If You Want to Manage It, Measure It.

By Julie Wise, The SilverOwl

“What gets measured gets managed.”    Although this is embraced without question,  lots of business owners are slow to understand its criticality when it comes to effective and sustainable business.   There are many reasons why this is the case, but I suspect that several key reasons top the list.

First, many (most?) business owners left their jobs because of  paperwork / ‘red-tape’.  Second, SMEs histori­cally relied on the impression and feeling that their business was doing good more than they did on hard facts and lifeless statistics. Lastly, for a great many quantitative analysis is simply too hard and hence not a priority.

So let’s take a brief look at “5 Ms” of measures:-

1. Does measurement really matter?
2. What should you measure?
3. How should you monitor these measures?
4. How do you use measures to moti­vate?
5. What’s the message?

Does Measurement Really Matter?

In their book Bullseye! Hitting Your Strategic Targets Through High-Impact Measure­ment, William Schiemann and John Lingle document the differences measurement makes in organizations.

Not surprisingly,  businesses that measured scored 41% higher across the 4 parts of business than  businesses that did not measure.

More importantly,  71% of companies that measured achieved their business plans while only 8% of companies that did not measure achieved their business plans.  Which side of the ledger do you want to be on?   Lets agree that measurement really matters, so exactly what should a business measure?

Measuring the Critical Few

Every business has four parts: inputs, throughputs, outputs, and outcomes.

• Inputs are generally measures of resourc­es and efforts. That is, how much time, tal­ent, effort or budget went into a particular program, project, event or activity.
• Throughputs are often measures of effi­ciency that deal with things like cycle times. For example, How long does it take to issue a receipt once an invoice is paid?  Clearly, a payment/receipt time of 4 hours is much more attractive than a week.
• Outputs are measures of productivity.  For example, for a millinery company the num­ber of hats distributed to outlets  would be an output.
• Outcomes, on the other hand, would be the number of hats actually sold. Out­comes speak to the end results that your business is seeking. Likewise, a coach might conduct 24 coaching sessions (outputs), but how were skills of participants actually enhanced and what did the participants subsequently impact as a consequence (outcomes).

The simple rule of thumb on metrics is “80/20” – where 20% of your measures will yield 80% of the desired results, insight, or action needed.   To find your 20%,  first identify the Key Result Areas (KRAs) important to your business’ mission and vision.  Generally, there are four to seven areas (more than seven raises questions as to how key the areas really are or how clear your business mission statement is).   How do you know if your KRAs are really key?  They are truly key if:

1. Success in these areas and failure in others will probably not matter.
2. Fail in these areas and no amount of success in other areas will matter.

Once the KRAs are known, you need to identify the Key Per­formance Indicators (KPIs) within each of these KRAs.   For  example, most businesses would say that the area of e-marketing is a Key Result Area. Within this KRA, measures like new vs. old visitors, page visits, bounce rate, cancellation rate, number of orders and average value of order would likely be key perfor­mance indicators.

There are some things to be aware of :-

1. There are people,  due either to their aversion to accountability or simply naiveté, like to claim that what they do really can’t be measured. My response!  “If something exists, it exists in some amount,  and if it exists in some amount, it can be measured.”
2. The mere fact that it can be measured doesn’t mean it should be measured, that it’s important to measure it,  or  that it’s cost-effective to capture the data, etc
3. Strive to measure what you want (i.e., those measures that are really impor­tant), rather than resigning to what you can currently measure.
4. Heed Albert Einstein “Make things as simple as possible, but no simpler.” The fewer measures you have without leaving key measures out, the better off you’ll be. Your real goal is to achieve and sustain a strategic focus on what matters most, the more you clutter your dashboard the more this entire exercise becomes self-defeating.

Monitoring

Measurement is the first step that leads to control and eventually to improvement.

If you can’t measure something,  you can’t understand it.

If you can’t understand it,  you can’t control it.

