Tom Harris: How mentoring programs are a smart investment for organizations

Tom Harris, CEO, HMB

Tom Harris, CEO, HMB

Mentoring programs that help develop an individual’s hard and soft business skills are essential to maintaining a competitive advantage in today’s crowded marketplace. Your employees represent your brand every day. Mentoring programs should be designed to support retention as well as help individuals with career development and satisfaction throughout their employment with your organization.

It’s critical to plan, implement and evaluate a mentoring program that sets your offerings apart from the competition by positioning team members as trusted advisers. A culture of mentoring must be created and nurtured at all levels within an organization.

Here’s how to start a mentoring program within your company:

Assess company needs. Obtain feedback from clients, employees, managers and partners on personal and professional development gaps that exist within the organization.  Use questionnaires or conduct personal interviews.

Set measurable company goals. Determine the goals based upon your assessment, and consider cross-training, leadership and skill development, and employee retention initiatives.

Design a mentoring program to fit the culture. Enlist input from all areas of the organization, especially new hires, to ensure buy-in at all levels. Your mentorship program should reflect the values and principles of the organization, whatever the size.

Create a budget. Develop a budget to include incentives for mentors, training programs and infrastructure to support the program.

Launch the program. Organize an event to roll out the new mentorship program. Prepare to answer questions and gather additional feedback. Also consider developing an overview sheet and Q&A that provides how it works, duration, who can apply, expectations, etc.

Identify mentors. Mentors should be excellent communicators with well-developed listening skills. Here are a couple of matters to keep in mind when determining which mentors are most appropriate for a particular employee:

  • Match mentors to mentees. The best mentorship relationships are based upon shared values and include elements of reciprocity, mutual respect and clear expectations.
  • Reciprocity: Both parties need to benefit from the relationship. Mentees should be prepared to give constructive feedback to the mentor and consider what they might be able to teach their mentor so that the mentor is able to grow professionally.
  • Mutual respect: Both parties need to respect their partner’s time, effort, experience and qualifications.
  • Clear expectations: Mentees need to take an active role in managing the relationship by arranging and preparing for meetings to ensure the best use of their mentor’s time.
  • Mentor the mentor. Provide guidelines such as meeting frequency, but allow personal and professional development initiatives to develop through a collaborative exchange between participants. Some guidelines:
  • Set goals: Establish goals that are specific and quantifiable. If a goal is stated as, “Improve your technical skills,” it is not as easily measured as one that states, “Achieve XYZ certification by the third quarter of this year.”
  • Tap into mentee’s passions: Mentors should help identify ways to tap into the mentee’s passion(s) to guide them in their career development while helping the company reach its goals.
  • Measure it: Mentoring programs should be routinely measured by soliciting participant feedback, comparing employee retention rates with those who participated in the mentoring program against those who did not, determining if client satisfaction has improved, and evaluating participant productivity and engagement.

Professional service firms reaping the benefits of mentoring programs are experiencing accelerated on-boarding, training and increased retention rates. They also achieve higher levels of client satisfaction and retention — as clients are able to tap into expertise and see that their own feedback is heard.

If you take some time to plan, implement and enhance your mentoring program, you will realize many benefits. These include offering employees a meaningful opportunity for exchange of information and feedback to achieve fulfilling careers while helping the company reach its goals.

Tom Harris is CEO of the Westerville-based businesses technology and IT consulting firm HMB. Learn more at www.hmbnet.com.

 

 

Joe Kuklis: Lobbying for your business

Many CEOs, CFOs, investors and executives do not realize the impact federal, state and local government have on their organization, or the importance of maintaining a comprehensive government affairs strategy as part of their annual business planning process.

As a lobbyist, I act as a professional guide for my clients to a variety of federal, state and local elected officials. When businesses choose to interface with the government, many consider hiring a lobbying professional who can help develop a government affairs plan — just as you would hire an accountant for an Internal Revenue Service audit or a lawyer for a court case.

If you choose to start the process on your own, it is imperative that you determine what you want to accomplish as a business. Do you want to become an eligible vendor with a specific government agency? Are you looking to expand your business or are you seeking public incentives to help you with hiring new employees or training your workforce?

Maybe you just want government “not” to do something that may negatively impact your day-to-day operations. You must identify what it is that you want and be clear about it when meeting with agents of government.

Here are some tips for lobbying the government:

Identify your targets

First, make a list of legislators who could aid in your effort. Start by looking at the local officials who represent you, your business and your business’ employees geographically. They have the greatest reason for supporting your requests. They want to see your business succeed and hire more of their constituents as you grow, so they should be your Tier 1 targets.

Your Tier 2 targets should include legislators who are on the committees that have oversight of your issues, legislators who are in leadership positions and who may have a little more political gravity than most, and legislators who have expressed a public interest in your activities.

These champions will help augment your efforts with letters of support, calls into agencies to help arrange meetings, and inquiries to secretaries and agency directors when you are not getting the answers you want from government.

Arrange a meeting

Once you have a meeting with a legislator, arrive prepared and practiced. Usually, meetings only last between 10 and 20 minutes, so make sure you and your group are aware of the issues you need to cover and stick to them. Know your facts.

However, if a legislator or their staff asks a question for which you do not have the answer, don’t make something up on the fly. Take note of it and get back to them. And, if a legislator challenges you on something, answer the question honestly, but not argumentatively.

Know who you are meeting with, their goals and where they stand on the issues before your meeting.

