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Thursday, April 29, 2010

POWER THOUGHT OF THE WEEK: Powerful Words, Part 2


Power Thought of the Week with Patricia Parham, Ph.D


Powerful Words are not Neutral

In an effort to be polite, neutral words often replace negative ones. Saying a speech was interesting or an idea is novel, fills an empty conversational space. However, these words do not state an opinion around which others may join. In networks, the goal is to connect and engage with authenticity. Platitudes and vague comments waste time and energy -- yours and the recipient’s. Neutral words show weakness. Don’t hide behind them. If you don’t know, say so. If you don’t like something, tactfully say so and why. People can only choose to agree with you when you take a stand. Pick an issue important to you and start a blog. Voice an opinion.


Patricia A. Parham
Parham Enterprises
www.parhament.com


For more information, please visit Patricia's TNNW Bio.




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KALÖN WOMEN: IQ + EQ = LEADERSHIP - The New Decade’s Must Have Skill








Guest Columnist - Dickie Sykes


During my years in the corporate world, I was surrounded by extremely smart people. I worked in an industry where many of my colleagues had advanced degrees in construction management, or structural or electrical engineering. They were left-brain builders of buildings -- the kings and queens of New York. Their rise to the top was due to hard work, strong technical skills, their alma maters’ reputations and social networking.

I’m not talking about the kind done on the Internet. They used face-to-face Jack Daniels and martini sipping in bars and restaurants in addition to butt-slapping and joke-telling on golf courses. Their leadership skills were determined and rewarded by concrete, measurable and immediate results: adhering to schedules and saving clients time and money. Every now and then, discussions of talent development, emotional intelligence, social responsibility, philanthropy and sustainability where brought up in mere grumblings or whispers. To enter the ranks of executive management today, leaders must not only talk about those issues, they must fundamentally understand that tomorrow’s leaders must tap into characteristics long underutilized.

In Daniel Pink’s book, A Whole New Mind: Why Right Brainers Will Rule the Future, he wrote: “We’re moving from a mindset that values logic, analysis and cold, hard facts to a way of thinking that prizes 'softer' characteristics like creativity, inventiveness and empathy. These skills have become first among equals in a whole range of business fields. The good news is anyone and everyone can tap into the abundance that exists in the right side of our brains.”

Hmmm… I distinctly remember the subliminal messages of corporate America: “Soft” skills never lead to line positions because they do not generate revenue and what doesn’t generate revenue is not valued or respected. In a 2009 More magazine article titled “The Visible Woman,” the mother of a Harvard graduate told her daughter not to go into anything that isn’t a line position. Now, they’re telling me people who exhibit right-brain characteristics will rule the future.

Thankfully, throughout my career, I never internalized those subliminal messages and fully utilized and exhibited the characteristics of both sides of my brain. In hindsight, I was, and continue to be, right-brain dominate. I don’t believe left-brainers will no longer be a highly valued commodity; however, in order to become a future leader, exhibiting both brain hemisphere characteristics is imperative.


The Future of Leadership

(1) IQ + EQ will be the gold standard

Future leaders will no longer be judged solely on IQ but on a combination of IQ and EQ. Emotional Quotient describes the combination of self-awareness, authenticity, resilience and understanding the emotions of others.

These qualities make great leaders. Success will require more than a high IQ, which tends to be the traditional measure of intelligence. In a Business Week column by Jack & Suzy Welch, they stated, “A misstep we’ve both taken is hiring a candidate who’s smart and capable but just too lacking in emotional intelligence, EQ. This particular young man had a lot of the right stuff, but when he started telling us he had never made a mistake in his life and didn’t expect to, we knew we’d heard enough.”


(2) Top performers must have broad experience

Top leaders will need to take on assignments that are completely outside their comfort zones. Those identified early as leaders will move through a succession of jobs as they work toward the top. Like never before, they must be prepared to manage, train and lead a multicultural, multi-lingual and multi-generational workforce with customers and division leaders located all over the world.

The best international companies are investing millions of dollars in not only technology but in human capital. In an information-based economy, companies send top performers on global assignments to learn operational procedures and cultural norms. They ask company leaders to serve on non-profit boards. They’re thinking about social responsibility and all right-brain stuff, or dare I say, after the fall of Wall Street, The Right Stuff. Modeled after the Peace Corps, IBM’s Corporate Service Corps develops employee leadership skills and sparks socioeconomic growth in the developing world. IBM and other companies want top performers to have global perspectives because future growth and expansion will occur outside the United States.


(3) Top performers must foster greatness in others

Tomorrow’s leaders are global ambassadors who understand man’s common humanity. They’re inquisitive visionaries who create team buy-in, keep up with technology, foster greatness in others, and assembly top-notch teams to move their philosophies forward. Top performers will be judged on how well they produce future leaders. They know they must expand their visions of leadership and give their diverse teams training, flexibility, responsibility and perform due diligence with succession planning. They give responsibility but know the buck stops with them.

Tomorrow’s leaders will have developed and utilize the characteristics of both IQ and EQ. They’ll be academically smart, resilient, compassionate, worldly, authentic and self-aware -- the cumulative characteristics that make a great leader.


(4) Modern-day examples of leadership

Still not sure what IQ+EQ looks like? Look up or Google Timothy Russert, Tony Dungy or Anne Mulcahy, and read their biographies. Better yet, talk to people who worked for them. Tim Russert, managing editor and moderator of “Meet the Press” and NBC News’ Washington bureau chief died on June 13, 2008 at age 58. When Senator Daniel Patrick Moynihan interviewed Russert, Russert said, “You have all these Ivy League smart people around you, you don’t need me.” Moynihan replied, “What they know, you can learn, but they can’t learn what you know.”


(5) Leadership lessons

Leaders will admit to having made mistakes and exhibit courage and fortitude to correct them. They’ll ask for partnership and drive change. Great leaders know they cannot do everything and must work with and get along well with others. They must be team players who know how to manage, lead and prepare others for great responsibility.

