Why Do They Continue Making The Same Mistakes?

Last week, one of my clients filed for Chapter 11 Reorganization.  Now, two of my clients are in Chapter 11, working to find a path back to solvency.  In April, I was engaged by a new client to help them find a way out of Chapter 11. In the case of the two former clients, I can honestly say that I wasn’t responsible for the circumstances leading to their demise.  In other words, I didn’t place any executives who caused these problems, and I haven’t been involved in consulting projects that resulted in adverse consequences.  To the contrary, I placed an executive to help one client navigate through Chapter 11.  Regarding the other client, I placed an executive to help them avoid business failure.   Regrettably, Senior Executives sometimes fail to heed sound advice.  In each of these situations, failure was predictable.  Management failed to adequately penetrate their home markets before moving into new territory.

 

I’ve witnessed the results of many crazy decisions during my career.   Some noteworthy situations include an ice cream brand selling franchises beyond their distribution capabilities.  Or a California-based brand that tried to move into the Southeast with a single location.   I’ve seen Southeastern brands sell franchises on the West Coast, thousands of miles beyond their management reach and distribution network.   A Northern barbecue chain leap-frogged into Georgia with a few restaurants placed across the state.  That decision was funny, in a sad way, as barbecue has a distinct regional appeal.  Another brand added drive-throughs to dogs with the hope of turning them into profitable restaurants.  Sadly, they created dogs with a drive-through.  From my perspective, the most egregious yet consistent mistake is the urge for start-ups to enter new markets before adequately penetrating their home base.  To be sure, many of those mistakes were made by rookies, entrepreneurs lacking experience or solid advice.  However, these mistakes continue to be made by experienced leaders who should know better.

The fundamental axiom for success as a traditional retail brand is market penetration.   Achieving optimal market penetration, also known as market share, conveys significant leverage to the brand.  Greater penetration yields more efficient deployment of supervisory personnel, purchasing and logistics, marketing expenditures, and employee recruiting and selection,  among others.  Developing an understanding of one’s customer profile becomes more accurate with more stores as well as an appreciation for drive time customers are willing to endure.  Additionally, the development learning curve leads to a more efficient use of capital.  And, greater penetration increases brand awareness on the street. This is retail 101. The leverage provided by following this strategy results in a healthy cash flow to be deployed in new markets when appropriate.

 

I can speak with authority on this subject as I spent most of my career working on retail expansion.  I began my career as a financial analyst assigned to the new store development group.  In this role, I performed analytical work on capital expenditures for new stores and other investments.  I learned how to evaluate the prospects for a new store, and the penetration required to optimize the return from a larger market, i.e. city, SMSA, or region.  I became a strategic analyst and planner shaping retail store development strategy for several national brands. Finally, I held general management positions where I was accountable for return on investment.  In fact, one of my first assignments as a senior executive was to identify and prioritize markets for focused development.   As a result, I am confident in my ability to build a retail brand, especially, food-service brands.  I appreciate the value of achieving significant market share before developing new markets.  Believe me, engaging in the development of a new market, before adequately developing a home market can be fatal to a business, especially so for a start-up.

 

So, if significant penetration of a home market is fundamental for success, why does management continue to violate this well-established rule?  Over the years, I have asked this question of countless CEOs, CFOs, and Chief Development Officers.  The only consistent response is “sometimes, management becomes so enamored of expansion that sound business practices are ignored.” Imagine, human emotions getting the better of Senior Executives.  Who knew?   The only solution is to hire accomplished retail development executives, among others, who won’t hesitate to tell the “Emperor that he has no clothes.”

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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

Exit and Succession Planning is a Team Sport

We have advisors and coaches in all facets of life. But in this most important area for our future, for our family and for our retirement, most business owners are pretty much just “winging it”. Oh, they may have an accountant but not much more of a team to focus on exit planning in all its complexities. An advisory team is critical for successful succession planning.

Business owners start their companies to create their future. But they often lose sight of the key to making that future happen – building value. They get caught up in the day-to-day and don’t get to implementing the sustainable, positive change that allows them to transition on their own terms.

Consider: “…78 percent of small-business-owner clients plan to sell their businesses to fund their retirement. The proceeds are needed to fund 60 percent to 100 percent of their retirement needs. Yet, less than 30 percent of clients actually have a written succession plan…”
http://www.cnbc.com/2015/04/13/ew-small-biz-have-an-exit-plan.html   [I would suggest that 30% is generous, and even if accurate, that those plans are not very effective, for growth or for exit planning.]

When I speak on exit planning/succession planning/transition planning, I outline a proven 7-step process. Forming your advisory team is one of those steps.

Build a Team of Advisors.

