Guest post from Chris Champayne

Customer relationship management centers around three concepts familiar to every business owner:

• Retaining existing customers is cheaper than acquiring new ones.
• Eighty percent of your business comes from 20 percent of your customer base.
• The best new business is referral business.

The premise of CRM is that by identifying individual customers, businesses learn the customer’s specific needs and desires. This allows the business to provide the service that differentiates it from competitors.

The Key: Relationships
The concept moves a business’ focus from the singular transaction to the lifetime value a loyal customer holds. And here’s the dirty little secret: Small businesses can accomplish the objectives of CRM more effectively than big business — and for a lot less money.

Big business realizes the necessity of managing customer relationships. Its efforts to do so have resulted in the development of computer software that focuses on such things. Generally speaking, this software attempts to gain a 360-degree perspective on the customer — that is, to view, gather and learn from all of the customer’s interactions with the company. These software packages typically cost $250,000 (U.S.) and up.

Big business’ fatal error in attempts at CRM lies in the fact that a corporation is incapable of having a good relationship with an individual. Only individuals can have good relationships. This often overlooked fact gives small business the upper hand in all CRM. Most small businesses practice good CRM in their daily routine. The question becomes how to incorporate technology into a CRM routine.

Here’s How It Works
In a town of 10,000 people in the state of Wisconsin, a family-owned hotel has been in business for several decades. The company has a healthy community relationship, complete with a great location.

Being digitally hip folks, the owners of this hotel want to use a Web site as a tool for travelers needing to book a room. And in a stroke of pure CRM genius, they decide they don’t want their online reservation form to simply result in an e-mail confirmation.
Rather, by using a service that converts e-mail messages into faxes, their online reservation form is faxed to their front desk. To make the confirmation, a hotel employee contacts the customer at a time the customer has specified as convenient. Additionally, all customer data, such as “prefers tea not coffee,” are maintained in a database. Total cost for setting up the above-described Web site, fax service and database: less than $2,000.

You Hold the Key
By using technology to funnel customers to a human being, this hotel has unlocked the key to CRM — relationships. And in focusing on relationships, small business can maximize the value of its current customer base while establishing the quality of service that leads to the best new business — referrals.

Customer relationship management is a matter of realizing that the lifetime value of a customer is much greater than the single transaction, then using each interaction as an opportunity to learn so superior service can be provided.

When it comes to CRM, a small business can use its size to its advantage.

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At the end of the day, what is every business trying to do? Grow. More customers, more sales, positive cash flow, larger deal sizes, higher volume, more billable hours, justification for higher prices, etc. Ask any hard-working entrepreneur what he or she is working on and you’re bound to hear a comment related to growth. Why? Because if you’re not growing, you’re shrinking. It’s why we are all in business – to build or create something bigger than ourselves.

The classic growth strategies include partnerships, market expansion, acquisition, product extension, and franchising. While these strategies are well known, how does an organization come to select one over the other as a means for growth? And once decided, how is the company run? Ultimately, I believe growth is determined by providing value to your customers, the people you hire, the processes they develop, and culture you choose to build.

So instead of thinking about the detailed strategies themselves, here are some practical considerations to keep in mind on your constant quest for growth…

Drive the organization with big vision. Growth requires thinking big, then executing like crazy. Success is 10 percent inspiration and 90 percent persistence. But that 10 percent is critical, otherwise the 90 percent is lost, aimless, and unproductive. According to Alvin Toffler, “You’ve got to think about the big things while you’re doing the small things, so that all the small things go in the right direction.” Growth comes from pursuing a worthwhile plan with measurable rigor.

Account for big goals. Every organization sets goals, but sometimes they aren’t big, and sometimes they are not written down! A big vision is achieved through accomplishing big objectives and goals. That’s all execution really is – your organization’s ability to achieve goals. First, objectives and goals must be understood. Everyone needs to understand how they contribute to and impact the goals. Second, they must be measurable and actionable by having someone responsible and a due date. Review regularly and hold people accountable. Create a culture that people that people feel responsible for “not missing a due date here.” That’s all there is to it – it doesn’t have to be complicated, confusing or time consuming.

