Reality Check: For some things, you've still got to be there

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One of the great benefits of social media for me is the way that it has allowed me to extend my networks. I have developed working relationships with people several time zones and thousands of miles away. We rountinely exchange information and collaborate. All without the need to travel or be in the same physical space.

And I spend a lot of time exploring the potential for social media to extend my capabilities even further.

However, Jack and Suzy Welch’s column in the April 16 issue of Business Week (registration required) provided me with a reminder that remote work has a very real limitation in companies and organizations. The Welch’s argue:

“…what you can’t do very well from home is lead. To lead, it’s no good blowing into town for important meetings and showing up at retreats. You have to muddle in the muck in between.”

Out of the officeAs the CEO of a PR and design firm with offices in two cities, I am regularly confronted with a fundamental challenge. How do I manage to stay connected enough with my employees that I can understand them and their state of mind and also convey a sense of the organization’s overall vision, direction and purpose?

At one time, I used to try to make efficient use of my time by scheduling back to back meetings during my visit to the office in the other city. I’d arrive in the morning and have meetings scheduled right until the end of my trip. Lots of material covered. Lots of decisions.

And how did that work out? Some people came to dread my visits to the office. They knew that they’d be dragged away from the things that they wanted to get done in order to participate in one or more meetings with me. They also knew that these meetings would yield even more work as we decided on new initiatives and assigned responsibilities.

Eventually, I realized that while I was physically in the office, I was missing out on what was really going on with the people in the office. The water cooler chatter. The easy going banter about things that people cared about outside of the office. The things that would give me insight into the people I work with and what’s really important to them in their lives. (Remember, most of us work to live. Only a few really live to work.)

So, I changed my routine. I started to spend two days in the office on every trip. I scheduled fewer and shorter meetings. The rest of the time, I set myself up in a spare office and just spent my time working there – just like I would work in my own office in my home city.

Leading by being thereThen I watched my relationship with people begin to change. They saw that I was sitting there with an open door and they started to drop by to chat. Sometimes, it is just small talk or gossip. Other times, they raise work issues that are important to them. They pick the times that are best for them to raise issues with me. Things that I used to schedule in formal meetings began to move off my agenda and instead are raised in one to one meetings on the initiative of the people involved.

On top of this, I had the chance to join the brown bag boardroom lunches. To be part of the general discussion. And to just participate as one of many. A great leveller. A great way to learn more about people.

And that leaves me free to pick and choose the times when it is appropriate to convey information about the vision, direction and priorities that I see for the business. In the context of discussions. When they will make a contribution to moving things forward. With a greater likelihood that people who are already talking about something of importance to them will give me honest feedback. Honest feedback. The oxygen of intelligent decision-making.

So, yes, I try to get a great deal done via social software. But Jack and Suzy Welch are right when they say, “… for anyone who has dreams of leadership in any meaningful way, telecommuting can get you only so far. The road to the top is paved with being there.”

For goodness sake, people. Airport lounges are public places!

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These walls aren't sound proofI’m sitting in the cubicle farm in the Air Canada lounge at Pearson waiting for my flight. All around me, people are conducting business on the telephone. Beside me a woman is talking about a BtoB customer and problems with the account. Three feet across the screen, a lawyer is talking to a client about a potential deal. And at the cubicle behind me, an executive is talking about terminating an employee.

They are all talking loudly enough for me to hear every word (even though I’d prefer not to). And they are all USING NAMES. I kid you not.

What is it about looking at a four foot high screen in front of you that makes someone think that you are in a private place?

Use discretion, people. Use some judgment please!

Creating a positive culture and a winning team

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I’m a big fan of David Maister’s approach to creating a successful professional services company. Effective leadership is an essential ingredient to his approach.

Real leadership is earned, not bestowed as an byproduct of one’s position in an organization. Many managers have discovered that the technical skills that have propelled them into management are not the skills they need to be successful as leaders.  People vote with their feet every day, especially in an organization that is staffed by knowledge workers with highly valuable expertise and skills. If these people don’t have confidence in the leadership of the company they work at, if they don’t trust them or like them, they can easily take their talent elsewhere.

That’s why today is a happy day for me. Today I was able to recognize one of those true leaders people choose to follow, who inspires loyalty and encourages people to excel.

