Welcome to Front Desk Business Brief

Welcome to Front Desk Business Brief blog, provided by Front Desk Team, LLC.  Our goal is to provide resources for business leaders, especially small and medium-sized organizations who benefit from pooling information, resources, and expertise.  As the owners of small businesses ourselves, one of our greatest concerns is wondering what we should know, but don’t.  Once the right question has been identified, it is easier to find an answer that suits our own business.  Our goal is to select a topic or issue and try to identify questions that will help lead to better decisions.  We welcome your suggestions, comments, and questions.

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Seven Things to consider for your Customer Service Disaster Plan

Don’t forget your customer when things go wrong!  Storms create problems. Technology fails. Sometimes we have a personal crisis that affects our business, especially when our business is small. Whatever happens behind the scenes, every business leader must have a plan to manage and respond to your customers’ needs.

When it comes to communication, you have more customers than you think.  When things go wrong, your customer, patient, client, re-sellers, etc. need enough information to be able to make their own contingency plans. They will hang in there with you when they know you have considered them. Sometimes how you handle problems builds loyalty. Maybe the smaller business who looks clients in the face has an advantage over larger corporations, despite their abundant resources.

Last month a major technology provider with a 99.9999% uptime record went down. They went down big. They spent the better part of the day fixing the problem. OK. Things happen. Here’s what shouldn’t have happened: Their customers and re-sellers couldn’t reach them to find out what happened. All their US phones were down. All emails were down. Their tech product was down. The sound of silence was deafening. For a few hours it seemed like the US operations had closed. What happened? Their phones, emails, and products were all on the same system. When parts failed, customers couldn’t reach them to find out what was happening. Re-sellers were equally in the dark and unable to advise their customers. This company now plans to put email and phones on different systems. They also intend to utilize Facebook and other social media to make themselves accessible.  It’s a good step.

This month a different vendor has had recurring problems. The phones worked, but you got voicemail and no return calls. The web-based online chat seemed to work but the message was that all representatives were busy. Again, re-sellers were in the dark as much as their customers.

If the big guys fumble the customer communication ball, what can you, a small business owner, do? – Plenty. Sometimes smaller organizations shift gears faster.

Here’s my checklist:

1. Know what kind of things can go wrong and the specific person/people you should call to fix things.

2. Get the technical people to work ASAP.

3. Shift gears INSTANTLY. Your job as business leader is to get in front of your customers to let them know that you are on top of things. If all you can say is that you are in the process of finding out what happened, and then say that. Don’t leave people guessing.

4. Manage your communications team – yes, you do have one.

a. Have contact information ready in advance. You need to know the names, emails, and phone numbers of anyone who will be talking with your customers. This might include your answering service, your virtual office manager, your front desk receptionist, anyone who provides sales, customer service, communications, technical support, etc.

b. Control the message. Plan the communication script. And share it with your communications team. It can be risky if you leave them alone to make up answers. I am a re-seller for one of the vendors mentioned above. I was promised a month credit for one of my clients and I intend to hold the company to that promise.

5. Build in redundancies whenever possible. We look for vendors with good back-up plans. (Most of the time this works!) We use different cable companies to support our phone system and work from different locations. Our email uses a different technology platform than our phone system.

6. Build in communication opportunity redundancies, too. Make sure your customers can reach you via phone, fax, email, Facebook, LinkedIn, alternate emails, forums, your outsourced service, etc.

7. Follow-up. Keep people in the loop. When the problem is fixed, let people know they can resume business as usual. Let them know what happened and what you plan to do to prevent the problem in the future.

No matter how much we plan, life will bring surprises. If you your are proactive, act responsibly to mitigate harm, and communicate effectively, you will go a long way to generating goodwill. If you’d like to see how we handled an issue a few years ago, visit this post: http://wp.me/p1l5p6-V Watch the video. The artist was clever!

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Blockbuster Hit the Iceberg – Chilling Warning to Entrepreneurs

Like the Titanic, industry giant Blockbuster Video hit the figurative iceberg, realized it was beyond rescue, and closed the final 300 stores.  After viewing the forlorn sight of empty Blockbuster stores in strip malls across the country, many of us were surprised there were still stores left to close. Here’s the chilling message to entrepreneurs everywhere. Whether you are a large corporation, a small business, or an independent professional, the message is the same:  If you let your guard down, it can happen to you.

