Stephan Liozu: Value and your Business

Stephan Liozu, President and CEO, ARDEX Americas

“Nowadays people know the price of everything and the value of nothing.”

— Oscar Wilde, “The Picture of Dorian Gray” (1891)

Value is probably one of the most frequently used words in business. Yet it is extremely difficult to define, to measure its drivers and fully capture it with customers. Given that most companies create their own social construction of value, we propose to explore what it might mean and introduce some practical steps to increase your understanding of it.

We focus on the definition of value proposed in 1998 by James Anderson and James Narus. Value is the “monetary terms of the technical, economic, service, and social benefits a customer firm receives in exchange for the price it pays for a market offering, taking into consideration competing suppliers’ offering and prices.”

Why is it that few suppliers in business markets are able to define and measure value?

In a 2008 survey of business executives, 79 percent attributed this difficulty to a lack of capabilities and skills needed to assess value, apply the appropriate methods, and extract the exact value differential between two products.

Second to the value-assessment issue, communicating value to the market was associated by 65 percent of the executives with difficulty in elevating the value message above the advertising noise in the market.

Bottom line: there is a need for more research related not only to theory on value but also to marketing tools for understanding, measuring and delivering value in business markets.

Scholars agree that there are six characteristics of business value that make value difficult to measure: value is 1) a subjective concept, 2) a trade-off between benefits and sacrifices, 3) multidimensional, 4) defined relative to competitors, 5) segment-specific, and 6) future-oriented.

At Ardex America, we have embraced the difficulty and complexity of measuring value and have put long-lasting value at the center of everything we do. We adopted Andreas Hinterhuber’s approach that value in business markets is composed of six tangible and intangible benefit categories: product quality, delivery capabilities, services, ease of doing business, vendor characteristics, and self-enhancement (social status, prestige, aspirational benefits).

Our mission is to be able to measure the level of value we provide customers in each of these categories. To quantify economic value correctly, we have implemented a six-step approach called Economic Value Analysis:

Identify the cost of the competitive product and the process that customers view as the best alternative. Understand who you’re competing against for your customer’s share of wallet and who might be able to substitute for your products or services in your customer’s mind.

Segment the market: Understand why customers buy from you and what needs you satisfy; identify the true nature of these needs and the level of differentiation you enjoy in each segment.

Identify all factors that differentiate the product from the competitive product and process. Identify value drivers or unique selling propositions that really differentiate you. The rule of thumb is that you cannot have more than half a dozen. These product or service drivers are your real USPs.

Determine the value to the customer of these differentiating factors: Quantify value drivers using assessment techniques such as engineering assessment, value-in-use analysis or focus groups.

This is where it gets complex! We have done well for product-related drivers and are now moving to less-tangible elements of our value proposition. Determining the value of services remains a challenge, however, and it is ongoing work.

Add the reference value and the differential economic value to determine total economic value: Define a price point by adding the reference value (price of next-best alternative) to the differential economic value you generated for your customers. At this stage you might decide to share some of the value surplus with customers to entice them to keep doing business with you while paying a premium.

Use the value pool to estimate future sales at specific price points. Assess price elasticity by market segment based on various price points and relevant volume levels. For each segment you can then establish your value positioning and your pricing strategy.

The process is not easy. It requires skills, capabilities and sweat equity. But you deserve to capture some or most of the value you create for your customers. Before you can capture it, however, you must understand it and measure it well.

Join us for more discussions on value and pricing management during a regional pricing workshop on Oct. 11, 2012 in downtown Pittsburgh.

Stephan Liozu is president and CEO of Ardex America Inc. (www.ardex.com), an innovative and high-performance building-materials company located in Pittsburgh. He is also a Ph.D. candidate in management at Case Western Reserve University and can be reached at [email protected] or www.stephanliozu.com.

Craig Clark delivers great customer and employee experiences at The Rivers Casino

Craig Clark, General Manager, The Rivers Casino

Craig Clark is one of several general managers who have held the position at The Rivers Casino within its first three years of operation. But that inconsistency at the leadership role has made it hard to create programs that benefit the casino’s customers as well as its employees.

The Rivers Casino, which opened in 2009, has more than 1,800 employees and saw 2011 revenue of $434 million. Clark, who became GM in June 2011, has been focused on enhancing both the customer and employee experience to make the casino a better business overall.

“The key is really consistency of leadership so you can put together programs with the community and programs within the facility to allow team members to grow and advance,” Clark says. “I think that’s the key to my leadership. In the gaming industry some people move around, but for myself I like to be located at one facility for quite a period of time.”

Before coming to Rivers, Clark spent nearly 15 years at Turning Stone in upstate New York where he was able to develop the facility.

“That’s where I spent most of my career, and we had a complex there that we kept adding to for years and years,” Clark says. “(In Pittsburgh) we have a great complete facility that we keep creating different entertainment experiences within and reasons for our customers to come and visit.”

Currently, Rivers Casino has 80 table games, 30 poker table games and 2,970 slot machines. It also includes five different food and beverage outlets, a banquet space and three bar locations on the casino floor. All combined, there is plenty of opportunity to impress guests with customer service and create programs that motivate the employees.

Here is how Clark is driving customer- and employee-related initiatives.

Develop key programs

In an industry where excellent customer service and employee training are staples of operating a business, it isn’t enough to simply talk about having good service. To ensure customers are treated well and employees get opportunities to advance, you have to implement programs that keep service and training as a top priority.

“We have a variety of different programs here at the property,” Clark says. “We’ve introduced a 12-Star program, which is a program for our young business leaders to learn more about all operations of the facility.

“We have leadership training components within that training program. We have accounting practices. We have how to do a review and give good feedback to team members when you give them their annual review. It’s a 12 different part program.”

While one program may be aimed at learning all aspects of the casino business, other programs offer employees a chance to learn what it takes to perform specific jobs.

“We have a dealer school here where people from outside can interview and be trained as dealers and team members who are currently dealers can learn other games that they might not have perfected to date,” he says.

The casino also has programs aimed at recognizing employees who are going above and beyond the expectations of their jobs.

“We’ve put in a program for team member of the month and we have team member of the year, where both an hourly and a salaried team member are recognized for their great contributions to the facility,” he says.

“We are also putting together right now a supervisory leadership training program focusing on how to ensure our supervisors are consistent and thorough in their coaching and their mentoring of team members so we get the right consistency throughout the organization.”

While setting up a program is one thing, continuing to improve it and make necessary changes is another. The key is to view it as an on-going process.

“It doesn’t start one day and end another day,” Clark says. “It’s actually a process that you have to live and breathe and it has to be part of your business soul. You need to focus on it each day because as a leader, the team members are looking at you as the example.”

When you can listen to employees and listen to their ideas and make a positive change, that’s how these programs are developed. You have to ensure your team continues to focus on service levels because it’s not lost on clients, customers or guests.

“Our guests have such a high expectation of coming here and they all want to be treated as if they’re that special person; our goal each and every day is to ensure that we do that and they walk away with a memory and an experience of coming here to the Rivers,” Clark says.

Be well-rounded

One of the biggest reasons Rivers Casino has the amount of opportunities available to its employees is to offer them a chance to grow and learn about the whole business. This creates employees who thoroughly enjoy what they do and strive to be well-rounded.

“Sometimes people are narrowly focused and I think the more that you can explain to them or educate them on more parts of the business, the more valuable they become to your organization,” Clark says. “If a dealer understands how the marketing promotions are being created and what our goals are with those programs, they’re our salespeople that are out there each and every day and it just makes them more informed and better team members and better guest service professionals.”

To help encourage employees to become well-rounded, it is crucial that you provide outlets for them to be recognized.

“Those types of programs start from one-on-one contact with team members and ensuring that you recognize them as you walk around the facility and thank them for their hard work,” he says. “That’s something that business leaders need to continue to focus on because that pat on the back is one of the best rewards that a person can have each and every day if somebody can have that personalized recognition.”

Another way to develop your employees is to establish expected criteria and highlight the individuals who provide strong examples of the attitude, behavior and work ethic you expect.

“When you look at human resource programs, we try to create the criteria that establish what the right business behavior for a team member or team leader is,” Clark says. “We want to take those people who are examples of that behavior every day and put them on a pedestal so people look at them and say, ‘Matt is a great guest service deliverer every day. He walks the walk and coaches team members.’

