bellwether - a blytheco, llc magazine - 2nd quarter 2011
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The Tax Cut Act:Important Benets for Small Business
BELLWETHER
Practicing
Bad Profteers
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Bellwether Magazine | Second Quarter 20112
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3 bell• weth•er -noun: one who takes initiative or leadership
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Bellwether Magazine | Second Quarter 20114
s
e
c
t
i o
n
sLetter from the Editor 5
Book Report 6
Leadership 7
Sales and Marketing 8
Customer Loyalty 9
Cover Article 12
Industry news 14
Featured Article 16
Social Networking 18
State of the Economy 20
Leadership 22
Work | Life | Balance 23
12
14
18
People ask the difference between a leader and a boss.The leader leads, and the boss drives.
Theodore Roosevelt
LEARNING FROM THE PRACTICING
BAD PROFITEERS
To Be or Not To Be...
SOCIAL
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5 bell• weth•er -noun: one who takes initiative or leadership
LETTERFROMTHEEDITOR
BELLWETHERA Blytheco, LLC Magazine
Volume 2Second Quarter, 2011
www.blytheco.comwww.bellwethermagazine.com
STAFFEDITOR Apryl Hanson
CREATIVE DIRECTOR Greg Went
CONTRIBUTING WRITERS Alicia AndersonRon BakerApryl HansonDick LeeCortez NaPueKaren PriceDawn WesterbergGeni Whitehouse
ADVERTISING SALES Dori Fitch
SUBSCRIPTIONS www.bellwethermagazine.comOr contact Dori Fitch -(800) 425-9843, Extension 1168dorif@blytheco.com
Bellwether Magazine is published byBlytheco, LLC with principal ofces at:23161 Mill Creek RoadSuite 200Laguna Hills, CA 92653
If you wish to be removed from themailing list or to add names to themailing list, send your request, includingname, business name, and mailingaddress to the above address or todorif@blytheco.com
This is a copyrighted publication andall articles herein are covered by thiscopyright. Any use of the content forcommercial reasons or other form orreproduction of material herein is strictlyprohibited without prior, written approvalof Bellwether Magazine.
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Bellwether Magazine | Second Quarter 20116
by Geni Whitehouse
BOOK REPORT
Evil Plans: Having Fun on the Road to World DominationHugh MacLeod
Famous for his cartoons on business cards, Hugh is an unlikely prophet. But he has a
powerful and important message about doing what you love – which he calls your “Evil
Plan”. He describes his own journey from advertising agency to blogger extraordinaire
and throws in great stories and funny cartoons along the way. Like Vaynerchuk, MacLeod
believes in going all out in pursuit of whatever it is that lights your re. To be successful,
MacLeod says evil plans for world domination have to be wrapped in excellent stories
that lend themselves to socializing. It seems you can’t hatch a successful evil plan in a
vacuum.
Crush It! | Gary Vaynerchuk
Short and sweet (and less than 15% alcohol), this book tells the story of a wine wholesaler who
became an internet sensation. Gary Vaynerchuk has a passion for wine and he’s not afraid to
share it. While his approach is extreme (he doesn’t sleep and never seems to stop working) hehas a powerful message. The key is to have a maniacal passion for your idea. Businesses of
every size can benet from his success in using social media to share that passion. While you
might not want to spend every waking moment being connected or getting social, you can
learn a lot from his ability to create a community of dedicated followers – who eventually turn
into buyers.
Who are you People? | Shari Caudron
This book explores passion from the perspective of hobbyists. The authorset out on a journey to uncover the motivation behind fanatical obsessions–
she wanted to know what made these people tick. While she didn’t uncover
the passion gene, she did gain insights into (and respect for)
the power of shared passions in uniting people from diverse
backgrounds. This book is great fodder for any business owner
who is trying to build a community of raving fans – you never
know what you can learn from Barbie convention attendees,
Josh Groban fans, or the pigeon people. It’s a perspective-
shifter that might just open your eyes and give you new ideas that
you can apply to your business. You might even end up with a new
hobby.
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7 bell• weth•er -noun: one who takes initiative or leadership
Questionsare the
Answer
Einstein said “Failure and deprivation are
the best educators and puriers.” Applying
that to leadership in business (or any other type
of leadership) allows you the freedom to fail, and
learn from it. I recently had a project that didn’t go as
planned. It gave me and my team the opportunity to tear it apart, and start over fromground zero dissecting the things that went wrong. As leaders we have the privilege
of asking questions of the people that we work with to help them get creative in
learning from their mistakes, instead of feeling punished by them.
