Dale Furtwengler - The Invaluable Leader

Flip-flopping

2008-07-07T06:08:00.006-05:00

How do you know when someone is flip-flopping?

Is there a lesson to be learned from politics?

John McCain charged Barack Obama with flipflopping for "reneging" on a pledge to use public funds which would limit his spending. Senator Obama countered with a charge that Senator McCain reversed himself on the immigration bill that he co-sponsored with Senator Ted Kennedy. Are these cases of flip-flopping or have the situations changed? What difference does it make?

When we perceive someone as flip-flopping, we make assumptions about them. Some of those assumptions are:

they lack confidence; they are easily swayed by others
you can't trust them; their word isn't their bond
they're lazy; they go with the flow
they can't make a decision; they vacillate among alternatives

That's not how we'd like to be viewed. Nor would we want to deal with someone who exhibits these traits.

How can we tell when someone is flip-flopping? Look at the situation at the time their original decision was made. Compare it with the situation that exists today. Have things changed? If so, does the new decision make sense in light of these new facts. Remember, it's every bit as dangerous to remain rigid in your beliefs in a changing environment as it is to flip flop when the facts haven't changed.

The fourth step in the 7 Steps to Becoming Invaluable is to suspend judgment. It's counter-intuitive, but to discern whether someone is flip-flopping you must first remind yourself of any biases you have toward the individual. These biases form the basis of judgment. Second, ask yourself "Have the facts have changed?" Finally, ask yourself "If the facts have changed, how would these new facts have influenced my decision if I were in their shoes?"

In today's challenging economy, there are a plethora of issues that we face. If there is one in particular you'd like me to address, send me an email me at dale@furtwengler.com.

Irresponsible Reporting

2008-06-30T06:16:00.003-05:00

What we need is a news media overhaul...

NOW!

ABC's World News Tonight surprised me last week. They reported that, thanks to higher fuel prices, manufacturing jobs are returning to the United States. My question is "What took so long? Why has it taken months for them to realize that some good will come from higher gas prices?"

You and I know that there is an opportunity riding the back of every challenge we face. The problem is that we're not looking up. Why? One of the reasons is that the news media keeps reminding us of how bad the situation is. We don't need reminders; we're living it everyday!

Imagine that an acquaintance told you that he'd been diagnosed with cancer. Would you cite statistics telling him that his odds aren't very good? Would you tell him how miserable chemotherapy will make him feel? Of course not! You'd offer him encouragement.

You'd look for the silver lining - medical breakthroughs that have increased his odds for a long life, the wonderful things he will do with his time, the joy he'll gain from the little things he once took for granted. That's how you'd help him deal with his frightening news.

Should we expect less from our news media? I think not. To me, it's reprehensible that our news media intensify fear instead of offering encouragement. I'm not asking that them to be Polyannaish. I simply want them to report both sides of the situation - the bad and the good.

Yes, fuel prices have skyrocketed, but manufacturing jobs are on the rise again and we've just opened our first hydrogen fuel stations. Yes, the dollar is anemic, but that makes the United States a more affordable vacation destination for the rest of the world. These bits of good news receive little, if any, mention.

It's counter-intuitive, but balanced reporting helps us see the opportunity riding atop the challenge we face. It's what gives us the confidence to move forward, speeds our recovery and accelerates future growth. I challenge the news media to adopt a more balanced approach in its reporting. I implore you to be the voice of reason to counteract the irresponsible reporting we're experiencing.

As I put away my soapbox, are there any issues you'd like me to address? If so email me at dale@furtwengler.com.

Game Players

2008-06-23T06:05:00.003-05:00

Why do some people take great joy in thwarting others' ideas?

More importantly, how do you deal with them?

A young mother was telling me that her 3 year old has the annoying habit of asking endless, ridiculous questions. The example she cited was a skinned knee. The child would ask, "What if it doesn't get better? What if the bandaid falls off? What if...? What if...?" "I think it's a game with her", the mother said.

I'm certain that all of us have experienced customers, vendors, employees, friends and relatives, who think it's great sport to bombard you with inane questions. They not only waste your time, they sap your energy. What's the solution?

My advice to this young mother was "Turn the tables on her." Say "That's a good question, what do you think we should do if it gets infected? What would you do if the bandaid fell off?" My experience is that people who ask ridiculous questions or raise ludicrous objections don't enjoy the experience when the roles are reversed.

It's counter-intuitive, but an easy way to put an end to game playing is to reverse the players' roles - ask them what they'd do in that situation.

