Merry Christmas, Happy Hanukkah, whatever warms your heart and demonstrates the joy of man and our hope for the future - I wish it for you.

Somehow, Christmas Eve has arrived (again) without me taking the time to relax and appreciate all that it means. With everything that is evolving with business and the economy, days have become a bit of a blur for me. This year (more than ever) new contracts, new and existing projects, Christmas cards, shopping, running from one party to another, clients, family, friends - these have all appeared as items on my task list. Time for me to step back and take a breath, put on some Christmas music and reflect on the true joy of this season and the blessings that are my family and friends.

So, Feliz Navidad my friends. May the true joy of this season fuel the hope and build the love that sustains us and makes us whole.

Ken

Today’s post is a bit long but it’s an overview of the strategy I feel is crucial for businesses in this economic correction. I don’t view these 5 tactics as a cafeteria menu of options but rather a required battle plan in the overall strategy. Your goals should be easy to articulate - survive and be ready for when the correction is over. Over the next couple weeks, I will expand on a few of these in greater detail.

1. Focus on your core competencies, period - Right now, you and your team need to be doing what you know best to make your company the most money (manifested as cash flow). This is not the time to be distracted by anything that keeps you from that goal. As a business owner or manager, look at what you spend parts of your day on that are NOT directly making you money. Do something to push those tasks or issues off your plate. If you get tied up in the mechanics of trying to generate payroll, manage email/computers/phones, write financial/sales reports, or deal with a myriad of other headaches, look at outsourcing it.

Outsourcing doesn’t have to mean going offshore. There are hundreds of thousands of people and companies right down the street that you can hire to manage your non-core competency distractions at a very reasonable rate. Heck, that’s what I do every day for clients. You get an expert at whatever function you outsourced at a consistent, reasonable cost. More importantly, you (and your team) get to focus all your energy on driving your business.

2. Reconnect with every customer you did business with last year - It’s generally accepted that the cost of getting new customers to the cost of keeping customers you already have is a 5-1 ratio. This is a powerful business multiplier that can’t be ignored. Now is the time to redouble your efforts to build, rebuild, or improve your relationships with your customers. Of course, for some of your customers, it will always be about getting the best price regardless of the relationship. If you can offer that, great! If not, it is the solid relationships you nurture now that will drive your company later.

Unfortunately, for the companies out there that don’t currently have or maintain good relationships with their customers, it’s probably too late. Companies that offer mediocre or poor customer service are usually the first ones cut in a correction. All you can do is change your focus now to begin building for the future.

3. Be obsessive about your operational data - I am never surprised when I talk with clients and they say they really don’t have a grasp on their operational data. That data for any business is a constantly moving target that needs to be managed with good organizational process. Prospects, customers, inventory, what sells, what it costs to make a sale, even receivables and payables - these are the key data points that can crush a business if they are not properly managed.

When I ask a client “what’s your best seller (or best customer)?” they can usually tell me. But when I ask them “what does it cost to prospect, nurture and close the sale, not the margin on the item (or service) but on the sales process?” they have a hard time answering. When we break it down, we often find that the effort to get the sale exceeds the margin. Fix the process, the margin, or product. Not your core competency? Outsource it.

4. Communicate your ideas and plans with your staff and key (strategic) customers - I have seen, time and time again, that rumors are always much worse than reality. Everybody is worried and a little freaked out right now. Your staff is concerned about their jobs; your customers are concerned about their business (and trying to do business with the right companies); your suppliers are concerned about keeping your business and getting paid.

I am always flabbergasted by companies that don’t communicate with their employees and then are surprised with the outcome, complaining that turnover is so high or their staff isn’t motivated or loyal. Wake up people! You can’t run a business in a vacuum, if you got lucky enough to hire quality people, involve them!

5. Don’t scrimp on Marketing, be selective but go at it as hard as you can - It is an unfortunate statistic that when faced with a downturn (or correction), many businesses cut their Marketing budget first. This is a great article about Marketing in a Downturn that says it better than I could. The only thing I would add to this article is to leverage a good business process that allows you to QUANTIFY expenditures and results.

How about creating a customer referral program? You may be surprised at how many of your customers know other companies that could use your services or products. Reward them for bringing you business; you already reward your staff - don’t you? If you are taking good care of your customers, this can be an easy Marketing win and a profitable source of new customers.

Batten down the hatches, circle the wagons, focus! Are the tactics and overall strategy a bit overwhelming? Let me help you focus on your core competencies. Contact me at info@KenFarmerConsulting.com.

One of my favorite examples is Best Buy. Shop online, buy the item online, choose to pick it up in a store and it’s ready for you when you get there. I even had to return something I purchased that way once - and got an email from customer service about it while I was still in the store. Sure, it improves their operational efficiencies but as the consumer, it translates into better customer service and keeps me coming back.