Celebrate wins along the way. Publicly share big accomplishments, milestone, project completion, revenue goals. This sharing drives growth in two ways: 1) It motivates the people driving those accomplishments to press on. 2) Success and profit sharing breeds confidence, fueling enthusiasm for further growth. Everyone wants to be appreciated and we often dwell on what we failed to achieve, instead of celebrating the small wins. Do something special for yourself and your team. After all, it’s the journey, not just the destination that matters. Enviable growth business happens when you create something with ‘a feeling that we’re in this together.’

Seek out new ideas. Invite left and right-brained people into your organization to create a complete “brain trust” of skills and competencies. You need both perspectives to invent creative solutions, challenge the status quo, find hidden connections, new models, analyze data for discoveries, and explore parallel industries for new methods. Henry Ford could not have grown faster than everyone else had he not borrowed the division of labor manufacturing line concept from a meat packing plant. Walgreens could not have grown as fast had they not changed their approach to increased convenience instead of big stores, big ticket items. Southwest could not have grown had they not reinvented airline service and the hub-and-spoke approach. Challenge conventional wisdom to solve your customers’ issues and pains with non-traditional approaches.

Ignore distractions. In tandem with new ideas, we must focus! This is the never-ending struggle for entrepreneurs – too many ideas, too little resources. In an increasingly competitive environment, growth comes from being great at one thing at a time. Succeed at one thing that you know customers need. That takes focus – focus on the customer and focus on what you choose to do better than anybody. Use your vision as a filter to keep out distractions. If the activity is not line with your big goals, even if it is a good idea, table it and move on.

Empower through ownership. This is similar to accountability, but slightly different. Inside almost every motivated employee is a frustrated entrepreneur. As we know, entrepreneurs like to build and own their work. They are achievement-oriented and take pride in results. Feed these engines with premium fuel by assigning ownership. Recognition is the number one motivator. You can unleash powerful output by clearly defining roles and responsibilities. Give ownership of a key business metrics. Then give that individual or team the autonomy and authority to drive that revenue past the forecast!

Neutralize negativity. There is no such thing as “try”, there is only “do”. That’s the attitude of a sustainable growth company. The question is never, “Are we going to make it?” The question is “What do you need to make it” and the answer is “here’s how we can”. But be realistic. Most growth companies don’t grow quickly without sustaining some damage. Consider how to avoid road blocks and road bumps along the way.

Passion overall. If you’re motivated and excited about what you are doing, people will follow and your organization will grow. This may be the most important element because it is the true spirit behind growth.

Erica Olsen (Erica@m3planning.com) is VP of Marketing for M3 Planning, which helps companies build market-focused cultures through customer-driven strategic planning, empirical market research, and measurable marketing approaches. Her company launched MyStrategicPlan.com, a web-based strategic planning site for small and medium businesses.

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As we head into the strategic planning season, take a few moments to consider the legacy you want your business to leave. Will it continue on indefinitely or pass to your children or employees? Do you plan on cashing out or will it just cease to exist? Many entrepreneurs are not clear about what their businesses will look like without them - leaving their exit strategy to chance instead of intention. Bottom line - the ownership of the business someday will be transferred either due to careful planning, death or unforeseen life changes.

Studies show us that a majority of owners are in denial or just postponing the inevitable. Here who is and a few reasons why you don’t want to be part of the majority:

• Only about ¼ of businesses with less than $200 million in sales have a formal exit/succession plan.
• A study of more than 5,000 franchised business showed that only 24% were sold and 76% essentially closed their doors with some possibly being liquidated.
• A survey of thousands of business owners concluded that most misjudged the value of their business by 50% or more, some resulting in million dollar differences.
• Without a reasonable plan developed, the owner will undoubtedly receive a much smaller financial return than he had considered appropriate.
• A strategic buyer will generally pay a higher price than a financial buyer. Seeking a strategic buyer can require research and extra time.
• Most family businesses need to increase profits or grow by at least 15% to cover the cost of transition.