“He is an example that they can look at for that consistency. Consistency is the hard part in the hospitality business because things happen in your personal life and when you come to work you have to shed anything that’s not positive and ensure you put that smile on your face and be positive and proactive in what you do at the workplace.”

Strong employee development ultimately comes down to how much employees want to help themselves become better. If you can get your employees to want to achieve greater things and you allow them outlets to suggest improvements, you create a culture that fosters continuous improvement.

“Quite often some of the best ideas come from listening to your team members,” Clark says. “Keep an open mind. I’ll walk the casino floor and some of the best ideas I get are from team members who come up to me with suggestions or ideas that were passed on from a customer. You have to take those ideas, and as a leader our job is to align the resources, when practical, to implement those great ideas.”

On a quarterly basis Clark does something he calls “communication corner” where he sets up a table in the team member cafeteria for all three shifts to get their input.

“I ask them for their ideas, suggestions and concerns because a third of the ideas come from the leadership team and their experience, a third comes from our team members who are in the workplace each day and a third comes from customers,” he says. “So I can get two-thirds of the knowledge I need by just listening to our team members.”

An outlet such as Clark’s communication corner is a great way to gain access to employee’s ideas. However, the key to continuing that practice is to show them you are acting on those ideas.

“A lot of it is listening to those ideas and then having the team members see the change,” he says. “That openness to listening as well as showing action, positive actions reinforce that behavior. It’s like anything else in life, if you’re an athlete or if you’re a business leader, you have to exercise those behaviors. As business leaders we have to exercise the behavior of listening and we have to exercise the behavior of implementing the things that are practical to our businesses and cost-effective.”

Drive customer service

The concept of customer service seems simple on the surface, but to achieve it and be a leader at it your company takes the right employees first.

“One of the keys is starting with the selection process of the team member,” Clark says. “The next most important thing is we have a two-day orientation here at the property. Part of it is going through policies and part of it is really talking about hospitality and talking about our guests and the expectations of our guests.

“Also, it’s how we ensure that we are focused on those good behaviors to make it a great experience for the guests when they come here and how all the systems work.”

An orientation program is a key way to set the tone for someone arriving in the company. It gives employees a good overview of the type of businesses that they’re entering in to and ensuring they’re the right person. The casino doesn’t stop there.

“From that, we have a 90-day checklist program which really follows the job description and what their core functions are as a team member,” Clark says. “We make sure we go through that checklist to ensure that we have good training programs set up to ensure that they focus on the job function, the quality and the service.

“Those types of things tend to work out well where team members really understand the expectation and deliver the best results.”

To measure whether employees understand their job and are delivering desired results, it is important to have some form of review in place.

“We do a 90-day review of a person who joins the organization and then an annual review,” he says. “An annual review should never really be a surprise. It should be a summary of the year’s performance of the team member. The key is to have ongoing communication and ongoing coaching and praise.

“When you have a balanced program and all those cogs of the wheel are working together, that’s where you have the best result. If there is something team members need to advance their skill on, the key is helping them out with that as soon as it’s identified. If they’re doing great things it’s recognizing them immediately because that’s where you’re going to create the best team loyalty and the best team culture.”

To keep customer service levels at their peak it is important that you use what resources you have available to you. Rivers recently implemented a secret shopper program to help test customer service.

“We have an independent party that will evaluate service levels looking at it from a guest perspective,” Clark says. “A shopper service will come in and they’ll go through experiences as if they were a guest and then give us their feedback on individual team members and the property overall.”

There are a lot of great resources, some of them free and some of them you can acquire. “You have to stay current on different practices and different education processes,” he says. “The world is changing rapidly when it comes to online training. We’ve put several tutorial programs in place this year. The key is really seeing what the most effective way is to use this technology to train team members and ensure that they are current on all their practices.”

How to reach: The Rivers Casino, (412) 231-7777 or www.theriverscasino.com

Takeaways

–          Design programs around initiatives.

–          Provide opportunity and outlets for employees.

–          Enhance the customer experience.

The Clark File

Craig Clark

General manager

Rivers Casino

Born: Endicott, NY

Education: Received an associate degree from Broome Community College in business administration. He also has a bachelor’s of science degree from SUNY Binghamton.

What was your first job, and what did you learn from that experience?

I worked with my father as a residential carpenter during high school up until I graduated with my bachelor’s degree. What I took away from that was hard work, an understanding of what you can create with your hands, and a strong work ethic.

What is some advice that has held true through your career?

One of the things I think is most important is education. Somebody should always focus on educating themselves and continue that education throughout their life.

Who is someone you look up to in the industry?

I spent most of my career at Turning Stone and I worked with Frank Riolo. He was somebody who always believed in me and continued to challenge me and give me opportunities to grow.

Do you ever gamble and what is your favorite game?

In the state of Pennsylvania, I rarely gamble. If I make a trip to Vegas, I gamble a little bit, but not very much. I like to play craps. I enjoy the entertainment experience.

What are you looking forward to at Rivers Casino?

I’m looking forward to the continued development of Rivers. I love to grow a business and I really believe in the business plan. That’s why I enjoy this job because I can see the growth of the team members and the growth of the property and the success that’s driven by both of those.

Andy Kanefield: Why you need to know how your company helps its customers

Andy Kanefield, founder, Dialect Inc.

Andy Kanefield, founder, Dialect Inc.

Does your company have alignment between its mission, its vision and its strategy? If you don’t, you may want to ask yourself if everyone on your team is on the same page as to what those terms mean to your business.

Maybe you’re like a former client of ours who knew that having a clearly stated and motivating mission was important, but wasn’t sure what a “mission” was or how to lead his team to either create one or uncover the one they were already living.

It may be that “mission” is not something that motivates you as a leader. It’s perfectly natural that some aspects of an organizational identity are not equally motivating to us as leaders.

At the same time, as leaders, we need to recognize that we work with and lead others who do find “mission” to be important. They will evaluate us as leaders and our organization based on whether or not we have a clear mission and whether or not we can deliver on that mission.

One of the most common definitions for mission is to answer the question, “Why do we exist?” For example, Nestlé Purina PetCare has a mission to “enrich the lives of pets and the people who love them.” Notice they didn’t declare a mission to sell the best (or most) pet food or pet care products. While we can safely assume that they want to do both, they’ve chosen to declare a reason for being that connects to those they serve: pets and consumers.

Answering the question of why you exist is helpful to many, but it can sometimes be too abstract for certain organizations and people who prefer the concrete. It can sound like you’re about to launch into a discussion of Socrates’ view of virtue rather than address concrete business issues. There are alternatives that get at the same concept in more concrete ways.

The first is to ask a broad cross section of employees the question, “What problems do we solve for our clients/customers?” Of course, one can also ask your clients/customers directly, “What problems do we solve for you?” This phrasing often helps employees and clients describe the value that you bring in a more concrete form. From that data, one can begin to see patterns that demonstrate the value that you bring to your external stakeholders.

You could also ask employees and customers, “How do we help you?” or “What difference do we make in your life/business?” Follow it up with, “Tell me about why that is important to you?” and you can get to answers that resonate more on an emotional level.

Imagine someone asking a consumer, Mrs. Johnson, who buys Nestlé Purina’s Dog Chow the following series of questions:

Interviewer: Tell me about why you buy Purina Dog Chow.

Mrs. Johnson: Our dog, Butch, likes it.

Interviewer: What other reasons are there?

Mrs. Johnson: He’s been very healthy eating Dog Chow, so that’s important to us.

Interviewer: So tell me why that is important to you and your family. The answer may seem obvious, but go ahead and tell me anyway.

Mrs. Johnson: Well, I know that when I buy Dog Chow, Butch is going to be happy, healthy and ready to play with our family. He has brought immense joy to our family, and we want that to last for as long as possible.

You have a choice when you describe your mission. You can make a laundry list of things you do, or you can describe the difference that you make in the lives of those we serve.

Andy Kanefield is the founder of Dialect, Inc. and co-author of “Uncommon Sense: One CEO’s Tale of Getting in Sync.” Dialect helps organizations improve alignment and translation of organizational identity. To explore how to better align your business to an inspiring mission, you may reach Kanefield at (314) 863-4400 or [email protected]

How Robin Raina readied Ebix for a crisis, then made the needed tweaks to get through

Robin Raina, Chairman, President and CEO, Ebix Inc.