For example, not all legislators support drilling for Marcellus Shale gas and if you are a driller walking into their office, you may be in for a hard time. Make sure your requests are realistic for each of your visits and always remain professional.

Lobbying is a contact sport. The more you contact a legislator and develop a rapport with them, the more inclined they will be to help. Realize that in doing this you are not working alone.

At the end of the day, the lobbying industry acts as a forum for conflict resolution among divergent interests. Whether you decided to go it alone, or hire a firm, know that an honest, succinct, positive and respectful approach will be effective. And remember that a successful lobbying effort takes time, resources and preparation.

 

Joe Kuklis is a political lobbyist and head of Duane Morris Government Strategies. He has built a successful career lobbying for organizations and businesses of all sizes and has helped raise $500 million for clients ranging from Fortune 500 corporations to one-person startups. His book, “The Robin Hood of D.C.,” is an insider’s guide to the government marketplace for small, mid-sized and large businesses. Visit www.robinhoodofdc.com for more information.

Former franchisee turned franchisor, Wan Kim reinvigorates Smoothie King as CEO

Wan Kim, Global CEO, Smoothie King Franchises Inc.

Wan Kim, Global CEO, Smoothie King Franchises Inc.

Imagine it’s a hot day. You’re thirsty and hungry, but don’t want anything unhealthy. There aren’t many options available to meet all those needs. In the early ’70s, the concept of the smoothie was born out of this unmet need. Opened in 1973, Smoothie King Franchises Inc. was the original smoothie brand.

In 2001, Wan Kim had this same urge to find a healthy option to quench his thirst and satisfy his hunger. He had his first experience with a Smoothie King smoothie while studying at University of California at Irvine. The high quality, healthy product had him hooked immediately.

Kim was so impacted by the product that he became a Smoothie King franchisee in South Korea. Since 2003 he has owned several Smoothie King franchises, and in 2012 when the opportunity came about to own the brand, he jumped at the chance.

“I bought the company in July 2012,” says Kim, Global CEO. “I really love this brand. It’s not because I’m the owner, but because we have great products. There are a lot of changes still happening, but it’s exciting.”

Smoothie King, a 300-employee, more than $230 million organization, is now 40 years old. The brand has more than 700 stores and a presence in the United States, Korea and Singapore. Despite the company’s established age and fairly big size, a new owner and plenty of potential market opportunity leave the brand in growth mode today.

“Our next five-year growth plan is to open 1,000 stores in the U.S. and 500 outside the U.S.,” Kim says. “Last year the company did about 26 franchise openings. This year in the first quarter the company has done 40 to 45 signings.”

Kim’s experience as a franchisee and now a franchisor has given the company new life and Kim is excited about where he can bring the brand and its smoothies in the near future.

Here’s how Kim is spreading the word about Smoothie King in the U.S. and overseas.

Understand all areas of your business

Kim was a franchisee for nearly a decade in South Korea. His stores were some of the highest grossing for Smoothie King before he became CEO.

“Obviously franchisees and franchisors have some different views, but eventually the bottom line is to make a better brand,” Kim says. “The path they take can be different, so you have to keep communicating to each other and look at the bigger picture.”

Kim has a very unique advantage over numerous other franchise CEOs. He now has experience as a franchisee and a franchisor.

“I have both aspects and know what a franchise wants and needs, and I know how I need to communicate,” he says. “In any kind of business, sometimes people forget why we do it. So that’s why I keep communicating and keep telling our people why we do this business. We have a great mission and a great vision. We just have to talk about it.

“A lot of people want to make money and be comfortable and I get that and that’s very, very important, but there has to be another reason why we do this. Smoothie King is a healthy choice and our mission is to help people live a better lifestyle.”

While the company’s mission is to help people live a healthier lifestyle, Kim wanted to make sure that the company’s franchises were in good health also.

“As soon as I bought the company I looked at how many single franchisees we have, because when I was a franchisee I thought becoming a multi-unit franchisee was actually very challenging,” he says. “As a franchisor, they don’t understand what kind of challenges franchisees have when they have a second or third location.

“I started to visit some multi-unit franchisees that we have to look at what kind of system they have in place. Today, we are assembling all those systems so that whenever we have a single franchisee try to become a multi-unit franchisee we have some system to help them grow.”

Having those systems in place will become very beneficial as Kim continues to look at ways he can expand the brand.

“Right now we are in growth mode and are opening a lot of stores and also expanding into other countries,” Kim says. “When you grow, you are hiring a lot of people and when you’re expanding outside the United States you encounter different cultures. In order for me to assemble all those differences I need a really strong mission for why we do this business so that it doesn’t matter what kind of culture or background you’re from.”

Prepare for growth mode

Today, Kim is focused on growing the Smoothie King brand outside the U.S. and in the Southern parts of the U.S. where the company has a strong presence, but a lot of potential still remains.

“We want to make sure that we secure our market before we expand to a different part of the U.S.,” Kim says. “That expansion is happening in Florida, Texas, Georgia and other southern parts of the U.S. Going outside the United States we are looking at Malaysia, Indonesia, Thailand, Taiwan, Japan and the Middle East. Our goal is to open two markets this year and two more markets next year.”

Fast-paced growth like Smoothie King is expecting requires a strong culture and mission that make the company attractive anywhere it goes.

“When you are in growth mode I would advise that you want to have a really strong culture in your organization, so that whomever you hire can be blended into your culture,” he says. “You have to set up a strong mission, vision and keep communicating with your employees.”

When you take your company outside of the United States you will experience a lot of cultural difference, and you have to be prepared for it.

