Vending Routes

When I was young, I invested $2500 with a fast-talking salesman who convinced me I could have a great income in just weeks. He told me he had racks of earrings in hair salons, gift shops, etc. He said he had 110 just in the Grand Rapids area, and they averaged 13 pairs sold per week. He just ran the route once a week to collect his money.
I did the math, as he knew I would. 110 racks times 13 pairs at $5 per pair was $7150 weekly in sales. I knew nothing about earrings, but I started to get interested. I bought 10 racks and 1100 pairs of earrings to fill them. I'd pay him $1.75/pair. Since they sell for $5.00, and the store owner keeps $1.50, I'd have a profit of $1.75 times 13 pair times 10 racks. $227.50 per week, I figured, and then I could expand from there.
How To Lose Money Selling Earrings
I was disappointed to find that retailers weren't lining up to have earrings in their stores, despite not having to pay anything up front. After approaching 130 places in my small town, I got five racks placed. They averaged 3 to 4 pairs sold per week.
I tried, and it may have worked for the right person. I had no experience though, and after running out of places to attempt placement, I gave up. For some reason the salesman didn't want to buy back the earrings as he promised he would. With persistence, I did get my money back eventually.
The Truth About Vending Routes
I've since talked to many people with vending routes. If you can make $25 gross profit per site per week with pop machines or anything else, AND you can have 100 sites within an hour of home, you really can work a few days a week to make $8,000 per month. It is a lot of work to get started, however, whatever a salesman may tell you. If it were easy, the salesman might be running his own route, instead of selling you $6,000 worth of gumball dispensers.
Obviously vending routes work. The people I talked to were doing well. I'm sure it was possible to make good money with those earrings even. I was certainly doing many things wrong, but how do you do it? What should you sell? How do you establish a route?
You don't do it the way I did. I didn't even check other suppliers until later, when I found that I could get the same earrings for 50 cents instead of $1.75. With no experience, I wasn't even willing to spend a few dollars to pay for the knowledge of others. A good book on vending routes might have been all I needed.
A mentor would help even more. If you won't be competing in the area, someone might let you follow him around as he services his route. Vending routes are still a great opportunity - if you avoid my mistakes.

Manufacturing Your Products In China

Manufacturing products in China for the European and American markets have grown exponentially over the last few years. This is due to the cheap labor and cheap manufacturing costs in the country. It's an amazing country with multitudes of companies bidding for whatever you want manufactured. I strongly encourage anyone who has a volume internet market to explore the avenue of manufacturing their products in China. You have absolutely nothing to loose.
Start off by sending drawings or templates of the product that you are considering manufacturing. When they get back to you, they will insist on you ordering a minimum quantity to attain the price quoted. The competition over there is fierce. There should be no problem them sending you a sample of the product that they have manufactured free of charge.
Send your drawings to at least 3 companies to attain 3 different quotes. This means you should get 3 samples back, one each from each company. Whatever the price (there won't be much between them) pick the sample that is the best quality. It will so much pay off in the long run.
Planning and organising are essential when dealing with Chinese companies. Shipping usually takes 6-8 weeks so you must plan ahead at all times. For the first few transactions they might insist that you pay up front for the goods until ye build up a business relationship where then they might give you one or two month's credit.
This is quite normal so you must get references from other companies about the company you intend to do business with. You see, there are companies over there that are one man bands which must be avoided at all costs. Usually the bigger, the better, companies who are already doing big levels of manufacturing for other companies.
I believe for items normally priced around $50 here in the western world, you could get a replica made in china for $8-$10.You must do thorough investigation into the market over there before money changes hands. If you are getting to big sales levels in your business, then manufacturing in China is becoming more and more a viable option every day.
There is money to be made in selling products for other companies, in selling your own products that you are buying wholesale, but when you start manufacturing YOUR OWN products that's when the big margins come in to play. Have a look at China if you have the volume. It could the best move you will ever make.

