tag:blogger.com,1999:blog-84699229818911277242024-03-19T02:59:50.749-05:00Peer PowerThis blog is about the power of peers in the IT space. It is designed as a place to share things I have learned the past 25 years running a business (HTS) as well as meeting the growing demands of business owners we experience leading the Heartland Tech Groups - a peer group network for IT business owners. Check out more at www.htgpeergroups.com.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.comBlogger381125tag:blogger.com,1999:blog-8469922981891127724.post-28167541440980982222011-04-05T15:17:00.004-05:002011-04-06T18:00:45.438-05:00The Peer Power Blog has MovedArlin Sorensen's Peer Power Blog can now be found on the HTG Peer Groups website. The new address is <a href="http://www.htgpeergroups.com/blog.html">http://www.htgpeergroups.com/blog.html</a><br /> <br />All previous posts can be found there, and new posts will be published there as well.<br /><br />Be sure to resubscribe! <a href="http://www.htgpeergroups.com/blog?format=feed">Click here</a> to subscribe to the new RSS feed and stay up to date with Arlin.<br /><br />You can also <a href="http://www.htgpeergroups.com/blog.html">click here</a> to sign up for email notifications whenever a new blog entry is posted.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.comtag:blogger.com,1999:blog-8469922981891127724.post-77995491869130429382011-03-20T15:14:00.002-05:002011-03-20T15:31:21.477-05:0010 Key Area's of Attention For Your BusinessThis week I was blessed to be in Charlotte on a SWOT team with Jonathan Warrey and Tom Polk. We came to town at the request of The Network Essentials team – led by Kyle Elworthy and Nathan Sanders. We discovered a number of the normal issues – communication, service delivery consistency, sales and sales management, employee benefits and on the list goes. Here are some ideas that have come out of the last few SWOT’s that may fit your situation. Thanks to the SWOT teams for their insight (and particularly Jonathan Warrey for putting some of this on paper). We didn’t see all these this week – but over the past months I certainly have (some by looking at my own company) and these seem to be key areas that need owner attention.<br /><br />1. <strong><span style="color:#ff6600;">Consistent company communication</span></strong> from owners to employees about what the vision of the company is and how it is doing financially. Employees are too often in the dark and wondering about the future. You have to be open book enough to help them be comfortable with your direction and the sustainability of their job.<br /><br />2. <strong><span style="color:#ff6600;">Set and communicate goals</span></strong>—set a realistic goal, make it public, measure results against it, and communicate it consistently. Too often employees are unsure what the targets are and how they are doing at achieving them. People want to know they are doing a good job – that can’t happen if they are unsure of the goal and the status.<br /><br />3. <strong><span style="color:#ff6600;">Explain why growth is important</span></strong>—often employees don’t see the need for it. Growth matters because fixed costs keep rising and growth creates further opportunities for good people in your company. If they don’t have opportunities for growth, many good people leave. Are you creating a culture where people feel like they have a career, or just a job.<br /><br />4. <strong><span style="color:#ff6600;">Define and lead culture</span></strong>. This is definitely more caught than taught. Each company has its own culture – but far too often it isn’t really planned – it is just allowed to happen and then the owners look back and wonder what happened. Accidental culture never turns out the way you desire.<br /><br />5. <strong><span style="color:#ff6600;">Create clear roles and expectations</span></strong> and confirm results—from service performance and efficiency results, to sales performance in various categories, to customer satisfaction metrics—how are you doing. Do each of your people know where to go when they don’t have an answer? Clarity in job definition is critical for satisfied team members.<br /><br />6. <strong><span style="color:#ff6600;">Make sure everyone understands the mission</span></strong> of the company as well as the vision and company values. There should be no question about where you are heading and how people are expected to act along the journey. These things give us the boundaries that we will operate within. Without a clear definition – people will wander aimlessly unsure how to act. Throw in your BHAG (big hairy audacious goal) as well – so they know you have a big picture around the future.<br /><br />7. <strong><span style="color:#ff6600;">Create Raving Clients</span></strong>. Client satisfaction should be at 95% or higher so you can build referrals to grow your business and maintain a strong client set to continue to work with. Referrals are still an important way to grow our companies. Too often we don’t want to go the extra step to make our clients raving fans. We are content to be “good enough”. It is the little things that make the difference – and a sincere thank you goes a long way.<br /><br />8. <strong><span style="color:#ff6600;">Deliver what you promise</span></strong>. If you say you are going to perform something (i.e. periodic business or account reviews, preventative maintenance checks, etc.) you better deliver on it. Too often you commit to monthly reports, quarterly visits, and annual planning meetings and delivered on about 10% of those commitments. You need to make sure that you are delivering on our commitments. You owe clients the value they are paying for. Period.<br /><br />9. <strong><span style="color:#ff6600;">Remember that compensation modifies behavior, but not personalities</span></strong>. People work on things that maximize their compensation, but it won’t drive people to do things that requires a change in their personality. You spend hours working on compensation plans that target higher compensation for important company initiatives. You certainly don’t always get it right. It’s a reason compensation plans change every year with at least some tweaks. It’s because the market keeps shifting and so do costs to deliver your products and services. You need to spend time understanding personalities as well as managing behavior with compensation. It takes work to understand the different personalities and how they interact and are motivated. Getting those two right at the same time really makes things click!<br /><br />10. <strong><span style="color:#ff6600;">Change is a constant</span></strong>. Some companies have cultivated a culture that is open to change – while some certainly have not. This week in Asheville I ran across these words:<br /><br /><ul><li><strong><span style="color:#ff6600;">Life is change</span></strong></li><li><strong><span style="color:#ff6600;">Growth is optional </span></strong></li><li><strong><span style="color:#ff6600;">Choose wisely </span></strong></li></ul><br />What is your tolerance toward change? Change is led, not taught. It is not preached into existence – it is caught. Are you a change leader in your company?<br /><br />So there you have it – ten areas that each of us need to take a look at and consider. <strong><span style="color:#ff6600;">If you are normal – five of these are direct hits – a couple more are too close for comfort – and the other three are in need of some work</span></strong>. Unless you are a very unusual small business – these are key areas that need your attention. The upcoming HTG Summit will address many of these areas. There also will be other business owners among the attendees who have these things nailed. You don’t have to go it alone. Get with others – listen and learn – and then get after making some changes. Vision without execution is only hallucination!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-17897874378703534942011-03-11T10:16:00.002-06:002011-03-11T10:21:13.436-06:00The Importance of LegacyWarren Buffet is a very successful business person. While I can’t say I always agree with his politics or policy leanings – you can’t argue with his wisdom. <span style="color:#ff6600;">This year in his letter to stockholders he makes some important comments that we all should take as a cue for what to do.</span> Check out page <a href="http://www.berkshirehathaway.com/letters/2010ltr.pdf">26 of the PDF</a> and read his two-page Memo to all Berkshire Managers. In this biennial memo, he reemphasizes his <strong>number 1 priority</strong> and asks for letters outlining who each manager has chosen to replace themselves if something happens to them. Here is the excerpt:<br /><br /><em>“I need your help in respect to the question of succession. I’m not looking for any of you to retire and I hope you all live to 100. (In Charlie’s case, 110.) But just in case you don’t, please send me a letter (at home if you wish) giving your recommendation as who should take over tomorrow if you should become incapacitated overnight. These letters will be seen by no one but me unless I’m no longer CEO, in which case my successor will need the information. Please summarize the strengths and weaknesses of your primary candidate as well as any possible alternates you may wish to include. Most of you have participated in this exercise in the past and others have offered your ideas verbally. However, it’s important to me to get a periodic update, and now that we have added so many businesses, I need to have your thoughts in writing rather than trying to carry them around in my memory. Of course, there are a few operations that are run by two or more of you – such as the Blumkins, the Merschmans, the pair at Applied Underwriters, etc. – and in these cases, just forget about this item. Your note can be short, informal, handwritten, etc. Just mark it “Personal for Warren.””<br /></em><br />So what is the lesson? <span style="color:#ff6600;">If Warren Buffet is concerned about succession planning – my advice is that we sure better be too.</span> It is a key part of legacy planning. It is a key part of business continuity planning. It is central to planning in general. So many of us believe we are invincible. It will never happen to us. But it does, and I guarantee it will, so now is the time to put plans in place – on paper just like Warren says – so there is clarity about how things should proceed without you. That is legacy – what happens after you are no longer in the picture. Have you made those decisions? If so, have you written it down and actually shared it with anyone, particularly the one who is listed? Amazingly people will put guardians in their will to take care of their kids if something happens without ever telling the people they are listed. Now that would be a very rude awakening. But the same would be true for your business. <span style="color:#ff6600;">You need a plan – you need it now – it is time to take this step.<br /><br /></span>I can’t encourage you enough to create your legacy plan today. It is one thing you can’t do after the fact. If you don’t do it – someone will do it for you. My suggestion is that a decision this important is something that you want to handle. <span style="color:#ff6600;"><strong>Don’t leave it to chance or be late to the party</strong></span>.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-61460256377353354962011-03-08T22:34:00.002-06:002011-03-08T22:40:21.605-06:00The Power of the HTG SWOTI was blessed last week to spend a few days with Michael Cocanower and the team at itSynergy. We were invited to come in as part of the HTG SWOT process and take a look under the covers and give some ideas to the team on ways to break through the barrier they are facing – revenue around the $1M level. I see this happening quite often as companies grow – <span style="color:#ff6600;">it seems to be the step that happens when a company has leveraged all their personal relationships and client referrals and are up against the need to build a true sales organization</span>. It is so frustrating and Michael was no different than many IT owners – he is ready to break through this challenge and move on to the next level. There are numerous ceilings that we need to break through along the path of growth – which is why being involved in a peer group with others who have been there before can be so helpful.<br /><br />We met with the team as a group and individually. MSPtv was on hand to video our interaction, and will be creating the second TV show in our series of SWOT makeovers in the near future. You can catch it on MSPtv in the next month or so. We discovered exactly what Michael was experiencing – he had self-diagnosed a major part of the barrier. The team at itSynergy is technically talented, and while they have been working to build a sales organization – they haven’t cracked the code on that one quite yet. So HTG team members Steve Riat and Lyf Wildenberg (who accompanied me on this SWOT) were busy creating a plan to help drive sales to the next level.<br /><br />Michael’s approach has been to focus one of his sales guys on the medical vertical, and have the second doing general SMB sales. But the culture at itSynergy was very much technically driven and controlled. It is the way many IT companies operate today – they come from a technical perspective and the sales culture is controlled by and actually stymied by that approach. <span style="color:#ff6600;">You can’t build a culture of sales excellence if everything is created by and driven by technology. Sales is about people and finding pain and solving that. Technology is a tool for sales people to use – but it is not the first response – and it can’t control how clients are served</span>. That is where many companies fail. They allow the technical side of their business to have a strangle hold on what happens in the sales process.<br /><br />Where does that show up? Consider who determines what solutions you will take to market. My bet is that it is the engineering team – not the sales folks who actually are listening to customers. <span style="color:#ff6600;">Why should a sales motion be controlled by what engineers want to sell or support</span>? That is backward to the way a true sales culture operates. Sales determines the need and finds solutions to address those needs that can be sold to the customer. Of course the engineering team needs to evaluate things to be sure they actually work and will solve the issue. But most companies never consider how solutions get created, or supported, or tested, or priced, or marketed – from a sales perspective. It always has engineering overtones. That is how most companies think.<br /><br />If you want to succeed in building a sales culture – you have to change the approach. <span style="color:#ff6600;">You have to come at things from a sales perspective first – not as an afterthought</span>. You should never be asking the question “can we sell this”. If you approach it with a sales mentality – you are creating an environment that allows your team to succeed. The transition is easier to talk about than to do. Habits are difficult to break – and engineering has been king a very long time in most organizations. But in the new world – that has to change and reverse completely. It isn’t going to be about what you can implement or fix – it will be about what you can sell.<br /><br />In the case at itSynergy, we recommended some pretty basic things:<br />1. Train the team in effective sales<br />2. Create an effective sales management program<br /><br />Basically there is a need to create a sales organization driven by a sales culture. This is true for 80% plus percent of HTG member companies. It is our Achilles heel. It has been an aggravating problem to this point since most of us have been able to stay successful serving our current clients and growing slightly using relationship based selling. <span style="color:#ff6600;">In the new world – the cloud world – that is not going to be enough</span>. We are moving quickly to a much more transactional based sales motion – we have to be able to find and add new clients. We have to be able to grow our client base and sell new products to new people. It is a very different landscape than we are used to farming. Basically we need to learn to hunt. That is uncomfortable and challenging. But it is essential for our long term survival. Are you in process of transitioning your company? If not, now is the time to get started down that path.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-72636546354270085592011-03-06T15:36:00.002-06:002011-03-06T15:49:50.919-06:00Two Big Opportunities for Microsoft PartnersIn the next few weeks there are two very important opportunities for Microsoft partners to participate with key executives in Redmond and get first hand information about the direction and strategy of the company. I encourage you to make this investment of time and join one or both of these events. It is not often that we can interact directly in this manner - so don't let it pass without your attention. Far too often partners complain they have no part in the discussion, or are not informed of what is happening. You can't use either excuse if you don't get involved and participate.