“A lot of times when people don’t have any experience with different cultures they will think it’s wrong, but in fact it’s different,” Kim says. “In order for you to go to other countries and do business you have to learn how to respect their culture. If you don’t respect their culture they will know immediately. You have to educate your employees.”

The vast cultural differences Smoothie King employees will experience as the brand continues to expand isn’t the only change they’ll have to accept, they’ll also have to buy into the sheer amount of growth that Kim sees in the company’s future.

“A lot of times when companies grow employees don’t really see how far we can go,” he says. “When we start to grow there is a lot of work coming in and a lot of things are changing. It is very important that I need to keep communicating with employees that we can get there, because if you don’t believe we can get there, then it’s not going to happen.”

One of the first things Kim did when he bought the company was to tell the employees about the growth plan and a lot of people didn’t buy in.

“They were thinking, ‘Oh, it’s a new owner; of course he’s going to be thinking of growth, but it’s not possible,’” he says. “So I had to keep communicating that it’s going to happen and one by one, I started to show them that this would happen and then it really happened and people believed in the plan. I know there are still people who don’t believe where we can go, so I still have to communicate.”

Kim bought the company a little more than a year ago and he is having a blast seeing the company succeed little by little.

“I tell my employees to imagine if we were the size of any big fast food company, the world could be a different place,” he says. “It’s not just about making money and having success. It’s also about influencing more and more people to live a healthier lifestyle.”

How to reach: Smoothie King Franchises Inc., (985) 635-6973 or www.smoothieking.com

Bob Diener: Seven tips for entrepreneurs — How to reach success and know when to walk away

Bob Diener, CEO, Hotels.com and GetaRoom.com

Bob Diener, president and co-founder, getaroom.com

Success for a business can be fleeting. A wave of interest and customers can come in, but if the company’s business model or value proposition is not sound, then it’s difficult to maintain the momentum.

Once a business is moving along, most entrepreneurs will also reach a decision point as to when to move on from the company, whether it’s through a sale or simply ceasing operations.

Below are seven core tips for entrepreneurs who are looking to build a company and also some advice for those who need to leave their venture and create another.

Set realistic goals

A positive attitude and confidence in your business’ long-term success are vital. However, when it comes to setting goals you need to inject a dose of realism.

Manage your own expectations so that even if you reach modest success benchmarks, you won’t have any sense of disappointment. Set conservative goals that will allow you to grow slowly. Use market research to gauge the size of your market and set reasonable sales goals.

Doing this legwork on the front end will pay off by helping you see if your plan is flawed and needs tweaking.

You have to stand out

The attributes that make your product or service unique will be your main selling proposition.

Be honest about the true uniqueness and don’t simply trust your biased opinion. You need to be able to market your competitive differentiator, and it needs to matter from the customer’s perspective.

Set the value proposition

If your product’s special traits don’t offer value, then they won’t do you any good. Gather the advice of others to gauge if you are presenting true cost vs. value to customers. The value proposition is a core of the business, and without one it will certainly fail.

Implement and follow a sound business model

Do you have a plan in place for how the company will make money?

You should be revenue-focused right away and closely watch all expenses, especially your initial capital costs and any personnel salaries. Creating a full business plan at the outset will also protect you from overextending yourself or dipping too far into personal finances.

Know when to walk away

Ideally, you will walk away from your business on your own terms. Perhaps you have an offer to sell the company that will enable you to take time off or even retire early! If you think the company has reached its peak and cannot grab more market share, then you should consider selling.

Conversely, if your strategies are simply not panning out, then you need to know when it’s time to pull the plug. Don’t risk personal financial ruin pursuing the business. If you have the entrepreneurial spirit then there is always another venture.

When to begin again

If you walked away from your company and are in good financial shape, then you can explore starting another company. You should first have a reflective period where you look at the things you did right and wrong with your other business. Try to spot consistent issues.

Perhaps you overestimated the costs of production or the expenses incurred due to staffing? Don’t be afraid to take some classes to broaden your knowledge base. Once you have learned some lessons and adjusted your strategy, then you can dive into your next company with the right focus.

Find a niche

You not only need a product or service with unique traits, but you also need to identify a good niche within a decent-sized market. What’s a good example of a big market? Consider the hotel lodging business. It’s $500 billion. Think of any percentage of that sum and you have a hefty dollar amount.

Bob Diener is a pioneer in the hotel consolidation and online travel industry with more than 25 years of experience. Diener is the president and co-founder of www.getaroom.com and is co-founder of the Hotel Reservations Network, now known as Hotels.com. 

Paul Hammes – Five tips for a successful divestment strategy

Paul Hammes, Divestiture Advisory Services Leader for Transaction Advisory Services, EY

Paul Hammes, Divestiture Advisory Services Leader for Transaction Advisory Services, EY

Companies taking a “wait-and-see” approach to deal-making as economic uncertainty persists may be missing out on growth and value opportunities.

Many companies have looked to divestments to offset cash and credit challenges and to free up capital to drive growth. But this short-term thinking is shifting as companies plan for the long term and take a more strategic approach to divesting.

In a recent EY divestment study that surveyed almost 600 executives, 77 percent said they planned to accelerate divestments within the next two years, and 46 percent are planning to divest in the same time frame. As companies signal an increased appetite for divestitures, it’s important they understand and implement the appropriate steps to achieve greater value for shareholders.

Evidence from our study, combined with our work with clients, has shown that there are five leading practices that companies should follow in order to execute a successful divestment:

Conduct rigorous and regular portfolio management

Review your portfolio regularly. Companies can assess whether assets are contributing to strategic goals or if capital can be better used for other purposes.

