About the Author:

Do you handle an upset with confrontation or with relationship building that gets results?

Last month, I registered for a two-day intensive coaching session. I was a bit surprised to receive neither thank you note nor recognition of my registration. Even more surprising: the details weren’t forthcoming. I became concerned because hotel and flight arrangements were necessary and the date was the beginning of a national holiday.

The situation grew worse. I called the office several times on several different days and explained that I would cancel my payment if I did not hear from anybody. Not only did I not hear from anyone, I was treated as an annoyance. The coaching for which I registered was not inexpensive. The coach himself receives praises wherever he goes, so I couldn’t understand why he would allow such poor customer service. I arranged to cancel payment.

Wondering if this gentleman knew what was happening back at the office, I wrote Brian, the coach, a factual and detailed email describing what took place. I advised poor customer service will sink a thriving company faster than almost any other criteria. For final measure, I added, “I’m writing this as a friend because I admire what you stand for and do not wish to see you hurt.”

Within minutes of receiving my email, Brian returned my call.

Brian executed his response perfectly:
1. He first apologized
2. Brain then shared, “Never employ family; you try to help but it becomes tricky.”
3. In gratitude that I held a helping hand rather than expressing 4 letter words, Brian told me he would be my mentor for the entire year!

Brian turned an almost lost prospect into a repeat and returning client, who has already begun communicating how terrific he is.  When you strive to help people turn lemons into lemonade you get what you wish for!

It becomes a win-win for all concerned and a very Smooth Sale!

I’ll admit: I don’t have too much managerial experience.  I am new to the entrepreneurial game; new even to the “real world” of working “real jobs” to pay the bills (I only graduated college a little over a year ago).  Yet sometimes it is appalling to me how little other people, specifically those in charge, seem to know about their own jobs.

The conventional wisdom among managers, from what I hear, is that you never discipline an employee in front of anyone else unless absolutely necessary.  What can become a simple corrective measure may turn into an ugly scene as people get defensive, fearing what the criticism may do to their reputation or to their pride.  The chances that the employee will acknowledge their mistake and learn from it are significantly diminished if they are required to do so publicly.  There’s just really no upside to it, but there is a large potential for a downside.

Consider a case study from my own experience.  I arrived to work on Wednesday and was immediately called into the sales office by the manager of the fitness club where I work one day a week (mostly to have a reason to get out of the house, as working from home can get rather lonely).  When I walked in I was immediately taken to task for a “snarky” email that I had sent earlier that day to the sales staff in response to our latest promotion.

On the one hand, I had to agree with him.  I probably shouldn’t have sent an email that jokingly criticized the corporate marketing program without offering a useful suggestion or two.  On the other hand, I took immediate offense to the fact that he brought this up in front of two other employees, both of whom took turns looking rather uncomfortable during the entire 15 minute conversation.   They had no business being there and they both knew it.  So why didn’t the manager, and why didn’t he consider it worth his time to walk over to his office and shut the door before talking to me?

The fact that I agreed with him about my comments being slightly inappropriate mattered much less than the fact that I was annoyed that he chose to talk about right then and there.  In the end, I decided not to walk out on the job only because, in general, he’s a good boss and there are a lot of other good people there that I like seeing there every week.  But it was a tough decision, and one that I wouldn’t have faced at all if the issue had been handled properly.

They need me working there about as much as I need the job (which is to say, not at all).  They have extra people that could fill the weekly shift I cover just as I have other sources of income to replace what I would lose from quitting.  But why rock the boat unnecessarily?

The whole situation was a quite illustrative example of how important even simple interactions can be in the business world — and one I won’t soon forget as I move up in it.

I was inspired to write a bit of a follow-up on my last post thanks to a comment that a friend left me about it.  Copied below is the most relevant portion:

It is also not to go unmentioned that billable time is a HUGE factor in motivation.  For what I do, I’m actually very good at doing it quickly and correctly the first time.  Clients do not pay more for this skill.  They pay for the hours you’ve logged doing it.  So procrastination pays off… for you and for your company.  It’s a very careful balance between I’m working, I’m “working,” and I’m not working.  For the most part, there really just isn’t an “I’m not working.”  I’m always “working” — and sometimes working.