We'd enjoy hearing your approaches to dealing with game players; post your suggestions as a comment so that all of our readers can benefit from your experience. Please let me know what topics you'd like addressed. Email me at dale@furtwenwengler.com.

Nothing Says "I Love You" Like...

2008-06-16T05:54:00.002-05:00

A rewards program

Or does it?

My experiences with three different rewards programs, each with well-respected organizations, has been abysmal. Here's a recent experience.

For months I had never received statements showing what I'd earned. Then I received a statement showing I had zero points even though I'd made purchases. When I questioned why my rewards points didn't show, I was provided a gift card to replace the "expired" rewards points. When I tried to use the gift card online, it didn't work. When I called customer service, she said the gift card wasn't showing on the system. I cancelled the order and placed the order with a competitor.

With the other companies, I couldn't get their online system to apply my reward points to the order. In one instance I didn't receive any indication that the points hadn't been applied, then found an invoice waiting for me when I went to pick up the order.

A rewards program can be a wonderful way to say "I love you" to your customers, but it is fraught with pitfalls. You are creating expectations. If those expectation aren't met, you risk having your customer go to your competitor as I did.

Even if your peformance is exemplary, your customers' memory of the "details" of your program isn't. Reminding them of those details doesn't remove the disappointment they experience. Even when they acknowledge their mistake, they're likely to think "This is too complicated; it isn't worth the effort."

What's the solution? Make the reward immediate. Many reward programs are designed to have rewards points applied to future purchases. The goal is to generate repeat business. Yet, reward points don't dictate my frequency of need. I don't use inks, toners and paper more quickly or stay at hotels more often just because I have reward points.

Racking up reward points when I don't know when I'll have a chance to use them doesn't excite me. Getting an immediate reward for my business does. It also creates a favorable memory that lasts. My repeat business is assured because I recall the joy of having been appreciated at the time I made the purchase.

It's counter-intuitive, but immediate rewards are more powerful and less risky than those that can only be applied to future purchases.

Please post a comment sharing examples of rewards programs that you've found to be effective. If there are topics you'd like me to address, email me at dale@furtwengler.com.

Going In Circles

2008-06-09T06:08:00.001-05:00

Something we've been taught to avoid.

Is that sage advice?

In his book, The Force of Character, James Hillman quotes Plotinus who says "The soul circles toward itself, the movement of self-concentrated awareness, of intellection, of the living of its life, reaching to all things so that nothing shall lie outside of it."

Hillman goes on to say that "If you want your life not to stray too far from your soul, you need to make constant tiny adjustments so that your line of action does not go off on a tangent from the circle of the soul...the sailor knows that he is never quite on course, always a little off, always in need of small adjustments."

This is one of the most eloquently-stated cases for introspection I've read. Who, among us, hasn't courted disaster simply because we've failed to circle back to our values, beliefs, desires. How often have we delayed success by continuing too long on the wrong path? What major adjustments in our lives could have been avoided if we'd been making minor adjustments along the way?

It's counter-intuitive, but if you don't circle back, don't close the feedback loop, don't analyze the information you're getting in light of what's important to your soul (your values, beliefs and desires); you'll find yourself making major adjustments in heavy seas.

You can avoid calamity by comparing your course with your charts at the end of each day. If you've strayed off course, as we all do, make the minor adjustment you need for the next day's leg of the trip.

If you've read or heard something that you've found inspiring, please share it with our readers by posting a comment or emailing me at dale@furtwengler.com.

Job Security

2008-06-02T06:19:00.002-05:00

Productivity booster?

Or too much of a good thing?

A client was having trouble getting two key employees to produce timely results. "No amount of prodding, begging or cajoling gets them to deliver on time."

I wondered whether the employees felt too secure in their positions - that they felt the company needed them more than they needed the company. The owner agreed that his employees had gotten too comfortable. How do you handle a situation like this?

The natural tendency is to:

establish specific goals and timeframes
communicate those goals and timeframes to the employees
monitor their progress
threaten dismissal if the goals/timeframes aren't met

In other words, you try to shake their world.

My experience is that employees in this situation tend to ignore the threats. After all, they've listened to their boss's rantings for months or even years with no consequences. Why would they believe this time is different? Plus, they still believe the company is more vulnerable than they are, so why should they change? Finally, none of us likes being dictated to, so we dig in our heels when someone tries. These employees are no different.

Employees respond better when you engage them in establishing their goals and priorities for the coming week, when they have input in setting deadlines, when you afford them a weekly opportunity to celebrate their success. If this approach doesn't work, shrink their roles.