<br /><br /><strong><span style="color:#ff6600;">Microsoft Partner Network Interactive Leadership Forum<br /></span></strong><br />March 10, 2011 - 7:00-8:30 am Pacific Time<br /><br />Presented By: Eric Ligman - Microsoft Director of Partner Experience<br /><br />Jon Roskill - Corporate Vice-President, Worldwide Partner Group<br /><br />Julie Bennani - General Manager, Microsoft Partner Network<br /><br />Ross Brown - Vice-President, Worldwide Partner Sales<br /><br />Karl Noakes - General Manager, Microsoft Partner Strategy & Programs<br /><br />Join the Microsoft Worldwide Partner Group leadership team for an <strong><span style="color:#ff6600;">interactive partner forum</span></strong> webcast on the Microsoft Partner Network. During this session, we will be discussing topics, questions, concerns, misconceptions and more that we have heard from partners around the world regarding the Microsoft Partner Network to help address and answer these for you, the Microsoft partners. This session will also include an open forum Q&A session where you will be able to ask questions of the leadership team regarding the Microsoft Partner Network.<br />This session will be moderated by Eric Ligman.<br /><br />A sample of some topics included:<br />• Small business focused partners in Microsoft Partner Network<br />• Which is right for you: Action Pack, silver competency, or gold competency?<br />• Microsoft Partner Network and market awareness<br />• Revenue requirements in Microsoft Partner Network<br />• Partners, cloud, and Microsoft Partner Network<br />• And more…<br /><br /><span style="color:#ff6600;">Register for the event</span> <a href="https://training.partner.microsoft.com/learning/app/management/LMS_ActDetails.aspx?UserMode=0&ActivityId=731863">here</a>.<br /><br /><span style="color:#ff6600;">Join the Conference</span> at this <a href="https://www.livemeeting.com/cc/plc_usa/join?id=7318642011217112745&role=attend&pw=Ktq%5C%28%29%3A%284">attendee URL:</a><br />• Toll-Free (Within US & Canada): <span style="WHITE-SPACE: nowrap" class="baec5a81-e4d6-4674-97f3-e9220f0136c1">(877) 505-6621</span><br />• Audio Pin: 7912<br /><br /><br /><strong><span style="color:#ff6600;">Session #2 - Meet the US Partner Team for HTG members only<br /><br /></span></strong>We heard your feedback and wanted to introduce you to a few people at Microsoft who live and think about Microsoft partners each and every day.<br /><br />Why? Because our relationship with our partners matters. We know that we can’t meet all of you individually, so we’re going to put technology to work and invite you to join us on a<span style="color:#ff6600;"> Meet the US Partner team</span> held via Live Meeting on Monday, <strong><span style="color:#ff6600;">4/4 from 2:00 -3:00 pm cst</span></strong>. We want you to know that we value the relationship we have with our partners and want to make sure you know who to contact and when. Some of the team members who are eager to meet you include:<br /><br />• To Partner Communications Lead – Diane Golshan<br />• Microsoft Partner Network Lead – Sharon Collins<br />• Compete Lead – Alistair Cloke<br />• Incentives and Solutions Incentive Program (SIP) Lead – Hany Adeeb<br />• Partner Capacity Lead – Michael Pearson<br /><br />And a few more of our key partner leads who care about the success of our partners.<br /><br /><span style="color:#ff6600;">Check with your Microsoft HTG Champ or watch the newsletter or portal for the live meeting logon information.</span> I would be glad to send you the invite as well if you drop me an email.<br /><br /><span style="color:#ff6600;"><strong>Two great opportunities to connect with the people who make things happen at the largest vendor for most of us. Don't let this slip between your fingers! See you on the calls!!<br /><br /></strong></span>The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-79237125744628568662011-03-01T06:00:00.001-06:002011-03-01T21:13:03.880-06:00A Great Opportunity to Expand Your Options to SMB CustomersI don’t normally write about specific technology products, but <span style="color:#ff6600;">last week Microsoft released to manufacturing a great new product called Windows MultiPoint Server 2011</span>. This product has been revved from the previous version and I think has a great application for those of us serving small businesses. The previous version was only designed for education users – but this version – while still designed with education in mind – has a significant play for us in SMB.<br /><br />With Windows MultiPoint Server 2011, <span style="color:#ff6600;">the licensing and purchase model has been simplified</span>. There are still two versions as before, with similar restrictions:<br /><br />• Windows MultiPoint 2011 Standard – still cannot join a domain and still has a max of 10 work stations<br />• Windows MultiPoint 2011 Premium – CAN join a domain as before and can have up to 20 workstations<br /><br />The most important piece of information to note in the SMB space, is that <span style="color:#ff6600;"><strong>BOTH of these MultiPoint editions are offered in </strong></span><a href="http://blogs.technet.com/b/sbs/archive/2011/02/21/windows-multipoint-server-2011-has-rtm-d.aspx"><span style="color:#ff6600;"><strong>multiple Microsoft licensing channels</strong></span></a>. So now you don’t have to be a large school to actually purchase the more useful edition of MultiPoint. And that is where our opportunity comes in.<br /><br />Imagine going to your small business customer with this solution. You walk in the door and are told they don’t have any money to upgrade their network. Their equipment is 5-7 years old and you have been holding things together with baling wire for the last couple years. They have a dozen XP workstations and a server that has run out of space so it is eating you alive on your managed service program as you have to clean files weekly just to keep it up and running.<br /><br />The way that conversation normally goes is trying to coax enough funds out of them to replace the server and maybe a critical workstation or two. With Windows MultiPoint 2011 Premium – <span style="color:#ff6600;">we now have some real options</span> to help these businesses refresh in a less expensive but very impactful way. We still need to get a new server to do the work – but rather than also have the battle over replacing workstations – we can extend their life with MultiPoint. They become end terminals that don’t need to be upgraded from XP to Win 7. That happens as a MultiPoint client.<br /><br /><span style="color:#ff6600;">But wait, there’s more</span>. The 2011 version of Windows MultiPoint Server has support for thin clients. Here is where I think the big win for Small Business can occur. If you have 12 XP workstations, you can simply obtain 1 copy of MultiPoint Premium and now each of those XP workstations have another 5 years of life but yet, they get a full Windows 7 experience when used as a MultiPoint workstation over the network. And when they finally begin to die – you can replace them with thin client devices rather than buying a new PC. It all runs over the current Ethernet network you have in place. And the real deal – it runs in a virtual session on a Windows server too.<br /><br />We have been testing Windows MultiPoint Server 2011 in one of our education clients for the past few months. Our engineer has four virtual servers running WMS 2011 and serving thin clients and older desktops and notebooks alike. <span style="color:#ff6600;">It has great management features</span> for the teacher or business owner – the ability to shadow users – block activity – really keep track of productivity on the network.<br /><br /><span style="color:#ff6600;">It is essentially a turnkey TS server on steroids</span>. Just show the business owner the console where you can get a thumbnail of each individual workstation. Business owners will love that they can now watch their employees desktops for use of Facebook or selling something on EBay, or other non-productive time wasting tasks on work time.<br /><br /><span style="color:#ff6600;"><strong>You owe it to your customers to take a serious look at Windows MultiPoint Server 2011.</strong></span> Combined with the new SBS product line – this will be a killer opportunity for us in the SMB space to refresh our clients to a level of productivity where they can use all the current technology without having to battle with them to buy all new hardware. It is a win for all of us in the mix. Check it out, and let me know what creative ways you come up with to deliver this technology to the marketplace!<br /><br />Here are some resources for those of you interested in more:<br /><br />1. The main website just went live today with WMS 2011 content. <a href="http://www.microsoft.com/multipoint">http://www.microsoft.com/multipoint</a><br />2. WMS 2011 Premium Eval is on the download center. This is a 180 day eval. It can convert to full product by entering a key. <a href="http://www.microsoft.com/downloads/en/details.aspx?FamilyID=3188a587-3542-4dda-99b3-551cdabe581f">http://www.microsoft.com/downloads/en/details.aspx?FamilyID=3188a587-3542-4dda-99b3-551cdabe581f</a><br />3. WMS 2011 Premium full product is also on technet for technet subscribers. <a href="https://technet.microsoft.com/en-us/subscriptions/securedownloads/default.aspx?PV=42%3a433%3a---%3aen%3ax64">https://technet.microsoft.com/en-us/subscriptions/securedownloads/default.aspx?PV=42%3a433%3a---%3aen%3ax64</a><br />4. And it’s also on MSDN for MSDN subscribers. <a href="https://msdn.microsoft.com/en-us/subscriptions/securedownloads/default.aspx?PV=42:433:---:en:x64">https://msdn.microsoft.com/en-us/subscriptions/securedownloads/default.aspx?PV=42:433:---:en:x64</a>The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-58789061542377778162011-02-19T16:17:00.002-06:002011-02-19T16:26:39.642-06:00A Bit More On Sales<strong><span style="color:#ff6600;">One of the benefits of being part of HTG is the unbelievable resources that exist in our membership.</span></strong> I certainly don't claim to be an expert on every aspect of running an IT company today. There have been plenty of learnings over the years which I try and share continually, but when it comes to expertise - there are some folks in almost every area that are way ahead of me.<br /><br />I got an expanded view of sales from one of the guys I respect immensely as a sales expert - Jonathan Warrey who is Regional Sales Director at HTG member Marco and runs a large sales team and drives millions of dollars of business each year. Jonathan is always ready to help out with sales information - many of you were part of his session at our last HTG Summit along with Steve Riat on sales management. <br /><br />He shared these words in response to my last blog post on sales. Rather than interpret them for you - I am just going to share what he wrote as it nails the whole sales culture far better than I can describe it. He responded to my paragraph that said:<br /><br />“Once the owner gets his attitude right there is at least a fighting chance to begin doing some of the right things that will lead to sales success. It is not just hiring a sales person. That will not do it. <span style="color:#ff6600;">You don't have to look far to see the past performance of most VAR's littered with sales people they hired and fired because they didn't meet expectations.</span> That is the place to start - realistic expectations. Since you have no clue what to expect - you obviously should not be setting them. Find someone who has a clue to help you create a sales plan and methodology so the sales person has some hope of success. Most VAR's hire and set them up to fail - no support - no direction - no tools - no nothing - just a wish of good luck and a threat that "I'll be watching the KPI's". Here is a news flash. Most sales people can't spell KPI and could care less. They have only one that matters - that is the number of dollars in their paycheck.”<br /><br />Here comes Jonathan's brilliance - read it and ponder it carefully:<br />"The one difference I see in your last statement and what we experience at Marco is that there is something that transcends the pursuit of a paycheck. And that’s<span style="color:#ff6600;"><strong> the pursuit of sales achievement and sales excellence</strong></span>. I truly believe that creating and fostering an environment of sales achievement is even more important that creating an environment that celebrates a sales rep earning a lot of money. <span style="color:#ff6600;"><strong>Then when you wrap it around client satisfaction and retention results to show how our best reps also have happy customers, it becomes really powerful</strong></span>. Yes, those reps earn the most money as well, but it’s the pursuit of sales excellence that drives them the most. We continue to change what has the most sales impact within our company. You’ve probably seen that managed services has become a bigger deal within our company. In fact, our reps don’t get 15% of their paycheck (through a commission hold back) if they don’t achieve their managed services annual revenue goal. The pay is a big deal, but the fact that they would miss the sales incentive trip if they don’t hit their managed services target is a bigger deal to most of our reps."<br /><br />Did you catch that? Not only do we need to build a sales organization - we need to build a sales culture that applauds achievement and excellence. That is the foundation of a really great sales organization. When you have a sales team that is focused on excelling, serving their clients and retaining them - you have a winning combination. The Marco folks have proven that over the years as the largest member in HTG several times over. They understand that the culture of their organization is critical to building long term success. Having had the priviledge of spending time in their office - they do things right all day every day. <span style="color:#ff6600;"><strong>Have you built a sales culture that drives excellence and achievement</strong></span>? The rest takes care of itself if we get that culture part right!<br /><br />PS - if you try and get hold of Jonathan this week - he is off to sunny Mexico with his bride and 30 other Marco couples to enjoy the sales team incentive trip. While it’s not as encompassing as a whole company retreat, it builds incredible camaraderie amongst the troops. It can be done my friends. <span style="color:#ff6600;">I won't say it is easy - but it is possible</span>!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-9758204372745761812011-02-13T20:28:00.003-06:002011-02-14T08:01:36.652-06:00The Disconnect With SalesAs I participated in the HTG vendor peer group this week - <span style="color:#ff6600;">a lightbulb went on as to a major reason there is such a disconnect between VAR's and Solution Providers and their vendors</span>. It has to do with a four letter word - SALES. The agenda for this quarter's meeting focused heavily on sales and marketing efforts that key HTG vendors are making significant investments into - and trying to figure out ways to get a better ROI on those efforts.<br /><br />At first glance it seems so easy. Vendors build programs and resources. Partners should take those and use them to drive sales. Everyone wins. That is the end game for both groups - partners and vendors - we all want the same thing - to sell more stuff to end clients. But somehow there is a disconnect. For some reason the millions of dollars - and in reality it is billions of dollars - that are spent continues to provide lackluster results. <span style="color:#ff6600;">Hundreds of millions of dollars go unused and unclaimed</span>. It is actually pathetic.<br /><br />Why does this happen? I am convinced <span style="color:#ff6600;"><strong>there is a short circuit in the brains of many VAR's</strong></span> when it comes to sales. Most owners grew up on the technical side of the business. That word does not compute. Those who have a sales background did most of their selling through personal relationship and the reality of a sales organization still doesn't compute. In other words - we are very sales illiterate.<br /><br />That doesn't mean it can't change. It has to. If it doesn't many of us will be looking for a new job. <span style="color:#ff6600;">The market is changing as the wave moves us to cloud computing. That is a sales dominated transaction oriented marketplace</span>. It doesn't matter that you can fix any technical issue under the sun - often before it is even invented. It doesn't matter how many letters there are after your name and what certifications you can post on your website. If you can't sell you will be toast. So it is time we figure this out my friends. And I am preaching to myself on this one too.<br /><br /><strong><span style="color:#ff6600;">The major hurdle it seems to me is owner attitude</span></strong>. Many just don't want to deal with sales and particularly sales people. I hear words like 'they're wierd' or 'they think differently'. Duh! That is the whole point. The reason we as technical owners can't sell our way out of a paper bag is that we think like technicians and engineers. Sales oriented folks succeed BECAUSE they think different. That is not a curse - it is a blessing. It has to be and we need to get over the differences and embrace them. I struggled with this for many years but it can happen. Find a 12 step program to recover from hating sales and sales people - you have to do a 180 on that attitude.<br /><br />Once the owner gets his attitude right there is at least a fighting chance to begin doing some of the right things that will lead to sales success. It is not just hiring a sales person. That will not do it. <span style="color:#ff6600;">You don't have to look far to see the past performance of most VAR's littered with sales people they hired and fired because they didn't meet expectations</span>. That is the place to start - realistic expectations. Since you have no clue what to expect - you obviously should not be setting them. Find someone who has a clue to help you create a sales plan and methodology so the sales person has some hope of success. Most VAR's hire and set them up to fail - no support - no direction - no tools - no nothing - just a wish of good luck and a threat that "I'll be watching the KPI's". Here is a news flash. Most sales people can't spell KPI and could care less. They have only one that matters - that is the number of dollars in their paycheck.