Recovering from a flood or fire is hard for a business. But dealing with problems caused by a lack of business continuity plans or inadequate insurance can make it worse.
“The better you can plan for how to deal with an incident, the better off you’ll be,” says Lawrence J. Newell, CISA, CBRM, QSA, CBRM, manager of Risk Advisory Services at Brown Smith Wallace. “I say ‘incident’ because it could be something not always thought about in typical disaster terms, such as a breach of credit card information.”
Smart Business spoke with Newell and William M. Goddard, CPCU, a principal in the firm’s Insurance Advisory Services, about developing business recovery plans and the insurance options available to reduce risk.
What goes into a business continuity/recovery plan?
One component is a business impact analysis, placing a value on what the business needs to operate. Layered underneath are the business processes, which include the business continuity plan and its identifying process flows. For example, length of shutdown is part of the business continuity plan, which contains timelines.
Then there is the disaster recovery plan, which covers anything the business depends on that is IT related. Information has more value than just the data because of the intelligence built around it. So you need to identify where that data is processed, stored or transmitted.
There is also a communication plan, making sure an incident is communicated upward, downward and outward — upward to the executive management team, downward to the enterprise and outward to customers and business affiliates. Part of the communication plan is identifying the impact, whether it’s a simple outage or a more widespread incident such as a tornado, flood or hurricane.
What options are available to manage risk?
In the example of a credit card breach, there are risk reduction processes such as applying security standards developed by the credit card industry. There’s also cyber risk insurance, which insures costs to locate the problem, including hiring experts to do that, notification of cardholders, and business interruption loss.
What do businesses need to know about disaster coverage in insurance policies?
Generally, what we think of as disasters — earthquakes, hurricanes — are covered under property insurance. But business insurance policies also contain sublimits. For instance, you can have $100 million insurance coverage, but the sublimit might be $25 million for a flood. Policies carry different sublimits, and a company planning to use insurance to cover these disasters needs to be aware of them.
What is co-insurance, and how does that impact claim payments?
After a loss, the insurance company will judge the value of a building, say it’s $1 million. A co-insurance clause is typically 90 percent, meaning that the building should be insured to 90 percent of its value — so you’ve bought $900,000 insurance coverage on a $1 million building. If it burned to the ground, you would be paid $900,000. But if you only bought $800,000 insurance coverage and were supposed to buy $900,000, all recovery is based on having 88.8 percent of the coverage you should have. If a small warehouse fire causes $100,000 in damages, you wouldn’t be paid $100,000, but $88,800. This concept of co-insurance is frequently in policies and can be punitive for loss recovery.
How can insurance costs be reduced?
Insurance companies will inspect your property and following their recommendations can make you a better risk, reducing premiums. It’s also important to figure out exactly what coverage you need — it’s best to get an independent adviser. There have been many court cases involving inadequate insurance; they’re expensive to bring and hard to win. It’s better to get it right when you buy the policy, so you should have someone other than the person who’s selling you the insurance answer your questions and conduct an analysis of your needs.
William M. Goddard, CPCU, is a principal, Insurance Advisory Services, at Brown Smith Wallace. Reach him at (314) 983-1253 or email@example.com.
Lawrence J. Newell, CISA, CISM, QSA, CBRM, manager, Risk Advisory Services, at Brown Smith Wallace. Reach him at (314) 983-1218 or firstname.lastname@example.org.
Insights Accounting is brought to you by Brown Smith Wallace
The historical benefits of self-funded health insurance — lower costs, more flexibility and control — are even more appealing when added to the ability to avoid many Patient Protection and Affordable Care Act (PPACA) rules and expected premium increases.
As a result, there’s growing interest in self-funding. A March study by Munich Health North America of 326 executives from health plans, HMOs and insurance brokerages, found 82 percent of respondents saw more interest in self-funding, with nearly one-third seeing significant interest. The survey also found nearly 70 percent of insurance organizations plan to increase self-funding offerings during the next year.
“The PPACA has shed a light on self-funding because it created several new reasons why self-funding or partial self-funding is attractive,” says Mark Haegele, director, sales and account management, at HealthLink.
Smart Business spoke with Haegele about the reasons why self-funded health insurance is getting so much employer interest.
What historical self-funding benefits remain relevant today?
Historically, self-funded employers avoid the risk charge — typically 2 to 4 percent of the total premium — that all insurers build into premiums. Self-funded plans also avoid costs from insurer profit; premium taxes, usually 1 to 3 percent, depending on the state; and the insurance company’s fixed operating costs. A fully insured plan can include fixed operating costs that are 40 to 50 percent higher than a partially self-funded plan with a third party administrator.