It's counter-intuitive, but if you shrink their roles - take away some of their responsitibilities - you send a very clear message that their future is in question. You don't threaten, you don't beg, you act! In addition to sending a clear message to your employee, you minimize the likelihood of a wrongful termination suit. How?

You demonstrate a willingness to do everything in your power to afford the employee a chance to be successful. What better evidence could you offer than the fact that you've reduced their workload and they still haven't performed?

Normally, after two workload reductions within a two to three week time period, these employees leave of their own volition.

Please share any techniques you have for dealing with employees who feel that they're indispensable by posting a comment. If there are topics you'd like me to address, please email them to me at dale@furtwengler.com

The Power of FREE

2008-05-27T07:38:00.003-05:00

Why is FREE so irresistible?

How can it help you generate greater profits?

Dan Ariely, in his book, Predictably Irrational, offers empirical data that shows that rational thinking goes out the window when something is free. Why?

Professor Ariely believes that "most transactions have an upside and a downside, but when something is FREE! we forget the downside." Makes sense; why explore a downside when there apparently isn't one?

There are two applications for this counter-intuitive insight:

As a buyer, train your mind to explore the whole deal instead of focusing on what's free. It can save you a lot of money.
As a seller, find low cost ways of offerings something free and you'll increase both your revenues and proft margins.

I love getting multiple benefits from the same idea. Thanks Professor Ariely!

For more information on Dan Ariely visit his website www.predictablyirrational.com.

If there are topics you'd like addressed, please email me at dale@furtwengler.com

Dealing With Denial

2008-05-19T06:07:00.002-05:00

When your employees don't produce the results you desire...

They're probably in denial.

A company contracted for training to help their project team leaders get results more quickly. "The training was very good, but we haven't seen any results", they lamented. Why?

"Everyone in the training program felt that they didn't need to be there. They saw everyone else's deficiencies, not their own." Indeed, denial is at the root of many failed training initiatives. How do you avoid this pitfall? Follow these three simple steps:

Ascertain their interest in the training
Shake their world to show them that they're in denial
Make attendance optional

Before engaging in any training program, determine whether the intended audience is interested in the training. If they're not interested, but the lack of results indicates they should be, you know they're in denial.

Shake them out of their denial. 360 degree feedback assessments are an excellent tool for this. The person may dispute one person's assessment of their performance; it's much more difficult to dismiss the assessments of your boss, subordinates and peers.

Another tool that has worked well in shaking people out of denial is Step 1 of the 7 Steps to Becoming INVALUABLE program - Contributory Negligence. The audience gets to see that they contribute to every problem they face. This approach opens their minds to the possibility that they are contributing to their team's lack of productivity.

Finally, don't make training mandatory. It's a waste of time, money and energy. Instead, offer the training to those who have recognized the need, then let their superior performance speak to the value of that training.

It's counter-intuitive, but one of the reasons training fails so often is that the people in the audience are in denial about their need for training. Avoid this costly mistake by assessing the level of denial, shaking the intended audience out of their denial, then making training optional.

If there are tips on dealing with denial you'd like to share with our readers, please post a comment or email me at dale@furtwengler.com

The Wrong Hero

2008-05-12T06:06:00.003-05:00

One of the most common mistakes in marketing is...

I think you'll be surprised.

Occasionally I stumble across language so eloquent I simply have to share it. That's the case with this week's blog.

Harry and Christine Beckwith in their book, You, Inc., talk about marketing. They cite a company whose marketing materials tout their credentials. The Beckwiths said "It's an impressive story...There's only one problem. It has the wrong hero."

Their point is that your customers aren't going to identify with you, they're going to identify with the people you've helped. It's your customers' success they desire.

It's counter-intuitive, but when you highlight your success, prospects doubt what they hear. When you tout your customers' success, they dream about enjoying the same success. Create marketing materials that tout your customers' heroics and you'll generate more business.

Please share your marketing tips that have helped you enjoy greater success by posting a comment or sending me an email at dale@furtwengler.com.

Recruiting Salespeople

2008-05-05T06:22:00.005-05:00

How do you evaluate candidates for your sales force?

You may be overlooking something very important.

A very successful business owner, and effective salesperson in his own right, said "I wish I could get my salespeople to communicate the value we provide as well as I do."

My question to him - "What type of buyers are your salespeople?" Like many sales managers, he looks at the individual's track record in generating sales; not at his buying habits.

It's counter-intuitive, but price buyers are price sellers and value buyers are value sellers. Asking them to change their price philosophy is like asking a leopard to change its spots. It isn't going to happen.

