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The 7-R’s of Resiliency

Doug Reifschneider

Building portco resiliency right now 

The current COVID-19 crisis is already changing the economy in extraordinary and unexpected ways. But there are steps private equity firms can help their portfolio companies make to help weather the storm, and recover when the clouds lift, according to Doug Reifschneider, a CMO with Chief Outsiders.

 The world’s best epidemiologists only have models to predict the full depth and breadth of the COVID-19 pandemic, but companies are already feeling the weight of the economic fallout. They’re scrambling to find the best way to respond, and in many cases, survive, all the while being rightly concerned for the health of their families and communities. It’s not easy, and this is no time to pretend otherwise.

Some enterprises might be dusting off contingency plans for downturns or large-scale threats, but this moment requires more than that. It demands a resiliency program, one that’s clear-eyed and proactive. If the outlook is too bleak or too rosy, the result can be the same dangerous inertia. But Doug Reifschneider, a CMO with Chief Outsiders, has a series of initiatives that can counter that.

Building off his extensive experience in the retail and restaurant industries, Reifschneider has devised what he calls the “7 Rs of Resiliency Programs.” It’s a checklist that can help frame and direct the efforts to respond to COVID-19. “It’s based on a mental framework from the US Marines that is centered on three steps in coping with a crisis: improvise, adapt and overcome,” says Reifschneider. “Plenty of people are improvising at this point, but it’s time to look at more constructive ways to adapt and plan for recovery.”

Private equity firms would do well to look within each company of their portfolio and help guide them in executing each one of these steps.

Review costs. “Most people are already doing this, as they’d have to be asleep at the wheel if they weren’t,” says Reifschneider. Still, beyond canceling recurring services that are simply irrelevant, like window washing, it can involve hard calls about labor and supplies. A lot of restaurants, retail brick & mortar and even brand HQ’s are furloughing employees and the current stimulus will help alleviate that pain, but those cuts need to be executed without crippling the resiliency program.

Reassign tasks. Sometimes the best thing a company can do is focus on what it can give back. In the short term, that can be repurposing the business for strictly philanthropic purposes. He cites one restaurant that used its parking lot for a Red Cross Blood Drive. “It doesn’t address the bottom line, but it establishes the business as a partner in the community,” says Reifschneider.

Rethink offerings. For restaurants that never considered takeout or delivery options, this is the time to launch those. For retailers, this can involve more online ordering and curbside pick-up. But creativity is key here. Brazilian steakhouse chain Fogo de Chao was centered around its all-you-can-eat in-house dining experience. “So they became a butcher shop, offering their unique cuts of meat so folks could cook them at home,” says Reifschneider. “It’s a savvy way to redeploy inventory and keep sales from cratering completely.”

Another example is the company Wow Bao, that created a special licensing deal to allow other restaurants to produce and sell its dumplings by selling the ingredients and a few pieces of equipment to do so.

Reconsider sacred cows.  As businesses rethink their offerings, they can run smack into certain “sacred cows” that seem to be integral to their identity. That high-end eatery may balk at delivery options since that fish dish might be ruined in the thirty or forty-five minutes it takes to deliver it. “This is no time for those kinds of pretensions,” warns Reifschneider. “Find a way to make a meal pack, which are popular now, or focus on offerings that can be delivered successfully.” Several restaurants have created pop-up drive-throughs, with no more than a tent and a landlord’s blessing. And the likes of Home Depot have shifted to curbside pick-ups even as it prided itself on counseling customers in the store.

Reschedule Initiatives. Retailers and restaurants that had planned remodeling projects could move those up, but only if they have the resources to do so. “It would take only the best-capitalized businesses to embark on such remodeling projects, but if they can, it’s worth doing,” says Reifschneider. “Instead of closing for that week in August to remodel, do that now.” Of course, such initiatives can still be hindered by government directives that limit non-essential work.

Reconnect. Communication matters more than ever. “We may be keeping our distance physically, but we’ve never been more social,” says Reifschneider. “We have regular Zoom happy hours and contact clients regularly.” B2B companies will have closer relationships since they sell directly to their clients, but B2C companies shouldn’t go quiet either. They need to reach out every few days, so long as they are mindful of tone and content.

Reifschneider cites a recent study by Edelman that surveyed over 12,000 people across 12 countries on brand trust in the wake of COVID-19, which finds that 71% of respondents would lose trust in a company forever if that company is seen as putting profits before people right now.

 

“Every enterprise should take that 71% seriously, and make sure their communications are exclusively about how they’re helping their communities, their customers and their employees cope with the situation,” says Reifschneider. “Striking a tone of generosity and support is crucial.”

Ready the relaunch. There is no reliable guidance for when any company will return to normalcy. However, Reifschneider notes this shouldn’t prevent companies from planning the steps for a reopening. Employees will need to be retrained with new procedures for interacting with customers, and in the restaurant business, there are likely to be new protocols for food prep and increased sanitation. Dining rooms and showroom floors will get dusty during the shutdown, so time needs to be allocated for a deep clean. “This also might be a great time to retrain employees in customer service, stocking shelves, or getting CPUs in line,” says Reifschneider.

However, no one should take any of these steps in a vacuum. Each needs to be tailored to the market reality facing a given enterprise. “At Chief Outsiders, we vet all assumptions, with hands-on research initiatives that capture how customers and peers are thinking and acting,” says Reifschneider. “And we do this even when the market is stable and growing, let alone during a crisis that can change everything overnight.”

