7/30/11

The Wrong Body Language

Don’t gaze down
Never look away from your audience. In the outside world you may multitask and look at your Blackberry while ordering a latte, but never lose eye contact with those who have come to hear you speak. Eye contact helps you connect to people and enhance feelings of trustworthiness and likeability.

Don’t clasp your hands
Fidgeting with your hands is distracting. Don’t clap, knuckle crunch, or cuticle pick. Unless you are pointing to something in your presentation or making a big movement, keep your hands by your side.

Don’t dance
When you use your arms, gesture from the shoulder—not your elbow—to avoid looking like you are doing the chicken dance.

Don’t look messy
You should be neat and organized. Dress for the environment—a suit in a formal business presentation, but more casual if you’re at, say, a tech MeetUp. When it comes to presentation slides, title each one and highlight key words, be sure to spell-check and ask a colleague to review your materials. Limit any “cute” or “funny” visuals, especially if you’re reviewing a serious subject.

Don’t turn away from the audience
“Nobody wants to look at your behind,” says Rosenthal, CEO of Communispond in East Hampton, NY. And you often can’t be heard if you are speaking to the screen. Rosenthal likes the "think, turn, talk" method. Look at an item you are discussing to gather your thoughts, turn to look at the audience, and then start speaking.

Don’t hem and haw
Do your best to avoid “filler" words. Keep the "uhms,” "you knows” and "likes” out of your speech.

Don’t rush
Run through a preview “performance” so you know you have the right amount of material to make the best use of your allotted time, and you’re not forced to rush to squeeze in important points. Running out of time makes you look unprepared and clumsy.

Don’t chortle
Keep sounds effects like chortling or laughing at a minimum. “Nobody wants to see a clown performing unless, of course, you’re at the circus,” says Rosenthal.

Don’t roll your eyes
You don’t want to distract your audience—or inadvertently convey disdain—with visual effects like rolling your eyes. This is especially true when you’re responding to questions, or comments, and you don’t want to appear impatient.

So what should you do?
Smile. Stand. Make eye contact. Open your arms. Speak loudly. Says Communispond’s Rosenthal: “Plan for success. Look good, sound good, and know your material.” –Tatiana Serafin

http://www.inc.com/ss/wrong-body-language

7/20/11

My Customers’ 3 Most Valuable Learning Experiences

One of the reasons I love my job is having access to so many customers who are bright entrepreneurs. When you treat your customers like the gifted business people they are, you’ll be surprised how much they can teach you.

A few weeks ago I was curious to see what SurePayroll customers consider their most valuable learning experiences. For years, I’ve said the best learning tool is making mistakes — I even give one lucky employee an award for the year's best new mistake every year. After sending a survey about their most valuable learning experiences, I learned quite a bit from their real-life stories and what their experiences have taught them.

Many of their learning experiences fall into three main categories, ranging from practical office tactics to the philosophy of running their businesses.

1. Effective employee management is a must.
One of my customers summed it up nicely: “I have been in business for over 35 years, and I’m not sure any one experience is the most important. But one thing is for sure: Hiring the right people is critical to anyone's success.” I’ve learned over years that hiring is one of the most difficult aspects of running the show and that the overwhelming majority of my customers agree.

And they’ve also learned that part of having the right people is firing the wrong people, and doing so quickly. That may sound cold, but it’s a reality business owners need to face. A few customers discussed how they struggled in their first few years because they didn’t want to be the small business owner who fired people. Or they weren’t checking candidates’ backgrounds and references properly.

Once the right employees are on board, you have to communicate the vision of your company and make sure they’re aligned with it. And as tough as it sounds, you’re going to have to give your employees breathing room to do some things their way, and to make the occasional mistake. You can trust me that when employees aren’t belittled for making mistakes, it’s good for your business. But you don’t have to take my word for it — many of my customers feel the same way.

Employees want to work somewhere they feel welcome and appreciated – and like they can be themselves. As another customer said, “We all spend so much time at work, it is important to make it a fun environment. When people feel good, their work performance improves. It’s a win-win situation.”

2. Sales and marketing won’t take care of themselves.
Ralph Waldo Emerson is famous for a lot of good reasons, but he couldn’t be more wrong when he wrote “Build a better mousetrap and the world will beat a path to your door.” My customers agree that your mousetrap won’t sell itself.

