Executive Wisdom Times: The Newsletter No.54
March 2009
A monthly newsletter about business, strategy, people, purpose and processes based on the popular articles, interviews and workshops conducted by Ric Willmot, FAIM MIMC.
© 2009 Ric Willmot. All Rights Reserved. You are encouraged to share the contents with others with appropriate attribution. Recommend your colleagues subscribe.
The Executive Wisdom Times is in four sections this month:
- Ponderances - What to do when everything around you is crumbling?
- The human condition - Handouts
- Developmental Opportunities
- Ric's Rant - Don't read this unless you are willing to be ticked-off
Ponderances - What to do when everything around you is crumbling?
I am witnessing some really bad decisions being made in the corporate arena right now. Especially, in the professional and personal services. Here is what I have seen, first hand:
- Reducing and or discounting prices/fees
- Aggressively cutting jobs without considering customer service levels
- Pressuring remaining employees to accept increased workloads to cover for those retrenchments above
- Arbitrarily increasing hourly rates for existing clients with no commensurate increase in value or outcomes for the client
- Pricing tactics such as: adding credit card service fees, administrative fees and fax & photocopying charges to invoices
- Sending reminder notices and payment demand letters , as well as abrupt telephone calls chasing payment in only 14 days of the original invoice being sent
I am still attempting to reconcile how long-term unemployment benefits are burdensome welfare while $900 "gift-payments" equate to a "stimulus package". It came as no surprise that many of these payments went to people who haven't lived in Australia for more than 10 years.
So, what should businesses be doing to help themselves? Here are Ric's Tips for the smart organisations:
- Rid yourself of non-quality clients. I call them X-class clients; those clients who are low value to you and your business. They consume your corporate capacity. Capacity that will be much better served, invested in A-class clients who do appreciate your value, and do good, regular business with you ... and refer good people to you.
- Be prudent with the new clients you accept. You do not have to accept every prospect who comes to your door. A poor prospect never makes a good client. It's not about more business in this economy, it's about better business. The litmus test: if the economy couldn't get any better, it was just so fantastic, would you still want them as a client?
- Add additional products and services of significant value for your A-class and B-class clients to take advantage of. The goal is: expanding existing business rather than seeking new business!
- Understand the difference between revenue and profitability. They are frequently confused.
- Not all cost-cutting makes sense in tough times. Now is the time you should be increasing some expenditure, by investing in innovation, product and service development, human talent and retention of staff and customers.
- Re-tool your business. This is a term from the days of Frederick Winslow Taylor referring to plant & machinery. I use the term specifically referring to people.
- Implement segmentation of your value to clients. It helps them to remain loyal to you while coping with their own financial situation, currently.
- Stop charging by the hour. It's inefficient and unethical.
- Build relationships with your clients. Strong relationships.
If this has you nodding your head, and you would like to implement these and other key strategies into your business, call us on: +61 7 3395-1050 or click here and Ric will call you.
We're here to help.
The human condition - Handouts
Recently, after delivering a presentation at a business lunch, an audience member walked up to me, showed me a photograph and said: "What do you think?"
I had no idea why he was showing me the photograph, nor what his question was relating to. He asked me if I would promote his business to my clients as a 'revolutionary' team-building program. It was a parachute jump.
What is so revolutionary about jumping out of an airplane? And, I am bemused to think that this would instill teamwork in any organisation. He offered no business investment on his own behalf, but felt certain that I would lend my name and assets to it because it was such a brilliant idea.
A woman wrote me to ask my advice on transitioning into consulting from her IT profession. When I politely told her I couldn't give free advice because it's what I do for a living (and otherwise I would be doing it 50 hours a week), she wrote back to tell me she was insulted and would never deal with me again.
And, then a gentleman from Dubai wrote to tell me he had a breakthrough concept about the Pareto Rule (80/20), and I would be the ideal person to work with him to introduce this to Australia. This would be as a favour to him because he had attended my Business College in the Middle East last year.
I've got nothing against entrepreneurs trying to improve themselves by seeking the advice of others. And, just maybe the breakthrough concept about Pareto's Rule might become the next iPod/iPhone.
But I do have a problem with people who want mental and emotional handouts. To be so convinced that your idea, that your personality, is so unique and irresistible that everyone will feel obliged to provide free professional help is a delusion beyond merit.
If you are seeking assistance, figure out how to have something appealing to the other person so that you're not just asking for business charity.
My wife and I contribute significantly to more charities, fund-raisers and sponsorships than even my tax guy can track. I believe in generosity, philanthropy and pro bono work. I do not believe in self-absorbed, mindless people who think they should be helped and aided before all others are rewarded and enabled.
To be fair, most people whom I tell I cannot help for free tell me they completely understand and apologise for any misunderstandings, and ask what they can read or listen to that might help (and I can offer hundreds of free articles and dozens of free podcasts).
To be respected while seeking advice, understand why your approach needs to be of value, consider how it may be improved, be civil and courteous.
Developmental Opportunities
We have now placed a specific page on our website for Developmental Opportunities. We trust this helps all of you, especially those who suggested just such a page on the site.
This is a Coaching Club that is accessible no matter where in the world you live!
Our clients benefit from our knowledge, experience, and straightforward advice during good times and bad. They make better decisions ... decisions that have improved their businesses, their careers and personal lives.
- Are you interested in learning about organisations, like yours, that not only survived but thrived during economic slowdowns and recession?
- Are you willing to undergo an objective and truthful assessment of your organisation's capability?
- Are you able to face the brutal facts about today's economy?
- Are you dedicated to the long-term future of your organisation?
- Are you committed to doing whatever it takes to survive and thrive, today and in to the future?
For less than the same price of an espresso per day, here's what you get:
- An educational webinar every month on a business facet that will give you immediate results, even in these tough times.
- A monthly teleconference on business which will include interviews with successful and smart people, tips from me, etc.
- Unlimited access to the "Members-Only" section of my website that contains an enormous amount of tools, articles, information and resources to help you and your business.
- Access to download and keep all of the webinars and teleconferences so you can replay them as often as you like.
- Access to me, to bounce ideas off, ask questions, get second opinions, etc. I am a sounding-board ... a resource to you.
- You become part of a community of like-minded business people interested in thriving and succeeding, not sulking over problems.
This is limited to only 50 people; and 28 have already been secured.
Ric's Rant - Don't read this unless you are willing to be ticked-off
On the way to the Gold Coast to work with a favoured client, a vehicle speared directly into my car. The driver was more involved with his stereo than with the traffic around him. His brakes were never applied!
With a little time on my side, calmly I telephone the office of my client to warn them not to worry if I do not arrive early for our first round of meetings (as would normally be the case); I would still arrive on time for our meeting at the Currumbin Surf Club.
In a different vehicle now, my mind starts to plan for the day ahead. We would be interviewing a number of people. I reflected on a previous interview we had done just a few weeks earlier at the Tugun Surf Club and replayed that meeting in my mind to establish a "benchmark".
My client telephones my mobile phone and generously suggests I might need a good coffee, and could she order one for me to be ready when I arrive. "I'm passing the hospital now, I will be there in 4 minutes. Thank you."
As I park the car, alight from the vehicle and briskly walk towards the entrance of the Surf Club, I realise that I have just arrived at Tugun SLSC ... not Currumbin.
The cold coffee was consumed by an over-heated consultant.
© 2009 Ric Willmot. All Rights Reserved.
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