In Managing for Results, Peter Drucker writes
“Searching for potential of opportunity in
a company’s vulnerabilities, limitations and
weaknesses is therefore likely to be resented
by its most accomplished people as a directattack on their position, pride and power. This
is the reason why the opportunities are often
not realized by the industry leaders but by
people on or near the outside.”
As leaders, how do we allow ourselves to stay
close to the outside and not get wrapped up
in emotion and ego when looking at business
challenges? It comes back to asking yourself and others around you questions like:
• What worked well about this situation,
project (or what is working well in the
business)?
• What isn’t working well?
• What would we do differently next time?
• What is my gut telling me about this
situation?
• Were there any signs early-on that this
wasn’t working that I ignored?
If we allow ourselves the ability to self reect as
leaders we will develop teams that learn to self
reect, diagnose, and move on to solutions
instead of harping on issues in our businesses.
Mastering this skill will require discipline
but it will be very rewarding.
LEADERSHIP
by Apryl Hanson
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9 bell• weth•er -noun: one who takes initiative or leadership
The traditional meaning of community has broadened to
include online groups who are aligned with a brand or
cause. Often these communities include a movement of
customers raving about a particular product, or binding
together to ght against a brand. As a company, what canyou do to share in the building of your community?
As customers are collecting together on
different social media landscapes
like YouTube, Twitter,
Facebook and
LinkedIn, what
will the future
of these
communities look like? What can we do to put our best
foot forward?
Chris Brogan, President of Human Business Works, an online
education and community company for small businessesand New York Times bestselling co-author of Trust Agents,
says in his blog (www.chrisbrogan.com) that successful
communities will require authentic loyalty, to and from the
customer. However, he states “Oddly, loyalty programs of
today push the reverse of loyalty: sign up and we will beat
you with even more mail than people who casually swing by.
Sign up and we’ll bother you until you buy. Sign up and we’ll
share your data with other people.”
This has to shift. Membership in a customer community
needs to be more of a shared value experience. Loyalty
should mean “feeling like you’re on the inside” and gaining
access to the exclusive benets of the group, whether
those benets are as simple as information, or as “real” as
discounts or other gifts.
This emphasis on community puts more pressure on small
businesses to take their brands online, but without someone
to listen and correspond with community members, you
leave your brand to chance. There are plenty of software
packages that can make it easier to engage with clients
and decrease the amount of time that it takes
to stay involved. This is new territory for mostbusinesses yet we are increasingly feeling
pressure to participate.
CUSTOMERLOYALTY
DELIVERING ON COMMUNITY
by Apryl Hanson
What does community mean to you? Our world is changing! I knew
that there was a turning point when I was at my favorite restaurant
I have been going to for 15 years and the owner says “Are you following
us on Facebook?”
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Bellwether Magazine | Second Quarter 201110
The goal is for you to
fall in love with your
business again.
Begin a process of fun work with
the purpose of awesome results.
COLOR COPIES OF YOUR AD
FOR 6 CENTS EACH!*
Hey...we’ll even send them to ourreaders at no extra charge!
Advertise in Bellwether...
...it makes ‘cents.’
www.bellwethermagazine.com/ads*Based on 1/2 page color ad sent to our 20,000 plus print readers.
Marketing StrategyMarketing Plan and Calendar
Campaign Development
Marketing Metrics
Content Development
Public Relations
Social Media
www.dawnwesterberg.com
Geni WhitehouseSPEAKER AUTHOR
CONSULTANT NERD
She’s been called the “comedian CPA.” A self-proclaimed nerd, experienced softwareexecutive and former CPA rm partner,Geni Whitehouse has made it her mission toeliminate boring from the world of presentations.
STRATEGY
EXECUTION
EVANGELISM
CONTENT DEVELOPMENT
www.evenanerd.com
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11 bell• weth•er -noun: one who takes initiative or leadership
Good marketing has that kind of energy and focus behind it.
Good marketing says to your prospects: I realize that you are
special and I will go out of my way to make you feel special.
Do you have a sweetheart list? A sweetheart list is a short
list of accounts you would love to have. Maybe it’s based
on the characteristics of the company. Maybe it’s based
on the fact that the company has name recognition or is a
forward-thinking leader in your market. Whatever the reason
– doesn’t it make sense to approach them with the following
purpose in mind? “I realize that you are special.” “I will go
out of my way to make you feel special.”
