“More than half the companies on the 2009 Fortune 500 list were launched during economic downturns.”— “The Right Stuff,” by Alexander Stein, Fortune Small Business, September 2009, page 27.
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“More than half the companies on the 2009 Fortune 500 list were launched during economic downturns.”— “The Right Stuff,” by Alexander Stein, Fortune Small Business, September 2009, page 27.
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My neighborhood gang grew up together in a highly urban environment. We were all poor, so no one noticed. (Later, out teachers would describe us as “lower middle class,” which was charitable, at the very least.)
Store owners treated us like the dirt we tracked into the stores. Even though we had some spending money, we were always suspect and never invited to stay. And these places weren’t outlets of Bergdorf’s or Nordstrom’s. One was nicknamed, “Filthy Phil’s,” just to give you the mis-en-scene.
But then a retired man named Bud took over one of the soda shops. He installed pin ball machines in the back, which we could play for a nickel. Large glasses of Coke were ten cents, and a chocolate-covered donut the size of my head was a quarter.
(Digression: We had chocolate, drank sweet drinks, played in the street, ate candy that was pure sugar, some of kids smoked, there were roaches and rats around, and very few vaccinations. Somehow we all grew up, most of us are alive, and just a couple still in jail. Sometimes, listening to the “experts” in the media, I would think that any kind of empirical validity test of their theories would demonstrate that no child ever grew to adulthood prior to 1980 or so.)
In most places, the soda was likely to be warm, out of the fountain. But Bud provided ice. “Wait,” we cautioned at first, “what’s the price of the ice?” After all, cold wasn’t worth the loss of a pinball game or donut.
“The ice is free,” he said, and we looked at each other as if we had found the biggest patsy in the world. Only about a year ago did I realize that the ice filled up (with frozen water) a large part of the glass which would otherwise hold product. We were ecstatic at the time. In retrospect, it seems so was Bud.
He would encourage us to stay, so long as we purchased something if we sat at the counter or tables. He didn’t put a strict time limit on us, but would remind us. Occasionally, we’d get something “on the house.” (One of the three pinball machines was relatively easy to win on, and we were surprised Bud didn’t replace it. I have since realized this was another stratagem.)
None of us wanted to be thrown out of Bud’s, and banishment was unthinkable. The gang hung out there. So we were careful, especially with Bud’s adult clientele, and managed a fine symbiosis.
Bud knew a great deal that people today don’t seem to fathom. The customers want to perceive they are getting a good deal. They’ll conform to reasonable requests in order to perpetuate their good deal (e.g., timely payments, no returns). Above all, they want to be treated like assets and valuables, not like expenses and distasteful interruptions. We always gave Bud the benefit of the doubt when he had to close early or was out of stock of some cavity-inducing candy.
I’m sure Bud has passed on to greater rewards. It’s a shame. I think he would have done wonders running GM, or my soon-to-be-former dry cleaner, or United Airlines. I’m suspecting that Filthy Phil may have had something to do with those.
© Alan Weiss 2009. All rights reserved.
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Here is an excerpt from a letter being sent out by the attorney who handles my litigation (this is used with his permission). I think you’ll find it fascinating and, let us say, ahead of the profession’s curve. While it’s not purely value based, it’s a huge step in that direction. (Tony is a great attorney, if any of you need such services.)
To: Our Clients
Re: Alternative Billing Program
Beginning on September 1, 2009, we will offer our clients an alternative billing program based on fixed charges for designated services, projects and cases within our areas of professional competence. At the same time, we will continue to offer conventional hourly billing where it may be preferable. The purpose of this memorandum is to discuss the new program.
While there are many criticisms of the widespread practice of hourly billing by lawyers, perhaps the most troubling one suggests that the practice tends to reward inefficiency. Lawyers, this criticism contends, are encouraged by the hourly billing system to take more time than is required to complete a task and to extend the duration of a case or project longer than circumstances warrant. Even in those instances where the client is confident that his or her lawyer is using time prudently and efficiently, there is nevertheless the concern that hourly billing places the cost of legal services beyond the client’s control and prediction.