Knowing your options
Of course the reason why the majority of business owners avoid this entire discussion is because it is not an inspiring topic. But setting a clear exit strategy is imperative to ensure your years of hard work pay off in the end. Knowing your options and a few best practices can make this task seem less intimidating.

Even though exit planning and succession planning are used interchangeably, there is a distinction that should be understood to adequately manage the overall exit process. The first phase is the process of directing how to transfer the business when you exit - exit planning. The second phase is determining who will run the business upon your departure - succession planning. There are basically four ways to exit your business:

1. Transfer ownership to a family member,
2. Sell to employees or other owners,
3. Sell to a third party, or
4. Liquidate.

A frequent question asked is - when should the entrepreneur-owner start the exit planning process? The resounding answer by all experts is - NOW! The ideal timing is when a venture is started, launched or purchased. Numerous long-term financial considerations are developed at the initial stages that will impact operations for years.

Exit planning is an important ingredient of you and your organization’s strategic direction. Consider drafting your own personal vision statement for your business, which includes your exit strategy. This does not need to be shared with your staff, but can guide the strategic growth of the organization.

Six key considerations for exiting
No matter whether the entrepreneur is considering an outright sale or deciding to groom another to lead the business, a strategy is an absolute necessity. Here are some critical considerations to start developing your exit strategy:

• Timing - When is the right time? Timing has an impact on the quantity and quality of buyers.
• Value - What is an arm’s length value for your company? Generally time is needed to maximize the value.
• Succession or sale - What is the appropriate selection process or training that is necessary for a smooth transition? The next section discusses elements of succession planning.
• Income tax considerations - What is the impact of Uncle Sam? Maximizing value requires reducing income taxes as much as possible.
• Separate self (management) from the investment - How will you separate yourself from the value of the business? You want the investment to stand alone, without your involvement.
• Purpose beyond business - What are you going to do after the transfer? Don’t wait until after the sale or exit to answer this question.

Preparing for a smooth exit
Once you’ve determined how you can exit the business, succession planning helps you determine who will run your business upon its transfer. (Naturally, this is relevant for all exit strategies except liquidation.) The key point is to exert input now while you still have ownership and control. No one knows the business better than you - no one. So take advantage of your current situation and provide for a successful succession. Here’s how to make sure it’s a smooth transition:

• Update or establish your strategic plan so it can be used as the guide for your successors to maintain financial stability and future growth. You want your successors to be successful as undoubtedly your financial future is intertwined with your business’s future success. Therefore take adequate time to develop a complete strategic plan so your successors will have a steering wheel to guide the business safely through the competitive marketplace.
• Write a job description for your successor(s). You know well the requirements of the position that you will be vacating.
• Develop a training program for your successors(s). You know the needed skills and knowledge to be competent in your current position.
• Formalize and communicate the plan to all interested parties. Whoever your successor(s) is, there may be disgruntled family members and/or employees. You will need time to resolve sensitive issues. This aspect includes creating all necessary legal documents.
• Create a management or love letter for your spouse. In the event of an untimely transfer, your spouse needs to know how you would handle the situation, what your current goals are, who can be trusted and relied upon in the current management team, and who would compose a dependable board of advisors.

Helpful resources
Developing sufficient responses to these critical considerations and eventually setting a solid strategy can be easier with outside expertise and resources. Best practices suggest that you assemble a group of trusted advisors to help protect your assets and future desires. The group should include the expertise of the following: CPA with estate planning experience, estate attorney, valuation expert, financial planner or money manager, and life insurance specialist. Additionally, here are a few free resources to start the process: www.cashing-out.com; www.buysellbiz.com; www.thebizseller.com; www.inc.com/valuation.

What you can do today
As a business owner, you have goals and aspirations for the business you created. For most of us entrepreneur-owners, we do intend to exit our business someday. Clearly, a strategy is necessary to ensure orderly transfer of the business for maximum value to obtain sufficient resources for your financial goals. Based on the information provided, what are three things you can do to move your exit strategy forward this coming year? To guarantee a lasting legacy, start thinking about tomorrow today.