Let’s say you have a sweetheart list of 12 – set up a GoogleAlert for both the company and the contact. Every time you
get interesting news via Alerts you have a reason to email
or call.
Have you searched them out on Twitter, Facebook and
LinkedIn? Try to make a connection via social media. If
they are on Twitter, you can respond to their Tweets or RT
(retweet) their observations and links. If they are posting
on Facebook, you can leave a comment. If they connect
with you on LinkedIn, you’ll be alerted as to any change
in their status (promotion, move to another company) andif they participate in any groups, you’ll know that as well.
It’s probably worth your time to join the group as well if it’s
appropriate.
Do they have a blog? The fastest way to a blogger’s heart is
a thoughtful contribution to the comments section.
Use every platform to communicate (I’m not suggesting
you spam them). Observe their habits and see if there is a
particular communications preference they have. Use email
to congratulate them on the good news about the company
that you learned through alerts. Use snail mail to send aninteresting article or helpful tool. Use lumpy mailing to send
a logo’d item.
This could also be called guerilla marketing. All of your
activity is saying “I realize that you are special.” “I will go out
of my way to make you feel special.” After 6 months of this
kind of focus, you will have mindshare. You may then chose
to place them on your nurture marketing list and select
another company to take a spot on your sweetheart list.
Here are possible results:
Nothing will happen. (Rare, but a potential reality.)
The efforts of their current provider will be compared to
your efforts. Chances are very good that (sadly) their current
provider isn’t in the “I will go out of my way to make you feel
special” mode. You will have preferred mind share.
They may not be in a position to buy from you yet, but your
efforts have been noticed, and there is a likely chance that
when faced with an opportunity to make a referral, they willpoint another prospect to you.
When they are ready to buy, you will have done such a good
job of distinguishing yourself from the competition, the odds
will be in your favor to win the business.
Remember, it’s not enough for them to decide “I need to
buy XYZ product or service.” Rather you want them to be
thinking “I want to do business with [Your Name Here].”
Years ago, a coworker shared the account o meeting the woman who was to be his uture wie.In courting her, he was relentless in making sure that his sweetheart was receiving regular
deliveries o cards, candy, fowers and later jewelry. His strategy? “I there was anyone she was even
remotely interested in, they would have to run very ast to keep up with me.” Through a variety o
actions and behaviors he was telling her “I realize that you are special.” “I will go out o my way to
make you eel special.”
Courting our Prospects: Marketing Tactics that Say
“I Realize that You are Special”
CUSTOMERLOYALTY
by Dawn Westerberg
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Bellwether Magazine | Second Quarter 20111212
COVERARTICLE
by Apryl Hanson
Bain and Company just released (2010) its study
on Customer Loyalty in Retail Banking for North America.
We all know that bank practices and customer service have
been on a trending downturn for what seems to be most of
the past ten years. In fact, most feel held hostage by their
bank in a never ending battle.
In a blog article by Fred Reichheld, author of The Ultimate
Question, he states that the New York Times reported in
October that a federal judge “ordered Wells Fargo to payCalifornia customers $203 million in restitution for claims that
they had manipulated transactions to maximize the overdraft
fees they charged.” Instead of processing transactions in the
order in which they were received, Wells Fargo put through
the largest to the smallest. In a stinging 90-page opinion,
United States District Judge William Alsup wrote that the
practice was unfair and deceptive.
It isn’t that Wells Fargo should be specically
pointed out, but many banks have adopted
similar processes creating an industrynorm and underwhelmed customer
allegiance. In your industry, are
there things that have developed as
industry standards that create a negative
customer experience? These things are somehow
overlooked because we accept the fact that this is how
business is done.
Why?
Instead, might we be able to envision a different way of doing
business outside of the norms that creating uniqueness and
delivering an over the top customer experience. Marketing
books talk about your unique value proposition but most
businesses believe that what they deliver uniquely is their
“customer experience”. While that may be true, I’d challenge
you to think of your business from outside itself, from the
position of your customer looking in. Your customers,
industry standard or not, have the key to what could be you
leaving prots on the table.
So what are bad prots?