Companies that use divestments as a strategic tool to enhance shareholder value or focus on core business strategies, rather than considering them as a reactive move to free up cash or pay down debt, tend to improve their divestment results.

Consider the full range of potential buyers

There is an intense amount of competition from buyers today for good, high-quality assets and they’re ready to transact. Appealing to a broad group of buyers can garner a price that exceeds expectations.

Companies should think about the buyer universe for a potential asset sale differently than they might have in the past, considering potential foreign buyers, buyers within different sectors and private equity firms. Each buyer may have different information needs that require a different planning process.

Articulate a compelling value and growth story

Sellers should provide tailored information about how an asset fits with the buyer’s business to help achieve strategic objectives. Develop an M&A plan for the asset or provide a view of synergy opportunities to buyers.

Prepare rigorously

Effective ongoing preparation can instill buyer confidence. As a result, companies can better control the process and realize greater speed and value. Half of the executives surveyed admit that certain changes to the preparation process could have made a significant difference during divestment.

Understand the importance of separation planning

Probably the most crucial aspect of a divestment is separation planning, yet 56 percent of respondents identified a clear separation road map as the most complex part of the divestment.

Other separation challenges include decisions regarding the completion mechanism, tax planning, estimating stand-alone costs and negotiating transition services agreements.

Every day a company waits to evaluate its capital strategy, someone else is making a change and gaining an advantage.

In heeding these five key practices, companies can take a more strategic and ultimately successful approach to divestments to ensure they get the most value possible and grow the bottom line.

Paul Hammes is the Divestiture Advisory Services Leader for Transaction Advisory Services at EY. Reach him at www.ey.com.

Matthew Figgie and Rick Solon: Energy and the future

Matthew Figgie, chairman, Clark-Reliance Corp.

Matthew Figgie, Chairman, Clark-Reliance Corp.

Looking to the future, every business can benefit by seeing what the trends are in the energy market and how those trends ultimately may affect business. As societies advance, they will continue to need energy to power homes, business, industry, transportation and other services.

By assessing the trends in energy supply, demand and technology, companies can make strategic plans and long-term investments that underpin their business strategy. Several key findings are relevant for all companies to consider when looking at macroeconomic views of the energy markets. This view must not only look at today, but years in advance.

One basic theme is that the appetite for energy will grow immensely as everything will be more electronic and driven by where we get energy from. Companies need to assess their growth strategy to suit their present needs and future consumption.

Here are some fundamentals:

Population: The population between now and 2040 will grow by 25 percent. In 2040, we will have almost 9 billion people on earth and it is anticipated that 75 percent of the world’s population will reside in the Asia Pacific and Africa. A country’s working age population, people ages 15 to 64, represents the driver for its economic growth and energy demand. After 2030, India will have the largest population, and 70 percent of its population will be in the working age population range.

Rick Solon, President and CEO, Clark-Reliance Corp.

Rick Solon, President and CEO, Clark-Reliance Corp.

Energy: Efficiency will continue to play a key role in solving our energy challenges. Energy demands in developing nations will rise by 65 percent by 2040, reflecting growing prosperity and expanding economies. With all of this growth comes a greater demand for electricity.

Computers, smartphones, air conditioners, microwaves and washing machines — these things all depend on electricity to work. And as the number of homes and businesses across the world grows, so does the need for power. The fuels we use to power our world are also evolving, with natural gas and nuclear power generation in non-OECD countries increasing by 150 percent.

Residential: As economies and populations grow, so will energy needs. By 2040, residential and commercial demand is expected to rise approximately 50 percent.

This is being driven by developing countries. There are about 1.3 billion people today who do not have access to electricity, and while demand is anticipated to increase by 50 percent, energy use per person is actually declining thanks to energy-efficient buildings and appliances.

Transportation: Transportation-related energy demand will increase by more than 40 percent from 2010 to 2040. Most of this demand is driven by heavy-duty sources (freight trucks, buses, emergency vehicles and work trucks), but as personal vehicles are becoming significantly more energy-efficient, the demand will rise steadily.

More importantly, mpg will become more attractive, with anticipated mpg to increase from 27 to 47 mpg. The mpg increase is attributed to the use of improved engines and transmissions, along with lighter body and accessory parts, vehicle downsizing and increased use of hybrids.

Industrial: Industrial energy demand will grow by 30 percent. The fastest growing area for industrial demand comes from heavy industries. The most flourishing is the chemical industry.

These global considerations are important as you look to the future to find those things from a macroeconomic basis that should have an impact on your business. It is necessary to find a series of relevant statistics that will help you identify early warning indicators of what you should do in terms of product development and industry growth.

 

Matthew P. Figgie is chairman of Clark-Reliance, a global, multi-divisional manufacturing company with sales in more than 80 countries, serving the power generation petroleum, refining and chemical processing industries. He is also chairman of Figgie Capital and the Figgie Foundation, a member of the University Hospitals Board of Directors, corporate co-chairman for the 2013 Five Star Sensation and chairman of the National Kidney Walk.

Rick Solon is president and CEO of Clark-Reliance and has more than 35 years of experience in manufacturing and operating companies. He is also the chairman of the National Kidney Foundation Golf Outing.

Kailesh Karavadra is focusing on culture and talent to deliver outstanding results at EY San Jose

Kailesh Karavadra, managing principal, EY San Jose

Kailesh Karavadra, managing principal, EY San Jose

Kailesh Karavadra didn’t always want to be an accountant. In school he studied electronic engineering and later decided he wanted to try his hand at accounting. He fell in love with the profession and first joined EY in the U.K.

