Quantcast SME Insight: July 2007 Archives

July 2007 Archives

Email is an indispensable medium in today's communications. After all, it's lig htning fast ... and many believe that for all its quirks, it's still more relia ble than old-fashioned "snail mail." Email's ease of access, low sending cost, and blazing speed, however, often lea d to abuse. And we users become the victims. Onlineetiquette.com cites two key reasons for people behaving badly on line. First, there's the anonymity that's provided by the medium. It is so easy to create bogus email accounts, thereby making it difficult to establish the i dentity of an individual. This is why it is easier for some to express unpopula r, or even rude, opinions via email messages. The lack of face-to-face contact gives people a sense of boldness to say things they normally would not. Second, perhaps due to the perceived informality of the medium, many tend to be lieve that anything goes when online, and that everyone has the freedom to expr ess whatever opinion he or she may have, not matter how crass it may be. An example of poor Internet behavior is flaming, which is defined as a verbal a ttack in electronic form. It is a deliberate act that aims to upset its receive r. It may come in the form of foul language, insults, verbal harassment, and ev en threats. So what do you do when you get flamed? Should you retaliate and further fan the hatred? The best way to address flames is by first finding out the reason why the indiv idual acted this way. Misunderstandings often occur in email since it is devoid of tone and facial expressions. People can easily jump to conclusions, so take time to clarify matters before responding in an equally agitated manner. You may also want to apply reverse psychology in the form of a politely crafted response. This way, the person who send you the message would realize that his behavior was completely uncalled for. And if you're lucky, you may even get an apology for the undeserved rudeness. However, if you feel that you have been severely violated, you may opt to repor t flames to this email address--abuse@(their ISP). All Internet service provide rs have terms of service that protect its users against flamers and other forms of abuse. You may also want to save the email message as reference. Ignoring flames completely is also one way to deal with it. Some just do not de serve your attention, and it would be a waste of time to respond to messages of this nature. Do not stoop down to a level that is way beneath you. There are v ery good reasons why the delete key exists, and this is one of them. Keep in mind that the challenge here is how you can maintain an atmosphere of p rofessionalism. Remember that maintaining a business-like demeanor, even in onl ine communications, gives you and your company that competitive edge that sets you apart from the rest.
Many business owners believe that the best way to get things done is by becomin g enfants terribles who can scare and intimidate their employees into doing wha t they have to do. After all, isn't that what Steve Jobs (Apple) and Ken Lay (Enron... before they crashed) and a host of other CEOs of successful firms do? Namely, launch verba l tirades at people who don't do what they are expected to do, thus humiliating them into doing their jobs right? True. And boy, it can really be effective. The premise for this strategy is tha t many employees simply have no idea about what they are capable of accomplishi ng, so sometimes a little drill camp Sargeantry can go a long way in making the m perform beyond their normal limits. Here's the catch: "Drill Camp" management works when the company is worth fight ing and staying for--despite the verbal "abuse." This is why people who were ma de to feel like worms under Ken Lay's management still chose to stay on at Enro n... because the perks were just too attractive (again, until they blew up). Ditto with Apple. Despite the verbal tirades of a young Steve Jobs, Apple emplo yees stuck it out. Because, heck, it was such an honor to be working for a comp any like Apple. And the creative environment helped too. The problem comes in when a managerial tyro starts throwing his or her weight a round... and the employees feel that there is nothing else in the company that' s worth staying for anyway. THAT's when Drill Camp management becomes a problem . Especially when the people get tired of living in fear and start marching off one by one, even in the midst of crucial projects. The moral of this story? If you plan to subject your organization to a pressure -cooker of emotions, then first make sure that the company is worth staying for in the first place. And if your business has nothing exceptional to offer your employees in terms o f compensation or working environment, then it's best to just bite the bullet a nd try to be a pleasant but firm manager in order to keep them there.
Business cards are an internationally recognized means for presenting infor mation about you and your company. Here's how to make the most of them. Many of us may take business cards for granted, tossing them about or accepting them with a cavalier attitude. But a business card is an important first point of contact. And often, it is your only opportunity to make someone remember th at you even exist in the first place. So it would be wise to pay a little more respect to this humble little instrument. Here are some tips on using your cards to help make that first impression even better. B
