establish formal policies

This article got my juices flowing on the subject of cash flow; something which is close to my - and every business owners' - heart. So, here is my extension of the above advice.

1) Establish formal, documented billing and collection policies internally and with your customers (i.e. past-due x days=Letter; y days = Stonger Letter/Finance call, z days = Final Notice/CEO(Executive) call, z days plus = Cut Customer Off)

2) Communicate your policies clearly to your customers (decision maker and finance group) and your staff and ensure that your policies are clearly defined in your contracts

3) Consistently follow through and enforce your policies, holding responsible staff accountable (i.e. compensation incentives or dis-incentives)

4) Have (and review) a weekly cash flow summary/dash board that lays it all out clearly and logically - available cash, anticipated collections, aged receivables, forecasted payables, etc., over the coming weeks and beyond - as well as last weeks results relative to what was forecasted

5) Establish a "Prospective Customer Fit Profile" - a rating system that identifies key indicators of customer quality and fit including their ability and propensity to pay on time. Then hold sales accountable for bringing in quality customers that pay on time

6) Analyze customer profitability (i.e. quarterly). What is your realization rate on all of the time that it takes to manage that customer? What is your ROI (hard dollars and intrinsic) on the relationship? Be prepared to direct undesirable customers to the door (in a professional manner, of course)

7) Look at the processes, systems and staff accountability that is in place and ensure that you are tracking and billing all services performed (or materials used, etc.)

8) When cash flow is a problem, don't fall into the trap of Small Thinking - i.e. only focusing on costs... Think Big Picture... What additional revenue is out there? Are you missing opportunities because you or your key people are not spending time doing the right things? Are you and your staff talking with your customers about new products or services? Are there reasons customers are not paying on time (i.e. service or quality issues)?

9) Look at how you are (or are not) utilizing debt. Are you using current operating cash flow to finance long-term assets?

10) Develop a relationship with a good banker (this is different than finding a bank with a commercial lending officer) and take the time to establish a line of credit when cash flow is not critical issue

11) When you are planning, make sure your cash flow forecasts make sense from both a top-down and bottom-up perspective. Top Down: What can you sell and how does the cash (really) flow from those sales versus Bottom Up: What is your production capacity (plus overhead) and what are the timing of those cash flows? Do the two approaches meet in approximately the same place?

...Stop here if you want to avoid some shameless self-promotion

12) There are more than 11 things to do to maximize and manage your cash flow, so number twelve is - Get some help. An independent, experienced set of eyes on your business will turn up opportunities that you haven't thought of - and can help you implement changes more quickly and effectively.

I have tried to point out that this is not just a numbers issue. Processes, systems, technology, people - and how they work together - all come into play when you are looking a maximizing and managing your cash flow.

Avoid steering like a drunken sailor... A metaphor for running a business

Sun, 23 Sep 2007 22:36:44 -0800

When I was a young boy, my dad used to take our family to a small reservoir in California, called Lake Woollomes, to go sailing. We had an old 17 foot home-made (not by us) sailboat made of steel. Definitely not the lightest hull on the water...

I learned an important lesson from my dad out on that lake; how to avoid steering like a drunken sailor.

When my dad first handed me the tiller and let me steer the boat, I was focused on the wind, the sails and the water right in front of, and around me. As a result, we progressed somewhat erratically and haphazardly from the dock to the other end of the lake. I clearly remember my dad - who had spent years in the Dutch Merchant Marines - smile and shake his head and tell me that I was steering like a drunken sailor.

He told me that the trick was to pick a recognizable point on the distant shore and stay focused on that target as I steered the boat. When I did that, not only did we end up somewhere that we wanted to get to, we got there more efficiently. I still had to keep an eye on the wind and the sails (and the other boats) - but I was able to quickly make adjustments and maintain our progress toward the target. Sometimes, as we got closer to our original 'target,' we would decide that there was a better spot off to the right or left. That was ok - we just made a course correction and made our way to the new target.