Bad prots are charging more for something without
increasing the value that customers are receiving or being
deceptive in how you are doing business. We all should
be in the business of providing something valuable to our
customers and it should create a win-win situation. The
customer benets from what they receive, and you benet
from what you receive.
LEARNING FROM THE PRACTICING
BAD PROFITEERS
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13 bell• weth•er -noun: one who takes initiative or leadership
CONFUSED CUSTOMER
How can you measure your relationship with your clients?
In Reichheld’s book he talks about
the Net Promoter Score (NPS)
which is a loyalty gauge for
your business to understand the
ongoing relationship and potential
recommendations your clients will
give. I like to think of it as a way of
measuring the good or bad press
that is out there about your
company. Think of it as what
someone would say to a friend
if asked about your company.
This is measured by a survey process in which the customeris asked “On a scale of 0-10 (10 being the highest) what is
the likelihood that you would recommend XXX company to
a friend or colleague”.
The answer to that question gives you the ability to
measure if you have:
• Promoters – those who respond with a 9 or 10
• Neutrals – those who respond with a 7-8
• Detractors – those who respond with a 6 or below
You then add up the total’s you have in each category,
and calculate your percentage of Promoters, Neutrals and
Detractors.
% of Promoters - % of Detractors = Net Promoter Score
(NPS)
Your NPS helps you understand the health of the relationship
with your customers and links to future protability. For a
deep dive on this I highly recommend you read Reichheld’s
book. There is really
an overwhelming
amount of data on
this, and you should
be measuring this for
your business.
According to
the Bain and
Company study, if there were a bank that would stand out
from the normal day to day business, and increase their
NPS score the benets would be:
• Customers who are promoters stay longer with your
company than those who are not promoters and in
general cost less to serve.
• A promoter customer is worth
more than one that is a
detractor
• You can have a
growth rate that is
higher than your
competitors
Would that be somethingthat is worthexploring for your business?
These points aren’t unique
to banks, but would be the benets to any business
delivering high customer loyalty. As discussed above, we
can learn from watching businesses get it wrong, regardless
of the industry. Take a look at your relationship with your
customers and see what you can do to remove bad prots
and increase your NPS.
We would love for you to share your ideas on how you create
unique customer experiences by writing your thoughts to:
‘customerexperience@blytheco.com’
“ We all should bein the business
of providingsomethingvaluable to ourcustomers and itshould create a win-win situation.
HAPPY CUSTOMER
ANGRY CUSTOMER
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Bellwether Magazine | Second Quarter 201114
With the economy tanking over the past few years,it’s no surprise that many banks are hiking theirmaintenance fees in order to pass the cost on to theirconsumers. The Fed has already implemented newbanking legislation with new policies that limit thetypes of fees that banks can charge, however, banks,as clever as they are, have already gured out ways todivert the expense to their customers.
Banks’ recent repositioning of fees is a direct result of the newly implemented Card Act, which bans a handfulof fees, including certain overdraft and excessive latecharges. The new legislation also prevents over-the-top interest rate hikes. Most recently, the FederalReserve proposed a cap on debit interchangefees which is what the bank charges retailers whencustomers swipe their cards.
In light of this, most of the nation’s largest banks havecompletely revamped their fee structure, introducinga whole new set of accounts for consumers:
J.P. Morgan Chase - Chase announced onFeb. 8th that all newcustomers wouldbe enrolled in anew Total Checkingaccount. The accountwill charge you a $12monthly fee unless youmaintain a checkingaccount balance of $1,500, make monthlydirect deposits of atleast $500, or keepa $5,000 balanceacross all depositaccounts -- includingchecking, savings andinvestments.
If you keep your old account, you’ll get charged a$6 monthly fee unless you make a direct deposit of at least $500 per month OR make ve debit cardpurchases.
Bank of America Similarly, Bank of America announcedthat they will restructureall of their checkingaccounts by year end. Bof A’s new fees will range
anywhere from $8.95 to$25 per month with thepossibility of being chargedup to $300 extra per month forany account infringement. Butcustomers could get thosecharges waived if theymake at least one directpayment each month ormaintain a balance of $1,500. This feature will beeliminated by year’s end (2011)and all BofA checking accounts willbe $8.95 per month unless…
You enroll in an“enhanced” checkingaccount and keepa balance of $5,000in your total linkeddeposit accounts,which include checking,savings, and investmentaccounts. You couldalso choose to depositat least $2,000 monthly,or use a linked creditcard at least once amonth. If your balancedrops below $5,000 oryou don’t meet the otherrequirements, you will becharged a $15 fee.