Advantages of Incorporating

Starting a business or relocating your corporation's headquarters? The state of Florida offers many advantages to those businesspeople seeking to relocate or establish a business in the Sunshine State.
In the first quarter of 2005, Florida's GSP (Gross State Product) was $613.9 billion. This number is up 1.2% from the previous quarter and is up 4.6% from the previous year.
In addition to this robust growth rate, there are also government incentives to encourage businesspeople to conduct business and/or incorporate in Florida. Some examples include targeted qualified industry tax refunds to special zones and sites that eliminate state and local taxes to encourage development. This situation, combined with a trained subsidized workforce, creates favorable business conditions.
Besides being good for business, Florida is also one of the top retirement destinations in the United States. Because it offers a zone 10 gardening season, year-round use of beaches, and exotic flora and fauna, many businesspeople choose to relocate a pre-existing business in Florida.
The strong partnership between government and business leaders in the state suggests that Florida will enjoy solid and sustained economic development in the times ahead. Concerned individuals from all sectors united to rebuild Florida after the devastation of four hurricanes in a short six-week period in late November of 2004. The way the whole state pulled itself together with a steady, resilient message that "business will go on" was very impressive, indeed.

Rapid Technology Prototyping

Rapid technology prototyping, alternately referred to as rapid prototyping (RP), is currently the most advanced method for quickly creating a prototype.

This technology is accomplished by using a rapid prototyping machine. Rapid prototype machines can produce prototypes in mere hours. Depending on the complexity of the prototype, it may take anywhere from just a few hours to a few days for its completion.

Rapid technology prototyping is also commonly called solid free-form fabrication, layered manufacturing, or computer automated manufacturing.

The benefits of using rapid technology prototyping are...

»Any object of any complexity can be formed fairly easily and quickly without the need for machine setup or assembly.»Objects are made from multiple materials or as composites.
»Since usually only a single unit is produced, the costs can be kept down to a bare minimum.

Here's a brief explanation of how it works...

Basically, rapid technology prototyping takes traditional 2 dimensional printing and adds a third dimension to it. Therefore, rapid prototyping machines are fondly called 3 dimensional printers. Rapid technology prototyping takes a Computer-Aided Design (CAD) model and using a laser, creates a physical model out of a variety of media. The media types include paper, ceramic material, wax, or even plastic.

In contrast with most machining processes, rapid technology prototyping is an "additive" technique. This means layers of media (whether paper, ceramic, wax or plastic) are combined to create a 3-D solid object. Most machining processes, such as drilling and grinding, are "subtractive" techniques, where material is removed from a solid block.

The process of rapid technology prototyping is listed out below ...

»First, you need a CAD model of your invention.»Next, the CAD model must be converted to STL (stereolithography) format. This file represents your invention as a series of triangles like that of a cut diamond. STL does not represent curved surfaces, only cut surfaces. However, you can create what appear to be curved surfaces by increasing the number of triangles.
»The STL file will need to be sliced into layers from 0.01 mm to 0.07 mm thick, depending on the build technique you choose.
»Construction of the object takes place layer by layer. The rapid technology prototyping machine builds the layers from the selected media.
»The final step is to clean and finish the prototype. In many instances, it will be sanded, polished or painted.

What is it used for?

Rapid technology prototyping is commonly used by inventors to help communicate their invention to a patent attorney or a trade representative. It may also be used for gaining manufacturing quotes, trying to sway investors and in marketing focus groups. As you can imagine, it is much easier to communicate an invention using a 3-D prototype than with a 2-D drawing or blueprint.

What does it cost?

Of course, costs range due to the complexity and size of your invention. They can also increase if you need additional design work such as painting done. Smaller prototypes can be made using rapid technology prototyping for about $250. You can gain an estimate by calling several companies.

There are limitations to rapid technology prototyping, but it truly is revolutionary. In the past, inventors had to wait weeks, sometimes up to months and pay much higher fees to have a single prototype made.

It is also possible to use rapid technology prototyping for making tools. This technique is known as rapid tooling. In addition, it can even be used for the production of parts and manufactures, known as rapid manufacturing.