<br /><br />Yes that is very different than the way you think. But it is reality. Get over it. <span style="color:#ff6600;">And get over the fact that a really good sales person will make more money than you</span>. In fact, don't just get over it, root for it. When they do that you are making more money than ever before if you have your compensation plan right. If you don't - they could take you to the poor farm - so another reason to find someone who has been there and done it before to help you. There is help available. HTG has worked with TruMethods, Kendra Lee, Service Leadership, and a number of our own HTG members to bring you great content on how to really build a sales organization. If you were sleeping - time to wake up and reach out for help. It is available.<br /><br />So back to my opening discussion. <strong><span style="color:#ff6600;">Our vendor partners are trying hard to help us learn to become sales organizations</span></strong>. They are investing tons of money and people resources to help us. But if we don't get our attitudes right - and embrace that transition - it is all for naught. If we don't join their efforts and leverage their work - we are screwed. I can't put it any more clearly. Get over the temptation to treat your vendor like the enemy. They absolutely are the best ally you have in your camp. And right now - we all need them more than ever. You see - they are not built as technical organizations that don't know how to sell. Those companies went out of business long ago. Our vendors are sales organizations who really know how to sell - and know that without sales they are simply not going to last long at all. We can learn an aweful lot from them if we just pay attention and work closely. They really do know what they are doing. That is how they become multi billion or multi million dollar orgs. <span style="color:#ff6600;">It isn't because they can turn a screwdriver</span>. It is because they understand how to sell and market and succeed. We have to get there if we want to remain relevant in the years ahead.<br /><br />There are some great programs in the channel today that most of us fail to use. Free money and resources to help us grow our companies - but we are too busy doing things that don't matter to do those that do. Make time to sit down with your top five vendors and find out how you can leverage every program, resource, MDF dollar and plan they have to offer. If you do that - and pay attention - and make it a priority to leverage those things - you will be far ahead from where you are today. If you don't - might want to get your resume up to date - you'll probably need it sooner than later. <strong><span style="color:#ff6600;">Make it your goal to transition towards becoming a sales and marketing organization in 2011</span></strong>. Your future depends on it.<br /><br />This Wednesday at 2 PM EST I will be joining Gary Pica, CEO of TruMethods, to discuss this topic and others that are critical to success in 2011 and beyond. If you aren't registered yet you can get the registration link on the HTG portal. It really matters that we tackle this head on. I hope you will join me for the discussion!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-28238320932736918842011-02-07T19:17:00.007-06:002011-02-08T17:52:02.583-06:00The Value of a Company RetreatThis past weekend <span style="color:#ff6600;">HTS celebrated our 2010 successes</span> with our annual company retreat. We met in Lenexa Kansas, a suberb in the SW KC area, at the Crowne Plaza Hotel with our entire staff. That has been our habit since the mid 90's - to gather the troops and celebrate the past year and prepare for the next one. The venue was very good and excitement was high as we gathered to get acquainted with new team members and review things.<br /><br />Friday afternoon the teams were in training. Our engineering and sales teams learning about Mitel, SonicWALL and Microsoft. Our dispatchers spent time working on processes to improve service delivery. Our admin team was together working on things from their perspective. How much do you invest in training your people? Hosting a multiday retreat for a staff of 80 plus is not inexpensive - in fact it is really quite a cost - but <span style="color:#ff6600;">you can't look at it as an expense but rather an investment</span>. So often owners are short sighted in how they approach their people - the biggest cost on the P&L - but the biggest resource the company has to succeed too. And that is what we have to focus on - equipping our resources with more knowledge and skill so they are able to continue to grow and excel even more in the years ahead.<br /><br />That is particularly true of leadership teams. Often companies will spend money for sales or technical certifications. After all, they are required to keep vendors happy and to remain authorized to sell their products or qualify for their programs. <span style="color:#ff6600;">But how many companies are investing more in their leadership team?</span> This group of people has the largest impact on the direction and success of a company and yet often has little or no investment in getting better. We don't spend money on the leadership - somehow they are supposed to figure it out by osmosis. It doesn't really work that way I am afraid. We need to continue to sharpen our skills as leaders and invest in ourselves as a leadership team. Without that we become stagnant and come to a point where we are no longer equipped to continue leading the charge.<br /><br />Friday night we did two things - <span style="color:#ff6600;">we had fun and mixed and mingled and enjoyed getting connected with each other</span>. There were a number of our team that I had never met face to face before. Hard to imagine isn't it - but long gone are the days where I am involved in every interview and hiring decision. This is the one time we try and connect all the dots for everyone from our 7 locations. Unfortunately the ice in Oklahoma prevented that team from attending, but most all the others were with us. People are able to work more closely and effectively when they can put a face to a name. They can relate better and feel more confident when they have shaken the hand of their teammate. It just makes for better working conditions even with all the across the wire collaboration tools we have today. There is nothing quite like a face to face connection!<br /><br />The other part of our Friday night event was our annual awards presentation. Each year we <span style="color:#ff6600;">honor a number of our team for their exceptional work</span> during the past twelve months. We realize that it is the team that makes a successful company - not just the leadership. We recognize the top sales and service producers and rookies of the year. We hand out go-giver awards to those who embody our company vision and mission and reach out to help others. We honor those who are leading the way in driving our business, and those who embrace the spirit of HTS. It is a fun time of recognizing those who go above and beyond to make it happen every day. Team is what makes HTS successful and we want to make sure those who really help us succeed are given their just rewards.<br /><br /><br />Saturday we did a review of the past year - not spending a lot of time dwelling on the past - but looking at areas we can improve in. While it is important to learn what we can from past performance - <span style="color:#ff6600;">we can't drive effectively by looking in the rear view mirror</span>. Far too many leaders spend all their time dissecting the past and far too little planning for and executing for the future. So we spent much more time looking at the plans for 2011 than our performance in 2010. We also broke the group into smaller groups to talk about our personality traits and how we can work better together with those who might think a bit differently or be wired in a different way.<br /><br /><span style="color:#ff6600;">We closed the day with some motivational comments</span> from our President - Connie Arentson - and then I did a Q&A session for the team answering the proverbial question of when our next M&A will occur. I shared my perspective on the market, on China and other big picture items and focused the team on our big rock for 2011 - getting our processes and customer experience consistent for every interaction we have.<br /><br />So was the investment worthwhile? I definitely think it was and the feedback from the team indicates they enjoyed it much as well. <span style="color:#ff6600;">We have to take time to celebrate our successes and share our vision for the future if we want to succeed</span>. Our teams don't read our minds. We have to be intentional about how we lead. And by the way - as I shook each employees hand on the way out we gave them their bonus for 2010 which always leaves a smile on their face as they head home. Sharing our success with them is our way of saying thanks for a job well done. We are blessed to have the team we do - and want them to know we really appreciate all the hard work. Have you been intentional in leading and investing in your team? If not, now is the time to start. They will take you to the next level!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-8236246457897835902011-01-31T14:20:00.003-06:002011-01-31T15:23:42.963-06:00CEO Forum IIIThis past week HTG hosted our <span style="color:#ff6600;">CEO Forum III</span> in sunny Tampa Florida. We had 20 company principals join us for a day and a half of lively discussion about what it means to become a CEO in an SMB IT company today. We are grateful to ConnectWise for hosting our first day, and enabling us to have a discussion around what the role is, and how to create a structure around the CEO in the form of a leadership team. We discussed selection, compensation, evaluation and all things leadership team.<br /><br />One of our featured sessions involved Arnie Bellini, CEO at ConnectWise, sharing his vision around <span style="color:#ff6600;">what role a CEO fulfills</span>. You can catch the presentation on ConnectWise University, but he really simplified it into two key areas (which I believe are right on the money):<br /><ul><li><span style="color:#ff6600;"><strong>Strategy/Vision/Dreaming</strong></span></li><li><span style="color:#ff6600;"><strong>People/Counseling/Leading</strong></span></li></ul>When we take a deeper look - one of these areas involves <span style="color:#ff6600;">the future and setting direction</span>. A CEO is responsible to provide the general movement a company will take. They are not focused on the details - the how - but they are to provide the where and the why. Strategy does not just happen. It is intentional and takes effort. Arnie challenged the group to make the time to dream and be very clear about where we will lead our company.<br /><br />The second area is <span style="color:#ff6600;"><strong>all about the people</strong></span>. We will go nowhere that our people don't go. It is the role of the CEO to lead people down that path. We have to focus on helping them work at the level they are capable which is often more than they believe possible. At times we need to help them play nicely together in the sandbox. But always we have to remember that people are the main job of all we do - at every level. My experience is that every minute invested in meaningful relationships will always be a good investment.<br /><br />Day two was focused on people and how we interact with each other. Dr Larry Little was with us - author of the book "<span style="color:#ff6600;">Make a Difference</span>" (which is available on LuLu.com) - and he led us through great learnings on how we are wired and more importantly how different personalities relate to each other. We learned that each of us are some combination of lion, monkey, camel or turtle - each with unique qualities and characteristics that make us who we are. The magic was not so much in the animal labels as in the communication it enabled. We were able to relate the different personality types to each other and talk freely about things that occur between them. It truly was an eye opening experience for the group.<br /><br />This year HTG is focused on the <span style="color:#ff6600;">fourth pillar in our trek toward excellence</span> as IT companies. We are working on the top of the pyramid - the most challenging area - <span style="color:#ff6600;"><strong>people</strong></span>. We identified this as a core area of competency we all need to achieve to be able to truly lead best in class organizations. We will be continuing our quest to learn more about leadership, management and people skills this year. Dr Little gave us a great starting point - it is essential we understand what makes people tick - and then learn to manage the interactions that will occur between folks who are not wired quite the same - or maybe are wired too much the same - or maybe are just plain wired. We have a ways to go - so let the journey begin.......<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoQzco8w5yy_6-wfjEjybrcEZLPuDjsjtX-Ijz4aLmr6x2T8HsUVoscDFiBJz4lskOjbGasCoRyDZCTgHDfyAPqKtFSiqcL1VesemzJ0gHMXzp2rwu3tfmKYCgTlSfdMNX4sEgBKsHwWMd/s1600/HTG+Triangle.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 358px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5568456280813245138" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoQzco8w5yy_6-wfjEjybrcEZLPuDjsjtX-Ijz4aLmr6x2T8HsUVoscDFiBJz4lskOjbGasCoRyDZCTgHDfyAPqKtFSiqcL1VesemzJ0gHMXzp2rwu3tfmKYCgTlSfdMNX4sEgBKsHwWMd/s400/HTG+Triangle.PNG" /></a><br /><div></div><br /><div></div><br /><div></div>The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-44795648365880327512011-01-22T17:53:00.003-06:002011-01-22T18:08:48.449-06:00Tale of Two Customer ExperiencesIn January 2011 we experienced a very different set of experiences regarding our hotel stays in China. We arrived in Shanghai on January 6, 2011 and were taken by taxi to the Renaissance Shanghai Pudong Hotel. We were greeted and checked in for a delightful two days in the city. We were located conveniently close to the Metro for the Science and Technology Museum and found the service and the staff to be very helpful. We stayed at this property using our Marriott Rewards Platinum Premier points.<br /><br />After two days in Shanghai, we took the train to Hangzhou where we were scheduled to stay 10 days at a different hotel chain. This was a fairly new hotel and we were booked using points through our hotel membership program. Upon arrival at the Hangzhou train station, we secured a taxi to take us to the hotel for check-in. <span style="color:#ff6600;">Upon arrival we discovered some major problems with the reservation</span> that was offered under our Platinum membership. The website had indicated the room was capable of up to three people – so the assumption was a room with two queen beds would be available. However there was only an option of a king bed, or two single beds available. We were offered, after some strong displeasure with the finding, to put a rollaway bed into the room for 200 RNB per night. The room was barely large enough to put the bed into and left no room for moving around – it really was an unworkable solution. We also were told that there was no breakfast included with the room, nor access to the executive lounge. Having stayed in dozens of this chain's properties over the past years – this was quite a shock since the website only shows three available room types and all include items we were not offered nor being allowed access to. Our normal experience is to be upgraded to the next level as a club member – <span style="color:#ff6600;">not </span><span style="color:#ff6600;">downgraded because we were using points for our stay</span> to a room offer that is not even listed on the hotel website. (Web shot below)<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG2Zo5uGsme4ELybmbICwmzN5UyovmzShEWPZkfmwM2tFeRuYDwY29i0r7qztkucd7vwmrFEA-arLfRNysXDQ2KRF8n0Wo0pTXQRJcpHJKMT_CbGFqKZpQ3nRZ1Cpl5UGpuOyLtlcVdPBz/s1600/Holiday+Inn.png"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 470px; DISPLAY: block; HEIGHT: 408px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5565163033358681346" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG2Zo5uGsme4ELybmbICwmzN5UyovmzShEWPZkfmwM2tFeRuYDwY29i0r7qztkucd7vwmrFEA-arLfRNysXDQ2KRF8n0Wo0pTXQRJcpHJKMT_CbGFqKZpQ3nRZ1Cpl5UGpuOyLtlcVdPBz/s400/Holiday+Inn.png" /></a><br /><div></div><div></div><div></div>The description on the website for even the lowest end room indicated it would be more than adequate. Upon a return trip to the front desk to again express displeasure, the night clerk called a manager to see if we could be upgraded to a family suite so we could at least all sleep comfortably. After waiting in the lobby for 15 minutes or so, the message came back that no upgrades would be made available and if we wanted to stay in the property we would indeed have to pay the 200 RNB per night cost for the rollaway and no breakfast or lounge privilege would be provided. At that point I indicated we would be checking out in the morning and moving to a Marriott property. I will give credit to the manager that they did refund the unused points for the other 10 days of our stay, but to be honest, <span style="color:#ff6600;">my faith in this chain and particularly the value of their club membership program have been badly damaged</span>. The total unwillingness to seek a satisfactory resolution for a member of Platinum status was quite unbelievable.