I have always considered this lesson a good metaphor for running a business (and for life in general). It is easy to get caught up in the wind and the water swirling right around us and lose focus on the target and the important activities needed to get there. In many ways I see the purpose of my consulting practice as that of a 'first mate' or 'navigator'; in the boat with my clients, helping them focus on their objectives, identify and deal with the truly important issues, and make more rapid progress toward their "targets on the distant shore." And sometimes I help them find a better spot to set a course to...

The Power of Congruence

Fri, 21 Sep 2007 11:47:05 -0800

I recently had the opportunity to give a presentation to a group of business owners on "Simple, Effective (though not always easy) Guidelines for Building and Running Your Business Successfully" (an embarrassingly long title). This high-level overview of key concepts ranged from strategy and marketing to operations, technology and finance.

One of the points I made was the importance of having an established, positive brand image - and the power and value of 'congruence' of that brand image in all aspects of your business. I use the word congruence because I like it - and because I could not find it on any list of "annoying business buzz-words or phrases."

What congruence really comes down to is:

- Integrity
- Consistency
- Walking the Talk

Customers and employees respond very positively to well-run organizations that are congruent. These businesses build loyalty and strong referral bases that result in more revenue and profitability (and often a better night's sleep for the owner...).

Here is what it looks like when there is a lack of congruence:

Selling one thing and then delivering another - as perceived by your customer (i.e. hearing..." But so-and-so said it would work this way..."

Providing great customer service over the phone then taking weeks to deliver

Having a meticulously designed web site but poorly formatted communications, such as confusing proposals

Having a great personal and professional presence but an amateurishly designed web site

Giving your prospects the impression that you value them and then not returning phone calls or emails in a timely manner

Such incongruence causes confusion and frustration with customers and employees and potential referral sources. The impact can be felt through stunted revenue growth, higher costs, unhappy customers and poor employee morale.

The smaller your business, the easier it is to establish and maintain congruence. There is no excuse for an individual practitioner to have an incongruent brand image.

As your business grows it obviously becomes more challenging. Regardless of size, however, it takes forethought and planning followed by effective implementation and management to establish and maintain congruence in your brand image. Think of it as an investment in expanded potential - revenue, profit and business valuation.

When was the last time you really took a close look at:

How you and your employees are seen (i.e. in person) and heard (i.e. on the phone) by others inside and outside of your organization?

The consistency of the "message" others get from all sources - web, referral sources, employees, customers and vendors?

The presentation of your marketing materials, web site, documents, proposals, invoices and emails?

Whether or not your internal systems and processes support congruence of your brand image throughout your organization?

If you are not looking at this - and acting on what you see - regularly, then you should make the time to do so. If you don't, you are likely to experience unnecessary stress, leave money on the table and you will be heading for bigger problems down the road.

By the way, I am happy to say that my presentation was very well received. In fact, the greatest compliment came from one business owner who told me that "...Your presentation was so very consistent with who you are - you were the same 'Fred' in front of the group that you are one-on-one."

Library content moved to my blog

Sun, 09 Sep 2007 12:20:00 -0800

My Blog seems like a better place to share books that I consider noteworthy... So I am posting the books that I had already listed on my Library page (which has been replaced by Testimonials).

There are SO many books, magazines, blogs, newspapers, web sites, etc., and so little time to read them. Yet every now and then, I find one that I really like. Here is a sampling of those.

The World Is Flat
A very readable overview of how the global business playing field has been flattened in the last few years.

The 7 Habits of Highly Effective People and Principle Centered Leadership
I like the way Stephen Covey focuses on integrity in relationships and big picture/top down planning. I am working on his book The 8th Habit which came out a few years ago.

Conversation Marketing. (The Book and the Blog) by Ian Lurie of Portent Interactive.
Ian does a great job of explaining 'good' Internet Marketing in a clear straightforward way that makes sense to business people and produces real results (and Ian is a client of mine).

Get a Life: You Don't Need a Million to Retire Well
This is not a "business book" and it is not of the 'latest' vintage. I liked this book because it focuses on 'real life' retirement issues - like finding things to keep busy, and developing relationships' among a broad range of people (old and young). Financially speaking, it seemed like a refreshing 'contrarian' perspective when I read it.