This event gives us the opportunity to do a reality check about how well we have positioned our own business.  Here are three questions we can ask ourselves to make sure we are keeping our own business on course.

1.  What is it like for my customers, clients, or patients?  How effectively do I monitor and manage their experience?

Customer experience matters from start to finish.  The pleasurable experience of meandering through the aisles of our favorite video store to find unexpected and favorite old movies was sometimes muted by another – Late fees.  So while the initial experience was good, the lasting impression was tainted, even though the fees were our own fault.  Customers, like me, flocked to competitors offering online video opportunities that added convenience while eliminating both guilt and penalty.

2.  Am I watching for trends and obstacles that could help or hinder my business?

Our strategic planning responsibilities include paying attention to factors in the external environment that could impact how we do business.  Blockbuster was too slow to adopt the emerging technology of streaming video and even declined offers to purchase Netflix. The Mayo clinic, among other medical providers, utilizes advanced technology to provide remote medical diagnosis and support. Front Desk Team provides clients with virtual office management, hosted technology, and consulting support.  Did you know that some law firms now offer virtual legal services? There is even a directory of online law firms. How does the ever-changing sea of technology affect your clients and your business?

3.  What are the other trends that will change your customers’ expectations and how you operate?

Competition can come from surprising places.  Blockbuster underestimated the impact of technology changes.  During a Manufacturers’ Alliance meeting several years ago Anita Ryan, then president of the St. Paul Brass and Aluminum Foundry, gave a great example.  In the past, the part of your lawn hose that screws onto the water tap was made of brass.  Now it is made of plastic.  The foundry didn’t assume their only competition existed within the metal manufacturing industry.  They didn’t miss the competition from the plastics industry and adjusted in time.  The foundry was in business before Blockbuster and is in business today.

The old adage says “Expect the best but prepare for the worst.” That seems stark.  Here’s my view of things:  As business leaders we navigate the seas of opportunity while keeping a watchful eye out for icebergs.  That’s what strategic planning is all about.

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St. Patrick’s Day Greeting – Second Try: The Origin of Irish Dance?

According to my team, my blog  yesterday fell into the “What were you possibly thinking?!!!”  category. 

In honor of good business writing, St Patrick’s Day, and blarney in general, I included one of my favorite poems. 

  • It is true that including poetry is not a typical part of our business blog.
  • It is true that this particular poem is written with a particularly thick brogue. 
  • It is also true that sometimes, especially around St. Patrick’s Day, my antics may cause consternation for friends, family, and now my fellow team members. 

Yes, things can get a wee bit daft.  St. Pat’s Day gives us another excuse to have fun at home and at work.  Since everyone is an honorary Irishman tomorrow, I invite you to join in the fun.  Take a glance at the poem.  It makes me laugh.   https://frontdeskbusinessbrief.com/2012/03/15/business-writing-a-funny-lesson-learned/  

 However, if that isn’t your thing, I offer the following slightly less appropriate, but non-verbal alternative.  My brother has dubbed this  Origin of The Irish Dance.  Enjoy!

http://www.youtube.com/watch?v=m0rrLdWLu_0&feature=player_embedded

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Business Writing – A funny lesson learned

In this era of internet communication, there is increasing pressure to write simply. People have less time and less tolerance for the written word.  Communication gets even more convoluted when we enter the world of law and government.  Think about the laws and regulations affecting your business.  Section 341(e) of the Internal Revenue Code has 435 words before the main verb of the sentence. Ouch!

The need for effective writing isn’t really a new concept.  Clear, concise writing has always been a preferred business style.  American humorist and journalist, Strickland Gillilan, shows us that this was a concern back in the days when they were building the railroads. 

So, in praise of simple writing, in honor of St. Patrick’s Day, and just for the fun of it, we share this poem with you.  Work through the brogue, have a pint, or some Baileys, and enjoy!

(Before you get started, someone just asked for clarification.  A Shanty was a ramshackle wooden hut thrown together for temporary use.)

FINNIGIN TO FLANNIGAN
Strickland Gillilan  (1869 – 1954) 

Superintindint waz Flannigan;
Boss av the siction wuz Finnigin;
Whiniver the kyars got offen th’ track
An’ muddled up things t’ th’ divil an’ back
Finnigin writ it to Flannigan,
Afther the wrick wuz all on agin:
That is, this Finnigin
Repoorted to Flannigan.