usiness card samplesKeep your cards in pristine condition. Business cards reflect the k ind of person that you are, so invest in quality paper. Choose an appropriate d esign or logo, and make sure that the cards are not worn out, torn, or wrinkled when presented. Placing the cards in a case does the trick, and it helps you m ake that positive first impression. Know the proper time to offer your card. Usually, business car ds exchanged at the beginning or end of an initial meeting. However, when deali ng with someone of a higher rank, wait until he or she asks for it or until a t hird party has introduced you to one another. Show interest once a card is presented to you. Take a good loo k at it. This is the best time to make clarifications, such as the proper pronu nciation of a name. Commenting on it is also one way to keep your conversation going. Always have a few cards at hand. Opportunities may come when y ou least expect them and in the most unlikely places, so bring a handful of cal ling cards at all times. Store cards properly. Never put a business card at the back of your pocket or inside your wallet. Doing so may make you look disorderly or, w orse, disrespectful. Instead, tuck them in a planner, portfolio, or a business card case. Consider cultural diversity. Since etiquette varies among cult ures and nations, it is important to research and take note of these difference s, especially when you're doing business abroad. For instance, it is customary to use both hands when giving and receiving business cards in China and Japan, while in India, the right hand should be used instead. On the other hand, Europ eans have much more relaxed business protocols. Observing appropriate behavior brings about an atmosphere of respect and unders tanding. So whether you're in a business meeting or social function, practicing proper business card etiquette is a must. And it will hopefully lead to even b etter first impressions.
Instead of making life a little easier, this wardrobe concept has managed to ba ffle the workforce. Here's how to do corporate casual the right way. What makes business casual so ambiguous is the fact that each industry, and per hanps even every company, has a different set of norms. Smaller companies tend to have more relaxed dress codes as opposed to multinational corporations. And creative industries, such as advetising, are even more lenient since a relaxed dress code can be good for productivity. Here are some tips to avoid disastrous casual dressing: Take time to observe what the other employees are wearing. Do this as early as the first interview for a new company. By dressing in sync wit h the rest, there is no risk in sticking out like a sore thumb. Ask the HR department for any guidelines that they may have. S ome companies have gone the extra mile to get the rules of business casual for their office down pat. Do a little research. Read about the industry and the company, ask friends who work in similar industries, and window-shop at stores that are known for selling business attires. Try to get a feel for the company. Take into consideration the image that you want to project. A secret to quickly climbing the corporate ladder is to look the part, so do try to blend power-dressing with your casual getup. It never hurts to be slightly overdressed. Always have a jacke t ready in the officeâ???this can be thrown over whatever you have on and can m ake you instantly more presentable to a client or to a superior. Business casual was adopted to make the work environment friendlier. But when t aken to the extreme, it can cause tension in the workplace. Therefore, superior s should set the standards for the rest of the employees to follow. And for the ir part, employees should realize that while business casual is a privilege, it should not be taken advantage of at the expense of professionalism.
Before you can even think of the actual brand names to toy around with, you hav e to do your homework first. Here are the steps for building a good brand, as e spoused by branding guru David Aaker: Develop the brand strategy. Identify who your target market is and what you product is all about. After all, your brand should appeal to your target market. Next, think of what your product's unique selling point is. Thi s will make the nature of the product all the more clearer. The clearer the poi nt comes across in your brand strategy, the easier your job will be of convinci ng your targget market to buy. Develop the creative theme. The creative theme refers to just how you want you message to come across to your target market. Do you have a ha ppy product? A serious product? A mature product? A young product? Products hav e personalities, and developing that personality is part of your job (you are, after all, raising a baby here). Think of all the possible inferences and conno tations that you want your brand to bring into the minds of your market. What c olors would you focus on? What materials would you work with for your collatera ls? Create the name. You've done your homework. Now it's