Remember: the evidence of a great leader will be determined by those who rise along with him. Big Tim, as he was affectionately called, Anne Mulcahy and Tony Dungy, former head coach of the Indianapolis Colts, brought many up the ranks with them. They were liked and respected by even their fiercest competitors. There are seven African American coaches in the NFL currently and Tony Dungy brought in three of them. Anne Mulcahy, former CEO and current chairman of Xerox Corporation worked side-by-side with subordinates and was known for her ability to create "followership." Enough said.

Bio:

Dickie Sykes is a former construction executive and CEO of DGS Consulting LLC. She reinvented her career and relocated her business from New York City to Atlanta, Georgia. For more information on DGS Consulting, contact Dickie@dgsconsultingllc.com

To learn more about the company or to purchase its how-to products on job interviewing, call 404 567-5790 or log onto www.dgsconsultinglllc.com. Korean Americans, log onto http://korean.dgsconsultingllc.com.

One dollar from every CD purchase will be donated to the American Red Cross/Haiti until June 12, 2010.

ABOUT KALÖN WOMEN: The mission of Kalön Women is to provide answers and raise awareness of issues and causes that affect women 40+, so that they will be stronger from knowledge gained, and the generation of women who follow in their path will hopefully find it less rocky. The articles, stories, poetry and other written expressions in Kalön Women are created by real women 40+. Written to inspire, help and perhaps provide a few laughs to all “women of a certain age”.




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Tuesday, April 27, 2010

VENTURE FINANCING – REALITY VS. RUMORS: About Angels & VC’S

Venture Financing - Reality versus Rumors with Dick Brown


I belong to several “special interest” groups on the Internet, generally those relating to entrepreneurs and financing. On one of these on LinkedIn had a simple inquiry:

Where can we find investors in the United States that would be interested in helping us fund our venture?

It was late on Friday. I’d had a good week and was in a wry mood. I replied:

Go to New York. Rent a room at the Plaza. At cocktail hour go to the Oak Bar. It will be jammed with people. At least 75% of all the ones you see in this room have adequate funds available to help finance your deal. Bring your lawyer for the closing details.

Although impish, my comment was quite accurate. Even in today’s environment, it isn’t hard to find people with money that might be interested as an investor. The easy part is finding where they gather.

The trick is selling them.

There’s an old sales adage that says: “In order to sell anything, you first ask the potential customer why they’d consider buying your wares. Then you sell to them, based on what they just told you”

In earlier columns, we’ve talked a lot about many different kinds of investors. You already understand the people that comprise your “3F’s”. Few of you will require the huge capital amounts available from merchant banks. So, most of you will require funding in the ranges supplied by either Angels or VC’s. Here’s some clues on … “why do they buy?”


Angels & VC’s - What They Have In Common
They are both sophisticated investors and require that you have:
  • Excellent profit potential,
  • A good business plan,
  • A competitive product or service,
  • An excellent marketing opportunity,
  • An experienced management team.
The other things they both like:
  • A proprietary product or service, preferably protected by patents, trade secrets, copyrights or unique market timing, know-how and contacts of the principals in the venture.
  • Growth potential: large and fast. Able: to reach $25 million to $50 million in sales in 5-10 years.
  • High return on investment: at least 20% to 25%.
  • Management comprised of seasoned, experienced pros with track records in successfully making money. The venture also has some members of "the club" - people who are already connected to the money community and/or its support staff (lawyers, accountants, bankers etc.)


Angels & VC’s - What’s Different between Them

1. Size of investment:



Traditional VC InvestmentsAngels/Other Adventure Capitalists
21% are under $2,500,00090% are under $1,000,000
7% are under $1,000,00082% are under $500,000
2. Other Issues:


Venture CapitalAngels
Time to make a commitment:SlowQuick
Number of sales leads needed:ModerateMany
Whose money?OPMTheir own
You meet at:Their officeA private, secure place
“First Man In” Leverage: *Very HighMedium
Networks:Huge, NationalSmall, Regional
Ease of Finding:Very EasyModerate to Impossible
Tolerance for putting in more money:HighModerate

* Note: In any sales situation, the first sale is always the toughest. From that point on, the salesperson can always say: “Mrs. Jones bought one and absolutely loves it! Would you like to talk with her?” (i.e.: your “singer”)

Due to the basic characteristics of VC’s, getting one of them to commit to the deal makes it much easier to rope in the rest. As mentioned, the first-VC- in may also bring others with them as a syndication.

For angels, having your first investor is nice, but not nearly as powerful as a sales tool. The angel probably doesn’t know your first investor personally and usually doesn’t care.

Amazingly, I have had angels invest in the early stages that never even asked if anyone else was already in!


The Biggest Difference
For our sales activities, we are going to take advantage of the largest difference between VC’s and angels. VC’s belong to a very large, interlocked club. There is an enormous, day-to-day exchange of information between the members of this club. The motive of every member is to make money for their VC firm and if they find a deal to do this they act, sometimes very quickly. If not, they may refer the opportunity to other VC’s or angels in case the other parties might be interested.

This is also the reason that I urge entrepreneurs that seek funding to include many VC’s in their prospect lists even if the amount they seek is relatively small and could be fulfilled with only one. If you have a good idea for your venture, it’s possible that a mailing to VC’s may wander through a number of hands to ultimately find the VC company, angel or corporation that is very interested.

Conversely, angels are not closely linked (except for the angel clubs and associations) and they are not interested in making money for anyone except themselves and an occasional friend. Contacts/mailings to angels do not have the same potential multiplier/leverage factor than for VC’s.


Another Difference … Time To Market


The graph above shows the typical growth curve of any new product or industry in the US. The left-hand side represents the time of greatest risk and greatest rewards. Companies that enter the market here traditionally sell to the “early adopter” customers. Clearly the major risk is that there may not be enough demand from the early adopters to support the company or other market suppliers. Companies and products regularly fail in this space.