If you can’t control it, you can’t improve it

MORE GREAT POSTS BY JULIE WISE

• Why your business needs a succession plan
• Grab a coffee, take time to pause and reflect on FY10 – 01 July 2010
• Unleash The Plan In Your Head

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Julie Wise - The SilverOwl Julie has over 25 years in business operations, strategy and performance improvements. She is an accredited Member of the Australian Institute of Company Directors and an alumnus of the Institute of Executive Coaching. She established The SilverOwl specifically to help businesses with their strategies and operational efficiencies. With Julie’s wealth of experience, and network of associates, The SilverOwl provides access to a vast range of business performance solutions and experienced professionals. Julie is on the Australian Business Women’s Network Advisory Board and the NSW Committee for the Australian Women’s Archive Project. In Jan 2010, she joined the Fred Hollows Foundation. Email: julie@thesilverowl.com.au Website: www.thesilverowl.com.au Twitter: www.twitter.com/julie_wise LinkedIn: au.linkedin.com/in/juliewise Member Profile: See Julie’s Member Profile

Passion for the Experience

By Cheryl Hayman, Hayman Strategy

Off soon to a Club Med I was reflecting on why Club Med had been such a successful brand for so long, and what sets it apart. It occurred to me that Club Med has the right mix of experience for its customers and has evolved with time to profitably meet the changing needs of those customer’s.

So, what precisely does it have? What makes a brand like Club Med so successful and what can we learn for every brand?

Club Med has

• a specific and replicable set of values and processes brought to life wherever a customer goes. This is much like McDonald’s where people have  reliable and constant knowledge in a brand’s product that is trustworthy worldwide;
• employees who ‘walk the talk’ and deliver the ultimate experience their customer’s seek; and
• the ability to suggest and solicit loyalty and return purchases by always delivering the promise.

Similarly this week in Professional Marketing Magazine I read about the success of Berkelouw Books, a family owned business spanning six generations. Built by Solomon Berkelouw from Rotterdam he had a passion for books and a focus on his customers experience from the start. Unfortunately his bookselling career came to a sudden and unfortunate end. On a late winter’s afternoon, with snow falling thickly all around, Solomon attempted to cross an icy plank that connected a customer’s ship to the wharf. Halfway up, he lost his footing and fell into the freezing water. Before anyone could fetch help he drowned, his jute-bag full of books sinking with him to the bottom of the icy harbour.

Today Berkelouw Books is Australia’s largest rare and antiquarian, secondhand, and new bookseller and they have evolved to me even more. They talk of experience, presenting wine bars, cafe lounges, and other in-store experiences including selling other, related items such as candles to fulfil their customer’s needs and provide the ultimate fulfilling experience.

They  reflect on themselves as follows;  ”Books are our passion as well as our business and it is always a pleasure to meet customers who share our love of books. Come in, meet with friends, soak up the atmosphere, and spend as much time as you like browsing through the collection. Thus the romance of books is engendered. Thus too, the association of books and Berkelouw continues. An old and fruitful tree of Rotterdam, Holland, now firmly planted in the soil of Australia.”  The feeling of pride and emotion is evident.

Bain & Company reveal just how commonly companies misread the market. They surveyed 362 firms and found that 80 percent believed they delivered a “superior experience” to their customers. But when they asked customers about their own perceptions, they found that they rated only 8 percent of companies as truly delivering a superior experience.

So what sets the elite 8 percent apart? They take a distinctively broad view of the customer experience. Unlike most companies, which reflexively turn to product or service design to improve customer satisfaction, the leaders pursue three imperatives simultaneously:

1. They design the right offers and experiences for the right customers.
2. They deliver these propositions by focusing the entire company on them with an emphasis on cross-functional collaboration.
3. They develop their capabilities to please customers again and again—by such means as revamping the planning process, training people in how to create new customer propositions, and establishing direct accountability for the customer experience.

These are great planks for all marketing folk to consider for their brands. What are you doing today for your customers, because as ever, it’s all about the customer and their experience of you. As the saying goes, brands are built in the minds of the customer.