Business Culture in China

Chinese business culture and etiquette

The Chinese business practice is vastly different from the Western method that most of us may be used to. Of course, with the Chinese economy opening up, China's joining of WTO and the Olympics in 2008, many Chinese business practice are now beginning to align with more conventional methods.However, China will always have their own unique business culture and etiquette, given their unique history and background.
"I was recently involved in a business meeting that went sour and threatened to scuttle a good deal. What happened was that the Chinese party receiving the American purchaser was late in reaching his hotel. The American was furious as he had a tight schedule and that they were late and threatened to withdraw his purchase.
The Chinese party was late because they were given a vague address of a lake-side hotel. You see, what happened was that the American gave his hotel as Lakeside hotel. Unfortunately, there were numerous hotels along the lake but the Chinese were too shy to enquire which lakeside hotel earlier because they were afraid the American would 'lose face' for having given a vague address. Instead, they spent the morning hopping from one lakeside hotel to another looking for this American gentleman."
A simple cultural difference threatened to scuttle a perfectly good working relationship. To avoid similar cultural disasters, here are some tips on how you can conduct a more successful business in China.
The initial approach
Chinese business are mostly referrals; essentially a business relationship is struck based on another business associate recommendation. The best prices and deals often comes from a strong recommendation.
However, it is common today for cold calls and direct contacts, given the availability of the internet and the competitive nature of Chinese businesses. You may source from the internet, trade fairs, catalogues and brochures, advertisements and approach the Chinese companies directly through a call or email.
Alternatively, if you are seeking to invest in a factory in China, you can approach a investment committee or a business advisory directly. They will be able to advise you on your best location based on your industry, raw material and manpower needs. Please contact us directly if you have such a need and we'll be glad to advise accordingly.
Relationship
Chinese business relationship inevitably becomes a social relationship after a while. Unlike Western business relationship which remains professional and perhaps, aloof, even after a long time, Chinese business relationship becomes a social one.
The more you share your personal life, including family, hobbies, political views, aspirations, the closer you are in your business relationship. Sometimes, a lot of time is spent discussing matters outside of business, but then a lot of time, the other party is also making up his mind about your deal based on how much he sees your personal relationship with him.
Seniority
Seniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr or Mrs so and so, it is always appropriate to address the other party by his designation ie Chairman So and So, Director So and So or Manager So and So.
When giving out namecards or brochures, make sure you start with the most senior person before moving down the line. When giving out a namecard or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly.
Giving Face
Giving face (aka giving due respect) is a very important concept in China. You must give the appropriate respect according to rank and seniority. For example, if you are buying gifts for an initial contact, make sure you buy better gifts for the senior managers instead of buying similar gifts across the board.
Similarly, sitting positions in a meeting room or a dining table is accorded accordingly to rank, importance and seniority. It is good to seek advice before embarking on your first meeting with Chinese business contacts to avoid making the wrong move.
Gifts and Presents
Unlike earlier days when China was very poor, gifts, especially of Western origin was especially appreciated. Today, China produces and imports almost anything imaginable and gifts are no longer a novelty.
However, gifts are always appreciated and especially in the smaller cities or towns, will continue to play an important part in your business relationship. Do note that if you are indeed giving gifts, make sure the senior people get a better gift or at least gifts perceived to have a higher value than their junior staff.
Similarly, expect to receive gifts from the Chinese, especially Chinese art products. It is polite not to refuse, especially if it is not of too high a monetary value.
Lunch/Dinner
There is no business talk in China without at least one trip to a restaurant. Sometimes, a trip is made to the restaurant even before any business discussion take place! Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a private room.
There is an elaborate seating arrangement for a Chinese business meal. There are fixed seating positions for the host and the guest and then they are seated again according to seniority. This is a very important aspect of a formal dinner and it is important that you follow the rules accordingly. However, it seems that the Northern Chinese are very particular to this formal seating arrangement while the Southern Chinese has loosen the formalities somewhat.
You may like to find out more this interesting China Book.
Drinking with the Chinese
The Chinese are big drinkers especially in Northern and Western China. It does not matter if it is lunch or dinner; as long as a meal is being hosted, there will be alcohol.
Chinese wine is the favourite, followed by red wine and beer. Chinese wine is more like fuel than liquor, having a alcohol concentration as high as 60%! No matter how good a drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They will win, hands down!
It is often seen as rude not to drink with the Chinese in a formal dinner. To maintain your sanity, either claim to be a non alcoholic or plead medical grounds as an excuse. This will let you off the hook with little or minimal drinks. Better yet, bring a partner who can drink on your behalf!
After Dinner Entertainment
Formal business dinner normally drags for quite sometime as there will be much social talk, some karoake, and drinking contests. Most of the time, everyone is too drunk to indulge in further entertainment after a dinner. In addition, if you are just new to this partnership, you are unlikely to be invited to further after dinner entertainment.
However, once you are familiar with them, you may be invited to a Karaoke, or a Night Club, or a Suana. Do note that if they are the host for the night, all bills will be picked up by them for the night, including all entertainment. It is impolite to fight for the bill or worst, split the bills.
Similarly, if you are the host for the night, you are expected to pick up all bills for the night.
Controversial Issues
There are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible. I have seen many nasty arguments as a result of these topics:
1. You must not mention that Taiwan is an independent state or a country.
2. You must NEVER praise the Japanese or be seen to be good buddies with them
3. You can condemn Mao Tse Tung but avoid critising Deng Hsiao Ping
4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa
Other than that, you are pretty safe to converse with the Chinese anything under the sun!