The middle portion of the graph (bars) shows a substantial growth in sales, with demand outpacing supply. Most companies earn their highest profits in this phase.

The right-hand side of the graph shows the products and markets in a near-stable condition. They have reached their “natural peak” and from this point the companies that survived the earlier battles and the larger companies that entered late in the game supply the market. This market is often one in which the majority of suppliers compete solely on the basis of price. This is a tough place for the smaller competitor.

Angels like to play with companies in the left hand side of the graph: Very high risk, very high rewards. This usually terrorizes the VC’s, but sometimes they get right back in that game, looking for huge returns from a handful of investments.

VC’s favorites are still those companies that survived the early stage and are in the middle portion. It’s a lower risk, but still pretty good rewards. Angels will invest in this stage as well. On the right hand side of the graph, neither VC’s nor angels are likely to invest*, unless your company is one of the winners in the market and needs additional capital (“bridge” or “mezzanine” money) to get to an IPO.
* Exception: You might have a chance for financing if your plan has some unique idea that will position your company in a secure niche within the mature market and also make your venture very profitable due to the large, proven, active demand for products.

Market Differences
Angels will invest in anything and often for “cosmic”, not-totally-rational, reasons.

VC’s are focused and disciplined. Generally, their favorites are:

Software24%
Medical Devices13%
Biotech10%
Green Technology9%
Internet Specific9%


Your Closing Rate - Summary
One major, Northeast VC receives over a thousand business plans in the course of a year. They invest in around 10 deals. If you're trying to use this VC to raise money, you've a 1% chance of success. When it existed in the .com space, the conglomerate CMGI, received over 1,000 business plans a month.

How do you get to be one of the lucky few?
  • First - Work very hard and show your venture to many, many of the potential capital sources you’ve selected.
  • Next & Simple - find out what your VC community wants and then sell it to them! Use exactly the same technique with angels.

What's the single, most important thing both want?

They want to make a lot of money!!

Yet, not one business plan in 100 shows how the particular venture will make money ... and, preferably obscene profits, with a minimal investment. Ironically, many plans show how the venture will lose money until some, long-away future time when the red ink finally stops.

Show any angel, investor or businessperson how they can make a lot of money and you'll have their undivided attention!


The Odds
Let’s imagine that you decide to blindly follow all the rest of the sheep and choose only to consider venture capital financing. Further: You throw my columns away; fail to read books or follow anyone’s advice; don’t bother with a good business plan; and, insist that you’re going to trust your “gut instinct” (what you’ve read about the wild success stories of teen-age billionaires depicted in the San Jose Mercury.) You just know that the VC’s will love you and you’ll do your IPO in less than a year.

If you take this “path worn thin by the ignorant”, here are some of the odds:
  1. There are 10 “high-tech hubs” (Austin, Boston, Boca Raton, Chicago, Los Angeles, New York, Raleigh/Durham, San Jose/San Francisco, Seattle and Washington, DC.) Some 70% of all venture capital investments are made in or around these hubs. If you’re not in one of these markets, the VC odds are already against you … most VC’s funds deal solely in their geographical area since it’s easier (and cheaper) to monitor the investment.

  2. “Not even 1% of the 300,000 or so companies growing at 20%+ a year (e.g.: Inc magazine’s “Private 100”) are backed by VC’s”.

  3. During the .com frenzy a “swinger” VC, WIB, (Laguna Beach, CA) was shown 200 deals a month. They reported doing less than 2% of these (That’s 4 deals/month, folks!).

  4. The VC firm of Draper Fisher Jurvetson, based in Menlo Park, California with affiliate offices in more than 30 cities around the world gets 10,000 business plans a year and backs some 15 deals. (.15% ... That’s point 15%!)

  5. Only one of thirty companies that receive venture capital financing ultimately goes public.

So, based on these numbers, the odds on getting VC funding and going public is far less than 1 in 25,000.

By comparison, your odds of “Death by Lightning in the US” are 1 in 17,400.



NEXT: IMPROVING THE ODDS AND WINNING!


-30-



For more information, please visit Dick's TNNW Bio.




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REAL ESTATE… AND OTHER THINGS OF VALUE: Quiet Please: I Need to Figure This Out

Real Estate… and Other Things of Value with Yossi Feigenson


There is an old saying in marketing: half of marketing works and the other 80% are wasted. (I’m not too crazy about old sayings nor am I an expert in marketing). The problem of course is we don’t know which is which.

At no time is this adage, sprinkled with a bit of Yogi Berra, truer than in our current loud and noisy marketplace. Never before have there been so many channels of marketing and advertising vying for our attention that it has become virtually impossible to streamline ones modes of receiving information and keeping abreast of the essential issues that directly affect ones life. This applies as well to finding effective methods to properly market your own business and generate sales.

I’ve been thinking about this quite a bit lately. I’ve also written an article about how sales people have been doing pretty much everything they possibly can to promote themselves, from networking to blogging, to email marketing and even canvassing and yet can’t seem to make any headway. We’ve been throwing the big net but the catch seems fleeting.

As so often happens to me, when I’m in need of clarification and edification of certain thoughts and ideas, something I read or hear helps crystallize it and bring it together.

As I’m trudging through another uninspiring early morning breakfast meeting I strike up a conversation with a gentleman who’s new to these parts. Turns out he’s one of those brilliant technocrats, the type who writes those new “apps” for the Ipod/ipad/itouch/iphone. So he says, and I quote: “there is no algorithm that exists in this world that will tell us exactly what a person wants or needs”. Our desires stem from a place that is beyond our natural intellect (a Kabalistic concept, by the way) so it’s nearly impossible to accurately lock in on an exact method of sending a message.