Plan flexibility and control is the other overarching benefit of self-funding or partially self-funding. You don’t need to follow state coverage mandates for areas like autism, bariatric surgery and infertility treatments. Employers can customize plans based on member population needs.
Smaller, self-funded employers also receive detailed member data, resulting in the ability to make informed decisions. With the help of consultants and brokers, they can manage their population as much or as little as they want.
Why is health data more critical now?
The health care system is moving from a fee-for-service to a performance-based model, so transparency and information are more critical. If you expect members to make good purchasing choices, then employers and their members must know what services cost. This transparency is one of the staples of a self-funded plan. Employers know what services members partake in, the plan risk factors, what care those with chronic illnesses receive, etc.
What is drawing employers to self-funding because of the PPACA?
A number of pieces from the PPACA aren’t required under self-funding, including the:
• $8 billion insurer tax, currently calculated to be passed onto employers as a 4- to 6-percentage point increase in premiums.
• Medical loss ratio requirements, which force profitable insurance companies to reduce administrative expenses and ultimately lower service levels.
• Community rating rules that group small employers by geography, age, family composition and tobacco use. Thus, healthy, younger insurance groups will pay more — estimated to be 60 to 140 percent — while older, less healthy member groups pay less.
• Minimum essential benefits, where insurance companies are required to limit annual deductibles.
How are PPACA-driven premium increases already factoring in?
Although the PPACA’s community rating rules, insurance tax and minimum essential benefits don’t begin until Jan. 1, 2014, the repercussions have started. Some carriers are including extra 2013 premium increases. For example, rather than a 4 percent premium increase now, insurers might try to get employers to accept a 20 percent increase this year. In addition, despite state pushback, many insurance companies are considering offering an early renewal — changing the plan effective date from Jan. 1, 2014 to Dec. 1, 2013, for instance — to let employers temporarily avoid increases. However, those with a self-funded plan never have to worry about these costs.
Mark Haegele is director of sales and account management at HealthLink. Reach him at (314) 753-2100 or email@example.com.
Video: Watch our videos, “Saving Money Through Self-Funding Parts 1 & 2.”
Insights Health Care is brought to you by HealthLink
When you go to the dictionary to look for the definition of focus, you will see such lofty things as:
“the point where the geometrical lines or their prolongations conforming to the rays diverging from or converging toward another point intersect and give rise to an image after reflection by a mirror or refraction by a lens or optical system.”
“a point at which rays (as of light, heat, or sound) converge or from which they diverge or appear to diverge.”
Luckily, for those of us that are not physicists, I did find one definition that makes sense when trying to understand the meaning of focus:
“a point of concentration or directed attention.”
What do you concentrate on the most with your business? Where do you direct your attention? These are the questions of focus. Over the years in my coaching and speaking, I have found them to be of utmost importance to the success of those in the workplace.
Let's look at 5 tips for improving your focus as a busy professional.
1. Stop doing what you are doing.
If you struggle with focus on a daily basis and you continue to think and act in the same manner – you need to stop and stop right now.
The quote that is often attributed to Albert Einstein speaks to us here: “Insanity is doing the same thing over and over again and expecting different results.”
Stop. Breathe. Assess. Evaluate.
This leads us to our second tip.
2. Determine what needs your concentration and attention.
In the workplace, too many people “fly by the seat of their pants” when it comes to what needs to get done. In most instances, it is pure laziness that sustains this way of doing things. It takes work to stay focused and be successful.
As I said above, you will need to assess and evaluate in order to determine what needs your directed attention. Hopefully you have goals in place for yourself and your team. Let those goals be the defining line for your focus.
This leads us to our third tip for improving your focus as a busy professional.
3. Clear all unnecessary distractions.
Once you have determined the areas and actions that need your concentration, it is time to laser target your focus. In order to do this, you must clear away anything that would disrupt, distract or lessen your laser focus.
- Cell phones
- Social Media
- Instant Messaging
- Tasks that could be delegated
Make a list of all the things that you must stop doing in order to stay focused. This is the opposite of the normal to-do list. It will make clear what needs to be cut out from your daily routine.
Some distractions are going to be hard to give up because they have imbedded themselves as habits – and habits take time to change. Development of laser-targeted focus does not happen overnight, but it must be practiced daily in order to achieve its mastery.
4. Work in 60- to 90-minute blocks of time and provide yourself a reward.
Do not expect too much from your focus. Saying that you are going “to work until it's done” is an overload for most of us. It is also too vague and not goal-oriented.