The next time you're evaluating a candidate for a sales position ask for a couple of examples of the best buys she's made. You'll quickly get a sense for whether she's a price or value buyer. If she's a price buyer and your company competes on price you've got a good fit, assuming all other factors are favorable.

If, however, your company is value oriented, keep looking. She's not a viable candidate for your company.

Let our readers know some of the effective tools you've devised for recruiting salespeople, post your comment or email me at dale@furtwengler.com.

Please join me this evening, 5:45 p.m. to 6:30 p.m. when I present 7 Steps to Becoming INVALUABLE. It's the Kirkwood Des Peres Chamber of Commerce opening ceremony for Small Business Week. The program is proceeded by a networking/happy hour at 4:45 p.m. sponsored by AMG Corporate Offices at their location 1610 Des Peres Rd., Suite 150.

Directions: Take 270 to Manchester Rd. Go west to the Des Peres Rd. exit. Turn right onto Des Peres Rd. and another quick right into the Corporate Hill office park. 1610 is the farthest building on the right. I hope to see you there!

Big Dreams

2008-04-28T06:35:00.002-05:00

Powerful force?

Or source of frustration?

A very talented young lady, poised on the threshold of tremendous success, said "Sometimes I think I expect too much of the world."

All of us have felt the frustration of working diligently toward a dream, sometimes for extended periods of time, without any result to show for it. Yet our personal histories demonstrate, repeatedly, that our dreams do become reality; just not in the timeframe we'd like. So how do we avoid these feelings of frustration while awaiting our inevitable success?

The answer lies in a Joseph Addison quote "A contented mind is the greatest blessing a man (or woman) can enjoy in this world."

It's counter-intuitive, but the key to determining whether big dreams are a powerful force or a source of frustration is our ability to enjoy the success we've already achieved. Begin each morning experiencing the joy in your life and big dreams will become the second most powerful force in your life, right behind a contented mind.

Share your dreams with me at dale@furtwengler.com. I'd enjoy applying counter-intuitive thinking to help you and other readers realize those dreams more quickly.

Please join me on Monday, May 5, 2008, 5:45 p.m. to 6:30 p.m. when I present 7 Steps to Becoming INVALUABLE. It's a Kirkwood Des Peres Chamber of Commerce opening ceremony for Small Business Week. The program is proceeded by a networking/happy hour at 4:45 p.m. sponsored by AMG Corporate Offices at their location 1610 Des Peres Rd., Suite 150.

Directions: Take 270 to Manchester Rd. Go west to the Des Peres Rd. exit. Turn right onto Des Peres Rd. and another quick right into the Corporate Hill office park. 1610 is the farthest building on the right. I hope to see you there!

Embracing the Bizarre

2008-04-21T06:20:00.002-05:00

When you want breakthrough growth, who do you call?

Lunatics!

Sorry, I couldn't resist mimicking the old Ghostbusters' theme song.

In his book, The Story of Philosophy, Will Durant refers to Anaximander (610-540 b.c.) who was the first Greek to make astronomical and geographical charts. Here are some of the conclusions Anaximander reached as a result of his studies:

the universe began as an undifferentiated mass, from which all things had arisen by the separation of opposites (big bang theory?)
that astronomic history periodically repeated itself in the evolution and dissolution of an infinite number of worlds (parallel universes?)
that the earth was at rest in space by an internal balance of impulsions (the law of gravity applied to planets?)
that life had first formed in the sea, but had been driven upon the land by the subsidence of water (Darwin's theory of evolution?)

What fascinated me about this piece was how much insight Anaximander had without benefit of the scientific tools we have today or the 2,500 years of cumulative knowledge that have been gained since he made these observations.

He must have been considered a lunatic in his time. Yet he was able to envision what today's scientific studies are affirming. So what's the message?

Don't be so quick to dismiss the bizarre ideas you hear, they may contain the elements needed to achieve a breakthrough. It's counter-intuitive, but we need to embrace the ideas of those on "the fringe" of conventional thinking if we want to experience breakthrough growth.

If there are business issues you'd like me to address, email me at dale@furtwengler.com.

Please join me on Monday, May 5, 2008, 5:45 p.m. to 6:30 p.m. when I present 7 Steps to Becoming INVALUABLE. It's a Kirkwood Des Peres Chamber of Commerce opening ceremony for Small Business Week. The program is proceeded by a networking/happy hour at 4:45 p.m. sponsored by AMG Corporate Offices at their location 1610 Des Peres Rd., Suite 150.