Robin Raina acknowledges that the last four years provided a stern test to his prudent leadership throughout the last 13 years as he turned Ebix Inc. into a highly profitable, efficient company designed to weather tough times.

The recession hit the insurance industry hard, putting many insurers out of business and forcing many others to tighten their belts drastically. As a result, companies that supply goods and services to the insurance industry felt the pinch too.

The Atlanta-based supplier of software and e-commerce services to insurers, weathered the storm better than most. Ebix made it through — not unscathed but a stronger, wiser company whose leaders have grown and learned a lot in the process.

“The insurance industry wasn’t prepared for the economic downturn,” says Raina, chairman, president and CEO. “When people are not able to pay their mortgage, insurance becomes a luxury, so insurance companies were suddenly having a hard time. As a result, they tightened their purses and started spending less money on new projects, new initiatives, new distribution media.”

At the same time that the recession forced insurers to start curtailing their spending, a handful of other developments made life tougher still for Ebix. The health reform movement put even more downward pressure on the insurance industry. Some insurance companies declared bankruptcy. Many insurers started getting acquired by other companies, shrinking Ebix’s pool of potential customers even further.

“The health reform movement created a lot of inertia in the insurance industry,” Raina says. “Around the same time, a lot of acquisitions started happening. A lot companies in the financial world — the banks who were our clients, the insurance companies who were our clients — got acquired. And some of them went into bankruptcy mode. They had lots of difficulties.”

A large part of Ebix’s business comes from setting up exchanges to streamline insurance transactions. Thus, insurance transactions are the lifeblood of Ebix’s business.

“The more policies that get written, the more transactions we do and the more money we make,” Raina says. “It’s as simple as that. And when the insurance industry shrinks, less policies are written, less prospects are offered insurance, and Ebix’s exchanges are utilized less. So you have a direct impact — an inhibiting factor in terms of your revenue growth.

“That was the biggest challenge we faced. In spite of the state of the economy, and at a time when the insurance market was shrinking, we had to somehow keep the company growing and still report profitable results.”

Lay the groundwork

To a great extent, Raina had been preparing Ebix from the day he became CEO in 1999 for the economic storm that hit in 2008.

“We didn’t just sit down and create a plan on how to respond when this thing happened in ’08,” he says. “To me, that’s a mistake. Companies have to be ready. Companies that are designed to be run when the economy is strong are not good companies, in my view. You have to have systems in place and the fundamental strength to still do well if the economy goes south.

“For us, this journey of still being able to do well in spite of the economy didn’t happen because we put our heads together when the crisis hit and said, ‘Let’s figure this out.’ We were always prepared for it.”

How did Raina and his leadership team members build Ebix to weather the recession? The ways were many. They made prudent, careful investments. They avoided growth for growth’s sake. They went after new business when it made sense to do so, and had the restraint to pull back when it didn’t. They streamlined and centralized many of Ebix’s business processes. They converted the company to paperless operations, and taught its customers to do the same.

“It’s a series of things you have to be doing,” Raina says. “The fundamental strength of Ebix has always been that we created the systems so that our business scales up as our revenue scales up. And we run a very common-sense kind of business where anything we do has to come up with a particular model operating margin.”

Fiscal restraint, careful investing and caution in executing big transactions have been key elements in Ebix’s leaders’ ability to build resilience into the company’s design.

“Many people underestimate the value of financial discipline,” Raina says. “If you have a business model where you say you want 40 percent operating margins out of everything you do, and you run into a situation where you’re offered a big revenue deal but it will take your margin down quite a bit, then don’t do it.

“Focus on what you evolved as your business model. Have the courage and the financial discipline to be able to say no to such opportunities.”

In many ways, efficiency has been built into Ebix’s model for years. This played a big part in the company’s staying power when it ran into tough times.

“We had centralized and streamlined our business operations,” Raina says. “We had converted Ebix into a paperless company, where very little paper is transacted, and taught our customers to do the same. What did that all result in? It resulted in a highly efficient company.”

Make adjustments

That efficiency served Ebix well when the recession struck in 2008. Not that it made the ride entirely smooth, but it served as a base of strength, a stabilizer to enable Ebix to traverse the rough road without breaking down.

“We were well prepared, but that’s not to say it was easy,” Raina says. “We were able keep our head high and make it through, keep growing, stay profitable and maintain our operating margins.

“Obviously, the revenue growth becomes lesser when you go through times like these,” he says. “It might not have been as good as it would have been if the economy was in good shape, but we were still able to show revenue growth.”

As Ebix moved through the storm, its leaders had to make many modifications to keep the company on course. They had to make sure the company’s existing revenue sources were secure. As Ebix’s clients were being snapped up by acquirers, they had to convince the new owners of the value of the company’s products and services. Some of Ebix’s customers’ budgets were cut, so there were issues of price sensitivity that had to be dealt with sensitively.

“The last four years have been an issue of doing small adjustments here and there, and restructuring certain things,” Raina says. “You become more controlled than you ever were. You focus back on making sure you don’t lose a single client because you know in a time like this there’s a possibility that some clients might get price-sensitive, so you have to form a different plan.

“Overall, we didn’t run into a lot of price sensitivity, fortunately. Our bigger issues had to do with the extent of overall budgets, and whether the clients had budgets that were sanctioned or not. We had a few exceptional cases where we had to come up with a solution for them because they had a lesser budget, and we had to somehow help them through that. So we did.”

Ebix managed to find ways to retain most of its customers who were hurting financially by working within their smaller budgets for temporary periods.

“You have to look at the client, and you have a choice to make at that point,” he says. “One choice is you can basically say, ‘Well, I’m not going to change anything that I do.’ The second way to look at it is you look at the client and say, ‘Are they genuine? Do they genuinely have an issue?’

“You look at how long they’ve been your client, and if you think they’ve been a sincere client, you make a decision that this is a time for you to show that you’re a true partner. You tell them, ‘I’m going to work with your present budget, with a basic assurance that as you get into better times, you’re going to come back to the normal level.’

“If they’re willing to do that, you give them a break. That’s what we did with a few of our clients because they had shown that they were true partners to us by staying with us for many years.”

Diversify your business

Asked what advice he would give other CEOs facing a similar challenge, Raina says he believes it’s critical to keep your business diversified and maintain your customer concentration as low as possible.

“It’s important to understand that you can’t have a business that is too heavily focused in any one business area or with any one client,” Raina says. “This was a key learning point for us. If you step back a few years, Ebix had a fair amount of customer concentration. If you go back to 2003, 2004, we had a situation where one client accounted for 40 percent of our revenue. Today, our customer concentration is minimal. We deal with hundreds of thousands of users, and our largest client accounts for less than 2½ percent of our revenue.

“I see publicly traded companies today who are doing extremely well — at least in the stock market they’re doing very well — and they have customers accounting for 52 percent of their revenue. To me, that’s a bad business model. It’s too risky. If one customer moves out, their entire business could be at risk. You have to diversify your business.”

Raina recommends keeping your company’s structural elements simple — your vision, your business model, your financial model — especially when the going gets rough.

“That’s the biggest mistake I see companies make: They get carried away by their own vision,” Raina says. “It’s very important to have a simplified vision, a vision you can explain in a few words, in a few sentences. If it takes longer than that to explain your business model, it means it’s not a good business model. I’m a firm believer in that.”

It’s equally important to have a straightforward financial model, according to Raina.

“You’ve got to have a very simple financial vision and a simplified way of making money,” he says. “It really comes down to this: If you can figure out that your selling price has to be a lot higher than your cost price — if you can figure out that basic fact — then you’ve arrived, in my book. Many people laugh at that statement, but too many companies ignore this. You’ve got to get down to the basics of the business.”

Lastly, Raina says that being able to learn continually and to adapt to constant change are crucial survival strategies for CEOs faced with guiding their companies through harsh economic times.

“You must keep learning all through this process,” Raina says. “Lots of managers are very proud about saying, ‘I came up with a vision a decade back, and that vision has worked very well.’ And they stick to their vision too long sometimes.

“It’s a real-time world we live in, so you have to be dynamic,” he says. “You have to be ready and willing to learn, to change, to keep evolving: the way you sell, the way you deploy, the way you market, the way you host, the way you implement services.

“To me, the key issues are simplification of your vision, simplification of your business plan, being able to spell it out to your employees and your partners, and being ready to change all the time and learn from everything you do.”