time to a ctually think up the name. Keep it short. In fact, the rule of thumb is that a brand should have no more than three syllables in it. Think of the most popular brands in history, and you'll notice this to be the case. Even Coca Cola had t o shorten their name to Coke in order to build up brand value! It also helps if your selected brand actually helps connote the unique selling point that you h ad in mind for your product. Test the name. Sometimes, you may think that you already have a winner of a brandâ???and then it turns out that you had bad taste all along a nd your market absolutely hates it. So go and pretest your brand. Ask people wh o belong to your target market. And then ask them if the brand succeeds in mani festing what you want it to project in the first place. Screen for trademark availability. Let's face it. If you're un lucky, you may end up with the perfect, perfect brand name ... only to realize that it has already been taken. Ouch. You'll want to come up with at least thre e possible brands that you can be happy with. Particularly since all the good n ames are going fast.
In order for effective communication to take place, good listening skills are n cessary. Done well, one also gains access to priceless information such as a cu stomer's need, an employee's concern, or the new boss' pet peeves. Listening entails a lot more effort than just catching sound waves. Afterall, h earing is merely the first step in the process of listening. For true listening to occur, one also has to interpret, evaluate, understand, respond, and rememb er. Here are five simple tips that can help make you a better listener. Get rid of the noise. Noise does not only pertain to the unnec essary sounds in your surroundings. Other sources of noise include thoughts on unrelated matters, the attention-grabbing clutter on your desk or even physiolo gical discomforts such as hunger. Make an effort to eliminate these noises when engaged in a conversation. Cultivate interest. Be interested in the topic, or at least tr y to be by asking probing questions. Doing so doesn't only show that you're pay ing attention; it also allows for more information that may make your comments more substantive when it's your turn to speak. Have an open mind. We all have our opinions and, most of the t ime, they differ from the views of others. For fruitful listening to occur, how ever, it would be better to initially suspend judgment and personal biases to t ruly hear another person's point of view. Emphatize. There's no better way to do it than by listening th e way you want to be listened to. And this entails focusing on the person and w hat he or she is saying, even through non-verbal cues. Maintain eye contact. Ma ke the person feel that what they're saying is important to you. Finally, make it a habit. Concious repetitive efforts create h abits, so make it a point to sharpen your listening skills through every passin g conversation. You'll not only become a better listener but an effective one, too.
As a company grows and transactions increase in number and complexity, it makes good sense to prepare a budgetâ???a detailed plan showing how resources will b e used during a given period of time, usually a year. What are the benefits of budgeting? First, it encourages the manager to think systematically and plan for the futur e. Running a business entails more than just dealing with day-to-day operations . One has to ensure that the business remains viable and sustainable. Therefore , knowing what and where certain business endeavors should be accomplished is k ey. Second, a budget helps the manager decide how to allocate the business' scarce resources. For instance, if excess cash was available and the manager is choosi ng between paying off high-interest loans or investing in additional inventory to increase revenues, he may project budgets for both scenarios and pursue whic hever option has a more positive effect on the bottom line. Third, a budget provides standards for evaluating performance. Targets are comp ared with actual results and differences or variances between the two are ident ified and analyzed so that the company can take corrective action. For example, if actual sales were significantly below the budgeted level, the manager is al erted to study the possible reasons for the shortfall. Fourth, a budget, especially in its preparation, âforcesâ?? company personnel w ith different responsibilities to work together toward achieving common goals. The salespeople might aim for increased sales, for instance, which may involve a related increase in manpower. On the other hand, the human resource people mi ght be aiming for lower costs through a hiring freeze. The budget will then hav e the effect of unifying these seemingly opposing goals so that, in the end, th ese company personnel find a way to achieve whatever is agreed upon to be the b est for the company. Moreover, a budget serves as a communications tool to exchange information abou t the company's goals as well as achievements. It also creates awareness among company personnel on how each activity contributes to the company's overall per formance. Finally, a budget, if used properly, provides the manager the motivation to wor k harder to achieve the projected results.

