They are there when you need them, they rise above & beyond the call of duty and they collectively make it all possible. They are colleagues, they are staff and they are customers. But do you really let them know how much you care… or that you even notice?

Let’s talk today about how you express your appreciation and how you recognize the contribution of others! Yes, I am talking about your Recognition Strategy.

Relationships require time & effort to ensure that they works, and that they last. If you don’t really have a Recognition Strategy, what a perfect time to begin!

Five Points to consider for your Recognition Strategy

1. Make sure your Gestures Stand Out
Remember, uniqueness creates a buzz, it gets noticed and is remembered longer. If you are going to do it… do it right!

2. Recognize People Often
Make recognition an on-going exercise. ie: Employee of the Month, Customer of the Week, Years of Service… even informal visits to clients, colleagues & associates with a card, flowers, coffee, etc. to say thanks.

3. Do it with “Purpose”
Make sure that there is specific meaning behind each gesture. Let people know that your praise is genuine, that they are important and that their contribution makes a difference.

4. Don’t make it Rocket Science
Internally create simple categories to monitor ie: meeting goals, exceeding expectations, innovation, efficiency, outstanding performance, etc.
Externally acknowledge client anniversaries, birthdays, milestones, etc.

5. Create a Budget
A monthly “recognition budget” ensures that the dollars are there to implement this important relationship building tool that will definitely impact your success. Remember, its an investment!

A Recognition Strategy is all about acknowledging the people who make your success possible, creating stronger relations and investing in your future success. Build “Recognition” into your company’s culture and gain a unique competitive advantage.

For more information on customer retention and acknowledging people, check out my articles: “The Unique Roles of my Role Models” and “Develop a Winning Formula for your Competitive Advantage” both found here on my website… Larry

More on the Importance of Building Relationships
and Staying in Touch…

I often speak about the importance of being pro-active and here I go again! This past Thursday I attended the monthly Networking Café at Niagara College and listened to lawyer Joe McCallum’s 15 Minute Power Presentation on Legal Issues. He was incredible and it left us all wanting more!

One of the many valuable points that I related to was the importance of establishing and maintaining key professional relationships before a crisis arises.

Think about it, if a busy professional; a banker, a lawyer, an accountant, etc. receives a call from someone they don’t know who is in a real jam and needs immediate help, how likely is it that they are willing to put their established clientele aside to roll up their sleeves and get dirty?

Sure you might get lucky and hit them on a slow day but the chances are slim and it could end up costing you dearly.

So begin today! Identify who those professionals might be for your business and commit to introducing yourself to each of them over the next few weeks. I should also add the significance of stopping by to say hello from time to time. This is the number one rule in building strong relationships and I’ve blogged about it before.

Think of this as an extension of my “On-going Conversation” practice that I encourage you undertake with your customers. The last thing you want to do is show up at their door with a crisis in hand when you haven’t took the time to say hello and awkwardly they don’t remember your name.

This isn’t about “if it happens”… it’s about “when it happens”!

For more thoughts on strategic positioning and relationship building, check out my articles: “Success, with a Little Help from my Friends” and “Team Building, your Competitive Advantage” both found here on my website… Larry

Test the “Six Degrees of Separation” Theory

Relationships are a key component to your business success and the influence that comes with a referral is powerful. Referrals work so well because they are based on familiarity and the established trust of others.

For the small business owner, having a Networking Strategy is essential but it can be a bit overwhelming to embark upon a campaign to connect with people in powerful positions when you feel so distanced from them.

This is where the Six Degrees of Separation theory comes into play.

You’ve probably heard (and used) the term “small world” when meeting someone who knows someone that you both have in common. But how small is small?

Six Degrees of Separation refers to the concept that everyone in the world can be linked through just six social ties. There is a book and movie and even a trivia game built around the concept which positions us to realize that important contacts are attainable if you simply make an effort to connect with people every day.

Numerous studies, such as Stanley Milgram’s “small world” experiment, have been conducted to measure this theory on connectedness. While the exact number of links between people differs depending on the population measured and the types of links used, it is generally found to be surprisingly small. Hence, the phrase “Six Degrees of Separation” is often used as a synonym for the “small world” theory.