MORE GREAT POSTS BY CHERYL HAYMAN

• My Favourite Brand
• Tips for Marketing to Small Business Owners
• Romancing the Services Industry – can you relate?

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Cheryl Hayman - Hayman Strategy Cheryl Hayman owns and manages a strategic marketing and business consultancy, Hayman Strategy, providing a broad range of business and marketing solutions to corporations. Prior to establishing her own business, Cheryl had over 20 years experience as a senior marketing executive in multi-national organisations spanning Australia, NZ and the UK. Cheryl undertakes a number of non-executive Board roles and sits on several Advisory Boards including the Australian Businesswomen’s Network. Cheryl is a Fellow of the Australian Marketing Institute, holding a CPM. Cheryl personally undertakes continuous professional development within her various business roles, as well as attending external courses. Phone: 0408 200 545 or 02 9555 5776 Website: www.haymanstrategy.com Email: cheryl@haymanstrategy.com Twitter: www.twitter.com/cherylhayman Facebook: www.facebook.com/cheryl.hayman LinkedIn: Member Profile: See Cheryl’s Member Profile

How Social Media has Changed Public Relations, interview with Corrie McLeod, Espresso Communications

Social Media has impacted many areas of business, including marketing and public relations. Normally reserved for the professional, public relations for small businesses is easier to manage and is now available to each of us, with the post of a tweet on Twitter, a note on Facebook and a video on YouTube, to name a few of the vehicles available for you to create and manage relationships with YOUR public, and for your business.

Corrie McLeod, Managing Director of Espresso Communications, is a skilled public relations professional who brings a fresh approach to the industry.

She has a keen interest in social media and ensures that the PR strategies for Espresso’s clients are extended to include online communities and influencers.

In this audio interview we look at:

• How Social Media has changed the public relations landscape
• How business can take advantage of these changes
• How social media can compliment your overall business objectives

Enjoy this interview with Corrie McLeod.

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Corrie McLeod
Managing Director, Espresso Communications

Corrie McLeod is Managing Director of Espresso Communications, a boutique public relations agency with many years experience within the business technology environment. Corrie is a creative thinker, skilled at collaborating with clients to develop PR strategies that map specifically to business objectives. With a keen interest in social media, Corrie has a good grasp of the evolving communications landscape and has spoken at a number of conferences about how organisations can better use social media technologies.

Corrie has worked with a broad range of technology clients including Sophos, Integ, LogMeIn, Bang The Table, Headshift, TechnologyOne, Legend, IDG, Interactive Games and Entertainment Association and Microsoft Australia.

In 2008 and 2009, Corrie was a finalist for the Best PR Professional Award by the IT Journalism community. She has a Bachelor of Arts from Swinburne University and an Advanced Diploma in Business Marketing (Public Relations) from the Royal Melbourne Institute of Technology. Corrie is a Member of the Public Relations Institute of Australia and the Australian Businesswomen’s Network.

Website: www.espressocomms.com.au

Phone: 02 9909 1138
Twitter: www.twitter.com/espressocomms

Interviewing for Emotional Intelligence

By Caroline McAuliffe, ExeConnect and Virtual Angels

Recruiting the right candidate can be very hit or miss process. Sometimes the ”ideal” candidate turns out to be a disaster, frustrating colleagues and derailing important client relationships. How many times have you experienced a bad hire which leads to unhappiness and regret on both sides?

Some companies subject candidates to round after round of interviews and psychological assessment in the hope that this will determine the right person for the role. But it might be that the answer isn’t more interviews — it’s better interviews, that incorporate targeted questions looking for a measure of EQ.

What is Emotional Intelligence?

Emotional intelligence (EI) is a combination of self-management and social skills that can transform and optimize individual or team performance.

Many years of research has shown that great leaders excel not just through skill and intelligence, but by connecting with others using EI competencies like empathy and self-awareness. These competencies when learned and practised on a group level can also transform team performance.

Not all roles require a high level of EQ but there wouldn’t be many where it wouldn’t make a difference. It’s essential that a high level of EQ is measured for roles with responsibility for managing and motivating teams.