<br /><br />We moved to the JW Marriott which was just opening a few miles away. At the time we booked our trip, there were no Marriott properties available to make reservations at. This property was in soft opening mode – so we expected some slight glitches as they were training and putting things into operations. I realize that the level of the JW Marriott is not exactly par with the hotel we had left – it is a couple levels higher in terms of the quality of the property – but the true differentiator has been in the customer service area. We arrived at the hotel at 8 AM – as we checked out of the very uncomfortable environment at the other hotel and moved to the JW Marriott first thing in the morning. We were greeted and immediately checked in – upgraded as well – which is the common Marriott practice for Platinum members. We had two guest service representatives who escorted us to our room and explained all the benefits we would receive while staying in our room – also paid for with points as we had planned to do at the other property. (Interestingly, the points needed at the other place were 15K per night while the JW Marriott was only 12K per night for a much nicer property). We had a slight elevator issue on the way up to our room but our guest service representatives resolved the issue and got us safely to our room. <span style="color:#ff6600;">They then escorted us to the executive lounge for breakfast, even though we hadn’t spent the night before. That was service beyond our expectations</span>. We had full executive lounge privileges for our entire stay which was a significant value for us.<br /><br />We stayed at this property for 10 nights and it is <strong><span style="color:#ff6600;">with joy that we highly commend the Marriott brand for customer service the way it should be expressed</span></strong>. From the moment we walked in to the property, we were treated exceptionally well. From Simon and the team in the executive lounge who greeted us daily and are sure we got a hearty breakfast and evening meal, to Tony and Andy who helped us as concierge’s extraordinaire and printed us maps, directions and helped us secure train tickets for our return trip to Shanghai, to the bellmen, desk staff and every other member of the Marriott team, we experienced superb customer service. The omelets which were prepared for us by the executive lounge chefs were perfect, our room was kept clean and tidy with care, taxis were secured as needed, and we were greeted by name and with a smile every time we walked back into the hotel. The differences between our experiences with the two hotel chains there were staggering. <strong><span style="color:#ff6600;">Marriott has trained their staff extremely well and taught me the importance of creating raving fans</span></strong>. They have done exactly that with us on this trip. As we return now to the US, and plan meetings and travel for the dozens of events and trips that will occur over the next 12 months, Marriott properties will be the clear choice when available. They have earned the right and mostly our hearts as fans of their customer service.<br /><br />So what’s the lesson here? Quite honestly there are several that I want to be sure you understand clearly:<br />1. <strong><span style="color:#ff6600;">Always listen to the customer</span></strong>. It was obvious that we were not being listened to and understood. It is impossible to deal with problem resolution without a clear understanding of what the issues are.<br />2. <strong><span style="color:#ff6600;">Check out the facts</span></strong>. I requested multiple times that the clerk look at the website to see exactly what we saw as the facts in the matter. We were told that it didn’t really matter what the website said – this is the way it is. If there is misinformation, it is important to know that and correct it.<br />3. <strong><span style="color:#ff6600;">Understand what needs to be done to satisfy the customer</span></strong>. We were never asked what would be required to resolve the situation. There was no understanding nor apparent concerns with what our expectations were.<br />4. <strong><span style="color:#ff6600;">Know the impact</span></strong>. At HTG we book well over $750,000 worth of hotel meetings each year covering thousands of room nights all over the country. The impact of the treatment we received will result in a significant opportunity cost to the other hotel brand over the coming months and years. It is critical to understand the long term impact of customer service decisions.<br />5. <strong><span style="color:#ff6600;">Remember that the customer has to be treated as if they are always right – even when they are not</span></strong>. The end result of customer service has to be coming to a satisfactory resolution to the issue.<br /><br />As is always the case, things happen for a reason. There is little doubt that our experience here in China was significantly enhanced because we stayed at the JW Marriott. The location was better, the service superior and we were pleased in every way. Had we actually received our expectations at the other hotel, it would not have measured up to what we were blessed to experience. So while the experience was definitely frustrating for 12 hours or so, the outcome was magnificent as we made the move and enjoyed a time beyond our dreams or expectations. Thanks to the JW Marriott staff in Hangzhou for creating a memory that will last a lifetime. We are grateful for your service and are raving fans!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-50453276975917535792011-01-17T07:22:00.004-06:002011-01-17T07:22:00.289-06:00Relationships MatterThis is the tenth and final blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. I saved the biggest and best until last. There is no question that the single biggest thing I have learned in how to grow a business comes down to this: <span style="color:#ff6600;"><strong>it is all about relationships</strong></span>. There is no other single factor that comes anywhere close to driving growth as this one - a firm understanding and competency in creating, maintaining and growing relationships. From these interactions all sorts of powerful things happen. There are relationships needed in many areas - with your team, your vendors, your distribution partners, your customers, your strategic partners, media and PR folks and on the list goes. If you want to truly grow your company, or you life for that matter, you have to get this part right!<br /><br /><strong><span style="color:#ff6600;">Community</span></strong><br />Relationships for me all started with and continue heavily to focus around community. First Ingram's VTN, now HTG - but meeting with like minded folks is so very important. There is so much to learn from others in the industry, but in order to do that you have to spend time together. So <span style="color:#ff6600;">being part of community is a critical component to the relationship area</span>. What groups are you part of? For me:<br /><br />•Community has provided perspective<br /> Without it you don’t know what “good” is<br />•Community has provided relationships<br /> With distribution, vendors, peers, subject matter experts and media<br />•Community has provided guidance<br /> Without it the ability to stay relevant is more difficult<br />•Community has provided growth<br /> 6 M&A’s resulted from the relationships in communities<br />•Community has provided success<br /> Without it we would still be a little technology company in the middle of a cornfield<br /><br /><br /><strong><span style="color:#ff6600;">Power of Peers</span></strong><br />The bottom line is that there is extreme power when you become intimate with a set of peers. Here are some of the foundational things that define HTG:<br /><br />•We engage other companies in the channel<br />•We share and give openly<br />•We ask for help when we need it<br />•We share our financials openly<br />•We plan together around business and life<br />•We execute together<br />•We are accountable<br /><br />Not only do you learn from others, but as community goes deep, relationships become so much more. <span style="color:#ff6600;"> It quickly gets down to accountability and life and making sure we are doing what we intend</span>. That is the power of true relationship - it causes us to be more than we were without it.<br /><br /><span style="color:#ff6600;"><strong>From where I sit</strong></span><br /><br /> I have been blessed to be part of this industry for the last 25 years. Lots of things have happened during that time. The Internet has become main stream. Cell phones went from small suitcases to the palm of your hand. Portable pc's went from 40 pound luggables down to a few pounds. Change happens - it has been but even bigger change is coming….<br /><br />The rate will accelerate as we move more and more to the cloud. And how IT impacts businesses will continue to morph and become more deeply integrated. However there remains one constant…and that is the fact that people are still at the end of the wire running things.<br /><br /><strong><span style="color:#ff6600;">At the end of the day</span></strong><br /><br /><span style="color:#ff6600;">We are in the people business</span>. That is what we do. We sell technology and services but our job is really managing change and helping those we serve adapt to it. It won't be easy. All of us resist change at some level. But to truly have a handle on relationship we have to realize our opportunity to help people handle change. There are lots of places for us to do that:<br /><br />•Ourselves<br />•In our business<br />•For our customers<br />•With our employees<br /><br /><span style="color:#ff6600;">Our success will be directly tied to how well we help people adapt to change</span>. It really is that simple. Relationship will always win over technology because it is about people, not the bits and bytes. We must never lose sight of that fact.<br /><br />The final reality and lesson is this: <strong><span style="color:#ff6600;">PEOPLE ARE THE ONLY THING THAT TRULY MATTERS.</span></strong> If you get this one thing right - most everything else takes care of itself. That means knowing how to build and maintain relationships. It is THE most important thing!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-91379560022447164012011-01-10T07:38:00.000-06:002011-01-10T07:38:00.276-06:00Customers MatterThis is the ninth blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. Ther reality is that we must always keep our eye on the customer. It seems so simple and almost foolish to include - but I am amazed at how many of us lose connection with what customers truly want and we miss the boat completely in our solution and service offerings. We have to be willing to <span style="color:#ff6600;">get back to basics and listen carefully</span> to what customers are asking for. It isn't about them buying what we want to sell. It is about us offering what they want to buy. We tend to get it backwards sometimes. After all, we are the experts aren't we. We know best what they need. And we go to events where we hear the formulas for how to build the right cloud offer or managed services program so they should just line up.<br /><br /><strong><span style="color:#ff6600;">Customers control the wallet<br /></span></strong>But that is not exactly how it works from my experience. We can have the greatest services and solutions and never sell any of them if we miss the customer expectations and needs. When we lose sight of this reality - we can set ourselves up for some difficult days at the least. Customers decide when to write checks and for what. So it is critical we listen and listen well. That means we need to spend time with customers - in their offices - observing their pain points. It means we need to pay attention to their requests and study their service utilization. We can learn a lot by just perking up our attention to their needs.<br /><br /><strong><span style="color:#ff6600;">So what are they asking<br /></span></strong>I don't know about you, but here are some common things we hear from customers in our patch. See if your's are different:<br /><br />•Reduce my costs<br />•Use my data<br />•Get more from my investment<br />•Help me communicate better<br />•Prove an ROI<br />•Just make it work – reliably<br />•Help my workers be productive anywhere<br />•What is this cloud thing anyway?<br /><br />There are some pretty basic requests that continue to come, along with some new things as well. In HTG we see the future this way:<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgToTJMWDhWgQtWLjP0Ah-iYYXtMn_JiL5SSfro5tPt7RJv5QQNLAVc2zZt9sYrQiB_jbbB2_bZ0C4AT9trtetRmY48UlZJVQKnDcDvG66W_V2U8R5K3wBzZDKkItrfi0bN3LgYH_ple3bE/s1600/HTG+Triangle.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 358px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5556896299544063458" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgToTJMWDhWgQtWLjP0Ah-iYYXtMn_JiL5SSfro5tPt7RJv5QQNLAVc2zZt9sYrQiB_jbbB2_bZ0C4AT9trtetRmY48UlZJVQKnDcDvG66W_V2U8R5K3wBzZDKkItrfi0bN3LgYH_ple3bE/s400/HTG+Triangle.PNG" /></a><br />The cloud is causing some confusion and uncertainty in exactly what is needed or wanted as it gets defined and matures - but the basic requests are the same. What may change is how we meet those needs - but customers are pretty consistent. They want to spend less, get more, and have it work all the time. <br /><br /><strong><span style="color:#ff6600;">How are you paying attention</span></strong><br />So just what are you doing to hear the voice of the customer. We use surveys and roundtables and face to face discussions. It is important to have ongoing interaction constantly so you are current in meeting their requirements. Don't ignore the need here. <span style="color:#ff6600;">If you serve your customers well, they will come. </span> But if you fail to meet or exceed their needs - they quickly vanish. Don't make that mistake. Listen, respone, serve and execute.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-27161285787458108902011-01-08T10:32:00.000-06:002011-01-08T10:32:00.744-06:00So What About The EconomyEach year I write some thoughts on my perspective around the economy. I am not an economist - so take this with a grain of salt. It is just an Iowa farmboy's opinion as to what lies ahead. As I look at 2011 and the next few years, there are some realities that underlay the current market conditions that are a bit troubling. I am not usually a pessimist by nature – I consider myself to be an optimist but over time have migrated to more of being a realist. And the reality is that here in the US, and worldwide for that matter, the issues that caused the economic meltdown have not been truly dealt with. A significant amount of money has been spent – billions here and there thrown at the surface issues – but underneath it all remains the root causes which have not been addressed. <span style="color:#ff6600;">We have been somewhat effective in putting a Band-Aid on things but definitely not effective in truly solving the core issues.<br /></span><br />As I talk with folks in the financial industry, I hear over and over how the more obvious and simpler issues have been or are being corrected. But everyone is quick to point out that there are <span style="color:#ff6600;">a significant number of big rocks left on the path</span> that will take several years to correct at best. There are still billions of dollars of bad loans being carried by banks that have not been addressed. There are billions of dollars of bad credit card personal debt that is currently just being ignored as to not upset the apple cart during this apparent recovery. While every part of me wants to believe we truly are in recovery mode, I can’t make that step, because the fundamentals have not been fixed. There must still come a day of reckoning. <span style="color:#ff6600;">The only question in my mind is – will it be in 2011?<br /></span><br />A lot depends on the way the new Congress approaches the issue. If they take the hard line approach – we have to stop the spending and fix the problem – correction will happen sooner than later. Should they continue the path of pushing the hard decisions to some future year – it could drag on a year or two giving us short term relief. I can’t predict legislators any better than I can outguess the weather in Iowa. So I am cautiously optimistic about the economy this year because I tend to believe they will not make any short term moves in 2011 to upset things. I do think 2012 will be a different story.<br /><br />One industry I am rather familiar with is the agriculture sector. We have seen record grain prices and the result has been skyrocketing land values and input costs. For those who don’t recall history – the last time we saw these dynamics was back in the late 70’s and early 80’s – you may recall it being called the “Farm Crisis”. Many farmers lost all they had because of a significant drop in value of their crop inventory and land values. I see those days coming again for agriculture in the not too distant future. The reality is that the current pricing situation is not sustainable. And throw in the reality that no politician will ever be elected for having high food prices for the general consumer and something has to give. <span style="color:#ff6600;">There will be a correction – I believe a very strong one – and it will happen in the next couple years.</span> That will spill over to the general economy rather quickly which is just another reason why I see trouble ahead.