Directions: Take 270 to Manchester Rd. Go west to the Des Peres Rd. exit. Turn right onto Des Peres Rd. and another quick right into the Corporate Hill office park. 1610 is the farthest building on the right. I hope to see you there!

Acknowledging Vulnerabilities

2008-04-14T06:25:00.002-05:00

A sign of weakness?

Quite the contrary.

Albert Einstein, after reading Morris Cohen's book, Logic and Scientific Method, said "The intellectual honesty of the author makes us share the inner struggle of his mind."

Einstein was fascinated with the fact that Cohen had not provided ready-made answers. Instead Mr. Cohen led the reader through a series of "contrasting possibilities of conceiving the matter."

Our human nature wants to position us as the guru, the answer person, the resident expert. We want others to be blinded with the brilliance of our ideas. How often does that happen?

The reality is that people find our ideas more credible when we admit our vulnerabilities, the mistakes we made and the struggles we faced in developing those ideas. Why?

We're more real when we admit our vulnerabilities
We demonstrate a higher level of confidence than most people possess
We are more open to input from others which opens the door to better solutions
We give others a chance to shine

It's counter-intuitive, but you gain greater respect and quicker implementation of your ideas when you acknowledge the struggles you had in developing them.

Tell our readers how acknowledging vulnerabilities helped advance your ideas by posting a comment.

If there are topics you'd like me to address, email me at dale@furtwengler.com.

A reminder that I'm going to be presenting the opening session of the Kirkwood-Des Peres Chamber of Commerce Small Business Week event at the AMG Corporate offices, 1610 Des Peres Road (Northwest Corner of Manchester and 270), Monday, May 5, 2008, 5:45 p.m. - 6:30 p.m. The topic is 7 Steps to Becoming INVALUABLE.

Selling During Trying Times

2008-04-07T06:42:00.007-05:00

What do you do when selling becomes more difficult?

Change your focus.

When we're experiencing the kind of economic shock that the subprime market has created, when sales are declining in almost all economic sectors, what do you do?

Unfortunately the natural tendency is to push harder for sales, cut prices or explore new markets. Let's look at the reaction we can expect from each of these approaches:

push harder - when your customers are struggling, they're looking for ways to cut cash outlays, not increase them; further pressure on your part will antagonize them and cause them to look for a more sympathetic partner
cut prices - while this may be appreciated by your customers, it places your company's survival at greater risk - you're absorbing price cuts while already experiencing sales declines
explore new markets - when all segments of the economy are suffering diminished sales, your message is likely to fall on deaf ears since they, too, are looking for ways to reduce cash outlays

So what's the answer? Shift your focus. Stop trying to sell!

Instead, approach your customers with questions like:

What changes are you experiencing in your customers' behavior?
What are your customers' expectations of you today?

Look for ways to help them overcome these obstacles and meet their customers' new expectations. In doing so you'll become a valued partner. They'll remember that you were there for them when times were tough. That memory will result in increased sales for many years to come.

It's counter-intuitive, but the best thing to do during trying times is to stop selling.

Is there a problem or an opportunity that you'd like to see addressed? If so, email me at dale@furtwengler.com. I promise that I'll address the issue without divulging the source of the question.

I have the good fortune to be presenting 7 Steps to Becoming INVALUABLE at the opening ceremony of the Kirkwood-Des Peres Chamber of Commerce Small Business Week. It's scheduled for the evening of May 5, 2008. I'll forward details as they become available. I hope you'll join us in the celebration of the value small business owners afford their customers and the service they provide to the community.

Devil's Advocate

2008-03-31T06:53:00.002-05:00

As lonely as the Maytag repairman?

It doesn't have to be that way.

I had the good fortune to present my 7 Steps to Becoming INVALUABLE program to the Gateway Association of Payroll Professionals. They were one of the most delightful audiences I've ever experienced.

When I presented Step 4, Developing a Contrarian Mindset, a member of the audience said "I do play devil's advocated in our office and I do use the questioning technique you suggest, but it doesn't make me very popular."

I'm sure that most of us have experienced that reaction. To avoid being viewed as a naysayer, use this simple technique. Preface your question with the phrase "Help me understand..."

This simple phrase:

creates a mindset of openness within you - openness to the possbility that you may have overlooked something
changes the tone of the question by indicating exploration rather than challenge
creates openness in others because you're not challenging their ideas
affords others the opportunity to "enlighten" you

It's counter-intuitive, but the devil's advocate can be treasured. If you want to be treasured instead of trashed, say "Help me understand..."