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Written by Chris Champayne

Ready for anything? Most people aren’t, nor are most businesses. Readiness is not just about disaster preparedness, it is being ready for opportunity, as well as adversity. Readiness is a lifestyle, and any organization reaps the rewards of “all those little things” that seem to add up when the time is right. Just like they pay the price when “all those little things” weren’t done until it was too late.

Little things like examining disability insurance, especially when you’re the sole proprietor, or main principal of your business, and nothing really happens if you’re not functional. Take a moment and imagine that you sustained some kind of injury that kept you completely out of your business for ten days, and only 20% effective for 20 days beyond that. Say a bee sting that got infected and you almost lost your leg. What does your business look like in that scenario?

Little things like knowing exactly what kind of industries you want to play in, and client types you want to play with, so when someone else approaches you for partnership or an alliance, you can readily estimate whether this is an opportunity, … or a distraction.

Little things like reliable back-ups of your data and documents that are protected on site, and a shadow copy off-site. For folks in a hurricane zone, that off-site might be in a bank vault’s safety deposit box, because the news is filled with people who lost their homes and their businesses in one storm.

Little things like knowing what kind of sales person or office manager you’re looking for, and realizing that you just met a person that fits the bill on the plane ride back home from a conference.

We’re surrounded by circumstances and choices. It’s about being ready. And the first step to getting there is to simply focus on what you want, and then create a mental picture of what would fulfill that desire. If your house and your office are in ruins, it’s a lot easier to pick up the pieces when you know the only thing standing in town is that bank vault with everything you need to get back in the game. Ten minutes to burn a CD or make a tape back-up, … or make photocopies. Ten minutes to run it over to a safe place every month or so. It’s not that hard. Even if it all for naught, you never use it or the off-site get wiped out, too, … at least you know you did something.

The real barrier? Procrastination. People often feel overwhelmed by “trying to think of everything.” Stop. The old adage asks: How do you eat an elephant? Answer? One bite at a time. If you’re procrastinating, understand that worry is the source. So ask yourself, what is it about this task that concerns me? Make a list. There’s your “bites.” Eat one. Just one. Then another.

So get a folder out. Put stuff in it. Photocopy it a bit later. Now you have a spare set of those important documents. You don’t have to do it all at once. One bite at a time works just fine. Just do something, because opportunity is on its way and so is adversity. The real question is, … Are you ready for it?

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While we all know it is important to plan for the future, very few businesses actually do. Instead of citing the benefits of business planning and strategic planning, which we’ve all heard, here is a list of warning signs that indicate whether or not your business has a clear focus and if you are ready to be strategic this year.

If someone asked where your business would be in 2007, you would have to think about it. If you asked your partners or management team the same question, you would get different answers. And you would not know what you are doing in 2006 to make 2007 a reality.

Your company will not hit its revenue goals this year. While there can be many reasons for the shortfall, you are not sure how to grow the top line. Maybe it is time to apply the 80/20 rule. Do you know what 20 percent of your customers contribute the 80 percent of your revenue?

There are inconsistencies in your brochure, website, sales collateral, etc. You can’t understand the content. More importantly, neither can anyone else. You find you have to explain your business to a potential client. You are telling different stories about how you provide value.

You’re ignoring your competition. You don’t know who your number one competitor is and what they are doing, who their clients are, what products they offer, their pricing, or key message points. When your customers ask you to explain why your company is different, you don’t have a good response.

Everything on your “to do” list is a priority. You don’t know where your time is best spent.

Friends and colleagues can’t refer you because they aren’t sure exactly what value your business provides and to whom. They often ask, “What is it you do again?”

When you’re presented with a business opportunity, you are unsure how to evaluate if it is something your company should pursue. In fact, you normally pursue all opportunities just in case you might miss the big one.

You enjoy what you do, but you are not passionate about your business. You’d quit everything and follow that passion tomorrow if you could.

