Author: Jim Weber

Management Consultant, Executive Recruiter, Author, Public Speaker; My blog, "Fighting Alligators" is geared to the over 50 job-seeker; people interested in starting their own business; and freelancers looking to become more successful. I have 22 years of experience with Fortune 500 Brands in Strategic Planning and General Management. For the past 22 years, I have been President of New Century Dynamics, Inc., an Executive Search Business I started and own. My company is in the business of providing Consulting and Executive Search Support to our client base. In 2014, I helped create ITB Partners, an Association of freelance management consultants.
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What Were They Thinking?

There are times when I learn of situations that make me scratch my head and say “whaaat?’

My next thought is usually, “what were they thinking?”  Well, that is the gist of it, but my language is often more colorful.  

I had another one of those moments this week after talking with two senior level restaurant professionals recently discharged from a failed startup.  One is a Controller.  I already have him in front of a client who has seen him twice.  The other is a marketing professional I have known for many years.   We scheduled a meeting for Monday morning to discuss her situation over a cup of coffee.  

She told me that she had been recruited by a Private Equity/Venture Capital Group to join a restaurant company start-up as CMO.  In May, she was relocated from her home on the West Coast.  By the middle of August, she was unemployed.  Her story was very disappointing if not heart breaking. Being new to Atlanta, she must build a network to find a new job.   We talked about her job search strategy and the changing nature of employment, including the rise of the freelancer.  Naturally, I pitched her on the value of joining ITB Partners as a transition strategy, and possibly as a career.  Atlanta is a good market for restaurant professionals so she won’t be unemployed long.

This situation surprised me on many levels.  Atlanta is a vibrant, highly competitive restaurant market.  It is home to multiple National and Regional brands.  We have a large pool of restaurant professionals available to recruit.  Why anyone would hire and relocate someone from the west coast escapes me. I am baffled as to why my friend took that risk.  

The bigger story is the reason for the company’s failure.  One day, they had two operating restaurants with a third on the drawing board.  The next day they closed the first store, fired the executive team, and shelved plans for growth.   They failed because cash flow from the restaurants couldn’t support their overhead commitment.  In addition to my friend, the CMO, and my Controller candidate, they employed a CPO, a Director of IT, a VP Operations, a Director of Culinary Operations, and the CEO/Founder.  For a start-up, their overhead was stunning.

ITB Partners works with start-ups, including restaurant industry concepts.  We understand the challenge of building a successful restaurant company.  Even with solid marketing research to make informed decisions, success isn’t guaranteed.  Our clients know this.  They understand the importance of conserving cash.  They are excellent stewards of invested capital, funds often provided by friends and family.  They understand that administrative expenses must be managed carefully, if not minimized.  These entrepreneurs work hard and take small salaries.  They look first to outsourced solutions when professional help is required.  When cash flow is stable and predictable they will consider hiring full-time equivalents, typically lower-level employees.  At times, I have discouraged clients from hiring me to find full-time equivalents.  Instead, I encouraged them to pursue a 1099 solution.  This was the genesis of ITB Partners.

Major corporations approach new ventures differently.  They are expected to innovate, take risks, and grow.   They have people to assign to these projects and financial resources to make a difference.  They are committed to the venture, but realistic.  They ensure that controls are in place and that key metrics are tracked.  Even so, major companies have become more entrepreneurial, exercising tighter control on resources deployed.  This was the typical corporate model, albeit without the support.

Success follows a pattern.  Start-ups share a similar process toward success or failure.  If you are involved in a start-up or looking to join one, compare their history with the standard model.  If their plan deviates from the model, take pause.  If their plan deviates significantly from the model, take flight! 

What were they thinking?

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list. Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

Jim Weber, Managing Partner
ITB Partners
Jim.Weber@itbpartners.com
Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company – New
2. Controller – Atlanta-based Consumer Products – Digital Company – Completed
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller – Atlanta-based Restaurant Company: New

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

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HOW TO ENSURE THAT YOUR BUSINESS WILL NOT GROW

by David Shavzin
“Procrastinate now, don’t put it off” ~ Ellen DeGeneres
Ah, procrastination! I have put off writing this blog for too long. But why?
“Never put off till tomorrow what may be done the day after tomorrow just as well.” ~ Mark Twain

Consequences
In business, decisions don’t get made and actions are not taken. Your business may continue to grow a bit each year, it may stagnate. Even with some growth, it will not achieve the revenue levels that you want. And, lack of action over time will seriously and negatively impact the value of your business when you are ready to sell and move on to your next activity. Your exit planning and succession planning never get started.
“Whatever a person’s comfort zone, they pay a huge price for staying inside it. It’s a shrunken world where ideas, opportunities, and new relationships can easily pass us by. Worst of all, procrastinators squander the most precious asset a human can have: time.” https://greatist.com/happiness/how-not-to-procrastinate-reason-procrastination     *** I encourage you to read this article!