How to Win Friends & Influence People
OK, this goes back quite a ways - but it is still a classic, and forms the foundation of many 'Success' pundits of our time.

As a Man Thinketh
Another timeless classic. I still have the copy that my dad gave me in 1973 as I left for Europe with the US Army. I pull it out at least once a year to read it again.

The Economist.
There are so many weekly magazines that are read (or used as coasters). I have found The Economist to be a great read with broad worldwide coverage (and perspective) relative the standard US publications.

Soundview Executive Summaries
There is nothing like sitting down with a good book, but how do you choose what to spend your time on? Here is one way I like to find out what is out there and determine whether it's worth reading the whole thing.

It's always nice to be complimented by another...

Sun, 26 Aug 2007 21:41:56 -0800

I thought I'd share this article profiling me and my consulting practice in Darcey Howard's recent 'LifeStyled' newsletter. I had the pleasure of working with Darcey last year. It was a great 'education' in personal branding (and it was a lot of fun).

Thank you Darcey!

The Right Stuff

Sat, 09 Jun 2007 12:56:24 -0800

I just took a moment to Google my name. Not a typical Saturday afternoon pursuit, but it's a very wet, rainy day here in Seattle... There I am (www.fredjanssen.com) in the number 2 and number 3 spots out of more than 1.1 million results (and my site has only been live since April)! I wanted to bring attention to this for two reasons:

First to brag on behalf of Ian Lurie and the folks at Portent Interactive ; the internet marketing agency that designed and built this site. They are the team with the Right Stuff!

Second to point out the 'value' of choosing the right people for the job, and of measuring your ROI based on results that may lie beyond the obvious. In this case an attractive web site versus an attractive web site that results in top rankings. Another example of how value and price are two different things - something I will write more about in upcoming posts.

Thanks Ian!

First, use what you already have...

Fri, 08 Jun 2007 09:14:24 -0800

Today's Wall Street Journal (WSJ 06/08/07) has a front page article about Bill Gate's speech at Harvard where he was accepting an honorary degree. It has been interesting and amazing to watch Bill Gates grow and change over the years. Actually, he and I have a number of things in common (OK only two - but that is "a number"): 1) we are the same age and 2) he lives in my neighborhood (assuming you consider a 15 mile radius a 'neighborhood').

In his speech, as reported by the WSJ, he provided his "four-point plan for attacking a complex problem."

1) "Determine a goal"
2) "Find the highest-leverage approach"
3) "Discover the ideal technology for that approach"
4) "And, in the meantime, make the smartest application of technology that you already have"

Of course, the complex problems that Bill Gates refers to include inequity, poverty and disease on a global scale. However, these concepts are just as applicable in the day-to-day business world that I and my clients live in.

I especially like #4 "... in the meantime, make the smartest application of technology that you already have." I believe this is often overlooked in a growing business. I have always been one that loves to improvise (improve-ise) with what I have at hand - whether in business or around the house (although I tend to have better results on the business side...).

Yes - your business is growing fast - Yes you need a new system - which takes time and money (and a lot of both). In the meantime, look at what you already have available to you. Sometimes it just takes asking a question (of the right people) such as "what if?", "how can we?" and then "why not?" when you hear the first "we can't" (which often means "we don't know how").

As a prime example, I have seen numerous clients transform the speed and quality of their decision making capability by simply linking a better report writer or analysis tool to their current repository of key operational data (spreadsheet, database, etc) - with a relatively small investment (which creates 'leverage'). I also see many examples of unused system capabilities that may not be obvious, or were simply not understood when the system went in.

What complex problems are you dealing with in your business? Do you need more, better, faster information? Would you like to see more timely billing and collection processes? How about quicker responses to customer inquiries? Would your staff benefit from more knowledge sharing? When looking at problems like these, I recommend that you start with the assumption that you can do more with the technology you already have.

... And congratulations Bill, on your doctor of laws degree...

Mononegotiatis - The art of negotiating against yourself...