Nobody knows everything. Many of my clients are in creative industries, designing, creating, building. You don’t want me in that role. But I have worked with many organizations and have a different experience and skill set than my clients. I bring ideas and experience from many industries and many client engagements. The other critical exit planning team members bring their own expertise to the table. These should include:

  • Exit Planning Consultant / Coach
  • CPA
  • Financial Advisor
  • Business value expert
  • Business Attorney
  • Insurance Expert
  • Estate Planning Attorney
  • Banker
  • Business Transaction Expert

When I work with a client, we build this team. The players may already be in place. Or, we may bring in advisors where there is a gap. Either way, we need this core team working with the owner. A business is complex.   A marketing action impacts finance, HR, and more. Big decisions need to take into account the effect on the whole organization and should support clear goals focused on building value.

The client receives much better advice and guidance with this approach.

This does not mean that you are going to start hiring all of these people and employing them full-time as you work toward your transition…especially if you have a few years to go. But, you should use them strategically as you build your business/succession plan. For major decisions on growth, expenditures, hiring, exit-readiness, business value, deal structure…engage their expertise!

The Bottom Line

 Find advisors who understand what you are all about, your growth and exit planning objectives. More importantly, find advisors with whom you feel comfortable. Make sure that they can work together and collaborate on your behalf.

 

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

David Shavzin, CMC
770-329-5224
david@GetOnTheValueTrack.com

The Value Track
Succession Planning / Exit Planning, Building Transferable Value for Sale

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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

Find a Stimulating Place to Work!

This past Wednesday I had the pleasure of enjoying a fine cigar and a few beers with my friend and colleague, Paul.  I haven’t seen much of him lately as he has been traveling.  Our cover story was to discuss his August presentation to ITB Partners and to update one another on our activities.  Well, we did all of that of course, but the real mission was to introduce Paul to my favorite cigar bar.  As a subscriber to my blog you already know that I strive to mix business and pleasure whenever possible.

 

I arrived a little early and noticed that Paul was already there, still in his car talking on his cell phone.  Later, he told me that he was finishing a business call.  Life in the digital age.  I continued inside and went straight for the humidor.  Although it was a bit understocked, I found a favorite brand and paid the attendant.   Paul entered the humidor at that time, so I showed him around.  He made his selection then we lit up, found seats at the bar and ordered our drinks.  After exchanging a few pleasantries, I told him the history of the establishment.  I pointed out that the venue is designed to accommodate people who come in during the day to enjoy a cigar while working.  They offer WIFI and provide ample outlets to charge electronic devices and to power laptops.  In addition to seats at the bar, there are several workstations and a private room suitable for meetings.  I went on to say that I am there at least one afternoon each week, usually working on my blog post.  I confessed that I have branded those visits as “going full Hemingway.”  That elicited a hearty chuckle from Paul.  He was impressed with the venue, including the humidor, and the layout.  We were off to a good start.

 

As the primary business reason for our meeting was to discuss his presentation, we got right into that topic.  Paul wanted to know how to position his talk as the audience wouldn’t be his typical prospects.  I told him that there were two main points to consider.  First, the members want to learn about him.  They want to know his background and how he came to be involved in his current situation.  Secondly, they want to know about his employer and the product he’s selling.  I said, “keep the discussion at 40,000 feet.”  They don’t need to get into the details, they just need enough information to make good referrals.  Also, I told him that I had adopted the Guy Kawasaki 10-20-30 rule for presentations.  Ten slides, twenty minutes, using a 30pt font.  As our members don’t need to hear a lecture or an infomercial, I advised Paul to facilitate a discussion.  He agreed to send me his draft and I offered to help arrive at the final product.  I noticed that his stress level had dropped significantly.  That could have been the effect of the cigar and beer.  Who knows?

 

We moved on to chat about his progress.  He is selling an innovative, one might say disruptive, integrated software package.  Paul began by telling me about a major QSR brand that contacted him to complete a request for proposal, (RFP).  I asked if an internal contact had provided the invitation.  He said no, but that it came by way of an obscure article that spoke well of his product.  I felt instant validation for my resent admonition on the importance of writing articles to leverage one’s brand.   He went on to say that his team built a solid relationship with the client by demonstrating their familiarity with franchising and the challenges of store development.  Apparently, his competition was represented by technicians who lacked knowledge of or an appreciation for the requirements to manage the challenges of a growing franchised restaurant brand.  I said that closing this deal should propel his business to a whole new level.  He agreed and moved on to talk about his negotiations with a non-food franchising concept.

 

Having heard of Paul’s recent successes, I reminded him that we are prepared to leverage his efforts through our social media and public relations platform.  He said he had forgotten about those benefits.  So, I spent the next few minutes reminding him about our capabilities.  He was sold.  My thoughts moved to other possible referrals.  By the end of our conversation, I had a long list of connections to make on his behalf.

 

Paul and I had a productive meeting, as I knew we would.   I have long understood the boost I get from spending time with friends and colleagues in a relaxed, fun environment.  If you don’t enjoy your work, you are probably pursuing the wrong career.  Your job should be fun, so find every opportunity to work in a place that stimulates your creativity and provides personal satisfaction.  You will be glad you did!