He makes a very good point.  What is an employee’s motivation to be efficient if they won’t be rewarded for their efficiency?  Indeed, receiving less money for doing a job in a more timely fashion actually seems like a punishment to me.

In an office setting, when you finish your assignments early your reward is generally to waste time quietly reading web-comics until your boss catches up and assigns you more work.  You don’t get to go home early, or even do much besides sit at your desk and pretend to be working, so you still get credit for working the same number of hours and your pay stays the same.

When you work from home, things are different.  You can literally do anything you want after you’re finished with a project, so the motivation to be as efficient as possible is ever-present.  I have often told people that ask how working from home differs from working in an office that, “When you work in an office you learn to do less work in more time.  When you work from home you learn to do more work in less time.”

Therein lies the struggle.  You don’t want to shortchange yourself for doing ten hours of work in only three, but you don’t want to intentionally work slower because the whole world awaits.  Padding your timesheet extra hours that you didn’t work feels wrong, even if you think you deserve the compensation you are billing.

I have a couple recommendations to make on the subject, if you’re willing to listen.

• First and most obviously, it should be pointed out that hourly pay is simply not suited to certain types of jobs, especially jobs that vary greatly (in the time it takes one to accomplish them) with ability.  Employers: think hard before making an employee’s compensation based on time.
• If you find yourself in a situation where your employer refuses to change from an hourly structure, do what auto mechanics do.  They have a book with the average amount of time it should take to do each job.  That’s what they bill customers on — not on the actual time it takes for them to fix your particular car, which could be more or less (but evens out on average).  As a side note, this seems to be what my friend has settled on in his networking security job.
• Try to be paid per project.  This way you are guaranteed a fixed amount no matter how quickly (or slowly) you work; the motivation is there to hit the job hard so you can get back to real life.  The disadvantage with this, in my experience, is that employers seem to be more hesitant to pay lump sums for projects, so your work tends to dry up more quickly than it would if you were a regular hourly employee (or even a contractor).
• To mitigate the effects of “efficient employee syndrome” and the propensity for paid projects to dry up and leave you hurting for cash, go for salary.  To me, this is an optimal arrangement, as long as there is good dialogue between employer and employee about what a “fair” workload is.  Salary jobs are sometimes synonymous with overloaded schedules, which is fine if you like that sort of thing and the pay is good enough.

The bottom line is two-fold: incentives are important for getting quality work out of people, and the only way to discover which incentives matter, and to who, is to communicate.  Each employee is going to have a different set of “optimal working conditions.”  For an employer to discover these they need to be willing to talk with employees and contractors instead of doing things “the way they’ve always been done.”

I wrote last time about The Art of Self-Motivation. At the time, I hadn’t quite figured out what actually worked best for me. Now, after a solid month of trial and error (and a lot of time spent — a good deal of it wasted — before that), I have developed a system that seems to be working quite well.

The first step was to take some time to think carefully about my goals. I wrote out everything that I wanted to make happen in my life, both short and long term. These goals could be anything, big or small. I devoted about a full workday to thinking and writing about this. To make sure I would stay focused on these goals, I also wrote down what I was allowed to do and when I was allowed to do it.

Then I sorted them into four categories: short term personal goals (eating better and working out 2-3 times per week), short term business goals (becoming more efficient at accomplishing my daily workload and setting up a savings account), long term personal goals (managing my relationships), and long term business goals (starting my own business).

Once I had written all these down in a notebook and sorted them into their respective categories I typed them up and posted them on my desk above my monitor so that I would have to see them every day when I sit at my desk. I also wrote out a basic schedule to follow, since I found that having set times to work and play actually led to increased productivity and more consistent performance.

This worked for a little while, but since I work from home and only see my bosses on a very inconsistent basis, I decided I needed a system of accountability. So I developed a way to make myself accountable to the one person I dealt with each day no matter what: myself.

At the end of my workday I grade myself. I give myself a standard letter grade for both my business and my personal progress towards my goals based off my performance, and I write brief notes about why I earned these grades as well. This way I have a sort of “goal journal” that tracks my progress each day to look back on and learn from.

