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In these challenging economic times, entrepreneurs are forced to carefully scrutinize all expenditures. To stay ahead of the business curve, cutting costs and operating my business as lean as possible are urgent and extremely important areas of focus for me. In these challenging economic times, entrepreneurs are forced to carefully scrutinize all expenditures. To stay ahead of the business curve, cutting costs and operating my business as lean as possible are urgent and extremely important areas of focus for me.
After 17 years in business, I returned from maternity leave to the news that three of my company’s large national accounts have decided not to renew their contracts. They reported that, while we provided superb service, the economic crisis they were facing required drastic measures. Before I knew it, our overhead devoured our profit at an alarming rate and we found ourselves operating in the red.
Thankfully, I was able to get back in black, but it wasn’t easy. Here are the steps I took to ensure my business stayed afloat:
Examine My Spending
I began the recovery process by examining how we spend (possibly waste) money within my organization. I did this by requesting an accounts payable report from my accounting department. This is a seemingly obvious first step that should be done in any economy, but how many of us ever really examine who we pay and how much?
Create a List
After examining my spending, I generated a list of questions about my vendors and learned where I could save. Afterward, I made ruthless cuts and restricted spending. I notified all managers that there would be a freeze on all non-essential spending and instituted an approval process for spending over a certain dollar amount. We then laid off all non-essential staff, notified all employees of a freeze on pay increases and changed the employees’ monthly rewards program.
Bring in the Experts
The third step was to call in the professionals. I went to my Forum for help with the big-ticket items. After all, these are like-minded business owners with a whole host of expertise! Like many companies, communications was a relatively large expenditure for us. Thankfully, one of my peers offered to audit our communications spending. Within a week I received a detailed checklist of the changes I needed to make to save money.
Renegotiate Contracts
The fourth and final step was to renegotiate current contracts and look for discounts with our existing commercial vendors. I systematically went through our entire vendor list and simply asked for a better rate. Many offered to cut our costs in half in lieu of losing our business. And, I learned of some other cost-saving incentives. For example, we now get a five-percent discount off our Federal Express charges simply by paying them on our corporate American Express card.
In three months we were able to go from US$20,000 in the hole back to profitability. With the financial house now in order, we are able to focus on our sales efforts. This focus has resulted in the strongest sales pipeline we've had in years!
This financial review of my business proved wholly successful. My only question is … what took me so long? Thanks to the support of my team and Forum, I’ve been able to survive this rocky patch and focus on the future of my business. With every merger, there comes a variety of new experiences and lessons learned. That certainly was the case with my company, Shrachi Limited. In 2007, we were passing through a critical phase. We had to manage both our growing business and the stiff competition. With every merger, there comes a variety of new experiences and lessons learned. That certainly was the case with my company, Shrachi Limited. In 2007, we were passing through a critical phase. We had to manage both our growing business and the stiff competition. Unfortunately, we had limited capital and human resources. Because of our limited capabilities, we considered putting our merger aside. Instead, we trudged along, searching for a partnership and the means to move our vision forward.
After careful analysis, the merger was ready to take place. Shrachi Limited and Magma Limited joined hands to form Magma Shrachi Limited. This was a typical example of a smaller company merging with a bigger one to form a much larger entity. There were numerous advantages to our merger, including cost rationalization, greater utilization of resources and access to wider markets. There were also a lot of lessons learned.
In order for the merger to work, we had to play our roles conscientiously. What's more, our roles had to be clearly defined so as to avoid stepping on each other's toes. While we were able to achieve this, we did encounter problems along the way. These included varying work cultures, differences in productivity levels, dissimilar mindsets, individual egos and the integration of individual strengths. Here is what we learned about the merger process and how we managed to resolve our issues:
- We avoided dictatorial attitudes— it’s unhealthy and detrimental to a merging company
- We worked on comfort levels for those who became a part of the larger family
- We adapted— adaptability is critical to maintaining a harmonious relationship
- We discovered that the role of leader must be inspirational and not overbearing
In the end, the merger was a success, especially on the learning front. We realized that in order to carry out large volumes of business, it’s necessary to have all the systems in place and monitor them with the right resources at the right time. We also learned that mergers are like marriages, where one family unites with another to create a long-lasting bond that can grow in harmony. These deals involve a ton of adjustments from both sides, and the process has to start from the top. If this occurs, then the end result is a happy and successful family. Nando faced extreme odds and harrowing tribulations, and yet he overcame the obstacles. His story of hope and perseverance has taught millions of people how to move beyond personal and professional adversity. Today, Nando is a bestselling author, business leader (he owns five businesses), television producer and renowned speaker. It is one of the most famous survival stories of all time.