We are all searching for something, seeking the life that we want, but it’s impossible to actually know what it is we want. The factors that trigger desires are not exact, and not always rational. The best marketers have figured out that to get to people you need to go to a place in them that is beyond logic. How else does one explain the phenomenon of Apple, or paying a cool million for a “studio” apartment for a home? This is what we call tapping into a consciousness that is beyond our rational thinking and decision making.

Over and over again I see that our decisions are so often not governed by sane rational thinking, but rather by impulse and mood of the day.

If you’re still reading, I hope you see that this essay is not about marketing; at least not completely. It is about finding, discovering and listening to our inner message about who we are and what we can and should be doing. It is about what information we are putting into us, thus in response, directly affecting the output that comes out of us. It is about learning how to tune out messages and noise that are not of benefit, and can be harmful to us. It is about finding that thing, that unique thing, that makes us stand out, and the value it adds to others.


For more information, please visit Yossi's TNNW Bio.




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BEYOND NETWORKING: BEING: The Power of Making the Connection

Beyond Networking: Being with Ron Sukenick


In the book, The Power of Flow, Charlene Belitz and Meg Lundstrom share ideas on how you transform your life with meaningful coincidence. They talk about a day in which you make every green light and slip effortlessly into a parking spot in the most crowded part of town.

You make a to-call list, and the people on it call you first. You turn on the radio just in time to hear the exact information you need. As you think about a new career direction, you bump into a friend you haven’t seen in years, who tells you of an exciting job opportunity.

These coincidences are called synchronicity, and according to Belitz and Lundstom, are sure signs that you’re in the flow; we say that you’re in tune with making the connection.

Making the connection is hard to define. It’s a higher force at work that seems to help align intention with outcome.

Regardless of how you describe the term, psychologist Mihaly Csikszentmihalyi says it well when he defines being in the flow as “optimal experience, a state of concentration so focused that it amounts to absolute absorption in an activity.”

Synchronicity is the coming together of inner and outer events in a way that cannot be explained by cause and effect, and that is meaningful to the observer.

Synchronous events are possible each and every day.

The more aware we are of our self and our surroundings, the more likely it is that making the connection will occur. Possessing certain internal characteristics will help strengthen the possibilities for these synchronistic connections to take place.

  • Commitment: Your commitment to your own growth and expansion keeps you tuned in to what is constantly possible.

  • Mutuality: You want for the other as you want for yourself. Mutual regard and mutual success permeates the exchange.

  • Courage: You are willing to take the risk to reach out to others.

  • Focus: You remember your aim as you move throughout your day.

  • Passion: An intense, driving feeling moves through and with you.

  • Immediacy: You have the quality or state of being “ready,” of being able to respond in the moment.

  • Openness: You are receptive to ideas and people’s feelings.

  • Positivism: You focus on the positive in ways you connect rather than individual differences that disconnect.

  • Giving to the World: Promoting the best possible outcome for your partner separate from your self.

Connecting the Dots

Connecting the dots from a relationship “feeling” standpoint is intangible. It’s the synchronicity described above, calling for focus, clarity, and direction, as we move toward mutual results.

The Law of Gravity states that every particle in the universe is attracted to every other particle. Gravity is what organizes things on the microscopic level. It’s what holds things together -- the solar system, the galaxy, the universe. What dynamic causes this to occur on a human level? Perhaps it is the same gravitational pull, metabolic attraction and biological forces that operate on a universal level.

We are part of an interdependent and ever-changing community. From time to time, I feel a connection when I meet someone personally or professionally who I would like to know further. This feeling takes us into the relationship and helps me move toward connection: a feeling energy that illuminates the path before me, causes excitement, and even feels mysterious or mystical. I cannot argue with it! Who are you? Who am I? What is possible between us? Now, you might be wondering if I am talking about a personal connection here. Yes, I am. And this feeling energy is present in business relationships as well.

As you go about your day, notice the flow you are in and all the connections you can and are creating.


Ron Sukenick
Business Advisor / Relationship Strategist / Author / Connector
rs@ronsukenick.com
www.ronsukenick.com
317-216-8210
Check out my Radio Podcast’s
http://www.smallbizamerica.com/beyond


Let's get connected on LinkedIn
http://www.linkedin.com/pub/ron-sukenick/0/226/20a


“Certified Human Behavior Consultant”
Nominated 2009 "America's Most Influential Business Connector"


For more information, please visit Ron's TNNW Bio.




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CONNECTING IS NOT ENOUGH: It's a Question of Trust - A Conversation with Vanessa Hall, Part 1

Connecting Is Not Enough with Andy Lopata


“Building and retaining trust is the cornerstone of every business and personal relationship.”


The quote above sits inside the jacket of Vanessa Hall’s book, The Truth about Trust in Business, and highlights the importance of trust in networking. With networking being founded on relationships, one could argue that trust is the "cornerstone" of networking, and I don’t think you would find many people who would argue.

Certainly not Vanessa Hall. Vanessa is the Australian-based Founder and Director of Entente Pty Ltd and an award-winning speaker and author who advises everyone from individuals to major global organizations about the importance of trust.

On the 3rd of May, Vanessa is launching the International Day of Trust with the aim of "getting trust into the hearts and minds of people around the World." I took the opportunity to ask her a few questions about the importance of trust and the different ways in which we trust others.


A: Tell me a little bit about your business. It’s clear that trust is at the core of all that you do.

V: It’s everything that we do. We’ve only been around for four years, so still babies in the trust world, but in the beginning we made quite a big impact. I work with businesses but also with personal relationships and more broadly in communities. It’s now expanding into international relations, so we’re working at a very senior government level and with the UN.

Probably the key difference with what I do versus everyone else is how I define what trust is. The model that I use actually describes in a visual and a structural way how trust is built and how it breaks down. This description sheds a lot of light for people in relationships, whether those relationships are business or personal, in terms of what might have gone wrong in the past, how to get better at communicating and how t actively build trust on a daily basis.