HOW TO REACH: Ebix Inc., (678) 281-2020 or www.ebix.com

THE RAINA FILE

Robin Raina

Chairman, President and CEO

Ebix Inc.

Born: Kashmir, India

Education: Bachelor’s degree in industrial engineering, Thapar University, Punjab, India

What important business lesson did you learn during your time in school?

Engineering doesn’t necessarily teach you everything you’re going to need in terms of technical skills because times keep changing. But what engineering does teach you is an aptitude to learn. It gives you an aptitude of knowing that everything can be understood as long as you’re willing to apply yourself. You don’t get overawed by things because you learn how to analytically think everything through.

Do you have an overriding business philosophy that you use to guide you?

Be sincere, transparent and truthful to your customers. You have to be able to talk to your clients in a very open manner through thick and thin. If you’re running into a problem, you’ve got to be able to tell them what it is. Today, in the new world that we live in, all the companies are trying to create recurring sources of revenue. We’re trying to create annuity sources of revenue. What does that mean? That means you’ve got to have clients who really want to stay with you, because that’s the only way you will get recurring revenue.

What traits do you think are most important for a CEO to have in order to be a successful leader?

Conviction and the ability to listen. These are key, because we’re not perfect, we make mistakes every day, and people have to be able to relate to you, to talk to you, and you have to be able to listen to them. Ultimately, you make the final decisions, but you have to have the ability to listen and to digest in your mind, am I doing this wrong? Maybe they’re correcting me in the right fashion. So that becomes a key.

Michele Fabrizi keeps MARC USA client focused

Michele Fabrizi, President and CEO, MARC USA

Michele Fabrizi has always had a philosophical difference with the way most advertising firms approach business and client relationships. Having worked on both the client and business side of the industry, she has become tired of continually seeing firms focus strictly on creating a strong ad with no regard for what the customer really wants and ignoring ideas because they came from a non-senior person, male or a female.

Fabrizi, who is president and CEO of MARC USA, a 280-employee, $300 million full-service advertising firm, was attracted to Marketing Advertising Research Consultants because the company did business the way she thought all firms should operate — with the client at the center of the business model.

In her first two years at the helm of MARC she oversaw 200 percent growth, much of it the result of her ability to get the firm to focus on the client’s needs.

“I am very much about building a business model that is centered on the clients and getting results for our clients,” Fabrizi says. “That DNA and some of the other philosophies such as it doesn’t matter who has a big idea whether they’re junior or senior, male or female, that idea is wrapped up, and we work to get it up and going. Those were very different from the experiences I had at larger shops and on the client side.”

With this philosophy driving the business and Fabrizi reinforcing it, MARC USA has been able to break barriers and foster innovation within the company, creating growth and client relationships that help transform brands.

“It’s been really exciting to build a company that is based on what’s right for the clients,” Fabrizi says. “It’s about breaking things and being innovative. We can do so much more for our clients and be more innovative and invest in the business which you couldn’t do in a public company.”

Here’s how Fabrizi keeps MARC USA client-focused while building relationships that foster growth and innovation.

Build a client relationship

Good business runs on developing and cultivating strong relationships. Simply having a good product or service no long assures repeat business or a place at the top of your industry. Look to make a lasting impression by playing to client needs.

“It sounds simple, but first of all you have to really have to want to hear and listen and get to know people,” Fabrizi says. “If you ultimately think either that’s not important, you’re not interested and it’s a waste of time, or you know more, then you can’t do it. If you think you know more about their business and you want to spend all the time talking, you can’t do it. It’s really about truly wanting to get to know someone on all levels, business and personal.”

Part of developing a deeper relationship lies in how you conduct your meetings, getting off site, and not just across the conference room table.

“Through those kinds of conversations, you can really get more insight, not just into the person but what’s really critical in their business that they feel is important that might not come up in the conference room,” she says.

“There’s a whole basic relationship management that really is critical in your client’s business at all levels. It’s really doing a relationship plan at all levels for all the key people you have to come in contact with. Making sure everybody has their ownership and accountability on that is the only way you’re going to be able to get the information and insight beyond what you can garner on your own to figure out how to help the client be ready for this big idea or the challenge that they’re facing.”

The best relationship people are the ones who really are very thoughtful and plan and study the business. Particularly in this day and age, everything is so fast. Everything is so 24/7 that it becomes very important for the high-touch part.

“Frankly, in our business, that’s very important to touch the consumer across all channels, online, in-store, word-of-mouth,” she says. “Having that kind of ability is important to us in our business in order to be effective communicators and it has to be integrated.”

To integrate better communication and high-touch capability, MARC focused on a team environment and training.

“Team is about behavioral modification, trust, and how to get people to talk,” Fabrizi says. “As part of our culture and our people and talent, we continue with team dynamic high-performance training at all levels, with my senior leaders all the way down. There’s nobody in the company that doesn’t get that training.

“If you’re training people how to work effectively among themselves, that transfers to their clients and relationships.”

To aid the culture of teamwork and a client relationship focus, MARC decided to move to one P&L statement. Instead of having each client listed under separate P&L statements, they combined them to make the overall environment more collaborative and team- oriented. The company wanted the best solutions for its clients and didn’t want people fighting over P&L.

“With the one P&L what we did was created a mindset shift in our employees, because you just can’t say, ‘Work together,’” Fabrizi says. “It won’t work. With that being freed up and the other training and tools that we give them, literally an integrated team gets together and will talk about the issues of a client and come up with ideas. It’s about breaking convention and being innovative.”

Get results through innovation

MARC USA has a heritage of doing things differently and bringing innovation to the industry. The company even created an off-the-wall word to describe its unique capabilities.

“We’re using breakthrough research techniques and new technologies to drive innovation every day,” Fabrizi says. “That’s what I’m about, what’s next? At MARC we say what we do is a word we made up because there is no word for what we do. It’s called ‘wezog’ and it’s how we think. It’s what we expect from our people. It’s a critical component of our long-term client relationships. It means doing things the way they haven’t been done before — thinking outside the box.”

The firm builds successful brands and drives sales through its creativity, insights and technology and the results are changing the game for clients.

“It’s a key reason why we have such strong, long-lasting client relationships,” she says. “It’s really about not doing things the way they’ve been done before, being highly collaborative with clients and finding ideas to break assumptions and challenge conventions. This is the kind of thinking that really helps brands strive in good times and in bad times.”

There are three words that clients use to describe MARC: passion, vision and collaboration. If you’re going to deliver on those three, you have to have the people power that’s going to do that.

“That’s how I’ve taken the company into the future, and it’s such a right thing for the business now,” she says. “It’s not about what’s nice and what the competitors are doing. People come in with ideas that are not founded.

“We do a lot of innovative techniques and strategic alliances on deep-seated emotions. Good enough is not good enough, particularly when you look at the business challenges that everyone’s facing.”

These days, consumers are more in charge than ever. They have more choices, they have more information and they have more ways to shop. It is up to firms to deliver something that is not a one-size-fits-all solution for clients.

“Sometimes our ideas are rethinking how they do business,” Fabrizi says. “Our initial ideas may not even be advertising ideas, but ideas that would protect their ROI and more along the lines of business solutions, but eventually could become advertising and marketing solutions.

“We have a very deep practice in behavioral science and behavioral economics so that we can really understand at a very deep, deep level. What we do is almost like brand therapy where we get the consumer to qualitatively express their conscious and subconscious thoughts so that we can really empower them to explore their thinking beyond the literal.”

To get those results you need to evolve and create tools and systems that help to provide new ways to connect with the consumer. In order to do this, you have to be up close and personal in your clients’ business.

“In any business today, whoever your clients are, if you’re not intimately involved, I don’t know how you’re going to survive,” she says. “You have to have trust so they’ll share data and the pain points, or you just can’t get the kind of revolutionary ideas that are going to get the kind of sea change results that are needed.”

Look for opportunities

In a business that constantly strives for new and innovative ideas, you have to reinforce what it is you’re trying to do within your company — and it’s the CEOs job to lead the charge.

“The secret is you have to get the senior leaders to buy in to it to make radical change,” Fabrizi says. “If you can’t do that, you will not be successful. If you want that type of environment then you need to keep saying it in every which way and reinforcing it and so do the leaders or it won’t happen.