Why DO We Procrastinate?
Scared? Scared of failure? Or, scared of Success?
“We are so scared of being judged that we look for every excuse to procrastinate.” ~ Erica Jong, Seducing the Demon: Writing for My Life.
Success can be scary. In business, it takes us up a level of complexity. More people depend on us – family, employees, suppliers. And there is a risk. If I am not successful, what will happen? Could I lose money, could my business get out of control? There is a risk in everything we do! Assessing, mitigating and preparing is key, that’s where risk gets reduced.

I Am Not One of Those Entrepreneurs
We tend to think that “entrepreneurs” create magic and that everything they touch turns into sales and profits, right? Isn’t that part of the silly perception we have of successful company founders? Especially the ones that grow so quickly?

The reality is that they:

  • Gather good people around them.
  • Work hard.
  • Make big mistakes     – but learn from them.
  • Manage risk     – they don’t jump blindly into seriously risky situations.
  • Understand consequences and therefore lower the risk involved in what they are doing.

Their actions – their success – looks much riskier to us as outsiders because we don’t see their mistakes, the planning and the mitigation of risk.  

Not sure what to do?
Scarlett O’Hara’s line is often shortened to: “I can’t think about that right now. If I do, I’ll go crazy. I’ll think about that tomorrow.” But the next few words are: “But I must think about it. I must think about it.” ~ Margaret Mitchell, Gone with the Wind
“Lack of motivation for a task is a commonly given reason…Starting a task is the real motivator, rather than motivation needing to be present prior to beginning. Often just taking the first step, regardless of how small, can serve as an inducement for further action.”
https://www.k-state.edu/counseling/topics/career/procras.html


Just take the first step! No, it’s not closing your eyes and jumping into the pool. It is making sure there is water in the pool – but then, yes, jump in!

************************************************************************

More Reading on Procrastination
http://www.successconsciousness.com/guest_articles/procrastination.htm


David Shavzin, CMC
Shavzin and Associates, Inc.
Valuation, Succession / Exit Planning, Building Value for Sale
Atlanta, Georgia
770-329-5224
Our BLOG
LinkedIn
dshavzin@shavzinassociates.com
www.ShavzinAssociates.com

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list. Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

Jim Weber, Managing Partner
ITB Partners
Jim.Weber@itbpartners.com
Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company – New
2. Controller – Atlanta-based Consumer Products – Digital Company – Completed
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller – Atlanta-based Restaurant Company: New
7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

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Get Out Of Your Comfort Zone!

For the past few weeks, this blog has featured guest bloggers including a series from David Shavzin, one of my colleagues, on succession and exit planning. However, that does not mean that I have been on vacation.  I have been very active, attending networking meetings, completing an important search, and recruiting Freelancers to join our Consulting Group, ITB Partners.  So, as I transition back to my role as the author of this blog, I thought it would be worthwhile to summarize a few of my most significant learning from the past few weeks.  I hope you will find some interesting items to consider as I did.

Tuesday, August 8, I attended the monthly meeting of the Business Executives Networking Group (BENG).   I met three people who were attending for the first time.  As meeting new job seekers is the primary benefit I seek from my association with BENG.

This was a productive event.  We scheduled follow-up meetings to discuss their career interests and how I might be helpful. The meeting agenda included a presenter from one of the nation’s premier outplacement firms.  Naturally, his presentation was about the current state of job search in this country.  After a brief overview of the outplacement industry and his company’s model, he facilitated a question and answer session from the group.  My major takeaway from the meeting can be summarized in the following four bullet points.

  • Age discrimination is real
  • Networking is King
  • Changing industry sectors requires a good contact
  • Jobscan.co is worth a look

The first three bullets will be familiar to you as I have frequently posted on these issues.  To summarize:  Yes, age discrimination exists, especially with major companies.  It is a challenge to overcome, however, it is not fatal.  Networking is still the predominate means to a new job, so keep at it!  Changing industry sectors is easier if one has good networking connections into the target industry.  My other major takeaway was that Jobscan.co is worth further research.  This was the first I had heard about Jobscan.co so I made a note to learn more.

My research into Jobscan.co revealed that it is an affordable alternative to a professional outplacement program.  Their tagline is “Providing resources to help you land your perfect job from beginning to end.”  Jobscan.co  provides resources to help subscribers navigate job search including, how to write cover letters; how to write a resume; and how to prepare for a job interview.  Additionally, jobscan.co has a program to help you better understand applicant tracking systems.  Jobscan.co offers three basic programs each with a different level of services. The basic program called “Fee Forever” is just that, a limited number of services for free. Their most popular program is “The first month free” with the next three months priced at $89.95.  The third program is full service for $49.95 per month.  My impression is that this that most job seekers should consider Jobscan.co as the cost of their services seems fairly reasonable.