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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

 

New Dad, New Town and New Franchise in Four Months

Contributed by Leslie Kuban, President of FranNet in Atlanta

Michelle and Ryan Kinsley are a dynamic young couple who always envisioned themselves as business owners. They were focused on finding a business that would be right for their newly growing family but overwhelmed with so many options. With Ryan’s background as a government analyst, he knew how to do the research, but decided he needed someone with the right franchising experience to help.

 

In just four months’ time, Ryan moved to a new city, bought a new house, welcomed his first child and invested in his family’s future through franchise ownership.  How DID he do it?

 

What drove you to make the leap from a seemingly secure career position to the entrepreneurial unknown?

 

Ryan: My wife, Michelle, and I had been married for about a year.  We were still living in a 1-bedroom apartment in downtown Atlanta when we found out that we were expecting a child.  We realized that we needed to make some life decisions quickly so that we would be ready when our child arrived.  At the time, I was extremely burned out in my position with the government.  I had been reading books for over a year on franchising and small business.  After talking with my wife, I decided to reach out to FranNet to explore franchise opportunities.

 

What were the most important factors in deciding on the business you ultimately chose?

 

Ryan: With a child on the way, Michelle and I knew we wanted to get out of the hustle and bustle of city life.  We both grew up in medium-small cities in Georgia, so we wanted to raise our child in a similar environment.  Finding a business that would work in one of our desired areas was a major factor.  I also wanted to find a business that would allow me to attend my child’s activities and life events. Finally, finding something with somewhat traditional work hours so that I was not always working when my wife and child were at home.

 

You and Michelle just welcomed your first child…how did you think about the timing of starting your family and the timing of going into business for yourself?

 

Ryan: We bought our first house, started a business, and had a child all within four months.  We joke that if our marriage survived that, we can make it through anything.  As I mentioned, the baby was a driving factor in getting this business started so I wanted to get everything up and running as far in advance of the baby coming as possible.

How are you managing so much change at once – a new business and a new family member?

 

Ryan: As the owner of Monster Tree Service of Athens, I tell everyone that all my time is now spent with either the big monster or my little monster.  I put a lot of time into running my business and raising my child, but I don’t do it alone.  I made sure to hire experienced, driven employees who are self-sufficient and can troubleshoot many of their own problems.  Because of this, I am able to focus on the most important issues in growing a company.  It goes without saying that I couldn’t do any of this without Michelle and the support of our friends and family.

 

What advice would you give to young families like yourself wanting to start their own business?

 

Ryan: Be sure to do your research! I can’t stress that enough. Read books, talk to business owners, contact a franchise consultant, and find the end of the internet before you commit to starting your own business.  The right franchise consultant will help you find the right fit for you and your situation. I reached out to Leslie Kuban at FranNet of Atlanta because she has many years of experience in the industry, knows my local market and is a franchisee herself. She took my wants and needs and generated a short list of opportunities that she felt would fit my goals. She never pressured me in any direction, and she was always available to help with any concerns I had.

 

“You will be scared,

but you will also know when you have found the right opportunity for you.” 

 

Do you think he was talking about franchising, new home ownership or the joys of his new family? Perhaps all of the above. Happy Father’s Day from FranNet!

 

If you’d like to explore whether business ownership is right for your family, give us a call today at 770-579-3726 or take our free Readiness Assessment at frannet.com.

__________________________________________________

 

Leslie Kuban

Leslie Kuban is a nationally recognized franchise industry expert, CFE (Certified Franchise Executive) and Market President of FranNet in Atlanta; a locally owned and operated franchise consulting firm.

Leslie and her team have helped close to 500 individuals and families achieve their dreams of business ownership through a no-cost, extensive educational and coaching process. Her personal experience as a franchise owner provides a unique perspective to help her clients assess their real opportunities, risks, and timing to make sound decisions.

Connect with Leslie online or call 770-579.3726 to start the conversation today.

 

 

ITB Partners Expands Reach To Latin America (LATAM)

Nancy Bugarini, Managing Director ITB Partners LATAM

“After months of preparations, I’m thrilled to share ITB Partners officially starts operations in Latin America, to better serve our clients, providing local execution to their global strategies with a multicultural approach.”  Nancy Bugarini, ITB Partners – LATAM

 

 

Nancy Bugarini has more than 20 years of proven experience working for multinational companies in CPG industries and as a consultant, with proven success in Strategic Negotiation, Business Planning, Trade Marketing, and Marketing. Nancy has worked with multiple products across categories and price segments. Nancy has collaborated in projects in Mexico, US & Central America.

Currently, Nancy represents ITB Partners in Latin America, as Managing Director for the region.

Meet The Team

 

Oscar Cardenas

Oscar Cardenas has more than 25 years of proven success working for multinational companies in traditional distribution channels (Wholesalers) in Mexico.

With proven success in Negotiation & Business Planning, Oscar has helped many different CPG brands to gain market share through distribution nationwide.