Each day I start out with a “B” and every good thing I do bumps me up 1/3rd of a letter grade, just as each negative bumps me down. So on a day that I do two good things (say, write a good blog post and edit a draft of a newspaper article) and one bad thing (sleep through my alarm in the morning) I earn a B+ for my business grade. If I ate well and exercised, then I get an A- for my personal grade.

I then write out a to-do list for the next day so that I’m not starting from scratch every morning and nothing slips through the cracks. Checking things off this list directly determines what grade I will give myself the next day, so I keep this realistic yet challenging. The whole process takes me about five extra minutes at the end of each workday.

So far, so good. I find that this system keeps me more on track than scrambling around each morning to figure out what needs to be done and then working until I think I am finished. And best of all? I find that I can work shorter hours while still getting more done when I keep my focus on working on certain projects at certain times, while still allowing for some amount of flexibility in both my work and personal life.

I’m sure that this system will continue to evolve over time, just as I’m sure it’s not a cookie-cutter solution for everyone, but for now I find that it is a very effective mechanism to keep me doing what I need to do to get me where I want to go.

About the Author:

While waiting to board an airplane, we noticed an older gentleman running to make it in time. Perspiration was running down his face and he was obviously stressed. Another passenger asked him, “What happened?”

While waiting to pass through security, there was a woman ahead of him. She was feeding formula to her infant while tending to her 3 year old at her feet. Without warning, a security guard yanked the bottle away from the infant. The baby began screaming hysterically, the woman became frantic and that set off the 3 year old.

All of the security guards in the area and their manager had to have a pow-wow to discuss what to do next. Meanwhile all of the passengers waiting behind the woman were merged into one very long line causing much distress among those concerned about missing their flights.

All of this could have been avoided if the one guard had, in a kind manner, asked the woman to step aside with her children and formula. She most likely was not feeding her baby poison in front of hundreds of people. While the guards have an important duty to fulfill, using reason and a touch of empathy to build relationships with passengers for continued harmony will go miles further than creating chaos as what transpired.

What are your policies? Are they consistent with the marketing image you are trying to convey? Are you encouraging repeat business, referrals and testimonials? Are you viewed as the expert in your field attracting new prospects who soon become your clients?

Your policies are a large part of your business development. When implemented correctly with your mindset is focused on logic and helping others, you will easily find the Smooth Sale!

About the Author:

While most restaurants are still struggling as our economy is trying to recover, we were completely taken aback this evening when we stopped to eat at a long-time favorite. The wait time to eat at Sushi Sam’s, San Mateo, CA was close to half an hour. The establishment was packed with faithful clients.

The owner periodically would assure us we would soon be seated. Recognizing the hour was late and we must be hungry, the sushi and miso soup arrived almost instantaneously while the more difficult to prepare item took a little longer. We eagerly ate the first installment. The waiters in our area checked in to make certain everyone was happy, thus building relationships with the clientele.

After dinner on our way out, we heard “Thank You” from the waiter, the Maitre D, and the owner. Three thank you’s for a very modest dinner.

I have stated many times the words “Thank You” are one of your best strategies to use. Prospects and clients want to know they are appreciated. It is the sure fire technique that serves business development. Our experience walking out this evening hearing three thank you’s made us feel as if we are very important patrons. Given the quality of the food and the incredible service, you can bet we will return the next time an opportunity is presented.

What are you doing to encourage repeat business, referrals and testimonials? Is thank you a part of the strategy? When you work with this mindset in place, you too will enjoy the Smooth Sale!

–WV partner, Chris Yeh.

What are you doing to quickly make decisions at your start-up?

Are you going down enough alleys to even determine if they are dead-ends?

About the Author:

Efficiency is a boring subject, but in light of year end and the New Year upon us, it’s important to consider. This will allow you to find more time in your day to focus on your bigger projects.

