Monday Mornings with Madison

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Planning & Strategy

The Business Conundrum of Quantity or Quality?

About 2000 years ago, Roman philosopher and statesman Lucius Annaeus Seneca was quoted as saying “It is quality rather than quantity that matters.” Some 1900 years later, Scottish author and poet George McDonald agreed saying “It is our best work that G-d wants, not the dregs of our exhaustion. I think he must prefer quality to quantity.” Mohandas Ghandi also said that “It is the quality of our work which will please G-d and not the quantity.” These learned men agree that when it comes to work, excellence trumps volume. Less is more.

Yet, the focus of most businesses is to improve productivity, increase output and amplify profits. For businesses, the goal is quantity… more volume…. greater capacity. In the world of work, more is more. That, then, brings us to the age-old argument of which is better: quantity or quality? Is one deal that generates $1 million in revenue and takes six months to close better than 10 deals that close within a six-month period and each generate $100,000 in revenue? They sound like the same thing, but are they really? Is faster manufacturing with more mistakes better or slower production with fewer errors? Should a company do more content marketing (blog posts, articles, press releases, tweets) or fewer but better quality content marketing initiatives? It is a question that business owners, leaders, and managers alike debate. With 2015 just around the corner, it is a good time to consider whether new business goals and plans should focus on increasing quantity or improving quality. Continue reading

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Time Matters

Every business on the planet would like to improve its use of time. As the saying goes, time is money. Better time management means more profits. It is therefore understandable that businesses — which constantly strive to be ever more profitable — are obsessed with time. Saving time. Managing time. Not wasting time. It especially makes sense given that time is the one truly finite resource. A company can hire more staff. It can buy more equipment. It can till or mine more raw materials or recycle old materials. However, no company can make a day longer… or recycle a minute…. or find a new source of time. Once a moment is gone, that moment can never be regained. Scarcity is what makes time so precious.
Managers from Boston to Beijing and from San Francisco to Singapore want employees to better their manage time. CFOs and efficiency engineers crunch every number related to and study every aspect of time management. Called ergonomics, they study their staff’s use of time, calculating how long each task should take and analyzing how each task can be done faster. Employing logistics, execs estimate the time it takes to move a certain volume of products from point A to point B and focus on how to reduce that time as much as possible. Businesses relentlessly measure, count and calculate and apply time to every workplace activity and process. Likewise professionals strive to manage their own time. Just how well business owners, managers, execs and professionals manage time can have a big impact on their success. Continue reading

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Basic Marketing Tips for Startups

As a result of the downturn in the real estate and financial markets beginning in 2007-2008, many professionals changed careers. From realtors to lenders and from developers to appraisers, people left the lending, construction and real estate industries in droves. As the market contracted, many small companies went out of business. However, in recent years as the market has rebounded, professionals are slowly returning to these industries. Many are starting new businesses. Also, the adult children of real estate moguls and successful entrepreneurs see this as a good time to leave the parental nest and start businesses of their own. Moreover, changing market conditions has created opportunities for new businesses that never existed before such as crowd funding and trailer document tracking. For these reasons, real estate, building and lending startups are springing up at every turn.

Even though many of these startups are being led by seasoned professionals, starting a new business can be a challenge for even the most experienced businessperson. It is especially true for any startup on a tight budget which, let’s face it, includes most startups. While professionals launching a business in real estate, construction or finance may have a lot of technical knowledge and industry experience, they may not necessarily have much marketing know-how. Here are some basic marketing tips to keep in mind for any folks starting a new company or expanding their business with a new division.
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The Power of Promises in Business – Part 2

Research by Accenture has confirmed what most smart business people have long believed to be true: broken promises hurt business. Day in and day out, many businesses make overt or implied promises to customers. Often, those promises are intentionally, carelessly or inadvertently broken. In any given year, nearly half of customers have a promise broken by a company with which they do business. Of those, almost two thirds report companies breaking multiple promises. Some industries are more habitual in breaking promises than others.