So perhaps the first step in any resiliency plan is for a business to get its bearings, and understand exactly where it stands at the moment. It might be all the more important to listen before speaking, to ask, and use that feedback to gauge what to do next. The best private equity firms will already have open channels with their portfolio companies and that level of candor and sense of collaboration should be extended to all stakeholders.

In times like this, humility might be a secret weapon, provided it doesn’t stop a company from acting. Fortune may still favor the bold in times like these, but only if the bold is informed and willing to help.

Doug Reifschneider
Doug Reifschneider

https://www.itbpartners.com/doug-reifschneider/

Thank you for visiting our blog.

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

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The Isolation of Ownership

Bottomline First: Owners don’t really have anyone to talk to about their problems. Reach out to those in your care.

Outside of a preacher in a small church, I don’t know of a more lonely calling than a small business owner.

I will often ask them, “Do you know what your friends think of you?”

They look at me with stunned incredulity since I had only met them a couple of hours earlier and know none of their friends.

I proceed to tell them, “Your friends think they have it made, they think you come and go as you please, hire people to do what you don’t want to do and write it all off on your taxes!!  They think you have the Life of Riley!”

Then they say, “You know, you are absolutely right!”

And I assure them if they try to convince their friends just how hard it is owning a business, they think you are pulling their leg!

And THIS is during the GOOD times!  The loneliness is only getting worse in the economic environment of the day!

Many times business owners will become overly friendly with their employees to cope with their isolation knowing they get the day-to-day stresses with which the owner is dealing. But that becomes a management problem within the business and makes it almost unthinkable to furlough them when times get tough.

Business owners are seen as “having it all together” not only by their friends and the public at large but also by their families.  I can’t tell you how many times I have interviewed a business owner during an analytical survey of their company who was showing a loss on their P&L only to discover he (or she) had not told their spouse. And let’s be honest, men, we are more guilty of this than our sisters-in-business. That stinkin’ EGO of ours gets us in trouble and then cuts off the support we so desperately need!

So to you advisors of these stalwart but hurting heroes of our economy, reach out to them! They need to know there are people and places that can be safe for them to unmask their pain.

Bankers, attorneys, wealth advisors, CPAs, insurance agents, consultants, accounting firms, HR firms – any trusted advisor in their life can just BE THERE for them and let them know it is OK for them to share anything that is bothering them.

If you are in a role they might not feel comfortable due to the business relationship (like their banker), try suggesting they might want to talk to a friend of yours.

As Charles Dickens wrote in the Tale of Two Cities, “It was the best of times, it was the worst of time…”  We have been brutally snatched out of “the best of times” and forced into what is arguably “the worst of times.”

As a man of faith, I would that all men and women would seek guidance from the Creator of us all to lean into Him and His wisdom for our individual and corporate deliverance.

Let’s all be there for each other as we walk through the valley of shadows.

Ralph Watson

Ralph Watson has a varied and extensive career spanning 45 years of increasingly responsible positions in both sales and operations in a very diverse mix of industry specialties, including food processing, textile and apparel, financial services, and professional management consulting.

 

 

Ralph served as a Senior Executive Analyst with a number of international consulting companies focused on the family-owned, privately held market where he distinguished himself as one of the top analysts in a highly competitive field.  In early 2014, he personally coached 10 businesses in Europe.

Ralph C. Watson, Jr.    404.520.1030

Ralph.Watson@BeGreaterFaster.com

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Are You Loyal to Your Customers?

Doug Reifschneider

We love our customers

Loyalty, not such a long time ago, was a fairly easy thing to cultivate. You give a punch card or green stamps (or even wooden “round-tuits,” some of you may recall) to your customers, and they reward you with frequent visits or purchases so they can earn the points or badges to pocket free stuff.

Even today, as businesses like restaurants, retail stores, airlines, and hotels work to digitize and mobilize loyalty programs, customers still find it exciting and compelling to rack up the rewards.

But a funny thing happened on the way to the bank—loyalty, it seems, can be a fairly fickle concept—and even with the ease of participating in today’s e-programs, they don’t seem to be creating the brand affinity and “stickiness” that companies crave.

In fact, a third of customers will vote with their feet after a single instance of poor customer service, according to one survey. Keep ‘em happy, however – with outstanding personal service, great products, and minimal gimmickry—and you have an 80 percent chance of cementing that loyalty.

The message here: Being loyal to your customers, in today’s uber-competitive landscape, is as critical—if not more so—as customers being loyal to you.

If it seems like the script has been flipped, you’re right. In the days of Loyalty 1.0, those green stamps paved a one-way street of loyalty, from consumer to company. But now, in the world of Loyalty 1.5, with the ability to gain insights through apps, clicks, interactions, and views, it’s easier than ever to open a reverse lane of loyalty traffic from the company, right back to the customer.

So, let’s step back for a moment and think about what we really want to do. How do we tool our loyalty programs to demonstrate our love of, and affinity for, our consuming public? And, in particular, how do we replicate this online, without the benefit of the human interaction that comes with bricks-and-mortar businesses?

How to be loyal to your guests

Here’s an example using a counter service fast-casual restaurant concept.

