Productivity


7
Nov 09

Sandbagging

http://www.flickr.com/photos/chaimann/ / CC BY-NC-SA 2.0

A few weeks ago I took my car to the dealer for an oil change and the clerk promised it would be ready in about 1 ½ hours. Once the car was ready, he presented me with a questionnaire which asked, among other things, if the car was delivered within the promised time frame. The answer was yes, or course, but the promised time frame was 1 ½ hours, or about 1 hour more than it should really take. Sandbaggers.

Four years ago, after hurricane Wilma hit South Florida, FPL advised us that full restoration of power could take four weeks. Eighteen days later (ahead of schedule, of course) full power was restored. Sandbaggers.

Perhaps the ultimate sandbaggers are Wall Street guys, who insist they deserve bonuses in spite of piling up billions of dollars in losses (because if it weren’t for them the losses would be much greater, of course). Sandbaggers.

Setting low ball goals breeds a culture of complacency and underachievement. Setting two types of goals, regular (easy) and stretch (hard), is also counterproductive, because it allows us to claim victory even if the stretch goals are not achieved.

Every goal should be a stretch goal. Stretch goals should be hard, but achievable, and should require us to exercise creativity and effort above and beyond the call of duty. If you want to instill a culture of performance, always set stretch, ambitious goals and give people the guidance, tools and support to achieve them.


13
Sep 09

Are you rewarding your most profitable customers?

Photo Credits: Kevin H
I recently went online to buy a couple of tickets for a show and got slapped with a $7.75 per ticket “convenience” charge. If I had bought the tickets at the theater’s ticket window I would have avoided the convenience charge.

That episode let me thinking: who’s convenience are you really paying for?

Let’s see: by ordering online you do all the work (you don’t need an expensive human to interact with you), and the theater receives your payment hassle-free through your credit card company. If you buy from the ticket window, on the other hand, the theater has to pay an employee for several days, balance the cash register at the end of each day, deposit cash payments in the bank, etc.

Yet, those who buy online are the ones paying the convenience charge…

Why is that so? I think it is in part because most people still consider buying from the ticket window the normal thing to do-the way things have always been. It is probably for that same reason that banks are still reluctant to charge customers for conducting business through a teller, but instead have no problem charging outrageous fees to those who get money through an ATM. Without going out on a limb, we could also argue that governments act the same way when they decide to raise taxes instead of finding ways to spend less and more productively.

For those who apply that logic, in the short term everything looks fine: convenience charges increase the theater’s revenue per guest, banks can “invest” the ATM fees in expensive lobbies and nice desks for their officers, and government bureaucrats can get easy money to finance ineffective social programs.

In the long term, however, things won’t necessarily look that good. Theater operators may start to wonder why are there so many empty seats, traditional bankers may finally start to pay attention to those pesky online banks that are stealing their business, and politicians may soon find out that the same people who pay their salaries can also boot them out of office.

Businesses should use pricing to reward the most desirable customer behaviors.

If a customer interacts with you in a way that reduces costs and results in a more efficient operation, that behavior needs to be rewarded. For example:

  • You could charge less for an ebook than you do for a real book (which requires paper, ink and complicated logistics).
  • You could offer free shipping to those who increase their order size.
  • You could offer a discount to those who put your service on automatic payment or pay you in advance.
  • You could give a better price or an internet-only freebie to those who purchase from you online.
  • Etc.

Incentives drive behaviors. Make sure you reward your most profitable customers.

What’s your take?


28
Dec 08

How To Do More With Less

multitool.JPG
Photo Credits: Thom Erickson

In this tough economy, amid the layoffs and budget cuts, you’re probably tired of being told to “do more with less”. The phrase has become such a cliché that it may very well belong to a dictionary of corporate B.S.

The solution, however, is not to “work harder” at doing the same things, but to renew our focus on the things that are important-that 20% of our actions that Pareto showed us produce 80% of our results. The idea is not to “do more”, but to “accomplish more” with less.

Before doing anything, spending any resources, or hiring anybody, stop and ask yourself these questions:

  • It this action or expense directly tied to my business mission?
  • Is it consistent with my business strategy and brand positioning?
  • Will it help me achieve my goals for the year?
  • Have I strengthened my business systems? Have I automated everything that can be automated? Am I building a scalable business? (If the answer is no, this is probably the right time to read or re-read Michael Gerber’s The E-Myth.)
  • Have I examined each and every one of my business processes under a Kaizen point of view? Have I identified those small improvements that I can make to my processes so that together they make a big difference?
  • Existing customers are more profitable, especially in tough times. Have I taken steps to make sure they are treated extra special?
  • The customer is not always right. Some customers are just a waste of time. Are you ready to fire those customers that don’t contribute to your bottom line?
  • Are you doing a simple ROI (return on investment) analysis for every dollar you spend? Some necessary branding and personal development activities may be hard to quantify, but pretty much everything else should pass the ROI test.

What else can you do to make 2009 your best year ever?


5
Mar 08

Meetings

meeting.JPG
Photo Credits: LeeBrimelow

Some time ago I talked about three common Internet marketing time wasters. Most office workers, however, seem to agree that the biggest time waster in business is found in the offline world: meetings.