Another Key for Your Effectiveness

Have you ever tried to get "buy-in" from others or have others tried to get it from you? The other day I was coaching a client I'll call Larry. Larry was telling me how he had gotten his co-worker Patrick to "buy-in" to his plan for handling a sales event. Patrick said he'd go along with Larry's plan, but after the meeting, Larry said that his "win" felt hollow; he had this nagging feeling that it wasn't genuine. Sure enough, as the weeks passed, Patrick didn't do what he had agreed to and Larry ended up spending several more meetings with Patrick. Eventually Larry learned that Patrick had concerns about the plan. Larry also learned something important about getting "buy-in".

Getting Buy-In and Losing Commitment. What Larry learned is that by getting buy-in he often lost what he really wanted: commitment. When you're trying to get others to "buy-in", you've already developed a solution to sell them. Your goal becomes getting others to agree with what you've already decided is the best solution for you and them, rather than engaging in a conversation in which you jointly develop a solution with them. If you're seeking buy-in you can't afford to be curious; you might learn that others have information or needs that don't match the solution you're selling - then you're stuck. If you're like Larry, you may have experienced the failure of success; you may be able to persuade others to buy-in to your solution even when they still have unaddressed concerns.

Crafting Solutions to Create Commitment. Internal Commitment is a core value of the Skilled Facilitator approach. It is a state of mind in which you feel personally responsible for the choice you make. You are committed to the choice because it is intrinsically compelling or satisfying, not because you are rewarded for making the choice or penalized for not making it. Internal commitment is so valuable because it reflects a sense of ownership and a strong motivation to make something happen.

I first learned this at camp as a teenager. As I "supervised" a group of campers, the camp director, who was a social worker, told me, "Roger, people support what they help to create." Years later I learned why this is true. It's not because people are participating that leads them to support a group decision; it's that when they participate productively, the solution the group agrees to meets peoples' needs. To generate commitment in a group, I believe you need to ensure that everyone has the same relevant pool of information, that everyone has expressed their interests, and that the solution incorporates the relevant information and meets people's interests.

This means shifting your mindset from selling to crafting a solution with others. Rather than going into a conversation with a pre-packaged solution you will try to sell to others, it means going into a conversation being clear about your interests and being as curious about others' interests as you are passionate about your own. Then together you can identify your interests and craft a solution that addresses them.

It Doesn't Have to Be Their Idea; It Simply has to Meet their Needs. Have you ever thought that the way to get people committed to your solution is to have them think it was their idea? If so, you've probably asked them some questions that, if they answered "correctly", would lead them to suggest the very solution you had already thought of. Many people use this manipulative strategy (which they can't be transparent about with the client) because they mistakenly believe that others have to come up with the solution to be committed to it. They don't; the solution simply has to meet their needs.

My clients who are facilitators often make this mistake; you may too. For example, a facilitator wants to use a set of ground rules to help a group work together. She has a set of ground rules that she would like the group to use and mistakenly believes that the group will find the ground rules more desirable if they come up with them on their own. As a result, the facilitator asks the group, "What ground rules would you like to have for working effectively together?" privately hoping that the group will identify ground rules that the facilitator uses. If the group doesn't identify the facilitator's ground rules, the facilitator subtly tries to get her own ground rules in place, either by asking more leading questions (like "would it be good to have a ground rule about sharing your reasoning?), rephrasing the group member's suggestions, or finally, if all else fails, suggesting some of her own.