Imagine if you will, striding into a local fast-casual restaurant near your office.  You’ve been in about once per week for the last two months because it is close, and you like the food.  You decide you’re in the mood for their grub again for lunch, so you cross the street, walk in the door, and take your place in line.

As you wait, you look at the menu and think about the meeting you just departed. Now, you approach your cashier, Susan (you know because of her name tag) and she looks up and says, “Hi, Mr. Smith! Great to see you. Would you like the usual today?”  You are shocked she knows your name and are impressed she knows your usual order. You reply, “Yes, please,” and add a drink. Susan goes on to say, “Mr. Smith, you’ve been in a lot recently and we love serving you.  Lunch is on us today!”

In this scenario, it’s easy to see why you would be floored. Susan not only knew your name, but she comped your meal too. The rest of the experience is equally as stellar (clean restrooms, a spotless restaurant, a follow-up visit from the manager) and you return to the office and tell six of your co-workers. The restaurant was loyal to you — which created an emotional bond, and the intensification of your love for that restaurant brand.

Loyalty 1.0 and 1.5 promised the ability to scale loyalty, and in most cases it did. But to add personalized messaging – like that offered by the restaurant chain — and to attempt to be loyal to your guests on this type of grand scale, takes time and a mastery of technology. Is your company up to the challenge?

If you’ve been around for awhile, perhaps you felt a little déjà vu when you heard loyalty platforms would save your team time?

Many years ago in a galaxy far, far away, a similar promise was made…

The Machine of The Year – 1982

Promise to save time

At the dawn of personal computing, and before PCs and laptops became ubiquitous, we were promised that these gizmos were going to make our lives easier and give us more time to enjoy life.

The impact of the Apple II and the IBM PC was fully demonstrated when Time magazine named the home computer the “Person” of the Year for 1982. It was the first time in the history of the venerable publication that an inanimate object was bestowed with this award.

An excerpt from an accompanying article, “A New World of Dreams,” painted a rosy picture of a promised future:

“…Point is, it will save you time. Time time time. And we need all the time we can save. Can’t kill time without injuring eternity. Thoreau said that. Great American, Thoreau.

You say: Why should I want to save time? I hear you, friend. I hear you. You wonder where it gets you, saving all that time when you think about old Henry Ford’s gizmo that was supposed to save a peck of time. Only instead of conquering the open road, we wound up living on it. You’ve got a point. You a college boy? But this is the country of the A-bomb and the zipper. We always save time, good and bad. Tempus fugit. Time is money. Most of all, time is dreams. And computers give you time for dreams.”

Loyalty 2.0

So, how do we upgrade to Loyalty 2.0? How do we blend all that we have learned to produce a loyalty relationship with our clients that is as strong as the one we wish them to have with us? A good starting point is to replicate the 1-to-1 experience – with as much richness as we can – in the digital universe.

For a Loyalty 2.0 program to succeed, it needs to have a few of the following features:

  • Social media integration
  • Detailed analytics
  • Targeted email marketing
  • Targeted text message marketing
  • Smartphone integration and an app
  • Software that’s integrated with POS
  • Segmentation tools
  • Campaign tools
  • Customer recognition
  • Loyalty automation

The last four points are the most important. Most Loyalty 1.5 platforms lacked automated campaign and segmentation tools. Or, took too much time and effort from your teams to create the kind of personal connections we are advocating for now.

To get your company on track quickly, you might consider a provider like Punchh, LevelUp, Paytronix, and others that live in the Loyalty 2.0 space.

All of these are vendors that are purely focused on the B2C experience. They are dedicated to providing clients with a mobile-first strategy. It makes it easy to analyze customer behavior, generate insights, and develop sophisticated marketing automation. And it makes customized campaigns and promotions possible. Most offer deep integrations with leading eCommerce/online ordering, POS, and payment providers. All that provides marketers with a single view of the customer for omnichannel engagement across physical retail and digital channels.

Are you ready to take a leap forward into the world of two-way loyalty? By adopting a Loyalty 2.0 mindset, you will find it easier to be loyal to your customers. However, you’ll still need to commit corporate resources to execute with success if your customers are to feel the love.

 

Doug Reifschneider
Doug Reifschneider

Doug Reifschneider is a dynamic results-oriented, data-driven professional, Douglas drives nationwide growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position. With 25+ years of executive marketing experience, he strengthens brand equity with resonating positioning strategies. He uses successful marketing programs and innovative marketing campaigns that boost revenues. An innovative leader with strong team-building and collaboration skills, his strategic initiatives generate substantial shareholder and franchisee value and open new revenue opportunities.

Thank you for visiting our blog.

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

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Buying Local: How Multi-Unit CEOs Can Win at Marketing in Anytown, U.S.A.

There was a time, generations ago, when buyers didn’t venture too far from their home to satisfy their basic needs. Today, most consumers don’t think twice about using a few keystrokes to get the necessities shipped from some distant warehouse to their front door.

Despite this phase shift, “buying local” remains a relevant concept and even a source of pride for communities that rally around the brick-and-mortar businesses that still dot the landscape.

So, in the face of Amazonian-sized efforts to get consumers to do otherwise, how can you, as a multi-unit CEO, provide the necessary marketing support to your local units to keep the lifeblood flowing?

Local store marketing, or LSM, though not easy, isn’t really that hard. Once you commit to a strategy, the actual motions can be exceedingly easy. Nonetheless, LSM requires patience, commitment and resources; and execution can be time-consuming and tedious. And unlike online marketing, where data flows in both directions, many LSM efforts are still measured by feet (the human kind), and not 0s and 1s.