Fri, 01 Jun 2007 10:34:25 -0800

Have you ever said to yourself:

"We can't go in with that price, it's too high"
"I can't charge that large of a fee"
"They'll slam the door if I put that number in front of them"

If so, you have experienced what I will call

mononegotiatis [mon-oh-ni-goh-shee-eyt-is]: The art of negotiating against yourself on behalf of another (i.e. a prospective client) to the detriment of your bottom line.

Ok, so it's obviously not a real word, but it does represent a condition that I often see (and have faced myself).

Here is how you combat this condition:

Take a negotiating course (along with any of your staff that deal with customers in the areas of sales, account management, billing, collections, etc.). If applied, the skills learned will quickly pay for the time and expense.

Put your fee in perspective. Take the time up front to understand clearly the benefit (ROI) that your client will receive from your product or service. In addition to more revenue and/or reduced costs, be sure to include "intrinsic" ROI such as lower stress, better staff morale, happier family life, etc. In that light, their investment in your fee is worth it right? (If the answer is no, that's another topic...)

Recognize that once you establish your 'value' with your new client, that 'perception' will stay with you - and will be difficult to change if you aim low. That perception of value will also extend to any referrals that your new client might provide.

Consider this. If you propose your full price and your prospective client slams the door without talking to you, isn't it likely that they would have done the same if you led with a discount of 5, 10 or even 20%? If they are not willing to have a conversation (i.e. negotiate) within a reasonable range of your true value, is that business you really want in the long term?

Resist temptation. If you lead with a stated discount (other than payment terms), that typically tells your prospective client that your 'standard' fee is not real and they will expect to begin negotiating from the discounted price. You want to keep your full value as the frame-of-reference.

Recall that timeless truth: "if you don't ask for it, you won't get it".

And, don't forget that it is much easier to negotiate down than up...

When you do negotiate a discount for your product or service, here are a few suggestions:

Be sure that your proposal clearly states your full (real) price, rate, fee, etc., before the discount. This provides a reference for future projects

Show any discount as a separate line item

Avoid associating a discount on any pricing that might impact ongoing or re-occurring revenues (i.e. hourly rates, renewal fees, maintenance, support contracts, etc.)

Make it clear that the discount applies to the current project and that future projects will be evaluated independently.

Easy and Painless

Mon, 14 May 2007 17:43:48 -0800

I often provide my clients with a "Top X" list of recommendations for Excellence. Typically, one of my recommendations will be how to "Make it easy and painless for your customers to do business with you". Many companies provide great products and services, but have systems, processes or people that make it difficult and frustrating for their customers to do business with them. We have all experienced companies like this.

Then there are those companies that just "get it" - and get it right. I have recently experienced a great example of just such a company. The Complete Line is a family owned business here in the Seattle area that sells office furniture, equipment and supplies to companies large and small (they have been in business for over 30 years). They made a happy and loyal customer out of me by making it easy and painless to do business with them.
They...

Came to my office to establish a relationship and explain their business
Have pretty much everything one could ever need in the way of office furniture, equipment and supplies
Have very competitive prices
Don't require a minimum order
Take orders by phone, fax or web site
Deliver the next day
Don't charge for delivery
Are good, friendly people who know how to build customer loyalty.

You can bet that customers (like me) go out of their way to help businesses like this become even more successful.

More on Keeping Customers Happy and Loyal...

Thu, 03 May 2007 15:59:56 -0800

Brian Keith asked some follow up questions on my last post :

How much communication is too much?

What about delivering bad news in email vs. phone?

How do you hold staff accountable for high customer service levels?

and so I thought I would share my responses...

How much communication is too much?

Too much is when your client says it's too much. That has happened a few times in my experience, but typically it's the other way around - not enough. It's better to be asked to reduce frequency than to get the call (or have your boss get the call) asking "what's going on" and "why hasn't anyone called me?" It's a good idea to create a standard for your business model, and then explain it clearly to your client up front - then stick with it through the project (easier said than done). Take into account that different phases of a project may require more frequent communication (i.e. daily versus weekly, etc). Also - don't overlook other stakeholders that you may not interact with as much - i.e. you may be talking to the client's project team daily or weekly, but don't forget about communicating with the executives or owner (i.e. perhaps weekly for the former and monthly for the latter).

