Thursday, August 25, 2011

Does employee talent outweigh the trouble that trouble-makers bring?

I told my doctor that I broke my leg in two places. He told me to stop going to those two places. (Henny Youngman)

It's a ridiculous concept; that we would return time and time again to a place where we know we are going to get hurt, but in business, we do it all the time.

You can spot a broken leg via x-ray (and sometimes even without one); but the injuries I'm talking about don't show up to the naked eye, which may be why we neither treat nor work to prevent them. What am I talking about? We constantly allow individuals within our businesses to 'injure' or even 'kill' initiatives, employee morale, customer relations and more.

Under the auspices of loyalty to employees or the value we perceive they bring to the business, we overlook, make excuses for, tolerate and even facilitate cynicism, narcissism, gossip, turf wars and negativism from certain employees.

You know who I'm talking about — employees who regularly pooh-pooh your marketing and event ideas, who belittle, cut down and minimize the accomplishments of others out of envy, who flaunt their disdain for rules by ignoring the standards you try to set for employees in the areas of appearance, timeliness, productivity, retail sales, etc.

If there were such a ridiculous place in your life (like, say a grocery store) where you knew you would always receive an injury, how often would you go there? How many times can you allow others to injure coworkers, harm your business or do damage to your customer relationships?

Were you to do a cost-analysis of this type of behavior, you would likely find that the damage these individuals are doing to your business, to their co-workers, and to your customer-relations far outweighs the (real or perceived) value you believe they bring to your business.

Employer loyalty is a wonderful quality; but is it fair to extend loyalty to individuals who do not return that spirit through their actions in support of your initiatives, in support of their co-workers, in productivity and professional growth? Not only is it unfair to you and to your business, it is also unfair for the other individuals who have to work with them, and, ultimately, it is extremely unfair to expect your customers to extend loyalty to you when the services and care you provide for them are compromised by these individuals.

But (you say) we're talking about people, and people aren't all good or all bad, and some of them have great skills and among their clientele are long-time clients my business can't afford to lose.

Yes, we are talking about people and yes, many times highly flawed people are also incredibly talented; but let me put it another way.

Let's say you have an acquaintance that cooks a wonderful lunch, the best lunch you've ever had. But every time you go there for lunch, you are assured of receiving a sucker punch to the gut, a kick in the chin, or a slap in the face. How often would you want to lunch there, no matter how spectacular the food? This is how it feels for other employees when they are the target of belittling comments or gossip from other employees. This is how it feels for customers when they are mistreated while at your business or on the phone with that one bad apple on your customer service team. This is how you probably feel when you go into a staff meeting excited about a new idea, only to have the negative person on your staff blow it all to pieces.

Furthermore, as you have probably heard before, you should reward people who consistently demonstrate behaviors that you want more of. By rewarding those who exhibit defiance, discourteous behavior, disdain and negativity, you are ensuring that you will receive more of the same behavior. You are also demonstrating to other employees that these techniques work; not only are you discouraging employees who are excited about their work and your business, you are also showing those who may have similar negative inclinations that this behavior is acceptable and effective.

Am I advocating a slash and burn employment policy? No. But I am suggesting that those rare individuals who cannot be persuaded to bring a spirit of positive support (or at least neutrality!) to the workplace where your marketing and client-relations ideas are concerned, who will not endorse your policies and standards, and who regularly hurt other employees or even offend clients themselves, are in the wrong place.

First, they are in the wrong place on the inside. They should be in a profession and in a business that they can endorse intellectually and philosophically. They should be excited about their work and should be just as enthusiastic to try a new marketing technique or hold a new event as they are to do something new that they personally enjoy. They should be able to extend (sincere) congratulations and encouragement to their co-workers in the same way that they would want to be supported. They should be in a place where they are comfortable adhering to standards of dress, conduct, and interpersonal communications.

If not, then they are in the wrong place on the outside, and may need to find another organization in which to work. Your job, as a manager of people is to encourage them either to discover whether they can change 'where they are' on the inside, or to change where they are on the outside (and seek other employment). Your obligation to sustain and grow your business, and to protect and develop your other employees outweighs the obligation you believe you have to retain an employee who is in 'the wrong place.'

You might also enjoy the employee-management tips in my guest-post on bloggingbistro.com [CLICK HERE] to read "Beer me! Use the 45 day rule to build and strengthen relationships."




Elizabeth Kraus – 12monthsofmarketing.com
365 Days of Marketing is available on amazon.com in book and digital formats.

