Lessons from the AFL Grand Final

October 2nd, 2010

A week ago we saw more than 120 minutes of gruelling football played between the Collingwood and St. Kilda AFL football teams. Throughout most of the game, St. Kilda trailed the Magpies and seemed to battle their way across the field just in an attempt to keep up.

However, their persistence and their determination not to give up paid off. Even though it looked like they were doomed to be beaten, saw the Saints climb back from being 24 points down at half time to finishing the game tied at 68/68.

The lesson is that, even in the face of adversity and against staggering odds, persistence and perseverance can pay off in the end. Psychologically, it was vital for the players in the St. Kilda team not to give in to negative emotions and thoughts of defeat before it had already happened in order for them to fight back to a positive outcome.

While these attributes are important in a team sport like football, they are absolutely crucial in the world of business. One of the primary reasons so many promising new businesses fail in their first three years of business is that the owners simply don’t continue to persist in the face of challenges and obstacles.

Yet, often, surmounting those very obstacles can be the key to reaching a level of success that waits on the other side.

In business, persistence and perseverance will help you to keep your eyes focused on your goals and your desired end results. Even though St. Kilda didn’t make it in the re-match, it was a great effort.

Posted in Management, Sales | Comments Off

Is networking all it’s cracked up to be?

September 28th, 2010

Have you noticed that lately everyone seems to be attending networking breakfasts, lunches, events?

If you are a small to medium business, networking is a powerful way to establish strategic relationships, find work and promote yourself at a very reasonable cost.

Here are a few statistics you might be interested in. A referral generates 80% more business then a cold call (and like most people you probably hate cold calling!). Networking produces approximately 70% of work for small businesses. Most people you meet have around 200 contacts that are potential referrals, so basically the most important thing to remember is it’s not who you know but who knows you!

Yet, many people are very uncomfortable marketing themselves, so here are a few tips.

You want to make a good impression because people buy people. Wear a name badge if you are at an event, always carry a business card, smile and show an active interest in the people you talk to. Dress appropriately – ‘perception is projection’ – so project the image you want people to see. Be yourself, authentic and sincere, but also polite and diplomatic.

Remember that the purpose is to build relationships, not make a sale. NEVER ask for a sale. And always follow up.

Networking can be an amazing marketing tool for any business. And luckily for those of us who are unsure or nervous, there are experts who can help you promote your business in one sentence, approach people with confidence and get others to approach you.

So what are you waiting for?

Posted in Marketing, Sales | 1 Comment »

Entrepreneurs: born or bred?

September 19th, 2010

What makes someone successful in business? Were they born to it or did they learn it?

For some entrepreneurs, such as Aimee Marks, the path to success has been through a university course. Despite getting the idea for her biodegradable tampon company, T.O.M Organic, at school, Marks decided a university course would develop her product and company in a more thorough manner with a secure network of mentors to support her.

“The course taught me the fundamentals of launching and growing a business, and helped me avoid mistakes,” she says. “But ultimately entrepreneurship is about passion. If you are not really driven by an idea, no course will turn you into an entrepreneur.”
And many would agree, there are countless stories of successful entrepreneurs who have turned a unique idea into a thriving business through personal dedication, without the benefit of a university course.

One such team are nephew and uncle, Sean Condon and Tom O’Dowd, who are cashing in on the current Power Band craze. Thought to improve balance, strength and stability, the band has no medical foundation but many are convinced of its bohemian effects providing an annual turnover of more than a million dollars.

Condon basically fell across the band during a paddleboard lesson in Bali, the instructor telling him of its benefits. Recognising potential he convinced his uncle to join him in buying the Australasian importing rights.

As with many entrepreneurs, Condon and O’Dowd treat their business as a job and work hard to promote the band. A carpenter by trade, O’Dowd does not profess to understand the reasons behind the power of the band but saw the potential and ran with it.

Perhaps the answer is that it depends on the entrepreneur.

Posted in Economy, Management, Marketing, Planning | Comments Off

Going Backward is Going Forward

September 14th, 2010

Technology in business is all very well, but chucking it at everything that moves is a bad idea. Possibly the worst case of this is something all of us have been frustrated by at some point in time: machines answering the telephone.