To put the theory of “small world” and our “connectedness” to practice; the game “Six Degrees of Kevin Bacon” was created with the goal being to link any actor to Kevin Bacon through no more than six connections, where two actors are connected if they have appeared in a movie together.

For example, the “Bacon Number” of an actor or actress is the number of degrees of separation he or she has from actor Kevin Bacon, as defined by the game. The higher the “Bacon Number”, the further the actor’s connection to Kevin Bacon.

Here’s how the “Bacon Number” is calculated:
• If the lowest “Bacon Number” of any actor with whom X has appeared in a movie is N, X’s Bacon number is N + 1.
• Kevin Bacon himself has a Bacon number of 0.

Consider this example, using Elvis Presley:
• Elvis Presley was in Change of Habit (1969) with Edward Asner
• Edward Asner was in JFK (1991) with Kevin Bacon
Therefore Asner has a “Bacon Number” of 1, and Presley (who never appeared in a film with Bacon himself) has a “Bacon Number” of 2.

For additional examples of the Six Degrees of Separation, check out www.ubulu.com where you can see for yourself how the process works with other celebrities or take some time to examine the concept of Facebook which obviously is all about building a network of contacts through people we have in common.

It is indeed amazing how many people we can link ourselves to, the doors they will open for us and the benefits that come from these relationships when we take that important step to develop a Networking Strategy.

Facing your challenges and finding a way to win will always serve you well. For more on the importance of being proactive, check out my articles: “Success, With a Little Help from my Friends” and “Mapping your Success” both found here on my website… Larry

Studies have shown that just 4 percent of a typical organization’s dissatisfied customers will actually let you know that there is a problem. That means that only four out of 100 customers will tell you when you are doing something wrong. The study goes on to indicate that 96% just go away quietly… 91% of whom never return!

This represents a serious loss to organizations who don’t know how to treat their customers right and a tremendous gain to those who do! But the purpose of this post isn’t so much about handling complaints; it’s about the importance of developing a Continuous Improvement Strategy.

As a small business owner, how you position yourself to receive and embrace customer concerns & complaints will largely impact the degree of success that you achieve. You cannot implement change and improvement when you are not aware that there is a problem.

One of the biggest reasons that customers don’t complain is that they feel that no one listens or cares anyway. Show them that you are different.

Let’s look at Three Ways to Attract Feedback:
1. Be pro-active - Encourage customers to talk to you on a regular basis, whether it’s in person, in writing or over the phone. Your role is to listen.
ie: Call back 3 customers a day, Talk to them as they check out, etc.
2. Respond positively to all feedback that you receive – both good & bad. And rather than make excuses, take action and then let everyone know!
3. Reward & acknowledge those who care enough to voice their concerns.
ie: A Preferred-Customer card, Special Shopping Events, etc.

Attracting & embracing feedback is just the tip of the “iceberg”. A well planned Continuous Improvement Strategy will build customer loyalty, generate more referrals, attract new business, increase your sales and actually save you money on not having to replace customers who leave.

Contact me today and let’s begin to develop a Continuous Improvement Strategy around your particular business.

To take a closer look at your performance and your “Best Practices”, check out my articles: “Delivering on Promises will Deliver Success” and “It’s Time for a Performance Assessment” both found here on my website… Larry

A cornerstone for every Customer Retention Strategy!

As highlighted in my last post, if a perceived feeling of “indifference” is the single greatest reason that a customer leaves and goes elsewhere (68% of the time), that is, if they simply feel you take their business for granted, then acknowledging your appreciation and expressing your thanks is a powerful way to build loyalty and ensure that they will return.

So what exactly are “The Seven Thank-You’s”?

Well, they represent seven unique ways that your organization lets your customers know how much you care and appreciate their business. And the key to this exercise is to make sure that your “thank-you’s” stand apart from everyone else’s. If your way of saying “Thanks” is one dimensional and no different than the next guy’s, it is likely to go unnoticed, defeating the purpose and minimizing the impact of your Customer Retention Strategy.

And why ‘Seven’ Thank-You’s?

To push your creativity to the limit, to ensure that your recognition is on-going and to make a statement that creates a buzz! Generally your first three or four ideas are the easiest to come up with and the most common, falling into the same categories as everyone else’s. However, numbers 5, 6 and 7 tend to kick in the “WOW” factor and get you noticed.

Your Customer Retention Strategy can be as simple as a follow-up phone call upon completion of every project and sending them referrals on a regular basis. Personally, for my clients, I collect sample marketing materials and I clip articles that pertain to their particular business and then deliver them over coffee. The possibilities are endless and the key is to create your own collection of signature gestures that are uniquely yours.

Keep in mind that The Seven Thank-You’s are not limited to customers. Use the same philosophy to build healthier relationships with suppliers, employees and strategic alliances.

Strong relationships can help make you “competition-proof”. For more on this subject, check out my articles: “Team Building” and “Five Great Ways to Think Bigger than the Next Guy” found here on my website… Larry

An Exercise in “Why Customers Leave…”

When we work so hard and spend so much time attracting new customers, wouldn’t it be helpful if we better understood why they leave us to go elsewhere?

Studies have shown that it takes five times more effort to attract a new customer than it does to keep an existing customer coming back so it only makes good business sense to develop and implement a formal Customer Retention Strategy.
(We’ll look at this more deeply in upcoming posts.)

When I pose the question “why do they leave?” the first responses generally focus around competition and poor service. Roughly 9% will indeed leave to check out the competition and about 14% will leave because of dissatisfaction with the product or service. Reports go on to tell us that 5% of our customers develop other relationships, 3% move away and sadly 1% will die.

If you add these up they leave an astounding 68% who go elsewhere because of a perceived attitude of indifference toward the customer by the owner, manager or some employee. The bottom line – they believe that you just don’t care!

Interestingly, “indifference” is the one factor that is truly controllable. Competition comes and goes, people move away, different people have different definitions of quality and of course we all make mistakes but it is those of us who sincerely care and make it a point to let the customer know on an on-going basis, who achieve the greatest success.

What messages are you & your staff inadvertently communicating to your valuable customers?

The littlest things often make the biggest difference. Check out two of my articles on this theme: “Attitude is Everything” and “Promoting Leadership in your Organization” both found here on my website… Larry

One of the most incredible gifts that life provides; like fingerprints and butterflies, is the fact that no two moments are quite the same. Recognizing and treasuring those moments that are truly special isn’t something that I do enough of. They often arrive without warning like the calm in a storm where for a split second a little magic is made and if I am not ready for them, they can easily disappear unnoticed.

If there was a way that I could simply “rewind tape” and review my life I know I would be shocked at all of the incredible moments lost and relationships that were never realized.

So how can we ensure that those quality moments are acknowledged & savoured?

Consider the following Three Fundamentals to Capture Special Moments:

1. Keep your Eyes & Ears Open
As Dr. Phil says, “you can’t change what you don’t acknowledge” so begin by simply recognizing that the glass is never actually full and that there is always room for one more special moment.

2. Don’t Overload your Plate
When you find yourself buried in details and logistics I guarantee you are missing some of the most important and significant moments that come with the greatest opportunities and pay-offs.

3. Learn to Recognize the Signs
Emotion, teamwork, chemistry, spontaneity, opportunity and uniqueness as well as increased co-operation & respect all represent signals that tell you something special is happening.

With these 3 fundamentals in place and an awareness that a special moment is waiting around every corner, you will be astonished at the number of unique, defining moments you experience and the exceptional people you become connected to.

Success is built around relationships. For more insight and ideas on expanding your contacts and building relationships, check out my articles: “The Value in Values-Led Performance” and “Attitude is Everything”, both found here on my website… Larry

Ten Specific Steps to Ensure a Healthy Partnership…
A successful partnership doesn’t happen by accident. It is the result of many things coming together that include respect, trust, co-operation, communication and balance to name just a few.

At the same time it is important to eliminate informal assumptions & expectations by talking through the terms of your partnership and then documenting them formally in writing, before problems occur, at a time when both partners are feeling optimistic and positive about the success of the relationship.

This post represents an opportunity for you and your partner to begin examining the terms of your partnership and to start working on your own formal agreement by addressing the following Ten Steps:

1. Roles, responsibilities & job descriptions for each partner
2. The degree of ownership by each partner
3. How effort versus financial contribution by partners will be weighed
4. How partners are remunerated for their contribution to the business
5. How day-to-day decisions are made and by who
6. Who will manage money, banking and financial matters such as handling of cash, writing of cheques, the use of debit & credit cards and banking
7. The frequency & nature of regular communication, updates & meetings between the partners
8. Who authorizes business expenses and major purchases
9. Position on family members being involved or employed in the business
10. Terms of the Exit Strategy or Buy-out Agreement ie: Use of shotgun clause

By investing the time to address these ten important issues, you are taking steps to avoid needless misunderstandings and ensure on-going harmony between partners.
I strongly recommend that anyone involved in a partnership make writing a formal Partnership Agreement a priority.

This is the third of three posts on the importance of written agreements in business. For more information on this topic, check out my articles: “Mapping your Success” and “The Delicate balance Between Success & Failure” on this theme, both found here on my website… Larry

The Harsh Reality…
In my April 7th post, I provided a scenario where a brother and sister formed a business without a Partnership Agreement in place. I left you with the question of why the relationship may have deteriorated and I will now provide a number of possible contributing factors.

With no agreement, the partners never actually defined roles, responsibilities and expectations. It becomes easy for incorrect assumptions by each partner to cause frustration and friction that wears on the respect and trust that once existed. Like working without a Business Plan, they have not put themselves in a position to anticipate what might lie ahead and what their options might be.

Change is constant and inevitable. Circumstances change, feelings change, abilities change, even health changes and actually the closer you are to a business partner, the more likely you are to take things for granted leaving the relationship vulnerable.

Bottom line, if you don’t manage change, change will manage you!

An effectively written Partnership Agreement accepts and embraces change by not just assuming it “might” occur but by addressing what happens “when” it does occur. This can be a difficult acknowledgement for optimistic new partners.

While a good Partnership Agreement will actually help identify possible pitfalls and avoid misunderstandings, it will also provide an Exit Strategy to protect all partners and ensure that the company’s hard earned assets are not consumed in legal fees, battling out “who was right, who was wrong and who gets what”. Unfortunately, we have all seen this happen.

In my third “Put It In Writing!” post on April 11, I will outline Ten Specific Steps to Ensure a Healthy Partnership to help you effectively construct your own Partnership Agreement.

This is the second of three posts on the importance of written agreements in business whether it’s with partners, customers, suppliers or even employees. For more information on structure, check out my articles: “Think Like an Entrepreneur” and “Improve your Decision Making Success with SWOT” on this theme, both found here on my website… Larry

An Innocent Beginning…
Robert and his sister Sarah decided to start their own electrical contracting business. Robert had worked as an electrician in local industry for 15 years when the company suddenly closed leaving the 40 year old out of work and unsure of his future.

Robert had always dreamt of owning his own business but recognized that he was very uncomfortable with selling and managing finances. Sarah, now ready to re-enter the workforce having raised two children, suggested her and Robert form this business as 50/50 partners, with her handling the administrative duties, setting up the work, paying the bills, managing the payables and receivables and Robert doing the electrical work moving from project to project without the headaches of administration, scheduling and paperwork.

Family friend Steven Milford had been in sales all of his life but was unhappy with the company that he currently represented. With all of his industry contacts, Steve agreed to look after sales. It all seemed like a perfect fit. After all, they were “family”.

In the beginning - all smiles!

As a part of their start-up, I spoke to them about a written Partnership Agreement. They both just looked at each other and smiled. Their response was “we’re overwhelmed with just getting started. A Partnership Agreement is low on our priority list. We’re related, we love & respect each other and we know each other better than we know most of the people that we have worked with in the past. We’ll get around to it once everything else falls into place.”

Despite my persistence, the Agreement never did get done and before long little things began to put a strain on their relationship. Very quickly communication broke down, no one would give an inch and Robert called me in for some help in sorting things out.

How might a Partnership Agreement have avoided this unexpected problem between people who were so close and open with each other?

In the beginning, going into business together seemed simple and the fit so natural but having not formally addressed roles, responsibilities and all of the details that come with the day to day operation of a business, suddenly the closest of people put up a wall and refused to work together as a team.

I will supply you with more details in my next post on April 9 as we resolve this case and avoid future problems. In the mean time, what happened here?

This is the first of three posts on the importance of written agreements in business whether it’s with partners, customers, suppliers or even employees. For more information on this topic, check out my articles: “Creating an Action Plan” and “The Unique Roles of My Role Models” on this theme, both found here on my website… Larry