<br /><br />Please don’t take this as a doom and gloom message. That is not the intent. But <span style="color:#ff6600;">it is my desire to balance the excitement that is being driven by the media around a recovery that is only skin deep</span>. Be cautious, take advantage of all the goodness you can right now, but save for a rainy day because there are clouds in the sky. Conserve cash and make sure you are ready to go through some rough days in the not too distant future. As we say on the farm “make hay while the sun shines”. There are some very positive opportunities right now we should definitely pursue. But don’t get too far away from the barn because when the rain comes you will need to get inside and have a place of safety.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-5011967983397572092011-01-03T08:08:00.001-06:002011-01-03T08:08:00.305-06:00Life MattersThis is the eighth blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. Without a doubt this is the most important of the ten items - that <span style="color:#ff6600;">success without balance in your life is empty</span>. Some of the most successful people alive are also the most unhappy. The reality is that <span style="color:#ff6600;">success does not equal happiness</span>. Success does not equal fulfillment. Success by itself, and certainly alone, means nothing. So before you go chasing success - having the biggest company or the most profitable EBITDA or the most customers or employees - know why you are doing it and how you will make it meaningful so it brings happiness along with it. Otherwise you are wasting your time, and ultimately your life, pursuing a dream to nowhere!<br /><br /><span style="color:#ff6600;"><strong>The Problem</strong></span><br />The world is full of the results of folks who fail to keep balance in their lives. Here is a short list of things I see every day:<br /><ul><li>Marriages crumble</li><li>Families are destroyed</li><li>Friendships become distant</li><li>Businesses crash and burn</li><li>People self destruct</li></ul>As small business owners we seem to think that working hard will cover a multitude of sins. It doesn't - it might take care of the bills and put some money into the retirement account - but <span style="color:#ff6600;">money never buys happiness</span>. It will not ever make up for the lost hours with your spouse, kids, family or friends. Money can't buy the important things in life - it bandaids the real problem most of us have - how we use and prioritize our time. Working hard is not the answer. Being intentional and disciplined is.<br /><br /><strong><span style="color:#ff6600;">Hard Reality</span></strong><br />Here are the cold hard facts. <span style="color:#ff6600;">Every human being on this planet gets 168 hours every week</span>. No more, no less. The biggest responsibility we have is how we will use those precious hours to make the most significant impact. There are some jobs that only you can do. No one can really replace you as spouse and father. Oh we certainly try to do that a lot - but divorce is messy and painful and not a solution to failure to put people first. The facts are that you are not indispensible at work. There are plenty of people capable of filling the roles at the office. Maybe not exactly the way you would do it. But those tasks will get done. But no one can truly fill your role as husband/wife or dad/mom. We try to offload it - but it doesn't work. Figure out the things that only you can do - and do them first. <br /><br /><strong><span style="color:#ff6600;">Why we work all the time</span></strong><br />I know what drives most of you to work too many hours. You get validated more easily there than at home. Let's be honest - it is pretty easy to be validated by people who don't really know you. <span style="color:#ff6600;">You can become the hero pretty quickly at work</span>. There are a lot less messy things to deal with - and you normally have help to deal with a lot of areas at work that fall only on your shoulders at home. It is tough to sometimes recieve validation from our spouse and kids. We can get into a negative cycle and just want to run to work to avoid feeling incompetent. But we have to understand the dynamics of home life. Living with people 24/7/365 is a whole lot different than the 8-10 hours or so we are together at work. We don't do holidays with our co-workers. We don't go on vacations together. It isn't a fair comparison so we just need to realize that it often "feels better" at work than home. BUT that is no excuse to spend every waking hour there or run back to the office if things at home get a bit tough. Nothing is more important than taking care of business at home first. That is where our first use of the 168 hours we are blessed with each week need to be spent.<br /><br /><strong><span style="color:#ff6600;">Balance is a hard thing</span></strong><br />Balance is a challenging target to aim for. There are so many things pulling us in so many ways that it is difficult to achieve. But I know no one in their retirement or on their death bed who ever said they wished they had worked more hours. I have heard many people say they wish they had spent more time with those they loved. <span style="color:#ff6600;">We only get to use our precious 168 hours once</span> - we can't bank them - we get no do-overs - we have to do it right the first time. It is critical we truly spend time planning how we do that. <br /><br /><strong><span style="color:#ff6600;">Do it well</span></strong><br />It is important to know what success really is so we don't get to the end of our career and decide we totally missed it. Have you defined success? Do you know what it means to truly achieve? Life matters far more that success by itself. If we blend success with a solid plan for what matters in life - which always involves people - we can have the best of both worlds. If we don't - we will miss one or the other and end up frustrated and unfulfilled. Don't miss the mark. <span style="color:#ff6600;">Get some balance and a plan for what it means to truly be successful in your life</span>. It is much more than work. A life plan is a critical part of that process. Don't wait another year - get started now!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com1tag:blogger.com,1999:blog-8469922981891127724.post-71101896598232148652010-12-30T17:10:00.003-06:002010-12-31T07:37:33.332-06:00Some Misconceptions about Microsoft's MPNAs we approach the new year - there are a number of things on the plate for all of us. We need to close 2010 and finish the current year strong. We need to plan and put on paper our goals for 2011 - to have SMART goals that can be measured and watched over time so we can be accountable to execute them consistently and completely. We need to celebrate our blessings and be grateful for all the good things we have experienced. A new year is a time of new opportunity.<br /><br />Unfortunately I have been watching with some amazement the reaction, or lack there of, to the new Microsoft MPN partner program. I <a href="http://peerpower.blogspot.com/2010/08/microsoft-partner-network.html"><span style="color:#3366ff;"><strong>wrote about this</strong></span> </a>back in August and encouraged partners to begin planning and putting their strategy in place. It seems many have ignored or failed to take any action, and now as we move into the key season of partner renewals, there is panic and frustration that partners are not ready for the transition. This program has definitely raised the bar - but that is not news either. In fact, it has been the plan and came at the request of partners from around the world. This has been in planning stages for some time, and was covered in my <a href="http://peerpower.blogspot.com/2010/04/new-microsoft-partner-program-mpn.html"><strong><span style="color:#3366ff;">blog post back in April</span></strong></a> as well as dozens of communications from Redmond as well.<br /><br />The landscape has changed and it is time for true Microsoft partners to jump on board and embrace MPN. Diane Golshan wrote a <a href="http://blogs.technet.com/b/msuspartner/archive/2010/12/21/the-new-partner-network-45-days.aspx"><strong><span style="color:#3366ff;">great blog post</span></strong></a> last week addressing some of the key misconceptions. Putting things off is not the right answer. Just living under the grandfathering of benefits is not the same thing as embracing the program and putting your strategic plan in place and becoming fully engaged with MPN. Take a read of Diane's post - check out some of <a href="http://blogs.msdn.com/b/mssmallbiz/"><strong><span style="color:#3366ff;">Eric Ligman's posts</span></strong></a> as well. This transition is a change - none of us like change - but it is the future and we need to get on board - embrace it and take advantage of the differentiation that all of us desire. Don't miss the boat on this important opportunity. Spend some time - leverage the resources available - and put your company in a place that will be different than most of your competitors who are just sitting back and waiting. We don't see a lot of chances like this in the channel to really be different. My advice is to get after it and do it quickly.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-34875600435329615052010-12-27T08:57:00.001-06:002010-12-27T08:57:00.426-06:00Vendors MatterThis is the seventh blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. There is little question that many folks in our industry seem to feel that the vendors are the enemy. Why - I am not exactly sure. But I can tell you without question that an attitude like that is 180 degrees the wrong way. Not only are vendors necessary and important - if you really want to grow - they are one of the most important factors I have seen and experienced.<br /><br /><br />So before you tune me out - listen a bit. Unless you are some super giant company - you do not have everything you need in order to serve your clients. Even Microsoft and HP use vendors - lots of them - to bring together things needed to serve their end clients. <span style="color:#ff6600;">So what makes us as IT owners believe we are self sufficient and can run our business without any vendor relationships?</span> I know the answer and it is in one word - stupidity! I know because I used to think that way a long time ago. I thought my job for the day was to beat vendors and distributors up on pricing and accuse them of trying to take my customers or take advantage of me through one of their programs somehow. Is that how you see your vendor relationships? Wrong approach - way wrong. Here are the facts as I have seen them over the years:<br /><br /><br /><strong><span style="color:#ff6600;">Vendors and Distributors exist to sell stuff</span></strong><br /><br />At the core of our attitude toward vendors is the failure to understand what they are in business for. Just like us - they exist to make a profit - and serve their customers. We tend to want to cut that first part out. If you want to succeed in this area - you have to understand that they are in business to sell things. And the way you embrace that is pretty obvious - you buy them. But not based on where you can find the lowest deal of the day or beat down the last penny of profit. You consolidate your purchasing and become a loyal buyer. Nothing says relationship like those two words. Get over finding the cheapest place to source products. Pick a distributor and a few key vendors and buy their products the same way from the same companies every day. I am often amazed at discussions where someone saved $10 a product by shopping. They wasted two hours of valuable time that could be used on productive work - but they got the best deal. Until they look a little more and find out that had they spend the whole day they could have saved $12. How ludicrous. We are in the value business. We sell our solutions and services based on value - not cost. We should buy the same way and quit worrying about getting every last dime out of someone. You will never grow or succeed as long as you are focused on spending your time here rather than building value for the customer.<br /><br /><br /><strong><span style="color:#ff6600;">Learn who your reps are and how they get paid</span></strong><br /><br />Relationships happen between two people. Every vendor has people resources that we can leverage to help drive our collective business. Your assignment is to find out who they are and build a relationship with them. It starts by buying as described in the previous paragraph. Most vendor reps are not crazy about working with companies that don't buy anything. But assuming you figure that one out and become a loyal partner - then it is time to begin the treasure hunt to find out where the people resources are. This takes determination and hard work - but is very much worth the effort. Once you build a relationship by consistently executing - you will find that these folks offer to bring resources to the table to help you grow. After all - they are paid on selling stuff. You need to ask that question and understand their compensation model - but inevitably it will have some component of sales in the mix. So find them and help them succeed. No one in their right mind won't partner with you to sell more if you are helping them earn more. This is key - building a win - win relationship. It is so powerful and I have seen significant results from learning to partner closely with vendor reps.<br /><br /><br /><strong><span style="color:#ff6600;">Participate in their programs</span></strong><br /><br />Vendors spend millions and millions of dollars on our behalf. The sad reality is that most of us don't take advantage of those investments. We don't like what they are offering for this reason or that - so we just ignore them. Bad decision. We need to not only understand what our key vendors are doing to support the channel - we need to participate in every possible way whether it is exactly how we would like it or not. It is their money after all. They are spending it on our behalf. We don't get to decide how. But they do care about our participation. They very much care about how involved we are in taking advantage of their investments. And they do keep score. Not getting much attention from your vendors? Begin by looking at your support and participation in their programs. More often than not you are getting what you deserve based on your committment.<br /><br /><br /><strong><span style="color:#ff6600;">Provide customer evidence</span></strong><br /><br />Vendors really love customer success stories. And in our IT channel two tier distribution model they have a difficult time getting those because we are in the middle. If you want to win some big points with both field reps and folks at corporate offices of your key vendors - capture and write success stories on how their technology delivered by you made a difference. That is like gold to reps and gives them some great evidence to bring back to their company. You can use it with your customers too - so it is something we should all be doing anyway. Just be sure to include your vendor reps and help them look good with their managers.<br /><br /><strong><span style="color:#ff6600;">Get your team trained</span></strong><br /><br />It amazes me at how many partners complain about having to invest in training to get attention from vendors. Is it really that difficult to understand. It not only prepares us to actually sell their products as designed, to install them the best possible way, to succeed with their programs and use their references - but it also shows loyalty and our willingness to put skin in the game. Do I ever think some of the training is a little worthless? Yep. Do I think most training could be done better? Yep. Do we participate and get our people trained? Absolutely. Why? Because it shows that we are committed to the technology and company we are representing. It is part of learning how they intend to help us succeed. We need to bite the bullet and get our people trained, and then use what we learned to sell and implement more solutions.<br /><br /><strong><span style="color:#ff6600;">Plan and be accountable to them</span></strong><br /><br />One of the most important things you can do to take vendor relationships to a whole different level is to truly plan together. Each year in the last quarter we hold our annual vendor planning session. We invite our top 4 or 5 vendor partners and our disty partner to the table - all at the same time - with our management team to strategize for the coming year. This has turned into one of the most important things we do to drive relationship with our vendors. It is a day and a half to two days focused on how we collectively grow each others business. There are competitors in the room - but we are clear that our approach to the market is solution selling and we sell products from a few vendors to build our solutions so they have to learn to play together in the sandbox. It opened some eyes the first time we did it. Some were pretty quiet and careful - but over the years it has become a true collaborative time and vendors leave knowing our collective approach. We also make committments to them, and they to us, that both sides are accountable for. We do quarterly reviews to make sure we are on track through the year. You have to be transparent and accountable if you truly want to make vendor relationships work.