I believe that group members don't have to develop their own ground rules to be committed to using them; they simply need to make an informed free choice to use them and believe that the ground rules meet their needs. As a group process expert, I have a clear idea of what kinds of ground rules lead to more effective group behavior (it's our "Ground Rules for Effective Groups"). Part of being accountable to the group means sharing my ground rules with them and explaining my reasoning for using them. Then I ask whether people have any concerns about using these ground rules and whether there are other ground rules that they would like to suggest using. In this way, I am transparent about and accountable for my thinking, I'm curious about their thinking, and together we can commit to a set of ground rules that meets all of our needs.

What are your thoughts about creating internal commitment? Please share them with us and others at the Mutual Learning Action Group.

So Many Small Things

We rarely see stories or articles about productivity in the newspaper or on TV. When we do, it's usually just another story on the economy that defies understanding.
Which is too bad. Our prosperous standard of living arrived, in large part, because of the ability of companies and organizations everywhere, and for the past several hundred years, to increase productivity.
Productivity simply refers to how much labor or money it takes to create a product or service. If a carpenter can build one house in one month, then the carpenter's productivity is one house per month. If the carpenter gets new tools or new ideas and does the job more quickly, his productivity goes up.
Every time productivity goes up, the carpenter's standard of living goes up, too (generally speaking). Here's another example of how productivity works:
Suppose a British company discovers how to make steel products just a tiny, tiny bit harder. Then a company in the U.S.A. uses this process to make ball bearings that last an average of 423 days rather than 420 days, when they're used in truck axles.
A trucking company that hauls washing machines from Mexico City to Montreal, Canada buys trucks with these better bearings. That means it can haul a load for a few dollars less. In turn, this means the cost of each washer goes down by a few cents.
But, what's a few cents less when you're paying hundreds of dollars for a new washer? What's more, you'd probably observe that you only need a new washing machine once every fifteen or twenty years.
That's true, but this productivity improvement is just one of the many millions of small improvements we've seen since the Industrial Revolution (and some improvements even predate that period).
We also need to remember a couple of other points. First, productivity improvements have a cumulative effect, which is to say they build on each other to multiply the gains. Second, productivity has increased at an unprecedented rate for the past half century.
The most obvious example sits on your desk: a personal computer. Not too many years ago, we prepared letters on a typewriter, one letter at a time. Now, using a computer and word processor, we can select a stock letter from a collection that covers most common issues, add a name and address using mail merge, send the document to the printer, and in seconds a completed letter lands on our desk.
The personal computer, though, is simply the tip of an iceberg. Almost everything mechanical or electrical works better or works faster than its counterpart of 50 years ago. We haven't heard about most of those improvements on the news, for obvious reasons. Individually, they meant little except to people who were directly affected; but collectively they've revolutionized the way we work and live.

Overlooked Principle To Raising Your Prices

Finding customers isn't usually the hard part of selling.
It's "closing" that can drive you crazy. You know the
excuses. They want to shop around a bit longer, they're not
sure they can afford the price, they need to get approval
from a superior. The list goes on and on. Your challenge is
to find ways to close prospects at a higher rate, and
thereby speed growth and increase revenues.
One sure fired way to increase revenues without damaging
your reputation, is to educate your customers into your
price increase first before doing it. You don't want to be
worried about raising your prices. Most people are afraid
to raise their prices.
For example, one of my original companies operated at a
marginal price just under the standard for the industry. We
got a lot of business and kept the customers coming
however, we didn't get much more business than the next guy
whose prices were higher. We were always afraid to raise
our prices and lose customers.
Finally, we did. We got just as many customers and
increased our bottom line by 35%. We then decided to raise
our prices again. Still - same amount of customers.
We ended up raising them even higher to almost double what
we had originally started at. We did lose customers at that
point. However, we had increased our fees so high that our
margin was still much higher than it was before and we
doubled our business. All by simply raising our prices.
We had already delivered quality work and were confident in
our products and services. All we did was raise our prices.
To overcome people just looking for price, educate them.
What we did was let them know about some of our follow-up
services, our customer service plan, things that we
naturally included in our service that other marketing
companies didn't. By educating them and showing them what
they were getting, they were more than happy to pay our
pnces.
Why would anyone pay more for the exact same thing? Once
they found out what we were offering, they didn't perceive
us as offering the same thing as the other marketing
companies. When you don't educate them, they perceive you
the same as the next business.
If all things are equal, they will choose the cheapest
price. Once you convince them and educate them, you no
longer have to worry about it. Price is simply what you pay
for something. Value is what you get. The customer wants to
know what he's going to get. Every customer wants to think
they're going to get good value.
Your customers don't really care about the low price,
especially if they're going to get bad workmanship and poor
products or services. They want value. If you give them
value, you might as well charge them for it.
Don't wait for them to tell you you're expensive or they
can't afford it. If they're telling you this, it's too
late. You haven't educated them on the value they will
receive from your products and services. You need to
educate them right from the beginning from the time they
request your no cost book or report. Your customers are not
automatically inclined to buy the cheapest thing they can
get.
Raise your prices. Get paid. You're worth it. If you've
built in a great guarantee, which should be one of your
strategies, then you are on your way to deliver quality
products and services to your customers at all times. You
do great work, give them great quality, educate them,
you're better than your competitors you should get paid for
it. If you believe you're worth it, then your prospects and
clients will believe it also.