Your business development consists largely of attending networking events, but you spend most of your time talking to people you know. And you rely solely on word-of-mouth for new customers.

You don’t know why your customers buy from you. The majority continue to do business with your company, but you’re not sure what keeps them coming back. You’ve never really asked.

You find your clients contracting with other companies for services you provide. When asked, they say they didn’t know you offered those services.

When you ask your employees what success looks like, they don’t have a consistent answer. And your incentive plan does not synch up with performance expectations.

You complain when your customers call because you just don’t have time to talk to them. And you notice your staff complaining too.

You don’t do market research or solicit customer feedback because you know your market. You’ve been in the industry for years and you know customers’ need and wants.
You determine your pricing by looking at your competitor’s prices and discounting slightly. All your prices are based on your competitors’ offerings.

You can’t articulate what your company does best, but it is a good point of discussion at the Christmas cocktail party.

When asked why you are in business, your only response is profit.

Sound familiar? Maybe it’s time to get serious about your business and get focused. Having a strategic plan and, therefore a succinct strategy, brings clarity and focus to your organization. It ensures your time, resources, and actions are not wasted. If every part of your organization is not pointed in the same direction, you’ll end up going in circles – frustrating yourself and your employees. Why not get strategic and make this year your most successful year?

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What’s the number-one attribute Warren Buffet, arguably one of the most successful investors in the world, looks for in a company? “Sustainable competitive advantage,” he told an interviewer. If one of the most successful businessmen of today puts this at the top of his list, you should too. Not only competitive advantage, as a term, widely overused, it is also widely misunderstood. You are not alone if you have ever wondered what a competitive advantage really is and what you do with it. So what is it exactly? And if Buffet examined your company, would he find what he’s looking for? Let’s find out.

The 30-second competitive advantage challenge
Here’s the 30-second challenge to determine if you know your competitive advantage. Ready? Go. I meet you at one of the numerous local networking events and you introduce yourself “Hi, I’m Bob Jones with ABC Company.” “Hi Bob. Nice to meet you. Tell me a little about your company. What is your company best at?”

… 29, 30. Time’s up! Could you answer my question in less than 30 seconds, succinctly with clarity? If yes, skip this column. If not, don’t worry, you are in good company. The majority of businesses are also trying to figure out what they are best at. Honestly this question is hard to answer. You have to narrow your focus more than you are comfortable with. By the end of this column, you will be able to share your competitive advantage with confidence.

What competitive advantage is and isn’t
Often starting with what something isn’t is easiest. Your competitive advantage is not a list of your strengths. Not to down play strengths as these are important too. But if your competitive advantage(s) list is only comprised of strengths it is not a “competitive” advantage. Key word - competitive. If you don’t have a competitive advantage comprised of more than strengths, you don’t compete. You exist.

The management team from a mid-sized financial services group reported that its competitive advantages were:

• Good reputation in the community
• Skilled staff
• Outstanding team and well-respected leader
• Knowledgeable
• Strong client list and loyalty
• Flexible and responsive

Blah, blah, blah. Right? You’ve heard all this before and so have I. Couldn’t you say this about most any professional service firm? This is what a competitive advantage is not. This is a list of strengths.

A competitive advantage is something you do that is unique. The key here is to compete you have to have a unique advantage. Looking at the list from the financial services firm above, you can see that this is not a list of unique stuff. Basically anyone in business today needs to achieve that level of competency just to be in the game.

Think of your competitive advantage as your organization’s DNA - a collection of genes or assets that makes you unique. When you are true to your DNA, you are healthy, fit, and successful. When you compromise your DNA, you feel uncomfortable, slow and are exerting more effort than you should.

Your competitive advantage is what you, your company or your department does better than anyone else. The sustainable part refers to your ability to continue to do those things over a long period of time. And yes, you can have more than one advantage and you can develop advantages as well. You don’t have to possess them all now.