“To me this is about transformation and how do you adjust your company in this day and age when you’ve got so many pressures. It’s really looking at your business and saying, ‘Why are we doing it this way? How do we do it differently?’”

In the world of advertising it’s all about being unique and having the ability to take advantage of opportunities when they arise. You have to plan for this in order to bring opportunity to fruition.

“Again, it’s thinking out of the box,” she says. “It’s not doing things normally. It takes time to do that, and it’s not a quick fix. What are the fundamental core things about the business that if nullified or changed or innovated, within a period of a year or two, could dramatically catapult the company forward so it’s not just parity?

“That’s what you’re seeing out there is a lot of parity, and you see a lot of tactics. You see very little really strong core business strategies. It’s very tactical and that’s short-term, so that means you’ll always be running, running to catch up because those things are very easy for competitors to emulate.”

Those strategies and plans are the responsibilities of the senior leadership. Those tactics have to be driven forward as the day-to-day business continues to function.

“That falls squarely with the CEO and the senior leadership and even the management level,” she says. “If they don’t think it’s important, they’re not adding those insights, they’re not worried about it, they’re not planning it and they’re not getting together to collaborate on it, you’re going to lose your way.”

The other key part is collaboration among your leadership in these processes.

“You have to have people who can help you make that idea happen,” she says. “If somebody within the organization has an amazing idea and I get hold of it, it’s like, ‘Oh my gosh — we’ve got to do it.’ I don’t care where it comes from. In this day and age we all have egos, but at the top you have to have less ego and more ability to know when you have to follow and listen, as opposed to constantly being the brilliant, fearless leader.”

How to reach: MARC USA, (412) 562-2000 or www.marcusa.com  

Takeaways

– Get to know your clients on a business and personal level.

– Use client relationships to deliver results.

– Find opportunities to grow.

The Fabrizi File

Michele Fabrizi

President and CEO

MARC USA

Born: Pittsburgh, Pa.

Education:  Received a bachelor of arts degree from Carlow University

What was your very first job and what did you take away from that experience?

My first job was helping out in my father’s music store. I saw how he took the time to listen to people and treat each student or customer as an individual. It was a very powerful lesson in many ways — how to develop people, how to deliver excellence in service, and how much you can learn about a customer’s needs if you pay attention to what they say and also what’s not said. He understood that emotions drive choices long before neuroscientists proved this.

Who is someone you admire in business?

Tena Clark — writer, musician, entrepreneur and head of DMI Music. She was one of the first people to understand that brands have a sound DNA and built a very successful company to deliver this vision. We’re very like-minded and that’s why MARC USA partners with DMI to use music to help brands forge strong emotional connections with their customers.

What are you most excited about for the future of your industry? Why?

Developments in brain science and technology are taking us in amazing new directions. While some people claim technology separates people, we’re using it to make stronger connections than ever and to deliver highly customized, personalized one-to-one experiences with brands.

If you could have a conversation with any one person from the past or present, to whom would you speak with and why?

Leonardo DaVinci — truly a visionary who also got things done. He combined left-brain and right-brain thinking to envision and then create things not even imagined by anyone else around at his time or for many years after.

Michael Hilton is building on excellence at Nordson Corp.

When Michael Hilton looks at a soda bottle, he isn’t thinking about whether it tastes good or if it will quench his thirst. He is thinking about all the ways his company can incorporate better applications to make the bottle.

Historically, bottle labels were applied by rolling the bottle in a pot of glue, which would result in the adhesive dripping and covering areas of the bottle that didn’t need to be. The application Nordson Corp. developed was a pattern spray on the bottle. The leading edge of the label is placed on the bottle, it is wrapped around and receives a coating on the trailing edge, which saves 20 to 30 percent in adhesives.

“It’s a big seller for our customers,” Hilton says. “That’s one way to drive growth — create applications with technology.”

Driving growth is what his objective has been since being named president and CEO at the beginning of 2010. Nordson Corp., a more than 4,000-employee manufacturer of products and systems used for dispensing adhesives, coatings, sealants and biomaterials for several end markets, has been a strong company, even during the recession years. When Hilton arrived, he saw the company as an $800 million organization that could become a $2 billion or $3 billion business.

“If you step back, [Nordson] was surrounding the customer [with a] globally well-positioned [team], a talented team, and a team that executed,” he says. “That’s a very good foundation to build on.”

Globally, Nordson has a presence in more than 30 countries and has been well-established in locations such as China, India, Brazil, Europe and Japan for a long time.

“For a company our size, that’s a great global footprint to have to take advantage of opportunities for growth,” Hilton says.

To benefit from those opportunities he had to evaluate the business and understand the key areas that needed attention and resources.

Here is how Hilton is improving the operations and processes of a good company to make it a great one.

Cover all the bases

Coming into a company as its new president and CEO usually carries a lot of weight. Hilton didn’t want to just come in and make random changes. He had developed a relationship with his predecessor Ed Campbell, and he used that relationship to listen to any advice Campbell provided to understand the business.

“Initially, I spent the first couple of weeks largely with Ed getting a download on everything you would expect from the business to the customers to the investors to the organization, and he was pretty helpful in terms of his long history at Nordson,” Hilton says.

Hilton’s time with Campbell was short-lived, but impactful. The keys to the company soon belonged to Hilton and he had to now get out of the headquarters facility and visit the business around the world.

“As soon as I could I really looked to take the opportunity to travel and meet some customers, see our facilities globally and get a better handle on what we do day-to-day,” he says. “There is only so much research you can do from afar and only so many reports you can read, and until you have an opportunity to touch it and feel it, you don’t really have the same perspective.”

It was obvious to Hilton that Nordson was a very good company and performed very well in a difficult time. The company was fairly solid and there were strengths in its business model.

“If I step back and look at what were the key strengths that I found, one was how we surround and support the customer,” he says. “If you think about the underlying technology, the direct sales approach and really a service organization that is incredibly responsive to its customers, that’s as good as I have seen.”

Hilton has previously operated in a number of different businesses all with one major company, but six different business models.

“I think I have a pretty good operating field of different approaches in everything from commodity businesses to specialty businesses and high-performance businesses, and this is very high-performance, so it was a great foundation to inherit,” he says.

The biggest key for a new incoming CEO to understand what a business is about and how it operates is to listen.

“I didn’t rush to form any particular opinions,” Hilton says. “It’s a complicated business so you need some time to get to a level of understanding before you can sort through and think about what has to happen next and take the company forward.

“As somebody who’s been in the industry 30-plus years before I came here, you can have a tendency to feel like you know what needs to be done. You have to wait a little bit and make sure you have enough input. It’s a bit of drinking from the fire hose, but it does give you a good perspective of the day-to-day.”

While listening is crucial to a CEO’s understanding of the business, visiting different locations in person is also important.

“You have to get out to facilities so that you better understand what you do and how you win in the marketplace and there’s no substitute for that,” he says. “Also, you have to take time in the nonbusiness environment with folks, whether that’s on the weekends or at dinners just getting to know people in the organization.”

Those same things go for getting to know your leadership team. Demonstrating that you’re a regular guy is a crucial step to cementing relationships.

“It is really trying to put the leadership team at ease when you come in,” he says. “Particularly in the time when I was coming in we were just starting to come out of the recession and the best thing for the business was to figure out how we could win in the recovery phase and to win more than our fair share of the business.

“You need the team motivated to do that. I’m here to learn and I think I have some experience and value to offer, but I don’t want to come in with a preset agenda that said we have to do A, B and C, because I didn’t know enough.”

Take the next steps

Once Hilton had become comfortable and did his due diligence within the organization, it was time to take the things the company was good at and find ways to make them even better.

“If you look at what we’re really good at — the surround the customer piece, the global position and the execution — what else do we really need?” Hilton says. “I came down to focusing on three areas. No. 1 was, ‘What can we do from a strategic standpoint to take us to the next level?’ No. 2 was, ‘How can we create more leverage across the enterprise?’ No. 3 was talent development.”

The first thing that Hilton and Nordson performed was a rigorous review of the business.

“We have these businesses, what can they deliver over the next five years from a growth and performance standpoint?” he says. “Historically, the company grew organically at about 6 percent and historically added about 1 percentage point from M&A. We concluded that we ought to be able to take that 6 percent and make it 8 percent.