So, how do we define LSM, and what are some key considerations to foster success?

LSM – A Definition

First, let’s consider the following examples:
• A local restaurant drops off a catering menu to your office.
• You notice that a little league baseball team is sponsored by the local hardware store.
• You encounter three dry cleaners within a mile of where you live, each with a sign that promotes their price or extra benefits.

Of these, which would you consider to be LSM? If you answered “all,” you would be correct. Whether you know it as guerilla marketing, shoe-leather marketing, neighborhood marketing or even just plain old “local marketing,” all of these fit the definition of LSM – marketing and advertising for a small business location to augment other national or regional marketing, IF the small business is part of a larger brick-and-mortar chain.

Lather, Rinse and Repeat

To be effective, LSM has to be executed every week, all the time. Sponsoring a little league team once, or replying to online reviews twice per year, or buying an ad in the local shopper twice is what we at Chief Outsiders call “Random Acts of Marketing” – those sporadic and non-strategic one-offs that do little to move the needle.

To be truly successful, LSM needs to be a fixture of every local store’s marketing plan – in the words of Vince Lombardi, “it is not a sometime thing, it is an all the time thing.” The best way to make this happen is to commit resources to it as part of your overall marketing mix. Since it typically comprises but a small percentage of your chain’s overall marketing budget, it is built for endurance – not speed – so you need to be patient with the outcome.

Site Awareness is as Important as Brand Awareness

I’ll share a true story about an experience I had when I was at Firehouse Subs. The story takes place several years ago, when online reviews weren’t yet a big thing, and mobile didn’t have the pervasive influence that it does today.
It was at a time when Firehouse Subs had about 300-400 restaurants, and we determined that, without the air cover of regional or national advertising, we had to do something to jump-start sales and get franchisees engaged.
One way we did this was by conducting “Founder’s Tours.” The co-founders, COO and many of the rest of the HQ staff went on bi-weekly road trips, known as Founder’s Tours. On one trip, we pulled up to a restaurant in central Florida and clamored out of the bus. There were 12 of us on the bus that day and when we arrived at the restaurant at around 9:30 a.m., we were given a map of neighborhoods and businesses to visit and bags filled with catering menus, courtesy cards, cookies, and chips. Of course, one person had to remain behind to be the sign waver.

That’s right – the sign waver. That’s because the two primary LRM tactics we were modeling for the franchisee were:
1. Neighborhood canvassing to get to know your neighbors
2. Sign waving to draw attention to the location

Shows example of sign waving
Sign waving in the rain

While I waved a large sign with a Firehouse Subs logo on it, six teams of two people each went into the trade area and visited as many other local businesses as they could in about two hours. When everyone returned to the restaurant, we debriefed.

Here’s what we learned:
• Each team covered a distance of about ¾ – 1 mile from the restaurant
• Most businesses were happy to receive the “free” goodie bag
• About 75 percent had heard of Firehouse Subs (Brand awareness, yes!)
• Over half of those visited did not know of the specific location of this restaurant

I’ll let that last bullet point sink in for a moment. Over 50 percent of the people we talked to within a mile of the restaurant had no idea they were less than a mile from the restaurant. Had this been a new location, site awareness would have been expected to be low. Unfortunately, the business had been open and operating for more than 4 years at the time of the Founder’s Tour visit.

That’s when we realized that brand awareness is one thing, and site awareness is another. Having brand awareness without site awareness is worthless.
How can a small business let potential customers in their trade area know where it is located?

Be active in the community, get to know your neighbors — and be visible.

In other words, commit to local marketing for your locations, and be found.

About the Author

Doug Reifschneider is a dynamic marketing leader with 30+ years of experience in the restaurant industry and a demonstrated history of driving growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position.

Contact Doug at:   reif78@gmail.com

Thank you for visiting our blog.

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

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The BEST Consultant!

 

Where no counsel is, the people fall: but in the multitude of counselors, there is safety.  Proverbs 11:14

I have a lot of professional friends who are consultants in a variety of fields of discipline, as am I. So this blog post is not intended to slam any of them or any other consultant or advisor.

I’ve worked with hundreds of business owners over the years and I came to the realization over time that businesses try to talk to their owners!

A business will try to tell their owner if someone is stealing from them, or if their scrap or rework is too high if their marketing isn’t working, which employees are most valuable, which customers are making the most of their profits if their productivity is slipping, and on and on – – –

The question I then ask these business owners is: “Do you have the ‘ears’ to hear what your business has been trying to tell you for the last 20  years?”

It’s humorous when they non-verbally shake their head side-to-side, acknowledging that in fact, they can’t!  Their business IS their VERY Best consultant, but they can’t understand what it is trying to tell them because they do not have it structured to provide its wisdom in an understandable “language.”

It’s like a radio station broadcasting EVERYTHING about the business 24/7, but the business owner doesn’t have their “receiver” set to the proper frequency!

You may have seen the NetSuite commercial where the founder says, “If you don’t know your numbers, you don’t know your business!”  And he is absolutely right!

Most business owners understand the fundamentals of a P&L – income and expenses over time. They can look down the expense sheet, see “Telephone” “$350!” “Got it!”

But put a Balance Sheet in front of them and the fog starts rolling in!  And most have never even heard of a Statement of Cash Flows!