A few years later, the $24 billion accounting firm asked Karavadra if he’d be interested in moving to Silicon Valley.

“With my background in engineering and computers and business background in accounting, it made a lot of sense with what the Valley was going through in the early ’90s,” says Karavadra, managing principal of EY’s San Jose office. “So I came here, and I loved it, and have been here ever since.”

Karavadra has been with EY for more than 20 years, but it was in early 2012 that he was named managing principal for the 750-employee San Jose office, an announcement that coincided with the firm’s 50th anniversary of its presence in Silicon Valley.

“When we wake up every day and we put on our EY uniform and we come to work, our heart and soul is in building a better working world,” Karavadra says. “Over the past year I’ve had the chance to talk to almost every one of our employees, from our partners to our staff, and connect with them and listen to what’s on their minds and understand some of the complexities and challenges we work with.”

Karavadra has been focused on continuing to foster a strong culture at EY as well as continuing to recruit and retain top talent that will help the firm in its goal to build a better working world.

Here’s how Karavadra is making sure EY San Jose is prepared for the future.

Start with culture

Karavadra has been with EY for 23 years. He’s been with the firm for so long that when he speaks with young professionals today they’ll say, ‘Twenty-three years! Aren’t you bored?’

“I laugh because I have never had a single boring day,” Karavadra says. “The one differentiator is our culture and our people value that a lot.”

EY has been named to Fortune’s best companies to work for list for 15 consecutive years.

“That comes from our inclusiveness and flexibility and that we really empower our people,” he says. “For our employees, every day they show up for work it’s about choices. What we try to do is cultivate a culture that empowers them to make the right decisions, leverage the information that’s available in our culture and have diverse thinking to do the right things when serving our clients and our firm.”

Karavadra and the San Jose office encourage and empower employees to drive their own bus. “There are so many opportunities within our firm to drive their careers, to learn so many things, to be able to experience many things, and that’s the culture we want them to be able to feel,” he says. “Our employees are excited, they’re energized, they’re enthusiastic, and they’re passionate about what we do.”

One of the things that EY is very proud of is inclusiveness and that is something that Karavadra heard loud and clear from his people as something they value.

“This isn’t just about ethnicity and gender and those things that many organizations like ours do a great job around, but it’s the diversity of thought,” he says. “We encourage our people to bring that diversity of thought, to bring the different thinking and look at the problems we’re trying to solve for our clients and the value we’re trying to add to our clients in different ways.”

Developing a culture such as what Karavadra has in San Jose and what EY has bred around the globe hasn’t happened overnight.

“There’s a great saying out there that I personally believe in, which is, ‘People don’t care what you know until they know you care,’” he says. “At the foundation of our culture is the caring. We treat ourselves as family.

“One way we foster that culture is through our alumni and our retired partners. We did several events last year where we bring our retired partners back, and it’s amazing to me the pride, passion and excitement they have for our firm. We have almost 1 million alumni that have gone through the EY culture. During these events we invite our alumni to reconnect with each other, as well as reconnect with current employees.”

Another way Karavadra helps foster EY’s culture and helps to build a better working world is through five things that he constantly talks about with his team.

“No. 1 is that we really do contribute to the success of the capital market,” he says. “No. 2 is that we truly help and improve as well as grow businesses. The third is we support entrepreneurs. Fourth is we are incubators for leaders. Fifth is giving back to the community.”

Find and retain top talent

Those five things are important aspects of the EY culture, but they also help drive why employees love to work for the firm and why potential employees are attracted to working there as well.

“There’s a saying by John F. Kennedy Jr., ‘Some people see the world the way it is and say why, others see it differently and say why not,’” Karavadra says. “When we go on campuses we see a lot of very young, talented people who want to make a difference, who want to contribute and have a sense of belonging.”

Karavadra makes sure to talk a lot about the firm’s family culture, team atmosphere and sense of empowerment.

“We also bring our current employees because we want them to be the voice and they will shoot from the hip and give an honest view and opinion of what it’s like working here,” he says.

Karavadra also goes on these campus visits to speak with potential hires. He wants to make sure he understands what those candidates are looking for in a company and in a job.

“What they tell me is they want to work in a dynamic environment,” he says. “They love the innovation, entrepreneurial spirit and the teaming aspect of an organization.”

Focusing on recruiting strong talent is important, but all that energy is wasted if you don’t also focus on retaining those great candidates once you have them.

“It’s not only important to hire good talent and keep them here, but for our clients in the markets at-large it means that when people have energy, enthusiasm and they believe that we’re doing the right thing, they’re going to provide exceptional client service,” Karavadra says.

“They’re going to be a part of the highest performing teams and when you add our global strength and structure to the local empowerment in our local offices, that’s a real strong recipe for people to have a successful career.”

Karavadra believes that above all else, trust is one of the biggest factors for retaining talent in an organization.

“I truly believe in my DNA, that trust is at the heart of it,” he says. “Young people these days are incredibly smart, incredibly connected and talented.

“But when we’re out there talking to people, the most important thing that I share, whether it’s for recruiting or with employees, there is nothing more important than making sure you hold the ethics, reputation and integrity of yourself and our firm at the highest level. Nothing should compromise that.”

Whether you’re on campus recruiting or trying to attract experienced hires, establishing trust is the most important thing.

“They need to feel that this is an organization with honesty, trust, integrity and teaming. Where employees feel there are common goals and we work together,” he says.