Please let me know which topics you'd like me to address. Email me at dale@furtwengler.com.

Great Ideas...Poor Implementation

2008-03-24T06:51:00.002-05:00

Is poor implementation a characteristic of idea people?

Not necessarily.

Two business owners recently told me that they were great at generating new ideas, but were "poor implementers." Was theirs a fair judgment?

Not really. A few questions uncovered the fact that their poor implementation related only to work they didn't enjoy. Isn't that true for most of us?

It's counter-intuitive, but when you're not implementing great ideas, stop judging yourself! Outsource or delegate that work to someone who does enjoy it. You'll enjoy the best of both worlds - the joy of seeing your ideas implemented without the pain of doing the work.

Please let me know what topics would help you enjoy greater success in your business. Email me at dale@furtwengler.com.

The Training Trap

2008-03-17T07:06:00.002-05:00

Why does so much training have a poor ROI?

It's the training target.

A very astute young manager, who is on a great career path, recently bemoaned the fact that his company invested heavily in training those who are underperforming in his group and was offering nothing to those who performed well. Sound familiar?

Generally, poor performance is a function of having a person in a job they don't enjoy. Most of us have made poor hires; it quickly becomes obvious when we have. The vast majority of mismatches occur because, in today's fast-paced world, the job requirements change. In the example mentioned above, the employees were hired to take and fill orders. They were now being asked to generate sales. Two very different skill sets.

It's counter-intuitive, but before investing heavily in training to boost performance, take a few minutes to learn what your employees enjoy and what they dislike about their jobs. To the extent possible realign the workload to take advantage of their strengths and limit your and their risks. If your organization isn't large enough to realign work, counsel them on the type of position that is right for them and encourage them to contact companies that value their skills.

For more information on how to go with your strengths and help others do the same read Marcus Buckingham's book, Now, Discover Your Strenthgs. You can find it at Borders.com.

Help me help you in your business. Let me know some of the challenges you face, particularly in this difficult economy. Email me at dale@furtwengler.com. As I'm sure that you've noticed, I never divulge sources of questions in The Invaluable Leader.

The Value Of Perception

2008-03-10T06:37:00.002-05:00

How can you add teeth to your internal controls?

Three examples.

In an interview with Bisk Education, Barry Wehne, who was convicted of embezzling $1.25 million dollars, tells business owners and CEOs "Make your employees think that you are paying attention and concerned...If you keep them on their toes, you are going to keep them honest."

Last evening on 60 Minutes, Carl Icahn, the corporate raider whose preferred style of making money has historically been buying underperformning companies and selling them off in pieces, said that his interest in a company usually "spurs management to action." Indeed, he claims to have made hundreds of millions of dollars per deal for himself and billions of dollars for the stockholders of companies simply by demonstrating an interest in taking control of the company.

In my youth, when I was the CFO for a major residential homebuilder, I would pull the files of four subcontractors each week, select an invoice (I didn't bother to check whether or not it was accurate), call the contractor and challenge the invoice. It was amazing! For weeks after the phone call, I'd get calls from those subs letting me know when something unusual was happening on a job so that they didn't get another call from me. It not only kept them honest when invoicing the company; it kept them honest in the bidding process as well.

It's counter-intuitive, but you don't need to spend a lot of time in oversight to have effective internal controls. You just need to give the impression that you're paying attention.

Please let me know what topics you'd like addressed by posting a comment or sending me an email at dale@furtwengler.com.

To Sleep, Perchance to Dream...

2008-03-03T07:53:00.006-06:00

Convert your dreams to reality.

It's easier than you think.

Before I launch into this week's counter-intuitive thought, Charlotte and I would like to thank all of you who offered your kind wishes for a safe and enjoyable extended vacation to New Zealand and Australia. The trip was FABULOUS! As you'll see in the following commentary, your kind wishes helped make it so.

Too many of us leave our dreams to chance for one very simple reason, no one taught us to dream effectively. In recent months, I've gotten some great insights into how to more effectively convert dreams to reality. Here are the seven steps to dreaming effectively:

Dream with contentment! Before visualizing your dream, recognize and appreciate the good fortune you already experience.
Dream with clarity! You'll know that your dream is clear when the mere thought of it brings a smile to your face. It's the clarity that allows you to experience the joy of a dream fulfilled.
Dream with intention! Visualize your dream at least twice a day. Take the time to experience the joy you'll feel when it's a reality.
Dream with action! Don't merely dream and expect it to happen. Take steps in the general direction of that dream even though you don't know how exactly where the path is.
Dream with a deadline! So far all the dreaming involves the conscious mind. The deadline provides the subconscious with a timeframe for making the dream come true.
Dream with awareness! Be aware of and open to new opportunities. Dreams seldom arrive in exactly the way we'd envisioned.
Dream publicly! Let all whom you meet know what your dream is. How else can they help you achieve it?