Set aside a specific amount of time for a designated task. Studies have shown that we do well when we block off 60- or 90- minute time frames. This allows you to see the light at the end of the tunnel and know that a break is coming.
As we work, our alertness drops off, increasing the lure of distractions. Set a timer and take a break at the end of each cycle.
How about a reward? We all like rewards in one form or another – even if we are the one giving the reward. Say to yourself, “After this 90 minute session of work I am going to take a 10 minute break and walk around the building.”
Other possible rewards are:
- A snack (be careful not to overindulge and get sleepy)
- Text messaging
- Fresh air
5. Learn to say no.
I mentioned delegated tasks earlier. Many busy professionals struggle with delegation. We tend to hold the old attitude of“if you want something done right, do it yourself.”This might be true in the here and now, but in the long run it will lead to lack of focus and, ultimately, exhaustion.
Learning to delegate is a form of learning to say no. “No, not me, not now.” When we learn to say no, we are truly saying yes to our focus.
There are many other tips that one can use to stay focused. These are the five that I have found to be the most useful. Take the time today to try one, two or all of them. Your goals deserve your focus. Your team deserves your focus. You deserve it as well.
DeLores Pressley, motivational speaker and personal power expert, is one of the most respected and sought-after experts on success, motivation, confidence and personal power. She is an international keynote speaker, author, life coach and the founder of the Born Successful Institute and DeLores Pressley Worldwide. She is the author of “Oh Yes You Can,” “Clean Out the Closet of Your Life” and “Believe in the Power of You.” Contact her via email at firstname.lastname@example.org or visit her website at www.delorespressley.com.
The ultimate endgame in any marketing strategy is conversion.
While conversion means different things to different industry sectors, the actions of reaching conversion are universal. In retail, for example, it means searching for and buying a specific product online or in a store. In business-to-business, conversion could be when a prospective client reaches out with their contact information or and requests more information to engage with your services.
Conversion is a multitiered journey that consists of navigating through three steps — awareness, interest and engagement.
Awareness, essentially developing a brand message that resonates across all channels (such as Web, offline, print, mobile and video) is relatively straightforward if you have the proper brand strategy. You must define two things: who you are and what it is you’re trying to say.
However, converting awareness into interest, and eventually engagement, is where organizations most often lose their way.
I personally see this problem regularly manifest itself during a review of an organization’s website. Often, there are too many words and screens of text to sift through, and those words are either clichés or don’t really mean anything to the organization’s prospective — or current — clients.
The bottom line: The organization gained my awareness but lost my interest. Conversion is less likely a potential outcome.
This, however, is easily solvable.
One way to turn awareness into interest is by creating more consumable content, which is defined as providing, in a simple and nonoverwhelming way, the key points that will grab someone’s attention to learn more about what you do and what you offer.
Think of it this way: Develop clean, concise copy that clearly defines what you do and why you’re different from the competition and that articulates your value proposition, without being wordy. You should not have to scroll down more than one time on a Web page to accomplish this goal.
When you look at traditional advertising, the same problem exists. Review your current ads and ask yourself these questions: Are you running an ad that truly reflects your brand? Does it articulate your intended message and your brand through a series of a few choice words? And is there a defined call to action?
Now consider how you’re messaging to your prospects live, such as through your organization’s presence at trade shows.
At your booth, are you presenting a video reel that drones on for five or 10 minutes and includes every aspect of your company? Why waste a lot of money producing a corporate video that is too long, boring and that no one will watch? You will never see an ROI for your efforts.
Instead, determine whether you can develop a short experience at your booth that captures your desired audience’s attention. For example, combine a simple one-page handout with a brief video — no more than a minute long — that uses powerful imagery, focused messaging on your differentiators and a series of client icons that demonstrate who you work with.
You can always expand upon that brief overview video through a series of short complementary videos that are focused and highlight different segments of what your organization does and how it does it.
Let your prospect choose which area of your business he or she is interested in and wants to learn more about — whether it’s through your website, in print or in person. When someone chooses to learn more, it’s a safe bet that he or she is engaged.
The initial goal of all of this should be to generate interest rather than make a sale. The time for conversion is later, but you’ll never get there if you don’t generate interest and engagement first.
Dave Fazekas is vice president of digital marketing for Smart Business Network. Reach him at email@example.com or (440) 250-7056.
What if the leaders at IBM had stuck to making punch card equipment? What if after making the transition to the personal computer market, they had stayed entrenched there?
Punch card equipment is long gone, and with recent PC sales numbers significantly in decline, the leaders of IBM have stayed ahead of monumental changes in the market and kept the company moving forward for decades.