A: Can you give me an outline of the model of trust that you use and the different types of trust?

V: The first thing I noticed when I was doing a lot of research on and asking a lot of people about trust was that it’s a word that we use all the time. Everybody in business that we speak to will say, “Yes, trust is critical to my business. I need trust with my customers, need trust with my staff.” Yet when I asked people, “What is trust? How would you define it?” I got so many different responses, it wasn’t funny.

I found that when we talk about trust we’re often talking about different things. When I asked people who said that trust was critical in their business, “What do you do? How do you build trust?” less than 5% of the hundreds of people that I spoke to in the early days said that they actually did anything.

The reason they said they didn’t do anything was because they didn’t know how. There’s no practical guidance or model really for how to go about building trust, so that’s where the conflict started for me. I looked at where there is trust and where there is no trust. I looked at when trust breaks down, and when there is trust and, what does that feel like for people. I worked backwards to come to a definition of trust.

So the way I define trust is that it’s our ability to rely on a person, a group of people, an organization, or on products and services to deliver a specific outcome. There are actually thousands of points of trust in our day, every single day. And we’re often unaware of those. Everything from the alarm going off in the morning to wake us up, the shower being hot enough, the toothpaste tasting the way you want it to taste.

We generally just trust that all those things are going to work for us and play the role and deliver the outcome we expect from them. We become aware of it when that outcome is not delivered.

Then I looked at what it is that we actually want. What happens that makes us feel good and what happens that makes us feel bad? And I came down to these three core things that I talk about.

The first is understanding that we have expectations. Those expectations come from previous experiences, if we’ve had a previous experience with that person, that organization, that product or that service. It comes from things that we read or things that we see. Marketing material, for example, creates expectations of what our experiences are going to be like.

It comes from things that other people tell us. Referrals actually create expectations about our experience. And they come from what I call “similar experiences.” I’ve had an experience with one bank, therefore I think all banks are going to be the same. I’m going to have the same experience in all of them, so it’s going to be generalized.

So we all have these expectations, but we often don’t articulate them. We expect people to meet them, though, and we get disappointed when our expectations are not met.

The second thing is our needs. I draw on Maslow’s hierarchy of needs. From a trust point of view we buy products and services and we engage in relationships with people to meet those needs. I’ve found that there is generally a driving core need for people. That need drives them in all the different kinds of relationships and interactions they have. For example, somebody who is esteem-driven will buy a car because it makes them feel good about themselves, they’ll buy the clothes they buy for the same reason. They’ll engage in relationships, take a job, do all sorts of things that feed that need for esteem.

Likewise all the relationships for somebody who is insecurity-driven will be centered around feeding that core need.

We have expectations and needs. Promises are made to us by the other person, the other organization, or by products and services. The promises could be implicit or explicit, either very clearly stated, or if we had a conversation about them, they were implied; they weren’t really stated anywhere and weren’t written down. We can’t recall a conversation but the promise was implied in a word that was used, or the body language, for instance. Or just by the size of the organization, they can all provide implicit promises.

For trust to occur, there’s a combination of these expectations, needs and promises which I draw like a wall, with two pillars of needs and expectations and promises along the top.



I would expect a structural engineer to understand how the wall would break down, how quickly it would break down in certain circumstances.

There are some expectations and needs that are more important to us than others. There are some points on the wall that are more sensitive. If you took certain bricks out, the wall would collapse more quickly. We know that to be true. There are some expectations and needs that if they’re not met by that person or organization or that product, we might be a little disappointed but we still stay. We continue to engage. There are others that, if they’re not me,t we’re gone. As a customer, we’re gone, and we just never buy from then again.

We found that the explicit promises sit in one part of the wall and when they’re not met, there are generally cracks in the wall. We tend to complain about an explicit promise which hasn’t been met because we can. Whereas we tend not to say anything about an implicit promise because we’ve got nothing to point to, no conversation to recall. So we let it simmer away and eventually the wall collapses.

So the base of the model is about these, what I call ENP’s. Trust actually sits on top of this wall, so it ends up looking like Humpty. I talk about all the king's horses and all the king's men can’t put that trust back together if you allow it to get to the point where it completely breaks.



Sometimes there are bricks that drop out. We’re feel very unsettled and disappointed, but if it gets to the point where enough of those important bricks fall out or enough of those implicit promises are not met, the whole thing will collapse and it will break. 98% of the time people say they would never go back there again.

The whole purpose and process of building trust is understanding the expectations and needs and being clear about those, knowing which ones are the most important to people and being very, very clear about what promises we’re making and delivering on those promises. It's one thing to make them; it’s another thing to deliver them.

We also need to understand what are our expectations and needs in this engagement and what are the promises being made to us. There are two sides, two walls within that relationship. It’s the basis of the trust model. The book, The Truth about Trust in Business, actually has diagrams all the way through showing the wall in different stages, in different situations, and how it might play out and how it might break down.

*********************************************************************************

In Part Two of my interview with Vanessa Hall next month, we talk about the different types of trust and how to apply them, the role of trust in passing referrals and some of the pitfalls.

-------------------------------------------------------------------------------------

Are you struggling to put an effective networking or referral strategy into place? Do you want to know more about how to ensure you get the maximum possible return from your networking?

Andy's new Audio program, "Networking in Ninety Minutes," will give you the tools you need to make the most from your networking. Available in CD or mp3 format here.
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For more information, please visit Andy's TNNW Bio.




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BLUE THING #1: TNNWC Surveys, Analyses and Findings




Why? Because people are absolutely obsessed with what other people are thinking.

Why? Because feedback helps us to refine our strategies and change our trajectories.

Why? Because The National Networker Companies want you and your business to know your client audience and to constantly monitor changes in their attitudes, buying habits and needs.

(cue drum roll...)


TNNW SURVEY #6 RESPONSES ARE IN!

(Polls have now closed at this writing: 04.27.2010 )

TNNW Survey #6: Take Your Own Personal "Human Asset Value" Inventory.


