THE SERGEANT’S HALBERD (AN OBSOLETE MANAGEMENT...

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FROM THE VOLUME 11 • ISSUE 10 OCTOBER 2006 ALLEN E. FISHMAN FOUNDER & CEO THE ALTERNATIVE BOARD ® BUSINESS OWNERS, while they may possess many critical capabilities needed for success, all too often lack the key skills needed to motivate their employees. Results-Driven Communications will show you how to infuse your employees with passion and direction. The principle tenet of Results-Driven Communi- cations is building trusting, two-way communica- tions. You can only do this by sharing your goals—specifically what you are trying to accom- plish and why—with those who will play a critical role in achieving them. This can be a difficult concept for some busi- ness owners to grasp. But without a strong under- standing of your plans and desired outcomes, your employees cannot maximize their effectiveness in helping you accomplish your goals. The more knowledge your people have, the greater their buy- in will be and the more motivated they will be to provide the help you need. Custom-tailoring your methods of communication RESULTS-DRIVEN COMMUNICATIONS GET RESULTS PAGE 1 SOLUTIONS & STRATEGIES (Allen continued on page 7) INSIDE 2 Do You Want Results Achieved or Activities Accomplished? 2 Tough Love 3 CEO’s Intent 4–5 Tips from the TAB Hotline 6 Increase Business— Become an Expert Speaker 7 Accounts Receivable Discipline A FEW YEARS AGO WHILE IN AUSTRIA I had the opportunity to visit one of the world’s finest collections of arms and armor. One section was entirely devoted to a display of halberds. The halberd is an axe on a long pole, usually with a spike or spear point at the tip. It was used as a military weapon from the middle ages to just before the 20 th century. It was a halberd from the late 1880s that caught my eye. Labeled a “Sergeant’s Halberd”—it dated over 100 years after infantry troops were commonly outfitted with firearms. “Why,” I wondered aloud, “would someone lead troops into a gun battle with an axe?” A museum docent heard me and laughed. “You don’t understand,” he replied, “in those days the sergeant went into battle behind his troops. The halberd was to keep them moving forward.” Battles in the 19 th century were horrific affairs. Armies utilized “Napoleonic tactics,” marching blindly into one another across flat fields in huge formal formations. Black powder muskets were extremely loud and generated massive amounts of dense, choking smoke. Soldiers weren’t told what the objective was or why they were fighting. Deafened, nearly blind, with friends dropping from the shots of unseen enemies, it’s little wonder that the sergeant’s job was to herd men forward. The military of today depends on technology and information, driven down to the lowest level of field combat. U.S. marines in Iraq utilize headsets with multi-channel radios and hand-held computers that can exchange real-time photos with aircraft overhead. Each soldier knows the objective, the rules of engagement and is prepared to step up into his superior’s position if needed. Unfortunately, many business owners are still using 19 th century tactics to motivate 21 st century employees. I hear “I have to push these people harder,” or “I need to be on them all the time.” Motivating workers by pushing them from behind is difficult, tiresome and requires a huge amount of energy. Management books today use terms like “empowerment,” “buy-in” and “team” to describe the process of moti- “‘Why,’ I wondered aloud, ‘would someone lead troops into a gun battle with an axe?’ In those days the sergeant went into battle behind his troops. The halberd was to keep them moving forward.” JOHN DINI | TAB-CERTIFIED F ACILITATOR AND SBL-CERTIFIED COACH, SAN ANTONIO, TX (John continued on page 3) THE SERGEANT’S HALBERD (AN OBSOLETE MANAGEMENT TOOL)

Transcript of THE SERGEANT’S HALBERD (AN OBSOLETE MANAGEMENT...

  • FROMTHE

    VOLUME 11 • ISSUE 10 OCTOBER 2006

    ALLEN E. FISHMANFOUNDER & CEOTHE ALTERNATIVE BOARD®

    BUSINESS OWNERS, while they may possessmany critical capabilities needed for success, all toooften lack the key skills needed to motivate theiremployees. Results-Driven Communications willshow you how to infuse your employees withpassion and direction.