What is the actual impact of broken promises on business? Logic dictates that broken promises erode trust between the customer and the business. But do broken promises actually cause customers to stop doing business with a company? Is just one broken promise enough to cause a loyal customer to go elsewhere with his business or does it take multiple offenses? Research indicates that this is an area that should be of prime concern to business owners, CEOs, CFOs, Controllers and anyone who is focused on a company’s bottom line. There is a very strong, direct relationship between customer erosion and broken promises.
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The Power of Promises in Business – Part 1

Every day, businesses make promises to its internal and external customers. Throughout the relationship life cycle, from entry level clerks to the top brass, employees at every level of every company make promises to customers regarding work to be done, deadlines to be met, or issues to be resolved. Some of those promises are explicit. “I give you my word….” “Count on it.” “Rest assured, it will be there on time.” Other promises are implied. Implied promises can be just as powerful as expressed ones. Everyone recognizes a commitment has been made when a business advertises that it has “the fastest turnaround times in the industry,” or a salesperson says “I’ll send you that proposal by the close of business today.” There are countless implied promises that a business makes in its marketing materials, sales pitch and customer service.

It is fairly well-accepted wisdom that each promise made ultimately affects the success or failure of the business. Indeed, it is commonly understood that while nothing builds customer confidence and loyalty more reliably than a history of well-kept promises, it is equally held as truth that nothing undermines a business’ brand or bottom line more than a string of broken promises. That imparts a great deal of power to promises… promises kept and promises broken. But is that really true? Do broken promises impact business? Is just one broken promise enough to lose a customer or does a business have to repeatedly break promises in order to impact loyalty? And do broken promises impact all businesses and industries the same way and to the same extent? Just what impact do broken promises have on sales, repeat business, and customer loyalty? Research sheds some light on this commonly accepted yet little understood occurrence.
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The Most Underestimated, Undervalued and Needed Skill in Business – Part 2

Imagine this. An employee has to write a proposal for a prospective client. The proposal is not something that can be copied from something else online or taken from another sample. Now imagine that the proposal goes out to the prospective client, filled with spelling, grammar and punctuation mistakes. In the proposal, the company’s values and services are unclear. How would that employee’s manager feel if he got wind of that document? Embarrassed? Humiliated? How would that proposal affect the company’s ability to land that client? How would that proposal impact that employee’s upward mobility?

Good writing skills are imperative for any professional’s toolbox. In business, there are letters, memos, reports, presentations, company publications, emails, advertisements speeches, press releases, proposals, five-year plans, and so much more which must be written. Each document needs to be clear, concise, grammatically correct, and fluid. Each written piece should engage the attention of the intended audience, fulfill the intended purpose – whether it is to persuade, inform or engage — and conclude effectively. An employee’s writing skills represents the company or organization for which he or she works. If the writing is not professional and clear, it reflects poorly on the company. But good writing also serves other business purposes as well.
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The Most Underestimated, Undervalued and Needed Skill in Business – Part 1

What skill is the least venerated, most underrated and yet most essential skill in business today? Is it the ability to speak clearly and connect with people? No, although it is a vital skill and most people think the best leaders are those who can deliver a rousing, engaging speech. Is it excellent resource management? No, even though managers who can get the most productivity out of their team generally get the best bonuses. Is it the ability to crunch numbers and data in order to maximize profitability? No, but the number-crunchers definitely have the most power and control within most organizations. Is it the ability to persuade and sell? No, even though salespeople are treated like royalty at most companies. Actually, the skill that is probably the most valuable for managers, leaders and business people at all levels in all industries is the ability to write well.

