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Wednesday, July 28, 2010

BCA: Looking Forward to the Business of Business

I was able to attend the 2010 Governmental Affairs Conference hosted by the Business Council of Alabama. With the title of “Looking Forward to the Business of Business,” I knew that it would be time well spent. I was not disappointed, and the opportunity to meet many of our Alabama Legislatures up close and personal was a rare opportunity. Many of our representatives were present, and please know that they are hard at work for all of us here in the North Jefferson area.

BCA remains committed to a pro-business legislative agenda, and the content of this event maintained that position. While key information filtered through multiple conversations, one point was loud and clear, the business community must take a lead in the political arena. The members of the business community create the jobs, not the government anyway, so why would you not step up to the plate. The bottom-line challenge here is to remind business leaders that it is our responsibility to drive the synergy of post-election leadership and stridently remind them of their need to support business now.

The event moved quickly forward with Governor Riley presenting at the breakfast event on Saturday morning. The Honorable Bob Riley reminded the audience of his consistent platforms to seek funding and support for economic development, to reform education needed to prepare the work force, and to seek ethics reform laws which foster healthy, sustainable partnership and growth. The Governor also reminded the group that economic development is grounded in the creation of a product, adding value to that product and then selling it. Making his point that economic development is not gambling, he received strong applause.

I have always been told to begin with the end in mind, and sharing insight into that effort were key note speakers Peter Hart and Frank Luntz. As a leading pollster and public policy expert, Mr. Hart has a legacy of shaping trends and is noted for representing 40 United States Senators and 30 governors. Frank Luntz has been named the “Nostradamus of Polls” and is one of the most honored communications professionals in the country. The end that we should have in mind here is having our chosen candidate win the election. To insure that outcome, we must first step back and understand the mood of the country. As I have written here before, you can not lead where you will not go, and you need to know where you want to end up. According to Hart and Luntz, there are some important feelings a float out here, and now is the time to take note.

Turning on the news you are certain to hear about the oil spill, health reform and the occasional story about Lindsey Lohan, but polls show that the issues of importance are really jobs at 55%, energy and oil at 38%, and a big desire to cut government spending at 29%. Healthcare only hits the radar with 19% stating that it is a key issue, and 44% of those are not happy that Healthcare Legislation has passed. There are a multitude of concerns floating out there that have the attention of the voter base. Think about the 36% that feel the recession will persist another 2 years, or the 33% that are concerned that they may loose their job. If you factor in immigration issues, it begins to get tough to see the end at all.

The mood is very anti-incumbent with 57% favoring someone, anyone, new. About 50% just want a third party and to start up fresh. So many issues, so little time, but one thing is certain, the needle on the magnet is starting to polarize in a big way toward the independents. Just who are these 23% of party neutral new voters? The Holy Grail of voter this year is the highly coveted disenchanted independent voter. Is that you? Even more key, are you the coveted disenchanted independent who is pro-business? Not sure what good pro-business policy looks like? You can find some strong pro-business direction by going to www.bcatoday.org where they weigh in on tax policy, right-to-work, public education, environmental and energy legislation, and common sense health reform that will take care of current problems and not create new ones.

Where is Paul Revere when you need him for a call to action? What we need now is a call to become an informed voter for once and for all. Don’t mark that box or pull that lever or hang that chad until you do a little open minded research on your candidates. And if you don’t vote, for goodness sake, don’t complain.

Remember, stay informed to better take care of your customers, or someone else will.

The next meeting of the Fultondale Chamber will be held for lunch on August 24th with Logan Hinkle, Attorney with Burr and Forman presenting on Health Reform Legislation and how to prepare your business for the impact. Location and sponsorship by the Comfort Suites in Fultondale. Logan is an Adjunct Professor at Cumberland School of Law and teaches a course on ERISA and Employee Benefits. Good Stuff. Please join us. Email to visemedical@bellsouth.net

Sunday, July 11, 2010

Does Your Reputation Create A Competitive Advantage?

If I ask you to list elements of your organization that make it competitive you would probably list your product, your sales team, your education, your leadership strategy, maybe your pipeline of products, or your longevity in the marketplace. What about your reputation though? The idea of reputation as a competitive advantage is a fairly new market consideration that has been born in the times of market frustration with governmental and corporate mistrust. We have discussed here previously that marketers are waking up to the awareness that trust is a perishable asset. Distrust of corporations is at an all time high, and that is not good news. “Trust is what drives profit margin and share price,” says Larry Light, consultant veteran with McDonald’s. It is what consumers are looking for, and share with each other.