    The principle tenet of Results-Driven Communi-cations is building trusting, two-way communica-tions. You can only do this by sharing yourgoals—specifically what you are trying to accom-plish and why—with those who will play a critical

    role in achieving them. This can be a difficult concept for some busi-

    ness owners to grasp. But without a strong under-standing of your plans and desired outcomes, youremployees cannot maximize their effectiveness inhelping you accomplish your goals. The moreknowledge your people have, the greater their buy-in will be and the more motivated they will be toprovide the help you need.

    Custom-tailoring your methods of communication

    RESULTS-DRIVEN COMMUNICATIONS GET RESULTS

    PAGE

    1SOLUTIONS & STRATEGIES

    (Allen continued on page 7)

    INSIDE

    2Do You Want Results Achieved or ActivitiesAccomplished?

    2Tough Love

    3CEO’s Intent

    4–5Tips from the TAB Hotline

    6Increase Business—Become an Expert Speaker

    7Accounts Receivable Discipline

    A FEW YEARS AGO WHILE IN AUSTRIAI had the opportunity to visit one of theworld’s finest collections of arms andarmor. One section was entirely devotedto a display of halberds. The halberd is anaxe on a long pole, usually with a spike orspear point at the tip. It was used as amilitary weapon from the middle ages tojust before the 20th century.

    It was a halberd from the late 1880sthat caught my eye. Labeled a “Sergeant’sHalberd”—it dated over 100 years afterinfantry troops were commonly outfittedwith firearms. “Why,” I wondered aloud,“would someone lead troops into a gunbattle with an axe?”

    A museum docent heard me andlaughed. “You don’t understand,” hereplied, “in those days the sergeant wentinto battle behind his troops. The halberdwas to keep them moving forward.”

    Battles in the 19th century were horrificaffairs. Armies utilized “Napoleonictactics,” marching blindly into one anotheracross flat fields in huge formal formations.Black powder muskets were extremelyloud and generated massive amounts ofdense, choking smoke. Soldiers weren’t

    told what the objective was or why theywere fighting. Deafened, nearly blind,with friends dropping from the shots ofunseen enemies, it’s little wonder that thesergeant’s job was to herd men forward.

    The military of today depends ontechnology and information, drivendown to the lowest level of field combat.U.S. marines in Iraq utilize headsetswith multi-channel radios and hand-heldcomputers that can exchange real-timephotos with aircraft overhead. Eachsoldier knows the objective, the rules ofengagement and is prepared to step upinto his superior’s position if needed.

    Unfortunately, many business ownersare still using 19th century tactics tomotivate 21st century employees. I hear“I have to push these people harder,” or“I need to be on them all the time.”Motivating workers by pushing themfrom behind is difficult, tiresome andrequires a huge amount of energy.

    Management books today use termslike “empowerment,” “buy-in” and“team” to describe the process of moti-

    “‘Why,’ Iwonderedaloud, ‘wouldsomeone leadtroops into agun battlewith an axe?’In those daysthe sergeantwent intobattle behindhis troops. The halberdwas to keepthem movingforward.”

    JOHN DINI | TAB-CERTIFIED FACILITATOR AND SBL-CERTIFIED COACH, SAN ANTONIO, TX

    (John continued on page 3)

    THE SERGEANT’S HALBERD (AN OBSOLETE MANAGEMENT TOOL)

  • Tıps TopFROMTHE

    THE ALTERNATIVE BOARD®

    Publisher:The Alternative Board®

    Executive Editor:Allen Fishman

    Managing Editor:Jessica Lawton

    Assistant Editor:Sara Halbe

    Printer:Lundwall Printing

    Advisory Committee: Oswald Viva Steve DaviesDavid Halpern Jim Marshall

    Review Committee: Cheryl SwansonKrista Emerson

    Tips from the Top® is published 12 times a year. For subscriptions: 1640 Grant Street, Suite 200, Denver, CO 80203, (303) 839-1200,fax: (303) 839-0012 or write to [email protected] rates: $149.95 in US; $200in Canada; call for quote in other coun-tries, for one full year (12 issues) of Tipsfrom the Top®, or $19.95 for an electronicversion in PDF format delivered monthly.Write or call for multiple subscriptionrates. All subscriptions outside the USare shipped via international surfacemail. Please allow 6–8 weeks for deliv-ery. Subscriptions can be sent via inter-national air-mail for an additional $25(US funds). Copyright 2006 by TABBoards International, Inc. All rightsreserved. Photocopying is prohibited.Subscribers may use up to two Tips fromthe Top® articles in any single issue oftheir publication if source is cited.