What about delivering bad news in email vs. phone?

Use the phone - with follow-up information/details via email. It may be painful at times, but customers tend to respect your willingness to deal with the situation directly. My rule of thumb is that the more you would rather email the information, the more important it is to use the phone... Call me old fashion, but personal communication (phone or face-to-face) is still the most effective way to build strong relationships with your customers. And, even if your customer is angry, 'listening' and working through the issue is still part of building the relationship.

How do you hold staff accountable for high customer service levels?

Here are a few ideas (maybe someone will chime in with others?):

Observation and listening as staff interact with customers
"How's it going?" calls from management to customer
Quarterly or annual survey-type feedback from your customers (for some business models, "issue" based follow up works as well)
Tracking and reporting forecasted versus actual targets - i.e. milestones, deliveries, etc.
Tracking and reporting on post-delivery issues related to the project
Tracking and reporting all incoming issues
Documenting client communication and then reporting on frequency, spot checking content, etc.
Third party independent surveys of your customers
Mystery 'shoppers'
Tracking and reporting repeat or add-on revenue (i.e. does the client continue to buy?)

Whatever the method, it should be clear to your staff what the expectations are and how they will be measured. And, it should be tied to compensation in some way.

All that said, the best accountability comes from within and from fellow staff. That is the result of building a strong customer service culture throughout the organization.

5 ways to keep your customers happy and loyal...

Mon, 30 Apr 2007 13:01:39 -0800

...(and, by the way, increase your revenue).

I think that pretty much everyone knows that the best source of new revenue is your existing customers. That doesn't just mean selling them new products and services. It also means getting new customers because your current customers love to talk about how great it is to do business with you. There are obviously many components to customer satisfaction; however these five can really set you apart from your competition, since many companies fall short in these areas...

1. Set delivery dates that you know you can meet - then meet (or exceed) them.

2. Call your customer consistently and often with status updates or just to check in.

3. If you make a mistake that impacts the deliverable or the timeline, call your customer to let them know so they can plan ahead.

4. Always be up front and honest about bad news. Take your licks then move on to resolution.

5. Follow up within a reasonable time after delivery (personally - not just email) to make sure your customer really got the value what they expected

You know that there's work to be done here if you find yourself spending more time answering phone calls from your customers who are complaining than making phone calls to find out how they are doing.

Creating and supporting a culture of great customer service obviously becomes more challenging as you grow. As you begin to delegate customer service to your growing staff, you need to pay attention to how you hire, train, manage and hold them accountable for providing the same great level of service that brought you success in the first place. Too many businesses end up scrambling to resolve customer service issues after the fact. This becomes very costly in terms of time, expense, lost opportunities for new business and, of course, stress and lost sleep. The earlier that you address this in a systematic way, the better off you will be.

Welcome to my Blog

Tue, 27 Mar 2007 20:22:08 -0800

I consider the entries here to be a Living Newsletter for Janssen Consulting. While this Blog is open to all, my intention is to use this space to share thoughts with my clients and associates past, present and future. Entries will address practical business issues, relevant news or articles that I come across and, of course, any musings I feel compelled to share.

I want to kick it off by saying Thank You to the outstanding group of supportive people whose work has resulted in this website, especially:

Ian Lurie (www.conversationmarketing.com) and the outstanding team at his Internet Marketing Agency - Portent Interactive (www.portentinteractive.com) for designing and building this website

Bruce Lee (www.creativelee.biz) for writing the copy on this site

Dennis Burns (www.burnsandburns.net) for designing my logo (and my stationery)

Darcy Howard (www.getlifestyled.com) for guiding me with branding, colors and help in selecting the outfits I am wearing in my head shots

Kira Stewart (www.kirastewart.com) for taking those head shots

With very Special appreciation to:
Lenora Edwards (www.lenoraedwards.com) whose expertise, focused guidance and support have helped me turn the idea of Janssen Consulting into a reality.

And, most of all, my wife Anne, the love of my life and my greatest asset