---------------

TNNW SURVEY # 6: Self-Evaluation
RESPONSES, ANALYSIS and COMMENTARY
Publication Date: 04.27.2010



A. The Introduction: A Review of the Survey Presentation.

You bring your automobile in for an inspection to determine if it needs repairs. You check your investment portfolio to see how well your assets are performing. You review your bank statement to be certain that you can cover your bills. You appraise your property. You prepare balance sheets for your businesses. Comment: It might be a good idea to take a Personal Asset Value Inventory -- a self-appraisal -- from time to time. Start today. Invest a bit of time in taking an honest look at yourself...strong points, weak points, all points. What you reveal to yourself in this exercise might help you to make some refinements, and to better plan for a happier, more fulfilling and prosperous future.

We have not assigned "weights" or "priorities" to any factors, and there is no grading. Once the results are in, we will conduct another survey to assign weights to the various factors, so that you will have a means of rating yourself in comparison to others. But for the moment, your answers to the survey will just provide you with some food for thought...and thinking is good exercise; the more you use your mind, the stronger it becomes.

You'll be glad that you made this self-investment. And we at THE NATIONAL NETWORKER COMPANIES™ thank you for your participation. Now let's get on with the collaborative process of helping each other to be more successful.

It is self-evaluation time. We must do this before we can evaluate others effectively.

Please be advised that the survey contains 45 questions...so be prepared to dedicate some time to thinking about each question, and answer honestly -- never try to fool yourself.

Relax, focus and enjoy the adventure of self-discovery.

Faithfully,

Douglas Castle
THE NATIONAL NETWORKER COMPANIES
####




B. The Survey Questions. – [Note: To download the Actual Survey, with all of the possible multiple choice answer selections, simply click on http://www.mediafire.com/?m0zmj34daxy ]

1. Do you know your three greatest (e.g., most exceptional) strengths? Note: These strengths can be from any aspect of your personality, technical skills, talents, et cetera.

2. Do you use any of your three greatest strengths in your work?

3. Do you know your three greatest weaknesses or vulnerabilities?

4. Have you addressed or found ways to work around your greatest weaknesses so that their impact on you in your personal life and career are minimized?

5. How many genuine, close friends do you have in whom you can truly confide with no-holds barred honesty, and who can confide comfortably in you?

6. Of your closest friends, how long have you known the longest-standing one (referring to the preceding question)?

7. During an average week, how many times do others ask you for advice, for your opinion, for your recommendation or referral?

8. During an average week, how many times do you ask others for advice, for their opinion, for their recommendation or referral?

9. How many hours (on the average) do you spend researching or reading about your professional interests or business field daily?

10. How many hours (on the average) do you spend researching or reading about your varied intellectual or recreational interests daily?

11. How many hours (on the average) do you spend discussing your professional interests or business field with colleagues daily?

12. How many hours (on the average) do you spend discussing your professional interests or business field with prospective clients or general acquaintances daily?

13. Do you enjoy what you do for a living?

14. How many friends, business acquaintances and colleagues do you have in your "A-list" email address book?

15. Referring to the previous question, how often do you correspond by email, or telephone, or through other means with that group monthly (on average)?

16. Referring to the previous question, how many introductions do you make between friends, colleagues and clients per month (on average)?

17. How often do you write articles, post to blogs or correspond with others (on a non-solicitation basis) regarding your profession or other interests on a monthly basis (on average)?

18. Are you considered a "thought leader," an "expert" or a "maven" in your professional field or in some other area?

19. Are you considered by others to be a leader, an organizer, or a commander?

20. Are you considered by others to be a good team player, a contributor, a dedicated individual?

21. Are you considered by others to be generous and giving of your time, your insight, your funds (to charities and other causes)?

22. Would you delay or re-schedule an important business meeting if a close friend needed your help in a difficult situation?

23. Could you be trusted to keep a secret?

24. Are you generally honest in your words and in your actions?

25. Do you ever relate stories to others in which you've lost, or done something silly, or been in embarrassing circumstances? Can you laugh at yourself, or occasionally poke some fun of yourself?

26. Do you enjoy socializing?

27. Are you effective at inspiring others?

28. Are you skillful at delegating to others?

29. Do you enjoy speaking in front of groups?

30. Do you frequently compliment or praise others? Do you enjoy giving credit to others?

31. Do you enjoy teaching or assisting others?

32. Do you take pride and effort in your appearance?

33. Do you listen to others, reflect upon what they've said, and respond (without a hidden agenda or a sales pitch)?

34. Do you dedicate an average of a one to two days per week pursuing recreational interests which don't involve business, per se?

35. Do you keep up with all of the latest developments in your field?

36. Do you do regular vigorous exercise, and attend to matters of your health?

37. Do you respond to personal emails and telephone messages that you've missed from persons whom you know?

38. How many people do you know who would write letters of reference on your behalf, or speak on your behalf?

39. How many people do you know for whom you would write letters of reference, or offer an endorsement?

40. Do you organize and plan your days, or weeks with goals?

41. Do you feel that you are on the right career path for you?

42. Do you accept constructive criticism from colleagues and friends?

43. Do you engage in charitable or community works?

44. Are you concerned for the fate of your country, and of Humankind, as a whole?

45. Do you believe that there could be a time in your life when you would be willing to sacrifice yourself, and everything that you owned, to save another person, or for a critical cause?

C. The Survey Responses.

There were 71 total respondents, each of whom completed the entire survey. The time that it took, on the average, for any respondent to complete the survey was 47 minutes, or an average answer rate of approximately 1 minute per question. By contemporary standards, this was a long and elaborate survey that required time, effort and introspective focus to complete. We at TNNWC are thoroughly delighted with the number or respondents. The non-scientific implication might be that the survey topic was one that many considered to be of importance or benefit.