As I try to walk the talk myself, I thought I’d share with you the email that I sent out earlier today announcing the promotion of one of my colleagues, Keelan Green. I hope that it conveys the right signals to the people with whom I work about what is important and what is valued in our organization.

You’ve probably noticed that the Ottawa office has been on a real roll during the past year. We’ve added some great new consultants (you know who you are!!!), done great work for clients who not only continued to place their trust in us but also provided positive referrals to other clients, and won additional business through straight-ahead competitions. Equally important, the sound of laughter and the sight of smiles is a regular part of the work day.

Every person working in Ottawa has made a real contribution to this success. And I thank you for this.

Today, I want to recognize the particular contribution of Keelan Green. Keelan has been our leader in many ways for the past two years. He leads us literally in being the first person in the office most days. He leads us in showing how to use our work time effectively to get results for clients. As a colleague, I know that Keelan can always be counted on to pitch in when I or someone else needs help. And when the chips are down, he won’t give up until we’ve achieved what we set out to do.

Keelan can also be counted on to show us how to maintain a good balance in our lives (because it’s not only about work.) He taught us that summer Thursdays are for golf. And beware the person who tries to cut into that time!

But most important, we know that Keelan always cares. He cares about our company, the people who work here and making sure that together we are successful. Because if we are successful we can all realize our dreams.

So, I am absolutely delighted to recognize Keelan’s achievements and place in our company by promoting him to General Manager of our Ottawa office. (sound of applause, whistling, foot stomping)

This is not an end, but the beginning of an even more exciting year that lies ahead. In the coming days, Keelan will be working with both the Thornley Fallis Communications and 76design teams to lay out plans to continue to excel in each of our practice areas while also exploring the potential synergies that can be realized by combining our different areas of expertise. I know that he’ll be talking to each of us about the opportunities for us individually to grow and contribute to our collective success.

Congratulations Keelan! It’s your time.

* Thanks to Hugh McLeod for the great drawing. Always a source of inspiration.

When retaining an assignment can be a portent of eventual failure

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It’s the end of the year and our company is renewing our relationships with clients for the coming year. As we do this, I realize that one of the most worrisome things for me to hear from an account manager is, “Things are really great. The client has signed up for all the same programs in the coming year as they had last year.”

Lambs to the slaughterAt first blush, this may sound like success, like a strong and healthy client relationship that has been extended for another year. But, when I hear this, the question I ask myself is, “Why are we dong the same thing as we did last year? Can’t we improve on last year’s program? Did we learn from last year and increase our knowledge, skills and value?”

And that’s the problem. If we retain clients to repeat programs, that’s a warning that we may not be advancing our own skills and knowledge or bringing the most creative, effective approach to our client’s challenges. And if that’s the case, it’s just a matter of time until the client starts to feel that our relationship is growing stale and begins to contemplate looking for fresh advice.

How do you keep relationships fresh and build on your past successes to do new and innovative things? Do you have practices, disciplines or exercises that you use to help you do this?

Build a great career on what you are good at and like to do

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In the past few weeks, I’ve conducted career planning sessions with several of the consultants who work with me. We structure these reviews in two parts: a look back at what worked well and what didn’t work as well during the past year followed by goal setting for the coming year. We ask the employees to take the lead in completing a questionnaire that focuses our discussion around these topics. This requires them to take the time to think about what’s really going on and what they really want.

As the leader of a team of highly talented, creative people, I know that I can count on them coming to work each day only if they truly enjoy what they are doing, and if they feel appreciated by their colleagues and challenged by the work. (For people who are good in consulting, money is never the issue.)

We therefore focus on putting together a plan for each person that will help her to grow and give her a sense of accomplishment. Over time, we have learned that this can best be done by following two related guidelines.

First, build next year’s objectives around the employee’s demonstrated strengths. In school, our teachers drilled us on the subjects on which we were weakest. And we hated it.

But the working world doesn’t have to be like school was. If an employee is not good at something, we don’t have to force them to improve on that (unless they really want to.) We can always find other employees who will be good at these things. Instead, we can channel each employee to focus on and further develop those skills and areas of expertise in which she has already demonstrated strength.

Second, we add another dimension. Each employee should like the things that she is doing. We’ve all seen workers who do things that they are really good at – and that they absolutely hate doing. Again, there’s no need for this to happen in a well managed services firm. With foresight and discipline, people should be able to follow their passions. As management expert (and Thornley Fallis client) David Maister says, “Success comes from doing what you enjoy. If you don’t enjoy it, how could it be called success?”