    The information contained herein issolely the opinion of each applicableindividual author and is provided by TAB Boards International, Inc. forgeneral information purposes only. Thisinformation does not constitute, andshould not be relied upon as, legal,financial, health, or other advice. It ispresented without any representation or warranty whatsoever, including as tothe accuracy or completeness of theinformation. It is the responsibility ofeach individual reader to evaluate theaccuracy, completeness or usefulness ofany information contained herein. Theinformation contained herein cannotsubstitute or replace the services oftrained professionals. Therefore, TABBoards International, Inc. urges readersto seek the advice of legal, financial, or health professionals, as appropriate,regarding the evaluation of any specificinformation contained herein.

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    Be sure to visit the TAB member private site by logging on atwww.TABBoards.com.

    IN A RECENT TAB BOARD MEETING, one of myfellow board members was describing a situationwhere the son of the owner lacked a basic under-standing of the financial end of the business anddisregarded the owner’s policies on many margin-related issues. The owner remains committed to find-ing a leadership position for the son in the business. I suggested that even though the owner had sent theson to school and to seminars on finance and he hadstill not grasped the basics, she should try changinghis bonus structure to align more closely to thebottom-line of the whole company and not just to the department for which he was responsible.

    Additionally, I suggested that she give himresponsibility for reporting and analyzing thefinancial results and projections for the company.She should provide him help as requested andrequired, but hold his feet to the fire. If he worksat it long enough and hard enough to finally “getit,” she can then give him the leadership positionshe has in mind. If not, she is only setting him upfor continued failure.

    CHUCK CRAWFORDACW CORPORATION,

    WILMINGTON, DE

    FAMILY BUSINESS

    TOUGH LOVE

    DO YOU SET YOUR OWN PRIORITIES based onthe results you want or the tasks that keeppopping up on your to-do list? Do your job descrip-tions define results that will move your businessforward or just the duties they should perform?These questions can lead to a new way of thinkingabout the projects on which you choose to spendtime and energy.

    Consider the following questions:

    � By what results are my performancesmeasured?

    � By what results would I be seen as a valuableteam member or leader?

    � By what results would my customers find memost useful?

    � By what results would my family find me mostvaluable?

    Similar questions apply to your employees. Doyou have job descriptions that define the results youexpect or do the job descriptions only list the tasksthat need to be performed?

    Ask yourself:

    � By what results should I measure the success of my office manager, the sales staff, myaccountant, etc.?

    � Are my employees clear about the results theyare expected to produce?

    � Are my employees rewarded for results?

    These questions and others were posed by aguest speaker at a recent TAB Board meeting.

    LARRY ROWLANDTAB-CERTIFIED FACILITATOR,

    DENVER, CO

    OPERATIONS

    DO YOU WANT RESULTS ACHIEVEDOR ACTIVITIES ACCOMPLISHED?

  • TIPS FROM THE TOP ® OCTOBER 2006

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    (John from page 1)

    vating employees. What it allboils down to, however, is youhave to lead today’s employ-ees from the front. Each hasto understand the objectivesand be prepared to act inde-pendently if necessary.

    Halberd managementrevolves around discipline,write-ups, tough performancereviews, documentation andnegative reinforcement. Lead-ership is based on teaching,mentoring, communication,support, guidance and cele-brating when an objective is reached.

    The next time you feelyou have to push youremployees harder, think ofthe Sergeant’s Halberd. It’s amanagement technique thatbelongs in a museum.

    JOHN DINI opened TheAlternative Board® (TAB) inSan Antonio in 1997, andhas overseen its growth toits current status as themost successful TAB chap-ter in North America with100 members and facilita-tors in 11 Boards. Johnhas over 30 years of expe-rience in entrepreneurialmanagement. He hasowned and operated start-up or turnaround compa-nies for the last 21 years,and consulted for start-uporganizations for 10 years.