 

 

Felix Carrillo

Félix Carrillo has more than 20 years of experience developing strategic planning, business modeling, business process management and business intelligence for companies in different sectors (wholesale, manufacturing, professional services, financial sector, government, construction). He has developed projects in Mexico, the United States, Spain, Argentina, Colombia, and Guatemala. His expertise allows him to identify and recommend the key success factors for the business in order to improve its long-term results.

 

Fernando Mazin

Fernando Mazin is a Mexican Business Administration professional who has earned vast experience primarily in the sales and operations fields. Has lived abroad (USA and Chile) and developed his career by working for AAA global consumer products organizations such as Kellogg, Mars, Gerber, and other Mexican industrial leading companies in its fields, such as Condumex and Surfax.

 

Fernando implemented his first successful “Route to market” project in Mexico for Mars, nationally, which accounted to expatriate him to Chile in order to replicate the model in said country.

Other “route to market” initiatives in Fernando’s background are opening a commercial office and a laboratory (technical services and support) for Surfax in Colombia, combined with the exportation of several products to different countries in Central America, Chile, and Ecuador.

In 2005, founded Grupo Delfer, a consultancy firm with the mission to provide value-added services to develop businesses and people, as well as the route to market alternatives for commercialization, focusing in, but not limited to Mexico.

 

Rodolfo Rosales is a fully bilingual professional with an illustrious 10-year track record in executive coaching. He is the founder of IHR Sibils SC, a firm dedicated to implementing strategic solutions for executives facing complex business challenges. Sixteen years working with PeopleSoft as an international eBusiness consultant, together with his current multicultural client base, have provided him with significant experience delivering services in various regions and with different cultures in South America, the Caribbean, the United States, and Mexico. Rodolfo supports his clients to make the most of their unique management skills, using his out-of-the-box understanding, combined with an analytic mindset and heightened active listening skills to foster client development. Through his hands on, dedicated and client-focused work, Rodolfo has consistently surpassed customer expectations; and his expansive knowledge of collaboration, mediation, and conflict management, are continually sought after by clients.

 

Claudia Tello

Claudia Tello has more than 20 years of experience in visual communication, her creativity has led her to be internationally awarded in several poster competitions, such as Poster Ecuator Bienial 2016 & 2018.  BIceBé Bolivia 2013 & 2017, Venezuela 2016.

Her posters have been exhibited in collective exhibitions at Iran, Korea, Italy, Geneva, México, France, China among others. She is part of the Mandela Poster Project in a permanent exhibition at NELSON MANDELA CHILDREN HOSPITAL, South Africa, within Mexico her work has been exhibited in places like Remembrance & Tolerance Museum in Mexico City.

She coordinated the 2012 edition in Mexico for Draw Me Democracy, for the organization Poster For Tomorrow.

Founder and general coordinator of “Escucha mi Voz” project since 2012, dedicated to developing Educational campaigns in favor of civic spirit & human rights using design & art, every year hundreds of artists from around the globe, participate in the yearly contest held by the organization.

Due to the importance of her work, Claudia has been the recipient for several grants, including being awarded twice by the US Consulate in Guadalajara and SOCAP 2018 Scholarship at San Francisco CA. Miller Center GSBI program alumni.  Scholarship “Fondo Semillas” 2019.

She has been invited to collaborate as an instructor by prestigious private universities in the country, she has also participated as a speaker, including TEDx talks.

 

Gabriela Zenteno

Gabriela Zenteno is an Experienced LATAM Marketing Director with a proven history of working in the top financial services and FMCG industries such as Unilever, Nestlé, FEMSA, Brystol Myers and American Express. Strong and solid marketing professional skilled in Digital Strategy, Business Planning, Customer Acquisition, Integrated Marketing, Business Insights, Product Innovation, and Advertising.

Regional Marketing leader with 25+ years of successful experience in massive consumer and financial companies, focus in marketing strategy, activation and acquisition strategies, market research, new products development/launch, strategic planning, advertising development, scorecard tracking, spend stimulation activities and customer/shareholder value delivery.

 

 

Communicate Like a Fortune 500 – 6 Lessons For Start-Ups

By Sebastian van der Vegt, Untold Communications

Thanks to a booming economy, the start-up scene is thriving.  Co-working places everywhere are full of entrepreneurs with innovative new ideas, taking advantage of a digital economy that is providing unparalleled opportunities, the likes of which the world has never seen before.

Yet, statistics remind us of a sobering number.  Among start-ups that manage to attract outside funding, around 70% never make a profit.  Over half of all companies don’t even make it past their 5th year.

So how do you beat these miserable odds?

The answer is that it’s not simple.  You need thick skin, a strong mind, a lot of determination and not just a little bit of luck.  But you can greatly increase your odds by creating an awesome communications strategy and narrative.

By strategy, I simply mean the purposeful use of communication to fulfill your mission – the right message/content, to the right target audience, at the right time using the correct medium/messenger.     Done right, it will inform investment decisions, win over potential clients and investors, and position a company for long-term growth.