To view the actual survey responses in terms of the percentages of respondents selecting each of the multiple choice answers to any of the given 45 multiple choice questions, simply click on the following link http://www.mediafire.com/?zggyybmowgy for a complete download. Since the survey consisted of such a large number of questions, if would create multiple computer crashes or a somnambulistic wave of drooling lethargy if we were to print out the results here. Having said this, please do take a look at the download. You will find the results informative, but not shocking.

When evaluating these responses or the responses to any self-evaluation questionnaire, please bear in mind the areas of bias which will tend to distort the results. Firstly, there is survey presenter’s bias, which has to do with any or all of the following variables: the selection (inclusions, omissions and emphasis) of questions; the wording of questions; the answer choices and their wording; and, the ordering of the questions. Every pollster or survey-taker has an inherent bias which will influence the very structure of the questionnaire, and therefore, the responses and their implications. It is a challenge to minimize this bias, especially in a situation where certain results are either hoped for or anticipated while designing the survey.

Secondly, there is a respondent’s bias which has to do with the ego-driven disparity between what the respondent actually thinks of himself or herself, and what the respondent would like to think of himself or herself. This is, even in a totally anonymous survey, such as this one, a deeply ingrained psychic self-defense mechanism. We would simply like to think the best of ourselves, so our results tend to reflect more “socially responsible,” “academically correct,” and “proper expected conduct,” in any given set of circumstances or given any choice of action. A classic example of this is in the case of a question along the lines of “If you were driving to a meeting and running a bit late, would you stop your car to check up a motorist whose automobile was pulled over on the shoulder of the road, and whose head was hanging out the driver’s side window?”

The responses to the above question would likely indicate a great deal more compassion and concern than might otherwise be exhibited when confronted with such a situation in reality. There is an amazing psychological/ subconscious phenomenon at work here – there is a presence within each of us that views us as if we were assessing a third party. While it interferes with our accuracy in filling out questionnaires, it is a useful self-correction tool if properly cultivated and harnessed. It certainly warrants exploration and experimentation.

Getting back to TNNW Survey #6, when the responses are converted to presentation as area charts, they are even a bit more interesting. Graphically presented data are easier for most readers to grasp, because we tend to process pictures a great deal more rapidly and memorably than when we try to derive meanings from words and numbers. To use a cliché, a picture may well be worth a thousand words. [Interjected Humor … especially if it is a photograph taken by a private investigator in a matrimonial case!]

To see the statistical results depicted as area charts, you get a download by clicking on this link: http://www.mediafire.com/?ttn1zj22jyh .

Because of the extensive nature of this self-exploration survey, we will be reviewing each of the 45 separate aspects of crucial self-knowledge and personal development individually while we continue to carry out other polls and surveys.

Welcome to the commencement of … EXPLORATION: 45 CRUCIAL ASPECTS OF SELF-KNOWLEDGE AND PERSONAL DEVELOPMENT.

---------------

Note: Now that the Survey is closed and the results have been published, if you have some of your own additional self-assessment tools or criteria to share (by way of example: certain categorical questions which were not among the 45 in the Survey, but which you believe should have been included in over to make the self-assessment process even more effective) and you would like to include them in a follow-up addition to the Survey, please write to us at http://bit.ly/contactTNNW, being sure to include the words “Survey #6 Suggestion” in the subject line of your correspondence.


If you would like, we will give you credit for your suggested question right in the Survey itself. And in the event that your recommended categorical question is published in an updated and upgraded version of the Survey, just let us know if you’d like to be named as a Contributor to the Collaborative Survey Creation Team in your initial correspondence to us. In this manner, we’ll know well enough in advance. Of course, you may remain anonymous if you would like.

If you’d like, join The National Networker Companies for free at http://bit.ly/JoinTNNW.



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Monday, April 26, 2010

CREATING AND MANAGING EFFECTIVE TEAMS: What is the Difference Between Talent and Desire?

Creating and Managing Effective Teams with David Muraco, CPCC


What is the difference between Talent and Desire?

I have posed this question to top level executives as well as some of the top coaches in the area and the answers vary from person to person. Some will say that you can't teach talent. Others will say there is no replacing desire. Truth be told I believe they are all right.

You see, you can have the most talented player or executive in the world, but with no desire for their team to win or to make the people around them better, it is a waste of time, money and energy. On the other hand, you can have all the desire you want, but with little or no talent for the sport or company, again it will be a wasted effort. The greatest accomplishments in the world have been done when desire drives talent. When desire forges with a particular talent magical things happen. In the sporting world we have people like Michael Jordan, Wayne Gretzky, and Muhammad Ali. In the business world we have Steve Jobs, Bill Gates, Henry Ford, and Tony Robbins. These men took their greatest desires and applied them with their greatest talents, and each one in their own way changed their particular industry forever.

By definition the words are worlds apart:

  • Talent - a person who possesses unusual innate ability in some field or activity.

  • Desire - feel or have a desire for; want strongly.

The learning portion of this article is simply this: what we define to be true and what is true are not one in the same. Desire cannot live without some kind of talent to escort it. Talent could not eat without desire to feed it. They are two entities that are on a collision course just waiting for us to slam them together. Whether you are 16, 36, 66 or older, find your talent and before you know it, desire will be knocking at your door. When that happens hold on for the ride of your life.

Remember be positive, be real, and live your life In The Zone.


For more information, please visit David's TNNW Bio.




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Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com


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BEYOND THE CUBICLE – CORPORATE CULTURE: Brick & Mortar Vs. No Boundaries, Part 1

Beyond the Cubicle – Corporate Culture with Teri Aulph

Take a look around. Companies are launching without the traditional "brick & mortar" boundaries. Impressive street addresses are being replaced with .com addresses. Boardrooms are being replaced with online meeting venues. Employees can work from anywhere they have wireless access and cell phone coverage. How is this shift in "how we do work" impacting the culture of a company?