Funnily enough, if I go to the effort of calling a company on the telephone, that will always mean I want to speak to a human being who has the capacity to think independently in order to resolve my query or problem. The only possible instance of my being happy to hear an automated voice on the other end would be if I called the speaking clock. At all other times, I want to speak to a member of my own species.

Some, admittedly, aren’t that bright, but even they can at least understand the need to pass my call to someone of higher intelligence.

Machines that answer phones when a perfectly good human being is sitting sipping coffee alongside it are pointless. Plain old voice mail/answer phones usually mean you have to call back because your call will be ignored and faulty technology blamed.

And “Press 1 for this, and 2 for that” systems simply need blowing up.

Here’s how that baby goes: You pass through a couple of minutes of such nonsense (often up to five or six options) so that your call can supposedly be directed to the most appropriate person/department to deal with it. As soon as that person answers, you launch into a five minute frenzied rant to express your problem before the person who has been listening or more probably doing a crossword tells you that you’ve arrived at the wrong department, at which point you’re forced to listen to five minutes of elevator music before (hopefully but not always) the right person does answer.

So it is with great joy that I see Zurich Insurance has recently announced a wondrous blast back to the past: real-life human beings answering telephones in their claims department.

Moreover, humans who are happy to give you their full name and not quote some silly data protection rule that doesn’t exist so that they can remain anonymous and avoid anything they say wrong coming back to haunt them.

Posted in Customer Service, Management, Marketing | 1 Comment »

Supporting rural Australia. What this means for business.

September 11th, 2010

It seems that 17 long days after our most divisive election in history, Australians are still split over what it all means.  Many believe that a minority, sunshine loving government will provide a fairer, more accountable parliament.  Others, such as Sydney Morning Herald commentator, Anita Quigley dismiss the independents’ and their new found power with biting diatribe.

Now that all the excessive demands have been dealt with and a clear funding plan is on the table for everyone to see, perhaps all the players can work together for the best of Australia and ‘move forward.’

Rural Australia is facing destruction as farmers struggle to make ends meet and the disparity between education attainment in rural and urban areas grows wider every year according to the Bureau of Statistics.

Add to this mounting pressure on urban areas with an already bulging population increasing by the minute and maybe the plan to provide better services to rural areas will make them more attractive to new settlers and business.

Key to this is not just the $10 billion earmarked for education investment and health funds in the deal brokered to gain the independent’s support, but the National Broadband Network.  Provide incredible, high speed Internet to rural areas and perhaps this will be the incentive business needs to make the transition.

And where work goes, people will follow.

Posted in Economy, Management | 1 Comment »

Yes – Australia needs its connections!

September 6th, 2010

Australians are fantastic innovators. We’re the creators of the cervical cancer vaccine, bionic ear, electric drill and boomerang! But to maintain our lead in the world, an excellent broadband network is absolutely essential.

Finland was the first to recognize the importance of the Net, declaring into law the right of every citizen to broadband access. Now the US is following suit, considering a plan for free or very low-cost broadband connections for every American. So where is Australia in all this? Are we keeping pace?

According to, yep you got it, Labor statistics, Australia trails the world with the fifth most expensive network and is seventeenth in terms of take up with only 23.3% of people subscribing. Now that’s an interesting statistic, because if the Net is so important why are so few of us using it? Perhaps it is price, perhaps it is speed but it is definitely not age with many pensioners happily booking trips, making purchases and posting their bridge scores online.

The Internet is vital to the new digital economy. Not only does it allow scientists, economists, sports enthusiasts and all our amazing educators to share information with immediacy and relevance, it is depended on by millions of people everyday as a major form of communication.

Imagine any business thinking about operating without an Internet presence? How would anyone find them or know what they do? If you don’t have a business website you are simply not known. I wonder when was the last time anyone dusted off their Yellow Pages and actually looked up a number? Nope, I’m pretty sure all of you searched online.

It is now possible to work from a distance. Employees can interact effectively and efficiently without actually going to a fixed workplace. The cost cutting to businesses is phenomenal. But most of all, we must be able to communicate with speed to keep up with every latest development that spins by, only to be replaced with astonishing speed.