Whin Finnigin furst writ to Flannigan,
He writ tin pages-did Finnigin.
An’ he tould jist how the smash occurred;
Full minny a tajus, blunderin’ wurrd
Did Finnigin write to Flannigan
Afther the cars had gone on agin.
That’s th’ way Finnigin
Repoorted to Flannigan.

Now Flannigan knowed more than Finnigin-
He’d more idjucation-had Flannigan;
An’ it wore ‘m clane an’ complately out
To tell what Finnigin writ about
In his writin’ to Muster Flannigan.
So he writed this here: Masther Finnigin:
Don’t do sich a sin agin;
Make ’em brief, Finnigin!”

Whin Finnigin got this from Flannigan,
He blushed rosy rid-did Finnigin;
An’ he said: “I’ll gamble a whole month’s pa-ay
That it’ll be minny an’ minny a da-ay
Befoore Sup’rintindint-that’s Flannigan-
Gits a whack at that very same sin agin.
From Finnigin to Flannigan
Repoorts won’t be so long agin.”

Wan da-ay on the siction av Finnigin,
On the road sup’rintinded be Flannigan,
A rail give way on a bit av a curve
An’ some kyars went off as they made th’ shwerrve.
“there’s nobody hurted,” sez Finnigin,
“But repoorts must be made to Flannigan,”
An’ he winked at Mike Corrigan,
As married a Finnigin.

He wuz shantyin’ thin, wuz Finnigin,
As minny a railroader’s been agin,
An’ his shmoky ol’ lamp wuz burnin’ bright
In Finnigin’s shanty all that night-
Bilin’ down his repoort was Finnigin
An’ he writed this here: “Muster Flannigan:
Off agin, on agin,
Gone agin.-Finnigin.”

This poem is in public domain. 

Note:  My thanks to William (Bill) Brown, CPA for answering my question on Linked in about the length of IRC sentences and providing the following source 

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International Women’s Day is good for small business

Today is International Women’s Day.  Originally called International Working Women’s Day, it is celebrated on March 8th each year to recognize issues and accomplishments of working women in the past, present and future.  It started in the early 1900s as women fought for wages, working conditions, and the right to vote.  It has expanded to acknowledge issues facing women around the world.  For more information about the history, visit:   http://www.un.org/womenwatch/feature/iwd/history.html

We really are making progress.  My grandmother was 36 years old when women got the right to vote in the United States.  When my mom was a young adult, women were encouraged to stay at home or, if they needed to work, be secretaries, teachers, or nurses.  Most baby-boomer women can share stories of the challenges they faced when they began their professional careers.  Today women hold leadership positions in major corporations. There may still be a wage gap but the opportunities are substantially better than they were.

Today women are becoming small business owners at a faster rate than men, although men clearly dominate the field in terms of numbers and earnings.  According to Kauffman Foundation research only about 35% of start-up business owners are women.  This seems to be a low participation rate at a time when more than 50% of the college students are female and about 46% of the workforce are women. http://www.kauffman.org/uploadedFiles/Growing_the_Economy_Women_Entrepreneurs.pdf  However, 35% represents a dramatic increase over the last 10 years.  Since the vast majority of new business owners are over 40,  this means that the men and women starting new businesses now already experienced that transformation of roles for women in the corporate setting. That assumption of equality will make it easier for all small business owners to grow together.  Many of these baby boomers share the belief that entrepreneurship is the best path to overcome the recent economic issues that resulted in corporate lay-offs, diminishing savings, and reduced retirement funds. 

This economy needs effective entrepreneurs.  Today is International Women’s Day.  This month is Women’s History Month.  It is worth celebration.  The elimination of artificial barriers frees us all to work together to rebuild the economy and our individual lives.  The Front Desk Team staff work with small business owners every day.  It is exciting to see the enthusiasm, expertise, and energy these entrepreneurs bring to their companies.  It’s exciting to think about what we are building together.  This next decade is going to be fun!

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Responding to Negative Online Comments – Great Example

Warning: Ignore at your own risk

What do you do when someone posts a negative online comment about your product or service?  

Whether or not it is a fair comment, it may influence readers purchase decisions.  How you handle the situation can make an even bigger difference.    