Sounds like a no-brainer, but it’s not.  Most start-ups have a business plan, a financial plan and even a basic marketing plan to establish an online presence. Very few have a sound communications strategy mapped out.  In fact, among the start-ups that I’ve come across, I’ve yet to find one that had thought about this.

Some start-ups do decide they need good ‘PR’, usually after about six months to a year into their existence, but they often do it for the wrong reasons, or with little or no strategy.

Just last week, a prospective client asked me if I knew any journalists. “Of course, I do” I answered, “I know plenty,” but explained to him that it’s really the wrong question – see point 5 below.

Initially, most small companies also rely on communications and marketing themselves.  After all, they can write, sell and know their product better than anyone.  Thanks to a wide variety of new digital tools, everyone also has access to inexpensive solutions that help you build a website, post blogs, send mass emails, or do basic marketing.

Being an entrepreneur naturally means they should take advantage of these new tools. But there is a reason that large, successful companies spend millions on communications and marketing, and smaller companies would do well to adopt some of these same lessons.

So here are 6 of my favorite lessons that I learned while working at a fortune 500 company, that could benefit any start-up:

  1. Starting with why is not enough

Most start-ups will have been advised to start with why (thanks to Simon Sinek).  It’s a good start, and better than only talking about what you do, but it’s not enough.

The why is only part of the ‘context’ – which should include why you exist, what problem you are solving for your customers, what gives you the authority, and, implicitly, ‘who’ you are targeting.

Tell the story of how and why you were founded.  If you can, try to make an emotional connection in the delivery, it will make for an audience that is a lot more engaged.   Extra bonus point for telling the story of how you are helping your customers achieve success.

  1. Explain what you do in a few words

Any idea worth its time should be told in a natural way, in plain English, in less than 15 seconds.  It’s more difficult than you think.  For most, this will mean forgetting all the technical language they are accustomed to.  It also means forgetting that 100 other companies make similar claims.

Too many start-ups try to differentiate themselves unnecessarily through complex wording or technical capabilities to prove that they are special.  My advice: differentiate yourself through the way you fulfill a need and address a problem for a segment of the market, in a way that a prospective customer would easily understand.

  1. Include strategic communications in your business plan

A great business plan will benefit enormously from a great communications strategy.

That means that if you need to find software engineers to power your start-up, you need a strategy to boost your brand with the local university.  Go give a lecture, a seminar, or sponsor a hack-a-thon.

It means that if you’re trying to get teachers to use your product in the classroom, you need the right language, the right content and the right medium to reach them.   Partner with a teaching website or school district to give your company message.

It means that if you’re taking on a dominant competitor, be provocative – you don’t use ‘safe’ language that a multinational would use.  Stand out by differentiation, and by not being afraid to ruffle some feathers.

I could go on, but you get the point.

  1. Fit the message to your audience.

While a company ‘boilerplate’ with standard messaging is a great tool to have, you’ll need to adjust your messaging depending on the audience.  One size does not fit all.

Building on point 3, identify your top 5 stakeholder groups that are critical to your growth and write down the key message points and language you would use to communicate and win over each audience.  Once you’ve done that, you can identify the channels/materials in which you can best reach these groups.

This again sounds like a no-brainer, but the discipline of this exercise will help everyone stay on message.

  1. Own your space.

Many start-ups will look for a silver PR bullet.  A write-up in a newspaper, a listing on a top 100 of hot start-ups, a mention on TV.  Great – this may work for you if your story is there and you have something new or interesting.

For most start-ups, their story is not (yet) of interest to receive what we call ‘earned’ media, and they are much better off building their brand in the ‘owned’ space.  This means writing blogs in a medium that you own; it means building a kick-ass website and content across different social channels; it means writing a regular newsletter and industry content for trade magazines.

Often overlooked is physical space – most companies own assets.   You can also consider ‘shared’ media; using your content in partner owned channels can be a win-win.

Point is, start-ups have many options other than selling their story to journalists or buying advertising.

  1. Be authentic & address your purpose

Audiences smell bull-sX#! from a mile away.   In a world where we are bombarded with information and polished content, presenting the real, authentic you is a competitive advantage.  Make sure you tell your story in a way that is compelling, with proof points that are real and relatable.  Also, remember to include a vision that is purposeful and that has meaning.

The company vision is where communications strategy and company strategy really meet.  Why does your company exist? What’s the ultimate goal?

The most obvious and easy answer is, of course, to sell more products & services, but try to dig one level deeper to think in terms of benefits to society. It will not only help focus your company, but it will help motivate your employees, attract investors and ultimately help improve your sales.

 

After spending years working with some of the biggest brands in the world, I love helping smaller companies achieve their goals and vision. It’s one of most rewarding aspects of my new role after leaving the corporate world behind.

That’s not to say they don’t have their own set of challenges; many don’t have revenue yet, lack good time management, have strong opinions, operate on limited budgets, and present solutions in search of a problem.