How to interview for this quality

To help you identify candidates with high EQ, a series of interview questions can be prepared and asked. Candidates with high EQ will score well in three key areas:

1. Self awareness and self-regulation;
2. Skill at reading others, and ;
3. Ability to learn from mistakes.

Knowing not only what to ask but also what to listen for can greatly increase your chances of making a better hire every time.

Self -awareness and self regulation

The candidate understands what drives him and how it affects his behaviour. He can regulate his negative emotions so that fear, anger or anxiety doesn’t make him lose control and rage at his colleagues but he is able to keep emotions in check and project calmness and positivity to the rest of the team.

Questions that could be asked to establish the level of EQ in this area:

• Can you tell me about a time where your mood, either negatively or positively, has affected your performance?
• Can you remember a conflict you have had with a peer, direct report or your boss. How did it start and how did it get resolved?

Things to listen for is evidence that the candidate is aware of his own emotions and has been able to regulate his behaviour accordingly. A red light would be someone who appears to have no awareness of the connection between their emotions and their behaviours and the affect it has on others.

Reading Others

The candidate has developed a good emotional and social “radar” and can sense how her words and actions may influence those around her. She can also pick up on cues from their words and actions and be able to be persuasive and motivating by adapting her words and actions accordingly.

Questions that could be asked to establish the level of EQ in this area:

• Can you tell me about a time when you did or said something that had a negative effect? How did you know it had had a negative impact?
• Have you been in a business situation where you felt you should adjust your behaviour? How did you know and what did you do?

Positive things to listen out for is whether they can identify times where they have picked up on non-verbal cues and they are very aware of themselves in relation to others. Red lights would be the person who struggles to remember a time when they have picked up on non- verbal cues or relate stories which are all about me, me, me.

Ability to Learn from Mistakes

People who recognise they have made mistakes, are able to reflect on them and learn from them will score high in this area. They will see these events as a growth opportunity.

Question that could be asked to establish the level of EQ in this area:

• Can you remember a time where you felt you were on the wrong path? How did you come to realise? What did you do about it? Do you think you leant from this mistake?

Good things to listen out for from the candidate is her ability to take accountability for mistakes and the ability to reflect on the lessons. A red light would be the person who is very defensive, blames others for mistakes and has not learned from past mistakes.

There are many aspects of emotional intelligence but focussing on these three key areas during the interview process will go a long way to identifying candidates with high EQ and eliminate those likely to cause more damage than value.

MORE GREAT POSTS BY CAROLINE MCAULIFFE

• Bridging The Generational Gaps in Your Workforce
• Recruitment for Small Business Growth
• Greening Your Workplace and Skills

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Caroline McAuliffe - ExeConnect and Virtual Angels Caroline is currently founder and director of ExeConnect, a boutique firm specialising in assisting organisations to identify, develop and retain executive and senior management talent. Caroline is also, the founder and director of niche employment firm, Virtual Angels, specialising in the provision of virtual, part-time and permanent business support resources provided to SME clients using a flexible, economical and efficient “Pay as You Grow” model. Phone: 0415 623 122 Email: caroline@execonnect.com.au caroline@virtualangels.com.au Twitter: www.twitter.com/ExeConnectAu Blog: virtualangelsau.blogspot.com www.execonnect.com.au/blog LinkedIn: au.linkedin.com/in/carolinemcauliffe Member Profile: See Caroline’s Member Profile

Your Email Inbox Contains a Wealth of Knowledge

By Alicia Edgar, Coastal Accounting Services

If you dig deep into your multitude of email Inbox folders you will find a wealth of information that shouldn’t be hidden but should be shared with your team or clients.  As a solo-preneur it’s quite easy to rely on your Inbox as the holy grail of much needed information.  But as your business grows you often need to be able to share information with others in a more manageable way.

So, how could you change the way you access, use and store all this information?

Think of your email client as a tool, a gatekeeper that lets information in and sends it out. Now imagine that you cannot store any sent or received emails as they will self-destruct in 6 seconds.  Does that have your attention?  Makes you think twice doesn’t it?  If your email Inbox would not hold that precious information where exactly could you store it?