Citibank - In September 2010,Citibank began charging monthlymaintenance fees of up to $30. The basic
“Free checking is
going to become
less prevalent,
but it’s not going
to go away likethe dinosaurs.
by Cortez NaPue
INDUSTRY NEWS
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15 bell• weth•er -noun: one who takes initiative or leadership
PRICING ON PURPOSE presents the theoryof value - long established in economics - anddetails how any business can use various pricingstrategies to create, communicate, and capturethe value of their products and services. It takesa new approach of focusing on the external valueas perceived by the customer and advocates matching price tovalue. Written in everyday language so it’s valuable to beginning
executives as well as professional pricers and marketers, it covers:
checking account charges a monthly maintenance fee of $8 unless you complete ve or more monthly transactions,including direct deposit, debit card purchases, billpayments, check payments and/or ATM cash withdrawals.
Citibank also offers an alternative that charges you a fee of $20 unless you maintain a $6,000 monthly balance in linkedaccounts -- including checking, savings and investments.
Wells Fargo - Ended its “free checking” account inJuly and now hits customers with a $5 monthly fee unless aminimum balance of $1,500 or monthly deposits of $250 ismaintained.
Its other accounts charge fees up to $30, but they can bewaived if you meet certain requirements, like maintaininghigher minimum balances or making automatic transfers toyour savings account. Every Wells Fargo checking accounthas a free option – something that sets this bank apart from
the others.
Wachovia - Customers still get to hold on to their freechecking accounts, but they will be fully integrated with thebank’s other fees soon enough-- including $2 charges toreceive images of cancelled checks and $10 fees for usingyour savings as overdraft protection.
HSBC - This bank hasn’t made any major changes overthe past year as their basic checking accounts are stillcharged $3 a month with no way to avoid it.
Choice account users can avoid a monthly maintenancefee of $8 by using direct deposit, keeping at least $1,500
a month in deposit account balances, or by maintaining a
balance of $5,000 across all accounts -- including depositaccounts, credit lines and investments.
How to Avoid The Fees…For Now - While itmay seem that the death of free checking has arrived, there
are still ways to make your account free.
“Free checking is going to become less prevalent, butit’s not going to go away like the dinosaurs,” says GregMcBride, a senior nancial analyst at Bankrate.com.
He further says that “65% of nancial institutions still offerfree checking, while 23% offer an account where fees canbe waived with actions such as direct deposits.” Bank of America however, will not offer free checking of any typecome year-end 2011.
“The upshot for consumers is that what will become moreprevalent is the ability to avoid fees with certain options
that best suit their needs, like direct deposit, using onlinestatements or having aggregate balances with banks,”McBride said.
Fees’ Affects on the public - The new roundof fees appear to fall disproportionately on the families of lower-income persons. As evidenced by 67% of all overdraftfees owed in 2008 belonging to lower-income persons, it isprojected that some 72% of all new banking fee expenseswill be placed on lower-income families. With the nation’sunemployment rate at 9% and close to 50 million Americansliving below the poverty line, it is a wonder how families willbalance the need to have a bank account with the expenseof owning one.
What and how people buy
The allacy o commodity thinking
The ve Cs o value
The market share myth
The dierence between cost-plus pricing and value pricing
A comparison o the Subjective Theory o Value and the Labor Theory o Value
Customer segmentation strategies
This and other Ron Baker books are available at www.verasage.com
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Bellwether Magazine | Second Quarter 201116
FEATUREDARTICLE
The Growing Importance ofBusiness IT Interpreters
This language barrier doesn’t pose a huge problem
for manufacturing folks, because they’re mostly off by
themselves, unless implementing ERP – and even then,
the bulk of ERP users reside in the back ofce, not on
the factory oor. However, business and IT not sharing
a common language is a huge problem. Just ask either
side about accuracy of communication following any ERP,
CRM, HRIS or other implementation. In fact, based on
our experience, failure to communicate causes far more
systems disappointments and outright face-plants than
awed technology. Watching business and IT communicate
often reminds me of a tee-shirt my son wears, saying: “I
can see your lips moving, but all I hear is blah, blah, blah.”