Yet, despite all of this they’re still my favorite clients (with apologies to my corporate clients).  Quite simply, having a great communications strategy for start-ups can make the difference between failure or success – it’s that critical.

On my next blog, I’ll focus on the basic difference between good and great marketing.  Until then, I look forward to your feedback.

Sebastian Van Der Vegt is the Managing Director of Untold Communications in Atlanta A native of the Netherlands, van der Vegt has lived in Canada, Brazil, Switzerland, and Turkey before settling down in the U.S. He has a degree in Psychology and has taught strategic communications at leading business schools. For more information, please contact him at Sebastian@untoldstrategies.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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

 

For the Sake of Learning

Josh Sweeney Presentation on Culture First Hiring

Recently, a number of info-graphics comparing the habits of successful people to those that aren’t, landed on my Pinterest feed.  A few of their points spoke to reading as opposed to watching television and a zest for continual learning as significant differentiating factors.  Although I couldn’t disagree, I didn’t pay it much attention until a recent conversation with my friend, Faith.  She was excited to tell me that she had just received a tuition reimbursement check from her employer.  As she is working to complete a college degree, she is making good use of her company’s education assistance program.

 

She continued, saying that she valued that benefit and planned to take full advantage of the program.  I agreed with her thinking and complimented her employer for offering the benefit.  However, I lamented that too many employers have scaled back on their training programs and lack cultures that reinforce the benefits of life-long learning.  Naturally, we agreed that it was a topic I needed to explore further.

 

A few days later, Dennis, an alumni buddy, and I were enjoying our cigars and adult beverages, talking about cars. He told me how another friend, John, got him interested in doing his own car repairs.  John showed Dennis how to research the issue, find the right parts, and make the repairs.  Over time, he gained confidence as he accumulated experience.  He has resolved many maintenance issues, like replacing brake pads and rotors, saving a lot of money.  This is a skill set he developed with a little encouragement from a friend.  I know that he takes pride in this ability which gives him great satisfaction.

 

On the other hand, I am reminded of a colleague who had no interest in learning how to use a Personal Computer.  It was a time when PCs were moving rapidly into the workplace but before the introduction of laptops.  He told me, “why should I know how to use a PC, that’s why I have an assistant.”  The irony is that the PC replaced the administrative assistant, except for the more senior level staff. I often wonder how long it took him to catch up to his peers?

 

Much has been learned about the brain that supports the value of lifelong learning.  A healthy body and sound mind is the key to a long and happy life.  The brain is like a muscle, either use it or lose it!   Learning is like any other skill that requires practice.  With practice one masters the subject. Lifelong learning or continual learning is an attitude, a mindset.  If one believes in the importance of learning new information, or skills they will make the effort to pursue that course.  If not, stagnation may develop, putting one’s career in jeopardy.  As a commercial enterprise is a collection of people, an organization, it follows that it would benefit from continual learning.  Building a learning culture is a viable strategy to keep employees interested and engaged, supporting innovation and productivity improvements.  A learning culture creates competitive advantage.

 

I am a big fan of YouTube.  The variety of their videos seems to be endless.  Among others, I have viewed programs to improve my efficiency with Office 365, manage my websites, develop landing pages to build my contact database, and facilitate greater exposure for my brand.  My time on YouTube has increased my productivity in so many areas that I’ve become an addict. The point is, YouTube is a free service.  It’s a platform for brands to build customer loyalty by training to maximize the utility of their products.  Tuning into YouTube seems to be a ‘no-brainer,’ for individual learners, and for employers.

 

It is all too easy for professionals to get into a rut, going on autopilot as it were, as the vicissitudes of daily life take president.  Companies are no different.  They develop successful business models and continue executing that formula, sometimes without noticing the changes happening around them.  Brands that maintain long term relevance, do so by listening to their customers.  They Learn.  The best brands know that their employees are their customers too.

 

Creating a learning culture really isn’t difficult.  One small change can spark a virtuous cycle of change.  Providing education benefits to employees is a good step toward creating a continuous learning culture.   At the end of the day, however, it’s the responsibility of leadership to build a culture for success.

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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

Challenges of Omni-channel Logistics

By Antony Francis , Lakehill Partners

March 17, 2019

Let’s begin with an overview of what omni-channel means. Whether it be B2B or B2C, buyers and consumers expect to be able to source and purchase goods in any combination of methods whether online or in brick & mortar stores and then be able to return them in any way they choose.

This is where omnichannel logistics comes to solve this no-exhaustive list of methods:

  • Online purchase delivered to the buyer’s home or place of business, either via an e-retailer (e.g. Amazon) and either fulfilled directly by the e-tailer (e.g. FBA – Fulfilled by Amazon) or by the manufacturer/seller.
  • Online order sent to a store for local pickup or local delivery from a store.
  • Ability to search availability either in a DC or a local store. This is important when dealing with out-of-stock or back-ordered items.
  • Online order and in-store purchase return management. Customer choice is all important.