Changing face of advertising

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With the advertising congress just around the corner, we think it's proper to a sk whether you think traditional advertising dying. Author Bryan Eisenberg already has his opinion on the i ssue. His reasons why he thinks advertising in traditional media like print, ra dio and television is dying: Media Fragmentation TiVo, iPods, hundreds of cable channels, satellite TV, radio websites, consumer -generated media such as blogs and podcasts, and even video games--all of these cut into people's attention. Word-of-mouth advertising and 'badvertising' Thanks to today's telecommunication technologies that emphasize instant connect ivity, good news about your product can spread like wildwife quickly. On the ot her hand, bad news about your business, or a failure to live up to your adverti sing claims, can cancel out any form of traditional image-control advertising. Overemphasized demographics Traditional advertising firms can tell you where the consumer may be, but they don't necessarily tell you what kind of message they'd respond to. Result: adve rtisements that end up treated by consumers as "spam" or unwanted info-junk.
The secret is out: management books you typically find in the business section of bookstores are junk. Leadership books are no different. Most of them are sti ll talking about whether leadership is an art or a science. Do you really need to spend Php800 to Php1,000 (US$16 to US$20) for the obvious answer? (Leaders a re made and are rarely born). Occasionally, however, good books do come out (Built to Last, Good to Great, Freakonomics, The World is Flat, etc.) and ma gazines that write about leadership. Fast Company's (an Intern et magazine) list of How to Make Yourself a Better Leader is a perfect example. Here for your reference is the list of Fast Company's 10 ways to beco me a better leader: 1. Leaders are both confident and modest. You need a healthy e go to succeed, but leadership is not about making yourself more powerful. It is about making others more powerful. 2. Leaders are authentic. You need to earn the trust and respe ct of your people. Remember that trust is the end result of a relationship, not an ingredient. 3. Leaders are listeners. Good leaders are fueled by curiosity , and the enemy of curiosity is grandiosityâ???thinking you have all the answer s. 4. Leaders are good at giving encouragement and are never satisfied. Leaders are always raising the stakes for themselves and their people. 5. Leaders provide direction. This is different from providing answers. Nobody is smart enough to know everything, but smart leaders know how to pose the right questions. 6. Leaders must enable change but stand for values that don't change. Leaders must constantly evaluate what habits must be changed for the co mpany to prosper. 7. Leaders lead by example. Leaders have a fundamental obligat ion to live their lives according to the principles they espouse. 8. Leaders don't blame, they learn. Even the smartest leaders make mistakes. The important mindset is to try, fail, learn, and try again. 9. Leaders look for and network with other leaders. Stop playi ng the role of the Lone Ranger. Look for allies and remember it is only lonely at the top if you place yourself on a pedestal. 10. Good leaders make more good leaders. The team with the bes t leaders wins. The ultimate task of a leader is to make more leaders. Excerpts from the article âUnleashing your leadership potentialâ?? from SME Insight Magazine.

Patience in positioning

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Here's a quick anecdote to espouse the virtue of patience when trying to reposi tion one's products. Believe it or not, cigarette brand Marlboro (no, we don't enco urage smoking; this is strictly for the sake of example) was once a lady's ciga rette. It's claim to fame was a red filter. But in an effort to expand its market, Philip Morris decided to reposition the brand towards male smokers. They didn't get it right immediately. First they promoted the brand using men w ho had inverted tattoos (!). Next came an appeal using a sultry torch singer. L ater on would come the idea of using American cowboys. But even then, the image ry didn't immediately catch on. And it wasn't until much later, when Marlboro h it the jackpot by using the theme from the Western movie "The Magnificent Seven " in its cowboy ads, that the image of the Marlboro Man finally took shape. Think about it. If Philip Morris was impatient and decided to abandon the move towards men at the first sign of failure, then we wouldn't have the iconic Marl boro imagery today. Instead, perhaps, we'd have the Marlboro Woman? Moral of the story: Just because your market doesn't react to a change in your positioning doesn't mean that your identified positioning is a failure. Perhaps it's just a matter of finding the right imagery or message to heighten your ta rget market's awareness and interest.
Mystery shoppers: Do you know who they are? A sale can be made or broken at the store, depending on the performance of the sales people who represent the brand. Because of this, it is imperative that ma nagement has a way of gauging and monitoring their sales force's actions. Enter the mystery shopper. The mystery shopper is an average person like you and meâ???party of your targe t market and virtually undetectable by your sales force. They are normal indivi duals hired to rate the service in a store. They come in and interact with the staff, and with a criteria in mind, they evaluate the store. Typical criteria i nclude lines of display, quality of service, and cleanliness and attentiveness of the staff. Using a mystery shopper is a great way to measure how you're doing at the most critical point of your value chainâ???the point of sale. Great in-store service can result in significant gains if you can turn the customers who walk in "jus t to peek" into people who walk away with a smile on their faces and bags in th eir hands.