Many SurePayroll customers started their own businesses because they loved what they were doing, and wanted to concentrate on it full-time and be their own bosses. Then they found out people weren’t beating paths to their doors, even though they offered top-notch products or services. They needed to spread the word via marketing and acquire new business by spending time on sales.

One of my customers learned this by accident, quite literally. After an injury took him out of commission from his carpentry, he needed to hire a replacement for six weeks. That’s when he discovered his strength wasn’t just in his carpentry but in promoting his business. He wrote that “There were plenty of competent carpenters willing and able to take my place as lead site carpenter. I focused my efforts on sales and marketing. Sales picked up significantly. My net income doubled in the span of a year and grew by 50% more the next year.”

Taking on sales and marketing yourself might not be the answer. If you want to stay focused on your trade, let someone else take care of it. The joy of owning your own business is that you can focus on your strengths and outsource your weaknesses, whether that means relying on services or hiring competent employees.

Even the carpenter-turned-salesman would have done it differently: “The next logical step in that duplication would have been to replace myself in my sales and marketing duties, too. Remember, the duplication of effort can be applied to all people in all positions performing all tasks. My end goal could have been to become CEO where all lower level tasks were delegated to highly qualified employees.”

3. You’re your own boss—and your own teacher.
Yes, hiring experts can help you grow your business, but at the end of the day, you’re the one who has to keep learning. As my customers can attest to, education covers everything from gaining new skills to realizing your limitations.

What’s the best place to begin your education? One customer offered a great starting place: “Read. Sounds simple, but it is one of the most important things a business owner can do to improve his or her business. While it is great to have a mentor, and I have many, books are portals to some of the brightest minds from our past and present.”

In addition to traditional education like reading and business school, many customers stressed the importance of on-the-job learning — taking on projects that require them to become experts. One customer wrote, “I had a client ask me to work on a project that required me to do educate myself about the details and the best way to accomplish the task. Rather than tell them, ‘No, I do not have those particular skills,’ I tell them, ‘I will look into it and give it a try.’ So far my clients have been pleased with the results, and I continue to learn and expand the services I can provide.”

Unfortunately, sometimes you learn the hard way. A few customers got caught up in the whirlwind housing market a few years ago before the crash, losing hundreds of thousands of dollars on their office space and housing purchases. Learning not to succumb to pressure is a hard pill to swallow, but an invaluable one.

What’s the most valuable learning experience you’ve had as an entrepreneur? Please comment below so we can all learn from your experience.

http://www.inc.com/michael-alter/my-customers-3-most-valuable-learning-experiences.html

5 Low-Cost Ways to Make Employees Happy

Is there an upside to not being able to afford big bonuses and generous benefits? Bob Nelson, a business consultant in San Diego and author of “1001 Ways to Reward Employees,” thinks so: Your small business actually has a great deal more freedom than a larger one to be creative and cost-effective in how you show appreciation for staff members. “Small businesses are ideally suited to provide motivation to employees in that they aren’t constrained by a large policy manual or multiple levels of required approvals,” Nelson says.

With that in mind, check out these five ideas for making your employees happier:

1. Offer something special
You want the product or service your business offers to stand out in the marketplace. So it makes sense to think of your workplace in the same way by making it special and ensuring that it stands out from those of your competitors.

Don’t go crazy here, just think of simple ways to create a friendly environment. For instance, if long hours are part of your workplace, think about making sure people have ergonomic chairs and good task lighting. Providing snacks on Fridays, or a ping-pong table for break time might be just the ticket to helping your employees understand that you appreciate their efforts.

2. Share control
Time is a precious resource these days. Studies have shown that people in all sorts of situations respond positively to having a little control over their environment, their schedule, and more. Take a look at your workforce and your schedule and introduce some flexibility if there’s room for it. You don’t have to give everyone every Friday off (most businesses can’t go that far) but most workers will warmly welcome occasional, seasonal, or permanent flexibility options.

Nelson notes in his research from consulting with hundreds of companies that people who feel they are helping to shape their workplace and their time, rather than just being a voiceless cog in the wheel, are likely to be happier and more productive.

3. Share the load
Along the same lines, it’s important to remember that most people value and thrive on meaningful engagement. Employees crave involvement and autonomy, which can help your business in many ways. Let them engage in defining their jobs and helping make decisions about company resources and more. That sense of ownership will not only boost their morale, but it may help boost their productivity as well. “It’s common sense,” Nelson says. “We all want to be valued and when workers feel that their contribution is honored, they will honor that as well.”