In October 1972, Uruguayan Air Force Flight 571 crashed into the frozen Andes Mountains, leaving 16 people to survive for 72 days. After waking from a concussion, only to learn that his mother had died on impact and his sister was near death, Nando Parrado became obsessed with surviving. He and rugby teammate Roberto Canessa emerged as heroes when they walked for 10 days to find their salvation.
Nando faced extreme odds and harrowing tribulations, and yet he overcame the obstacles. His story of hope and perseverance has taught millions of people how to move beyond personal and professional adversity. Today, Nando is a bestselling author, business leader (he owns five businesses), television producer and renowned speaker.
You can hear Nando recount his amazing story at the 2009 EO Barcelona University, to be held 30 September - 4 October. He will share his insights into handling crises, as well as touch on the following:
- What the experience taught him about life, and how he applies those lessons to business
- The value of teamwork; how working with his teammates helped him survive
- The importance of family; how getting back to his father kept him motivated
- How enjoying life is paramount to living fully and productively
Nando’s story of courage, teamwork, determination and leadership—experienced at a level few have known—will leave you with a heightened awareness of the value of human life. To learn more about Nando’s journey, or to register for the University, click here.
EO Barcelona University Fast Facts
Dates: 30 September - 4 October 2009
Destination: Barcelona, Spain
Accommodation: Hotel Arts Barcelona, a Ritz-Carlton Property
Web site: 2009 EO Barcelona UniversityQuestions: Contact Events A special congratulations goes out to several EO chapters who recently received awards at the 2009 Global Leadership Conference! These awards were given in recognition of outstanding performance in the pursuit of chapter and member excellence. A special congratulations goes out to several EO chapters who recently received awards at the 2009 Global Leadership Conference! These awards were given in recognition of outstanding performance in the pursuit of chapter and member excellence. The winners are as follows:
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Learning Award Winners:
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Best Social Event
EO Perth
Best Business Development Event
EO Switzerland – Geneva
Best Calendar (more than 60 members)
EO New York
Best Calendar (less than 60 members)
EO Western New York
Best Joint Event
EO Edmonton and EO Calgary
Best Area Event or Tour
EO Malaysia
Best Personal Development Event
EO Japan
Most Creative Marketing Piece
EO Nashville
Best WOW/Exclusive Access Event
EO Malaysia
Randi Carroll Award
(Best startup chapter):
EO Tampa
Retention Awards:
Canada/LAC/US
25-50 Members – EO Saskatoon
51-75 Members – EO South Florida
76-99 Members – EO Detroit
100+ Members – EO Chicago
ASAP/EMEA
25-50 Members – EO Hyderabad
51-75 Members – EO Bangalore
76-99 Members – EO New Delhi
100+ Members – EO Bombay
Rock Star Chapters
(Obtaining 100 percent of the Rock Star Checklist):
EO Chapter FY2008/2009 Chapter President
EO Atlanta Todd Bone
EO Arizona Daniel Ozbun
EO Charlotte Laurie Leonard
EO Chicago Russ Rosenzweig
EO Cincinnati Gus Valen
EO Costa Rica Jose Escobar
EO Edmonton Joaquin Guzman
EO Hong Kong Jessie Ng
EO Houston Frank Vega
EO Idaho Travis Parks
EO Indiana Kevin McCarthy
EO Kansas City Mary Leonida
EO Nashville Clay Blevins
EO Nebraska Chris Mangan
EO New York Matt Weiss
EO Malaysia Yoon Li Yong
EO Monterrey Joaquin Guzman
EO Ottawa David Dash
EO Pakistan Badre Alam
EO Portland Lance Pederson
EO South Africa Itumeleng Kgaboesele
EO South Florida Oscar DiVeroli
EO Western New York James Kuryak
EO Winnipeg Michael Wakefield |
As client budgets shrink, staff redundancies take hold and the daily perks of working for a dynamic business evaporate, entrepreneurs face the challenge of keeping their staff motivated, positive and bursting with enthusiasm. While there's no single, simple answer to the challenge, one of the most successful drivers of our company’s positive work culture is our staff incentive program. As client budgets shrink, staff redundancies take hold and the daily perks of working for a dynamic business evaporate, entrepreneurs face the challenge of keeping their staff motivated, positive and bursting with enthusiasm. While there's no single, simple answer to the challenge, one of the most successful drivers of our company’s positive work culture is our staff incentive program.