“If we continued to improve our bottom line performance, we’d have more cash to reinvest, so we should at least set a goal to add from an M&A perspective, not 1 percent, but at least 2 percent and maybe more. So how do we go from something that looks like 7 percent growth to 10 percent growth on a sustained basis?”

First, Nordson looked at ways to exploit emerging markets by improving technology and applications.

“If you think back from a strategy standpoint of how do we get more organic growth, emerging markets is a big play, using technology to create new applications, and using new technology to help our customers recapitalize are all very important,” he says. “So when I looked at what we’re spending on technology, I said, ‘Even though we’re the leader and absolutely have the best technology out there, we’re not spending enough on technology. We’re spending too much on supporting our existing products.’

“So we’re increasing the absolute amount we spend on technology and we are shifting more of our technology spend from supporting existing products to developing new.”

Another step Hilton took to drive growth was changing the strategy of how the company went about mergers and acquisitions.

“We had to add a couple of points organically,” he says. “How do we move from an opportunistic and episodic acquirer … to being a more consistent acquirer? We identified four areas of interest to us — medical devices, flexible packaging, cold materials and extending our test and inspection business. You have to use strategy to drive organic growth with technology. Use strategy to drive M&A activity in areas that make sense. We’ve made three acquisitions this year which added 4.5 to 5 percent to revenue.”

The next thing the organization focused on was what it could do across the company that would benefit each business.

“One of the assessments that I made when I traveled all around is we had done a really nice job of adopting lean technology, but it plateaued in terms of our performance results,” he says.

“Much of the company’s margin improvements from 2002 to 2007 came from the Lean initiative. We went from 12 to 13 percent operating margin to 17 percent. Last year we did 26 percent, so we’ve moved the bar quite a bit and we have more to go. We have kind of stalled out on the Lean activity.”

To drive the next wave of continuous improvement Hilton appointed a senior experienced operations employee to build a small team and give him direct reports on improvement.

“As part of that we’ve identified two things; one we’re in the middle of executing now is optimizing our global supply chain,” Hilton says. “That’s really to allow us to distribute things where the demand is and do that in the most efficient way. The second big area is around segmentation, which is understanding from a product and customer standpoint what we provide, what are our offerings, where are we making money and do we have too many products?”

The third piece of the puzzle for Hilton regarded the company’s talent. He was pleased when he traveled around the globe to see the quality of the talent Nordson had in the organization, particularly at the leader roles.

“The challenge for us, like many companies, is if you really want to grow substantially, you need to add resources and you need to do that across the globe,” he says. “To do that, we need to build up our management capability in all areas. We have good people, but just not enough to support our growth ambition.

“One of the key areas of focus is how do we enhance our overall talent development and management approach.”

When Hilton did the first review of succession planning in the organization, his direct reports went a couple of levels down and he noticed there were a lot of gaps. The company focused initially on how address that.

“We made a number of rotational moves to broaden people’s skill sets and capabilities,” he says. “Then we took a step back and said, ‘OK, for the folks that run the businesses and the functions that report to me, what kind of skill sets do we want those folks to have, both from a content or expertise standpoint and a leadership standpoint?

“Given those skill sets, what kind of positions below them would be good feeder positions that would help them develop those skill sets and capabilities and where is the key talent in the organization who could move into higher levels of leadership and management?’ We got more thoughtful in development moves and giving folks different experiences.”

Add to your strategy

Now that Hilton had spent the time understanding the business and identifying the areas where the company had the best opportunities to improve, he had to make those changes part of the company strategy.

“If you step back, these are the things that I think we need to do to help us move from that $800 million to a $2 or $3 billion company to give us 10-plus percent revenue growth and some additional leverage that gets us into teens earning growth and be a top-quartile performer,” he says.

“We had a Lean organization and one that hadn’t gone through a rigorous strategic planning approach in the past so some of the concepts were new. I brought some help in from the outside to help put some structure and discipline in and to add some resources that we didn’t really have.”

Those changes resulted in 2011 revenue of $1.2 billion. One of the keys to more organic growth was Hilton’s strong belief in leading the merger and acquisition activity in the market.

“If you can be the one out there driving the activity, you’re going to end up with a better set of deals to add to the portfolio,” he says. “If you’re driving it, you’re probably out there establishing relationships early on. It might be two, three, or four years until somebody decides they want to sell, but if you have a relationship it enhances your own knowledge of their business and therefore reduces the risk.

“It also gives you a first shot at business. The more knowledge you have, the more you understand what you’re going to do with it once you acquire it.”

For Nordson, the company looked at logical extensions of what it does today and what would fit its business model.

“We put a set of criteria together,” Hilton says. “For example, 40 to 45 percent of our business is recurring revenue through parts, services or consumables. We like that because it gives us a steady nature to our business. So when we look at things to buy, whether it has a recurring revenue component is an important area to check the box on.

“We look at whether the company is a technology leader. Is it a performance sale so that I can take advantage of my technical sales force? Is it regional, but I could take it global and use my infrastructure? We look at all those things and use a set of criteria that says this is a good deal for us.”

In June Nordson acquired two more companies, Entrusion Dies Industries and Xaloy, bringing the the total to five acquisitions in 2012. Hilton made certain these two companies fit the Nordson strategy.

Another thing Nordson is changing strategically about its M&A activity is how it manages the companies it acquires.

“Historically, we tried to buy good companies and leave them alone so we didn’t screw them up,” he says. “We like to still buy good companies but now we’re looking at what we can do to make them better, how we integrate them into the business that we have, and if it’s a new area, what else can we add to it down the road. You need to do that to deliver the performance, but also sustain the business.”

A key ingredient to sustaining the business is having top-level talent capable of keeping pace with the growth you want to see. That talent has to be intertwined with the strategy for everything to operate smoothly.

“There is no substitute for going out and spending time with your organization and making your own observations,” he says. “Talk, listen and see your folks in action. See them with a customer and then you’ll get an initial reaction, but then you have to test that with folks.”

By doing this analysis you are able to get a sense of the gaps in the organization and moving forward, it is easier to see where talent development and your strategy line up.

“If you’re doing the initial round of visits, you get a sense of what you have in the organization,” he says. “You get a sense of the skill sets and capability at a high level of one or two levels down from the folks that work directly for you so you get a sense of depth in the organization and breadth in capability. Then you weigh that up against what you’d like to do.”

The other thing Hilton did was seek out a few trusted advisors to help him while going through the talent process.

“Find one or two people that you feel pretty confident with who could be trusted advisors without any particular point of view and be objective to bounce ideas off of,” he says. “If you have that kind of open relationship, it ties into some of the other things in terms of how you gauge your own leadership.”

Most importantly, as you go through an evaluation process of your business, you have to be willing to put resources behind the things that need improvement if you truly want to create measurable results.

“Get help from outside your organization and put resources on it,” Hilton says. “It doesn’t happen without some resources on it to develop, and it doesn’t happen overnight.

“This is a really, really good company that I inherited. We’re making some positive changes. I think we can make it considerably larger and just as good in terms of the performance, if not better. I’m pretty pleased about where we’re at and about our prospects. The folks have risen to the occasion, but I don’t want to exhaust them because we have a long way to go.”

How to reach: Nordson Corp., (440) 892-1580 or www.nordson.com

Matt Kornau: Empowering Global Change

Matt Kornau, CEO and co-owner, Kaleidoscope

A new brand of soap lands at Whole Foods Market, ready to fill the shelves. Its arrival may not seem revolutionary, but the very existence of fair-trade Paruva Kaalam soap represents the culmination of a unique journey, one that illustrates how broad-minded corporations can bridge the gap between big industry’s ability to leverage resources and the need for socially responsible change.

And it’s a journey that can result in shared value for both communities and clients.

At Kaleidoscope, one of our core values is partnership. We partnered with Design Impact, a nonprofit organization that works with resource-poor communities to drive innovation where it’s needed most.

Through an ongoing fellowship, Design Impact selects seasoned designers for 10-month, embedded engagements in India. By living and working with their community partners, the fellows gain deep familiarity with the area’s most pressing problems and the resources available to create solutions.

Supported by Kaleidoscope’s researchers, designers, engineers and other specialists, the first Design Impact fellows developed clean-burning charcoal briquettes that replace pollution-emitting cooking fires. In addition, they created the Paruva Kaalam soap business that uses the glycerin byproduct of local biodiesel production.