North Versus South

Now that I live in the South, I see how different the social environment is here. It's friendly and relationships definitely come first when doing business. When I lived in NYC, it was enough to say who you were and who you worked with or for and you'd be accepted on your own merit.

So, culturally, the North and South have its differences. Since the south has been a bit behind in a lot of ways, I find myself teaching some of the women here techniques to be noticed more, and how to assert them more. Additionally, I find that the younger men here view their age as a detriment as opposed to an asset. They want to appear older, or have the confidence of an older person. Again, that wasn't' anything I dealt with in NY. People there are judged on their results, not their age or sex. It seemed to me anyway.

For myself, I find that I'm not as well received here in the South. When I come to a company, I bring a lot of experience to the table. I have been coaching and training for over 10 years! But when I am seen upon first impression here, the feeling (I've been told) is "who does she think she is?" My son's preschool teacher told me this. She said that she didn't think we'd ever have anything in common with me. I dropped him off at school dressed for work, and walk and talk fast. This was overwhelming to her at first. When she took time to get to know me she said: "I had NO ideeeaaaa you were SOOOO. niiiiiice" .. in her southern, charming way.

My clothes say that I like trends. I do have a lot of classics in my wardrobe, but I add accessories that are fun. This area is very conservative. The best outfit to wear is a dark suit. The best personality to show off at first is a reserved, under toned and one that brings no attention to you. Conservative is the best word to describe the south. The Bible Belt is alive and well!

Women here are very sweet. I've also noticed that many of them want to come off as more powerful to get the respect they deserve. There are a few of those "good ol' boys" around. Their attitude is "don't worry your pretty little head about anything; I'll take care of it". Meanwhile, they are calling the woman's clients and trying to scam on them, they are making golf plans when the woman goes to the ladies room with the client and they are doodling when the woman is conducting a meeting.

I've coached several of the women here to fight like the men! One of my clients was actually told recently not to get her (get ready!) "panties in a ... bind". I coached her to not only get her PANTIES in a bind, but to get all of those men in a room, stand before them as they sat down, stare them down and stand up for what she knew to be right! She did and she woke them up to the fact that they had a JUDAS in their midst. It's an ongoing saga, but she took the reins and confronted an ugly situation.

Women have to take themselves seriously before others are going to take them seriously too. Half the time, it's the other women who are posing problems for the go getters in the office. Women here have some sort of clique thing going. At one company I coached for, they called themselves "the beautiful people". Well, in my mind, beauty is more in the actions than their looks. And if that's at all the case, this group was the ugliest group of women anywhere. They were awful to the other women in the company. As a result they are hurting the environment of the whole company. They are protective of their turf, and they severely punish the other women who are outside of their clique by gossiping or spreading rumors. I'm sad to say, that the ringleader of this group could be found daily reading her bible in the women's lobby. I just wonder if she really paid attention to what she was reading?

Okay, I know that northerners have politics. I've maneuvered enough people through their company politics to know that you have to be smart about it. But in the north, you know right up front where you stand. You know when you mess up and you know what you have to do to achieve more status or more money. (Unless you are in a corporate environment... where anything can happen!) Here in the south, they'll do all of the nice things to your face, and they'll ruin you behind your back.