<br /><br />There are lots of ways to engage vendors. Here are a few ideas we have utilized:<br /><br />•Marketing Development Funds (MDF) - come in a variety of shapes and sizes<br />•Technology adoption programs<br />•Rapid deployment programs<br />•Beta programs<br />•Case studies – video and print<br />•Advisory councils<br />•Technical and sales training<br />•On site visits where we have corporate folks in our office to see what really happens<br /><br /><strong><span style="color:#ff6600;">The bottom line</span></strong><br /><br />If you want to truly grow your company - you have to get this area right. I have seen NO company of any size do it alone. There always is a very strong and deep strategy to leverage vendors as part of the growth. You just aren't going to get there if you don't embrace them. They truly are a great resource and ally if you build deep relationships. It is work. It takes time. But it is very much worth it. Get after it and don't listen to the majority who will never figure this out. Go deep and find out just how far great vendor relationships can take you on your path of growth!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-5832574470997378262010-12-25T15:50:00.002-06:002010-12-25T15:55:55.924-06:00Teach The True Meaning of ChristmasJust a week before Christmas I had a visitor. This is how it happened. I just finished the household chores for the night and was preparing to go to bed, when I heard a noise in the front of the house. I opened the door to the front room and to my surprise, Santa himself stepped out next to the fireplace.<br /><br />"What are you doing?" I started to ask. The words choked up in my throat and I saw he had tears in his eyes. His usual jolly manner was gone. Gone was the eager, boisterous soul we all know. He then answered me with a simple statement . . ."TEACH THE CHILDREN!" I was puzzled. What did he mean?<br /><br />He anticipated my question and with one quick movement brought forth a miniature toy bag from behind the tree. As I stood bewildered, Santa said, "Teach the children!Teach them the old meaning of Christmas. The meaning that now-a-days Christmas has forgotten. "Santa then reached in his bag and pulled out a FIR TREE and placed it before the mantle. "Teach the children that the pure green color of the stately fir tree remains green all year round, depicting the everlasting hope of mankind, all the needles point heavenward, making it a symbol of man's thoughts turning toward heaven."<br /><br />He again reached into his bag and pulled out a brilliant STAR. "Teach the children that the star was the heavenly sign of promises long ago. God promised a Savior for the world, and the star was the sign of fulfillment of His promise."<br /><br />He then reached into his bag and pulled out a CANDLE. "Teach the children that the candle symbolizes that Christ is the light of the world, and when we see this great light we are reminded of He who displaces the darkness."<br /><br />Once again he reached into his bag and removed a WREATH and placed it on the tree. "Teach the children that the wreath symbolizes the real nature of love. Real love never ceases. Love is one continuous round of affection."<br /><br />He then pulled from his bag an ORNAMENT of himself. "Teach the children that I, Santa Claus, symbolize the generosity and good will we feel during the month of December."<br /><br />He then brought out a HOLLY LEAF. "Teach the children that the holly plant represents immortality. It represents the crown of thorns worn by our Savior. The red holly berries represent the blood shed by Him.<br /><br />Next he pulled from his bag a GIFT and said, "Teach the children that God so loved the world that he gave his begotten son." Thanks be to God for his unspeakable gift.<br /><br />Santa then reached in his bag and pulled out a CANDY CANE and hung it on the tree. "Teach the children that the candy cane represents the shepherds' crook. The crook on the staff helps to bring back strayed sheep to the flock. The candy cane is the symbol that we are our brother's keeper."<br /><br />He reached in again and pulled out an ANGEL. "Teach the children that it was the angels that heralded in the glorious news of the Savior's birth. The angels sang Glory to God in the highest, on earth peace and good will toward men."<br /><br />Suddenly I heard a soft twinkling sound, and from his bag he pulled out a BELL,. "Teach the children that as the lost sheep are found by the sound of the bell, it should ring mankind to the fold. The bell symbolizes guidance and return.<br /><br />Santa looked back and was pleased. He looked back at me and I saw that the twinkle was back in his eyes. He said, "Remember, teach the children the true meaning of Christmas and do not put me in the center, for I am but a humble servant of the One that is, and I bow down to worship him, our LORD, our GOD."<br /><br />(reposted from <a href="http://llerrah.com/">http://llerrah.com/</a>)<br /><br />I too, hope to be found a humble servant of the One that is, and I bow down to worship him, our LORD, our GOD. - Merry Christmas!<br /><br />ArlinThe Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-28613570995887825042010-12-19T13:13:00.003-06:002010-12-19T13:40:52.469-06:00Sales MatterThis is the sixth blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. There is little question that many small business owners really dislike the whole sales process or anything that is related to it - particularly in the IT industry. But sales is not a four letter word - well it is - but it isn't a bad one. And there is little question that sales really do matter. That could be the understatement of the century actually. <br /><br />Why is there such an aversion to sales by so many IT firms? Well for many of us, we came up to leading our company via the technical side of the business. We were engineers that were good at what we did and then decided to hire a few more like us and form a company. That works for a while but soon we hit the wall because we don't sell - we can fix anything under the sun - but we don't sell. I use don't rather than can't here intentionally. Anyone can sell - maybe not equally well - but it isn't that IT owners can't sell - it is because they almost despise the idea and certainly the notion of what being a salesperson is all about. Time to get over it!<br /><br /><strong><span style="color:#ff6600;">Nothing happens until something gets sold.</span></strong> Let me say it again - nothing happens until something gets sold. OK - I have admitted it in public. We need to sell if we want to have a business. And sales is not a matter of luck. It happens when we build a sales process and system that makes sales happen regularly. We have to make the investment to put the right system and tools in place to make it happen. It can't be a hope and a prayer. That is not a sales strategy. Sales happen when we build the right foundation, hire the right people and execute the plan consistently. It really is not magic - it just takes consistent hard work doing the right things every day.<br /><br /><strong><span style="color:#ff6600;">Most sales people fail because of a lack of support and management.</span></strong> It is common in the IT small business space to have a revolving door of sales people. We hire a person, let them flounder around on their own for 3-4 months and then fire them because they haven't sold much or anything at all. We blame them. Here is a newsflash - they likely are NOT the problem. You are. We set most new sales hires up for failure. We don't give them the right tools. We don't have a system in place. We don't manage or support them. We wish them well and sit back waiting to count the money. It just doesn't work like that. Owner attitude and support will make or break the sales engine in any company. Take a good look in the mirror and you will likely find the problem with your sales people.<br /><br />When we do find that super human who is able to defy the odds of our lack of support and systems and actually sell something - it only lasts for a while. That is because without marketing support - <strong><span style="color:#ff6600;">every sales person will eventually run out of opportunities and people they know to sell to</span></strong>. It is our job to create leads for our sales people to follow up on. That is called marketing. It is hard work. It costs lots of money. It is somewhat luck - often more magic than science from my experience. But without marketing support - without aircover and other supporting tools to help drive leads and open doors - even a veteran sales person with many years of success will stub their toe. It is necessary to spend money on marketing to have consistent sales performance. <br /><br /><strong><span style="color:#ff6600;">The pendulum is rapidly swinging toward sales</span></strong>. I see some major changes that are already in motion and will change the landscape as we know it for IT for many years to come. The cloud will force us to become sales organizations. You can resist, hide you head in the sand, and wake up one day wondering what has happened to your customer base. Or you can accept the fact that change is coming and make some changes. Some of these changes have been in motion for a while. Others are more a result of the current market and the move toward the cloud. But no matter the reason - they are coming. Here are some observations:<br /><br />•From technical to sales focus<br />•From answering the phone to creating demand<br />•From selling products to selling solutions<br />•From T&E to flat rate services<br />•From on premise to the cloud<br /><br /><strong><span style="color:#ff6600;">No longer will the company with the most technical genius necessarily win</span></strong>. I predict that those with most mature sales approach will actually come out on top. This new reality is that the IT business is moving toward a transactional relationship and those who can sell will win in that landscape. The reality is that companies <span style="color:#ff6600;">must become sales organizations</span>. We have to deal with these realities:<br /><br />•Sales people are not the enemy<br />•It requires new thinking and management<br />•It requires new compensation models<br /><br /><span style="color:#ff6600;">Along with that we must become marketing organizations</span>:<br /><br />•Referrals are great but go only so far<br />•Most companies have just continued to sell new solutions to their current base<br />•We must become lead generators for the sales team<br />• Lead generation is not the vendors responsibility<br /><br />Here is the reality as I see it. <span style="color:#ff6600;"><strong>If you don’t embrace sales, growth will be stagnant and you will be frustrated. That is - if you survive</strong></span>. There will be plenty of companies that fail completely because they refuse to adopt the notion of becoming sales organizations. You don't have to like it - but it does work better if you do. You do have to do it and the time to begin is immediately. You can't afford to wait on this one. Begin now to learn to sell. Put the right systems in place. Hire someone and invest in them. Manage them closely and carefully. And begin to see the results - the sooner you begin - the sooner you will reap some of the goodness that comes with selling something. Remember - nothing happens until you sell something. Get after that today!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-84451867425609757742010-12-12T17:20:00.003-06:002010-12-12T21:09:37.225-06:00Growth is Hard WorkThis is the fifth blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a>. There is little question that many small business owners really don’t understand just how difficult the growth process really is. The common misconception is that if you show up every day and work hard – it just happens. That has not been my experience. There are <strong><span style="color:#ff6600;">many steps along the path to growing a business</span></strong>, and it must be done intentionally and executed continually to keep moving forward.<br /><br />It all starts with you. You started your business because <span style="color:#ff6600;">you wanted to be your own boss</span>. You wanted to call the shots. There is a likelihood that you worked for someone else and decided you could do it better. But when you make the decision to grow – it can’t be about you anymore. Growth means you have to involve others – inside and outside your company. And that is the first step. You have to hire someone.<br /><br />I remember those days well. It was a scary proposition. All of a sudden I was <span style="color:#ff6600;">responsible for payroll</span> which meant we had to be generating revenue. I sort of convinced myself it was ok to work some of the time and not pay myself – after all it was my company. But when you bring on that first employee they typically don’t quite see it that way. They come to work with the expectation they will get a paycheck and they should. So we have to know how we will generate enough revenue and keep them busy so we can pay them.<br /><br />This is usually when the first lesson of growth occurs. <strong><span style="color:#ff6600;">It isn’t a straight line up</span></strong>. We have steps – take a few forward and then one backward. It looks something like this for many:<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnyzAEwFqmpJnt0kTiy3PhwhZAqYH35L3uRZlRcMX2oezU0amWjjx0TH8zckk71-gpqpElnAw7ViJRhLgr9JHxJLFQJnT4PscLXIVS3wwP5GNOElaECr9QrJzKEghFdQj69Td2lOrui1IU/s1600/Growth+1.png"><img style="MARGIN: 0px 10px 10px 0px; WIDTH: 389px; FLOAT: left; HEIGHT: 231px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5549507421552803858" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnyzAEwFqmpJnt0kTiy3PhwhZAqYH35L3uRZlRcMX2oezU0amWjjx0TH8zckk71-gpqpElnAw7ViJRhLgr9JHxJLFQJnT4PscLXIVS3wwP5GNOElaECr9QrJzKEghFdQj69Td2lOrui1IU/s400/Growth+1.png" /></a> <span style="color:#ff6600;">Seldom do companies grow with the green line</span> – just up and to the right continually with no hiccups. Nor do companies maintain their situation like the red line – stagnant without change. I am a believer that if you are not growing – you are shrinking because I seldom if ever see a company just stay the same. But growth is a series of ups and downs and that is normal. It isn’t a mistake – and there isn’t anything wrong with you when it happens – it is the reality of how growth occurs.<br /><br />There are a <strong><span style="color:#ff6600;">half dozen key stages</span></strong> I see in the growth cycle. The following chart shows some of them and areas where they may show up in your growth pattern.<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOf0hlw3PccWKHp04vMe0Lhm-aycRHR5xqG0XRUOqkuNsc6Wh6hHJ3EbBI6iY4uNvKDSbj0ra6VnFtaiUteNjAO0aKeXQw2eF4rtwqOj05jYQnyEjuHzJAdKr5oSEu6fQkqd48MYLizw6i/s1600/Growth+2.png"><img style="MARGIN: 0px 10px 10px 0px; WIDTH: 389px; FLOAT: left; HEIGHT: 235px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5549507274563176898" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOf0hlw3PccWKHp04vMe0Lhm-aycRHR5xqG0XRUOqkuNsc6Wh6hHJ3EbBI6iY4uNvKDSbj0ra6VnFtaiUteNjAO0aKeXQw2eF4rtwqOj05jYQnyEjuHzJAdKr5oSEu6fQkqd48MYLizw6i/s400/Growth+2.png" /></a> You won’t necessarily experience all of these in the same order or at the same level as the chart describes, but as you grow your IT firm you are <span style="color:#ff6600;">likely to experience all of them</span> along the way.<br /><br />That takes us to the second step – which is the need to become a sales organization. To be totally honest – this is the one where many companies get hung up. It may happen with 2-3 employees or you may make it to 7-8, but at some point sales will be your blocker to growth. Why? Nothing happens until someone sells something. I will go into much more detail on sales in a future blog post. It is essential, so embrace it and accept the fact it has to happen if you want to grow.<br /><br />This is the first of what I consider to be the <strong><span style="color:#ff6600;">five key areas to growth</span></strong>:<br /><span style="color:#ff6600;">1. Become a sales organization<br />2. Learn how to market<br />3. Put in place and execute process<br />4. Develop leadership<br />5. Understand the power of strategic relationships</span><br /><br />My experience is that if you understand and work through these key blockers – you will grow and grow significantly. But each one can plateau you for years or for life. You can’t skip any step – the order may change – but all are essential to continually growing your company.<br /><br />Realize that your business should serve you – not the other way around. <strong><span style="color:#ff6600;">If the business controls your life – you have a job</span></strong>. You probably left a job to start your business so don’t just trade one for the other. Dreams should be coming true. You should have more freedom – not less. It has to function without your presence – if you are required to make it work – you have a job with a different title on it. It should be predictable in meeting your goals and needs. It should not require you – or the 4 P’s from you:<br /><span style="color:#ff6600;">· Your presence<br />· Your personality<br />· Your problem solving<br />· Your persperation</span><br /><br /><strong><span style="color:#ff6600;">As you build your sales organization you begin to feel like you are losing control</span></strong>. Not everything goes through you anymore. You have to trust others. It is a huge step. But if everything flows through you – then you are the bottleneck to growth and not only will you restrict that – you restrict profit potential as well. You cannot be the center of your company forever. The only way you escape the problem is to keep growing and putting others in places you once were responsible. That is called delegation – not something many entrepreneurs are comfortable with – because no one does it quite like we do. But we have to get over that and let others do the work.