Basic Business Travel Tips

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Are you heading out of town for a business meeting? A seminar or workshop, perh aps? Chuck the old ribbon around your pinky finger trick and feast your eyes on these business travel tips from SME Insight. Itineraries Be sure to leave a copy of your itinerary both at your home and at the office. This will come in handy if circumstances arise where you will need to be reache d by someone from home. Backup Travel Documents Make sure to keep copies of your passport, visa, and other travel documents wit h you and with someone you trust back home. This will ensure that you won't be left stranded in a foreign place without any means of identification. Carry Emergency Telephone Numbers Keep an updated list of emergency contact with you at all times and in multiple locations, such as your wallet, purse, or briefcase. Luggage Safety Label your bags with your name, home address, destination address, and phone nu mber. Also note the content of each luggage so you won't have a hard time packi ng for the return trip. Hotel Bookings Book your hotel room as early as possible to ensure room availability. Be preci se about the name and location of the hotel, as some hotel chains have multiple locations in a single city. Recording of Expenses It would be easier to jot down expenses incurred using a travel expense sheet r ather than trying to recall times, costs and mileage used. You'll need the shee t if you want to have your business travel expenses reimbursed. International Safety Before traveling to another country, learn something about the culture and cust oms of the people there. This will help ensure that your visit will be peaceful and hassle-free. For more business tips, check out SME Insight's The Right Stuff.