The benefits of these two products are easy to see: cleaner air, maximized natural resources, new understanding of scalable business models and a revenue stream for an impoverished community.

The benefits to Kaleidoscope are clear, too. We have enabled design fellows to learn through doing and can scale that experience, apply it elsewhere, and repeat. Kaleidoscope’s in-depth knowledge of these emerging societies and the changes occurring in those regions can be shared with our clients. This expertise gives us a competitive edge.  

Is your company ready to empower global change and benefit from shared value? Consider taking these steps: 

Evaluate your company’s mission. Our first step was to make sure our mission aligned with the goals of the potential non-profit partner. This alignment ensured that the partnership would be compliant with both our staff and clients.

Create a realistic plan. Design Impact worked with our legal and accounting firms to develop a business plan that we could support with both financial and in-kind resource support. With these benchmarks in place, we agreed to fund the pilot project for two years. This allowed Design Impact the time and experience to develop its model before reaching out to other corporate funders.

Choose a cause that inspires your staff. Our relationship with Design Impact has grown from a small idea to a close collaboration that has energized our team and increased our capabilities. Our employees realized they could make an impact by participating. Because they understand our company’s business plan and how our organization works, they are able to manage their time in terms of company business goals and their involvement with the non-profit.

Leverage the benefits for all. The ideal outcome is to create positive social change, help clients better understand opportunity spaces, and provide an engaging outlet for employees to develop new skills. Through this partnership, we’ve created shared value between Design Impact, our clients and the Kaleidoscope team.

Big Business’ belief that emerging economies represent a ready market for Western packaged goods may prove to be a false hope. However, with global economies in flux, we may be able to catalyze opportunities for once-disconnected areas to one day fully participate in open, worldwide markets.

Until then, corporations can move socially responsible change forward using their resources of personnel, expertise and funding. Helping to teach someone how to fish is the way to go. I hope you’ll join me in finding innovative ways for your company to do the same.

Matt Kornau is CEO and co-owner of Kaleidoscope, a 23-year-old product development and design consultancy. By leveraging expertise in design, research, engineering, and brand engagement at its locations in North America and China, the company provides a spectrum of services from product inception through to manufacturing. You can reach Kornau at (513) 766-1056 or [email protected] For information, visit www.kascope.com or www.d-impact.org.

How Paul Schumacher demonstrates value to Schumacher Homes’ customers

Paul Schumacher, founder and CEO, Schumacher Homes

Paul Schumacher was eager to get down to business as he addressed employees at Schumacher Homes’ 2012 annual meeting. That’s because business was good. In 2011, the company’s leads were up. Sales were up. Customers were happy. And to top it all off, it was the single best year in Schumacher’s 20-year history. All in all, the market outlook for custom home building was looking pretty great.

But if you weren’t in that meeting, you’d never know it.

“It’s probably the best time ever to build a custom home and get exactly what you want,” says Schumacher, founder and CEO of the custom home building company that has built more than 10,000 homes to date. “Low interest rates, material costs — everything is in the advantage of the customer — other than the perception that it’s gloom and doom out there.”

Schumacher understands that many prospective homebuyers remain recession-wary. Value is the new cultural mentality, and consumers are now quicker to assign labels such as “expensive” and “extravagant” to products advertised as “new” or “customized.” In fact, the company’s biggest competition now comes from the used home market.

“When you think of building a new home, people think, ‘Oh my God; it’s going to be too expensive,’” Schumacher says. “‘It’s going to take forever, and I’m going to end up in a divorce when it’s done.’ So we’ve just got to flip that on its end.”

Show; don’t tell

As a veteran homebuilder, Schumacher knows that no one in the construction industry is going to say that they don’t make a quality product. He’s seen the word “quality” exhausted by competitors and other builders. So to set the company apart from its competitor’s claims, he’s created a business model that lets customers experience its quality firsthand.
Schumacher developed the unique model early in his homebuilding career. He frequently had customers who were interested in model homes, but either wanted to build in another area or purchase the models. That meant the company needed new model homes to showcase the quality finishes, design elements and building materials for its next set of customers.

This dilemma led Schumacher to a realization. Making it easy for people to experience your value is the first step in converting new customers and showing them what you can do for them. If quality was one of the company’s key differentiators, why not display the model homes in commercial locations where people could view the quality, design and finishes any time they wanted? Then the company could build its new homes on the customer’s lots.

“It’s very different than the typical homebuilder coming in, and putting in a subdivision – going up one street and down the other — with a cookie-cutter approach,” Schumacher says.

“People can go through 365 days a year and see and experience our quality and not just talk about it. When they go through a model home they can hold us accountable, and we expect them to hold us accountable to that exact same quality that they see in our model homes.”

The “build on your lot” model also opens the company to a broad group of potential customers. While location is predetermined with all used homes and many homebuilders, Schumacher can offer customers quality custom homes that fit virtually any price range in any geographic location.

“We say, ‘We want you to live in what you love,” Schumacher says. “So in any geographic location we’ll have 200 to 300 different floor plans that we offer, but those are just a starting point.”

Today, the company builds model homes along the highways throughout where it does business. It’s no surprise that employees refer to them as “a parade of homes,” especially considering how many people pass through them each week.

From a marketing and advertising standpoint, the models help the company learn about the attitudes of buyers in different communities where it operates.

“It’s great to have big numbers coming through where we can kind of hear the same things over and over to try and identify trends,” Schumacher says.

“People really like the fact that we’re like a permanent fixture on the highway, that we’re not going anywhere. We’re not a builder that’s just going to go into a subdivision and when the subdivision is built out, they’re just going to move across town or out of town.”

Make it special

An ongoing challenge for any business is creating products that people prefer to ones readily found out in the market. While you need a product that’s affordable and good quality — of course — you also need to offer a better buying experience.

To show customers that building a new, custom home won’t blow their budget or boost their blood pressure, Schumacher developed his business around the idea that it’s all about customers getting exactly what they want.

“We say we’re not going to stop in the design process until we nail it and you’re getting exactly what you want, because our competition is the used home market,” he says. “We always tell people in buying a used home — someone else’s dream home — it just comes down to how many compromises are you willing to make. In building a new home, you don’t have to make any because it’s all designed around you.”

First, the company uses every opportunity to survey consumers and learn their new home “wish lists,” incorporating the market’s feedback into upgrades in existing models. It also adds these design options and features into its vast design database for future customers.

“You have to change,” Schumacher says. “Our whole design philosophy is we have to be able to give something to someone when they walk in a model home — it’s a blueprint that’s fun and exciting and inspiring — to get them to build, because if it’s the same old, same old, been there, done that, there’s no point in building it. They can go out and find it in the market.”

Larger trends in consumer feedback even prompted Schumacher to launch a new line of home designs called the Earnhardt Collection, which addresses a market segment that desires more informal spaces such as great rooms and open kitchens. Collaborating with the Earnhardt family — popular from the NASCAR racing world — the company launched the new line in late 2011, and it is already popular with customers.

“People really want unique, fresh homes,” Schumacher says. “They want a very relaxed and comfortable atmosphere — formal is out.”

Since the majority of people want significant customization on the outside or inside of their home, the company also emphasizes the fun, straightforward nature of its design process. To help people envision their changes, designers demonstrate them on a live monitor, using interactive, real-time design technology.

“They’re seeing the walls move before their eyes,” Schumacher says. “They’re seeing the exterior change. And the beauty of that is we’re all so visual, we can say, ‘Is this exactly what you mean or do you want to add two more feet here? Do you want to rearrange the kitchen?’ and they’re doing it all right in front of their eyes. People say this is great because you can get so much more done when you’re doing it in real time.”

Even with these design elements, Schumacher knows that price is still the major factor in building a new home instead of buying used.

“People say ‘I love the plan. I’ve designed it. I’ve customized it. It’s exactly what I want,’” Schumacher says. “But the next big question is, ‘OK — how much?’”

To answer this question, he’s spent the last 10 years developing a price quoting system that lets customers individually price every piece of their home. When you are dealing with customers who are unfamiliar with the many costs going into the final product — design, labor, building — transparent pricing is even more critical, Schumacher says.

“We put them in control so they see where every dollar is spent,” Schumacher says.

“It’s that innovation all around the whole design and buying cycle that I think really differentiates us.”