 

How to respond

  1. Think 10 times before removing a negative comment. It can be tempting to remove these negative comments if you have the administrative capability. Don’t.
  2. Trust the readers.  Readers will evaluate the credibility of individual posters and make their own decisions.  They will also evaluate your credibility.  If they catch you removing negative comments, your credibility and the credibility of all the positive comments go down the drain.  It is better to leave the comment as is.  If it is out of line, other commenters may step up themselves. 
  3. Provide a constructive response. This provides the opportunity for a balanced discussion.  What a great thing it would be if you can actually foster a discussion.  You might respond directly to the criticism.  Or, you might redirect thinking by expressing the positive intent of your product or service.
  4. If necessary, take it off-line.  Give them an email address or phone number and promise to work with them to resolve the issue.  A public response may end the negative discussion and demonstrates to other readers that you are following through.
 

Example of a response that  influenced the purchase decision

Last night I was checking out the business books on Amazon.   Reading the user reviews wasn’t proving helpful because the 5 star reviews were so vague that it was hard to tell if they actually read the book.  Then there was the post from a man named Bob who gave a less that flattering review.  It had impact because

  • It was negative.  People tend to remember the negatives.
  • It was contrary to what everyone else said.
  • It was clear that he actually read the book.  He had credibility.

Subsequent posts thanked him for his honest feedback and indicated they might not buy the book.  In my own case, I started thinking about my favorite free library instead of making the decision to buy.

Here’s what turned the tide

The author of the book responded personally.  He made a statement about why he thought the book was good.  He expressed confidence in his product.  He said he was so confident that his book makes a difference that he offered to buy it back himself and re-sell it.  He implied confidence that others were just waiting in line to get their hands on that book.

The author’s response hit a perfect tone for the readers.  After that, posters offered to buy the book themselves.  They praised the author for being responsive.  They praised his coming to the Amazon site to comment.  They became loyal followers because of his response to a negative post, not because they had read the book yet. 

That is the power of  internet comments.  I welcome yours and promise to respond.

 
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Time Management with a Leadership Mindset: What Hat Are You Wearing Today?

As a business owner, you are responsible for everything that happens in your business.  Unless you are a superhero, you will increase your opportunity for success by taking advantage of the talents of others.  Your leadership challenge is to make sure you are using this talent, including yours, as effectively as possible.   Maximize your profit potential by asking these questions:

Are you spending time doing things that others can do better, faster, or cheaper? 

If this is happening, take time to ask yourself “Why?”  Sometimes this happens because we haven’t taken time to consider the opportunity cost.  Sometimes it happens because we are more comfortable doing something we have already mastered than learning or doing what we really need to do for the sake of our business. 

What are the activities that only you can do?

When you are the only person who has the knowledge and expertise to provide certain services to your clients, you want to allocate sufficient time to these activities.  When you spend time on activities that could be performed by someone else, you forfeit  time that could be spent on revenue generating activities.  If you are doing someone else’s work, then who is doing yours?

What are the activities that only you should do?

Taking advantage of resources offered by other professionals is not the same thing as abdicating your business leadership role.  It may be a smart move to work with experts.  We hire accountants, attorneys, consultants, etc. because they can save us time and money – as well as keep us out of trouble.  It is your job to make sure that the advice you adopt is consistent with your business vision and values.  A well-intended but misdirected piece of advice can cause more harm than good.  Regardless of input, the end result happens because of a decision you made.

Small business owners often underestimate the importance of their leadership role – even if they are just leading themselves.  You ARE the company.  You can build relationships and a business reputation in a way nobody else can.  You provide the leadership that takes your business to bankruptcy or brilliant success.  You develop a vision for your future and make plans to take the business there.  This involves identifying the options available to you and selecting the best ones to lead the company to achieve your objective.

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Opportunity Cost – tool for better decision-making

Are you trying to save money by doing everything yourself?  While it may feel like you are being cost effective, you may be surprised by the real cost of missed opportunities.  Trying to do everything may sidetrack you from doing the most important things your business needs. 

Opportunity cost is what you gain or lose by choosing one option or action over another.  It is the difference between the choice you made and what you would have gained if you had selected the next best alternative.  Every small business owner can improve profits and efficiency by making opportunity cost a part of the decision – making process.  Unless we do this, we underestimate the economic impact of the decisions we make every day. 