But this “Three-legged Stool” is designed by CPAs to primarily do their taxes, and they are by design and utility, historical records – a ‘backward’ look at the business. In a sense, it is like driving down the road with the windshield of their truck painted black trying to steer by looking in the rearview mirror!

Business owners need FORWARD-looking management reports that can tell them on a daily, or even minute-to-minute, basis, where they are going.

One critical report is an Exception or Variance Report! But the business owner MUST have a BUDGET before they can have an “exception!”

I always ask the business owner if they have a budget, and if they say “No,” I assure them that they DO in fact have a budget, the only question is: “Who wrote it?”  Because if the business OWNER did not write the budget, the BUSINESS is writing it for them!  And it is an UNCONTROLLED Budget!!  Not one that drives increased profitability!

The other essential forward-looking management report is a KPI or Flash Report or a Dashboard report that captures all the data most relevant to the performance of the business. These must be custom designed from an in-depth analysis of the business and its processes.

In closing, many small to mid-market, privately held companies need help with their basic accounting package to get their Chart of Accounts cleaned up and a budget added to their system. Another sign that this has to be a priority is if there are maverick spreadsheets or other rogue financial reports being utilized in the operation OUTSIDE of the main accounting system.

So, take heart, my fellow consultants!!  Just get comfortable being the SECOND BEST consultant your client has AFTER you help them get their financial reporting house in order!!

Ralph C. Watson, Jr.  404.520.1030

Ralph.Watson@BeGreaterFaster.com

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

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Things Will Change – New Habits Will Be Created

Early in my career, I learned that it is unwise to rebuild a retail outlet on site when there is an option to build on another site better positioned to serve the trade area.  Taking an outlet off-line for reconstruction, forced our customers to seek alternatives.  They began shopping with other brands, creating new habits.  And, the rebuilt outlet seldom regained their full sales volume.  It was a bad investment.  Building a new outlet in a better location avoided the lost revenue while creating excitement for the new store.  It was usually a better investment.

Once a new shopping pattern is established (read – a new habit), it is difficult to revert.  This experience gives me confidence that the effect of the Covid-19 outbreak will create new habits and accelerate other trends.

Trends to Watch

  • Improved/Greater Focus on Personal Hygiene
  • Remote Working
  • Internet Shopping/Home Delivery
  • Tele-Medicine
  • Virtual Meetings

The first change I expect is an increased vigilance toward sanitation.  It is obvious that people are likely to become accustomed to washing their hands more often, hopefully using anti-bacterial soap.  It’s reasonable to expect retailers and other employers to adopt measures to better protect their customers and employees.  Who knows, this might lead to a reduction in overall flu cases, reducing absenteeism.  Even now, I have a client in the Janitorial Services Sector who is generating significant add-on sales from an innovative sanitizer product.

My friend Faith says that this pandemic will be the catalyst to make telemedicine a more widely accepted modality of care. “Telemedicine has been operational for 40 years.  It has had a tremendous resurgence since 2016 and continues to increase in utilization.  Telemedicine, including telehealth, is viewed as a viable option to access needed care.  Copays and other fees are being waived both for commercial and Medicare patients.   The virtual platform that is steering patients will become more widely accepted and utilized. There was already a push for digital applications to handle chronic conditions, urgent care, follow up visits, and medical consultations.  It will be difficult to resume pre-pandemic modes of care.”

As I begin my third day of voluntary quarantine, I have changed the plans for our monthly meeting in favor of a ZOOM meeting.   Based on government guidance, I decided to conduct a virtual meeting instead.  It isn’t as useful from a networking perspective, but the content of the meeting will be presented well, and I will record the meeting for future reference.  I am hearing that many of my colleagues have been engaged in virtual meetings this week.   I imagine that many will become more accustomed to virtual meetings during this quarantine.

As people work from home for the next two weeks, many managers who are uncomfortable with remote working will have an opportunity to change their thinking.  Imagine the overall benefit of working from home. Less commuting time via automobile will benefit employee mental health and productivity while lowering the cost of owning an automobile.  The benefit to the environment and maintenance of infrastructure will be enormous.   Mass commuting to and from work by automobile is no longer practical or sustainable.

Yesterday, I heard that Amazon.com is hiring another 100,000 workers.  It’s safe to say that the home shopping trend, including restaurant delivery, will experience a surge of growth.  One can imagine how restaurants will change their business models to accommodate more home delivery.  I expect the creation of outlets providing delivery and carry-out only, without any accommodations for dine-in customers.  This is a huge opportunity for grocery stores as well.

For the next two or more weeks we will be living outside our normal patterns.  Disruption of our typical routine will certainly result in the creation of new habits.  Working from home, making greater use of technology and new applications will reveal better ways to accomplish our work.  I expect that our quarantine will be a catalyst for accelerating change.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

 

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The Coronavirus’ Effect on Businesses and How HR is Managing It

The Coronavirus Disease 2019, or COVID-19 has officially started spreading in the United States as many predicted it would. We’ve all seen the precautions to take and how to prepare at home, but what exactly does this mean for your business? In this state of unpredictability, we recommend that companies take steps to make changes and updates now. It is important to build resiliency, stability, and become better equipped to survive through such challenging times.

 

Employers need to also consider the increase in absenteeism and consider cross-training personnel, so they are able to perform other work duties than their own in case this becomes necessary.