<br /><br />So you have began to build a sales team and hired a sales person or two. They are selling and then hit the wall. They run out of people they know and places to call on. That is when marketing has to kick in. <strong><span style="color:#ff6600;">Marketing is key to keeping a sales team productive</span></strong>. They don’t manufacture sales – they close leads and turn them into sales. Many small business owners make the mistake of thinking that just hiring a sales person fixes all the sales issues. In fact it just creates more needs. They have to be closely managed and there has to be a consistent lead generation system to keep them productive. They can’t just make this stuff up. It has to be fed to them so they can do what they do – go build relationships and close deals. That is what we hire them to do so now we have to equip them with the tools they need for success.<br /><br />Next comes the need for some<strong><span style="color:#ff6600;"> sanity in the midst of chaos</span></strong>. Many companies go for years without any process, procedures or policies in place. And then as they have some success and grow – things quickly get out of control because you can’t scale without processes. So in the teens for number of employees you have to get things written down and folks trained to follow them. It is hard work. We never have time for it. And changing behavior to follow is a difficult task because we are upsetting their world. Why do we need this all of a sudden? It is far easier to do this step early with few employees than wait for the chaos to require it. But most of us don’t make the time until it is mission critical. And that is driven as we grow to a certain point. Take it from me – it is far easier to write a process for two than for twelve. Do it early – do it well – and set the example to follow them.<br /><br />After some more growth and success we begin to run into a <span style="color:#ff6600;"><strong>leadership void</strong></span>. We typically expect our people to learn by osmosis and just being around us. Unfortunately it doesn’t quite work that way from my experience. So we have to make investments and train folks on leadership. That is essential as we will need to grow practices around key technologies, vertical markets or opportunities. Many companies don’t have nearly the leadership they need to continue growing. It is a sad reality. It happens because we have been too cheap to invest and too busy to notice than no one else is really stepping up to lead. This costs money and takes time – intentional and significant time – which far too many small business owners never take. We seldom invest in our own skill building let alone that of others. But if we want to keep growing we have to build leadership and a team that can help make that happen.<br /><br />At some point along the curve <strong><span style="color:#ff6600;">we grow past our ability</span></strong> to drive continued growth on our own. That is when the value of strategic relationships kicks in gear. I find it happens somewhere past 50 employees and it becomes essential to learn to leverage the investment other partners in the ecosystem are making. We need to use their marketing, lead generations, services and tools to help to continue drive the business. But it is all about building and maintaining strong relationships. It won’t happen accidentally and I find this one area to be a key blocker for many companies that are trying to grow. More on this topic in a future blog post as well.<br /><br /><strong><span style="color:#ff6600;">Growth has many steps</span></strong>. They don’t all move upward and to the right. It is hard work and requires determination, dedication and a very big desire. But you can grow if you truly want to and commit to it. We have experienced it even on the farm in Iowa where our business is operated. It isn’t magic – it is hard work and execution day after day to work toward a strategic objective. Plan for growth and then execute to achieve it. Realize it means change often along the way. But you can achieve it if you want to!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-14794023399936834262010-12-09T10:18:00.000-06:002010-12-09T10:18:00.539-06:00The Power of Peer CoachingPeer groups are the rage in the IT industry today. Lots of options exist and many people are spending significant resources of time, money, and brain capital to participate. Is it worthwhile? At HTG we believe it has the potential to be the most impactful thing that people can participate in. But the value is very dependent on folks doing a great job as peer coaches. In fact, if groups fail at that core level, it quickly loses value and causes consideration of whether it is a worthwhile investment or not. Harvard Business review wrote a great article on the topic of peer coaching. It was written by Stewart D. Friedman who is Practice Professor of Management at the Wharton School. Following are his thoughts and I encourage you to read and consider how you can hone your skills as a peer coach.<br /><br /><br /><strong><span style="color:#ff6600;">The Directive Approach — Giving Useful Feedback</span></strong><br />The essence of directive coaching is providing feedback. Take this approach when your goal as a coach is to instruct others on what they've done well and what they can do to improve.<br /><br /><br />As a coach, one of the main gifts you have to offer to anyone who you've seen in action is to express to them your <span style="color:#ff6600;">observation of that action and its consequences</span>. It's best to present your impressions straightforwardly and with compassion. The quality and sensitivity of a coach's feedback can make a huge difference in spurring growth.<br /><br /><br /><br />On the other side, to be an effective peer, the primary challenge you face is to <span style="color:#ff6600;">remain open and manage your natural tendency to be defensive</span> in reacting to feedback — information about your actions and their consequences — that is in some way inconsistent with how you currently view yourself. Getting good at both giving and receiving directive coaching requires practice. Very few people are naturally gifted in this essential skill.<br /><br /><br />In providing directive feedback, <span style="color:#ff6600;">your main responsibility is to identify strengths and clarify areas for improvement that address your peer's goals</span>, while at the same time finding ways to reduce defensiveness. You produce value as a peer coach when you give feedback that, first and foremost, addresses goals that are a real priority for them, not for you. It's useful, too, for you to push your peers to stretch and go as far as they can in pursuing the goals that matter to them.<br /><br />I've found that the best way to offer feedback is to <span style="color:#ff6600;">prepare what you're going to say in advance</span> and to make sure it's balanced, not overly positive or negative; a mix of both is best, not least because it enhances your credibility and your peer's trust that you're being candid. Be direct and specific about what you've seen and the consequences of your peer's actions. Of course, if you are being constructively critical — pointing out a peer's mistake or area for improvement — you've also got to offer a constructive suggestion or two.<br /><br />When you give directive feedback, <span style="color:#ff6600;">you want to make sure that what you've said is what has actually been heard and understood by your peer</span>. The easiest way to do this is to simply ask your peer to repeat back to you how she took what you said and what it means to her. Finally, it's almost always a good idea to conclude an offering of directive feedback with an expression of your interest in providing follow-up assistance, leaving the door open for future opportunities for you to help.<br /><br /><br /><strong><span style="color:#ff6600;">The Nondirective Approach — Asking Smart Questions<br /></span></strong>The essence of nondirective coaching is simply asking useful, probing questions. Many people fear change because it forces them into unknown territory, where things are unpredictable and unfamiliar. And yet there are predictable stages people go through when they undertake intentional change. In taking the non-directive approach, your goal is to help others to see and feel the need to create meaningful, sustainable change. Here are the stages and some of the key questions to ask in helping your peers to face the challenges associated with each:<br /><br /><strong><span style="color:#ff6600;">What's the problem?<br /></span></strong>The first step is identifying the need for change. This can be difficult, as many of us ignore information that disconfirms our current perceptions or threatens the status quo. Coaches can help identify blind spots — by encouraging self-reflection about things that aren't obvious to their peers. As a coach, basic questions to ask to increase awareness are:<br />-As you think about your goals, what's not working well in your life?<br />-What are the consequences of this issue for you and for the important people in your life?<br />-What is the source of the need to change — is it in you or is it external?<br /><br /><br /><strong><span style="color:#ff6600;">Why bother?<br /></span></strong>The next stage is about the belief that the need to change is urgent enough to take action. Because we naturally tend towards continuing the status quo, if doing something new doesn't feel urgent, it's not likely to occur. Coaches can help raise urgency by asking questions such as these:<br />-Looking ahead, what will happen if you don't change?<br />-What will happen if you do change?<br /><br /><br /><strong><span style="color:#ff6600;">What's your decision?<br /></span></strong>The decision to change is a crucial moment because it marks the point when your mind shifts and you begin to see a different future. It is also a fragile point in planned change processes, fraught with temptations to revert to the way things have always been and distractions away from the focused effort that's required to do something new and make it stick. However, coaches can help peers reach and move beyond this point by asking:<br />-What have you decided to do differently and why?<br />-What is the ideal outcome?<br />-What are your new goals?<br /><br /><br /><strong><span style="color:#ff6600;">What steps exactly?<br /></span></strong>What are the possible step-by-step actions the peer can take to make this decision real in his or her work and life? Good coaches ask peers to think aloud about what to do differently, how to overcome obstacles, and what skills or sources of support are needed. You can help your peer discover specific ideas for how to better accomplish goals by asking:<br />-What exactly will you do, and when will you do it?<br />-How will you measure progress?<br />-What stands in the way, and how will you overcome these barriers?<br />-How will you generate needed support?<br /><br /><br /><strong><span style="color:#ff6600;">Are you really in?<br /></span></strong>Generating sufficient commitment to follow through is one of the most challenging aspects of any change process. Because commitment wanes without a sense of urgency, coaches should continually test for this. Coaches can ask:<br />-What if this is harder than you think?<br />-What are the first steps — and the next steps — you will take?<br />-How will you maintain your sense of urgency?<br /><br /><br /><strong><span style="color:#ff6600;">How will you sustain it?<br /></span></strong>Even if a peer has made it through all of the prior stages, it is crucial that he or she receive reinforcement for the positive outcomes gained. Encouragement at every small step builds momentum, and coaches should provide frequent reinforcement and celebrate their peers' successes to bolster confidence and help peers avoid slippage. The key questions here are:<br />-What impact has your new behavior had on you and others?<br />-What accomplishments are you proud of achieving?<br />-Is there a smarter step that might help you build momentum?<br />-How can I (as your coach) reinforce your commitment to action?<br /><br /><br /><strong><span style="color:#ff6600;">Get in the Game!<br /></span></strong>Directive and non-directive peer coaching can make a real difference in helping people change. Try both methods and then find out what works and what doesn't by asking your peers to critique your actions. Like any other skill, practice as a peer coach — with follow-up assessment of what works and what doesn't, along with support from people (that is, your peers) who are dedicated to helping you become more adept at helping them — makes perfect. (end of HBR info)<br /><br /><br />This is some fantastic guidance on how we can most effectively help each other as we gather and work on our task in HTG of helping each other achieve business and personal growth. It is work – it requires thought – it takes a lot of effort – but the rewards are significant. We need to focus on being better peer coaches for each other! <span style="color:#ff6600;">Let’s get after it!</span>The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-90370416478770183122010-12-05T16:48:00.000-06:002010-12-05T16:48:00.695-06:00Cash MattersThis is the fourth blog post regarding the <a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a> and is a topic many of us as small business owners don’t deal with well at all. After 25 years in this business, it has become more apparent than ever that <span style="color:#ff6600;">access to cash</span> is a key to success. I hear and see so many small businesses strapped by a lack of cash resources. They may even be doing well from a sales perspective, but because of poor cash management they have totally limited their options and ultimately stymied their ability to grow. Cash is king and we must never forget that reality.<br /><br /><strong><span style="color:#ff6600;">A strong balance sheet goes a long way during tough times<br /></span></strong>One of the common mistakes I see owners make is to rob their companies of all the cash they accumulate as profits during the year. That assumes that they are generating a profit, but for any company to survive that has to be one of the outcomes of doing business. But removing all the cash leaves the company vulnerable in the event of tough economic conditions, or even a temporary downturn. That is particularly true if you don’t have a bank credit line in place. There are varying opinions on how much equity to leave in a business – but my advice is to be conservative and leave as much in as you possibly can. Now if you have to take all you earn just to survive each year – you really don’t have a business – just a job that is meeting your basic needs. A true business will generate cash and I suggest you leave as much as possible inside the company until you need it – for an M&A or tough times.<br /><br /><span style="color:#ff6600;"><strong>Risk is part of the equation<br /></strong></span>Spending cash on growing the business is risky. There are no guarantees from my experience. You can make some bets that are more likely to succeed than others, but there is an element of risk in every growth decision. So if you can’t afford to lose the cash you are spending – don’t do it. I have lost money when I thought it was a sure thing, and had success when I expected less than stellar results. If you can’t stomach the risk – don’t spend the cash. But you won’t grow if you don’t take calculated risk. It is part of the equation. And some people just don’t deal with it well at all. Know your risk tolerance, and that of your spouse, before you go too far.<br /><br /><strong><span style="color:#ff6600;">Profit is not bad – you are not taking advantage of your customer<br /></span></strong>I struggled with this reality for a very long time. My focus was on providing the maximum value as long as I didn’t lose too much money doing it. Profit was almost a bad word. Could I cut the price another point or two so they get a really good deal. Here is the reality – a failure in your business is not in the best interest of your customer. If you ask them if they prefer to save a few dollars and buy from you driving you out of business, or pay a little more to have a stable business partner, they will take the latter every time. No one wants to have to change IT providers because they saved a few bucks. Profit has to be part of the equation. In fact – you should start there – with the amount of profit dollars you want or need to clear and work backward to determine sales, margin and expense lines on your P&L to make sure you end up making money.<br /><br /><strong><span style="color:#ff6600;">Profit should not be a mistake<br /></span></strong>Too often we just take the leftovers when it comes to profit. It is more of a hope and prayer than a strategy and planned outcome. That is the wrong way to run your company. You need to plan for it, expect it, and make sure you achieve it. When you do it should be celebrated through rewarding your team with some of the bounty. Profit doesn’t happen by accident. It requires planning and focus to achieve it every year!<br /><br /><strong><span style="color:#ff6600;">Paying tax is a good thing<br /></span></strong>If you had told me 10 years ago I would write a blog with this sub heading I would have called you crazy. I ran my company for a long time with a goal of zero tax liability. Just break even so I didn’t have to pay the government any taxes. Now don’t get me wrong – I hate paying tax – but I have come to appreciate the fact that only profitable and growing companies are in a position to pay tax. And if you want to grow – continually producing a P&L with no profit is a limiting factor. Bankers are not crazy about lending money to non-profitable companies. There is no leverage to be had with zero as the result of a year’s work. We have to be wise in how we manage our income, but tax is not an evil thing. We need to make money which means we will pay taxes. That is just as reliable as the fact that we will all die someday.