While trust is a big reason employees will remain with a company, a second big reason is training and the ability to develop new skill sets.

“We put in 2.7 million hours of training last year for our people,” Karavadra says. “We really want our people to be the very best they can be. It is important for us to make sure we provide all of the latest and relevant insights to them, whether it’s classroom training, industry training or leveraging our web-based technology tools. The San Jose office is the global technology center, so we have a lot of our thought leadership around the world that we develop right here for our technology clients.”

Training at EY is not the only formal training team members get, they also get to take advantage of the firm’s apprenticeship model.

“What I learned when I started as a staff member 23 years ago is that I looked at people around me and there were mentors and coaches who took an interest in me and cared about me,” he says. “They would take me aside and say, ‘You just did this inventory account, this cash reconciliation, and looked at this tax document. Here’s why it’s important for us, why it’s valuable to the client and the impact it could have.’

“Right away from the first day, the training climatizes you to understanding the importance and the accountability that we have on the work that we do. It’s not just showing up every day to put in your number of hours and then we clock out. There’s a real importance to that training.”

How to reach: EY San Jose, (408) 947-5500 or www.ey.com

 

Takeaways

Work on establishing a culture that is attractive to employees.

Devote time to recruiting the best talent for your organization.

Provide training resources to help retain your best talent.

 

The Karavadra File

Kailesh Karavadra

Managing principal

EY San Jose

Born: Kampala, Uganda

Education: He studied electronic engineering and received a master’s degree in engineering from University College of North Wales in Bangor.

What was the first job you had and what did you learn from it?

I delivered newspapers. I used to get up at 5:30 a.m. before school and do it again after school. So it was twice a day, six days a week. I was always inspired by working hard and taking my responsibilities seriously, because you’re accountable for the things you are doing. Hard work will always get you a reward.

Who do you look up to?

I have five mentors that I am in constant connection with who are across five different continents. That has happened because of the years of experience here and the networking. I can call them anytime and pick their brains and they try and make sure they support what I am doing.

If you could speak with anyone from the past or present, with whom would you want to speak with?

The one person who has shaped me more than others is Mahatma Gandhi. I have always been incredibly inspired by the willpower he had. He was someone who realized that something needed to change and he was willing to take the first step.

Michael Catanzarite combines competitiveness and a family atmosphere to keep Darice atop the craft industry

Michael Catanzarite, CEO, Darice Inc.

Michael Catanzarite, CEO, Darice Inc.

“A Pat Catan’s Company” reads the sign in the lobby of Darice Inc. where Michael Catanzarite greets his guests. Catanzarite, or Catan for short, is the son of Pat Catan and is CEO of Darice Inc., a premier wholesale distributor in the craft industry.

That lobby sign is a symbol of the company Catanzarite’s father started in 1954 with $200, basically creating the craft industry.

“It’s a unique story because how the hell would you get into the craft business?” Catanzarite says.

Pat Catan was a pilot instructor during World War II. When he returned from service the only place to get a job in Cleveland was at NASA. As a new guy living in Cleveland walking around, he saw a need for supplying decorations for decorators of store window displays.

“Back then, department stores’ biggest form of advertising was the window decoration itself,” Catanzarite says. “He started supplying products for that. It evolved into material for making your own flowers for displays and floral arrangements for your house and grew from that point.”

In 1954 Pat Catan’s was just one single store. By the mid-’70s, the company had six or seven stores.

“He was a pioneer in the industry, because there really was no craft industry,” Catanzarite says. “In the early’70s, we came up with the name Darice. Darice is our wholesale name and that’s the majority of our business. If you go into any big box store like Wal-Mart, Target or Michael’s, you would see the Darice brand in there.”

The wholesale division started in the 1970s. Catanzarite entered the family business following his graduation from high school in 1976.

Catanzarite knows the ins and outs of Darice. He knows the names of virtually every employee and can quote his father’s sayings and other inspiring messages that line the walls of the Darice office.

But what else would you expect from a man who has worked at the company for his entire life?

“My dad was my idol, my hero,” Catanzarite says. “I enjoyed being with him and I enjoyed working with him. Why did I come into the family business? I hated school.”

Catanzarite has been CEO for nearly 20 years, but he isn’t the only family member working at Darice. In fact, there are 22 family members who work full time in the business. His office contains nearly 100 photos of family and items like his dad’s old briefcase and jacket, which help motivate him and serve as a symbol of who started the business.

From 1954 to today there have been a lot of changes within Darice and the craft industry itself.

“The difference between today and yesterday is the speed to market and the speed of business,” Catanzarite says. “You better be at the wheel every day and have your foot on the gas 100 percent or you’re going to be left behind.

“Today, we are fortunate because of our employees and their hard work, we’re the largest in the industry at what we do. Being the largest has its challenges in that you’re always a target for competition.”

Here’s how Catanzarite keeps a family feel at Darice while also pushing the company to remain an industry leader.

Fight the competitive forces

Darice Inc. today has 1,800 employees and is one of the top privately held companies in Ohio. The company supplies craft product lines such as craft basics, jewelry making, paper crafting, bridal, floral design, fine art supplies, kid’s crafts and licensed products to retailers such as Wal-Mart, Target and Michaels.

“We’ve made it a priority in our company that we are going to be product-first people and product-innovation focused,” Catanzarite says. “That’s our business: creativity and products. When we do that, everybody in this building understands that our goal is to find the next best product to make sure we’re to market quick and can respond to a call from Target or customer X to have a presentation done in a week.”