An open mind.
Too often, CEOs place self-imposed limitations on themselves, both in business and personally. The status quo becomes acceptable and new ideas become verboten. When this happens, growth is stifled — a dangerous situation. Many business gurus will tell you that you are either growing or dying. A stagnant company sees itself as not losing ground, but as its competitors move forward, its relative position in the market fades, even though it views itself as standing firm.
The only way to avoid this is to keep an open mind. CEOs need to constantly grow and learn from a personal perspective — so they constantly improve their leadership and people skills — and also from a business perspective — so new ideas are allowed to push the organization forward.
While there are many approaches to keeping an open mind, here are three ways to get started.
- Embrace trial-and-error. Finding success might require experiencing a dozen failures. Whether it’s a new way of running a meeting or trying to find the next innovative product, accept the fact that success has a cost. Don’t eliminate an idea because it goes against what the company has always done.
- Seek knowledge. As a professional, a CEO should never stop learning. There should always be a curiosity about your industry that drives you to seek an understanding of the latest trends and strategies, but you should be constantly looking at other industries as well. Often, best practices in one industry can be applied to another. If you are the first to make the move, it will give you an advantage over the competition.
- Find a mentor. The right mentor can make you aware of your blind spots. Without someone to offer a different perspective, it is easy to fall into familiar ways of thinking, thus stifling the chance of new ideas taking root.
The longer a CEO runs a business, the easier it is to fall into the trap of doing what worked yesterday or last week. When this goes on long enough, the business ends up with an overall strategy that is several years old.
You would never say, “Let’s use the same strategy we developed five years ago,” but because of a closed mind, that’s what ends up happening by default.
Be vigilant about your search for knowledge. In the end, it will make you a better leader and improve your company’s chances for success.
Fred Koury is president and CEO of Smart Business Network Inc. Reach him with your comments at (800) 988-4726 or firstname.lastname@example.org.
When you flip a light switch, turn on the water or start your car, you expect reliability every time. For employees, it’s just as mandatory that they be reliable, by showing up on time, completing the tasks at hand and basically doing their jobs time and time again.
By the same token, your employees expect you, as their leader, to be reliable. This means when you say you’ll do something, you do it, when they need direction, you provide it, and when the chips are down, you’ll be there for them.
Being reliable is good, but being too predictable — not always. In fact, being too conventional can make your company a “me, too” organization that only reacts to what the competition does, rather than taking the lead. It can be a bit more daring to set the trend, but if managed and controlled correctly, the rewards dramatically outweigh the risks.
Warning signs that your leadership has become too predictable occur when your subordinates begin finishing your sentences and know what you will think and say before you utter that first word on just about every topic. Compounding the problem is when your employees begin to perpetuate the negative effect of you being so darn predicable by believing it themselves and telling others, “Don’t even think about that; there’s no point bringing up your idea about X, Y or Z because the boss will shoot you down before you take your next breath.” This bridles creativity and stifles people’s thinking and stretching for new ideas.
It’s human nature for subordinates to want to please the chief. Under the right circumstances, that can be good, particularly if you are the chief. But it can be a very bad thing if you are looking for fresh concepts that have never before been run up the flagpole.
Uniqueness is the foundation of innovation and the catalyst for breaking new ground. George Bernard Shaw, the noted Irish playwright and co-founder of the London School of Economics, characterized innovation best when he wrote: “Some look at things that are and ask why. I dream of things that never were and ask why not?”
The “why not” portion of this quote is the lifeblood of every organization. A status quo attitude can ultimately do a company in, as it will just be a matter of time until somebody finds a better way.
As a leader, the first step in motivating people to reach higher is to dispel the image that you’re exclusively a predictable, same-old, same-old type of executive who wants things a certain way every time. There are dozens of signals that a boss can give to alter a long-standing image and dispel entrenched mindsets. You can always have a midlife crisis and show up at work in a Porsche or Ferrari instead of your unremarkable Buick. This flash of flamboyance will certainly get people questioning what they thought was sacrosanct about you. The cool car might also be a lot of fun; however, the theatrics might be a bit over the top for some, not to mention a costly stage prop just to send a message.
A better solution is to begin modifying how you interface with your team, how you answer inquiries from them and, most importantly, how to ask open-ended questions that are not your typical, “How do we do this or that?”