4. Offer no-interest loans
Looking for benefits that are low-risk for you and high-boost for them? Consider offering small, no-interest loans to employees. Talk to your accountant about how to administer such a program and be sure to cap these as “micro” loans that will just help people on small purchases. It’s a supportive gesture that will not go unnoticed.

5. Show your appreciation
As Julia McGovern and Susan Shelly note in “The Happy Employee: 101 Ways for Mangers to Attract, Retain, & Inspire the Best and Brightest,” one of the most basic morale-boosters is simply recognizing good work. People at all levels appreciate being appreciated, but it doesn’t have to come in the form of a fat check. Many people respond to a simple — and specific — “thank you” from their managers.

Nelson agrees: “Recognition is the top driver of human performance,” he says. “You get what you reward.”

http://www.bnet.com/blog/smb/5-low-cost-ways-to-make-employees-happy/5037

How to Sell on Value Rather Than Price

Don't want to compromise on price? Experts explain how to stay competitive based on the value of your product or service to consumers.

In a famous video clip from Penn and Teller's Showtime hidden camera show, diners are lured to an upscale restaurant branded as the world's first boutique vendor of bottled water. A water steward presents each table with a menu discussing the finer qualities of water purportedly shipped in from mountains and streams all over the world, some of which cost as much as $8 a bottle.

Of course, the joke is on the customers because all the water actually came from the garden hose out back, but the message was clear: People are willing to pay more for a product if they think it gives them a truly special or significant value—and if you present it to them in just the right way.

Your company is probably selling a stuff that's a lot more valuable than fancied-up hose water. Selling on value, not price, involves a balance of confidence, personal rapport, and doing your homework, and it's become more difficult as technology gives consumers greater access to price information and competitors. We've talked with veterans of selling their value, and they share some tips on how to make your products stand out in a low-cost world.

Choose Your Targets Wisely
New companies often make one fatal mistake that forces them to compromise on price, says Barry Farber, a business consultant who has worked with American Airlines, AT&T and BMW, and author of more than 11 books on sales. Companies don't narrow their target market, and don't understand their products likely aren't for everyone.

Farber says to do this by researching the potential client to see if they are a good candidate to meet your price needs. This saves you from wasting time talking to people who only want the cheapest deal.

"Some sales people, they just make sure the prospect is breathing and then they dump all this info on them," he says. "That's not a good return on your investment of your time. Sales reps that don't have that kind of aggressive focus, if they lose [the deal], their month is dead, their year is dead."

Nat Kausik, CEO of Trubates, an online marketplace for adjustable local deals, says his company knows that many consumers are familiar with the nature of value-based pricing, especially after dealing with fluctuating airplane fares. The right customers will be receptive to hearing why they should pay more for a certain product over another: That's why his site lets users review an offer after they redeem it, and makes the review available to other users.

"Consumers, they're very sophisticated," he says. "They understand how to explore price for value."

About one-third of consumers are purely hung up on price, while the other two-thirds are open to at least hearing your argument, says Tom Reilly, an author and value-based shopping expert. Innovators and early adopters are more likely to shell out the extra money, he says.

"Be crystal clear whom the market segment is that you're designing for," he says.

Leverage Your Strengths and Experience
Once you're in the sales meeting with a potential client, you had better be ready to stiffen your backbone and wield the full weight of your company's strengths. This comes largely from sales skills, but you can prepare your team by educating them on how your company stands out.

"It's almost embarrassing at times the way people don't understand all the ways they bring value," Reilly says.

You should also be telling the potential client or customers about the history of the company, which helps build confidence in the product. Build up your success stories by documenting testimonials from past successes and showing them off to future opportunities.

"Be able to successfully use your customers as your sales people," Farber says.

Orwak, a company that supplies waste compactors, baling systems, and other recycling equipment, emphasizes its value thanks to its trans-continental reach. Based in Europe, the company has seen recycling grow leaps and bounds ahead of the United States over the past 40 years. Its sales team pitches its products as a way to help companies stay ahead of the recycling curve.

"We try to sell it as, 'Hey we've been there, done that. Let's look at Europe, that's the future of America,'" says Mark Lanning, Orwak's national sales manager. "We're going to give you a little peek at the future from our experience."

Know That Confidence is Key
When you're highlighting the value of a product over cheaper competitors, you shouldn't be vacillating on price or negotiating. Reilly says to avoid words and phrases that suggest flexibility, things like saying "generally, we charge" or "your price."