This week Wednesday, seven members of our consulting group, ITB Partners attended a meeting with a local chapter of Institute of Management Consultants (IMC).  One of our partners is the immediate past president of IMC.  He was instrumental in recruiting our consultants to attend the meeting.  My interest was to understand the value proposition of IMC, especially its potential to help build the professional skills of our consultants.

The Atlanta Chapter is part of the US Affiliate of IMC which operates under the umbrella of The International Council of Management Consulting Institutes, (ICMCI) based in Zurich Switzerland.  Since 1987 ICMCI has been the professional body worldwide for management consultants. [1]

It exists to:

  • Elevate the standards of management consultants worldwide
  • Increase the acceptance and respect of the management consulting profession
  • Increase the international and regional profile of management consulting
  • Improve the process of certification throughout the world
  • Provide a forum for national certifying bodies of management consultants
  • Prepare and promulgate Standards for management consulting to be adopted internationally

This meeting was primarily a recruiting effort to entice more independent management consultants to join their association. As one would expect the presentation was heavy on the benefits of each joining IMC, however, we did enjoy a free lunch and a presentation by a LinkedIn guru.  The theme of his presentation was “Leveraging your Brand using LinkedIn.”  I must admit, I did gain a few tidbits of useful information from his presentation.

IMC offers to credential for its members using online testing and an oral evaluation by a panel of members.   One of the most important aspects of this association is their code of ethics.  It is most impressive!  I plan to adopt those standards for our consulting group.  Overall, my take on the IMC group is that they are more about networking and providing referrals to their members than they are about building professional skills.  I am fine with that, as providing a base of support for the Independent Consultant is a critical component for success.  There is ample opportunity for continuing professional development through other sources.

In summary, these two events reinforce my belief that if you are looking for a new job or building your career, advancement requires growth.  One cannot grow unless you get out of your comfort zone and expose yourself to new situations.  Become active meeting new people and learning about new products.

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

Jim Weber, Managing Partner
ITB Partners
Author of: Fighting Alligators: Job Search Strategy For The New Normal
JimWeber@NewCenturyDynamics.com
Current Assignments
1. COO- Atlanta-based Casual Dining Restaurant Company – New
2. Controller – Atlanta-based Consumer Products – Digital Company – Completed
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller – Atlanta-based Restaurant Company: New
7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete
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Business Exit Structure, comes in many flavors

by David Shavzin
Business Exit Structure is the fourth high-level step I discuss when speaking on succession/exit planning. 












My last three blogs covered the first three steps: Step 1: Exit Planning / Succession Planning is a TEAM SPORT; Step 2: Knowing Your Business Value; Step 3: Building Transferable Value. The fourth step, Business Exit Structure, comes in many flavors.

How Can I Leave Thee – Let Me Count the Ways

It is not simply a matter of handing over the business and getting a check for the full amount on your way to the islands for the rest of your life. Despite what you hear, it rarely happens that way. It may be a payout over time, the amount may be tied to future revenue targets, it may require your continued involvement for a period of time.

You may simply not be ready to accept offers that are put in front of you, requiring you to stay in the business longer than you would like.

A few options to consider for your business exit structure:

• Sell to a 3rd Party: An investor or someone looking for a business to run and grow.
• Sell to Family: Could be ideal, could be complex and personally challenging!
• Sell to Employees: Current staff knows the business, employees keep their jobs.
• New Employee/Acquirer: Bring someone in, teach the business, agree to sell at a certain date.
• Retain Ownership: Sell majority ownership, but keep an income stream over time.
• Shut the Doors: Liquidate, perhaps the only choice due to a crisis or lack of planning.
• Strategic Sale: Find a competitor who may pay more because of various cost savings.
• The Two-Step: Merge with a competitor as a first step and have a plan for a buyout over time.
• Split in Two: Don’t want to completely retire? Is there a product or service you enjoy and would want to keep?
• Die – No Really!: Want to work forever? Ok, but you still need to plan.

The Bottom Line on Business Exit Structure

There are dozens of formulas for business exit structure. Start planning early, build your advisory team and outline at least a target exit scenario so you have something to work toward. Discuss the pros and cons of each possible scenario. You can always adjust along the way, but having an initial plan will help bring you and your team together toward common goals.

A successful transition takes time. The earlier you start, the more flexibility and negotiating power you will have for your business exit structure.