Another technique is when somebody begins to answer your question, before you’ve finished asking, particularly in a meeting, abruptly interrupt the person. Next, throw him off guard by stating, “don’t tell us what we already know.” Instead, assert that you’re looking for ideas about how to reinvent whatever it is you want reinvented or improved in giant steps as opposed to evolutionary baby steps. If you’re feeling particularly bold, for emphasis, try abruptly just getting up and walking out of the meeting. In short order, your associates will start thinking differently. They’ll cease providing you with the answers they think you want. Some players will hate the new you, but the good ones will rise to the occasion and sharpen their games.
If you want reliability, flip the light switch. To jump-start innovation, you could begin driving that head-turning sports car. Better yet, get your team thinking by how you ask and answer questions and by not always being 100 percent predictable but always reliable.
Michael Feuer co-founded OfficeMax in 1988, starting with one store and $20,000 of his own money. During a 16-year span, Feuer, as CEO, grew the company to almost 1,000 stores worldwide with annual sales of approximately $5 billion before selling this retail giant for almost $1.5 billion in December 2003. In 2010, Feuer launched another retail concept, Max-Wellness, a first of its kind chain featuring more than 7,000 products for head-to-toe care. Feuer serves on a number of corporate and philanthropic boards and is a frequent speaker on business, marketing and building entrepreneurial enterprises. Reach him with comments at email@example.com.
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There are a number of people who would argue that St. Louis’ slogan “Gateway to the West” could be updated to “Gateway to the World” — and Elizabeth Stroble, Ph.D., the newest president of Webster University, believes it more than most.
During the expansion of America, St. Louis was indeed a “Gateway to the West.”
“[Today,] I would say the slogan could be reversed as well; the world needs to see St. Louis as a gateway,” Stroble says.
As president, Stroble has been finding ways to continue to expand the institution’s presence globally in an effort to provide students with a more diverse curriculum that not only benefits them, but the businesses and communities that those students then work and live in.
Webster University is based in St. Louis, and has campuses in Geneva, Vienna, The Netherlands, London, China and Thailand. The college employs some 1,200 full-time faculty and staff members and has 21,000 students — 8,000 of them in St. Louis.
Stroble came to Webster in 2009, and with the university turning 100 in 2015, she has been evaluating where the college can grow and improve itself for the sake of its students, communities and business partners.
“What I learned since I arrived here was that Webster University has a tremendous history of being globally excellent with room to grow the global excellence,” Stroble says. “It’s highly innovative and entrepreneurial and its mission, going back to its founding, was to meet an unmet need.”
During the last four years, she has been assessing the university’s strengths and opportunities.
“The strengths and opportunities at Webster are to continue to connect the pieces and parts of that global network so that strength builds upon strength and that we stay connected, not only locally but globally,” Stroble says.
Here’s how Stroble is advancing the university’s strengths and opportunities.
Do a thorough assessment
Before coming to Webster University, Stroble was provost, senior vice president and COO at the University of Akron in Ohio. Wanting to find a presidency position, she came to Webster.
“The move to Webster University was about the presidency of an institution that’s local here in St. Louis but has a global reach and impact, and that was what was most interesting to me about it,” Stroble says.
With the school’s international footprint a big drawing factor, Stroble began to assess the university’s strengths and opportunities in that area and how Webster could benefit students, businesses and communities.
“I spent a great deal of time in the St. Louis community not only interacting with faculty, staff and students here but with local business and community leaders who have a global footprint in their own organizations and want to increase the global interaction in St. Louis, because that makes it a thriving community and a globally competitive community,” she says.
Stroble also began visiting every international location and many domestic locations of Webster University.
“Part of what fascinates me and continues to about Webster University is the diversity that comes from being located in different places,” she says. “While the location is different and the diversity of the students is different, the academic programs reflect local market needs.”
Taking that tour of various Webster campuses helped Stroble assess where the university could improve.
“You have to take plenty of time listening and asking for other people’s advice and counsel,” Stroble says. “One of my fundamental questions was, ‘What do you most hope that your new president will preserve about Webster University, and what do you most hope the new president will seek to change?’
“My sense in every organization is that there are these sacred traditions, values, habits and processes that people hope will continue. It’s always an assessment of whether you, as president or the new leader, will agree with those, but it’s important to know them.”
Stroble’s assessment left her with a sense that Webster University, like most organizations, had some ambition and pent-up hope and demand for change.
“If you don’t know what that is, you can’t help to fulfill the hopes and dreams that caused you to be the president who was selected,” she says. “That is an important learning opportunity, and you need to seize it to its fullest advantage, because when you’re new, it’s the greatest warning opportunity.
“Over time, it’s harder to see things with fresh eyes and … it’s hard to disabuse yourself of the notion that there might be better ways to do things.”
As an incoming leader of an organization, you have to take advantage of not knowing very much about the operation because you can ask the naive question and gain a lot of insight.