After almost twenty years in the corporate world, I’ve been thinking long and hard about why most meetings don’t work. Here is my stab at the most common reasons:

1. A meeting is called just to present facts

People gather around a table to watch the presenter show slide after slide of tables, graphs and assorted data. If the only purpose of the meeting is to share data there is really no need to meet. It is enough to send the participants the document as an email attachment.

2. Meeting are too long and costly

I have yet to attend a meeting that is too short. More often than not, meetings run well beyond their alloted time. With better planning meetings can always be made shorter. If companies were required to calculate the cost of having a meeting beforehand, most meetings would not even be called.

3. Not everybody is cut out to do presentations

While speaking in public can certainly be learned , some people just hate to speak in front of others . They usually resort to mechanically reading the slides, while participants disengage and the quality of the meeting deteriorates.

While some people within an organization can be excused for not having the confidence level or the habit of speaking publicly, top executives (and especially marketing and sales professionals) should be able to give good, engaging presentations.

As they say, “there is no such thing as a boring subject, only boring speakers”.

4. Slides sometimes stand in the way of effective communication

The use of PowerPoint slides is so widespread that it has become the default presentation format.

Unless the presentation is truly engaging, the presenter and the audience end up spending more time staring at the screen than making eye contact, asking and answering questions, and reading non-verbal cues like body posture that may give a clear indication of how well the meeting is going.

Sometimes I believe that meetings would go better if the presenter would just turn off the projector, sit at the edge of a table, and have the courage to completely change the pace by saying something like: “OK guys, let’s do this a little differently: what are the three things you would like to get out of this meeting?”.

5. The quality of a meeting is inversely proportional to the number of attendees

There are usually too many people in any given meeting. Some people believe that the more people are invited, the more important the meeting. In other occasions, people are just invited out of courtesy, or out of laziness and lack of planning (let’s invite everybody, ‘just in case’).

6. Some participants tend to go out on a limb

Our country is obsessed with political correctness. When it comes to meetings, we’ve been conditioned to believe that everybody’s opinion is important, that all feedback is positive, and that there are no stupid questions.

Unfortunately, some people are not qualified to give an opinion, feedback can be irrelevant to the subject matter being discussed, and yes, there are stupid questions.

This article in 37signals puts it more eloquently: “[meetings] often contain at least one moron that inevitably get his turn to waste everyone’s time with nonsense”.

7. The subject of the meeting is irrelevant to the audience

This happens often in conference calls and sales meetings. Usually, an employee belonging to a certain sales region or function is required to present his part, while employees from a different region or function sit by waiting for their turn to speak.

This kind of meeting can be easily replaced by a series of one-on-one reviews between the presenters and their supervisors and/or other interested parties.

Most articles I’ve read about meetings focus on how to make a meeting more productive (have an agenda, keep track of time, draft and distribute minutes, etc.). While those things are important, the question that needs to be answered first is: Is this meeting really necessary?

In other words, before we worry about making a meeting efficient, we need to decide if having a meeting is the most effective way to achieve the desired outcome.

IMHO, there are only three valid reasons to have a meeting:

a) To brainstorm
b) To make a decision
c) To sell an idea to a group of people

If what we want to accomplish doesn’t fall into at least one of these three buckets, there is likely no reason to have a meeting.

To finish, I’ll let you watch this really funny video, that touches on some of the topics discussed in this post:


How To Avoid Meetings That SuckCelebrity bloopers here


30
Jan 08

What We Can Learn From a Blog and a Coffee Shop

coffeeshop.jpg
Photo Credits: JasperYue

A coffee shop in San Francisco has a problem: they need their tables free for the lunch rush hour patrons, but they’re taken by people with laptops who linger along taking advantage of the free wi-fi.

A young and extremely popular personal finance blogger, who frequents the place, writes a post asking his readers how would they solve the coffee shop’s pressing problem.

In a matter of hours, there are more than thirty comments with all kinds of suggestions and ideas. People of all backgrounds living in many different places took the time to think the problem over and write a paragraph or two of what they think should be done.

Now, how many focus groups and how many thousands of dollars would it have taken for the coffee shop to get the same kind of valuable insight only a few years ago? These days, all it takes is a popular blogger with a smart and engaged audience, and the same kind of valuable information can be obtained for free and in a matter of hours.

You’ve got to love the social web sometimes…


17
Nov 07

Your Elevator Pitch and How to Leverage It

Creating your brand starts by defining the one thing you stand for in very few words. You need to create an elevator pitch that is shorthand for your brand’s value proposition. Your elevator pitch is your promise to deliver.

Coming up with an elevator pitch is not easy. It takes discipline and focus, and it involves answering four basic questions:

  • Who you are?
  • What you do?
  • Why are you the best?
  • What is your call to action?

Once you answer these questions clearly and confidently you’ll have a blueprint that will guide all your branding efforts.

To create your elevator pitch go to 15SecondPitch.com and follow the wizard that will take you through the process.

Once you’ve created your elevator pitch, you can leverage it in your Internet and social media marketing programs. Your elevator pitch can easily double up as:

a) Your resource box in articles you write for free syndication (don’t forget to add your website address).
b) Your profile in social media sites and social bookmarking services.
c) The text in the About Us page in your site or blog.
d) Your email signature file tagline.
e) The meta-description tag of your home page

An elevator pitch is also a great way to introduce yourself in networking events.