********************************************************************
More Reading:
Step 1: Exit Planning / Succession Planning is a TEAM SPORT
Step 2: Knowing Your Business Value
Step 3: Building Transferable Value
********************************************************************
David Shavzin, CMC
Shavzin and Associates, Inc.
Valuation, Succession / Exit Planning, Building Value for Sale
Atlanta, Georgia
770-329-5224
Our BLOG
LinkedIn
dshavzin@shavzinassociates.com
www.ShavzinAssociates.com

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
Author of: Fighting Alligators: Job Search Strategy For The New Normal
JimWeber@NewCenturyDynamics.com
Current Assignments
1. COO- Atlanta-based Casual Dining Restaurant Company – New
2. Controller – Atlanta-based Consumer Products – Digital Company – Completed
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller – Atlanta-based Restaurant Company: New
7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

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Exit / Succession Planning: Transferable Value and Value Drivers

Guest Blog Post by David Shavzin;  Partner, ITB Partners



A laser focus on key business TRANSFERABLE Value Drivers will maximize your exit. When I speak on exit and succession planning, I talk about four high-level steps. My last two blogs covered the first two steps: Step 1: Exit Planning / Succession Planning is a TEAM SPORT and Step 2: Knowing Your Business Value and Step 4: Business Exit Options.







Step 3: Understanding TRANSFERABLE Value and Value Drivers
First, let’s discuss Transferable Value

I usually put it this way: “What would happen if you left your business for three months, headed down to an island with absolutely no way to communicate?”
If you get back and the business is humming along well, even thriving, you may well be on your way to significant transferable value.

If sales didn’t happen, if bills were not paid, if your products or services were not delivered, if 2 key employees quit and if the leaking roof completely fell in – because you were not there – you probably don’t have much transferable value.

    The company’s dependence on you for success limits Transferable Value to a buyer. A buyer does not want to see a significant amount of knowledge walk out the door upon purchasing your business. If that’s the case, they will pay you a lot less than you want for it.
    Perhaps the extremes of 1) or 2) above don’t apply to you, but the reality is that most businesses have a long way to go to optimize transferable value.
    The big goal: make yourself irrelevant to the business. “But, but…” I hear you start to protest. Get over it! If your goal is to have the money that you need/want for yourself and your family, you need to raise your business like a child, preparing it to live life on its own…without you.

    Now, the Top Ten Drivers of Transferable Value
    These are not necessarily in priority order and should all be addressed as you work on growth, succession, and exit. Develop a plan that truly addresses these ten items, and start working the plan now:
    • Your revenue will improve immediately.
    • You will feel better and enjoy the business.
    • Your value will start to grow quickly.

    1. Sustainable, Recurring Revenue.
    2. Written Business Processes: update them regularly, train to them regularly. Repeatable, consistent operating systems drive the customer experience and sustainable cash flow.
    3. A Technology infrastructure that supports your plan and value drivers, while staying current!
    4. Management Team and senior staff who are trained and motivated. Make sure that your employees are Knowledgeable and Engaged.
    5. Sustainable, Competitive Advantage: Is there something that is truly different about you? If not, find it! Don’t be a commodity and don’t tell me “we have great customer service”!
    6. Scalability: are you ready to take on a new customer that adds 50% to your revenue? 100%?
    7. Diversified Customer Base: Is one customer more than 20% of your revenue? And how often do customers leave you?
    8. Customer Experience: Do you truly know how your customers experience your products and services?
    9. Financial Performance: Sustainable, Growing Cash Flow and Financial Controls.
    10. Written Growth Plan

    The Bottom Line on Transferable Value
    The business needs to thrive – without you! Develop and work a plan that addresses the top ten value drivers. Start today, measure your progress and adjust your tactics if you get off track on your exit planning.

    ********************************************************************
    More Reading:
    Step 1: Exit Planning / Succession Planning is a TEAM SPORT
    Step 2: Knowing Your Business Value
    Step 4: Business Exit Options.
    Transferable Business Value and What Drives It:
    http://www.forbes.com/sites/johnbrown/2016/06/30/transferable-business-value-and-what-drives-it/#22c215fe7241
    ********************************************************************
    David Shavzin, CMC
    Partner, ITB Partners
    Shavzin and Associates, Inc.
    Valuation, Succession Planning / Exit Planning, Building Value for Sale
    Atlanta, Georgia
    770-329-5224

    Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

    Jim Weber, President
    New Century Dynamics Executive Search
    Author of: Fighting Alligators: Job Search Strategy For The New Normal
    JimWeber@NewCenturyDynamics.com
    Current Assignments

    1. COO- Atlanta-based Casual Dining Restaurant Company – New
    2. Controller – Atlanta-based Consumer Products – Digital Company – Offer Accepted
    3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
    4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
    5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
    6. Controller – Atlanta-based Restaurant Company: New
    7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete
    Posted on

    So, You Need A Marketing Budget!