Another, smaller, example is my local Carlsbad library. From their website, I can see if a book I want is on the shelf, reserve it and then go pick it up at the branch I choose. They use RFID to speed the checkout process at one of several self-serve kiosks and send me an email a couple days before books are due. Multiple due dates? No problem as each book is tracked separately and you know exactly when each is due. I can log into their website and see what I have checked out, when it is due and even extend the due date if I need to. Improved operations, more productive staff and volunteers, and a great customer service experience.

You don’t have to be a big company with millions of dollars to spend to make your technology work for you and your customers. With today’s economic challenges, every business needs to improve their bottom line through productivity increases and better customer service. A Customer Relationship Management program (such as Microsoft Dynamics CRM) allows you to better track operational data that can help you improve not only your customer experience but your bottom line as well.

A recent Dynamics CRM project of mine entailed using automated workflow to identify those people most likely to purchase additional products and services, connect with them automatically, track the purchase and delivery process, and then survey the customer at the end of the cycle. The end result was an increase in sales - using fewer operational resources and improving overall margins.

Another project utilized the customization and query features of CRM to assist the HR team in tracking employee industry certifications and renewal dates - sending an automated email to each team member who had a certification expiring in the next 60 days.

I love it when a plan comes together!

These are inexpensive ways to allow a business of any size to leverage technology and improve operational efficiencies. A company can utilize Dynamics CRM through a hosted version - paying only for the licenses you need on a monthly basis. As you grow, add more licenses. As you have to tighten costs, reduce the number.

Contact me and let me help you leverage today’s technology to grow your business!

Be thankful that you don’t already have everything you desire.
If you did, what would there be to look forward to?
Be thankful when you don’t know everything,
for it gives you the opportunity to learn.
Be thankful for the difficult times.
During those times you grow.
Be thankful for your limitations,
because they give you opportunities for improvement.
Be thankful for each new challenge
because it will build your strength and character.
Be thankful for your mistakes.
They will teach you valuable lessons.
Be thankful when you’re tired and weary,
because it means you’ve made a difference.

Be thankful everyday.

Happy Thanksgiving everyone!

My friends are peripherally aware of this problem; my wife is the one who has to live with it the most. She’s good about humoring me at the right times, saying the right things, while not really understanding the depth of my pain. The fact that she could have all my cast off - once cool and new - gadgets doesn’t even phase her.

This latest outbreak is being caused by the imminent - NOT SOON ENOUGH - release of the Blackberry Storm. The first touch screen Blackberry chock full of features that allow it to compete with the iPhone - but with the business apps and enterprise features the iPhone lacks. I already pre-ordered one from Best Buy and the internet rumors say it will be available next week. Next week, not today. Arrgh! Deeeep breaaath…

I have often wondered why more employers don’t use this gadget affliction to motivate their people. I am not the only one so possessed. An employer could structure a “gadget allowance” into comp plans and probably increase retention rates dramatically. I know it would have kept me in place longer at several employers. It was always a struggle for me to have outdated technology (gadgets) while my clients had all the new cool stuff.

I know I’m not alone in this. I’ve discussed this with colleagues and friends over the years and they all agree. Employee compensation is not always about the salary and bonus. It’s often the additional benefits that motivate people the most. Car allowance, reasonable mileage reimbursement, golf outings, travel perks, gadget allowance - what do you think?

Gotta’ go - If you need me, I’ll be surfing the web for the latest Storm information while standing in line at Best Buy.

   “Bad officials are elected by good citizens who do not vote.” - George Jean Nathan

Welcome back and thanks for voting. This has been an amazing election. Not just because of the obvious reasons - race, gender, age, or fresh start - but also because of the attention we as a nation are paying to it. Whether you are liberal or conservative, there was plenty to keep everyone focused and actually studying the issues and candidates. I have been impressed with the number of people that have been discussing the races. They are reading, talking and generally listening to what is being said. The bigger challenge has been sifting through the chaff that is being tossed around.

   “The ignorance of one voter in a democracy impairs the security of all.” - John F. Kennedy

There is so much information available on so many issues and candidates that it has been hard trying to decide what is true and what is important. As much as this election has given me a glimmer of hope again in our process (it’s tough trying to be an idealist in a cynical, news cycle world), I grow weary, wary and upset with all the misinformation tossed around.

   “A low voter turnout is an indication of fewer people going to the polls.” - Dan Quayle

Thank you for voting. Thank you for caring. Thank you for believing in the possibility of a better world.

   “I can see Russia from my house.” - Tina Fey or was it actually Sarah Palin…

Oh, and thanks for taking a step back with me once in a while and laughing about such a serious subject.

October 21st post….

Microsoft is rolling out their new FREE add-ons to Dynamics CRM 4.0 this week that will extend functionality in a couple specific areas. Read the full release statement here…

CRM Accelerators are a range of free-of-charge add-on solutions which are being developed for Microsoft Dynamics CRM 4.0 customers and partners. Each accelerator will showcase how the Microsoft Dynamics CRM 4.0 platform can be configured and extended to broaden marketing, sales and service capabilities. CRM accelerators provide additional functionality for deployments of Microsoft Dynamics CRM 4.0. Microsoft Dynamics CRM customers are encouraged to further configure these accelerators to meet their specific business needs.