It's counter-intuitive - dreams aren't to be left to chance; they're to be LIVED.

If there are topics you'd like addressed, email me at dale@furtwengler.com

Goals: A Balancing Act?

2008-02-04T06:55:00.000-06:00

Most people believe that having goals is good.

Is it?

I was approached to coach divisional CEOs of an international organization. The purpose of the coaching is to prepare them to deal with the financial aspects of an aggressive revenue growth goal. While I'm a fan of aggressive goals, this goal generated some concern. Why?

It is unbalanced. The goal, as stated, is to increase revenues from "x" to "3x" (a 200% increase) within 5 years. Nothing was said about how profits are to grow along with these revenues. Let's take a quick look at how divisional CEOs are likely achieve the revenue growth goal.

Assume for a moment that the company possesses 30% of the market (their ideal customers) in their industry. Let's say that they are able to garner another 40% of their ideal customers before the market begins to fear monopoly status. When markets see a monopoly developing they traditionally shift business to competing firms to assure that they'll have choices in the future.

Based on the assumptions, the divisional CEOs have generated 133% (40%/30%) of the 200% revenue growth they need to meet their goal. That means that the remaining 67% growth must come from somewhere else. The typical strategy employed by CEOs is to target the second tier customer - those who don't value what they offer as much as their ideal customers do.

In order to attract this group, the company typically has to offer an incentive - financial concessions in the way of lower prices, more favorable delivery or payment terms, etc. These incentives, in essence, reduce the company's profit margins.

At the same time, these companies are expanding their infrastructure to serve these new customers, which drive overhead costs higher. Whenever you have declining profit margins and increasing costs you're not only working harder for lower margins, you dramatically increase the company's risk during economic downturns. That's the fiscal reality of any unbalanced goal.

There are ways to generate greater revenues from ideal customers, but they are often overlooked when the profit portion of the goal is implied rather than stated. So what's the message?

Setting goals is a worthwhile activity. It's counter-intuitive to make sure that the "stated" goal is balanced.

If there are topics you'd like me to address, please let me know by posting a comment or emailing me at dale@furtwengler.com.

Abusive Workplace

2008-01-28T06:22:00.000-06:00

Investment or loss?

It's up to you.

Sue Ekberg, Ph.D. and founder of St. Louis based Career Focus, offers 5 steps to getting out of an abusive workplace. Step #2 is "Find The Lessons."

Ms. Ekberg suggests "Take time to assess what you have learned from this experience, and write down at least three lessons. Could you have gotten promises in writing? Asked more detailed questions before taking the job? Researched the company's reputation? Sought out former employees? Writing lessons down will keep you from repeating mistakes."

Sage advice! If you're in an abusive workplace, utilize Step 2 prior to seeking a position with another company. This approach will keep you from jumping from one poor experience to another.

It's counter-intuitive, but a seemingly negative experience in an abusive workplace can be an investment in a brighter future. Conversely, if you don't learn from the experience; it's a loss that you'll experience again and again.

For the rest of the 5 Steps, visit Sue Ekberg's website, www.careerfocusstl.com, click on "Contact Sue."

If you have tips for dealing with an office bully, please share them with our readers by posting a comment.

What's Missing In Corporate Training?

2008-01-21T07:14:00.000-06:00

What should the goal of training be?

How does the goal affect what we measure?

For years, corporate trainers (and many in academia) viewed education as information transfer. Give people the knowledge they need and let them run with it.

Then trainers realized that knowledge alone wasn't enough; if people couldn't translate the information into new skills, the training had little value. Measurements were put into place to assure that the trainee had, indeed, developed the skill.

Disappointment surfaced again when trainers realized that possessing skills didn't necessarily result in their use. Many people, upon return to their normal work environment, would revert to old habits. Why? The stress of their everyday workload coupled with lack of managerial support often caused trainees to return to old habits - even when they've used the training successfully.

If none of these approaches to training have achieved the desired goal, what should the purpose of training be? How should we measure its effectiveness? How do we create a lasting effect?