    By Michael Sick, Guest Blogger

    While every company is unique, a common question among business owners is “how much should I spend on marketing?” The correct answer is…it depends. There are many factors to be considered to establish the optimal spending level for marketing and advertising. Here are a few issues to consider:

    Industry Norms – Most industries have a “success model” that defines line item spending ranges.   Understanding this model is an important first step. Previous experience, feedback from other firms in the industry, or searches on the internet or trade publications are all good sources for this information.

     According to a report in Ad Age, ad spending in the United States as a percent of GDP was 2.2%.  That number is just for advertising and does not account for all marketing expenditures.  Marketing services (trade shows, research, consulting, design, production, staff, etc.) can often comprise 25 to 50% of the total spending.  McDonald’s (MCD) reports about 9% selling G&A with about half of that funding TV advertising.  Boston Beer Company (SAM), maker of Sam Adams beer spends 25 to 30% of its revenues on advertising, promotional and selling expenses.

    Spending ratios are influenced by the business model for the industry.  Unlike lower margin business (consumer electronics or banking), high margin businesses (beverages and software) can afford to spend a greater amount of their revenue on advertising.

    SEND ME THE FREE EXECUTIVE RESUME CHEAT SHEET!

    “Fixed” Program– Some brands require a “minimum” level of marketing expenditures to be competitive. For example, a company may know that it needs to attend a given number of industry trade shows or regularly advertise in certain publications to maintain market share.   In this case, their budget is driven by a “fixed” set of expenditures.  As their business grows, these fixed costs will become a lower percentage of revenue.

    Competitive Position – If Company “A” is in an industry where the norm is to dedicate 5% of sales to marketing, consideration needs to be given to the size of the competition.  If the company does one million dollars in revenue, an advertising budget at 5% results in $50,000 of expense.  If the other direct competitors have combined revenues of five million dollars and also spend 5%, they will spend five times the budget of Company “A”.  To break through the noise, consideration should be given to increasing the spending percentage, focusing the budget on a specific vertical customer segment and/or limiting the geographic reach of the marketing plan.

    Growth Goals – If a company has aggressive revenue goals, they should consider the additional cash flow available for marketing generated by achieving the higher revenue goal.  Establishing the marketing budget as a ratio of the revenue goal is another approach.  Growing quickly requires increased working capital for inventory, staffing, and accounts receivable.  The prospect of increasing marketing spending can be challenging for high growth companies. Companies with plans to grow rapidly may need to spend a higher percentage of sales to achieve that goal.

    Budgets in Recessions – Some companies find themselves losing customers and revenues during recessions.  A natural tendency is to reduce marketing expenditures to keep them “in line”.   If revenue is down 10%, should the marketing budget be reduced by 10%?  Logic dictates that if you reduce your budget by 10%, your revenues should fall by the same percentage.  Reducing marketing spending is likely to reduce the acquisition of new customers or jeopardize the company’s current share.   Brands should resist the urge to reduce marketing budgets in a recession.  Focus instead on improving the media mix, the creative or relevancy of the message. Recessions present an opportunity to gain market share, so look to reduce other expenditures first.

    While marketing expenditures are recorded as expenses on the P&L, smart managers know that these expenditures are investments in the future.  The “Chicken and the Egg” dilemma is confounding for some businesses.  Which comes first, the revenue to support the marketing budget or the marketing budget to generate the revenue.  Your CFO and CMO are likely to answer that question differently!   They can probably agree, however, that revenues tomorrow are likely to be higher if you spend more on marketing and advertising today.

    Setting a budget for marketing expenditures can be perplexing to business owners as the promised benefit is elusive.  Every business has a slightly different situation that needs to be considered to establish a marketing budget. Prospects generally need to be exposed to a brand multiple times before they are willing to change providers or make a purchase.  The Savvy marketing professional knows that it takes months, years even to nurture a prospect.    Optimizing marketing expenditures by benchmarking and tracking metrics specific to the company’s situation is the foundation for success. Reviewing the approaches discussed in this article is a good first step.  ITB Partners (www.itbpartners.com) has broad experience across many industries and domains, so we are capable of advising our clients on this subject and all other issues facing the enterprise.

    Michael Sick, a nationally recognized, innovative management consultant specializing in strategic marketing, advertising, and business development. He spent 25 years in corporate marketing and was a Marketing Vice President for Jack In The Box, Pearle Vision, Arby’s and others. Currently, he serves as the part time Chief Marketing Officer (CMO) for some clients around the US. Learn more at:   www.itbpartners.com/michael-sick.html

    Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

    Jim Weber, President
    New Century Dynamics Executive Search
    Author of: Fighting Alligators: Job Search Strategy For The New Normal
    JimWeber@NewCenturyDynamics.com

    Current Assignments
    1. COO- Atlanta-based Casual Dining Restaurant Company – New
    2. Controller – Atlanta-based Consumer Products – Digital Company – New
    3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
    4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
    5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
    6. Controller – Atlanta-based Restaurant Company: New
    7. Outplacement Assignment – Atlanta-based Manufacturer:  New

      Posted on

      Further Research Into Social Media and Talent Acquisition.