Perhaps an email relates to a project?  This could be an actual project such as building a new website or could refer to ongoing work with a client.  This kind of information should be stored in a project management system.

What about an email communicating with a new prospect? This type of communication should be generated from and  stored in your Customer Relationship Management (CRM) system.
How about an email to a team member instructing them on a particular task or process?  That type of information belongs in your business intranet and/or tasks management system  of the business.

Does every email belong in another system?  Not always, as some email truly is private and confidential.  But you’ll find that proper storage and sharing of the majority of your email will not only benefit your team and other interested parties, but also create structure around information flowing in and out of your business.

How would you start such a process?  I certainly wouldn’t try and tackle your entire email Inbox; you may never actually get started.  But what you can do is setup your project management, customer relationship management and intranet systems and utilise these systems for all new communication (ie. Email).  Once you get a feel for how these systems work for your business you will then know which “folders” in your email Inbox to tackle next; they will be the folders that hold the “gold” information that once shared could make your business run much more efficiently.

What about you?  What wealth of information are you hoarding in your email Inbox that if shared could have tremendous impact on the efficiencies of your business?

MORE GREAT BLOG POSTS BY ALYCIA EDGAR

• The Business of Busyness
• Time Billing vs Value Billing
• Kick start your budget

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Alycia Edgar - Coastal Accounting Services As an accountant and former surf shop owner Alycia understands the issues that small business face everyday. She believes you can work on your business effectively simply by understanding your business numbers. She creates innovative systems and processes that enable business owners to be highly focused and productive in their business, including Bookzkeeper – The Accounting Survival Kit for Small Business. To get tips on how your numbers relate to working on your business, simply visit here Phone: 0403 983 529 Email: alycia@coastalaccounting.com.au Twitter: www.twitter.com/alyciaedgar Blog: www.numbersarelife.com Member Profile: See Alycia’s Member Profile

Rescuing Good Food, Rescuing People in Need – Video with Ronni Kahn, Ozharvest

Ronni Kahn, Founder of OzHarvest, was awarded the Australian of the Year Local Hero award for her generous work. OzHarvest is a charitable organisation which has, over the last six years, delivered more than 5.3 million free meals to people in need.

Ronni, a long-time event organiser saw, on a regular basis, the waste of food that occurss daily at restaurants and hotels. She committed using her business and logistics experience to make a difference to those most in need of the very food that was being throw out by the truck-ful.

In this interview Ronni shares her story and success strategies.

We look at:

• How Ronni took her event management skills to relationship management and the production of a valuable outcome for Sydney’s hungry.
• The role of corporate social responsibility
• How being awarded Australian of the Year Local Hero has impacted OzHarvest
• The business lessons Ronni has learned in her years in business
• The role of passion in business success

Watch this interview with Ronni Kahn.

Customer Service? Are sneaky tactics turning off your customers?

By Suzi Dafnis

I’m in Melbourne this morning giving a presentation on Collaborating in the Cloud.

On check-in, I noticed this sign. The sign outlines the hotel’s policy on the use of credit cards. It explains that there is a surcharge for using a credit card to settle your account.

I’m staying at a reputable hotel and, lucky for me, the cost of the room will be covered by the event organisers. Regardless, I look at this sign and think:

“Really Hilton? You’re not a 7-11. I’m not buying a carton of milk. Do you expect me to be walking around with wads of cash to pay for a hotel room?”

I’ve seen this type of penalty in hotels (and other businesses) before, and I don’t get it.

As a business owner I wonder how decisions, like this one which penalises clients for HOW they pay you, come into play. And, I wonder where in my business am I, perhaps, penalising MY customers?

On this issue – I believe that credit card fees are a cost of doing business. I see the practise of passing on the fees to clients more often when you choose to pay with a Diners or American Express card. My thought is: If you’re going to pass charges on to clients them manage in way that doesn’t seem to penalise them. Build the costs into your prices.