"The time not to show a lack of conviction is when you're asking people for money," he says.

Drop the price without hesitation and without getting defensive, he says.

It is the time, however, to mention the advantages you bring to market: global sourcing, logistic support programs and other things that go beyond the features of a single product or service, Reilly says.

You can be confident without dragging your competitors through the dirt, Farber says. Highlight why your product's value is worth their consideration over lower-price options.

"The most critical thing an entrepreneur needs more than anything else is confidence," he says. "If that's missing, I don't care if you have a plan and all that stuff, you're dead in the water. You can lose your edge right away, and selling value becomes 10 times more difficult."

Emphasize Your Customer Service
The toughest job selling value to customers is getting them to picture the full depth and breadth of everything your company has to offer.

Lanning says his company likes to talk about more than just the product, as comparing balers can feel like just comparing one hunk of steel to another. Customers now expect a quick response time, an ease of use and the feeling that you care about them.

"It's easier to paint the picture about service than a hard object," he says.

Farber advises people to foucs on personal touches and developing a rapport with the client by getting to know their needs and business background.

"I'm a big believer of handwritten thank you notes," he says.

Often the customers who are obsessed with finding the lowest price turn into the biggest headaches, he says. But the customers that see your value understand you'll be there to provide customer service.

Make sure to keep providing good service throughout the lifespan of the customer, which will let you pile up those customer testimonials you can use to show future clients why you provide the right value.

"Value is always long term," Reilly says. "Price is short term."

http://www.inc.com/guides/201107/how-to-sell-on-value-rather-than-price.html

7/14/11

14 Habits of Happy Men

What makes men happy? If you thought it was all about grilling and beer, well, you wouldn’t be entirely wrong. Our informal poll of a diverse group — chefs and bottlewashers, stock brokers and musicians, bachelors and grand dads — yielded the following list of 14 fulfilling routines and pastimes that help make men happy and healthy.


Morning exercise
“I relish an hour or more of exercise at the start of the day,” says Mitch M., a seasoned consultant. “That could be walking, working outdoors, or playing tennis — but certainly an active period. It sets up the day for both my body and mind.” Fitness experts have long touted the benefits of morning exercise, which is closely associated with positive mood and sustained energy throughout the day. Men who get active in the a.m. hours are more likely to stick with an exercise regimen, too.

Alone time
Spending time with friends and family is a priority among men who describe themselves as happy, but their contentment also depends on finding a few minutes to hold the world at bay. “I always enjoy Sunday morning coffee and a newspaper — on real paper — on the front porch before the rest of the family wakes up,” says Mike Q., a salesman in the New York area. Some guys in our survey seize solitary time to learn or be creative while others want to be alone to “shut off my brain for a while.” Early mornings were a favorite time of day, though early birds and night owls alike savor the quiet moments.

Night out with the guys
“One thing that makes me happy is sitting down with a buddy over some drinks and food, talking about nothing,” says Josh M., a California-based M.D. Admittedly, it’s tough to argue the health benefits of chicken wings, fries and beer. But friendships are commonly formed and reinforced on barstools, and the health benefits of male camaraderie are supported by a significant body of research. Behavioral scientists have linked friendship not only to psychological well-being but to longevity.

Date night
It may not be the first topic of conversation on pub night, but men can be downright protective of their time with a significant other. Fathers with busy lives at work and home are especially covetous of evenings out with a spouse and report that weekly or bi-weekly date nights help keep the pair connected. Living in the same home doesn’t guarantee adequate time to interact, and a strongly bonded couple requires a relationship independent of their mutual attachment to children. Couples with a dedicated plan for spending time together tend to argue less and are better equipped to resolve tensions when they arise back at the homestead.

Games and sports
While men may say that regular ballgames are just a great way to blow off steam, they stand to reap all the benefits of play that children do (social development, honing physical skill sets, promoting mental sharpness) in addition to a long list of physical payoffs. Dr. Stuart Brown, an expert on the subject, has noted that healthy competition in adult play also increases abilities in decision making and problem solving. In his 2009 book Play, Brown writes, “The beneficial effects of getting just a little true play can spread through our lives, actually making us more productive and happier in everything we do.”