My experience has been that training has a lasting impact when it builds confidence. One of my training programs, Accounting and Finance for Non-financial Managers, places me in front of people to whom finance is a foreign language. I tell them quite candidly that there is no way, in the 16-18 hours we'll spend together, that I can possibly cover every financial situation they may encounter. I can, however, help them develop the confidence they need to ask questions about the financial information they receive and to evaluate the answers they're given. I teach them to think.

What's the value of teaching people to think? It equips them with the confidence to address situations that they haven't anticipated. With increased confidence comes improved performance. If you're looking for something to measure, evaluate the trainees confidence in performing given tasks prior to training, then again at regular intervals for at least a year.

It's counter-intuitive, but the real goal of any form of education should be to build confidence.

If there are topics you'd like me to address, please email me at dale@furtwengler.com.

Financial Controls: Too Little Too Late?

2008-01-14T06:58:00.000-06:00

Financial controls are essential.

Are they enough?

Recently I was approached to prepare a program for CEOs. One of the things they want to know is how to avoid embezzlement. It seems that many of them have experienced employee theft. How can you avoid this dilemma?

The quick answer, especially from folks like me with a CPA background, is financial controls; putting controls into place like:

separation of duties so that no one person has access to all aspects of a given transaction
mandated vacations
random, periodic reviews of various accounting records
monitoring trends in customer profitability, vendor utilization

Unfortunately, there are two disadvantages to financial controls. First, they're after the fact. They will only help you identify theft that's already occurred. Second, as with any system, there are always ways around the controls. Is there an alternative?

I don't know that I'd call it an alternative. Good financial controls make is more difficult for people who might be tempted to steal to act on that temptation. There is another approach, one that allows CEOs to get ahead of the curve.

The approach is outlined in Ken Blanchard's book, Raving Fans. Create an environment in which your employees have a chance to:

shine, to feel that they are a valued contributor to your company's success
enjoy the satisfaction and recognition of a job well done
enjoy higher levels of compensation than is traditional for your industry

It's counter-intuitive, but the reason many employees steal from their employers (without remorse) is that they feel that they're simply balancing the scales for some perceived slight. Get ahead of the curve, create an environment that supports high morale; then monitor employee morale and make adjustments quickly when you see it declining. That's how you minimize the threat of theft in your company.

If you have practices that have helped you avoid employee theft, please share them with other Invaluable Leaders by posting your comments.

It's Not The Process!

2008-01-07T06:17:00.000-06:00

At least, not in marketing.

The oft overlooked key to effective marketing.

Happy New Year! My goal for 2008 is the same as it has every year, to offer insights that will help you enjoy a safer, healthier, happier, more prosperous new year.

Recently a client asked me to write their marketing theme - something their copywriters could use to flesh out an ad campaign. When my client showed the initial draft to his wife (a member of his demographic), she said "I love it. It's all about me!"

Unfortunately too many companies spend too much time and effort telling their customers and prospects what they do and too little time telling them what they'll gain from the experience. Frankly, buyers don't care what process you're going to take them through. They simply want to know that you understand what they want and can help them get it.

It's counter-intuitive, but the more you talk about what you can do for your customers the less interested they become. The more that you talk about what's important to them, the greater interest you create.

If there are topics you'd like me to address, send me an email at dale@furtwengler.com.

Inviting Regulation?

2007-12-31T07:07:00.000-06:00

2008 is almost here.

What regulation are you inviting?

On the threshold of a new year most people fall into one of two groups, those who make resolutions and those that refuse to even think about it. Regardless of which category you choose, I challenge you to review your business practices and those of your industry to identify behaviors that are likely to invite more regulation in the coming year.

This past year we've seen mortgage lendors, real estate professionals, appraisers and a myriad of others engage in practices that resulted in the subprime debacle. More regulation is certain to follow. The CPAs, as a result of the Enron, WorldCom fiascos, invited Sarbanes Oxley legislation that has cost companies billions of dollars in implementation costs. You have the ability to avoid regulation. How?

Identify those practices in your industry that irritate the buying public or have the potential to create financial havoc
Become an activist in your industry - lobby for change
Find others who share your concern and develop action plans to change industry practices before those changes are foist upon you
Use "freedom from regulation" as your rallying cry
Become the first in your industry to make those changes, it'll afford you competitive advantage

It's counter-intuitive, but we invite the regulation we get by ignoring customer and market complaints, by blaming our shortcomings on industry practice. If you want to avoid regulation, quit hiding behind poor industry practices. Change them!

If you have examples of how your industry has cleaned up some bad practices and how it has benefitted you, please share those experiences with our readers by posting a comment.