    John is a member of Jim Blasingame’s “Brain-trust,” a group of businessexperts who appear regu-larly on the Small BusinessAdvocate, a nationally syndi-cated radio show. He is alsothe author of 103 Tips forBetter Hiring and co-authorof 11 Things You AbsolutelyNeed to Know About SellingYour Business.

    WE ALL KNOW THAT EFFECTIVE COMMUNICATIONis a critical component of leadership. But, howoften do we need to reiterate our expectations ofour employees for their daily responsibilities and intheir interaction with customers? Do we assumethat by telling them once, they will remember? Whatif I am gone for an extended period and they can’tget a hold of me for direction? How do we definetheir authority and latitude in daily decision making?

    My company, Regents Health Resources, is anational healthcare consulting firm, which special-izes in medical imaging planning and develop-ment. At the suggestion of our TAB-CertifiedFacilitator, Dick Wallace, I set out to develop astatement of CEO’s Intent. The purpose was to putour expectations and commitments in writing sothat our direction would be clear in the event ofmy absence, and so employees would have areasonable understanding of what is expectedof them at all times. We also involved a selectgroup of senior staff members to help draft thestatements. It worked better than anticipated.

    In drafting the CEO’s Intent, we startedwith the reaffirmation of the mission andvision statements of the company. This setsthe standard for our commitments tocustomers and one another. We also chose toprovide guidance on regulatory compliance andbusiness ethics issues. We defined the reality ofour business, our dependence on repeat busi-ness and the value of satisfied customers as areference for new clients. We asked, “How mustwe treat our customers when they need help orare in need of a quick response?”

    We also defined employee responsibilities.These are statements that define appropriateemployee behavior in keeping with our businessobjectives and ethics. They are also expectationsthat are critical to providing timely completion ofprojects and maintaining company profitability.

    For Regents, the CEO’s Intent is captured ontwo pages. It is now the first pages of our employeehandbook and is posted prominently throughoutthe offices. Now, whenever anyone has a questionabout customer service or employee responsibili-ties, everyone knows to check our CEO’s Intentstatement first and more often than not, it’s alreadyanswered. It is not a static document—it can bechanged periodically, which presents an opportu-nity for reiteration. Our employees are pleased tohave this direction and autonomy.

    Every CEO’s expectations and standards aredifferent. If you create your own “CEO’s Intent,” it

    will make you think long and hard about what’simportant to you and your organization. And, it willalso help you do a better job in communicatingthose values to your employees—and ultimately toyour customers.

    BOB MAIERREGENTS HEALTH RESOURCES, INC.,

    BRENTWOOD, TN

    OPERATIONS

    CEO’S INTENT

    “The purpose was to put our expectations and commitments in writing so that ourdirection would be clear in the event of myabsence, and so employees would have areasonable understanding of what isexpected of them at all times.”

    EVEN OUT YOUR MONTHLY CORPORATE CASH FLOW

    Managing cash flow effectively is an issue for allcompanies. Payroll is one of the largest expensesfor many companies. If you are paying your staffbi-weekly (26 pay periods per year), you caneliminate monthly spikes in wages/salary cashflow by switching to paying your staff semi-monthly (e.g., 15th and last day of month—24pay periods per year). Thus no more three-pay-period months twice a year—which can straincorporate cash flow.

    CAMERON INGLISGERMINATE INC.,

    WINNIPEG, MB

  • THE ALTERNATIVE BOARD®

    QUESTION:My member owns a full-line appliance

    center (new sales, parts and service) andwants to create and hire an office managerposition to take over administrative functions.They have a total staff of seven people—fourare inside people who schedule service callsand handle parts, counter sales, stock roomand showroom sales. We also, they have apart-time bookkeeper.

    We would like feedback on the following:

    1. Just how much authority should the officemanager position have? It could range frombeing a glorified file clerk doing variousodds and ends that clutter the others’ work-day, to a general management job withsupervisory control of the inside functions.Also, do we let this position have financialresponsibility, i.e. keeping the books withfull visibility to the P&L, thus replacing thepart-time bookkeeper?