Hourly billing can be unsatisfactory from the lawyer’s perspective as well. To the extent that it provides early, favorable resolution to the client’s problem, hourly billing offers no financial reward for doing so.
Of course, no billing method is perfect. Alternative billing, for example, is likely to engage both client and lawyer in more frequent discussion of fees—indeed, in the uncomfortable and time-consuming business of negotiating fees. In addition, since alternative billing is based on a prediction about the fair charge for the work yet to be undertaken, it will sometimes miss the mark and charge more or less than it should. Despite these and other shortcomings, however, we think it best to make non-hourly billing available to those of our clients who wish to use it for some or all of their work. In the end, we believe that alternative billing will find its way to its most appropriate uses.
Anthony F. Muri
MURI ASSOCIATES LLC
10 Weybosset Street
Providence, RI 02903
401-421-7300 (Voice)
401-421-7352 (Fax)
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I love people who tell me they are hosting a radio show or a TV show. That almost always means they’ve allowed their ego to be captured by some wise guys who are charging them to “host their own show”!
In an electronic age, why not spend nothing and be more effective than poorly appealing to an irrelevant audience that really isn’t there? Here are nine steps to killer email:
1. Use your own list of people who know something about you. Don’t purchase “stranger lists” if you are trying to sell consulting services, which is what I’m talking about here. A small, quality list is always better than mere quantity.
2. Create a great subject line. “Special offer” is not as good as “Unique opportunity” or “Five ways to attract talent that most people are missing.”
3. Personalize the opening and make it immediately enticing: “Jane, you’re a respected professional and valued client (friend, professional colleague, etc.), and I’ve thought of something that makes great sense for your career (profession, company, plans, etc.).
4. Offer real value, but simply. Provide a quick list, explanation, idea—something to show value in the early going.
5. Don’t send them away or make them work. People are not going to follow links, and may not even open attachments. Stick to a brief email.
6. But have a call to action on your part or theirs. I prefer that you follow up with them. Tell them you’ll be calling at a specific time on a set date (and invite them to respond if they prefer another time). When you call, say that “I’m calling as promised.”
7. Spread it out. If you have a list of, say, 50 people, send out ten every other day. Don’t make it onerous on yourself, and give yourself time to make the follow up calls. This also allows for personalization and will greatly increase the tendency to read the message.
8. Include a brief testimonial. “Jim Smith at Sigma Engineers said that he was overjoyed that I contacted him about this, and has already found two new people with no fees. You can reach him at….”
9. Keep tinkering. As people respond, eventually ask what was key in the email to make them amenable, and constantly improve the content and format as you hear patterns.
© Alan Weiss 2009. All rights reserved.
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Here I go again, trying to bring some optimism and positive techniques to the economy and consulting services. By the way, it was recently mentioned in the Wall Street Journalthat Europe will recover much more slowly than the U.S., which should be better days as early as the start of next year.
Consultants Newsreports in its June 5 edition (Kennedy Information, Peterborough, NH) that “…a large number (of consulting) firms said they have stepped up marketing and sales efforts to support top-line growth.”
In the June/July Business Week SmazzbizMichael Porter is cited (page 47) saying, “Those companies that ramp up capacity will be able to gain market share. Much larger organizations won’t be able to meet the demand because they’ve downsized and outsourced.”
Tell your clients as well as yourself that these are the times to invest in themselves and their near-term future.
© Alan Weiss 2009. All rights reserved.
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I know it’s unfashionable to report good news, but someone has to do it.
The stock market is hovering around being in the black for 2009.
Government indicators are cautiously positive on trends in unemployment, housing sales, and trade. That is, things aren’t as bad as feared, or are slowing their slide, or are actually stabilizing.