The easiest way to find you competitive advantage is to answer these questions

1. What is my company best at in my market?
2. Why?

By answering these questions, the financial services firm discovered the following are really its competitive advantages:

• Ranked in top 10 percent of money managers who beat S&P nationally
• Fastest-growing American Funds money manager in ‘00, ‘01, ‘02
• Only firm ever featured by American Funds in its advisory newsletter

Wow. Doesn’t that say a lot more than a good reputation and a skilled staff? This is the transition you need to make when explaining the competitive advantage of your organization or department. Here are a few more examples from businesspeople who answered the question “What is my company best at?”

• Sandy, an interior designer, determined she was best at increasing developers’ sales ratio by 35 percent and was the only design team chosen by the top 10 luxury developers in the state.
• A clothing manufacturer named Joe said he was the best at wearable clothing because “Our clothes fly off the racks.”
• The emergency service division of a county in Washington is the best at providing disaster management, response and recovery efforts for all agencies within its’ service territory because of its skilled people and emergency response equipment.

Stating your competitive advantage succinctly
Let’s go back to the fictitious networking event from the beginning. I said you needed to be able to answer the question “What is your company best at” within 30 seconds. It’s time to try it again using the formula below.

What do you do with it?
Now that you have figured it out, what do you do with it? When you really have it nailed down, it will help you and your staff know:

• Which opportunities to pursue and which to pass by
• Where to allocate resources and where to cut back
• How to do what you already do well, better
• Know the difference between an opportunity versus a distraction
• When to outsource (to another department or externally) and when to keep it in house

You can run your business without a clear understanding of your competitive advantage, but it will be for not. Why? Because mission, vision, goals, and objectives tend to change and shift over time. Your competitive advantages, when you have identified them, will endure and grow stronger. You may choose to use them in different ways, which is why the other elements of your plan tend to morph. But what makes your company unique will stay constant.

The leading organizations in this world have a razor sharp understanding of their competitive advantage. Everything they do builds and nurtures their DNA. You don’t have to be a Fortune 100 company to be that effective and that good. Running your business on the basis of your competitive advantages is the most important thing you can do as a leader of your organization or department. (It’s especially important if Buffet stops by.)

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Running a business today is like sprinting towards a finish line that is just out of reach. It can leave you gasping for breath, exhausted and overwhelmed. But it doesn’t have to be that way–not if you discover your company’s X factor. That’s what allowed company’s such as Starbucks, WR Hambrecht, Bikram Yoga and University of Phoenix to dominate their industries or markets. By finding their X factor, specifically the advantage that put them at least two times ahead of competitors in a key area like customer loyalty or employee retention, they left their rivals miles behind and unable to catch up.

What is exactly is an X factor? It is using your company’s unique skills and resources to implement strategies that competitors cannot implement as effectively. Also known as a competitive edge. It’s the secret ingredient(s) that can help you run faster, see the finish line more clearly, cut out the clutter, and focus only on what will help you ultimately reach success.

To build a business that dominates, you need to discover that competitive edge that puts your company ahead of its competitors and provides value to your customers. A closer look at some well-known companies and local small businesses will provide you with some ideas where you might find the basis for your X factor. Some X factors seem so logical. But if your competition is not doing it, it’s a competitive edge no matter how simplistic. Additionally, the X factor for most of the companies below is a combination of elements.

Breaking the Mold:
Break the mold by revamping a product or service, developing a new process, partnering with your competitor, selling to customers you would never dream of reaching, reorganizing around customers instead of products, or productizing your service. If it has never been done before, ask why and can I deliver value to my customers?

Who is doing it? WR Hambrecht changed the institutionalized IPO process that only allowed connected investors to get in on the ground floor of public offerings. The company created OpenIPO, an online auction system that allows all interested investors to participate in the pricing and allocation of IPO shares. In the face of fierce competition from Wal-Mart and eBay, Best Buy is reorganizing its stores’ product offerings and layout around five specific customer types. By implementing this unique, never-been-tried organization, Best Buy provides more value and creates loyalty by serving these specific customers better than any one else.