      My most recent posts have extolled the virtue of employing a social media strategy for talent acquisition.  This week I decided to do some further research in this connection. I begin with phone calls to a couple of my clients.  I wanted their input and to learn what they’re doing. After a few conversations, I began visiting their websites and social media pages.  I even built an Excel Spreadsheet to capture the data I thought might be relevant.  What I learned was most interesting, leading me to believe that I must pursue this line of analysis further.

      As I have a somewhat diverse client base, I was able to see top line results across various industry sectors.  My clients range from retail to consumer packaged goods,  business to business services, and manufacturing.  All of these companies are using their websites to attract potential employees. Some have a more robust presence than others in this regard, however, all are posting jobs and providing a vehicle to take applications from job seekers.  A few of the consumer brands are using their website to build a community of career minded followers. It was interesting to note, however, that none of these companies provided a compelling reason for anyone to join their team. There was no call to action.    It was as if to say; yeah we have positions to fill, and we might be interested in talking with you if you want to talk to us.  That was common across all platforms.

      With one exception, all of my clients are using LinkedIn to promote their company. There is a wide range of effort in this area, but it is fair to say that none has a particularly strong presence on LinkedIn. Again, there was no evidence of a strategic message for talent acquisition by any of these brands.

      Only one of these companies, a manufacturer, doesn’t have a presence on Facebook.  Otherwise, there is substantial evidence that they are making good use of social media. There is a lot of variation in the frequency of their messaging, but they are all working to develop a community of engaged followers.

      SEND ME THE FREE EXECUTIVE RESUME CHEAT SHEET!

      All of these brands are active on Twitter as well.  The consumer oriented brands are generating the most activity and followers. The manufacturing company scored lowest on activity level whereas the CPG brand is “rocking it.”  With the exception of the manufacturing company, each of these firms also maintains a presence on Instagram and Pinterest.  That was a pleasant surprise, but understandable as those platforms are consumer oriented.

      My Clients recognize the importance of leveraging their presence on the Web to support their talent acquisition goals.   Some are further along than others, however, each has established a beachhead. They have extended their reach and are becoming more experienced.  I suspect there is a budget issue in play here as well.  Generally speaking, the larger companies have a bigger social media footprint.  They must recognize the value of this medium and have resourced their efforts.  A notable exception is the smallest company which has made the greatest commitment to social media.  Of course, that could be because it is a CPG-Digital company that markets its products on the Web. Even so, it is most curious that they don’t offer a compelling message to attract potential employees.  They provide the process to make it easy for the motivated job seeker to make an application or to send a resume but offer little encouragement.  None offered a compelling reason to consider a career with their company.  Their message is directed toward their retail customer and prospective customers, but not prospective employees.

      I found this to be a very useful exercise which requires further investigation.  I made an effort to follow each of these companies on Twitter and LinkedIn.  I also gave them my email address to receive their marketing communication.  I am eager to learn about their messaging.  It will be fun to watch their progress.

      Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

      Jim Weber, President

      New Century Dynamics Executive Search
      JimWeber@NewCenturyDynamics.com
      Author of: Fighting Alligators: Job Search Strategy For The New Normal

      Current Assignments
      1. COO- Atlanta-based Casual Dining Restaurant Company – New
      2. Controller – Atlanta-based Consumer Products – Digital Company – New
      3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
      4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
      5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
      6. Controller – Atlanta-based Restaurant Company: New

      7. Outplacement Assignment – Atlanta-based Manufacturer:  New
      Posted on

      Crafting A Social Media Strategy For Talent Acquisition.

      Why do you rob banks? Because that’s where the money is.”  Willie Sutton

      There are many good reasons to employ a social media strategy to support a talent acquisition program.  Although the above-referenced quote attributed to Willie Sutton is in dispute, he would understand this opportunity, as social media is where the people are.  A lot of people are engaged on social media platforms, many of whom are searching for new career opportunities.   This is especially true for LinkedIn.  It is common to see messages from my LinkedIn network announcing job openings within their companies. Sometimes these messages appear to be coordinated through Human Resources, other times not so much.   Likewise, job seekers are using LinkedIn to get their message out.  Other social media platforms like Facebook, YouTube and Twitter offer opportunities for recruiting activities as well.  However, the most compelling reasons may be to maintain control of one’s brand message and competitive advantage.

      In many ways, brands have little choice but to use social media for recruiting and selection purposes.
      Their employees are already engaged over various platforms, especially LinkedIn, representing the brand one way or another without supervision or direction.  Furthermore, the competition is probably using social media to recruit their employees.  There is competitive pressure for employers to be active on social media to achieve their recruiting goals.