    2. What experience have others had with tempo-rary staffing agencies, especially for somethinglike this? The owner would like to “try out”candidates before a final hire, as he has hadproblems in the past with new hires ending upas disappointments.

    (We also put this issue in front of our board.Ironically while we did get good feedback, we alsoreviewed the July Tips from the Top® article onhiring the wrong people—it sent the other membersback home wondering just what their officemanagers were up to!)

    RESPONSES:To lessen the possibility of a “wrong hire,” your

    member may want to contact a reputable employ-ment agency that specializes in temporary-to-permanent placements.

    Your member can provide a job descriptionthat covers the basic clerical functions and apotential growth opportunity for the additionaladministrative and management functions. Theagency can then provide the range for such aposition in the local job market, place advertising,

    perform screening and provide resumes of poten-tial individuals for you to interview.

    Using an agency allows you to “pull the plug”on any individual who is not working out and willbe able to supply other candidates as job require-ments, skill sets and aptitudes are re-definedthrough this process. When you find a suitablecandidate, you have the ability to add moreresponsible functions during this temporaryperiod of time.

    BARRY ARNOLDTAB-CERTIFIED FACILITATOR,

    YORK, PA

    How comfortable is your member with givingadded responsibility to this new hire officemanager? In the past, I have brought in tempsto try them out. First, you may want to do abehavioral assessment and also ensure that theterms of the temp agency allow him to hire theright person on reasonable terms. Then, makea serious evaluation of the temp and if notright, go back to the agency and get anothertemp until you find the right one. Do any ofyour members have a referral for this position?If so, be sure to do the behavioral assessmentbefore hiring.

    BILL MARTINECTAB-CERTIFIED FACILITATOR,

    FT. COLLINS, CO

    For many clerical-level positions, I like to usetemps on a temporary-to-permanent type of deal.If they work out, you hire them after a few months.If not, you don’t have all the drama and problemsof firing a full-time employee.

    As far as the scope of the job goes, you caneither write a job description and hire to fill it, oryou can hire someone (a temp) and see what theyare really capable of performing. This latterapproach would involve progressively giving thenew hire more and more responsibility as theymaster each job function.

    ART MILLERTAB-CERTIFIED FACILITATOR,

    OKLAHOMA CITY, OK

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    HOTLINEFrom time to time, questions arise in a TAB Board meeting that are outside the realm of experience of the group.When this occurs, the TAB-Certified Facilitator can share this question with all other facilitators through the TABHotline. The Hotline is a resource for trading knowledge and advice across the entire TAB community. The followingquestion, chosen by the managing editor, highlights one particular issue discussed over the Hotline.

    Check out the TABmember yellow pages by logging on atwww.TABBoards.com.

    INCREASE SALES TO CURRENTCUSTOMERS

    An easy and effectiveway to make sure you’renot leaving money onthe table with existingcustomers is periodicallyto send them an orderrenewal form with thedetails of their last orderand perhaps a smallpromotional product,such as a pen, to use infilling out the re-orderform. It’s a simple idea,but surprisingly one thatseveral of our boardmembers admitted theydon’t do often enough.It’s resulted in a 25percent response rate for me.

    VALERIE HAYMAN SKLARCORPORATE SPECIALTIES, WEST BLOOMFIELD, MI

    E-RECRUITING

    Virtually every businesshas a Web site orshould. Do you useyours for recruiting?Always have a button orlink for “job opportuni-ties.” The savings canbe substantial, espe-cially if you reduce yournewspaper help-wantedads with ones that onlycheck your Web site.

    JOHN F. DINITAB-CERTIFIED FACILITATOR,

    SAN ANTONIO, TX

  • Your member needs to detail the specific dutiesthat he considers “administrative” that fall outsideof the realm of the part-time bookkeeper. He maywell decide that a business his size could utilizeone position for the office manager/bookkeeperrole. A position and a half may be a little heavy forthat size company.

    A lot will appear obvious once he does his list.You and the TAB Board can review it with him. Onthe basis of previous hirings by my board members,I suggest you put together a procedures manual forthe tasks you develop. At least a draft and a finalversion could be done by your member and thenew manager later.