Getting organized
Leadership seminars and self-help books encourage effective time management for prioritizing tasks, improving productivity, and achieving goals. But you don’t need a life coach to tell you that gaining control over chaos provides peace of mind. Says Doug E., a professor and author, “I especially like writing down what I need to do on a monthly calendar and then crossing things off when they're done.” Doug’s routine does double duty, providing a template for time management and a built-in reward system for looking back over a month of accomplishments.

Exercise routine
Having a regular workout routine appears to be a leading source of satisfaction among men. The guys from our poll logged in on a variety of exercise preferences (a good run, biking to work, morning swims, a gym workout). Clearly exercise benefits men inside and out, fortifying the system against chronic diseases, managing weight, improving sexuality, and bolstering mood. Back in 1996, the Surgeon General reported on the many associations between inactivity and diseases including obesity, heart disease, high blood pressure, and stroke. It’s no surprise that inactivity has also been linked to depression and increased anxiety.

Generosity and charity
Want to feel good? Try making someone else feel good. Says Alex S., a real-estate consultant, “When I come from a place of giving to others I genuinely feel better about being me…. I try to carry that with me every day, and I’ve developed a way to measure it. I need to get six thank-you’s every single day from different people. If I get a thank-you from someone, then I know I've given something or done something someone else appreciates. I know it's dopey, but it makes me happy.”

An indulgent meal
Everyone must be cautioned against overeating, especially on a regular basis, but the occasional big meal — a stack of pancakes, a thick steak, a rich pasta — can be a source of satisfaction for a healthy man. Big meals are part of a longstanding tradition for men, and today’s warriors sometimes deserve a feast after returning home from battle at the office. Mitch P., a chef who routinely serves healthy, locally grown vegetables at his own restaurant, says, “On a quiet Sunday, I’ll flop on the couch and watch football or hockey with a huge, cheesy sandwich. Not the healthiest day off, but I need it.”

Down time with family
"It could be just TV time or a family board game — doesn’t matter. Downtime with the family helps keep me happy,” says Erik W., a business owner and father of pre-teen twins. Relaxed family time opens the lines of communication, reinforces the strength of a marriage, and provides an opportunity to decompress. The satisfaction of good parenting can be added to the equation, too, since family time helps kids build self confidence and stave off peer pressure.

Meal with family or friends
A good meal in good company is something of a feast for the senses. With positive, pleasure-inducing signals sent from the eyes, ears, nose and mouth, a man’s brain receives the message that the experience is nourishing to both the body and the mind. That, in physiological terms, defines happiness. Says David G., who happens to be a psychologist, “My happiness comes from ephemeral things like sitting around the table with family or friends — no special event, just any old dinner — and seeing everyone enjoying themselves.”

Playing an instrument
“Nothing relieves my stress like sitting down on the couch with my guitar and playing until the tension melts away,” says Evan K. of New York City. Accomplished musicians and amateurs alike enjoy the rewards of time spent on an instrument, a mental task that is uniquely well suited to blocking distractions and diminishing intrusive thoughts. Like other creative pursuits such as painting or woodworking, playing an instrument calls on different mental faculties than those tapped during the rest of the day. Several men we polled cited personal creative time as a great diversion and deeply fulfilling.

Time with the kids
Maybe it’s because we men really are just overgrown kids, as often characterized, that this category was the leading source of happiness among the dads polled. Anywhere they could catch one-on-time with their children — driving to practice, at the bus stop, during a bedside chat — the experience was genuinely prized and rewarding. “Whatever the topic, it just feels good to have that personal, uninterrupted time with each of my sons,” says Billy F., father of two teenaged boys. Josh S., an account exec, commented, “Discussing the shapes of clouds with my six-year-old is always eye-opening.”

Walking
An invigorating walk outdoors is sometimes referred to as a constitutional, meaning “beneficial to bodily constitution.” Lethargy, stress, anxiety and depression all stand to be lessened by getting out into the fresh air and making your body move according to its natural design. “A 30-45 minute walk can be peaceful, and it gets my blood pumping,” says Mike Q. “If I miss a day or two, I feel off.” Health authorities recommend adding as many steps to your day as your age and condition comfortably allow. Even the experts on arthritis, reversing an earlier understanding, frequently suggest walking for relieving pain in arthritic hips and knees.

http://health.msn.com/mens-health/slideshow.aspx?cp-documentid=100268482

7/13/11

Army Lessons That Apply to Small Business

How former Lieutenant General William G. Pagonis translates what he learned in the Army to steer logistics at Sears and now at Uno Chicago Grill and horse ranch

Lieutenant General William G. Pagonis might have rested on his laurels and retired in 1993, when he capped his 29-year Army career as the logistical chief of the first Gulf War. The 18-month stint earned him kudos from the Allied Forces commander Norman Schwarzkopf, whose memoir saluted Pagonis as the "logistical wizard" of the war.