But it’s not funny. Companies still pour billions down the
drain every year, investing in systems that only partly meet
business needs, or in some cases don’t meet them at all. In
our customer-centric process practice, focused on ofce/
service work settings, we frequently ask, “Why are you still
doing this manually?” Often, we hear back, “Well, IT built
us a system but it doesn’t do what we need.” Or, “The
system we bought (sometimes without IT involvement)
doesn’t work.”
Stepping back and seeing the big picture, rarely are these
failures obviously either side’s fault. Both sides often speak
in separate tongues, thus neither understands the other.
But I should add, and I’m “safe” to say this because I am
from the business side, business often makes only token
efforts to communicate, believing IT should somehow“get it.” ESP, anyone?
As if all this isn’t problem enough, empowered customers
are pushing ofce/service process towards improving
customer experience – an external goal - while remains
accountable and measured by internal efciency.
We can divide even most small companies into three elements:
production; front/back ofce and service settings, includingmanagement (which all together we call the “business”
element); and IT – with service organizations typically lacking the production
aspect. Similarly, we can divide companies into three language groups:
“manufacturing-speak;” “native language” with industry-specic language in
ofce and service; and tech-talk. Unfortunately, few in most companies speak
all three.
by Alicia Anderson
by Dick Lee
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17 bell• weth•er -noun: one who takes initiative or leadership
Getting past “blame”
When companies engage us, among the rst questions we
ask are: (to the business side) “Is IT giving you everything
you need?” and (to IT) “Are business folks telling you what
they need?”
We used to have to step aside to avoid getting blown over bythe heat of the responses. Today, relations between business
and IT are far more civil, but that’s just a progression from
unfriendly dysfunction to friendlier dysfunction. And neither
side usually takes responsibility,
preferring to blame the other.
To heal the wounds and prevent
recurrence we make sure IT has
a seat at the table during our
cross-functional team meetings
where we conduct processanalysis and redesign. I wish I
had a tape of all the discoveries
that occur: “Oh, is that what you
wanted?” “Heck, our current system can do this;” “I never
knew you needed this data,” and so on and so on.
Process should be interpreting
How should we be addressing the issue? If we parse out
organizations a bit more we see a sub-element nestled
between business and IT – process –
which is perfectly situated to interpretbetween business-speak and tech-talk.
That’s the good news. The bad news is most
process people cut their teeth in production
process using production process techniques
– especially Lean Sigma and the elements
thereof – which has exposed them to
neither systems architecture issues
and opportunities nor the plethora
of automation software now available.
Process may be perfectly situated, but
it’s imperfectly skilled and still reliant on
production software approaches.
Getting to effectivecommunication
Fortunately, forward thinking process
professionals are beginning to
practice new process approaches
that: design “outside-in,” from the customer perspective;
leverage systems architecture design and especially
automation software to deliver value to customers; and
consider business and technology an integral unit, with
practitioners required to be uent in both disciplines – and
both languages.
This new approach to process lls the communication gap
and then some. But adopting relatively new approaches to
anything requires forward-thinking management. And the
communication gap will stay with us as long as we try to
attack today’s problems with legacy
process approaches designed for
manufacturing. Companies need to
start adopting the new, integrated
process/technology approaches
in their ofce and service settings
to nally close the business – IT
communication gap.
“I can see your lips
moving, but all I
hear is blah, blah,
blah.
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Bellwether Magazine | Second Quarter 201118
The Legality of Using Social Media In andOut of Work
Earlier this year, the National Labor Relations Board (NLRB)
led a claim against American Medical in Connecticutfor violating federal laws that prohibit employers from
terminating employees for private communications. Similarly,
a Manhattan law rm has recently led suit against J.P.
Morgan Chase alleging that they wrongfully terminated an
employee for writing novels and blogs under a pseudonym.
The rm claims that J.P. Morgan violated New York Labor
Law Section 201, which proscribes discrimination against
employees for engaging in lawful recreational activities
outside the workplace. The prior case was privately settled
so it is not quite sure if any precedents were set, however the
NLRB did make its position clear. Attorney Anthony Haller,chair of the employment, benets, and labor practice group
at the law rm Blank Rome in Philadelphia, points out that the
two mentioned cases are unique in that they involved activity
that occurred outside of the workplace, but further says that
companies generally and legally own all communications that
occur on their networks and that there is “no expectation of
privacy for the employee.” The moral of these cases is to
think twice before accessing any social media portal while
at work and although it may
be legal, to always use your
better judgment when posting
content outside of work.