“Over the course of my presidency, it’s my role to listen to what’s going on in the external environment,” Stroble says.
For Webster University, that’s an external global environment and what’s happening in the world of higher education but also in the world of culture, diversity, politics, economics and the larger environment that we all live in and hope to shape.
“How do I learn about that and help to communicate that effectively to the university community so that we can truly not only be responsive but lead the change that the external environment wants?” she says.
“In turn, how do I learn well enough what the strengths are of Webster University so I communicate those well to an external environment to continue to attract students, high-quality employees, donors, external support, and local and global support partnerships?”
To help aid in that responsibility, Stroble has been investing in developing Webster’s talent around global diversity and knowledge and is focused on improving curriculum.
“We revised our general education curriculum to focus on global citizenship, and we have been building many more partnerships with international universities, especially in parts of the world where we are not,” she says. “That’s why it’s important for us to expand the campus footprint beyond Europe and Asia.”
Webster University wants to open global opportunities for its students and St. Louis businesses at the same time to bring an infusion of global talent to St. Louis and across the world.
“This focus on people, partnerships, curriculum and programs that help support student travel, more scholarship prospects for international students and raising our profile in terms of how well we communicate about the opportunities we can create at Webster University for businesses and other higher education institutions has been the work I have been doing,” Stroble says.
Develop global talent
True to Webster’s mission to fulfill a need, one of the institution’s goals is to build capacity in potential new geographies. These new international locations need to have a stable political environment, a stable and growing economy, and a need in that local community for American-style education taught in English in the degree programs Webster offers.
Globalization at Webster University is much more comprehensive than most other universities. Some even say that globalization is baked into the university’s DNA.
“It’s my job to help deepen this, broaden it, strengthen it, further it, but it certainly dates back to before I arrived,” Stroble says. “It was such a part of Webster University from its inception that we were ahead of the curve. Again, we’re an institution that prides itself on meeting a need and being entrepreneurial and naturally saw opportunities to do that outside of St. Louis well before it became cool to be global.”
Webster’s effort globally is much more about creating synergies and mutual benefit than it is about carrying the American message abroad.
“We’re much more about being truly global and figuring out how to live that through preparation of students, who we hire and how we think about the geography than we are about how we export an American education that might seek it,” she says.
While constantly looking at new international locations for the college, Stroble is also extremely focused on how that global diversity can benefit the local community in St. Louis.
“We have purposefully built a program with the state of Missouri called the Global Internship Experience that provides interns from international locations for companies here in St. Louis and sends Missouri students to international locations to do internships there,” she says. “We’ve been doing that for 25 to 30 years and it continues to expand.”
Another effort to broaden education and benefit businesses is the creation of a Confucius Institute.
“The point of a Confucius Institute is that you provide an arm for increasing knowledge of Chinese language and culture in your local community,” Stroble says. “Ours was founded in 2008, and it was the first in the state of Missouri. Our Confucius Institute provides resources to local businesses who seek to learn more about how to do business with the Chinese.”
This institute is a direct connection of Webster’s expertise and relationship with the Chinese Ministry of Education that opens up doors and opportunities for young people and businesses.
“It would be hard to know the world without knowing China,” she says.
All of these advancements to the global education of Webster’s students provide a platform for lifelong learning.
“It’s not only about the important topic of being a citizen of the world and seeing things in a large perspective or relating to people who have had experiences different from ours; it’s about creating an open point of view about learning, changing and responding to an environment that will continue to change,” Stroble says.
“If you learn how to navigate a different country, different language, a different culture, different politics, a different lifestyle, that positions you to learn about new technologies, new field development, new environmental challenges across your lifetime. You open up your world in more ways than globally.” ?
How to reach: Webster University, (800) 981-9801 or www.webster.edu
Listen and ask questions about the organization as a new leader.
Evaluate the organization’s strengths and opportunities.
Develop a presence to benefit stakeholders locally and globally.
The Stroble File
Elizabeth Stroble, Ph. D.
Born: New Castle, Wyo.
Education: She earned a degree in history and English from Augustana College in Rock Island, Ill. She has two masters of arts degrees, one in history and one in American and English literature, both from Southern Illinois University-Edwardsville. She received her doctorate in curriculum studies from the University of Virginia-Charlottesville.
Background: She spent time at Northern Arizona University-Flagstaff and University of Louisville-Kentucky. At University of Akron she was the dean of the College of Education and was promoted to provost, senior vice president and COO. She then sought a presidency and came to Webster University.
What was your first job and what did you learn from that experience?