 

Jim Cichanski, CEO of Flex HR, Inc. a full-service Atlanta based Human Resources firm, advises “the biggest thing to do if you have not done so already, is create a written plan for emergencies (from bad storms like tornadoes, emergency closings, to viruses) which may mean updating or adding to your current Employee Handbook and or company policies.” First and foremost, meet with management as to how to correspond and carry-out the company procedure. Furthermore, communicate this information with your workforce immediately to lessen the emotions and anxiety associated with the hype. Encourage an open dialogue and share newly determined action plans or ones in development.

Some of the major companies such as Coca-Cola, Google, Amazon, and IBM have already put tactics into place such as asking those employees that have traveled out of the country to voluntarily work from home for two weeks as a preventive measure. Others have asked their workforce to limit travel plans or have canceled previously arranged international business trips. You may want to take similar actions.

Here are 5 things businesses should do now to prepare:

1. Revisit company policies and allow flexible alternatives.

Regardless, if employers break down their paid time off from their sick days, employees often come to work with a cold, so they don’t have to use up one of their days. Of course, no one wants for a co-worker to come to work sick, but they do so in order to save their days for when they are very ill or if their child must stay home from school sick. The Centers for Disease Control (CDC) and Prevention have recommended that employers establish flexible, “nonpunitive” policies, encouraging employees who are sick or exhibiting symptoms to stay at home. A spokeswoman from IBM noted, “IBM is having employees work from home where recommended and deciding on participation in large meetings and trade shows on an individual basis.”

Often small companies may not be able to afford all the luxuries like paid time off, or even allowing employees to work from home as a large company may be able to afford. There is no law stating you must pay non-exempt (hourly) employees if they are not at work. For the smaller firms, HR may require employees to use up paid time off, however; in doing so managers will need to open up their policies and allow employees to use paid time off prior to accruing the hours. A simple rule would be to grant them the total years’ amount of accrual, even if they have not earned it yet.

2. Sanitize first. Then sanitize again. And sanitize once more.

It’s an obvious statement that every single person should be following multiple times each day, but with the Flu and now Coronavirus its more essential than ever to stress that the entire workforce should be practicing virtuous hygiene measures. HR knows the prominence of the handwashing posters that should be placed near sinks and restrooms in the office, so now is a good time to ensure these are all in place instructing employees to clean their hands often with an alcohol-based hand sanitizer that contains at least 60-95% alcohol or wash their hands with soap and water for at least 20 seconds. You should also highly consider putting up temporary posters all over your office recommending “Wash Hands Frequently” or “Sneeze into your Elbow” to prevent spreading viruses. Provide alcohol-based hand sanitizer throughout the office (maybe even at each worker’s desk), tissues and disposable disinfecting wipes. Furthermore, check-in with your firm’s cleaning team to guarantee they are consistently wiping down all surfaces, and especially those that are frequently touched such as doorknobs, keyboards, remote controls, desk areas, and the kitchen after each workday.

3. Confirmation of positive Coronavirus test.

If an employee is confirmed to have Coronavirus it is mandatory that the employer notify fellow employees of their possible exposure to the COVID-19. Employers do not need to mention that person’s name under Federal Law, but that there has been a confirmed case and others should be aware. Anticipate that staff may be fearful and anxious and that some rumors will need to be addressed to properly convey the facts of the matter. If an employee feels well but has a sick family member that tested positive for Coronavirus at home, they should inform their manager right away to determine if that person is able to work from home as a precautionary measure.

4. Serious COVID-19 Outbreak preparations.

Every day we hear about the Coronavirus headcount increasing as well as expanding across the U.S. Employers should prepare by putting action plans into place quickly and communicating with your workforce that there is a strategy should it need to be applied. Continue to reassure your staff that the risk of exposure is very low at this time. And although the risk is minimal, employers need to recognize and protect those workers that may be at a higher risk for adverse health complications or be ready to take action to reduce transmission among staff. As people travel to other countries and return to the USA, they may be at risk of this virus or carrying it and not even know. So be knowledgeable and get prepared. Employers need to also consider the increase in absenteeism and consider cross-training personnel, so they are able to perform other work duties than their own in case this becomes necessary. Talk with managers about what work they may need to absorb or what projects they need to delegate to others in this scenario.

5. Ensure technology plans are in place.

Many companies do not have work at home policies, so preplanning is crucial in the event that it becomes necessary for a portion, or an entire organization, to telecommute temporarily. System connections, access to computers and internal networks all need to be predetermined prior to someone simply working from home. Transferring of phone calls and incorporating all the details needed to make that work smoothly needs to be considered and also written out so if the time comes to integrate plans, the process can be easily followed. If your company has an internal IT department be sure to strategize with the team as soon as possible. During this unknowingly challenging period, it’s crucial that Human Resources departments are planning for the worst. Business owners, managers and especially HR ought to take the time to review and update company policies allowing flexibility, communicate the updated protocol, practice hygienic routines around the workplace, create an emergency strategy that includes technology back-ups and telecommuting procedures in the event an employee becomes ill and/or business closure is indispensable.

Flex HR serves almost every industry in all 50 states, including Georgia, Florida, California, North Carolina, and Tennessee, as well as Puerto Rico, the Virgin Islands, Canada, and Europe supporting U.S. subsidiaries of foreign-owned companies.