Developing andEnforcing Your CompanySocial Media’s Policy
Social media (Web 2.0) is not a fad.
Its creation has changed incredibly the
way we communicate on a daily basis
and has provided new opportunities for
businesses to reach consumers. Because
of this, a company’s goals in developing
a social media policy should not be to
stie its use, but to take advantage of
it while protecting company interest
and minimizing potential risk. Here
are a few Do’s and Don’ts to creating
a realistic social media policy:
by Cortez NaPue
Whether you use it or not, you’ve probably noticed a massive transition to
social media and an increased need for employers to develop social
media policies. With this transition comes many complexities for businesses and
their employees. Can an employee access their Twitter account while at work? Are
employees allowed to comment about workplace environments on their Facebookpages? The answer is tricky, and employment law can often differ from state to state.
The key for businesses in accommodating the constant evolution of social media use
is to know both federal and state law regarding this kind of activity and to develop
a commonsense company social media policy.
To Be or Not To Be...
SOCIAL
SOCIALNETWORKING
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Bellwether Magazine | Second Quarter 201120
With annual losses estimated at over $20 billion, check fraud is a major problem impacting banks and their clients. The American Bankers As-
sociation has stated that check fraud is growing at 25 percent per year. Fraudsters are continually looking for ways to outsmart “the system”
and using new technology.
Check fraud is one of the fastest growing nancial crimes in America. Check 21, a 2003 law that enables electronic processing of checks and
conversion of paper documents to electronic images has made fraud detection more challenging. Checks still account for approximately 42%
of all non-cash payment and are the single greatest source of payment losses.
Check fraud is also a recession proof growth industry. How does it happen? Maybe a business owner gets a call from his banker to ask about
a questionable check being presented for payment at the bank, or an accountant notices that three checks in last month’s bank statement are
all written to an unfamiliar person despite a realistic signature. A small business owner is notied she is overdrawn and realizes that a check
originally written for $32.69 has been changed to $3,269.00, or after the layoff of their bookkeeper, the partners in a professional practice
notice checks written on their account outside of their numeric range.
Fraud Prevention &
It’s human nature to have a tendency to le certain events under “won’t ever happen,” for example:
A real estate bubble | A giant oil spill | A break-in at your home or ofce | Fraud committed on your bank account
Obviously, these things CAN and DO happen.
Protection Starts with Basic Check Security Features Layered features (combination of printed and resident in the paper) verify authenticity and make it more difcult to alter or reproduce. Look
into using chemical sensitive paper, background patterns, warning borders, consecutive numbering, a padlock icon, micro printed borders,
invisible uorescent bers, thermo chromic (heat-sensitive) ink, security warning box on back, or a security screen on back.
Advanced features include foil holograms, toner adhesion, high security background patterns, high resolution border elements, chemical
wash detection area, laid line backer, and true watermarks.
Partner with your Bank for the Highest Level of ProtectionPositive Pay is a service many banks offer. It consists of sending you an electronic le daily of checks that have come in to clear. They provide
check number, date, and dollar amount. You can cross-check this against your records to verify legitimacy and immediately disallow anychecks that don’t match your records. Positive pay can also provide your bank with accurate data of checks you plan to issue so that when
presented for payment, they must match the information sent to the bank.
• Stolen checks• Forged signatures,• Identity thet• Alteration o “pay to” or
“amount elds”• Countereit check stock• Erroneous “ship to” address
• Cashier check schemes• Check kiting, paperhanging• Dumpster diving• Phishing• Hacking• Skimming• Malware
• Scare ware• Phony orders• Bleaching• Scraping• Photocopying• Scanning and washing
Types of Check Fraud include:
Document Security
STATEOFTHEECONOMY
About the author: Karen Price has been a Safeguard distributor since 1982 and specializes in helping companies Manage.Grow. Succeed.® with simple, dependable business and promotional printing that supports your business needs. Her knowledge and experience help create effective results that make an impact for you. In addition to experience working withthousands of types of businesses over the last 25 years, as a long-time student of E-Myth principles and Kennedy-Glazer marketing strategies, Karen Price brings a unique perspective and wealth of information to her customers to partner withthem in achieving their business goals.
by Karen Price
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21 bell• weth•er -noun: one who takes initiative or leadership
STATEOFTHEECONOMY
1. Burdensome 1099 requirement repealed
The Patient Protection and Affordable Care Act (i.e., Health Care Reform) included a very unpopular requirement that small
businesses le 1099s for all purchases over $600 – a rule that would have created many headaches for small business folks.