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Wednesday, August 24, 2011

Beer me!! Use a 45-day rule to build and strengthen customer relationships

Heyya! I wrote a guest post for bloggingbistro.com (I love that site) titled, "Beer Me!! Using a 45 Day Rule to Build and Strengthen Customer Relationships" -- I think you'll love both the story behind this one as well as the ideas. Incidentally, this is based on an October 6 - Beer Day entry, straight out of 365 Days of Marketing!

[Click here] or cut and paste the link below into your browser. It's going to be a great year!

http://www.bloggingbistro.com/how-to-use-the-45-day-rule-to-strengthen-relationships-with-your-customers-guest-post/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BloggingBistro+%28Blogging+Bistro%29



Elizabeth Kraus – 12monthsofmarketing.com
365 Days of Marketing is available on amazon.com in book and digital formats.

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Gold Prices Ease From Record Highs

The market was nicely higher in early trading, but it looks like traders are selling into the lift, and the rally is fading as of this post.



Financials are leading the early action, after Bank of America (BAC) was upped to a Strong Buy at a tier one firm and the stock is up more than 8%. Other large banks are higher as well.



But utilities are also strong this morning, and that group is often considered very defensive. So it's not the usual group of growth stocks leading the market this morning, although many of them enjoyed large percentage moves yesterday.



Gold prices have sold off sharply from their recent record highs. After touching $1900 a few days ago, gold prices are down another $75 today back near $1780. People are now asking whether the run in gold is over. My take is that things just got overheated in gold, and now it is going to have to go through a consolidation period. So just be patient, and let gold build another base. There will be plenty of time to add to positions later on.



In economic news, the July durable goods report rose a much stronger than expected 4.0%. Moreover, orders for the prior month were revised higher. This probably lessens the calls for an immediate recession, but let's see how the GDP data looks later this week.



Asian markets were lower overnight after Japan had its debt rating downgraded one notch by Moody's. Japan has the biggest debt-to-GDP ratio, and the slower growth in the country isn't being helped by the recent strong rise in the Yen.



The dollar is flattish today, and oil and gold are once again mixed. Gold is lower, while oil prices are up a bit near $86.25.



The 10-year yield is seeing a nice little bounce near 2.20%. The VIX is down only slightly to 36.0. It is testing its 20-day support, a level I would like to see it break below to signal the market could rally more.



Trading comment: Of course, how the week ends really hinges on the combined GDP report Friday couple with Bernanke's comments at Jackson Hole. I have said I think expectations are running too high for him to pull another rabbit out of the hat. I think he will say that the Fed will remain extremely accomodative, but I doubt he will explicitly unveil a QE3 program. Hopefully investors realize this and stocks won't selloff after his speech.



The SPX held its recent lows at 1120 this week, and could simply be building a short-term base from which to move higher over the next few weeks. What happened to August being a slow month where portfolio managers could go on vacation?!??



long BAC

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Noon EST / 9 AM PST - Listen Online!

Noon EST / 9 AM Pacific -- Please listen in online when I'll be the featured guest for 30 minutes on the Hair Artist Association's internet radio talk show. I'll be sharing marketing know-how, but I'll also be talking about the individuals in the professional beauty industry that absolutely changed my life, and why I developed 12 Months of Marketing calendars and books as resources to help strengthen the beauty industry.

[Click here] for the link to the show, or cut and paste the link below into your browser.

http://www.blogtalkradio.com/hairartistassociation/2011/08/24/elizabeth-kraus-beauty-industry-marketer-educator-author

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Marketing By Numbers.



Many people are commenting about the staggering innumeracy that features on today's cover of the UK's largest free newspaper.



Now, they could be suggesting that the whole is greater than the sum of the parts and that the more you eat the more delicious it becomes, but that sort of counting only works in effectiveness awards papers.



But it is important and not just because it will get passed around the internet. It's important because the people who usually are numerate i.e the finance department will yet again use it to diminish the credibility of those expensive arty marketers.



Marketing is not just about selling. It's about understanding business. If you don't understand numbers, you cant understand business and you should get your coat.



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Tuesday, August 23, 2011

Can Stocks Add To This Bounce?

The market has enjoyed a nice rally today, and the Nasdaq is up more than 3% heading into the last hour of trade. The bullish sentiment carried over from both Asia last night, and Europe early this morning. Both regions saw equity market rallies from oversold levels.



The dollar is lower today, but commodities are mixed. Oil is rallying back near $86, and energy stocks are leading the action so far today. Gold prices are finally seeing a down day, with the yellow metal off more than $50 today near $1837.