Our Flex HR specialists serve thousands of different organizations, in countless industries, varying from a few to over 75,000 employees.

To Learn More about Flex HR Contact Us.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

 

 

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Starbucks Meets WeWork at the Automobile Service Center

By Jim Weber and Mark Grace

i’ve learned that it is a big mistake to ignore my automobile’s  ‘check engine’ light.  I’ll admit, there was a time when I viewed the indicator light as a suggestion.  Not anymore.  I respect the ‘Check Engine’ warning light and take immediate action.  Often, a failed sensor is the problem. Sometimes, when a sensor fails it cannot provide the automobile’s onboard computer with the information required to ensure the proper functioning of the engine.  In other situations, the issue may be more serious. In any event, it means a trip to the service center.

Two weeks ago, a few indicator lights activated on the dashboard of my Nissan 350-Z, including a Check Engine light.  The Z was a little difficult to start and the engine was operating below par.  Of course, I took the car to the Nissan dealership for service.

As I was the first person in line when the service center opened, my need was processed immediately.  In addition to the ‘Check Engine’ light, I asked them to check my air conditioner, as it wasn’t cooling properly.  The service attendant was courteous and efficient.  He printed a list of items to be investigated with a cost estimate for the diagnostics.

After completing the service order, I was directed to the customer lounge to wait for their evaluation.  The owners of this Nissan Dealership had recently completed a major remodel.  I suppose, remodel is not entirely accurate as they razed the old building to be replaced with a modern facility.  I was not prepared for the utility of the waiting room.  It is easily four times larger than the original.  The adjacent restrooms are larger and more presentable.

The new lounge is more like a WeWork or Industrious office center.  There are workstations and comfortable pit groups with over-stuffed chairs.  The dealership offers free Wi-Fi and an ample number of electrical outlets for computers or to recharge smartphones.  It is comfortable and well lit. An ample assortment of free beverages and snacks are provided.  They offer single-serve coffee service, with a wide selection of flavors.  There is juice, water and soda, packaged snacks, power/breakfast bars, and fresh fruit.  At some point, a few dozen fresh donuts arrived.  I passed on the snacks but enjoyed several cups of French Roast Coffee.  There is a big-screen television tuned to HGTV and another screen for viewing the work in the garage.  I was blown away by the new lounge.  It’s like a combination of Starbucks and WeWork. If I had known about the amenities available, I would have brought my laptop and stayed in the customer lounge until my car was ready.

Almost immediately after my experience with Regal Nissan, I called my friend and colleague Mark Grace. Mark is an industry expert and guru on customer experience. He has trademarked a term for customer experience called Experidigm (see experidigm.com and his eight books).  An experidigm is not just the product or service, but all the actions and feelings the customer might have related to the experience now, later, and as the product is integrated into their lives.  It was my intention to share this experience with Mark to learn if the Nissan Dealer is providing a competitive customer experience.  Also, as I thought it make an excellent blog post, I wanted to enlist Mark’s contribution, which follows.

Mark Grace

This is a great example of the shift from selling a product or service to delivering a complete experidigm of related customer activities. Yes, customer waiting is a major activity in the car repair business. Waiting is part of the experience. We’ve all waited for hours in a cold, damp, smelly, repair place staring at an ugly, cracked linoleum floor.  Compare that to Jim’s waiting, or should I now say, productive working experience. Jim might come back for more activities. The dealer could schedule quarterly events, to showcase new cars, accessories, or services.  There is a large list of activities the dealer can consider, some of which could become profit centers.

Today, consumers can choose from over a billion products.  The opportunity is integrating products and activities into a complete experience or experidigm. Brands that create experidigms, will acquire lifelong customers. Think Airbnb for staying overnight or Uber/Lift for getting from here to there – the complete experience is covered and growing larger.  Any product can be made into an experience. Customers create eperidigms by integrating the product into their lives. Brands can take the lead, increasing their profitability by enhancing the customer experience.  Let us show you how.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

 

 

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Part IV – It’s Not Who You Know, It’s Who Knows You! An Interview with Susan Knox of Corporate Connections

Susan Knox CEO Corporate Connections

Susan Knox of Corporate Connections is a tenth generation Georgian, with an exceptional reputation and network.   I am so pleased to have her on the ITB Partners Team as her business is unique and her personal story is compelling.  In fact, I thought you would find her story so interesting, I convinced her to sit for an interview.  This is the fourth and final installment of our discussion.

Jim:  “What do you recommend keeping one’s network alive and active?”

Susan:  “I say to make a list of people in your network. People you know from the PTA, your CPA, your Lawyer, someone in the church, your neighbor, or your kid’s baseball coach/parents. Literally, anywhere you have relationships, make a list of them.  Include people that you know who are either influencers or high-profile people who are actively networking.

 “One of the biggest deals I ever got was from a dentist.  I went to a new dentist and he asked me what I did.  I told him that I connected companies with capital.  His next patient told him that he had started a new company and that he was looking for money.  The dentist made the connection and I landed a great deal.  It’s because I visited him (dentist) and told him about my business. You would be amazed where new deals and new clients, or new employees can come from.” 

 Jim: “Absolutely.  As I tell folks, Executive Search is like pure marketing, as everyone I talk with is either a potential client, a potential candidate, or a referral source to a potential client or candidate.”