Increasingly, customers expectation of arrival times has changed such that same day delivery is becoming an almost standard feature. But at what cost to serve? Last mile delivery networks are challenged to reduce these delivery times without increasing rates to their customers.

Omni-channel logistics is designed to manage inventory flow across all sales channels. It, therefore, comes with its own unique set of challenges. Many of these are not new to the logistics space. They have been known for years. Indeed, one of the principal barriers to eliminating these issues has been technology. With today’s connected systems and the use of distributed ledger technology, we are getting closer to resolution.

Now, let’s look at 5 of the top omni-channel logistics challenges that businesses face:

  1. Lack of visibility in the supply chain.
  2. Poorly executed processes.
  3. Solving transportation conundrum.
  4. Returns Management and Reverse Logistics.
  5. Insource operations or outsource to a 3PL

 

  1. Lack of visibility in the supply chain.

Two key challenges are inventory visibility and visibility once in transit. In short, it means picking and packing the right product and delivering it when expected.

A well-developed Inventory Management System which views stores as mini-warehouses with the same visibility to contact and selection should be coupled to the Order Management System that is fed from various Order Entry points (online or other). Each of these systems has key metrics and dashboards built into them to alert to execution status at any time.

We are always dealing with three supply chain (physical, informational and financial). Once, these were mutually exclusive. That is no longer the case today. Knowing the cost to serve is as important for a business as pick accuracy or fulfill rates as operational metrics.

Once the shipment has left the dock, it is all important to be able to alert a customer when an issue arises in transit and allow interception in-transit and re-routing capabilities. Many TMS products integrate these features including shipment status, GPS, temperature, humidity and shock sensors, etc. It is also important to know which product is in which box when a pallet or multi-piece shipment arrives.

For international shipments, it is critical to integrate freight forwarder systems into the shipment status tracking, in the event of delays in customs clearance.

  1. Poorly executed processes.

A killer for supply chain operations is manual processes that come from legacy systems that have yet to be connected to an updated technology platform. One of the enduring areas is inventory control which often still rely on physical count process engendering slow update and inaccurate counts. As companies grow and restructure or acquire other operations, the integration of these platforms is often painfully slow. The key to solving this supply chain breakdown is to consolidate these processes, rather than let them function in silos.

 

  1. Solving transportation conundrum.

There are many ways to get a product to the customer’s doorstep, whether from a DC or a store. The challenge is to find the most effective and efficient transportation solution to keep customers happy without driving up the landed product costs. Selecting the right shipping method for the right customer situation is essential to omni-channel logistics. This is especially true for returns. They may not require the same speed as used for the forward side.

  1. Returns Management and Reverse Logistics.

The return process for any product should be just as seamless as its initial delivery. In this new omni-channel landscape, customers expect to be able to return products they’ve purchased online in-store or by mail. Companies that don’t offer this ease of return are unlikely to generate repeat business. Implementing sound reverse logistics infrastructure is imperative to good customer service within the omni-channel logistics framework.

  1. Insource operations or outsource to a 3PL

Although digital transformation has been the focus attention from analysts and technology companies alike, businesses must take care not to overlook the physical transformation. The method of flowing truckloads of products from large DCs to stores has become outdated. Businesses must update their supply chain and distribution networks to compete in this new market, in which the speed of delivery and inventory reduction are paramount. Leading enterprises are testing out new distribution strategies that eliminate DCs to become more agile and to better align with customer expectations for faster deliveries.

In fact, the companies that do omni-channel best sell orders online without ever taking physical possession of the product. E-commerce and order management systems are synced in such a way that online shopping cart orders trigger a PO directly with the vendor. This, in turn, places a PO on an OEM and triggers a chain of events with the outbound freight forwarder, the carrier, and the inbound forwarder and then an outsourced or in-house party within the business’s supply chain carries out fulfillment. All these operators’ systems need to be fully integrated.

Omni-channel logistics is all about providing consumers with a seamless shopping experience. This experience is only attainable when businesses leverage their e-commerce capabilities in a way that acknowledges the reality of running both a brick-and-mortar storefront and distribution center network.

More and more companies are relying on their 3PL/4PL partners to run the back-office operations, allowing them to focus on the core competencies of designing, producing, marketing and selling products. Leave the rest to the experts.

A successful 3PL is an operations manager, a strategic consultant and an IT provider all in one. This combination of capabilities is especially valuable when it comes to inventory optimization and omni-channel fulfillment. A 3PL’s core competency around fulfillment operations — such as knowing which metrics to use and how to measure them to drive continuous improvement — can help companies both large and small close the capability gap.

Summary

The right 3PL partner can use its retail and shipping industry knowledge and supply chain experience, as well as a diverse set of OMS/WMS/TMS capabilities and integration strategies to address the challenges listed above.

Lakehill Partners has a long history of systems integration and business process redesign. Let us help you manage the way forward.