Typically companies would be categorized into one of several types such as banking, pharmaceuticals, retail, fast food or medical. The goal is to carve yourself out from the category in which you find yourself. It is important to not be one of the masses as a large, faceless entity, but rather to be a distinct company with your own creative presence, personality and REPUTATION. The primary way to keep your organization from moving toward being perceived as a commodity where your market is based only on price is to succeed in building a positive reputation. A positive reputation will allow you to sustain premium pricing. A strong value proposition that includes a good reputation for quality and innovation will allow a company to charge and price goods accordingly.

How do you do this? Transparency in executive pay as well as company performance and responsibility is a good beginning. A strategic effort toward creating a more socially responsible face is key as well. Customers are watching and they are looking for a more altruistic and ethical corporate face. In fact, there is an evolving reputation-monitoring science. Companies appraise a reputation not only on specific values such as trust, esteem, admiration and good feeling but also how the company engages its stakeholders. Yes the products and services are key, but they are evaluated not just in quality but also on innovation, workplace governance, sense of citizenship, and leadership.

. According to BusinessWeek (July 2007), “Sure it looks great to tell the world about your innovative culture or that you are the greenest company, but does this really move the needle with your target customers and investors?” How does reputation effect the bottom-line? While this is early science, a few general connections have been found. The Reputation Institute (Singapore, December 2004) has found that a 5% positive change in reputation translates into a 3-5% change in market capitalization. Indeed, according to the Edelman Trust Barometer in 2006 quality, customer service and strong financial performance drove trust. After the financial meltdown that we have been through it is little surprise that financial performance dropped to number ten on the trust list. The top drivers for corporate trust in 2010 are transparency, honest practices, and high quality products.

Whether you are an AIG or a Ford, a local grocery store, or a neighborhood salon, take a look at the loyalty factor of your employees. Employee loyalty is the only way to insure the health of your reputation. We can not assume that employees are grateful for dodging the last downsizing bullet. With corporate loyalty down, it is not surprising that customer trust is down too. Sylvia Ann Hewlett writes in the Harvard Business Online to “Go Pro Bono to Rescue Morale.” Corporate involvement in philanthropy can help polish your brand and hold on to top talent. As we have written here previously in the Top Ten Ways to have Great Customer Service, you need to partner with your customer in something bigger than just your sales model. Pick a project with your employees and customers in a philanthropic endeavor as a tool to recreate that positive energy that may be dwindling. There are many advocacy groups with direct impact on your bottom-line. Now is the time to roll up your shirt sleeves, jump in with your team and customers and help out.

Public Speaking for the Rest of US

Most people would rather do most anything than give a speech in front of a group. According to The Book of Lists, public speaking is the foremost fear in the world ranking higher than bugs, heights, deep water and even death. For some it just seems to come naturally, but for others there is drama, fear and ultimately brain shut down once in front of a group. Here are some ideas on preparing for the ultimate presentation, whether it is for your work, your church or that big conversation over the dinner table where all big decisions are really made. And remember, fear is a great motivator. To overcome your fear, you should take the time to know more on the topic than you need, practice, practice, practice, and find a way to connect wit your listener.

According to writer and speaker Dorothy Leeds in her book PowerSpeak, here are a few keys to breaking through the first gauntlet for great public speaking: FEAR

1. Admit your fear
2. Tap the energy that the fear produces
3. Recognize that fear is normal
4. Realize that your fear does not have to show
5. See yourself as a powerful speaker
6. See your audience as an ally
7. Speak about something that you care about
8. Combine preparation with practice
9. Devise tricks to psych out your fear (pretend everyone is in their underwear as Winston Churchill would do)
10. Don’t beat yourself up and keep it positive

We all have personal and professional goals, but one of the best recommendations from Leeds book is to make controlling your fear of public speaking a professional project. If you are good at anything from riding a bike to flying a plane, you had to practice and overcome a fear and public speaking is no different. So get out there and find ways to create opportunities to practice.

Poor speakers appear unclear of purpose, unorganized, and may be just too wordy. The audience comes away with that painful, bored to tears look on their face, or worse uninspired to act. Getting better is a lot easier when you realize what good really looks like, so find a mentor or someone to listen to you practice. Here is a note of caution to anyone who wants to listen, and that is DON’T GET YOUR MOM OR SPOUSE to watch you practice for the purpose of critique. What you don’t need is someone to tell you “You did great Honey!” The exception here is my husband who I require to tell me at least one thing to do better or differently. You want someone to really challenge you, to ask you what you think you can do better or differently and really make your speech or talk believable and interesting.

Lastly, take the time to really think and brood over what you want to say. Again, according to Leeds book, Abraham Lincoln was a notorious brooder, but as history shows, it truly paid off. Lincoln would think on his speech for days and keep little notes tucked into his hat. Up until the last moment he would ponder and polish, and now we know “Four score and seven years ago…….”