Look before you leap

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Franchises in the Philippines are a dime a dozen. The trick, however, is not in choosing a company to take out a franchise with, but the reasons behind the ch oice. So before you make that choice, you may want to consider the pros and con s of taking out a franchise. Pros: Your business is based on a proven idea, meaning formulas for success are alrea dy in place and all you need to do is follow the paths or innovate. You are als o blessed with the opportunity of checking out how successful other franchises are before committing yourself. You can use a recognized brand name and trade marks. Take, for example, the Jol libee experienceâ???that big red and yellow bee is always recognizable, attract ing even patrons of competitors. The franchisor gives you support, including training, help in setting up the bu siness, and constant advice in handling the franchise. Some franchisors give you exclusive rights to a territory, meaning they won't s ell other franchises in the area where you put up your business. Financing the franchise may be easier since most banks are more likely to provi de loans to those who want to take out a franchise with a good reputation. Risk is reduced and shared by the franchisor, giving that initial investment mo re security. You may not need to invest in luring customers since most franchisors already h ave an existing customer base. Relationships with suppliers have already been established so you don't need to look for suppliers for your products. Cons: Costs may be higher than you expect, especially if you don't factor in royaltie s and other charges before making your decision. The agreement with the franchisor usually includes restrictions on how to run t he business, meaning those innovations you're thinking about amount to nothing if you can't get the franchisor's approval. The franchisor might go out of business or change the way they do things. You m ay end up doing well in the business, but the health of the franchisor depends on a different set of factors. Other franchisees could give the brand a bad reputation and there's very little you and the franchisor could do. When you decide to sell your franchise, you may have a hard time since the fran chisor's approval is needed. Reduced risk means you might not generate large profits.
There's a consumer beverage that is slowly gaining a following across the globe . But there's just one big catch: it's a product would normally be considered a s unfit for human consumption. The product is Kombucha tea. It is now a a $34 million industry, according to t he Wall Street Journal. Add to that a currently strong growth trend from health buffs who are snapping it up and you've got a totally new (from our perspectiv e) product that should whet the appetites of aspiring entrepreneurs. Until you realize what Kombucha tea is: black tea, sugar and fruit flavoring... into which you dunk a colony of fungus and bacteria that ferment the liquid. T he result? A tea drink where you can see molds floating on the surface, which s mells like garbage (ugh!), and tastes like spoiled fruit juice (which it is). So what are the tricks for selling the unsellable? In the case of this strange product, here are three tips: 1. Go for the health buffs. No surprises here, but it should b e clear why this is the preferred route. What you are actually doing is hitting the "educated" market, or the kind of market that is willing to learn about ne w products that tie in with their lifestyles. 2. Up your margins. You'll have a very small market, so in ord er to survive you'll have to squeeze as much as you can from the existing marke t. The bonus? High prices for health beverages have the psychological effect of convincing the market that these must be the real thing after all. Credibility increases with price point. 3. Limit your channels. If you have a unique, interesting prod uct, people will go out of their way to hunt you down. So take advantage of tha t: you need not spend too much to create a wide distribution network, and the l imited availability can make your product feel like an exclusive item. Be prepa red to sell in bulk to eager buyers though. Eventually, if you manage expectations just right, your health buff buyers can become your product champions. In which case don't hesitate to reward those who enthusiastically spread the word about your product. In so doing, these produc t champions may eventually expand your potential market beyond just the health buffs alone. Who knows? Done right, there's even a chance that a moldy, smelly product like Kombucha tea would become a mainstream beverage!
SME Insight July-AugustSME Insight brings you an issue that is all about se lling to the high-value customers. With the theme The High Value Market : How to Hit the Upscale Crowd, featured firms include Finale Art File, Kois and Ponds, Le Souffle and Bikram Yoga. Plus, we have a one-on-one with Solar Entertainment mogul Wilson Ti eng on how he cornered the AB viewers, and an interview with Fruit Magic's Alan Escalona. Also in this issue is a selection of useful Toolbox articles ranging from how t o make a really good project plan to tips on how to put structure into your sal es force. These and more inside the latest issue of SME Insight, available at leading newsstands nationwide for only Php120!

Accountability

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One of the saddest images I recall ever seeing in a business context happened i n a retail store. The owner of the business was berating his sales personnel be cause traffic was pretty low at the store. So the sales clerks were hanging the ir heads in shame as they were being castigated thusly. Now that would probably have okay if the sales personnel were responsible for going outside and ushering people to come into the store. But t hese were in-store clerks. In other words, their primary duty was simply to ass ist people who were already inside the store. Pulling people inside was not eve n in their job descriptions. This is a simple example of the challenge involved in identifying accountabilit y. Formal organizations are like efficiently-designed clocks, where everyone pl ays a role and all the parts fit together. The manager is the conductor, overse eing how each role gets acted out and making sure that the lines of responsibil ity are clear. Sometimes, however, the entire concept of professional bureaucracy isn't too cl ear to a business owner. And then we end up with a situation like the one above , in which people get blamed for things that they didn't even know they were su pposed to be doing in the first place. So in the above example, who should be blamed for the lack of traffic? Well, it should be whoever it is who's responsible for attracting traffic in the first place. If the owner hired someone to set up the window frontage, then perhaps t his person's a likely candidate. And if the owner had hired someone to do promo tions for the shop, then maybe this person would be it. Of course, if the owner has not hired anybody to do any of these, then perhaps it is the owner who is at fault. But then many business owners have trouble blaming themselves for anything and find it easier to blame others -- which is an unhealthy attitude because they e nd up not addressing the root cause of the problems. Professionally-run firms are characterized by clear job descriptions that make it easy for the people to understand exactly what they should be doing and how they will be evaluated. It's fair for the employees, and it makes it easier for the manager to pinpoint who is responsible for what.

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