Storm is a mid-sized creative brand agency located in Melbourne, Australia. Like any professional services business, our success is directly linked to the effectiveness of our people. After launching in 2005, we established an incentive program with a 360-degree framework that reflects what we value most about our organizational culture and the drivers of the business: happy and profitable clients.
After team and individual goals were set, I met with each staff member monthly to review how they were achieving their goals. Recognizing that we all have different strengths and talents, if a staff member fell behind on a goal, it was their responsibility to work with someone else from the team to catch up. This approach reflected our studio's “one-in, all-in” philosophy, and it helped when it came time to reap rewards.
At Storm, our incentive rewards are bi-annual. After each reward, we spend three months establishing the criteria for the following incentive program and then re-launch it to the staff to keep things fresh. Some goals are re-framed with new assessment criteria, while others are replaced with new goals. True to the ethos of EO, our staff incentive rewards are once-in-a-lifetime experiences. Rewards involve travel and physical challenges, and they must be truly memorable.
Rewards are chosen based on staff suggestions of experiences they would cherish. We run the suggestions through our budget and the whole team votes on those options that meet all criteria. In 2006, we travelled to Fiji where we kayaked through the Yasawa Islands for five days. In 2008, we visited the “Top End” of Australia, where our adventure included kayaking through the Kathryn Gorge, a helicopter flight into Arnhem Land and sunset cruising with crocodiles.
In a creative and deadline-driven environment, these reward trips have a beneficial impact on our company culture. Both trips are spoken about with great enthusiasm and passion. We are also finding that word is spreading across our industry and that potential recruits are aware that working at Storm brings with it some extraordinary rewards.
However, the most important benefit this incentive program has given us is an understanding of the role each employee plays in our business success. I’ve learned that the more you understand the people you work with, the more successful you will be. As our industry feels the brunt of the credit crunch, our business is brimming with health and positivity. I have a sneaking suspicion our incentive program has more than a little to do with that. EO Malaysia recently held its annual “TAIPAN: The Making of Asian Giants” event, an education-oriented program that fosters experience-sharing and growth. This year’s event was held in Kuala Lumpur, and it marked the eighth installment of the session. With the global economy still in a state of turbulence, more chapters are finding new ways to leverage their experience. Intent on expanding their learning horizons, EO Malaysia recently held its annual “TAIPAN: The Making of Asian Giants” event, an education-oriented program that fosters experience-sharing and growth. This year’s event was held in Kuala Lumpur, and it marked the eighth installment of the session.
It all started in 2002 when EO Malaysia’s James Ng attended the Entrepreneurial Masters Program (EMP) and decided that a similar event was needed in Asia— one that benefited chapter members and associates on Asian shores. With that in mind, Ng and other EOers committed themselves to creating a regional experience unlike any other. The TAIPAN Malaysia founding committee was chaired by Meer Habib, and thus, the event was born. This year, more than 450 members and associates attended.
Unlike other regional events, TAIPAN is a radically different experiential program where members get to learn alongside their executive teams. What’s more, the organizing committee members gain tremendous value while bonding and honing their organizational and leadership skills.
“TAIPAN has a cult following because it delivers what members want: a program that engages staff, attracts top CEOs and stimulates thought leadership,” said EO Malaysia member Mok Yuen Lok. “We keep returning to TAIPAN because we benefit from immediate organizational alignment and a refreshed team.”
This year’s event was chaired by incoming president Lim Boon Siong, who worked in collaboration with CK Tan of YPO. The theme was “Surviving the Crisis: Going Global, Going Lean,” with a focus on how EO Malaysia can face the economic downturn head on, speed up business growth and create strategies to face the challenges ahead.
Here is a recap of the event’s presentations and various lessons learned:
- From Rockefeller Habits guru, Verne Harnish, the audience learned that people would pay more for a product or service if they fear they’ll lose it.
- According to Guy Parsons, founder of Value Streams Solutions, getting “lean” is more than just cutting costs. It’s about “lean thinking”; i.e., delivering to customers what they perceive as the best value while consuming the least amount of resources.
- Hostage negotiator Dr. George Kohlrieser discussed how to gain employee trust and act as their secure base. Understanding and managing peoples’ emotions is critical to successful management.
- CEO of Malaysian Airlines (MAS) Datuk Seri Idris Jala received a standing ovation (first in the event’s history) for his insightful talk on the innovative “Six Principles of Management,” which he successfully adhered to when turning MAS from a company that had lost US$900million in 2005 to one that posted a US$260million profit in 2007.