If I do my job well, I will hire people who have both strengths and passions that we can match to our business opportunities. And if I do this, I will be surrounded by happy, fulfilled, enthusiastic colleagues who are doing great work for our clients.

Do you think we have the right approach to career planning? What approach does your company take to the challenge of guiding employees to grow and prosper?

Small Business and Bankers – Relationships that count.

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On re-reading my previous post regarding the economic briefing with the RBC’s Chief Economist, I realized that it pointed to an important issue for anyone who owns or manages a public relations business – or any small business for that matter. The relationship we have with our bankers.

Talking to other entrepreneurs over the years, the treatment of small businesses by banks has been one of the most frequently raised sore points. Complaints I have heard most often include: “They’re never there when I really need them. But they always want to lend me money when I don’t need it.” “They want so much security that it makes it impossible for me borrow money for growth.” And even “They don’t seem interested in my business.”

RBC Head OfficeHappily for me, I have had a very different experience with my bank. I’ve had an 11 year banking relationship with RBC. Even more remarkable, RBC has assigned the same account manager, Bill Helmer, to my account for that entire time. Over the years, he has been a source of advice and support. Bill has suggested ways that the bank could help me with my growth plans (yes, the money is offered when I don’t “need” it, but isn’t the art of management all about staying out of a situation in which you “need” financing.) And from time to time, he has reined me in, counseling that my ambitions might be ahead of my reach or that I needed to focus on fundamentals in order to have a solid foundation for those plans. He has invited me to events such as the economic briefing and networking events. And he has talked positively about my business to many of his own contacts.

In a very real sense, Bill Helmer has been a valued partner in guiding Thornley Fallis to business success.

I wonder if my experience is common. Or have the entrepreneurs who’ve told me about their unhappiness with their bankers been the norm?

I’d be interested in hearing about the experiences of other entrepreneurs and small business owners. What do you think? Is my experience typical?

The only R word in Canada is "Resilient"

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Yesterday, RBC Financial Group Chief Economist Craig Wright delivered an encouraging message to an audience of Canadian business executives. Overall, Canada’s economy remains strong and is likely to sustain continued moderate growth.

Why do I care? Well, because as the CEO of a public relations firm, I know that my business will be among the first to be affected by a downturn in the economy. So, I am always trying to look over the horizon to gain as much time as possible to prepare for shifts in the economy.

But yesterday’s briefing gave me confidence that I can proceed with the growth plans my company has to take advantage of the development of social media. While there are some pockets of concern (i.e. manufacturing, particularly the auto industry in Ontario), the overall outlook is positive. And that means that I can count on my clients continuing to be open to opportunities to use social media to better connect with their customers, clients and stakeholders.

Mr. Wright offered a wealth of data and analysis, delivered at a break neck pace. Some of the points that stood out for me:

  • Canada will continue to experience offshoring to China. This will be manifested in short term job dislocation, but it should lead to long term productivity improvements in Canada.
  • Oil (something that should be near and dear to the hearts of not only Albertans, but all Canadians): As the speculative froth comes out of oil prices, oil will stay in the $58 to $60 barrel range. That means oil prices around current levels, but above what they have been in recent years.
  • The Canadian Dollar: Commodity prices will come off their highs as global growth moderates. This will take the pressure off the Canadian dollar. It should drift lower to U.S. .85 by the end of the year and the low .80s by next year.
  • Consumers in the U.S., like Canada, are sitting on strong liquidity. So, they are well positioned to deal with the housing slowdown. We’re looking at a soft landing. A housing market that is cooling, not collapsing. There is some risk for Canada, but the reslience of the Canadian economy is quite striking. Low inflation and sound fiscal policy are positive factors in Canada.
  • Exports will remain weak. So, growth in Canada will have to come from  internal growth. And prospects are good for that.
  • The investment side of Canada looks strong. Corporate balance sheets in Canada are very strong. The tightening of the labour market has put the focus on investment. And investment will provide the basis for future growth.
  • Canada’s Banks will be meeting with the Finance Minister next week as part of the fall planning season for the next five year period. As we move forward, a lot of the fiscal surpluses have already been earmarked for spending, so we should not expect significant tax cuts.
  • Canada is the only G7 country paying down our debt.
  • Nine of the ten provinces are now in surplus (except PEI). The feds are in surplus. Going forward, Ontario may dip back into deficit. Growth prospects have been reduced. So, going forward, Ontario has some challenges.
  • We are probably at the peak of interest rates. The next change by the Bank will be down, probably in the second half of next year.
  • Consumer, investment, government all add to the growth prospects, offsetting a weakness in trade.
  • One problem area is skill shortages. We’re running with a 32 year low in unemployment. We’re seeing a swing in immigration patterns toward Alberta and away from Ontario.
  • Alberta’s economy remains strong and will continue to grow. The challenges will be Ontario’s – in manufacturing and specifically the auto sector.
  • Ontario growth will be 1.5% this year and 2% next year.