But Pagonis decided to apply his wizardry to shake up logistics at Sears Roebuck & Co. As executive vice president of supply-chain management from 1993 to 2004, he was a key architect of the giant retailer's storied financial turnaround in those years. Most recently, Pagonis helps manage two small family businesses: a 50-employee Uno Chicago Grill pizza franchise that he owns with his son, Robert; and a seven-employee horse ranch in Evans City, Pennsylvania, that he and his wife, Cheri, own.

A lecturer and consultant on supply chain management, Pagonis is the author of the 1992 book, Moving Mountains: Lessons in Leadership and Logistics from the Gulf War.

Recently contributing writer Joseph Rosenbloom interviewed Pagonis about the logistics lessons he learned from his time at the Army and Sears, all of which can be applied to small businesses (like the ones he runs with his son and wife).

At 5-feet-6 ½ you're a head shorter than the stereotypical general—Norman Schwarzkopf, for example. Was your lack of vertical stature a disadvantage in the Army, or in business?
Not at all. It's performance. It's how well you do. It's how well you present yourself, and can you get people to do what you want them to do and go that extra mile? That's where the leadership part comes in.

In the military, what is at the core of effective leadership?
What they teach you in the military is, number one, take care of your troops and train them, and the job will get done. It's a mission-team-type effort. Even if people don't care about each other, they are going to come together, especially if they're in combat. In the civilian sector, you've got to motivate people, and you've got to make sure that they work as a team.

What did you take from your experience in the Army to improve supply chain management at Sears?
As in the Gulf War, I was the single point of contact for the supply chain. The first year we saved over $100 million right to the bottom line without firing anybody. The average turnover rate at Sears was, like 50 percent to 60 percent, a year. My turnover rate was 10 percent.

How did you achieve such impressive results?
When I was the single point of contact for the Sears supply chain, I could consolidate. I could coordinate. In Columbus, Ohio, we had about eight distribution centers. I was able to form a team there. If one facility needed troops there in a peak period, we could transfer from another facility. When the heads of all the distribution centers were reporting to one person, there was greater coordination. If we needed to transfer people from one site to another, we could do it more easily.

How did you cut employee turnover so dramatically?
I tried to make sure people had fun in their jobs, that they understood what the mission was. Families are so important. I would not see anybody at Sears after 5:30 in the afternoon.

I used to tell people, "You have a wedding anniversary and you have to leave at 3 o'clock, send your subordinate. And if you train your subordinate properly, it shouldn't be a problem." I would also use management tools: stand-up meetings and 3x5 cards. People would send me short, concise 3x5 cards by email with updates, concerns, and other operational information.

You insist on stand-up meetings?
About four days a week I had a stand-up meeting at Sears every morning at 8 o'clock. It didn’t last more than 15 to 20 minutes. Everyone was represented from the supply chain: transportation, warehousing and so on. I'd go around the room, and I'd get a quick update of what happened the day before, and what was going to be happening that day. All people in the room shared the information, and that's critical in the supply chain.

Why not let people sit down?
When you sit down, a meeting goes for over an hour or an hour and a half, and you lose everybody. When people are standing, they talk faster or they say I don't have anything to add. I did have a sit-down meeting once a week to cover ups and downs: What happened great for the week, what didn't happen well. And if it didn't happen, what did you do to fix it?

And why are 3x5 cards such a big deal?
If you have a 20 or 30-page report, nobody reads it. If you're working for me, I ask that your reports fit on a 3x5 index card. If it's longer than the front and back of a 3x5 card—and I do have index card formats for email—I won't read it. And I tell my managers I won't read it.

But in your book you said that you preferred 3x5 cards to email, in part, because of their anonymity.
I did, because remember in those days we didn't have laptops or other ready ways to access email. Today, I do everything on email and just keep a 3x5 card format.

But email doesn't allow for the anonymity that you built into your memo-flow system in the Army.
It doesn't. But at Sears I had a negative-free environment. People were not afraid to tell anybody that something was screwed up. Bosses were not allowed to stop bad news from coming to me. If they did, they got in big trouble with me.

