Keep Those Water Cooler Conversations Under Control

With the national landscape swiftly changing, even the "water cooler" discussions about the prior evening's television-viewing have heated up from rehashing season premieres or the weather to highly-contested political debates and controversial government bailouts. Rich Masters, a specialist in teaching people how to prepare for televised talk shows, has several suggestions for keeping a cool head during these possibly heated discussions.

• "Zing it!": Have one or two "zingers" ready, quotes that can help you break the ice or clinch the conversation. Think like Jon Stewart...have something amusing and memorable to add to the discussion that supports your argument.
• "Don't Squawk Alone": Having someone like-minded to "jump in" gives you a chance to collect your thoughts.
• "Give in-- a little": Don't be afraid to concede a smaller point to win the larger argument. Besides, being agreeable can throw your opponent off-guard as well.
• "Stay Calm and Polite": As Masters explains, "If you are smiling it will leave the person with a positive impression." And luckily they cannot hear your thoughts.

Remember, injecting humor into a situation with a pithy saying or a witty retort, maintaining relationships with like-minded people, being willing to concede on the small stuff, and remembering to take conflict in stride will help you maintain relationships as you build a stronger business.

Are You Watching Your Numbers?

In the post-dot.com and post-Enron era, one would think stock inflation had been outlawed altogether. But according to the article “Soft Numbers” in The New York Times Don Durfee’s research in CFO magazine tell a different story.

Durfee reports that more than half of chief financial officers say they can legally influence reported earnings by 3 percent or more.

“When presented with various scenarios in which their companies would either beat or miss analyst expectations, a third of respondents said they would try to influence the results,” notes Durfee.

“If your percentage of sales uncollectible could fall anywhere between 2.1 and 2.5 percent with equal likelihood, you might choose 2.1 percent if you wanted to increase your earnings,” says Michael Peters of Villanova University School of Business. Peters helped survey 743 senior finance professionals worldwide, along with Rich Houston of University of Alabama and Jamie Pratt of Indiana University.

Finance chiefs don’t believe many auditors would report any manipulations, even if they caught them. Every company must ultimate make their own decision about ethics policies. But decisions made for short-term gain can have long-term repercussions. Keep that in mind as you work towards building a stronger business.

Without Outside Feedback, People Tell Themselves Strange Stories

It's all too common (and easy) for us to criticize leaders in government and industry for their shortcomings and missteps -- and sometimes they give us ample ammunition!

Of all of the recent talk about President Bush's nomination of Harriet Miers for the supreme court post that I find most interesting is that on his selection process. Both conservatives and liberals hark on the limited pool that President Bush drew from in selecting Miers.

What's remarkable about this line of criticism is that they're right about the distortion. And that we do the same thing to ourselves more often than we realize.

Here's an example. 74% of Americans believe that they're above average drivers, according to a 2003 survey by the Journal of Safety Research.

Doesn't that strike even the most mathematically challenged among us as being slightly off kilter?

Only 1% of those surveyed believe that they're below average drivers.

To build a stronger business, we must take a hard, honest look at our current situation -- our customers, our finances, our communications, our marketing, and so on -- and that's easier to do cleanly with expertise that is not part of the company culture that we've created.

I know the truth in this from working inside a Fortune 100 company, as a entrepreneurs who's hired outside lawyers and accountants, and as a consultant to business leaders.

How about you? What are your perspectives and experiences with outside feedback?

Trusty Texting

The article “All E-mail (All the time),” from Inc. illustrates the pervasiveness of Email in the workplace. Alpine Access is a company where employees are based in their homes and conduct business by phone and e-mail. Here are some principles that govern their interoffice email protocol.

• Clarity is everything —important messages need to be carefully vetted for style, grammar and nuance before they’re sent.
• Trust but verify — employees are required to acknowledge receipt of e-mails. Managers constantly check back to see that employees are in the email loop and not missing any messages.
• Know when not to type —e-mail may be a great convenience, but for sensitive issues like work appraisals or conduct issues it’s far better to have a face to face meeting or a phone conversation.
  

Understanding the best way to use email across your company can help you build a stronger business.

Win More Business by Sharing the Risk

Motivating customers to buy your product can be the biggest challenge for a company trying to build its business. Inc. article, “…Or Your Money Back?” shows readers how they can transfer the risk of a transaction from their customers to themselves.

That’s the strategy Matthew Smith enlisted to develop his Shoes for Crews business. He offered to pay workers’ compensation claims to give peace of mind for managers concerned about injuries and workers compensation. It was too attractive an offer to resist and nine of the 10 largest restaurant chains buy the shoe brand or actively encourage their employees to do so.

Initially Smith put a $500 cap on the warranties but that was extended to $5000.

Introducing the warranty had an enormous impact on Smith’s business. Sales of his $25 to $75 shoes multiplied and he was able to secure impressive contracts with large companies.

Here are some suggestions for warranty offers:

• Test your warranty offers on a handful of key accounts.
• Do exactly what your warranty pledges you will do.
• Fulfill your promises and clients will return.
  

By figuring out a way to minimize your customers’ risk, you can build a stronger business.


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Offshoring Not a Panacea for Businesses

Inc’s article “Cost-cutting: Offshoring isn’t Such a Sure Thing,” highlights the downside of using contractors in other countries to reduce work and costs for businesses.

Offshoring may be one way to reduce costs, but companies report that it can cause problems as well as solve them.

A survey by Chicago based DiamondCluster International (now Diamond Management & Technology Consultants) found that the number of executives satisfied with outsourced IT vendors plunged 17 percentage points in 2005 compared with 2004 – the first decline since 2002.

Early termination of relationships between buyers and offshore service providers soared 51% in 2005, double that of 2004.

Delays in resolving customer issues topped the list of reasons for the dissatisfaction with offshoring.

Despite the growing level of dissatisfaction with outsourcing, 74% of participating companies said they planned to increase IT outsourcing in 2006 by reducing their domestic workforce and increasing overseas spending.

Building a stronger business means managing costs and that may mean offshoring. Before you make a move, however, thoroughly weigh the risks involved.

Etiquette for Entrepreneurs

The “Mind Your Manners” article from Inc. reminds us that thinking globally isn’t just a mantra for dealing with supply chains and foreign markets. You also have to be a bit of a diplomat to navigate the sometimes complex waters of foreign protocol.

After all, what’s acceptable in the US may be a grievous deal-breaking faux pas in other countries. All the business acumen in the world won’t save a business deal unless you mind your manners in whichever country your business dealings occur.

Here’s an introduction of protocol tips pulled from Norine Dresser’s updated 1996 book “Multicultural Manners”.

• Business cards: When you accept a business card in Asian countries, writing on a card or shoving it in your pocket is considered insulting.
• Desk etiquette: don’t lean against or place objects on the desk of a prospective Asian client; it’s considered disrespectful.
• Deal-making: In China, Korea as well as many Middle Eastern and Latin American countries, don’t rush the deal. A decent rapport must first be established through informal meetings before the negotiations begin.
• Public displays of affection: in the Middle East it is customary for men to greet each other with a kiss on both cheeks and holding hands between two men is common, but take your host’s lead.
  

Having insight into foreign protocol will win you respect and good sentiments in whatever country you do business, essential to building a stronger business.