In summary, we’re looking at some external challenges. Coming off the best four years on record, it’s reasonable to expect some slow down. However, the Canadian economy is resilient. Last year, growth was 2.9%, this year it will be around 2.8%, next year projected for 2.7%.

Not a bad environment overall as we move forward. And a good foundation to plan for continuing growth in the social media and PR business.

IABC International Conference – Pat McNamara

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Apex PRPat McNamara’s session was titled Fuel your business: Strategies from one of Canada’s fastest growing companies. She did not disappoint as she delivered a fast-paced presentation chock full of wisdom and practical tips.

Highlights of her presentation:

One of the secrets of success is to get awards. And we have applied for almost all the awards we won.

The ‘Not so secret” ingredients of a successful, profitable PR business are

  • The right people
  • The right clients
  • The right business

To be successful, you must have a passion both for PR and running a business. If you don’t have that passion, people will not want to work with you.

Pat is a fan of David Maister and she has put much of his advice into practice.

Getting hired is about earning and deserving trust. You need to earn trust. Be generous with your time and help. Show a good understanding of the situation.

The absolute number one key to success is having the right people and the right culture. Unfortunately, PR firms tend not to do a good job of communicating with their employees.

Culture must be consciously created.

  • Reputation is key.
  • Trust and empower your employees.
  • Build a strong, talented management team.
  • Ensure you have a leadership, not boss mentality.
  • Have fun.

At Apex, Pat believes that “The company becomes strong one employee at a time.” Think of employees as individuals. Figure out what each one is good at and figure out how to make those strengths fit into your success formula. Constantly reward success and achievement – in ways that are meaningful to them. And surprise them. The unanticipated can delight.

Always do an employee survey. You cannot pay too much attention to what your employees are thinking.

“People leave managers, not companies.”

If you can keep your employee turnover low, your business will have a firm foundation for growth. Clients stay with businesses that have stable teams.

HumanResources.com has a list of the top 10 reasons people stay at a workplace. 46% is related to people. 18% is related to the job. 12% is pay related. 10% is related to the company.

Ensure that you have a leadership mentaility, not a boss mentality. The company is about the sum of its parts. Everyone should be encouraged to understand and believe that they can contribute.

Focus on ensuring that all people in a leadership position have strong leadership skills and an understanding of the importance of this role.

McNamara recommends Marcus Buckingham and Curt Coffman, First Break All the Rules, as a source for the questions to ask in ensuring that employees are inspired.

To grow your business, you must:

  • Hunt and acquire new prospects.
  • Market to existing clients.
  • Identify new sources of business.

Not all new business is good business. If you work with clients who are not very nice or whom you are not very passionate about, you’ll lose your people. Get the right kind of business, not more business.

Existing clients are the most likely sources of new business and the most profitable.

When deciding who to purse, start with an honest assessment of your capabilities. Do you have a chance of winning this business? To have a reasonable chance, you must have special expertise, the time and the resources to stand out from the crowd.

Find out as much as possible about the client. You must know them well in order to understand their needs.

Ensure that someone on your team is excited about working with the client. If people are not passionate about this, don’t pitch the business.

Stay away from strangers. Don’t pitch unless you can be in the room and present to the client in person. People choose other people, not paper proposals.

Create a very short list that is focused on your capabilities and ability to win (never pitch business that you don’t think you have at least a 50% chance of winning.)

Pursue opportunities by sending creative packages and look for opportunities to interact (e.g. a PR 101 presentation.)

Understand that most people have made up their mind about whether they like you or not within the first two minutes of meeting you. Make the most of this time.