Of course some things never change. Insurer AIG, after a mega-massive government bailout, is now stonewalling over paying property and medical claims to the passengers on the US Airways flight that ditched in the Hudson River. You just can’t make that stuff up. And banks, themselves the recipients of massive tax payer funding (some of which are proudly claiming they are starting to repay the loans) are still not providing mortgage loans and consumer credit.
Nonetheless, as I’ve been suggesting, the inevitable rebound will be sooner, not later, and economists in the Wall Street Journal this morning are starting to talk about early 2010 as the time of improvement.
Last night the coauthors on my newest book, “The Power of Strategic Commitment” (Amacom), Gershon Mader and Josh Leibner, threw a huge launch party at The Campbell Apartments in Grand Central Station. They invited clients, friends, and press, and taped a great deal of the proceedings. They understand that you invest in marketing and promotion, and that you don’t grow through cutting. Their clients clearly understand that, as well. We all had a great time.
The guy who coauthored my very first book, “The Innovation Formula,” is Mike Robert. He used to say to anyone who would listen, “If you had a dollar left, would you feed your family for a day, or invest it to market yourself so that you could feed your family forever?”
What investment are you making in optimism, courage, growth, and most of all, yourself? Not just for now, but forever?
© Alan Weiss 2009. All rights reserved.
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I’ve published here previously research done by McGraw-Hill underscoring the wisdom of investing in promotion, development, and so on during a recession, and why such companies outperform those which hide under a rock. Thanks to Mark Smith, a member of my Million Dollar Club, here is another great article from The New Yorker on the topic, and why Kellog out-cerealed Post, among other fascinating examples:
http://www.newyorker.com/talk/financial/2009/04/20/090420ta_talk_surowiecki
You ought to be citing these resources to your clients who claim it’s a bad time to invest. They’re afraid of wrecking the boat, but in the meantime they’re missing the boat.
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It’s astounding to me how much consultants spend on marketing that not only need not be expended but is pretty useless, and how many simple, inexpensive activities with high impact are ignored.
Interested in reading on?
Here are examples of wasted time and money—poor ROI:
• Third parties who claim to market you or include you on some list or site. These people simply make money from your subscription or membership, and besides, this is a relationship business, not conducive to selling through lists. Would you buy services this way? Many of these groups make outrageous claims, have shills give testimonials, but can be found on various “rip-off” web sites where victims tell the tale. Do you choose a doctor or attorney from a list, or from personal references and having heard that they’re good?
• Search Engine Optimization, the mythical “SEO.” The people making money here are the ones helping you to achieve SEO. In the consulting business, buyers don’t troll the Internet searching for consultants or key words. They act on word-of-mouth and reference, and use your web site to investigate your credibility and expertise. You’re not selling toasters or time-shares. Save your time. Web site “hits” are irrelevant. You only need one good hit.
• Long hours on social media platforms. I’ve written about this here recently: http://www.contrarianconsulting.com/what-price-glory-orcan-we-get-some-air-in-here/. I don’t care about the exceptions who “claim” they are doing six figures on Linkedin. If you are a consultant working with corporate clients and prospects, that’s not where to spend marketing hours (I don’t care how many leisure hours you spend there, it’s your time). I’ve found utility in social media platforms, but not in place of far more effective marketing pursuits.
• Indentured servitude in return for “exposure.” When you work for free or peanuts, people often learn of your arrangements. You’re also clearly seen as a performing seal—you’re there to please the crowd on behalf of someone else.
• Self-development programs with people who do nothing but self-development programs (usually featuring multi-page letters of benefits, testimonials, and “money back” guarantees). Has the person who will be in front of you actually done, personally and successfully and continually, what you want to learn to do better? Or do they merely provide advice and coaching or, worse, are a representative of someone providing advice and coaching?!