Anything that Catanzarite does to be successful is a result of the company’s mission statement and that his employees work on it every day. It requires the right kind of people to live the company’s mission.

“Do we have the right people and the free thinkers for that?” Catanzarite says. “That’s how we take something from concept to reality. In any company, if you just talk about stuff and you don’t make it a priority with the facility and the people, you’re not going to get anywhere.

“If you say you’re going to do something, but all you have is an idea on a piece of paper, well, what the hell good is that? You’ve got to give it substance.”

Catanzarite spends a lot of his day motivating and counseling employees and trying to figure out what areas Darice needs to improve.

“You’re constantly changing and trying to upgrade, but not because the people are bad, successful companies merge new ideas in with the old ideas,” he says. “We never really focus on the competition. We just try to be as good as we can be.”

Part of making the company better is continuing to get products to market quicker than anyone else.

“Here, we do things quickly,” Catanzarite says. “We get stuff to market in half the time of our competition. We react to our customer faster than anybody. That’s the only way you’re going to beat the competition because everything is so fast and everybody is trying to increase their margin to go around you.

“Today, you better be the best at everything or you’re going to get run over. We’re focusing on how we do that.”

A big reason for Darice’s success is due to its employees and the culture Catanzarite has helped foster over the years.

“The people part of the business, which a lot of people shy away from, is really the most important part of the business,” he says. “It’s what’s driving the company. You have to motivate them to do what’s next.”

Catanzarite fosters this kind of culture through commitment, consistency, being honest with his organization and devoting the time to it.

“I always compare it to being a parent,” he says. “The biggest component to being a parent is that children need your time. There’s nothing, as you raise your children, that’s more important than time. Your employees are the same way.

“If your boss came in today, sat with you, had a cup of coffee, and was nice to you, that would make your day. But a lot of people are just so busy going to the next meeting that they don’t carve out that time.

“You’ve got to spend time on relationships. That’s how you get the trust. My goal is for people to do good because they want a paycheck, but also because they like me and they don’t want to fail me.”

Eliminate family politics

In a family business, it’s easy for family members to develop office politics and destructive habits that can destroy a company. Darice and the Catanzarite family follow a simple motto to squash any of those possibilities.

“Faith, family and friends is our motto,” Catanzarite says. “We live by it. There’s nothing more important than faith, which drives our family. Once you’re my friend, I’ll never get rid of you. We have 22 full-time family members that derive their full-time income from working at Darice. How do we deal with that? We try to eliminate politics.”

If a family member wants to come to work at Darice, the most important thing Catanzarite does is find the right job for that person.

“Are you going to make a guy who’s good with his hands and likes working on cars a salesman at Wal-Mart?” Catanzarite says. “You may, but his chance at failure is much greater.”

Catanzarite’s family members let him have the ability to place them where he thinks they’re best served within the company.

“So far everybody still comes over on Christmas,” he says. “But with 22 family members, if somebody gets mad, they go home and tell their spouse and they tell her mom who might be my sister, so you have to have the openness and honesty.”

Not every family member works full time inside the company. There are others who play outside roles.

“Even if you’re not internally in the building, most everybody else is in the business,” Catanzarite says. “The guys that are outside play such an integral part that if I lost them, it would be like I’m losing somebody internally. It’s good the way we mesh that.”

To keep the family atmosphere in a company that has gone from three employees to 50, 50 to 100 and 100 to 1,800, it takes openness and transparency. Most importantly, someone needs to take charge.

“There are a lot of families that have trouble even sitting in the same room to meet,” he says. “As a company you need a plan and unfortunately there could be five to 20 relatives in there, so you need a boss.

“There has to be a single leader in the family and the family has to be committed to supporting that, otherwise you’re going to fail,” he says.

Darice is currently undergoing a succession planning process so that it is prepared for the future. The company has also brought in people from outside the family for integral leadership roles.

“A lot of family businesses struggle to bring in professionals in executive positions,” Catanzarite says. “We were the opposite. Our president is a non-family member. Our CFO is a non-family member. Our IT director is a non-family member. Our head of marketing is a non-family member.

“Long term, one of our decisions will be that we always want an outside president and CFO. In family businesses, it’s tough for people to do that sometimes. They say, ‘I’ve been doing this forever; I know everything.’ I may know more about crafts than anybody, but I don’t know more about selling to Wal-Mart and Amazon. I’m not an expert in distribution.

“Bring those people in and allow them that ability. Having those outside positions in a family business helps the rest of your employees too, because they see that it’s not just Catanzarite’s running the company.”

Every decision Catanzarite makes about the future of Darice is done so with his family and employees in mind and how that decision is going to make everybody feel.

“My focus is on continuing to grow this business to be a premier company in what we do and taking it to the next level and seeing the employees flourish,” Catanzarite says. “I’m driven by the goal that my dad wanted a great company for his family, and if I don’t finish that, I failed. I’m not going to fail. You’ve never met a guy so driven to make something successful for the benefit of his family.”

How to reach: Darice Inc., (440) 238-9150 or www.darice.com

Donna Rae Smith: Five proven habits to take control of stress

Donna Rae Smith, Founder and CEO, Bright Side Inc.

Donna Rae Smith, Founder and CEO, Bright Side Inc.

“The greatest weapon against stress is our ability to choose one thought over another.” — William James, American philosopher and psychologist

In an increasingly stressful world, William James’ remarks are just as accurate and relevant today as they were when he said them more than a century ago. We face countless stressful forces, most of them beyond our control — changing market conditions, economic uncertainty, new laws and regulations, and competition, to name just a few.