Let me introduce you to Jeff Garber, CEO, and Dan Fedrizzi, COO, founders of http://www.360jobinterview.com. In response to the recent devastating job losses across they country, they founded 360JI to provide affordable career services to job seekers worldwide. 360JI connects job seekers to 300+ top HR professionals representing over 55 industries for PERSONAL one-on-one career/interview coaching, as well as resume services. This array of services is provided live via Skype. The mission: to help job seekers get noticed and get hired.

Prior to 360JobInterview.com, Garber and Fedrizzi spent over 20 years in marketing and communications. Jeff has emerged as a spokesperson for job search challenges with recent interviews for national media, including: Forbes.com, The Washington Times, Baltimore Sun, Atlanta Journal Constitution, ABC-Baltimore, Huffington Post, FOX Baltimore, Syracuse Post Standard.

I was fortunate to have the opportunity to discuss with Jeff and Dan the cultural differences between "brick & mortar" companies and ‘’companies without boundaries." Below please find part one of my interview with Jeff Garber and Dan Fedrizzi.


Q. How does the culture in a company without boundaries differ from a traditional brick and mortar company?

Jeff: Our company, 360JobInterview.com, has many of the same organizational and interpersonal challenges any company has, as well as a set of unique challenges. Brick & mortar companies attract and collect all types of employees, some motivated and some not. Some employees in traditional companies need a taskmaster to make sure they show up on time and stay on task. In a traditional environment, some employees respond to "big brother" very well. If left to their own devices, they could be very lazy. Companies without boundaries attract people who are self-motivated; it is not a place for lazy folks. You must be focused and self-motivated to succeed.

Companies without boundaries require an entrepreneurial type of employee. Offices in companies without boundaries are environments each person creates for themselves. They must be able to work in a certain amount of isolation. However, with Skype, cell phones, and wireless technology, the connectivity is no different than if they had colleagues in the next cubicle.
This environment also requires people who are passionate about what they do. If you hate your job, you aren’t going to be good in this environment because people who hate their jobs need to look at a clock. They come in at 8:00 o’clock and count down the hours until 5:00 o’clock. We work all hours of the day and night, depending on our personal preference.


Dan: There are various levels of constraints in a company without boundaries. I don’t feel there is a defined culture, yet. We are blazing a trail with no defined patterns, as opposed to a traditional company, which has very structured patterns.

Working in a company without boundaries is still in its infancy and too new to make a good comparison. It is constantly changing. However, being a part of the beginning of new type of work environments is very exciting. It allows everyone to stretch his or her talent and ability to innovate. The environment itself fosters the need to look at things in a new way.


Q. What are the biggest challenges/advantages to a company without boundaries?

Jeff The advantages are:
You get highly motivated colleagues who are passionate about what they do
Our employees appreciate the freedom and flexibility they have. If they aren’t a morning person, they may plug-in a little bit later. If a person is a night owl, they may work well into the night. People tend to work longer hours, more days of the week and their response rate to communication is far better than traditional companies. The reason is, in traditional companies, most employees check out mentally at 5:00 o’clock. They may check their phones and Blackberries, but they are not as responsive as those who work in our environment. Companies without boundaries value employees more highly than traditional companies. This is the result of being a more progressive type of company. You are asking people to think out of the box and you are much more receptive to what they bring to the party because it is not structured in the same way traditional companies are.

I would compare it to coloring a picture on a page. If you don’t have an outline or border, you don’t have the constraints to color inside them and you will be much more creative. In our world, this approach results in new products and services.

One of the greatest advantages is the ability to leverage the latest technology. For instance, you and I can have a conversation via Skype, be discussing a client and have the ability to add the client to the conversation. The technology allows an immediacy in communication and people tend to be much more accessible. As a result, we are much more productive.

The challenges are:
It isn’t for everyone. If someone needs structure, this probably won’t work. However, we create our own structure. You and I may be talking via Skype, having a cup of coffee, we just don’t happen to be in the same room.

As a small company without boundaries, we are very agile and can operate on a bigger platform cultivating relationships through networking beyond our local boundaries.


Dan, The advantages are:
More free thinking takes place due to the flexibility and creativity of this type of environment. This environment also breeds growth, change and opportunity. You can work anywhere, any time in the way you choose. People who thrive in this environment tend to be much more productive, as well as open to new ideas and ways of working. The lack of structure opens people up to be much more creative. People are inspired and self-motivated in this type of environment.
A company without boundaries opens your ability to employ people anywhere in the world, as opposed to recruiting people from your own backyard. This easily increases the talent and expertise we have access to.

There is no need to travel to meetings. With Skype, you can be face-to-face anytime anywhere. This allows you to remain face-to-face without the financial cost and time of travel. You can be anywhere without unplugging from your work and still work on your own schedule. Face-to-face communication may never be replaced completely, but the need for it is much less in this environment.

The Challenges are:
Working with people in various time zones takes an adjustment. You must be aware of where people are when scheduling meetings. You must be more flexible when working in these types of environments.

People are still apprehensive about working in this type of environment. Change is the only thing you can count on. If you aren’t changing, you aren’t growing.


This is not the first time Jeff Garber and Dan Fedrizzi have pioneered a new landscape. They are known for setting their compass in directions beyond where others have gone. They had a vision that has taken innovative ideas to a place where society is positively influenced in tangible ways to address the needs of millions. 360JobInterview.com will soon launch a new service that will revolutionize the way Human Resource departments work. Please check back next month for the rest of the story.


For more information, please visit Teri's TNNW Bio.





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The Emergence of The Relationship Economy

The Emergence of The Relationship Economy
The Emergence of the Relationship Economy features TNNWC Founder, Adam J. Kovitz as a contributing author and contains some of his early work on The Laws of Relationship Capital. The book is available in hardcopy and e-book formats. With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is considered a "must read" for anyone responsible for the strategic direction of their business. If you would like to purchase your own copy, please click the image above.

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