The February, 2011 repeal was supported by Republicans, Democrats, and anyone who runs a business, although legislatorsare still working out the specics.
2. New credits and deductions
Eligible businesses with fewer than 25 employees can receive tax credits for paying part of their employees’ health insurance
coverage. Self-employed business owners may also receive a deduction for health insurance costs.
3. States are in nancial crisis
State tax revenues are in decline due to the recession. Lack of job
growth means this decline will likely be sustained through 2011.
Over 30 states have raised taxes in turn, some quite signicantly,
and some are creating or raising new fees or assessments, some
targeted at businesses, to help with the shortfall. States may also
choose to up unemployment insurance rates to replenish funds
deleted by those without work.
4. Enforcement efforts are growing
Federal budget decits mean the IRS is on the hunt for non-compliance
to boost revenues. Audits are focused on employment tax,
including executive compensation, employee status,
benets, and other general tax specications.
5. It’s complicated
Not surprisingly, tax changes come with many specic
rules and regulations, and detailed ling instructions.
Don’t go it alone. Good software programs are
inexpensive and help guide you through the process.
Your CPA is even more reliable and can help ensure you
le correctly and on-time.
5Five Things SmallBusinesses Need to Know about
Taxes in 2011
Five Things SmallBusinesses Need to Know about
Taxes in 2011by Alicia Anderson
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Bellwether Magazine | Second Quarter 201122
For Spirit Airlines, an “ultra low-cost carrier” based in
Florida, fees represented 26.9 percent of its revenues.
Some of the more popular (with airlines, not consumers)
fees – and tips for avoiding them - include:
• In-person check-in fee - Online services are replacing
employees, so if you insist on checking in at the airport
in person, you’ll be paying their salaries. Check in online
whenever you can.
• Seat selection fee – If you want to choose an aisle,
window, or extra legroom, plan on paying roughly an extra
$20. Avoid this by being exible about where you sit.
• Checked baggage fees - Delta charges $25 for the rst
checked bag up to 50 pounds. For additional bags or
weight, additional fees apply. Travel light, or sign up for
the airline’s loyalty program. These programs are usually
free, and members get “benets” like free baggage
checking.
• Credit card payment fees – It costs airlines money to
accept credit cards, but many will waive this fee if you pay
with an airline-branded card, like the Delta SkyMiles card.
This fee seems unavoidable, unless you think showing up
at the airport with a stack of cash is a good alternative.
• Comfort fees –Charges for blankets, pillows and food are
already in place. On JetBlue, and pillow and blanket setwill run you $7. Snacks and light meals can run up to $10,
though soft drinks are usually still free. Some airlines have
even considered charging a fee for restroom use. Bring
your own sweater, snacks, and empty bottle to ll at the
water fountain when you get through security. As for the
restroom fee…let’s just hope it doesn’t come to pass.
Those annoying baggage fees or change fees are one of the big reasons
that some airlines reported protability in 2010. Airlines are desperate
to regain revenues in this time of high oil prices and a travelling public
used to cheap internet fares.
by Alicia Anderson
OUTSMART
AIRLINE
FEES! Airline fees stink, but they aren’t
going anywhere for a while, it
seems.
STATEOFTHEECONOMY
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23 bell• weth•er -noun: one who takes initiative or leadership
Finding balance in all things is more of a mind-set than something you physically do.
Peter Drucker wrote “Half a loaf is better than no bread”. I think we have a tendency to
beat ourselves up about what we aren’t doing when we are doing something that we
would rather not. We’ve got to ease up on ourselves and lower our anxiety levels. If youare always looking at the glass half empty, you will feel empty.
Try to catch yourself in the act, and change your behavior. Only you can make the change
and look at your “loaf” as a gift. Finding work-life balance doesn’t have to be about
spending more time on vacation or with your kids. It has more to do with nding the right
balance inside you that allows you to free yourself from - well, yourself. Take time to enjoy
your bread, no matter how much of it you have, even if it is only for a limited time per day.
“Half a loaf is
better than no
bread
WORK LIFEBALANCE
“The true value of a human being is determined primarily by
how he has attained liberation from the self.”
Albert Einstein
Finding Balance
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BLYTHECO
A Blog from Blytheco, LLC
LLC
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