As a writer, it may sound a bit boastful to say that good writing is the most underestimated, undervalued, and sorely needed skills in business today. Personal experience aside, while the ability to write well may seem like a mundane skill (after all it is not taught as its own subject in grade school or at most colleges), it is one of the most crucial skills any exec, manager or leader can bring to the table, regardless of industry or occupation. From engineers to educators and from real estate brokers to investment bankers, practically anyone in business today needs to be able to write well…. to deliver written information in a crisp, clear and concise manner. Says who?…. Well, just about everyone.
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Managing Staff Vacations during the Dog Days of Summer

The temperature is anywhere between a sizzling 82 degrees and a scorching 102 degrees, from Montauk to Miami and from Dallas to Des Moines. Kids are wrapping up their summer break from school. Families are heading to the shore, water parks and lakes to cool off or up to the mountains to relax. Adventure seekers are cruising, sailing and soaring to far-off destinations. Vacations abound.

Meanwhile back at the world of work, far from the summer fun, businesses continue to function. Customers continue to place orders. Goods still need to be delivered and services must still be provided. As staff takes time off, summer vacations inevitably place a burden on those who remain behind to carry the load. Companies must be careful in how they handle summer vacation requests and manage staff leave time. There is a fine line between being so permissive with leave time that business suffers and being so rigid with vacation requests that employees aren’t able to get a much-deserved break to rest and recharge their batteries. Walking that fine line is the challenge. Continue reading

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When a Company’s Brand Sends Mixed Signals – Part 2

In many ways, the brand is the Achilles heel of the corporate world. As companies shift more and more to being all about brand meaning and brand image, the more vulnerable they are to attacks on image. That is why it is increasingly critical for companies to protect every aspect of their brand, and work hard to avoid having any mixed messages about the company’s purpose and position. That includes guiding – as much as is possible or practical – what the company’s own people say about the company. This is a challenge for even the most successful businesses.

In fact, last week, LinkedIn’s CMO Network — the #1 Group for Chief Marketing Officers — posted this question for discussion by some of the top marketing minds in the world: “We are so sensitive about the language in our marketing campaigns and websites. How do we ensure our employees use the right words and tone while talking to customers?” There is an understanding at the highest levels of leadership that all brand cues must align in order to avoid mixed messages. Marketing cannot be saying one thing while sales is saying something else altogether. Materials cannot tout one image while leadership makes decisions that communicate the total opposite. While there are strategies (such as a clear Social Media Policy, scripted telemarketing dialogue, templated sales letters and emails, training sessions and a sales manual) that can help ensure sales efforts align with the company’s position, protecting a company’s brand goes far beyond that. Whether it’s a company’s marketing strategies, business tactics, or its approach to customer service, a business brand should obey the three Cs: be clear, cohesive and consistent.
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When a Company’s Brand Sends Mixed Signals – Part 1

Every company, no matter its size or purpose, has a brand. Regardless of whether the owners and leadership know what the brand is or what it stands for, the company brand exists. In theory, a company’s brand speaks about its purpose, voice and values. The brand reflects what the company does and does not do and how it wants to be viewed by the world. In practice, it also reflects what others – customers, potential customers, vendors, investors, and the general public — think about it. A brand reflects how the company is actually perceived by the world.

So a company’s brand is not just its logo or iconography, such as Nike’s swoosh or Apple’s bitten apple. Nor is a brand just it colors or fonts. That’s all just window dressing. A company’s brand is comprised of a multitude of elements that feed into the total picture or image (or in some cases the façade). Values. Voice. Personality. Corporate integrity. Product quality. Service delivery. Look/style. Marketing. Customer engagement. Approachability. A company’s brand is a reflection of all of this… combined. The better a company manages all of the elements that comprise its brand, the more likely it is to thrive long-term. To succeed, a company should be genuine in what it stands for and authentic and on point in everything it says and does. All of the messages should align.

But sometimes the messages don’t align. What happens if a company’s brand – this myriad of messages – sends mixed signals? What happens when there is a ‘disconnect’ between a company’s values and the quality of its products, or between its marketing messages and the actual service it delivers, or between its public voice and its online engagement? What happens to a brand where there are mixed messages muddying the brand’s image?
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