For more information on this subject, please contact Antony Francis at antony.francis@lakehillpartners.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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

Houston, We Have A Problem!

I swear, I must have been transported into an alternate Universe this week, where I was an actor in a sitcom.  Something resembling “I love Lucy.”  You know how sitcoms are written, there is always the main plot with a few sub-plots working.  By the end of the show, all the plots converge on one common theme. Yes, I was living through a sitcom episode in my alternate Universe.

It began a week ago Friday evening when my wife’s car wouldn’t start.  She was at a job site which required the car to be towed to the nearest Dealer.  It sat there until Monday when the Service Department opened.

As she is a residential contractor, she rented a car to keep her projects on track.  Unfortunately, she fell in love with the rental and decided it was time for a new car.  It must have been the electronics package.  Naturally, I protested!  Her car is ten years old but hasn’t even cracked 100,000 miles.  In fact, it is very reliable and has had few problems.  From my perspective, the car isn’t even broken in.  We have been married for 43 years, so I knew how this would unfold.  My best logic would be deployed to no avail.  I could only hope to minimize my losses by working at the margins.  By the beginning of the week, we weren’t speaking much.  Houston, we have a problem!

I realize that most purchases are made on emotion and later justified by tortured logic.  Surprisingly, I have come to believe that is not limited to the consumer world.  All too often I have seen that scenario play out in the business world.  This is was our sub-plot.

Monday, I met with a senior consultant for the local office of a National outplacement firm.  He invited me to explore an opportunity to collaborate. I told him how we help our members understand and adapt to the new employment paradigm.  I explained my view that we are all ‘free agents’ in a dynamic environment.  Professionals will move between W-2 and 1099 status as tenures become shorter and shorter.  We have little control over the employment situation created by the digital transformation of the economy.  He invited me back to speak to his clients.

Tuesday, I moderated the monthly meeting of the BENG Atlanta Chapter.  Our featured speaker, Erica McCurdy, a Master Coach, and ITB Partner facilitated a discussion entitled “Not every problem has a solution.”  The gist of her message was don’t confuse situations with problems. There is a difference.   A situation is a state of being; a confluence of events beyond one’s control.  Situations require one to adapt whereas problems require solutions.  Was it merely a coincidence that I was hearing this message from Erica?

It’s useful to know the difference between problems and situations to focus your energy on things you can change.  If you try to change things that cannot be changed, your state of mind will suffer.  By resolving things that can be changed, you will reduce stress and improve your life, especially if you eliminate unproductive effort.

Successful people view problems as opportunities to grow, improve, and adapt.  For them, problems are a part of life.  Their positive attitude toward problem-solving improves their outcomes.  Experience makes future events easier to traverse.  We should accept problems as a normal, unavoidable condition of life.

I spent the rest of the week evaluating situations and problems.   As I dissected what I assumed were problems, I realized that some were situations.  In these cases, I found opportunities to employ my leadership skills.

This week unfolded within the context of my wife’s desire for a new car.  I had a situation.  She had a problem. When she sets her mind on a course of action, I become a spectator.  During our marriage, I can’t remember winning a major battle, but I’ve had success at the margins.  Guys, I think you know what I mean.  While I became more obstinate, digging in my heals, she negotiated a better deal.  I lost, of course.  I knew I would. My life was imitating art.  Today, she is very happy with her new car.  I live on to fight another day.

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

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

Mark Grace awarded patent on “how to design experiences

ITB practice leaders make a difference. Here is a case in point.

 

 

 

Mark Grace is an ITB practice leader on Customer Experience for businesses and consumers.   

He sees society at a new inflection point, building to a new level of achievement. Just as Thomas Kuhn coined the word “paradigm” to explain the scientific revolution and its impact, Mark coined the word “experidigm™” to describe the all-at-once consumer experience revolution and its future direction.

The experidigm inflection point means that the economy and associated consumer actions are moving beyond a product centered world to buying a complete experience universe. BtoC and BtoB now buy whole experiences potentially made up of hundreds of products and services (i.e. Utilities buy all the products of the Smart grid all-at-once). To support the buying of an entire experience, businesses are organizing in new, non-silo product ways to manage the logistics, marshalling, and delivery to these experience buying consumers (ie Uber, Airbnb, etc.). Consumers are intentionally integrating the new experiences in to their lives in new ways.

Recently, Mark was awarded a patent on “how to design experiences” (https://www.linkedin.com/in/markgracebeyondvia). He has created “Applied Experidigm Zones” where you can go to learn how to experidigm. To learn how to offer experidigms to consumers, Click Here.

Mark Grace holds six additional patents on how to visually communicate and steward the creation of experiences. Mark has published six books (amazon.com/author/markgracepath) describing “how to experidigm,” teaching consumers and groups how to integrate products and services into joyful experiences. Mark regularly offers seminars for corporations and consumers.

For further information about Mark Grace, review his ITB profile at (www.itbpartners.com). Get a free assessment to design your all-at-once customer experience.