Here is what you can do to thrill people with your marketing and achieve huge ROI:
• Return your calls and emails properly. If you can’t call or write back because you’re currently with a client, or traveling, or on vacation, or whatever is consuming your current attention, that’s not great focus, that’s a learning disability. Simply get back to people quickly and you’ll not only start the relationship process earlier, but they will get an idea of how responsive your are. (When I used to routinely call people back from Hong Kong, they were astounded. The call cost about $20. Calling back from a beach in St. Barth’s, believe me, is not a hardship.)
• Orient your marketing materials toward the client, not you. Your credentials and methodology are unimportant. How the client is improved is important. Do you have case studies, typical client results, and a buyer-friendly web site, collateral, and conversation? Do your testimonials talk about how great you are or how great the client results are?
• Learn business etiquette. In the Million Dollar Consulting® College I’ve often had a segment on social etiquette. In the preparatory work, participants would remark, “I have no needs in this area,” and treat the session lightly. Then they would use the wrong bread dish at dinner and hold their knife as if playing a role in “MacBeth.” Buyers can be turned off when you act as if you’re new in the big city.
• Learn the language of the sale. Use language correctly, confidently, and cogently to turn aside buyer objections and focus on the next step in the process. It’s really that simple. Influence is about language. Language controls the discussion, the discussion controls the relationship, and the relationship controls the business.
• Associate with people who ARE master marketers, and with whom you can see the evidence to support this. Don’t copy them, but do appropriate the techniques that work for you (so long as you don’t plagiarize or steal). There are people out there obtaining great consulting business right now. Why them?
Why not you?
© Alan Weiss 2009. All rights reserved.
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Too many consultants are thwarted when the buyer says, “Sounds interesting, I think you should talk to our human resources director (or training manager or whatever).” That’s not the time to ask directions to the HR department, but to say any of the following:
1. I’m happy to do that. In my experience, I often hear ideas and intent not consistent with your own. So it’s very valuable to debrief on my meeting. What’s the best date and time to schedule our getting back together?
2. This is a strategic decision, not something that HR has the means or capability to decide. They need marching orders on this from a comprehensive business perspective, and that can only come from you.
3. If they haven’t been able to address this issue internally yet—and obviously they haven’t or you wouldn’t be talking to me—why is it useful to involve them at this stage?
4. They are the executors and implementers for a portion of this, and I’m happy to work with them at the proper time. But right now we’re formulating what the project should achieve and look like.
5. If this is perceived as an “HR project,” it will fail. This must come from line leadership, as initiated and supported by you. It’s your team.
6. Every HR department has credibility problems, political preferences, and certain blind spots in terms of the daily operations. It’s not a good idea to burden a new project with those liabilities.
7. I guarantee you that HR will tell you to delay, study, and otherwise make this project more complex than it needs to be. Let’s tell them what to do to ensure efficiency and effectiveness.
8. Anything you try to do through HR will wind up to be more expensive, more time consuming, less credible, and include two dozen of the latest fads, academics’ books, and buzzwords. People will recoil from that, or see it as “this, too, shall pass.”
9. Does your HR leadership regularly sit in on your senior meetings with your team, with policy initiatives, or with strategy formulation? If not, then they would be dysfunctional participating in the formulation of this project.
10. I deal with the person who has the fiduciary responsibility to make investment decisions and evaluate ROI. Ethically, I need to understand your expectations to ensure that I can help to meet them and to ensure they are reasonable. Those needs and this relationship cannot be delegated to a third party.
You cannot name for me, in the last ten years, ten human resource executives promoted directly to CEO positions in Fortune 1000 firms. You can name line vice presidents, actuaries, general counsels, CFOs, COOs, and myriad others. There is a reason for that. Don’t go there.
© Alan Weiss 2009. All rights reserved.
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For those of you dealing with clients and prospects loath to invest “until times are better,” here is a link to research done on the wisdom and results of investing during the early 80′s recession which may be of great use:
Innovating through Recession: When the Going Gets Tough, the Tough Innovate
by Prof. Andrew J. Razeghi, Kellog School of Management
located here:
search on McGraw to quickly find the reference in the paper on page 6.
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