    The member’s CPA can also be a source ofadvice as to what’s needed, as well as refer poten-tial individuals to fill the spot.

    Obviously you want to consider the behavioraland personality qualities that the position will require.

    And, as others have already recommended—screen all candidates.

    Don’t forget the existing part-time book-keeper—maybe he/she could do the job andwould want to. But, most importantly, define theneeds and what the job is before you advertiseand interview.

    As for question two—agencies can help, butbeware of those that are only interested in puttinga body in the position. Find a good one that canalso help define the role.

    JIM MARSHALLTAB-CERTIFIED FACILITATOR,

    GREEN BAY, WI

    With the scope of the job, it will partially dependon the following:

    � What is the minimum the member needs?

    � What would their wish list be?

    � How much can/will they want to pay in salary?

    Most of my members have gone the route ofhiring the most qualified person they could possi-bly afford and, thus, giving them the most respon-sibility—even access to the books. They don’t haveP&L responsibility, but do have some financialresponsibility. Assuming most members want togrow their business, it would be important to hiresomeone with a capacity to grow.

    TINA CORNERTAB-CERTIFIED FACILITATOR,

    BALTIMORE, MD

    The authorities of the person should flow fromwhat you have defined as their key responsibilitiesand accountabilities. Don’t expect them to producethe results you expect if they can’t make certaindecisions. Use the TAB-recommended People Powerseven-part job description to get everything on paper.

    I see members using temp agencies and temp-to-hire in many situations for lower level employees,where they have a good management/supervisionstructure in place. I’ve not seen one where they dida temp-to-hire in a management slot. It might bebetter to clearly define expectations for two-, four-,six- and eight-week checkpoints so you can checkprogress during a probationary period.

    MIKE PETRUSHKATAB-CERTIFIED FACILITATOR,

    CHICAGO, IL

    HOTLINE

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    Share Your Ideas and Tips!

    If you have an idea for atip or article, please submitthe tip or article to yourfacilitator or e-mail it [email protected].

    TIPS FROM THE TOP ® OCTOBER 2006

    LEAVE EARLY FOR A VACATION

    For a scheduled vaca-tion, plan to removeyourself from yournormal daily tasks andsupervision, before youactually leave the office(i.e., “leave” on yourvacation a week early).This will have the effectof flushing out anylatent problems thatmight otherwise notsurface until you werehalf-way around theworld and less likely tobe able to deal withthem while being away.

    JACK GONCALVESJMCC CLEANING AND

    MAINTENANCE SERVICES, TORONTO, ON

    PLANNING FOR ARAINY DAY

    The time to advertiseand promote your busi-ness is when you’re busyand doing well; in thatway, you have a goodstory to tell, have thefunds to do it and willalways have somethingin the pipeline to see youthrough downturns. It’salso the best time to setup your bank line ofcredit—whom you havea good balance anddon’t need it.

    JIM WOERNERJAMES WOERNER INC.,

    FARMINGDALE, NY

    THREE-OF-FIVE RULE

    A story I tell my employees is the same story I toldmy children as they became adults and startedtheir careers. It is a rule I live by and believeeveryone should live by. Here is how it goes.

    If you get up in the morning and look forward toyour day (weekday/workday) three of every fivedays, then you have a good job. If you get up inthe morning and look forward to your day fourdays a week, then you have a great job. If youget up in the morning and look forward to yourday five of every five days, then you are a veryfortunate person.

    Work as life is not about how much money youmake; it’s about enjoying your day and what youdo each day. The real value is in what youaccomplish, the friends you make, the environ-ment you spend your time in and the fulfillmentit provides you. Generally speaking, the moneyfor the work will be fair for what you do, plus orminus 10 percent—the real paycheck is beinghappy. If you can only say to yourself you lookforward to your day two days or less each week,you should find something else to do.

    JEFF MATTSONBLACK BOX RESALE SERVICES,

    BROOKLYN PARK, MN

  • THE ALTERNATIVE BOARD®

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    See a member companyyou’d like to know moreabout? Log on to yourmember site atwww.TABBoards.com, and network withmembers worldwide via the yellow pages.