For more information, contact Mei Choon, EO Malaysia'a Communications Chair. The following announcements about upcoming regional and multi-chapter events are open to all EO members. Go beyond local and tap into the resources available to you outside your home chapter!
Event Title: Forum Trainers Retreat
Sponsored by: EO Global
Date(s): 14-17 June 2009
Location: Rio Mar Beach Resort
Contact Information: Elizabeth Evans, +1.703.519.6700.
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Event Title: 2009 EO Family Adventure
Sponsored by: EO Global
Date(s): 30 June-3 July 2009
Location: San Diego, California, USA
Description: It's never too early to prepare for the vacation of a lifetime! We invite you to attend the 2009 EO Family Adventure in sunny San Diego, California, USA. This annual event offers intimate networking opportunities with fellow members, exciting educational courses and the gift of invaluable time with your loved ones.
You and your family will also have the unique opportunity to learn together as a family and take home a family experience that you will remember for years to come.
Contact Information: Events
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Event Title: EO ANZAC Summit
Sponsored by: EO Melbourne
Date(s): 30-31 October 2009
Location: EO Melbourne, followed by Flemington for the Spring Carnival
Description: EO Melbourne will host a Regional ANZAC Learning Summit, followed by a Social Event at Derby Day on 31 October. The events will be open to spouses and guests. Please note that there will be a member and guest cost to be advised as soon as possible.
Contact Information: Chris Jacka, (61) (3) 9670-8344.
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If you have an event you'd like to see included in this section, please e-mail Nicholas Thomas, Publications Manager. It has taken a tremendous amount of research, energy and outreach to get this program up and running, but it’s completely worth it. Not only are we doing our part to help our community, but an unbreakable bond has been formed among the staff. As CEO of the Finest Accessories, Inc., I have more than 20 years of experience in the fashion accessories industry. My expertise is in the hair accessory business, such as barrettes, headbands and ponytail holders. While I have seen my share of “hair-raising” moments, one of the most memorable experiences occurred when a loyal customer asked me a simple question.
Hillary, who had recently been diagnosed with cancer and was undergoing chemotherapy, wondered what I had for someone who had lost the very thing I built my business around: hair. I apologized and told her we did not carry anything of that nature. And then it hit me: We work with hundreds of different silks … why not make her something vibrant and beautiful? I encouraged Hillary to go to our Web site and select her favorite silk print. I then had our factory make her a scarf at no charge. It was the least I could do for this woman, a devoted customer who wanted to feel beautiful during such a difficult time.
At a staff meeting later that week, we sent her the scarf along with a card and our good wishes for a quick recovery. It felt so good giving back to someone in need, and we wondered why we hadn’t been doing it all along. It was then that our Good Wishes Scarves program was born. Our mission is simple; to provide one free head covering—either an It’s a Wrap or scarf—to women and children experiencing the thinning or loss of hair as a result of illness or treatment. Each Good Wishes item comes with a message of hope that honors the courage and strength of each recipient on their path to healing and recovery. We want to bring a small ray of sunshine into the lives of those who need it.
It has been almost three years since we sent Hillary that first scarf and we’ve been able to touch many people since then. In the process of creating this outreach, I’ve learned that we all have something to offer, something we can do to make other people’s lives a little easier. I’ve also learned that giving comes with unexpected challenges. For example, while we have a tremendous ability to give, it can be difficult connecting with those in need. Finding the bridge to connect the two is not as easy as you might think.
Most sadly and perhaps most surprisingly, I discovered that in our society, people find it hard to believe that we’re giving these items away for free. This has been a strangely difficult message to convey. In my experience, I’ve also learned that I didn’t have to wait until I thought I could afford it. In the wee hours of the night I worried as to how I was going to pay to meet the need— what a waste of time. People do come out of the woodwork when you do something good for others. In fact, we became a bridge for others to give back, too. Our attorneys, CPA, graphic designers and printer (a Seattle EO member) have all graciously offered their services pro bono to help get our message out.