Leveraging IT:
It has often been cited that information technology contributes to business profitability through reduced costs, better control of scarce resources, and increased customer satisfaction. Studies abound that indicate that those companies that invest more in IT relative to others in their industry are the most likely to outperform their competitors.

Who is doing it? University of Phoenix coordinates its 21,000 faculty members and 200,000+ students through its extensive online infrastructure. All curriculum and textbooks are digital as are all class management tools, grades, learning resources, and online tutors. Across the globe faculty and students login to the same system, increasing efficiencies university wide, timeliness of educational material, and consistency of teaching. A local Reno service firm has integrated its time tracking and invoicing system into one seamless process. The result is minimal lost billable time, detailed invoices (which clients love), and a high efficient invoicing process. Bills are in the mail on the first of the month, it’s A/R cycle is reduced, and cash flow increased.

Niching Out:
Expert knowledge and customization are hot trends. On the service side, becoming an expert in an industry is a long-term strategy, but you create an edge by building a knowledge base and relationships in a specific industry that can be impossible for others to replicate. On the product side, providing exactly what the customer wants can be difficult to achieve in a cost effective manner, but not impossible. In both cases, you will outperform your competitors because you are delivering unmatched value to your customers.

Who is doing it? Nationally, the computer industry has become commoditized. But Dell left everyone in the dust with custom-built PCs. Locally, the staffing industry is becoming more and more cluttered and competitive. Instead of going head-to-head, a local staffing agency has decided to only recruit and provide talent for a specific, niche business function.

Delivering Consistency:
Customers expect to receive the highest quality product or service every time they do business with you. No matter what the industry, delivering consistency can be a competitive edge that is hard for others to copy. The trick is to understand what about your business sets the expectation and how to create a process that ensures consistency. Consistency leads to customer loyalty, increased brand awareness and repeat business.

Who is doing it? Starbucks is the shining example of providing a consistent experience every time, everywhere. Bikram Yoga is a franchised yoga company (there are two in Reno/Sparks) that offers the same, unique yoga class in every studio across the country.

The companies cited above have, by and large, realized above average returns due to an increase in revenue and reduction in expenses. They focused on developing and growing that competitive edge by continually investing resources into improving it.

You also should make it a top priority to find your company’s X factor and put it to work for you. In fact, failing to develop an edge puts a business in danger because it is easy to get off course. Fortunately, there are unlimited ways to find an X factor. The key is to pull yourself away from day-to-day operations long enough to think more broadly about your business. And whether you find your strength in doing something differently, leveraging IT, finding a niche, being consistent or filling a void, by maximizing your X factor, you can catapult your company into first place.

Erica Olsen (Erica@m3planning.com) is a principal of M3 Planning, which helps companies build market-focused cultures through customer-driven strategic planning, empirical market research, and measurable marketing approaches. She is also an instructor and a writer.

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Execute, execute, execute! That sentence (fragment) is terrifying on so many levels. Not only does it bring to mind pictures of being blindfolded, given a last cigarette, and placed in front of a firing squad, but even more scary it means once you craft a strategic plan you’re expected to make it happen.

Planning is one thing, but how do you make sure your plan gets implemented? There’s a secret to executing strategy. It’s not magic, and it’s not hope. If you’re anything like me, no matter how many times you’ve called the psychic hotline, or begged the universe to accomplish your strategic initiatives, you’ve noticed that something is missing.

Well, don’t be sad. Erica has come through yet again with a fantastic, concise whiteboard video that will show you how to get your strategy done. No more guessing what will work, no more pointing fingers when your objectives fall flat- this video will give you the tools to quit relying on the plan (or the universe) alone to accomplish your vision.

Thanks for watching and as always, feedback and questions are encouraged.

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Performance management is a problem. More specifically, how most people approach their own performance management is riddled with pitfalls. This is evident with the torrent of self-help and self-management books that have gained popularity, the increased talk of inbox management and especially in the colossal failure of the once heralded term, “multi-tasking.” Everything points to a lack of ability to effectively manage ourselves.