      If a company decides to engage in the use of social media to support its talent acquisition program, developing a well-defined strategy is in order.  The place to begin is by establishing a clear understanding of the demographic composition of the target market, prospective employees.  Management must understand its audience and their career interests.  What are their needs?  What is the company’s value proposition?  Does it resonate with the target audience? What is the protocol for developing relationships?  This information will help you determine which social media platforms would yield the most favorable results.   The next step is to dedicate resources to execute the strategy.  The financial budget must support the recruiting goals for the organization.  It would be wise to assemble a cross-functional team with representation from HR, Sales and Marketing, and social media experts.  The plan must have a long term component, for branding, and an immediate component for current staffing needs.  The brand’s involvement must be continuous

      A social media strategy should be implemented with care.  Social media platforms are highly visible and can be incredibly powerful, however, there is a downside risk to be acknowledged. Once involved, the brand becomes open to criticism and potential controversy.    Becoming politically active is an obvious risk which has the potential to alienate customers and potential employees.  Even an association with certain causes or charitable programs may be problematic.  Active participation on social media can be an opening for criticism of the companies activities so caution is recommended.

      When a brand has established a viable social media strategy that is properly resourced, the team can formulate a plan to generate followers and keep them engaged.  Some obvious ways to engage prospective employees may include:

      • Company news: new products, promotions, new technology, etc.
      • Industry news: what’s going on in the industry and how the company is adapting.
      • Employee news: promotions, new corporate initiatives, training programs, benefits, other kinds of recognition.
      • Messages from key executives about the health of the company and prospects for the future.

      The whole point of a social media strategy is to engage customers who will purchase the company’s goods and services and potential employees who may want to join the team.   The messages should be compelling enough to capture the interest of the followers.  They must be posted with regular frequency to keep the followers engaged.  

      It is important to remember that using social media to support a talent acquisition strategy is a component of an overall recruiting strategy.  It is another method of sourcing and engaging potential employees.  Using Social Media is not a substitute for all other recruiting programs.  All of the rules for effective recruiting and selection still apply.    
      Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.
      Jim Weber, President

      New Century Dynamics Executive Search
      JimWeber@NewCenturyDynamics.com
      Author of: Fighting Alligators: Job Search Strategy For The New Normal

      Current Assignments
      1. COO- Atlanta-based Casual Dining Restaurant Company – New
      2. Controller – Atlanta-based Consumer Products – Digital Company – New
      3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
      4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
      5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
      6. Controller – Atlanta-based Restaurant Company: New

      7. Outplacement Assignment – Atlanta-based Manufacturer:  New
      Posted on

      Social Media Is A Game Changer!

      During my career working for major retail brands, I knew the value of advertising on radio and television.  Also known as major media, we could see the results of our buys, almost in real time. However, I understood the cost and limitations of traditional media.  Successful advertising was all about the message.  A lot of money could be quickly wasted if the message was not relevant.  Social media has changed the game, especially for small business.  These tools allow smaller companies to leverage their marketing budget to compete on a larger stage.   It gives them a voice they could not achieve through major media.  They can dialog with customers and prospects in a cost effective way.  It is akin to the difference between a rifle and a shotgun.   I have found social media to be very helpful in building my business.

      Executive search is an interesting business.  I am hired by employers, my clients, to find people who want to become their employees.  One could say that I am selling prospective employees, so I guess Job Seekers are my inventory.   Often, candidates become clients and vice versa.   Over time, I have become more productive as my industry knowledge and relationships have grown.  These relationships serve to generate more contracts and to complete assignments faster.    My business is not unlike any other service-sector business as success is all about building lasting relationships.  I learned that building and managing a large network is a viable strategy to build my business.

      Early on, I recognized the value of talking to my clients and prospects.  I created a database of followers and invited people to sign up for my periodic updates. By today’s standards, it was fairly primitive. I used Microsoft Outlook to manage my list, and mail merge.  It began as a collection of clients and prospects.  In time, as I received more unsolicited resumes, I added job seekers to my outreach.  Later, I added strategic partners.  I would tell these folks about my new assignments as well as assignments I had completed. That activity generated new business and more followers.  I was an early adopter of LinkedIn and became involved with Facebook and Twitter.  I didn’t understand the full potential of those applications at first.  However, now I am a believer.  I even migrated my email marketing campaign to Constant Contact and Mail Chimp.

      SEND ME THE FREE EXECUTIVE RESUME CHEAT SHEET!