It has taken a tremendous amount of research, energy and outreach to get this program up and running, and it’s completely worth it. We are making a difference in people’s lives and we do believe in the power of sending Good Wishes. Not only are we doing our part to help our community, but an unbreakable bond has been formed among our staff. Now, when I find myself frustrated by the daily ins and outs of running my company, I think about how we are putting smiles on people’s faces, one person at a time, and easing the journey of strangers. I’m able to reflect upon what really matters, and somehow, the business woes that get under my skin begin to disappear. I run a youth-focused recruitment agency, and given the nature of my work, I have an extensive network of contacts. About three months ago, I was contacted by the producer of a documentary called “Change the World,” a competition-based program where members of Generation Y are given the opportunity to develop a concept that will change the world. I run a youth-focused recruitment agency, and given the nature of my work, I have an extensive network of contacts. About three months ago, I was contacted by the producer of a documentary called “Change the World,” a competition-based program where members of Generation Y are given the opportunity to develop a concept that will change the world. I knew I could connect the producer with marketing specialists and business strategists that would help the documentary, so I volunteered my services.
After meeting with the producer, I was invited to form part of the steering committee that would drive and manage the project. I was tasked with determining how the project would benefit from each team members’ experiences. I reflected on the last time I was in a situation with a group of highly capable, business-minded people. I thought about EO and Forum, in particular my induction into Forum and Forum training.
I immediately contacted Carlo Santoro, an EO Asia Pacific Forum Trainer and EO Global Board Director, and shared with him the “Change the World” concept. Carlo talked to the producer of the program and agreed to facilitate a training session for our steering committee. In this session, he introduced the Gestalt Language Protocol principles and taught us how to better engage and work with one another. Basically, we were bringing the benefits of EO’s Forum process into the development of this documentary program.
In a room full of entrepreneurial personalities, it is impossible for everybody to take on the role of leader. I realised very quickly that, in the absence of a team structure, we wouldn’t reach our full potential. Therefore, certain principles needed to be learned and processes put into place to ensure that we were effectively sharing knowledge and experiences. By instigating the Forum-like training early on, we were able to work more effectively and get things done more quickly.
The “Change the World” documentary is now well off the ground. A business plan and a marketing plan have been developed, and the first stage of filming has commenced. None of this would have happened were it not for my EO experiences. By leveraging the EO membership, I was able to call on a skill set that is not my area of expertise and have my team benefit considerably from it.
All in all, this experience has taught me a lot about the EO network. I learned that even in a team of highly productive people, there will always be a need to develop a platform for presenting ideas and personal experiences in order to maximise the value of the team’s collective skill sets.
Keep an eye on www.changetheworld.com.au and track our progress! Maintaining healthy relationships is critical to realizing goals. As my network has grown, I’ve made it a point to stay in touch with the people who are important to me and my company. Here is how I have done that. Relationships are the name of my game when it comes to running a business. I own a speakers bureau, and I have information on more than 2,400 speakers at my disposal. However, I find myself booking the same 200 speakers over and over again. Why? I know them, I trust them and I’ve maintained healthy relationships with them.
When it comes to business, maintaining healthy relationships is critical to realizing goals. Because of the profession I am in, developing and supporting client relationships is a vital part of my livelihood. As my network has grown, I’ve made it a point to stay in touch with the people who are important to me and my company. Here is how I have done that:
Leverage Technology
Technology is a huge asset when it comes to effectively managing relationships. Having a customer relationship management (CRM) system, for example, is a must for me. Last year, I converted my CRM to Business Contact Manager—a Microsoft application—and learned everything I could about the system. I now understand who knows whom and how I was introduced to each contact. It also helps me keep an excellent trail of who has booked various speakers, making it easy to quickly obtain helpful referrals.
Keep Connecting Online
Like most people, I have a Facebook account, I’m LinkedIn … and yes, I even “tweet.” But my real relationships—the ones that have been the foundation for building my business—are based on old-fashion trust and shared experiences. Online tools serve as a convenient way to stay even more connected to my client base.
Mix Up the Medium
When it comes to working with my clientele, I try not to get into an e-mail or phone rut. I am very conscious to approach my communication with a mixture of phone calls, e-mails, hand-written notes, and believe it or not, an actual client visit or two. It’s all about staying personal and in touch with the people that are important to me and my business.
Stay on the Look-Out
When we visit different cities on business trips, I challenge everyone on my team to run a report and determine if there are any prospective clients in the region. This is an excellent opportunity to visit clients and potential clients face to face.
There’s an old adage that relationships are like plants. Sometimes you can ignore them and they start to dry up, but if you catch them and add water, they can come back to life. On the other hand, if you completely ignore the plants until they are dead, no amount of attention will bring them back to life. I have learned that with integrity, honesty, a strong work ethic and a system to ensure I stay in touch with clients, creating a reliable network is possible. |
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