One you’ve won the business, you must work hard to keep them happy. This should be your number one priority. Happy clients will be forgiving. They will take your advice. They will provide positive referrals.

Reasons clients leave firms:

  • Failed to meet deadlines
  • Did not meet budgets
  • Lack of follow-through
  • Did not keep the client informed of project status
  • Poor or inconsistent quality
  • Did not meet expectations
  • Over-promised, under-delivered
  • Lack of enthusiasm
  • Order-takers vs. idea generators
  • Lack of good chemistry or trust.

Ways to keep your clients:

  • Ensure there is strong team chemistry
  • Provide senior level involvement
  • Under-promise and over-deliver
  • Clients are no your friends; remind your staff
  • Take a “no surprises” approach to budgets
  • Set clear expectations; put them in writing
  • Never miss a deadline; develop thorough, doable timelines
  • Ask: what’s the best/worst thing we could do?
  • Use their products
  • Let your clients interact with each other
  • Admit your mistakes
  • Show your passion for their business

Listen to your clients

  • Conduct a client survey
  • Conduct internal reviews – be brutally honest in your assessment.
  • Interact with your clients – walk the halls with them; attend sales meetings; introduce them to new ideas and services even if they are not your own.

Have regular conversations with the client:

  • First week: conduct a client audit and organize an internal indoctrination on how we will work together.
  • 30 days: conduct a review of how we are doing. Walk them through the first invoice
  • 90 days: Ask for an assessment of performance and gauge performance against written expectations
  • Six months: Do an activity recap and a planning session.
  • One-year review: Conduct a written survey and establish new directions.

To grow existing business:

  • Ensure you have multiple contacts
  • Conduct/attend media/presentation training
  • Attend marketing and sales meetings
  • Interact with other suppliers
  • Start an idea generator program
  • Introduce alternate team members
  • Invite them to other client events

IABC International Conference – Tuesday afternoon sessions

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Lynne LancasterAt this year’s IABC Research Foundation luncheon, Lynne Lancaster will speak about Minding the gaps: Engaging four generations in an info-saturated world. “Traditionalists, Baby Boomers, Generation X’ers, and Millenials … Each of these generations has unique expectations for how messages should be delivered, and which hot buttons are most important to hit. … savvy communicators need to know what’s important to each generation of listeners and how to make an emotional connection.”

Both of the afternoon sessions I’m planning to take in focus on employee communications.

First, David Grossman will discuss Making the most of leaders through effective leadership communication. The programme promises that the session “will explore a proven four-step leadership communications model and teach the skills necessary to coach leaders to drive business results and improve performance through effective leadership communication.” Something which I know that the folks back at my office would like to teach me! Later, it’s back to the online world: Intranets on the cutting edge: A look at what’s possible now and probably tomorrow, with Donna Itzoe and Jerry Stevenson. A look at “one of the most technologically advanced intranets on the planet – Verizon’s Digital Workplace.” Hmmm. I’m not sure it’s in this fiscal year’s budget. But I can always dream.

 

Peek behind the scenes of the launch of a web 2.0 company – Riya

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Munjal ShahMunjal Shah, the CEO of Web 2.0 start-up Riya, is writing a series of posts recounting the first two months following the launch of the company’s public beta.  Riya offers “face recognition technology [that] automatically tags people in photos so you can search for just
the photo you want. In your albums. In your friends’ albums. In our public albums.”

In his introductory post, Munjal provides a taste of what is to come:

The last 60 days has been just a whirlwind. In the next eight/nine blog posts I’m going to recount the last sixty days of Riya in detail. Each blog post will cover a week.

I will recount the days following our launch, the cocaine like high and subsequent crash of the Techcrunch effect, the final analysis on whether Riya’s technology worked, the feedback we recieved from users, the competitors we beat (at least in traffic), the flaw in the Riya business strategy we uncovered, the crisis it precipitated, the concern I developed for the entire Web 2.0 industry as the numbers rolled in, the search for a new strategy as Azhar, Burak, and I sat in a conference room for almost 10 days straight, the customer data that lead us to a counter-web 2.0 and counter intuitive strategy, the board meeting and debate about it, and the first execution around it.

They say consumer Internet companies are all about launching, getting feedback, and iterating. Well, welcome to Riya Iteration 1.

Today, Munjal posted Episode 1: March 21 6am PST to March 28 6am.

Thanks to Tara Hunt for pointing to Munjal’s posts.