I was a waitress. I worked my way through college waitressing. Serving the hungry public teaches a lot about communication skills and being attentive to detail and being pleasant to interact with. I learned a lot about customer service.
What got you into education?
During my next-to-last term at Augustana, I was in the student teaching program. I had this spectacular student teaching assignment and after about the second or third day I decided this was my life.
Who is someone you’ve admired in the education world?
I worked for the chairman of the history department at Augustana, J. Iverne Dowie, and I looked up to him greatly because he had been blind since he was three years old. My job was to read books and papers out loud to him, and he and I would discuss what I had read. I admired his intellect and how gentle he was as an individual and how accomplished he was to be the department chair. A lot of what I learned about teaching and university work was from his direct example.
What are you looking forward to at Webster University?
I’m excited about this institution continuing to live that mission of setting a distinct standard for global education and preparing our students to be individually excellent and citizens of the globe.
Accounting systems capture information that can lead to more profit. Ted Flom and Tony Caleca from Brown Smith Wallace LLC discuss some issues about how your accountant can help your company’s bottom line.
Q. What accounting missteps might lead to decreased profitability? A. The biggest mistakes are made when organizations don’t embrace the importance of timely and meaningful reporting to make informed decisions. Maintain accounting information in a way that gives management a clear picture of how different aspects of the company are doing.
Q. What accounting tools could prove most valuable to business owners? A. The key is having an accounting system that adequately supports the critical areas of your company. Capture information at a level of detail that supports management decision-making. Define what five key metrics are critical to your success and track them daily.
Q. How can accounting help identify growth areas? A. Accounting information can show trends that provide insight into efforts the company should focus on or de-emphasize, particularly if systems are aligned with your strategy or key growth areas. Today, companies are more focused on information that helps them better predict the future rather than understand the past, as has traditionally been the case.
Q. How does risk affect company value? A. Entities failing to recognize the risks they face from external or internal sources and not managing them effectively can destroy value for shareholders and stakeholders. Enterprise risk management (ERM) supports value creation by enabling management to deal effectively with potential events that create uncertainty. You can use ERM to respond to those risks in a way that reduces the likelihood of downside outcomes and increases the upside.
Q. What do businesses commonly overlook that can pose problems? A. Businesses go through the exercise of keeping accounting information, but they don’t give it sufficient review. It’s always healthy to ask, ‘Where did this number come from?’
Ted Flom, CPA, CISA, CIA, is a member in charge of Risk Advisory Services for Brown Smith Wallace LLC. Reach him at (314) 983-1294 or firstname.lastname@example.org.
Tony Caleca, CPA, is a member in charge of Audit Services. Reach him at (314) 983-1267 or email@example.com.
As leaders, we understand that our actions, whether good, bad, positive or negative, are being continually examined. Our job as leaders is to create a vision, develop and execute strategic plans, define goals, and set objectives aimed at creating excellence through products and services that address the needs of the customers and markets we serve.
Accomplishing these tasks cannot be done in a vacuum; a team of highly skilled and dedicated leaders is needed to accomplish these goals. CEOs and business owners are constantly challenged to seek out the talent needed to build an effective leadership team. Though difficult, it is paramount to find talent that has a keen understanding of your organization’s market, vision, mission and objectives.
Building a team of talented leaders that share similar capabilities, traits, ambitions, and that are qualified to lead an organization is one thing, but getting this group to function together to lead a business effectively and efficiently requires special attention.
It is vital to have a leadership team that consists not only of highly skilled, functional leaders but also those who possess the ability to understand the broader picture. Members of this team must be willing to contribute, provide productive opinions and work as a team to reach consensus, and then collectively execute these decisions throughout the organization.
Leading strong leaders requires managing egos, resolving conflicts, balancing power and integrating opinions in a way that ultimately fosters a team that is aligned with your organization’s vision, goals and objectives.
Reflect for a minute on the qualities that have brought you to your leadership position. You are a visionary and you’re high on confidence. You likely have charisma and years of experience. You have a wealth of important contacts and you are a person that most would consider to be “plugged in.”
Now assume that those in your organization, technically your subordinates, share many of those same qualities that you possess. The possibility and likelihood of friction in these relationships is high if you don’t manage these relationships carefully.
Below are some action steps to take to enhance your leadership within your organization.
1. Set the expectation that leaders actually lead, be accountable, take risks and don’t wait for direction. If those around you are not willing to do the same, then maybe it’s time to make a change.
2. Spend quality time with leaders individually to understand their views on their role and their vision of how their functional area contributes to the mission of the organization. Are they thinking big, stretching their direct reports and delivering the results you expect?