Since I'm not employed full time in any organization, I've seen the same thing happen over and over with different clients. I've coached the women to refrain from making friends if they are shut out of a clique. If they are being treated with dirty politics, sometimes you just have to be smarter. Being friends with the boss' wife is a good one, or landing the biggest client is another way to secure your position with the company. One of the women I am coaching was so hated for her beauty, that she threw caution to the wind and got HAIR extensions! It made the women rage, but they ended up copying her look.

The people who do the best in organizations tend to stay OUT of company politics. They don't gossip and they have one or two friends in the company but they don't rely on their co-workers for their emotional support. Work is work and it's best to put your best foot forward every day.

The people who gain respect are those who are consistent. They come prepared for meetings and bring value to the team every day. They go out of their way to help each of the team members and work late often if they have to.

There are many things to take away that are great about the south. It's slower and it's more manageable. You don't have to wear tennis shoes to the office because you are commuting from an hour away and walking 2 miles from your car to work. The traffic is bad but mostly people are polite. People don't usually cut in front of you and they wave you in.

When you walk in an office, people say hi. They're always friendly and willing to talk and share. It's easy to make friends here. People don't look at you suspiciously if you ask them to get together for lunch or dinner. They actually thank you for taking the initiative.

The people you meet in everyday life are nice and talk. Sure it takes time, but it's probably more enjoyable. And, it's not as competitive. The northerners who come here have to SLOW down in the work place. Often times, people can't physically keep up with the work load that the Northerners generate.

Charlotte has become a melting pot. There are people from everywhere, but it still has the social mores from the south. It's best to WATCH first and LEARN before diving in and taking it for granted that you'll be successful here.

I've learned that the ol' line from Frank Sinatra's song "if you can make it in NY, you can make it anywhere" is NOT TRUE. It's far from the truth. I say, if you make it in NY, you'll have to change your ways to be successful elsewhere.

Measuring Training Programs: Cost Vs Benefit

For decades companies have been struggling with the real costs,
benefits and return-on-investment of training costs. With
increasing online learning opportunities, organizations are finding their focus shifting from providing costly onsite training programs to the use of new tools and technology now available. Companies need to understand and apply the business analytics in order to fully appreciate the effectiveness and impact that e-learning and training offers.

Companies invest large amounts of money, resources and time in
training. According to a 2002 ASTD State of the Industry Report
where over 375 major corporations were surveyed, companies spent
between one (1) and three (3) percent of their total payroll on
training. This translated to a per-person basis of more than
US $700 per employee per year. In cutting-edge companies that
significantly increases to US $1400 or more per person per year.

If training expenses are viewed as a percentage of the company's
profits, then the training budget could represent as much as
5 - 20% of the total profit margin. With increasing costs
associated with travel and lodging, as well as increasing costs
and expenses to register and attend meetings or to develop in-house training programs, training budget costs are undboutedly going to increase, which only underscores the need to justify its cost.

In order to effectively measure training programs, companies
are faced with three critical issues: efficiency, effectiveness, and compliance. Every major decision made regarding training falls into one of these three areas. Fortunately, each of these three areas can be benchmarked and measured.

The ASTD 2002 study reported that only one-third of companies
measured the effectiveness of learning and that 12% or less attempted to measure job and business impact of their training programs. Why? Interestingly enough the top reason why companies fail to measure training is that they lack the experience, tools and infrastructure to do so.

It is impossible to improve or effectively optimize the training
program if it is not benchmarked or measured. Training should be measured and evaluated just as companies measure productivity, profit or quality. There have been many scorecards, dashboards, algorithms or metrics developed for this purpose.

If one considers the total training investment per person in the
company (see above), the question is how much should they spend
on measurement and evaluation? One, five or ten percent? Looking back at the ASTD 2002 study of best practices, we find that most companies spend 40-50% of their total training dollars on content development, 8-10% on infrastructure and the remaining resources on salaries and facilities costs.

For many development of measurement and evaluation tools sounds like additional costs and expense to the organization. Companies who allocate a small, but fixed percentage of the training budget to this purpose will find themselves able to effectively measure the effectiveness for their overall investment in training. One study found that organizations who adopt this model, and who spend US $2-10 per employee on learning analytics reported noticeable improvements in the measurability and return on investment.