Susan: “That is so true! ” 

 Susan went on to say that it is important to “say yes to new networking opportunities.” She said that to build your reputation as an influencer you must be visible so people will include you in their events.  She mentioned that she attends seminars and summits, not so much for the value of the content, but to meet the people that attend those events.

Jim: “What is the next thing you see for Corporate Connections?”

Susan: “Okay!  Great Question.  

“At the moment I am overwhelmed with new clients, and I am so grateful for that.  But I think I need to start conducting professionalism workshops.  Because, as you said, people often don’t know what they don’t know.  A lot of them grew up behind a (computer) screen and they don’t know the social graces. They don’t know how to shake someone’s hand, to look them in the eye, or how to dress.  I tell people that you are the CEO of your life.  You are your brand, regardless of where you are.  So, you had better protect it (your brand).  You must know what you are doing. “  

Jim: “Yes, if you step it up, and wear a jacket you can stand out.”

Susan: “I remember a time when I represented a Wealth Management Firm.  The Managing Partner asked if I would talk to one of the younger guys, a real ‘up-and-comer.’  He was a runner and wore a sports watch.  The Managing Partner wanted him to wear a dress watch.  Another situation was with a female who wore (gaudy) colored nail polish.  I helped them learn the value of proper attire and etiquette.  I tell people, ‘when you walk into a room, you notice people who are very well-dressed and put together. They just stand out.’   People are attracted to successful-looking people.”

 “I say the more high-tech we go, the more ‘old school’ I get.  People really appreciate a handwritten note or a phone call.  I have started working very hard to have more personal connections.   But you know, Jim, I’ve always been about my clients and my members.  I have focused on helping my clients with their social media, but not for mine (social media).   I can use social media to showcase the value of my network.   Going forward I aim to be more visible on LinkedIn.” 

Jim: “Thank you so much, Susan!”

Susan: “Oh, thank you!  It was fun.”

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

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Part III – It’s Not Who You Know, It’s Who Knows You! An Interview with Susan Knox of Corporate Connections

Susan Knox CEO Corporate Connections

Susan Knox of Corporate Connections is a tenth generation Georgian, with an exceptional reputation and network.   I am so pleased to have her on the ITB Partners Team as her business is unique and her personal story is compelling.  In fact, I thought you would find her story so interesting, I convinced her to sit for an interview.  This is the third installment of our discussion.

Jim: “What is your motivation?  What gets you out of bed every day?”

Susan: “Number one, I love having great people around me.  When I say great people, I mean people with integrity, who are smart, and ask ‘how can I help you first.’ They aren’t takers.  They check their egos at the door; men and women, who are genuinely good people.  I love having that as my nucleus and I thrive on meeting new people. The capital of my company is my relationships.  I think that relationship capital is under-valued currency.”

Jim: “So you wouldn’t call yourself an introvert.”

Susan: “No! I could not do what I do if I were an introvert.” 

Jim: “You said you have three brothers, older, younger?”

Susan: “All are older, I am the youngest.  I learned a lot from them. My dad treated me like a little princess. He also taught me to be fiercely competitive.  I could outrun them, swim across the lake underwater, and not come up (for air) because I was not going to disappoint them.”       

“I have a very competitive spirit.  I like to win.”

Jim: “How would you describe your clients, is there a common denominator?  Industry segments for example?”

Susan: “No, there isn’t. It’s really across the board.  I have three companies raising capital, a very big software development company, and a marketing company.  My clients also include a Law Firm, a Bank, and a CPA firm.  My Network and my clients are much the same.  I work with them on retainer until they feel they have gotten what they need and then flip them into the Network, my board.  My clients are a feeder system for my Network.   I want to make sure the members of my Network, work well together.  When I started my network membership, almost two years ago, I did not want to become industry-specific and have one member per category. It is not a leads group at all.  It’s totally about relationships and bringing people together that can be top of mind, where likes attract likes is the kind of group I wanted to build.”

Jim: “What was involved in creating Corporate Connections?”

Susan: “Well, I will never forget my first meeting. I invited people I knew well.  I called it “An evening of introductions.’ I am still using this title today. Nobody knew what to expect, because there was nothing like it at the time.  I was mixing people who should know each other.  I served wine and beer and went around introducing them.  One of my signatures is to have people introduce themselves (to the group). There is nothing better than knowing who is in the room with you so you can immediately pick out someone to meet. I learned early on to combine socializing with facilitated introductions, and then to follow up.”  

 “Through the years I’ve learned to give people the most for their time.  I learned to slow down, work the room, and let people know why they need to know each other.  I learned is to make a personal connection; mention that they both like to play golf, or they might be avid tennis players. Maybe their kids go to the same school or they are both Clemson Alumni.  I get to know my contacts so I can say something personal about them.  It takes some of the stiffness out of the room.”

 “I want to know about their passions. A lot of my contacts are willing to give back their time and their money.   Some want to be a mentor or to serve on a board.  So, for me to know your passion is important.”  

 “This morning I was with six hundred women who work with children that don’t normally have access to something like Westminster.  It is called Odyssey. These women all have a passion for giving underprivileged children a hand up.”

 Jim: “That would be an extension on what you are doing with a philanthropic angle?” 

Susan: “And, I tell everyone to figure out ‘what your passion is about and go volunteer.’  Get on a board, help with membership. Do whatever it is that you are passionate about.” 

 

TO BE CONTINUED…

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our 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 very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners