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Technology Challenge: Utilizing Internet Advantages One of technology's greatest gifts to business is its ability to make smaller companies virtually indistinguishable from larger competitors, Dana Shultz says. "Technology can be an equalizer," he says. "By in large, people aren't going to know or going to care if you are little." Today's most talked about technology resources are email and the Web. Companies that properly utilize email have a number of advantages over competitors still relying on the phone, fax and overnight delivery services, Shultz says. For one thing, the cost of communication drops dramatically. For another, firms can greatly reduce proofing time. "You can get [files] to your clients in a matter of minutes with email," he says. "They don't have to be standing next to you looking at a piece of paper on a desk." The Internet also gives companies unprecedented access to information. Companies can get advice on running businesses more efficiently; research new products, technologies and services; find vendors; and target prospects across the country. "The amount of information out there is phenomenal," Shultz says. "The World Wide Web is one obvious way to deal with the obstacle of time-consuming searches for information." Here are some other suggestions for using the Internet to your advantage: Set up online catalogs to sell products to customers. Online catalogs and marketing also decrease the time you spend educating customers, Wally Bock says, because clients can utilize your Web site to research your company beforehand. Use your Web site for special services. For example, Bock says, reserve a designated area where preferred customers can check inventory or view order status online. Set up referral programs. Allied companies can construct links between Web sites to promote complementary products. Use an intranet site for official documentation, Bock says. The intranet refers to a private communications network within an organization. Here, companies can post records such as benefits packages, employee manuals or best practices documentation. This reduces paper costs and the time human resource personnel spend answering employee queries. Many companies, especially smaller organizations, may need outside help to determine options for implementing technologies, such as Internet capabilities or enhanced communications systems, Shultz says. Without guidance, they may not understand how new technologies fit into their business strategies, he says. Consultants also can help companies overcome the following obstacles: When submitting proposal requests to vendors, Shultz says, "a delicate balance must be achieved. On the one hand, you want to provide appropriate information and guide vendors so that their responses meet your requirements and can be compared to other vendors' proposals. On the other hand, you don't want to be so restrictive that you put them in a straitjacket. They have a lot to contribute here." Technology vendors may be able to propose products, services and capabilities you weren't aware of, he says. The one area where companies without information technology personnel may need the most outside assistance is comparing vendor proposals. While price comparisons are simple, Shultz says, many companies don't possess the knowledge to compare functional differences and see how those differences can affect future operations. Negotiating contracts is "a whole art unto itself," Shultz says. "Vendors almost invariably will take advantage of a naive client." Companies typically pay vendors a percentage of the system's overall cost at different stages of the project. Shultz recommends requesting an acceptance testing provision. Under this provision, vendors are not paid in full until the system is in place for a specified time and clients have tested the system. Management Challenge: Motivating Employees Money may not be the answer to all your problems, especially when the problem is motivating employees, says Steven Gaffney. Many businesses, especially sales organizations, rely on the power of the dollar to create employee loyalty or to improve results. But these companies may be missing the mark, Gaffney says. Several other factors may have more of a motivating influence. First, Gaffney says, company principals should be up-front about where they want to take operations and how they plan to get there. "Honesty in the workplace is not something that's talked about much," he says, "but it's like the foundation of a house. If trust is lacking, that's going to affect everything else." Good leaders don't hide their intentions or disguise decisions or poor results that could adversely affect employees. Sincerity at the managerial level leads to security and employee motivation, Gaffney says, because employees can concentrate on tasks at hand without worrying about hidden agendas or surprises waiting around the corner. If trust is present, employees also are more likely to buy into your vision for the future, Gaffney says. Company principals must share their visions so that every employee is aware of how his or her effort contributes to moving companies toward their goals. "People really respond to that," Gaffney says. Another key is determining which incentives motivate employees. Gaffney uses the acronym MT. SAMIE to illustrate basic motivating factors: Money-"Money is a weird thing," Gaffney says, "because it's not what it seems to be. People want to be paid what they're worth, but that's a perception, not a figure." For example, a salesperson may not care that his compensation package doesn't amount to six figures. But after discovering that one of his prime competitors makes that much, money becomes an issue because he feels his ability equals his competitor's. Time-Some employees like to be rewarded with more time off from work. Security-Other employees are motivated by feeling that their places within organizations are secure and knowing that their futures are provided for. Achievement-These employees are motivated by getting duties accomplished and acknowledged. Making a difference-"[This factor is] overlooked because everyone thinks these are the Mother Teresas of the world," Gaffney says. "But assuming that their bills are paid, people want to feel like they're doing more than pushing paper." According to information Gaffney has gathered from human resource personnel, approximately half the employees leaving their jobs cite a lack of fulfillment as one of the reasons. Image-"This is what motivates people to say 'yes' to a project when they really want to say 'no,'" Gaffney says. "We're afraid that saying 'no' won't look good." Enjoyment-"This is a very overlooked incentive," Gaffney says. While office parties may be pleasurable, this category is better defined by employees' day-to-day enjoyment of their jobs, he says. Pay careful attention to whether or not employees enjoy working together. Learning what motivates different employees is valuable, but Gaffney cautions against labeling personnel. People can be motivated by different factors at different times, he says. He advises managers to make a variety of benefits available to employees and then ask questions that will help identify individual motivations. For example, if a pair of employees like to golf, Gaffney says, reward them with a golf outing. "This isn't complicated," Gaffney says. "It's called getting to know people. This isn't about a big conversation. It's about a lot of little conversations that come together. Today, spending part of the day getting to know people needs to be part of the [manager's] job." Besides, Gaffney says, managers with highly motivated employees have more confidence to delegate assignments and don't have to spend as much time hiring and retraining new employees. "You don't have time not to do this," he says. Marketing Challenge: Creating an Effective Telemarketing/Inside Sales Program Business-to-business telemarketing is a tool that companies should explore, Joel Linchitz says, but not without careful planning. "You shouldn't rush in and say, 'Let's put a few people on the phone,'" Linchitz says. "That's a prescription for failure." Companies should first determine telemarketing's role in the organization. Is the goal to develop leads and make appointments for the outside sales staff? Or will telemarketers be utilized as inside salespeople who maintain smaller accounts while outside sales reps take care of top clients? Next, install a good contact management system to assist with collecting data and scheduling calls in a methodical way, Linchitz says. It is extremely important to locate your best prospects before committing to telemarketing, Linchitz says. "You're not looking for a needle in a haystack," he says. "You're looking for a haystack full of needles. You could spend $6 to $10 per contact. So if you're calling the wrong people, you could waste a lot of money in a short period of time." Linchitz suggests obtaining referrals from your current customer base. When this resource is exhausted, profile your best customers, identifying common threads. For example, do a large number of your best customers come from a particular industry? Are there certain size businesses you appear to work with best? Does each of these clients utilize a particular service offering from your company? After developing a profile, purchase call lists that contain prospects similar to your best customers. When you call, tell these prospects that your company works with firms just like theirs, Linchitz says. They are likely to listen, in part, he says, because they are interested in how their competitors operate. Another essential element is proper training. Linchitz offers the following tips: Train the telemarketing staff to block out 2-hour time increments for uninterrupted calling. Lead lists and other relevant information should be prepared beforehand. By making calls in a continuous string, Linchitz says, you can weaken the sting of rejection. "But if you get up for a break and a cup of coffee and get turned down, it hurts all over again," he says. Prepare dialogue guides that flow calls. The guide should not be a word-for-word script, Linchitz says, but a primer of main points, answers to the most likely objections and an effective close. Watch what you say on the phone-language is powerful and customers are more likely to take your words at face value. "The worst thing you can say is, 'Can you spare a couple of minutes,'" Linchitz says. "No one can spare a couple of minutes." Teach telemarketers to reach decision-makers. Inexperienced inside salespeople can spend valuable time making pitches to people without authority. Companies also must put the right people on the phones, Linchitz says. A good field sales employee does not automatically make a good inside salesperson. According to Linchitz, effective telemarketers posses the following characteristics: Proactive personalities-These people are assertive, but not aggressive. Good listening skills-They delve for answers, but concentrate on hearing what interests customers. An even temperament-Inside salespeople deal with more prospects than outside salespeople, and therefore face more rejection. Solid speaking skills-Prospects place more confidence in telemarketers who speak clearly and articulately. "We'd rather talk to someone who sounds like Peter Jennings," Linchitz says. "We tend to trust people who sound like that." The final piece of the telemarketing puzzle is keeping the inside sales staff motivated, Linchitz says. "[Telemarketing] can burn people out very quickly," he says. "The management part is a key issue." Linchitz recommends using incentives, contests and games. If you have a small sales staff that splits time in the field and on the phones, he suggests organizing rallies where everyone stays in the office and makes calls together. Technology Challenge: Combating Information Overload Information overload is not so much a problem solved by technology as precipitated by it. Faxes, voice mail, email, Web sites, cell phones, pagers and networked computer systems are tools that make businesses better. But they also create more work, higher expectations and increased demands. "People experience information overload as not having enough time to get their work done," Ira Chaleff says. "What's really changed is the amount of information and requests businesses get, and the speed with which they are expected to respond." Business people often look to computer databases, complex software programs and electronic organizers in hopes of increasing efficiency and productivity. But better results have less to do with a single technology and more to do with how people interface with technology and all the information it produces, Chaleff says. "Everyone has certain systems they use to process work," he says. "But unless they develop good Information Age habits, the amount of information will overload their systems." Follow these low-tech tips to improve your performance in a high-tech world: Filter information. "All the information you receive might be interesting," Chaleff says, "but it's not all critical. If you don't screen out noncritical information, the price gets very steep. You'll drown in it. You'll get desk stress." He suggests setting up filters in email systems, limiting Internet searches to crucial information, removing yourself from non-essential mailing and fax lists, and "ruthlessly determining what you don't need to read." "Do it now," says Chaleff of dealing with information that doesn't take long to handle, but is relevant to your business. According to Chaleff, 80 percent or more of the tasks facing you-on the fax machine, on email, on the computer system, on your desk-take 10 minutes or less to complete. But many people glance at printed and electronic information and return it to their "in" boxes or email systems to deal with later. "They end up tripling their work," Chaleff says. "Handling information immediately keeps the to-do list from becoming endless." Schedule time to handle more time-consuming tasks, Chaleff says. Instead of procrastinating and increasing your stress, he says, tackle your most dreaded task first, breaking it into manageable pieces. "That builds up the momentum so it doesn't seem so difficult," he says. Batch similar tasks. Instead of answering email, conducting research on the Internet, calling prospects on the phone or sorting through mail in bits and pieces, focus on a single task and finish as much as you can at one time. Segregate files. After creating efficient habits, business people need to construct efficient systems to match. A simple trick, Chaleff says, is sorting "active" files from "reference" files. Active files are those you will likely use in the course of the next week or two. Reference files are those that contain past research you call up only occasionally. The standard rule, Chaleff says, is that 80 percent of your work revolves around 20 percent of your files. By categorizing files this way, you can access essential information quickly. Use a responsibilities map. Any job can be broken down into 6 to 10 key functions, Chaleff says. For example, a printing firm's general manager may divide responsibilities into a half dozen general categories: sales, production, finance, personnel, marketing and equipment. After determining broad responsibilities, use them as filing categories. "If you do this," Chaleff says, "it becomes intuitive where you should file everything." Use the same filing system for paper files, electronic files, email files and Web site bookmarks. Then, you won't wonder where you put those good ideas or critical information when it's time to use them. Management Challenge: Developing Strategic Business Plans "When you say 'strategic business plan' to most entrepreneurs," Jim Ball says, "their eyes roll back in their heads. There's a giant leap to get over the wall of, 'Why should I do this?' The major challenge is that they've never done it, and they don't know what the benefits are." Many people define a strategic business plan as "some big, fat document you send to the bank," Ball says. But the strategic plans Ball refers to are maps for companies' futures. "It's an operating plan," he says. "It gives you detailed strategies and a timeline for when milestones should be reached." Most companies need help developing strategic plans, Ball says. Typically, company principals are so wrapped up in day-to-day operations that they neglect to question the directions their businesses are taking. Ball's intensive questioning process puts the business back in neutral. "It's an Olympics in thinking," he says. "It reveals what their thoughts are. I slow them down and bring them out of hyperlife." Here is a sampling of questions Ball asks to get company principals thinking about their companies: Who is your customer? Why did you choose that type of customer? Why not other types of customers? What type of customer relationships are you fostering? Do you pursue one-time customers? Is your goal a lifetime customer? Do you start by selling a client a single product, then diversify? What should you do to ensure your relationships are working? Should you establish a client service plan? Will you meet with them several times a year? How often will you communicate with them? How do you differentiate between customers? What will an 'A' customer receive that a 'C' customer will not? What is your unique selling or service proposition? What will clients miss if you stop serving them? Why shouldn't they buy from someone else? What products do you offer? Which products are the most profitable? What sales support materials should you have? After answering those types of questions, businesses can move on to another strategic planning method-setting up specific goals for different stages of company growth. For example, Ball says, companies might choose to develop a customer bill of rights during the start-up stage, then write a one-page profile of its average client after a customer base has materialized. "If they complete each of their steps," he says, "they basically have a plan." Companies avoid developing strategic plans because the process seems overwhelming, Ball says. To combat inertia, he suggests focusing on one or two areas of business at a time-customer segmentation, client relationships, sales, marketing or office operations-instead of tackling the whole process at once. "If businesses try to go from no plan to a complete plan in one fell swoop," he says, "the effort will kill them." How far-reaching should the plan be? The standard answer is five years, Ball says, but he thinks a 3-year plan is suitable and more realistic for smaller businesses. In fact, Ball says, it's fine to start with a one-year plan to get your organization in the habit of developing long-term strategies. "We're not trying to eat the whole pie at one time," he says. "We're trying to take a bite." Marketing Challenge: Building Customer Loyalty "Some companies don't understand that, fundamentally, their whole business depends on creating loyalty," Christine Lenick says. "And the greatest challenge to [creating loyalty] is not understanding that they have a core group of customers that drive their profits." "In today's world," Lenick says, "the ticket to play the game is meeting your customers' core product or service desires." If there is underlying dissatisfaction with the core function, customer loyalty can "diminish underneath your feet like sand through your fingers," she says. It's impossible to meet the core needs of every prospect, Lenick says, but many companies test the philosophy of being all things to all people. The results are often alienation of their best customers and poor customer retention. "Companies need to determine what business they are really in," Lenick says, "and build everything around that." That doesn't mean being pigeonholed; it means looking beyond the commodity products you offer and identifying what values you are selling. Lenick points to the Starbucks chain, which essentially elevated itself above the business of selling coffee. While its customers still purchase the same product, in reality, Starbucks "sells" the culture it has created for coffee drinkers. Document management companies can do likewise by pinpointing what unique qualities they have that customers want. "They're interacting with customers on a psychological level that goes far beyond documents," Lenick says. To determine your focus, profile customers who drive profits, not necessarily revenues, Lenick says. "If you focus on building the loyalty of your [top] 10 percent, you can really grow your business," she says. By answering key questions, she says, you can tighten your bond with these top clients: What products do they buy from you? What do they buy besides documents? What are their lifestyle demographics? "Look across the panorama of human need," Lenick says. "Are they driven by esteem, respect, security?" Look at the language customers use in their own marketing materials, she says, then try to mirror that language and the values it suggests in your offerings to them. What is of value to your customers' businesses? Where are they taking their businesses? Don't answer for your customers, Lenick says. Ask them directly, and use the answers to determine their patterns of value and behavior. What does your customer expect from you? Are you delivering it? Again, ask your customer; don't make your own judgements. When you profile core customers, you will have a better understanding of what they are really buying from you and what is needed to retain them, Lenick says. "Once you know the gap," she says, "it's a matter of realigning your business around what is of value to them." But strengthening customer loyalty takes a real commitment, she says. "This isn't a program of the month," she warns. "You should do it actively, not reactively." Back 
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