Through accelerators, customers and partners benefit from new functionality on a more frequent basis, and they can be deployed to their environment quickly and easily. Delivery of these accelerators will begin now.

The list of accelerators is as follows:

• Analytics
• eService
• Event Management
• Enterprise Search
• Sales Methodologies
• Extended Sales Forecasting
• CRM Notifications
• Business Productivity

From these, I think the one I’ll be installing on every implementation is the Analytics Accelerator. You can see from the slide shown below some of the included components and views. While the other accelerators look great - especially within certain verticals - everyone is looking for pre-built dashboard style information.

If you currently use Dynamics CRM 4 and are working with a Microsoft Partner now, you need to talk to them about these FREE add-ins to CRM. If you are not working with a partner and would like help deploying these, please contact us at info@KenFarmerConsulting.com and we will be happy to assist.

For some reason, this visit made us realize more than ever that we need to be better tourists in our own area. We always say, “We need to walk on the beach more” or “why don’t we come here more often” when we visit local spots with our visitors. This time it seemed to be more of a real desire, not just something to say.

Balboa Park and its world-class museums, Coronado and the incomparable Hotel Del, the world famous San Diego Zoo (we’re members for crying out loud), the glider port at Torrey Pines, that little Mexican restaurant we love on the coast highway in Leucadia, our beautiful Carlsbad beaches - all ignored and underappreciated until someone visits.

We love living here in Carlsbad - we made a conscious decision to stay when many of our friends moved elsewhere years ago. In this economy we all need to refocus our thinking and make an effort to spend more locally. What better way than to be a local tourist?

Everyone is evaluating what they spend and why. We can decide to spend locally - when we decide to spend. So, we may not get back to Italy this year. We may not get to Spain next year. We’ll just be local tourists and enjoy reminding ourselves why we chose to live here in the first place.

Even if you aren’t personally wrestling with those specific financial issues, everyone will be impacted. From CEOs to Small Business Owners to pipe fitters to pool cleaners to consultants, we will all feel the effects of the financial morass that we are digging out of. The question business owners are asking themselves all across the country (across the world) is “what do I do now?” 

Smarter people than me are providing advice daily in this crazy mixed up world we have inherited\created. All I can do is look at my situation and that of my friends, family, and clients and base my decisions on that. Can I predict what the impact of bail outs, credit swaps, or the selling of derivatives might be on the global economy? Yea, sure I can - I’m a rocket scientist in my spare time.  

“I can calculate the movement of the stars, but not the madness of men.” - Sir Isaac Newton

 What I can do is not hide under a rock. I can remember that my investments are supposed to be long term and the long term outlook for them is still good. I can be thankful that my wife and I don’t need the money from our house and portfolio right now. I can remind myself that I am working and providing value to my clients. And I can help those around me find level ground - and the time to take a breath.

Lift your head up, take a deep breath and remember - you have employees and customers that need you. They have some of the same questions and need your guidance. Protect your business, do what needs to be done, and prepare for the ride back up when the economy begins to recovery.

“I’d like to use one of my lifelines Katie…”  And don’t forget to laugh once in a while!

“…hardly anyone in my age bracket (18 to 30) has or uses a landline. What does that say about the accuracy of these phone polls?”

Of course, as too often happens, the posters went on and began arguing how the poll doesn’t reflect this or that and quickly degenerated into a flame war but it aroused my curiosity. I know several people that no longer use a landline and not all of them are members of that elusive 18 to 30 demographic.

Since this thread started with statistics here are some from a recent CDC study:

• More than 32 million American adults, about 16 percent or nearly one out of every six homes, have now ditched their landlines for cell phones, up from 5 percent in 2004, according to a recent study from the Centers for Disease Control (CDC). Article
• The trend is strongest among young adults: 34.5% of people 25-29 years old lived in households with only wireless phones. For those 30-44, the rate drops to 15.5%. It’s 2.2% for those 65 and over.

This trend strikes me as another tipping point in the way our customers and market are changing. As recently as 10 years ago, if you wanted to market to people you mailed (snail mail) them something, called them at home or at work, advertised in the paper, or put up a billboard. The information you collected on people was focused and not complicated.

Today we have the internet, email, SMS, social networking sites, blogs, do not call lists, spam filters, privacy rules and hundreds of new ways (and rules as to how) we interact with our customers and prospects. These touch points and rules all fundamentally change the way we have to capture data, store data, and interact with it.

How are you handling this change within your business? Have you adjusted your business process to accommodate these challenges? Or are you and your team still working from outdated information stored in multiple spreadsheets, applications, and restaurant napkins?