    OUR TAB BOARD RECENTLY had a discussion onhow to grow your business by becoming an expertspeaker. Here are some tips:

    1. Identify your Unique Selling Proposition (USP)to be identified as an expert.

    2. Organize testimonials from current clients orcustomers and send them in a newsletter toyour mailing list. (Constantly add to yourmailing list.)

    3. Write your own book, article or pamphlet. Use“author of” on your materials—it is unbeatable.

    4. Use four different bio lengths and presentationlengths. Choose the appropriate one for youraudience.

    5. Use practical examples and stories whenpresenting. Audiences love practicaladvice in lieu of theory.

    6. Know your audience and customize yourpresentations based on your research.

    7. Have great materials ready, but do nothand them out at the seminar. Close with“contact me” options to give you more facetime with potential clients.

    8. Assemble a checklist of items to take with youon the day of the presentation (ex: projector,extension cords, etc.).

    9. Place your speaking engagements on yourWeb site and ask the host of the event to placethe presentation on their Web site as well.

    10. Do a slideshow of your work to show or e-mailto secure potential speaking engagements.

    11. Join toastmasters.

    12. Have a Q&A period at the end of every presentation.

    TAB ENTREPRENEUR BOARD 310SAN ANTONIO, TX

    MARKETING

    INCREASE BUSINESS—BECOMEAN EXPERT SPEAKER

    REVIEW YOUR BUSINESS LIABILITY INSURANCE

    Often the greatest cost in a litigation is your legalfees. You may or may not ultimately be foundliable for money damages, but legal defensealways costs money. Liability insurers generallyhave two principal obligations—indemnification(paying the amount you owe on the claim) anddefense (paying for legal counsel to defend youin court against the claim). The defense obliga-tion is broader and harder for the carrier todisclaim than the indemnification obligation.

    Most consumers of business insurance focus onthe total amount of coverage provided by thepolicy, thinking only in terms of the aspect of

    indemnification for the ultimate amount of anyliability assessed through court judgment orsettlement. The astute purchaser of insurancewill also ascertain whether the costs of providingyour legal defense to the claim are included inthe coverage amount or are in addition to it.

    With the costs of litigation defense rising, thisinquiry has become increasingly relevant andmay affect the amount of coverage you chooseto purchase.

    RICHARD STRAUTMANTAB-CERTIFIED FACILITATOR,

    PORT WASHINGTON, NY

    ZABA WHO?

    In July ’06, a new data-base became availablefree to the generalpublic that displays yourpersonal information(names, addresses,phone numbers, e-mails, birth dates, andthe information goesback many years). Thisis more than simplecontact information.

    The database iswww.zabasearch.com.Type in your name—it isinteresting to see all thenames and information,until you realize thismay be more informa-tion than you want avail-able. If your name is inthe database, you maywant it removed.

    If you want the infoedited or blocked, you may [email protected] they will e-mail youon how to edit or blockyour information. TheState Attorney General’soffice recommendsfollowing up to ensureZabasearch complieswith your request andfiling a complaint withthe AG office if they do not.

    RUSS HILLULTIMATE LEAD,CLEVELAND, OH

    “Use practical examples and stories whenpresenting. Audiences love practical advicein lieu of theory.”

  • SUCCESSFUL MANAGEMENT of accounts receiv-able begins with the state of mind that a goodproduct or service has been delivered at a fairprice, and the customer is under contract to make timely payments.

    We back up this expectation with disciplinedprocesses for tracking payments and ensuringcollection. We treat all customers the same way—big or small. Our terms are net 20 days, and wemake it clear that we expect to be paid. Eachweek, we print an aging report showing 20-, 40-and 60-day past-due accounts. Statements aresent out on the 20-day anniversaries, and we usea selection of stickers to alert the customers topayment status.

    At 20 days, those customers who have ahistory of timely payments see a sticker that says,“We have looked everywhere for your check!Could it still be in your checkbook?” Less reli-able customers see, “Friendly reminder. Yourpayment would be appreciated.” At 40 days thesticker is a bright red item stating, “Any reasonwhy this account is unpaid? If so, please tellus.” Seven days later, we send out a letteradvising that in a few days we will make a deci-sion on placing the account with our attorney.