Financials are lagging the action, as BofA remains under pressure, and Goldman (GS) can't seem to rally today either. Volume in GS is very high again today.



If short-covering continues, there could be continued buying pressure into the close. The real question is whether or not this turns out to be a one-day wonder, or if this rally can carry the markets higher.



The 10-year yield hasn't rallied much, hovering at a still low level of 2.13%. And the VIX is down 12% currently, falling below the 40 level to 37.18 as of now. That's a good start. I would like to see it break its rising 20-day average which will come into play around 33.50, but bulls would really like to see it below 30 again.



Trading comment: While it "feels" good today, I am still not convinced the bottom is in. I hope I am wrong, but my concern is that expectations are too high going into the Jackson Hole meeting on Friday. If Bernanke doesn't come out with something big, I think the markets could sell off again. As such, I am using today's strength to continue to lighten up a little on economically sensitive stocks and add to our index hedges.

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3 Characteristics of a Real Team (and a lesson from the marching band)

Today’s Harvard Business Review’s ‘Management Tip of the Day’ included three characteristics of a real team. They point out that the word “team,” as used in business today, has lost its true meaning.

To be rightly called a team, and to maximize their potential, a group must be characterized by three things:

   •  a meaningful and common purpose
   •  adaptable skills, and
   •  mutual accountability.

In Make Over Your Marketing, I devote a whole chapter to the Employee Culture. Noting that many business owners have become so used to opposition when it comes to making even the most necessary changes that they often give up on a good idea if they can’t do it alone, I wrote:

Sometimes it seems almost impossible to make even the smallest changes in your business when it necessitates the cooperation of your team. It can feel like your employees actually want new ideas to fail, even if it means less success for everyone.

As human beings, we all bring our own ideas, prejudices, experiences, likes and dislikes into the employee group. Just because someone joins your team, it does not necessarily mean that they all do so with the same level of commitment and enthusiasm that you desire or even demonstrate. And even if someone joins your team with a high level of enthusiasm and energy for business-building activities, it still doesn’t ensure that they will agree with your ideas on how to build clientele or even who your “ideal clients” should be relative to marketing activities. And it does not mean they will agree with the environment and “feel” that you want all of your clients to experience in your business.

What does all of this have to do with employee culture?
Everything.


Your employee culture is a reflection of the sum total values, beliefs, attitudes, ideas, experiences, assumptions and behaviors shared by your staff. And this culture is reflected back to your clients in every area of your business.
If your employee culture is characterized by attitudes that are negative, lazy or careless, unmotivated or cynical, it is because those traits are present to some extent in one or more of your staff, and it is because these negative traits are allowed to dominate and influence daily operations.

Does this mean that you should only hire people who think exactly like you? Not at all. It is the variety of experiences, talents, skills and interests — the differences within us as people, when shared — that leads to higher levels of creativity, imagination, resourcefulness, abilities and strengths. But your business will grow and thrive only to the extent that these strengths, passions and creativity can be harnessed to pull toward the same goals; and when this occurs in a spirit of positive energy and optimism rather than predominant negativity.

Have you ever seen a marching band in action on the field during the halftime period at a football game? You might see a hundred or more people, all working together to play the same song. By mutual agreement, all of them use their individual strengths, abilities and play different instruments in order to deliver a performance for the audience. Every step they take is even choreographed specifically to further engage and entertain the audience visually, beyond the music. They create a visual, changing design that, like the music, is made up of completely individual routes and roles, purposefully designed and choreographed to create a visual whole made up of the sum of all its parts.

Each member has different skills and strengths, and many are skilled soloists in their own right as musicians and/or even as dancers. But as band members they come together with an understanding that the good of the whole is greater than the glory of any one individual. They agree to pool their strengths, skills and abilities in order to achieve a group goal—to perform the same song, to the same beat, as directed by the band leader, in order to please their clients—the audience.
School band members know that they will only be playing together for a short time, maybe even only for one year; yet they still come to this agreement and shared goal.

In the case of your business, where some of you may work together for decades, isn’t it even more important for you to agree to work together toward the shared goals of attracting and pleasing your clients? Of meeting your customer’s needs and making them feel that they are, in fact, vitally important to your business?

The chapter goes on to provide ideas about how to systematically garner employee buy in for common goals and create a more cohesive employee team. How does your team stack up to HBR’s three characteristics? How do they stack up against a student marching band? And what are you doing to build a true team for your business?


Elizabeth Kraus – 12monthsofmarketing.com
365 Days of Marketing is available on amazon.com in book and digital formats.

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