Companies will need to justify the costs associated with measuring learning by identifying the business impact and risk of not training its employees. This could be quantified by fines, or profit loss as a result of being out of compliance with laws or standards. Often times this can result in fines levied against the company or even lawsuits or other forms of profit loss.

In healthcare, for example, lack of compliance with correctly
collecting, coding and reporting cancer incidence could have far-reaching impact on budget dollars spent not only in the training and operational costs associated with the Cancer Registry department, but could also negate the costs associated with cancer program development and community outreach programs. Although program development and outreach programs have the ability to compete with the consumer's dollars, all this could be for naught if the required reporting is not done accurately and in compliance with the State or accreditation program standards. Training programs for the Cancer Registry can ensure that the data management processes are appropriately managed.

So, in summary, companies should be focusing on the development
and measurement of their learning programs. The investment in
learning analytics will outweigh the risks of inadequate training. Success for any organization will directly depend on their employee's understanding of their products, services, operations and policies. Employees must be thoroughly trained in compliance, standards, confidentiality, non-disclosure and other legally sensitive areas of the company. And, companies must be able to track and measure this using effective learning analytics.

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Knowledge is Business

Knowledge is the business fully as much as customer is the business. Physical goods or services are only the vehicle for the exchange of customer purchasing power against business knowledge".
Above statement was made by Peter F. Drucker, a prominent Management and marketing guru.
Any economic result is the result of differentiation. What is that niche you posses that make you hot property in any market. It comes from knowledge. Knowledge is held by organization people. One day all labour can be automated by machines. But knowledge specifically is a human asset. If you have knowledgeable people you can target the sky. Books are more collection of information. Internet is one of the best medium for generating information on particular subject. But information is not a business.
Knowledge itself is not a business when used inside. When it do not produce value to the holder of knowledge, it is useless. It becomes business when applied outside of a business, to the customer, market and end-uses.
Mittal steel is king of steel market today. It posses a peculiar knowledge of converting non- performing public business and factory into highly profitable steel producing entity. It has done this numerous times Laxmi Mittal, Chairman and managing director, and his people do not change much in the plants. According to Aditya Mittal, CFO, and son of Laxmi Mittal, they apply their knowledge and past experience to turn thing around, Mittal steel turned their early acquisition around in 18 months. But now they have refined their knowledge and make any plant they capture profit producer within 6 months. That's where I say business is knowledge and knowledge is business.
Looking at GE, they have an uncanny ability to mark a new opportunity and jump into it in a big way. GE is one of the leader and rare gem in America to dominate the whole 20th century. None have done that. They posses best of best talent in the market. But still there is no example of a business which they have acquired and which is the leader in its market. They messed up with RCA, and their finance acquisition. Yet they are king with GE capital, a blue eye child of GE.
So what make an organization successful in a specific area, while a distant runner in other area? Assets and money could be acquired but it is the knowledge which turns that asset into real business.
That why an old edge say. Give me 10 knowledgeable people and I will conquer the world.

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The Greatest TV Story Ever Told

The gains we get from increased productivity come to us in two main ways: higher wages, or less expensive products. Let's take a look at one product that costs less and delivers more value because of higher productivity:
When I grew up in the 1950s, everyone in the neighborhood took notice when a new television set arrived. The cost of a set represented a big portion of a family's income.
And then there was upkeep. In those days, we could count on our TV sets to make a funny noise and go black just before the car chase came to a climax, just before the big wedding on a soap opera, or just before the championship game. So we called a TV repairman, who came to the house, replaced a tube or two, and gave us a bill for which we hadn't budgeted.
On the other hand, when you go to a discount store and buy a new TV set, the cost likely represents less than a day's pay, and you'll probably never call a repairman (assuming you could even find one). Your set will last for many years, and when it shows its last commercial, you will simply throw it out and buy a new one. In effect, TV sets have become so inexpensive they're a disposable product.
Our television sets are just one of the many products that cost less, at least in real dollars, because of productivity improvements. If we look through our houses we will see many products that effectively cost less and do more than they did a generation ago.
We might even say that the greatest television story ever told is one you won't see on the screen; it's the story of a half century of improvements that pulled the real prices of television sets way down, and pushed product quality way up. And that's true of many household products, especially electronic products.