    We state our awareness of the need for good-will and the maintenance of good credit ratings,but our supply contract requires prompt paymentsand stipulates that the customer is responsible forcollection and legal fees. The customer has tendays to make payment in-full to avoid initiation ofthe collection process.

    If the amount is over $300, I call the customerwith the objective of getting a check number andanticipated date of issue. If a customer is in trou-

    ble, I work out a trade for anything we could useor sell—there is always something they can pay.

    Active pursuit of payment has been verysuccessful and very few accounts have been sentfor collection. Effective A/R management gives ustens of thousands of dollars in working capital. Asinterest rates increase, this resource takes onadded value.

    MIKE MERRIMANACCENT PURCHASING SOLUTIONS,

    FORT COLLINS, CO

    TIPS FROM THE TOP ® OCTOBER 2006

    PAGE

    7

    will promote the best level of understand-ing and cooperation among your employ-ees. Each person has unique andconsistent personality traits that definethem. It is far easier to adjust or adapt yourcommunication style to the personalityneeds of others than it is to try and changethe people with whom you interact.

    Identify the specific personality traits

    of key employees and then, based uponthese traits, decide what communicationstyle will be most effective for creatingtrusting, two-way communications withthe person. Make a consistent effort touse that style of communication when-ever you are dealing with that employee.

    Don’t let poor communicationsbecome fatal to the success of your busi-

    ness. Without establishing and maintain-ing open communications lines withthose who are critical to achieving yourgoals, Results-Driven Communicationsare simply not possible. Transform achaotic communications infrastructure toone of success by using the Results-Driven Communications methods ofGreat Entrepreneurial Masters.

    (Allen from page 1)

    FINANCE

    ACCOUNTS RECEIVABLEDISCIPLINE

    INEFFECTIVECOMMUNICATIONS

    I think e-mail hasbecome a bottleneck tocommunication in manycompanies. All toooften, I see someonestruggle for 20 minuteson the computer todescribe a situation forthe person in the officenext door. Even worse,the question involvedonly requires a “yes” or“no” answer!

    I recently experimentedwith my own 30-daycampaign against inter-nal e-mails. I announcedthat I would not acceptany e-mails from myown staff. They wouldhave to contact me face-to-face or via telephone.

    After only a couple ofweeks, our communica-tions are better, projectsare moving faster, andmy relationships withmy direct reports haveimproved.

    RANDY SMITHFORUM SYSTEMS GROUP,

    SAN ANTONIO, TX

    “We treat all customers the same way—bigor small. Our terms are net 20 days, andwe make it clear that we expect to be paid.”

  • THE ALTERNATIVE BOARD®

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    8

    TIPS FROM THE TOP®

    1640 Grant Street, Suite 200Denver, CO 80203

    www.TABBoards.com

    HEADACHE TAX

    We all have customersthat demand extra timeand attention. Instead offiring them, I levy what Ithink of as a “headachetax” to compensate forthe issues that they raise.If they leave, they leave.If they stay, at least weare being compensated.

    FRANK KELLYKELAIR, INC.,

    PORT CHESTER, NY

    Excerpt from 7 Secrets of Great Entrepreneurial Masters:

    NEGOTIATING TECHNIQUE—FIND THE DECISION MAKERGoethe is quoted as saying, “The man who occupies the first place seldom

    plays the principal part.” If possible, conduct your negotiations only with theparty who makes the final decisions. This isn’t always easy to do. The finaldecision maker may believe that his or her time is too valuable to spend withyou until her or she has more facts and so will send a subordinate to feel outthe situation. Many subordinates enter negotiations acting as if they have fullpower to negotiate a deal when, in fact, their power is limited.

    If you are not sure, directly ask the person with whom you are negotiating ifhe or she has the authority to finalize the transaction in all respects. You willgenerally receive an honest answer, but unless you ask the question, theinformation may not be volunteered.

    TO LEARN MORE ABOUT HOW TAB CAN HELP YOU WITH THE 7 SECRETS, CONTACTYOUR LOCAL TAB-CERTIFIED FACILITATOR.Already read it? Write an online review today at www.amazon.com orwww.barnesandnoble.com.

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