Since the merger of Sears and Kmart in 2005, the consolidated company has hit the skids, despite the fixes you left in place. What happened?
I think they made a mistake of not finding the right people to lead Sears. There are a lot of great practices that are still in use. In the supply chain operations, they're still functioning with 3x5 cards. Some people still do the stand-up meetings. Their product mix is what's killing them.

You explained your belief in the virtues of email, but you've also stressed the importance of top executives having person-to-person contact with their employees.
One of my greatest strengths, when people were briefing me, was telling in a minute whether they really believed in what they were saying. But you can work over emails and never meet somebody for years. I think leaders of the future will have to figure out how to compensate for the lack of face-to-face contact.

Do your military methods apply to small companies?
Starting in December and continuing this year, I did a consulting job for a trucking company that had 25 employees. I used the same principles of 3x5 cards and stand-up meetings. Sales went up, and the company was more productive.

Has it been humbling to involve yourself in businesses as small as your son's restaurant and your wife's ranch?
It has been a dose of reality. Everybody doesn't feel as strongly as you do that they want to make money for the company and save costs. You see that the guys mucking out the stall could care less about turning the horses out and grooming them. You're paying minimum wage. He just wants to do his job and go home at 5 o'clock. Being down in the trenches again reminds me how critical it is to understand that everybody doesn't have the same desires and wants as the boss.

It has also been interesting because I now work with both my wife and and my son. They'll talk to employees one on one. I call it sensing sessions. My son will bring in three servers, two bartenders, and two busboys. He'll take thirty minutes. He'll have each of them write down on a piece of paper three ups and three downs about the operations. For the downs, he'll ask, "How can you fix it?" It’s amazing what kind of feedback he's getting.

http://www.inc.com/articles/201107/army-lessons-that-apply-to-small-business.html

7/2/11

10 Tips for Raising Children of Character

It is one of those essential facts of life that raising good children--children of character--demands time and attention. While having children may be “doing what comes naturally,” being a good parent is much more complicated. Here are ten tips to help your children build sturdy characters:

1. Put parenting first. This is hard to do in a world with so many competing demands. Good parents consciously plan and devote time to parenting. They make developing their children’s character their top priority.

2. Review how you spend the hours and days of your week. Think about the amount of time your children spend with you. Plan how you can weave your children into your social life and knit yourself into their lives.

3. Be a good example. Face it: human beings learn primarily through modeling. In fact, you can’t avoid being an example to your children, whether good or bad. Being a good example, then, is probably your most important job.

4. Develop an ear and an eye for what your children are absorbing. Children are like sponges. Much of what they take in has to do with moral values and character. Books, songs, TV, the Internet, and films are continually delivering messages—moral and immoral—to our children. As parents we must control the flow of ideas and images that are influencing our children.

5. Use the language of character. Children cannot develop a moral compass unless people around them use the clear, sharp language of right and wrong.

6. Punish with a loving heart. Today, punishment has a bad reputation. The results are guilt-ridden parents and self-indulgent, out-of-control children. Children need limits. They will ignore these limits on occasion. Reasonable punishment is one of the ways human beings have always learned. Children must understand what punishment is for and know that its source is parental love.

7. Learn to listen to your children. It is easy for us to tune out the talk of our children. One of the greatest things we can do for them is to take them seriously and set aside time to listen.

8. Get deeply involved in your child’s school life. School is the main event in the lives of our children. Their experience there is a mixed bag of triumphs and disappointments. How they deal with them will influence the course of their lives. Helping our children become good students is another name for helping them acquire strong character.

9. Make a big deal out of the family meal. One of the most dangerous trends in America is the dying of the family meal. The dinner table is not only a place of sustenance and family business but also a place for the teaching and passing on of our values. Manners and rules are subtly absorbed over the table. Family mealtime should communicate and sustain ideals that children will draw on throughout their lives.

10. Do not reduce character education to words alone. We gain virtue through practice. Parents should help children by promoting moral action through self-discipline, good work habits, kind and considerate behavior to others, and community service. The bottom line in character development is behavior--their behavior.

As parents, we want our children to be the architects of their own character crafting, while we accept the responsibility to be architects of the environment—physical and moral. We need to create an environment in which our children can develop habits of honesty, generosity, and a sense of justice. For most of us, the greatest opportunity we personally have to deepen our own character is through the daily blood, sweat and tears of struggling to be good parents.

http://www.bu.edu/education/caec/files/10tips.htm