Tips worth considering:
1. Delete out-dated computer files.
2. Shred manual files no longer needed.
3. Go through your calendar(s), and check off everyone with whom you were to follow-up; if you “don’t feel like it”, send a greeting card!
4. Clean up your email boxes: in, sent, trash.
5. Vow that for in-person appointments you will schedule locales near each other to be efficient with time vs. repeatedly driving across town.
6. Schedule calls and online appointments on particular days to establish a routine; however, flexibility for emergencies is key.
7. Writing a book? Schedule either a set amount of time or pages to be written for each day.
8. Establish your next day schedule the night before; list major tasks to be completed.
9. Use a combined database and calendar to keep on top of follow-up .
10. Create a to-do e-mail mailbox, and never lose track again!
11. Review your customer service policies; check for consistency and that they are reasonable.
12. Build relationships with everyone you meet.
13. Organize your desk; if you need, help hire it out!

Some of these tips may sound like New Year resolutions, but those fade by mid-January. Instead, change your mindset to making these strategies permanent.

Your efficiency will translate to expert leadership and marketing-communication skills attracting new and larger audiences to your business. Prospects will convert more easily to clients and business development will appear to be on auto pilot. You will be closing more sales.

I hope you find these tips helpful and wish you a very Smooth Sale!

Jake Stein is a co-founder of RJMetrics.  RJMetrics offers hosted business intelligence dashboards and database analytics to companies that operate online and facilitates the real time monitoring and reporting of business data to investors, managers, and advisers.

RJMetrics was described by Jake as :

RJMetrics is a securely hosted business analytics tool for database-driven sites. After profiling thousands of potential investments during our time in venture capital, a trend became apparent: e-businesses had mountains of untapped data in their back-end databases, but managers were unable to produce deep analyzes, keep them current, or use them in business decisions. Based on this insight, we founded RJMetrics to make business intelligence solutions accessible to any company that operates online.

Our QA with Jake about RJMetrics:

Q:  How often have you had to turn down VC overtures?
A:  We’ve turned down overtures from five different investors.  Of course, there’s no way to know if they would have panned out into actual investments if we had pursued them,  but I think at least some of them would have. We like everyone we’ve dealt with, and we know several of them from our prior jobs in venture capital. They would certainly be on the short list if we do take funding.

Q: What is the biggest sacrifice you have had to make having gone the bootstrapping route?
A: Our biggest sacrifice has been narrowing the scope of the problem we address (helping web businesses monitor and analyze the data in their back-end databases). We have a ton of ideas about improvements, features, and ancillary products that we have not rolled out, but I think that is a good thing.

If we had a bunch of cash on our balance sheet and hired a lot of people, it would be tempting to do a lot of things at once. As a resource-constrained company, we have to carefully prioritize everything we do, and postpone or nix anything that will not result in a dramatic improvement.  We are successful if we do a small number of things extremely well, not if we do a decent job at a lot of different things.

Q:  Do you ever see yourself taking a round of funding?  If so, what would be the driver to do that?
A:  I’d say the chances are 50/50 we take funding.  There may come a time when the capital, advice, connections, and resources that a venture firm brings would outweigh what we would have to give up in independence and equity value.  I know that’s not a particularly specific answer, but we don’t have some plan like “When we get to five million dollars in sales, then we’ll get funding to take it to twenty million dollars in sales”.

We have gotten plenty of business so far through referrals and free advertising from some of our popular blog posts and a business intelligence rap video (really), but we may look to augment that with traditional advertising that we fund through an investment round.

Q:  What is the biggest thing you are missing as you bootstrap without the assistance of a VC?
A:  My honest answer is money. The politically correct answer would probably be that we’re missing out on advice, connections, or something like that, but I don’t think we would make significant changes to the business if we took funding today. It would be very nice, however, to get a little bit closer to the salaries we were making when we worked in finance.  We’re focused on maximizing for the long term though, so we’re trading off a little now for (hopefully) a lot down the road.

As you know, we are strong believers in the fact that customer support is the key to growing any company.  Combine that with the fact that Twitter, Facebook, and other social media platforms are dominating the landscape completely, and we thought it would be important to look at some successful start-ups who are solving customer issues with the help of these tools.

This week you will be exposed to some great companies and their special ways of interacting with their customers using these tools.