<br /> <br /><strong><span style="color:#ff6600;">Bankers are your friend<br /></span></strong>So many partners think of bankers as an adversarial relationship. I often hear the comment that “the bank won’t loan me any money when I need it”. That is exactly true. They are not looking for companies that are barely holding on by a thread and in need of a cash infusion. Banks loan money to companies that have a track record showing they will be able to pay them back. They aren’t looking for long shots or hopeful returns. You have to build a relationship and a track record if you want to borrow money for growth. Invest the time – build the relationship – give them access to your plans and numbers. They are critical for growth.<br /><br />Here are some other ideas around getting cash in order. <br />• Conserve cash – don’t spend it all<br />• Get your bank credit lines expanded<br />• Update your vendor and distributor credit lines<br />• Clean up your financial house<br />• Evaluate your staff and trim unnecessary<br />• Evaluate all expenses and make cost cuts<br />• Talk with your team so they understand why taking care of cash and profits matter to them<br />• Create profit sharing options to drive the team to join the chase to generate cash<br /><br /><span style="color:#ff6600;">Cash does matter greatly if you want to grow.</span> In fact, I will boldly say you won’t grow without it. Some are able to have some short term success without generating regular profits and cash – but it is unsustainable and won’t scale. The more you want to grow – the more cash you will need. And the sad reality is that many don’t learn that lesson until they need it for a deal or some other great opportunity and have to pass because they don’t have any. It isn’t rocket science. Cash matters – and it doesn’t come accidentally. <strong><span style="color:#ff6600;">Plan to generate cash and then manage it well</span></strong>. It is a critical growth factor – cash is truly king!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com0tag:blogger.com,1999:blog-8469922981891127724.post-38371734179102621002010-12-02T06:00:00.000-06:002010-12-02T06:00:10.512-06:00The Problem with Best PracticesHTG peer groups have been focused on best practice sharing since the first group was founded back in 2000. Those learning’s have helped numerous companies grow and become more successful in their markets. But over time we noticed that the value of best practice sharing seemed to diminish. Why? Ron Ashkenas wrote a great post on “<em><strong>Why Best Practices Are Hard to Practice</strong></em>” on Harvard Business Review online that explains some of the issues we found. Here are some excerpts from his excellent article:<br /><br />“It would be easy to say that processes and tools cannot be picked up and moved from one organization to another. After all, each organization is unique — with different markets, commercial forces, structures, histories, leadership, and cultures. But if there weren't any universals, the sharing and transferring of best practices would be a waste of time, and there would be little learning across companies (or even within companies). But in truth some firms are exceptionally good at "stealing shamelessly." (In HTG we call it SWIPE – steal with integrity and pride every day). For example, think of all the companies that have benefited from Toyota's production model.<br /><br />So why do some organizations succeed at utilizing processes and tools developed elsewhere while others fail? Here are two common pitfalls of applying best practices, and how to avoid them:<br /><br /><strong><span style="color:#ff6600;">Lack of adaptation</span></strong>: The first pitfall is the temptation to take on a process or tool without tailoring it to the new environment. Because companies are so different, it is rare that a practice developed in one place can be applied elsewhere without significant customization. This not only requires learning the tool or process, but truly understanding the principles behind it. Practice comprehension calls for hard work — far beyond making road trips or sending a few people for training.<br /><br /><span style="color:#ff6600;"><strong>Lack of adoption</strong></span>: The second pitfall is to utilize a borrowed process or tool without full leadership support and commitment, as though just having the tool itself will generate the desired results. A former client at GE called this "the difference between doing it and really doing it." Often the wrong people are tasked with driving the process.<br /><br />One of the characteristics of great companies is that they <strong><span style="color:#ff6600;">actively learn</span></strong> from others. But to be successful at doing this requires more than just identifying and borrowing best practices; it also requires adaptation to your culture and full adoption by your leadership. Without paying attention to these two steps, it is unlikely that best practices will actually be put into practice.”<br /><br />To make best practice sharing valuable – HTG members have to learn how to <strong><span style="color:#ff6600;">adapt them</span></strong> to their situation. Seldom do you receive a best practice from a company exactly like yours. There are differences in your market, staff, skills, strategy, focus, management and on it goes. You have to take it and make it your own.<br /><br />You also have to adopt it <strong><span style="color:#ff6600;">wholeheartedly</span></strong>. A best practice that is dumped on your staff to execute will become a failed practice. Ownership and executive management must drive best practice adoption by leading that charge. You can’t throw it over the fence and expect the right results. If you want it to work in your company, then you must own it until it does.<br /><br />There is still much value to the learning’s we can glean from sharing best practices with each other. But the reality is that <strong><span style="color:#ff6600;">unless we adapt and adopt – there is no impact at all</span></strong>. And that makes it a matter of hallucination!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com1tag:blogger.com,1999:blog-8469922981891127724.post-21951451850507097612010-11-28T04:00:00.001-06:002010-11-28T04:00:00.935-06:00Leadership MattersThis is the third blog post regarding the <strong><span style="color:#ff6600;"><a href="http://peerpower.blogspot.com/2010/11/10-things-i-accidentally-learned.html">10 Things I Accidentally Learned on the Path to Growth</a></span></strong> and is a topic many of us as small business owners take for granted. After 25 years in this business, it has become more apparent than ever that leadership is a key to success. As I work with small businesses both inside the IT channel and in the marketplace at large, leadership seems to be a missing link for many organizations today. There seems to be a tendency to believe that investments in tools and processes will make businesses successful. My experience says that just ain’t so.<br /><br />Leadership is required to have ongoing success. People don’t “just get it” by some sort of osmosis. They need, and quite frankly, want to be led. The problem with leadership is not so much the followers as it is those who are supposed to be the leaders. Owning a business is more than just filing the needed paperwork. It doesn’t make you a leader any more than just giving birth makes a woman a good mother. Leadership requires focus and hard work. It means we have to invest in ourselves – now that is a new concept for many – because we have to be able to grow if we want to lead our company.<br /><br /><strong><span style="color:#ff6600;">The Law of the Lid<br /></span></strong>John Maxwell talks about the “Law of the Lid” which unfortunately describes the place many small businesses are today. This law says that you can’t lead your company beyond your personal leadership level. The company can’t pass you up. You are the lid – and if you are not continually investing in yourself and growing in your leadership and management skills – your company will get stuck and not be able to continue moving forward. Often owners want to blame their staff for these periods of stagnation when they need to look in the mirror and realize the problem starts with themselves.<br /><br /><strong><span style="color:#ff6600;">Level 5 Leadership<br /></span></strong>One of the best descriptions of the way leadership growth occurs comes from the 5 levels of leadership. Most of us in IT began our companies as highly competent contributors – we were very good at what we did and decided to start a company. Problem is – that is level one leadership – and it doesn’t take a company very far. If we don’t invest in learning and growing our leadership skills we will remain leading company of ourselves and maybe one or two others. We can’t grow beyond that as we are the limiting factor. We must move up the leadership ladder and work toward becoming a level five leader. At that point we will have opened the doors to leading our company as far as we wish – leadership won’t be the issue – and we can grow and take our team toward that strategy and planning we have put in place.<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJJbQq_1cVJ4e_Ys-iHugCRAKbPOg_SxbN6EFG8eoKAIdd0KcGA3vLVnEqzUsJ6RkyEY6NMhyyaPazoKpt9p2m_3MfyECkGzFMjR65q5KPLFiXL4Z34GItgalcUPSd5loi0b5o-eXGS8G6/s1600/Level+5+leadership.JPG"><img style="WIDTH: 531px; HEIGHT: 344px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5542487182723143842" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJJbQq_1cVJ4e_Ys-iHugCRAKbPOg_SxbN6EFG8eoKAIdd0KcGA3vLVnEqzUsJ6RkyEY6NMhyyaPazoKpt9p2m_3MfyECkGzFMjR65q5KPLFiXL4Z34GItgalcUPSd5loi0b5o-eXGS8G6/s400/Level+5+leadership.JPG" /></a><br /><br /><strong><span style="color:#ff6600;">Discipline<br /></span></strong>Another aspect of leadership is that it always is focused on people. But beyond people, good-to-great organizations have three forms of discipline:<br />• Disciplined people – you don’t need hierarchy,<br />• Disciplined thought – you don’t need bureaucracy<br />• Disciplined action – you don’t need excessive controls<br />When you combine a culture of discipline with an ethic of entrepreneurship, it results in great performance. But this culture has to be caught, not just taught, and it requires leadership from the top. The culture of discipline will happen as your team observes what and how you live. As the owner, you set the tone and the culture. It is up to you to create the discipline your company needs to succeed. It comes through leadership.<br /><br /><span style="color:#ff6600;"><strong>A hard question<br /></strong></span>Verne Harnish wrote that A-Player execs read 24 books per year. How do you measure up with those facts which were gathered by Brad Smart, father of the Topgrading concept, who researched 6500 top executives? So what is the difference between the A-players and the C-players? The A-players were continuous learners, reading on average 24 books per year (12 fiction and 12 non-fiction). That is how we become better leaders. We have to be learners. It must be continual, focused and intentional as we build our leadership toolbox and skills. If we don’t, we really have to ask ourselves whether we belong on our own bus or not. As the research showed - those who don't read barely have an advantage over those who can't!! That is a sobering reality. We must dig in and learn.<br /><br /><strong><span style="color:#ff6600;">My story<br /></span></strong>I led for many years believing I had all the skill I needed to take us forward. I even bragged that I hadn’t read a book since high school – I managed to graduate college without reading any books at all – just love those Cliff notes and study aids. But we stalled and I was frustrated and then one day I looked in the mirror and realized that the problem was me. I had gone about as far as I could take us and realized it was time to wake up and become a leader. So I began reading and getting involved with peers and attending seminars and just learning all I could. I was the cap. Too often that is how small business goes. The owner just doesn’t make the needed investment in self and team to keep growing the business. Don’t make that mistake. You truly can’t lead your company past your own ability. Leadership matters – become a continual learner and take your company to new heights.The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com1tag:blogger.com,1999:blog-8469922981891127724.post-60880260771042177982010-11-24T06:07:00.000-06:002010-11-24T06:32:42.758-06:00Faith in the Workplace - A Guest Post<strong><span style="color:#ff6600;">At Networking Results, faith is as integral a part of the company as IT itself.<br /></span></strong><br />By Steve Moreau<br /><br />If your faith is genuine, and it helps guide your professional and personal decisions, how could you not introduce faith into this thing that consumes so much of our lives? Our entire management team is Christian and we make no apology for it. We believe that we have been entrusted with a company that provides the support for many employee families, customers, partners, and vendors, so it should be run in a way that will maximize success.<br /><br /><strong><span style="color:#ff6600;">Success is more than the bottom line</span></strong>, although that’s how we measure our success. But we also measure success based on the lives of our employees—both personal and professional. On the professional side, we want to provide opportunities for training and the ability to be in a position where they can shine, which manifests itself in job satisfaction. This is how we live out our faith in what we do.<br /><br />But <strong><span style="color:#ff6600;">we realize that there is more to a person than just his or her professional self</span></strong>, and from my experience, most everyone has some sort of spiritual belief, and we are not ashamed to have created an atmosphere in which it is safe to talk about it. When we bring in food, we take time and say a prayer before we eat, for example, and employees feel comfortable asking if we would remember them or someone they know in our prayers. In those instances we don’t then gather everyone and say a prayer, although there have been a few times in management meetings when we get word that someone has been in an accident, and we will immediately take some time and pray for a safe recovery.<br /><br />To us that’s extending our human compassion. We are working with individuals and in relationships, and in the end, even though we are a technology company, we’re more of a relationship company.<br /><br />We have no formal process, and we are not in people’s faces about spirituality. <strong><span style="color:#ff6600;">Our actions and the way we live our lives scream a whole lot louder than anything we could say</span></strong>. For us, faithfulness comes from living out what we believe and allowing other people to exercise their faith as well, without any pressure to do anything they are not comfortable with.<br /><br />There has not been a case when we have felt a need to restrain anyone in the company from talking about faith. What I do try to encourage, as I mentioned, is rather than just talking about it, let’s live it. Our actions will show what we believe. But if you are living it, you might as well have the option of talking about it as well, so we certainly don’t want to discourage that.<br /><br />Still, we are a regular bunch of people who have lots of good times together. But there are guiding principles we follow, and those tend to align with traditional Judeo-Christian precepts of integrity, justice, fairness, and stewardship, by which we mean looking out for what has been entrusted to us.<br /><br /><strong><span style="color:#ff6600;">Even from the owner’s standpoint, is this his business</span></strong>? Well, it is as far as ownership is concerned, but it has also been entrusted to him. There is a purpose in everything, and at this point in time, God has entrusted us with the employees in the company and our customers and partners, and we have to make sure we’re doing the right thing by all of them. We have to be accountable and compassionate. These are all straight out of the Bible.<br /><br />There is such a big concern with trying to be politically correct in this world that we lose some of the compassion of trying to be a good person. If I really believed what was in the Bible and yet was not able to offer compassion to others, then I would be pretty shallow. This has been a tough economy, with lots of people out of work, and our faith helps us deal with it. Our belief is that God knows much better than any of us and he’s going to see us through it.<br /><br />People find themselves in some difficult circumstances, with some very difficult challenges. <strong><span style="color:#ff6600;">Life is messy, but there is hope out there; there is hope that this isn’t all there is</span></strong>.<br /><br /><br /><br />Thanks to Steve Moreau for sharing this post. It really defines NetRes and many other companies in the small business field. Problem is, too many don't have the backbone to let their faith show. We hide things and want to "fit in" rather than be the light we are called to be. Kudo's to Jeff, Steve and their team in Texas for all they are doing to be salt and light!The Peer Guyhttp://www.blogger.com/profile/10213034957579706411noreply@blogger.com1