Confronted with circumstances and situations that we can’t change, our only hope is to affect what we can — our own thoughts and actions. Only by managing ourselves can we exert some control over our physical and mental health.

The first step is to change the way we think about stress. Rather than trying to take control by accomplishing more, we need a different tack — getting back to basics, with time-proven strategies like slowing down, truly connecting and living in the moment.

Why do these work? Because they tap into our fundamental need for purpose and meaning and help us remember what really matters. They allow us to put stress into perspective and truly gain control — not of what’s happening around us, but of ourselves.

Stay connected.

For most of us, staying connected means having around-the-clock access to our phones and email. However, nothing replaces face-to-face conversation, where you’re intently focusing on the person next to you and they’re doing the same. That kind of connectedness is a need we all share and it can’t be replaced with a screen or monitor.

Rather than constantly emailing the colleague next door, think about having more in-person, direct communication. Likewise, make a personal commitment to carve out meaningful time for the important people in your life.

Slow down.

The last thing you want to do when you’re stressed out is to slow down. But the reality is that even a short break for quiet and relaxation will reap you benefits tenfold.

Even 20 minutes to go for a walk on a tree-lined street or to sit on a park bench makes a difference.

Whatever you choose, making time to slow down won’t set you back — it will actually refresh you and give you more energy.

Have faith.

Having faith means different things for different people. If you have faith in a higher being, then you know it’s a source of strength.

Making time to read short meditations or prayers can center and rejuvenate you. Others find faith in themselves or in modern philosophers.

In either case, it’s important to find a source that fuels you when the going gets tough.

Find your fire.

A sure-fire way to relieve stress is to focus on something you truly love and feel passionate about. When you’re engaged in an activity you deeply enjoy, everything else recedes into the background.

Make time for activities you love and recapture that childhood enthusiasm.

Laugh it off. 

Research suggests that laughing has healthful effects. But we don’t need scientists to verify that laughing feels good. Let your guard down and laugh when the situation calls for it.

If you can’t laugh at your natural surroundings, then create a laugh break by watching or reading something you find funny. Or do an activity that’s sure to make you laugh — like miniature golf, bowling, an amusement park or karaoke. However you do it, make laughter and humor a routine part of your life, not a special occasion.

 

Donna Rae Smith is a guest blogger and columnist for Smart Business. She is the founder and CEO of Bright Side Inc.®, a transformational change catalyst company that has partnered with more than 250 of the world’s most influential companies. For more information, visit www.bright-side.com or contact Donna Rae Smith at [email protected]

Rodger Roeser: Get out of my social media sandbox

It’s a new marketing communications argument — which “discipline” should manage the new medium of social media? Should Twitter, Facebook and LinkedIn be handled by PR, advertising, HR or something else?

Agencies are springing up that specialize in social media management and any manner of blogging, tweeting, Facebooking and the like. It’s become a verb. We need more friends, more likes, more this and more that.

“Who” is managing your social media is far less important than “what” is being managed. You are trying to engage, to enlighten, to share. You are not trying to sell, although long term and softly that will be the ultimate reward. Social media, by its very definition, is controlled by those who are engaged and those who are sharing their thoughts and their views on any manner of issues or challenges we face as consumers or as businesses. So why the fight as to who “controls” it? Money and power.

The debate brews

Certainly, advertising agencies believe they should manage the discipline because it must be creative and part of your overall marketing mix of clever hooks and fresh ideas. However, your PR agency believes it should manage this as it is the master of sharing a story and providing clarity to your consumers in the written word. Both will invoice you fairly for their time, effort and strategy, and will provide good ideas and fresh thinking to drive traffic.

What you truly need is insight, and the confidence and ability to trust in yourself or that so-called “expert.” Who really “controls” social media? If you’re smart — it’s the 3Cs — clients, customers and constituents. You control your social media, whether you’re hiring a firm or you attempt to manage it in-house.

A good agency, regardless of being PR or advertising, will advise you to craft a solid brand and brand communications strategy, then utilize the virtually unlimited universe of social media and its many outlets to share that brand and tell your story. From there you engage your publics to some desired form of action or activity.

Manage the infinite?

Managing social media is, by my definition, attempting to manage the infinite. Rather, you must discuss what your end goal is and how that particular social media tactic will fit into, support and drive content from your overall marketing communications objective. It is not the answer; it is an option.

Should your business, regardless of what that business is, “do” social media? Of course! The question and the strategy is why are we doing social media and what exactly are we trying to achieve. How does it support our branding initiatives? How does it help our sales team? How does it make our candidate or our issue more accessible?

Social media allows you to fulfill the most basic and sacred tenant of public relations — the ability to have open, ongoing and one-to-one communications directly with your publics in an attempt to foster a shared conversation and engagement.

You want to hear from an unhappy customer so you can fix it, not spin it. You want to offer ideas and specials and promotions to those that value it most. You want your business to be the best it can be so you value the ideas, conversations and suggestions of your target publics and foster that.

Stop worrying about who manages your social media. Most likely it’s you. It is your choice to do or not do, to engage or let others talk about your business without your response. Social media happens regardless of whether you want it to or not. If you lack a social media strategy, it’s time to get a social media plan of action.

 

Rodger Roeser is owner, president and CEO of The Eisen Agency. He is also the national chairman of The Public Relations Agency Owner’s Association and works with other PR firms across the country to assist in their operations and profitability. He can be reached at [email protected]