For example:

If your bill rate is $50 an hour and an assistant would charge you $30 an hour, you gain $20 an hour by using the assistant.  Of course, this assumes that you actually use that time as billable time.  If this is a recurring activity, there is an obvious on-going benefit to purchasing some assistance.  Sometimes it costs more to hire and train someone than it costs to do it yourself.  When the math is this clear, it is easy to make an efficient business decision.   

Opportunity cost calculations should also consider the long-term impact of our decisions.  How much revenue does a single client generate for your business?  You may have a one-time project worth thousands in a single year.  Or, you might have a client who generates thousands over the course of several years.  How many billable hours will you forfeit to obtain a new client?  We can be fairly certain that we need to spend time doing sales in order to have clients and billable revenue in the future.  Forfeiting guaranteed billable time to do sales is a time investment that requires a leap of faith.   If you are tracking your time and expenses, you and your accountant will be able to develop a reasonable estimate of the cost of gaining a new client or losing an existing one.                                                                                                                                                                                                                                                 

Small business owners wear many diverse hats that compete for our attention, time, and resources. We make educated guesses.  We take risks.  We try to make decisions that have a positive long-term impact without sacrificing short-term security.  Understanding the concept of opportunity cost and using it as a decision-making tool can have a profound impact on the future of your business.

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When Murphy’s Law strikes your office

Friday the 13th came early this week!  Someone our company relies upon tried to show initiative without stopping to think things through or obtaining our final approval.  We discovered the result, to our dismay, as soon as we opened the office Tuesday morning.   It is an understatement to say that Tuesday was a real challenge. For a long day and into the wee hours of the next morning, we lived with the quote: “The road to hell is paved with good intentions.” 

We had a rough day, but it wasn’t a bad day. Good people made the difference.  Murphy’s Law says that if something can go wrong, it will go wrong – in the worst possible way and at the worst possible moment.  We write our procedures, hire our staff, and implement training programs so we can handle those moments when Murphy’s Law runs amuck.   Kasey and I are fanatical about creating good systems that ensure excellence.  We critique our processes all the time.  We work to be prepared. There is a corollary to Murphy’s Law that applied here:   

If you perceive that there are four possible ways in which something can go wrong,

and circumvent these,

then a fifth way, unprepared for, will promptly develop.

OK, it happens.  What matters is how you handle it. 

We really appreciate how our clients responded.  Those who were affected trusted us to fix the problem as quickly as possible.  They gave us the time we needed to make the right things happen.  We plan to nurture that trust by making every effort to prevent this from happening in the future.  Caveat:  we acknowledge the corollary above and somewhat reluctantly admit that I am actually related to a number of Murphys.

I’m really proud of the team response.  There was remarkably little grumbling and a great deal of professionalism.  People focused on identifying the problem, tracing it to the root cause, and implementing a solution. They also focused on damage control, taking steps to minimize negative impact on those affected and to fix everything that needed repair. We’re in the process of our Kaizan debriefing, a.k.a post mortem.  We welcome your comments and suggestions.

And now for some related fun.  Here’s a clever artist’s drawing of what can happen when things go wrong.  Enjoy!

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Cost of Interruptions

Ever wonder where your money goes? Interruptions cost you money!  You are the best person to estimate time waste in your company.  We have developed the following calculator to help you determine the cost of your time that is wasted due to unwanted and unnecessary interruptions.

Cost of Wasted Time

Interruptions use your valuable time and money.  Researchers have found that it takes between 2.9 and 20 minutes to get back to the same level of concentration you had prior to an interruption.  To estimate your own cost of wasted time in each month, multiply the following numbers:

_____  #  of Phone Interruptions:                                                            

_____  x   # of minutes needed to resume concentration at the level prior to the      interruption:

_____  x   # of workdays/month (assume 22):

_____  =  Total # of Minutes wasted/month:

_____  ÷  60 (minutes in an hour):

_____  x  your hourly rate (Business owners; enter your billable rate):

_____  =  Total cost of your time wasted:

 

Let’s assume you have just 2 interruptions per day, that it takes you only 4 minutes to resume concentration on the task at hand, and that you earn $35/hour. In this very conservative example, you lose over $100 a month! 

Now let’s assume you bill out at $100/ hour and it takes you a mere 5 minutes to resume concentration on the task at hand.  By avoiding 2 unnecessary interruptions each day, you save $367 each month!

 

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