      I learned the importance of blogging to engage prospects who needed employees, and to professionals who are interested in career advancement.  The focus of my blog is on career issues facing Baby Boomers, my prospective candidate base.  This is an important target audience, as they represent my primary placements.  When I began blogging, social media became even more important.  I began using Twitter to generate interest and to direct readers to my website.  I subscribed to Hootsuite to expand my message to my followers on LinkedIn, Facebook, and Google+.  I believe my experience with executive search is relevant to all small businesses.  It is an effective business practice to maintain contact with customers, prospects, and prospective employees.

      Now that I am building a Consulting Company, I am using the same digital marketing techniques to promote this line of business.  In fact, I have adopted the social media platform I built for my executive search business to present this opportunity to my network.  The results of this effort have been remarkable.  I use social media to speak to prospective clients and to freelancers who may be interested in joining our company.

      As I have done with my business, small companies should consider for theirs. Build a community of prospective job seekers.  Last week I talked about using the company website to generate interest in employment opportunities.   In the same way that one would reach out and cultivate prospective customers, companies should be talking to prospective employees to build a following.  Maintain their interest in your brand for future employment opportunities. Depending on the nature of the business, prospective employees could become current customers.  Social Media is an excellent way to engage these people.

      Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.
      Jim Weber, President

      New Century Dynamics Executive Search
      JimWeber@NewCenturyDynamics.com
      Author of: Fighting Alligators: Job Search Strategy For The New Normal

      Current Assignments
      1. COO- Atlanta-based Casual Dining Restaurant Company – New
      2. Controller – Atlanta-based Consumer Products – Digital Company – New
      3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
      4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
      5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
      6. Controller – Atlanta-based Restaurant Company: New
      7. Outplacement Assignment – Atlanta-based Manufacturer:  New

      Posted on

      Talent Acquisition: Put Out The Welcome Sign!

      A week ago Thursday, my colleague David introduced me to the principals of a small design-build company. These folks have a bit of a conundrum. Last year they hired an individual to fill a key position, however that person is not performing to their standards.  He requires too much supervision and follow-up. The principals are having to cover much of his workload. They’ve decided to replace him and wanted to talk to me about conducting a confidential search. These folks have never hired an executive recruiter so they are curious as to my background and method of operation. They also want to know the cost of my services.

      During our meeting, they spent a lot of time talking about their expectations for successful job performance and the shortfalls of the incumbent. They talked about the process they used to recruit him, including compensation and qualifications. It was clear to me that there was a major disconnect between the strategic importance of the position, the experience and skill set required, and their compensation package. Frankly, this is not uncommon for a small company.

      Note: Successful companies are always recruiting talent, even if it’s nothing more than networking and cataloging potential hires.

      The following Monday morning, David called to advise me that the prospective client had been presented with the employee’s resignation. Now they are really in a pickle. This is a key position that needs to be filled immediately.   Productivity will suffer along with customer satisfaction.  Their P&L is sure to be affected.  They are serious about a search engagement and wanted to schedule a phone call with me to finalize an agreement.

      The fact that the incumbent offered his resignation came as no surprise to me. When the relationship between employer and employee becomes strained it is mutual.  Surprisingly, many employers fail to grasp this fact.  I am equally confident that if I was to do an exit interview with this employee, he would say the job wasn’t what he expected either.

      When we had our conversation later that day, I got a clearer picture as to their thinking and how they wanted to proceed.  I learned that they want to pursue a parallel path evaluating the acquisition of a W-2, regular employee, or a 1099 contractor. They also gave me a sense as to their cash flow situation and budget parameters for the search.  I told them that I would outline a proposal for their review before noon the next day.

      The smaller the company, the more critical turnover becomes.  They typically have little excess staff.  They are totally focused on work at hand and business development to the exclusion of an active recruiting program. This is understandable, if not something of an extreme case.  An active recruiting program is an effective insurance program.

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      Larger, more stable companies have the same issues as my perspective client. Working on an engagement last year, I quickly learned that the client underutilized the talent acquisition value of their web-site.  They did not feature a “careers” tab prominently on their main menu.  In fact, it was inconspicuously buried as a sub menu item. This company has had difficulty with ongoing recruiting, yet failed to put out a welcome sign for prospective team members. This was easy to correct. The follow-on step was to add a plug-in that collected resumes and job applications from interested candidates.

      Minimizing the risk of turnover should be a priority for all organizations.  Putting out a welcome sign to attract prospective employees is the starting point.  A prominent page on the company website and on social media is ideal.

      Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

      Jim Weber, President
      New Century Dynamics Executive Search
      JimWeber@NewCenturyDynamics.com
      Author of: Fighting Alligators: Job Search Strategy For The New Normal

      Current Assignments
      1. COO- Atlanta-based Casual Dining Restaurant Company – New
      2. Controller – Atlanta-based Consumer Products – Digital Company – New
      3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
      4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
      5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
      6. Controller – Atlanta-based Restaurant Company: New
      7. Outplacement Assignment – Atlanta-based Manufacturer:  New