This is the essence of the Net and this is why Australia must support a world-class broadband network.

Disclaimer: My presentation “Ten Ways to Double Your Sales Using Technology” uses broadband.

Posted in Economy, Management, Marketing | 1 Comment »

The price of independence

September 5th, 2010

What was the point of the independents demanding to see how well both parties can balance their costings if they are only going to shake them up by adding more?

It’s no surprise that the Coalition has a funding ‘black hole’. Take a look at the independents’ demands and it’s likely that whoever forms a government will be left with their very own large black hole.

Julia Gillard has already caved in to Wilke’s demands regarding funding for the Hobart Hospital and gambling.

Bob Katter, with his old ‘new’ paradigm, wants taxpayers and consumers to bankroll farmers through protectionism and the rebuilding of tariff walls torn down in the 1980s. Even though most modern economists see protectionism as harmful to economic growth, Katter seems determined quite literally to return Australia to the days of Keating’s famous ‘Banana Republic’!

Rob Oakeshott and Tony Windsor are yet to add to the growing demands once they have decided who to ‘trust’. But it seems likely that one cost we can all agree on is a new broadband network in whatever form it finally takes.

What is your perception of these guys? As we know in business perception determines buying decisions and there’s always a next time.

Ahh … the price of independence!

Posted in Economy, Management | 2 Comments »

Harassment at work – an expensive lesson

September 3rd, 2010

In early August, when Kristy Fraser-Kirk launched her $37 million sexual harassment case against David Jones and former CEO Mark McInnes, companies across Australia were forced to sit up and take notice.

Immediately, the mud-slinging began: ‘She’s asking too much’, ‘It’s all a publicity stunt’, and so on, but without such a huge amount tabled, would this case have been just another sexual harassment story briefly noted then swept aside by the never-ending tide of breaking news?

The real issue here is that Fraser-Kirk claims the board knew that McInnes was a bully and sexual harasser but that they did nothing to protect her, thereby failing in their duty of care. And that is the crunch for many employees, both male and female, who find themselves in this situation but have no-one to turn to for support. If the perpetrator is high up, or actually part of the Human Resources Department, how can the person being bullied or harassed get their claims heard?

Peter Wilson, president of the Human Resources Institute, describes sexual harassment as ‘a cancer’ in Australian workplaces and has urged companies to employ independent agencies where harassed employees can go to frankly discuss their concerns. However, it doesn’t appear that big business agrees. Myer, Westpac, Telstra and Qantas have all stated that their internal policies are adequate for handling any employee claim.

Perhaps the rejection of an external sounding board, excuse the pun, is partly due to wanting to keep any such ‘dirty’ matters in house, or maybe it’s related to cost. But with the Fraser-Kirk lawsuit proceeding before the court, business is about to find out just how expensive ignoring an employee’s complaints really can be.

Makes a good case for Management Liability insurance. Whilst it won’t solve the problem – it might ease the pain.

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The Lost Art of Customer Service

June 23rd, 2010

In Stanley Kubrick’s 2001 A Space Odyssey, the nemesis of the movie was a computer called HAL. Its voice sounded exceptionally friendly and it made all the right noises and if it had possessed a face it would have been smiling inanely. Yet all the time it was trying to kill the humans it was meant to serve.

Call me cynical, maybe even a conspiracy theorist, but it seems that some companies have been able to replicate the essence of HAL and insert it into their “Customer Service Specialists”.

These people are not literally trying to kill you, of course, merely destroy your will to live whilst dealing with the company they represent. They speak in reassuring tones, nodding and smiling at everything you say, and then they hit you with their pre-programmed responses defined by the system within which they have been ordered to operate.

I think customers become annoyed because they believe the descriptions pinned to the lapels of these people. If you went into the bank with an enquiry and the counter clerk said to you: “Yes, you need to go and talk to the robot over there,” you would have little expectation of a favourable outcome because you would know the robot’s parameters were limited. Instead, you are actually informed that you should speak to the “customer service specialist”, and herein lies the misconception.