3. Challenge the team and individuals to stretch their thinking and share their “big ideas.” Be clear and concise. Put things into context so they understand the meaning and possible outcomes of decisions.
4. Set clear expectations of leaders and the leadership team. Expect individuals to know the overall business and be able to separate themselves from their functional role and contribute to the enterprise by tackling complex issues.
5. Mandate open and frank dialogue between leaders while reiterating that these discussions remain confidential.
6. Expand their role by asking them to contribute by taking lead roles on enterprisewide matters.
7. Allow leaders to lead so they own their actions and decisions. It is your responsibility to identify and select high-quality talent with the knowledge and experience needed in order to contribute to the organization.
These steps are the beginning to a harmonious relationship with your top team members. Remember, the goal is the respect that you earn along the journey, not friendships or three people to round out a great foursome on the links. Your energy, vision, determination and drive are the active ingredients in leading by example. ?
Tony Arnold is founder and principal of Upfront Management, a St. Louis-based management and executive consulting firm. He can be reached at (314) 825-9525 or firstname.lastname@example.org.
Data breaches are becoming more commonplace, causing millions of dollars in damages for companies that have personally identifiable information (PII) hacked by cybercriminals.
“Think about all of the losses you can incur. Not only do you have to hire a security expert to find what happened, you may be assessed fines or penalties by the merchant’s acquiring bank or payment card brand. In addition, you could be responsible for credit card charges made by the criminals and lose business because no one trusts you anymore,” says William M. Goddard, CPCU, principal, Insurance Advisory Services at Brown Smith Wallace.
Smart Business spoke with Goddard and Lawrence J. Newell, CISA, CISM, QSA, CBRM, security and privacy manager, about protecting companies from cybercrime.
How do cybercriminals access networks?
One typical method is spear phishing. Unlike traditional phishing attempts, which are fraudulent emails sent at random claiming to be from a reputable organization like a bank or eBay, spear phishing emails are sent to targeted employees or customers of a company.
The email appears to be coming from the company and requests that the recipient click on a link, which then goes to a fraudulent website. They may ask for personal information or they may launch a virus they’ll use to get into your network.
If you click on the link, it launches a program in the background that goes onto your workstation and canvasses the network for other vulnerabilities. The program collects data, whether that’s credit card information or other PII, and uploads it to the cybercriminal.
How can you reduce cyberattack risk?
The first thing to do is develop an information security policy, document it and disseminate it throughout the organization.
Other protective measures are:
- Conduct an inventory of authorized devices on your network. Guests can come into your place of business with a laptop and leave a device on your network that goes undetected. That device could have Trojan horses or viruses that, when executed, plant a program on your network.
- List an inventory of software allowed to run on workstations or servers. That helps when looking for rogue programs or software installations.
- Install an anti-virus program to detect malware. Anti-virus protection also needs to be maintained and updated for the latest definitions.
- Run vulnerability and penetration tests on servers and networking equipment to make sure you don’t have unnecessary services running that could lead to a vulnerability and potential unauthorized access.
- Prevent data loss by running programs to detect outbound calls or connectivity to remote sites that are not authorized to receive data output.
- Create security awareness within your company to ensure that people who have access to information are not sharing anything that is confidential or private.
- Develop an incident response plan to react to a breach and quarantine activity before it spreads throughout the network.
Companies think they’re protected because they are compliant with some standard such as PCI, but that’s no guarantee their systems will not be compromised. Your security program needs to go beyond PCI and focus on more than credit card information. Cybercriminals go after the easiest target along with whatever PII is available that has value. For instance, not-for-profit organizations may have names, addresses and checks with banking information; all of that information is valuable to somebody. For similar reasons, credit cards are often targeted because they’re so widespread and it’s the easiest information to sell.
What can companies do to protect against losses if they are hacked?
A variety of insurance policies cover things like the cost of fines, notification that PII has been compromised, liability and business interruption. All cyber policies are slightly different, and you have to be careful to buy the right coverage.
Businesses are smart enough to buy fire insurance in case a building burns down. Cyberattacks can be just as damaging, depending upon what happens and what information has been compromised.
William M. Goddard, CPCU, is principal, Insurance Advisory Services, at Brown Smith Wallace. Reach him at (314) 983-1253 or email@example.com.
Lawrence J. Newell, CISA, CISM, QSA, CBRM, is manager, Risk Advisory Services, at Brown Smith Wallace. Reach him at (314) 983-1218 or firstname.lastname@example.org.
Brown Smith Wallace can help you with cybersecurity. Visit them here to learn more.
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