Even though I’m not paying the bill here today, it stills seems an unfair exchange.

Think of the transaction from the customer’s perspective. Make it easy for them to pay you.

Suzi

How to Choose Your Business Advisors – Video

By Suzi Dafnis — Before you choose a business advisor, take a good look at what your outcomes are and whether you’re willing to be accountable to another for what you say you want to achieve.

Tips and strategies to help you get the support to grow your business.

Louise Woodbury, author of The Invisible Entrepreneur, talks about what to look out for when looking for advisors and mentors for your business.

Watch this video with Louise Woodbury.

ACTION POINT: What type of advisor would make the biggest different to your business right now? Mentor? Financial Advisor? Advisory Board?

Tell us. Also, tell us if you’re not sure and whether you’d like to hear more about this subject in a webinar.

Branding: What Remains to be Seen in Your Branding Strategy Video

By Suzi Dafnis — Annalise Law is 32 and the MD of The Kanga Group – a multi award-winning promotional merchandise organisation.

In this interview Annalise discusses the biggest mistakes companies make when trying to establish their brand, ways to make your customers remember you, how Annalisa’s battle with a major health issue helped her decide what she wanted for her future, and more.

Watch this interview with Annalise Law.

ACTION POINT:

What major obstacle have you overcome? It doesn’t have to be a major health issue like Annalise’s, but most women in business have had to overcome something to move ahead? I’d love to hear your story.

Stuck? Take the Path of Least Resistance!

By Lisa Murray, Revive Business Coaching / Bliss Tribe

When we are stuck it’s often tempting to throw more of everything we have at the problem. More time, resources, cash, ideas and as many small business owners will attest, often this does nothing but create a bigger whirlygig in the cashflow drainpipe! Here’s three strategies you could try instead!

1. Stop trying to ‘fix’ the problem.

Sounds crazy, but what if you either reinvent the situation from scratch or simply create some new possibilities. How much time is spent fixing systems, processes, products and services etc that are broken, only to discover that the real target is 50 degrees to the north? Instead of fixing the problem, ask ‘what is the ideal situation here?’ and create that instead! Often faster and easier!

2. Identify the unchangeable core

Get to the essence of your business. What are the deliverables that are unchangeable, sustainable and timeless? Ensure these attributes are attended to first – your essence should not be subject to fashion, the whims of technology or the latest bright ideas from your superstar staff or clients. Keep an eye on these opportunities but remember: knowing your business focus pays big dividends!

3. Do less

Make the problem or project as small as possible without compromising on its essence. How? Impose an impossible deadline – you’ll soon get clear on what’s important! Look for the simplest solution that will satisfy and delight your clients and deliver them an exceptional and elegant result. It is not necessary (or profitable!) to be everything to everyone. Creating a smaller challenge takes a lot less of every type of resource and energy (including stress!) to move forward with ease. Guaranteed peace of mind!

MORE GREAT BLOG POSTS BY LISA MURRAY

• BE The Difference!

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Lisa Murray - Revive Business Coaching/Bliss Tribe Lisa Murray is an experienced business mentor who brings bliss back into your business. Her holistic, unconventional and creative strategies help small business owners design authentic, ease-filled and profitable businesses. Through her BlissTribe community, Lisa is a catalyst for business owners to choose a phenomenal, rich and joyful life without compromise! The sky is not the limit… there are no limits… unless you choose them! Lisa connects the dots for you… she is an idea generator, a sounding board, a skilled facilitator, a strategist, a problem solver and a contribution to the authenticity and potency of you creating the business you truly desire and deserve. What else is possible? Ask and you will receive!! Phone: 0404 063 513 Skype: lj.murray Email: info@revivecoaching.com.au Website: www.revivecoaching.com.au www.blisstribe.com.au Blog: Revive Coaching Blog Bliss Tribe Blog Twitter: www.twitter.com/revivecoaching Facebook: www.facebook.com/blisstribe LinkedIn: See Lisa’s Public Profile Member Profile: See Lisa’s Member Profile

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