“Customer” – You

“Service” – Providing appropriate assistance

“Specialist” – Highly trained

Put all those together and you naturally believe that this person will be able to listen to your particular request or gripe and then use their knowledge and most importantly, their discretion, to tailor a personalised solution.

A human should be able to do this, but not when they are working within strictly imposed company guidelines. When you remove the option of discretion, you often also remove the entire concept of customer service and you effectively end up with a robot. You can almost see the confusion behind their smiling eyes.

We are not talking about complex customer requests here. The other day, I asked my bank (the Commonwealth) if they could split my personal credit card limit, and allot one half to a new business credit card.

Apparently this was impossible!

The only solution was that I would have to stand around and wait for someone to carry out the necessary paperwork to apply for a new card. And I mean stand around, as there were no chairs.

I asked why this person couldn’t just take all the details the bank already had about me, complete the form and send it to me for signing, but this data option was not pre-programmed into my CBA “customer service specialist”. I left!

Later when I called to offer feedback, I was informed that what I had asked could have been carried out, but that it wasn’t company policy. This person further admitted that it would have been within the realms of possibility to direct my backside towards a chair whilst I waited. Obviously, because robots do not have muscles that tire, they cannot grasp the human need to take the weight off.

In reality, to blame the individual “customer service specialist” is a little harsh. The real problem is with the management who do not allow the human factor to come into play with their customer-facing staff. The only genuine reason why this might be good business practice is if the people they are employing are not very bright and cannot be trusted to think for themselves lest they make a reckless decision that triggers a whole host of problems.

If this fear is preponderant, then they should pay higher wages to attract brighter employees. The payoff would be a much happier clientele, and increased revenue through an enhanced customer service reputation.

Fortunately, some companies do get the point. I have experienced quality customer service on a couple of occasions recently, where the specialist really deserved their title. Then again, all they had to do was listen to what was being said, and possess the freedom to act unilaterally to resolve the issue.

It is a sad reflection of the state of play, however, that when you have such a positive experience with customer service personnel, you’re left feeling that something strange has just happened.

Companies need to give their employees the opportunity to provide the best customer service where it matters – on the ground with the customer. They have to be given the go-ahead to become human again, and to stop behaving like robots.

PS The partly completed form arrived in the mail a couple of days after my “feedback” and after I had arranged a business card somewhere else!

Posted in Customer Service, Management, Marketing, Sales | 2 Comments »

Good References are Gold

May 23rd, 2010

When companies are deciding which firm can best represent their ideas, values and products, there must be a level of trust.  They must feel confident that you have done this type of work before, and that your customers have been happy and gained directly from your efforts.

There is no better marketing tool to prove your value than a customer reference.

Getting a Reference

Many business people think that a reference discussion begins after a deal is closed, you’ve completed the work and everyone is happy.  Actually, that is when the conversation ends.

The first time to talk to a customer about becoming a referee is when you start your selling process.  “I know I am the best partner for your growth and fully expect you to be so happy with my work that you will become one of our best referees.”  Each time you meet with the customer, talk about the reference process.  The client will be thrilled at all of the free publicity they will get and happy to promote your services if they think you did a good job.  By the time you have finished your work with the customer, asking them to be a reference will be an easy conversation.

Creating a Reference

Everyone expounds on the importance of customer references, but no tells you how to create them in a manner that will capture interest and attention.  The first tip is to keep them short.  Describe the customer in a brief sentence and succinctly state their problem. Immediately follow it with the solution you provided and the results that were achieved.  Each reference should have a quote.  The more specifics you can provide the better.  Make sure to obtain your customer’s permission to share their reference information.

Presenting a Reference

There are no shortage of ways and places where you can use a reference.  Use them in articles, speeches and press interviews. Send them to prospective customers.  Put them on your website.  Take them on sales calls.  Be prepared with phone numbers and e-mail addresses so the customers can talk to the referees directly.

References can be the difference in an economy where customers are savvy and slow to spend their limited resources.

Start talking to customers about becoming a referee in your very first conversation and present them in a clear, concise manner that will give prospective customers the information they need and the confidence that you will help them succeed.  As your references grow, so will your business.

(c) Michael Harrison 2010

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