So, why do so many people try so hard to manage themselves and still fall short? Most people want to perform. They want to accomplish great things, but never seem to catch up on everything they are given to do in the course of a day. How many times have you said to yourself, “it’s five o’clock and my to-do list is bigger than it was when I got here at eight?”

For most of us, it’s a matter of overhauling our personal performance management systems, and finding a way to avoid the following five traps that so often trip us up:

Failure to see the big picture

Your performance management system should have a reason behind it. If you’re reading this, chances are that your current system, if you have one, isn’t working to some degree, and this is the most common reason. Instead of just jumping into your mountain of tasks, stop first and ask yourself”why am I doing all of these things?”

There must be a reason why you work. The answer for you may be your children, or your career goals, or because you want a better standard of living. Whatever the reason for your work, you need to keep your eye on it or else eventually you’ll lose motivation. Big-picture thinking allows you to create a plan inside which you can structure a performance management system.

Setting inadequate goals

Do you believe that there’s a right way and a wrong way to give yourself tasks? A great goal, or a SMART one, is specific, measurable, attainable, has assigned responsibility and has a due date. Failure to concretely lay out when you’ve reached the goal can cause it to stretch on forever, just like failing to set a measurement ensures you’ll never know when it’s done. The cliché that says when you aim at nothing you hit it every time is wrong- plenty of people get a few things done without SMART goals, but you’ll never tackle your mountain of work that way.

Using your head- rather than a trusted system

Depending on your memory to manage your tasks will lead to missed deadlines and frustrated bosses. Why? Because we’re not designed to work that way. Our brains get cluttered with all of our uncompleted tasks while trying to also focus on the tasks at hand, eventually mixing all of them up. The answer, according to Productivity Guru David Allen, author of Getting Things Done, is a system you can enter all of these tasks into. “Get everything out of your head,” Says Allen, “Make decisions about actions required on stuff when it shows up — not when it blows up.”

Crucial to being able to get things out of your head as tasks and make decisions on how to approach them is having a system in place that you trust. Whether it’s a notepad filled with lists or a performance management software application, find something you trust and rely on it.

Going at it alone

Accountability is a powerful thing, but it doesn’t always have to come from our boss- in fact, it shouldn’t. If you’re having trouble getting things done in a timely fashion stop and think, “who holds me accountable and how often?” Bosses are great to have around, but they shouldn’t have to track you down and ask you what you’re up to all of the time. Letting your peers know what you’re working on can be a much better incentive to accomplishing your tasks.

Friends, family and co-workers who know the goals you have set for yourself have a greater chance to inspire you- even without them knowing it. Sometimes, just knowing that you’ve broadcast your goals and action items to others is enough accountability to motivate you.

Forgetting to take care of yourself

As a recent study has shown, even the strongest, most resilient people have a limited amount of will-power. If your will-power gauge isn’t monitored, you can actually run out of personal-motivation gas. Know when you need to take an occasional break, and you’ll find that getting things done over a longer period will become easier.

In addition, know how and when to celebrate your victories. Rewarding yourself, even in small ways, can keep you internally motivated. Whether it’s a 15 minute break, a treat or a vacation in the Bahamas, some of us need rewards to train ourselves much like Pavlov’s dogs.

Internal Advertising:

For more information on performance management, you can check out some of our other articles, or try a free trial of MyStrategicPlan, our online web application that helps your employees avoid the PPM Pitfalls by:

• Creating a big-picture plan
• Setting SMART goals
• Keeping track of tasks in a trusted system, and
• Keeping everyone informed on the status of goals and tasks

CC Photo Attributions:

• San Francisco from Air 3 by BrockyVicky
• Fail Georges by Mr. dale
• Hipster PDA 0 by Andy Ciordia
• Alone on His Path by Rantes
• coconut jewel cupcakes 1 from Chotda

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What is your competitive advantage? Have you taken the time to craft a statement for your organization that clearly defines how you serve your customers’ needs better than your competition can?

In this whiteboard video, Erica Olsen lays out why you should define your competitive advantage and how to do it. In minutes, you can learn how to create or revise this powerful component to your organization’s strategy!

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