Go green

The success of the company’s business model is evident in the quick turnaround time, good communication and high quality that make up its competitive advantage. But it’s also the product of the 225 employees who contribute to the company’s goal-oriented and results-driven culture.

The backbone of this culture is a company-wide scorecard system, which rates each store location and individual employee with color-coded metrics. Metrics are built around areas such as sales, time of construction and homeowner satisfaction.

“A big part of our success is the whole scorecard system where everyone, every department knows what’s expected of them on a monthly, quarterly and yearly basis and everyone is working in the same direction,” Schumacher says. “Without those goals, a lot of it is just talk.”

Red scorecards indicate stores or employees that are below a goal, yellow indicates that they’re within 10 percent of a goal and green signifies that they’ve met or exceeded a goal. The simple and visual nature of the scorecards makes them especially effective, he says.

“Anyone in Schumacher Homes can pick up a scorecard, and without even looking at what the individual metric is, they can see a lot of green means ‘Man, we’re doing a good job! We’re on plan.’ Yellow — ‘Hey, we’ve got to address those areas’ — and red, ‘We’ve got to take note of it,’” he says.

Scorecards also show individuals how their achievements roll up into the company’s overall progress on its goals. Results are shared on the corporate Intranet as well as publicized at regional meetings.

“We’re an open book,” Schumacher says. “Whoever is in first place, it’s very well-known and whoever is in last place it’s very well-known. Everyone really strives to be the best they can, to meet their goals and then to be the best in the region and the best in the overall company.”

Schumacher uses company meetings as an opportunity to recognize top performers as well as to recognize accomplishments such as ‘most improved.’ When you discuss goals clearly and often, people can see what you trying to accomplish on a short-term and long-term basis, empowering them to be part of the success.

“You communicate the importance of the goals, in that, by hitting the goals we can get to the next level of investment or we can do these significant projects,” Schumacher says. “So everyone understands their significance, their role, and what the company is trying to do.”

Today, the company’s culture is built on green scorecards and how employees can see more of them. When visiting different offices, Schumacher notices that employees are quick to pull out their scorecards and ask for feedback.

“They’ll say, ‘What is it going to take for us to be green in whatever the metric is?’” he says. “There’s great sense of pride and teamwork in that.

“We know that we have to have a very good, straightforward, simple process that makes it fun and exciting. At the same time we have to deliver an unbeatable value, a great value.”

Out of 35,378 homebuilders in America, the company was recognized with the 2012 National Housing Quality Award, an industry benchmark award for total quality management. Coming off its best sales year ever, it’s also seeing a new spike in customer interest through leads and site visits.

“Our mantra here is we don’t really care what’s going on in the industry — we’ve got to go make our own market,” Schumacher says.

How to reach: Schumacher Homes, (877) 267-3482 or www.schumacherhomes.com

Takeaways:

  • Show your value to customers.
  • Customize your customer experience.
  • Get your team invested in your value proposition.

The Schumacher File

Paul Schumacher
founder and CEO
Schumacher Homes

Born: Canton, Ohio

Education: Western Reserve Academy, Cornell University, University of South Carolina

What is one part of your daily routine that you wouldn’t change?

Working out every day at 5 a.m. — physical stamina and mental stamina go hand in hand.

Who are your heroes in the business world and why?

My mom and dad are great role models for a strong work ethic, positive attitude and to believe all things are possible.

What would your friends be surprised to find out about you?

I had four holes in one — and climbing Mt. Kilimanjaro with my 14-year-old son in June.

On getting out of the ‘flipping’ business into the home construction business: What I realized is that all you are doing is dealing with someone else’s mess, because you’re just going in and fixing up old houses. As I got into it after a year or two I thought, man, it would be great to have your own brand new, fresh product and not be fixing up someone else’s mess from 40 or 50 years ago.

Robin and Chris Sorensen revitalized Firehouse Subs’ marketing strategy to reach more customers

Chris Sorensen, co-founder, Firehouse Subs

As former firefighters, brothers Robin and Chris Sorensen know that quality and quantity are both important when it comes to a sandwich. So when they co-founded Firehouse Subs in 1994, their vision involved providing better service and a better restaurant experience for their customers. It also involved more meat.

“We made a list of things we thought we had to do to be different and be competitive, and it came down to the concept, and it came down to the experience at the floor level and service levels,” Robin says. “And then it came down to the food.”

Over the years, Firehouse built a reputation for its appetite worthy portions of premium meats and cheeses. With the advantage of being one of the least expensive brands in the fast-casual segment — competitors include Five Guys and Panera Bread rather than Subway — the company steadily grew its regional foothold from Jacksonville, Fla., to 300 locations in 17 states.

But at the beginning of 2007, all of that changed. The restaurants started losing traffic.

Robin Sorensen, co-founder, Firehouse Subs

“Up until that point, we never had a down quarter,” Robin says. “We’d been building on a continuous basis, and we didn’t even realize how good we had it.”

While the brothers didn’t know it yet, the company’s problem went deeper than the economic recession. The problem was “crappy” marketing.

“What we learned is that people who weren’t eating there — they didn’t really understand what we were,” Robin says. “The Subway customer assumed when they saw our sign that we were just like Subway.”

Root out the problem

Facing some of the darkest days in Firehouse’s history, founders Chris and Robin knew that the company’s franchisees were looking to them for reassurance. Feeling that they owed it to them to look at every opportunity to revive business, they took input from owners and employees, realizing that many of the ideas weren’t viable options.

“For the first time, we could feel the weight of the system on our shoulders, almost literally looking at us and asking, ‘What are we going to do?’” Robin says.

“Some of them were saying we should cut our portions down — which my blood pressure is going up thinking about it. But we had to look at different opportunities. That whole process — all it did was lead us to say, ‘We’ve got to do something.’”

Both felt strongly that they couldn’t jeopardize the quality or quantity that defined the Firehouse Subs brand in exchange for short-term profits. But they agreed they couldn’t stand still either. So as they debated how to handle the declining numbers, the Sorensens also started taking a hard look at their advertising agency.

The company had talked about changing advertising agencies in the past. And seeing the poor results of recent efforts, its leadership offered the agency one last opportunity to present its ideas on how to resuscitate customer traffic. Needless to say, they weren’t impressed.

“Basically, we were out of options,” Robin says. “We weren’t in great shape. So we did something drastic.”

Feeling more and more that the reason for poor performance stemmed from ineffective brand marketing, the leaders proposed a radical change.

In the summer 2008, they decided to rescind the 2 percent in royalties that franchisees paid the company for its corporate marketing efforts. Instead, they told franchisees that they could keep the money — if they agreed to do their own marketing.

“We came up with a comprehensive plan on what they need to do with that money at their discretion, the old fashioned stuff — hiring sign wavers, developing catering, knocking on doors, ‘touching’ people, speaking at the chamber — all of the things that helped us build the company,” Robin says.

Then they hopped on a bus, traveling around the country to present the new marketing plan to store owners with a national founder’s tour. A key part of the presentation was showing franchisees how to execute the new, guerrilla-style marketing initiatives.

“We’d have 10 people from our office get off the bus and we’d all hit three, four or five stores depending on the city,” Robin says. “We would go out and market those stores on the ground ourselves with them to show them how to get it done. We always built sales wherever we were at. So it was radical, but we tried it.”

After six months, about 20 percent of the system was really on board and executing on the suggestions. So the brothers decided to extend the efforts for another six months.

In the end, the local marketing ramp-up wasn’t enough to stop the decline. Continuing to lose traction, the company closed out the 2008 year down 6 percent in comparable store sales. By 2009, the company was falling nearly 7 percent. The Firehouse Subs brand still wasn’t registering with the customers; and Chris and Robin went shopping for a new advertising agency.

Focus on the right customers

As they began their search, the brothers looked for a smaller agency where they would know the owners personally. So they were skeptical when their consultant proposed a meeting with Zimmerman Advertising, an agency worth $2 billion whose clients include high-profile brands such as Papa John’s Pizza.

“I said, ‘Let’s not even go down there to Ft. Lauderdale because they are too big,’” Robin says. “‘We’re going to be lost in the shuffle.’ And the consultant said, ‘They are different people down there. They are a unique agency, and I’ve seen a lot of them. … I think you guys are going to hit it off.’”

Compared to the last 20 presentations they’d gone through, Zimmerman was the only agency so far that had no marketing ideas to pitch. As they sat down to meet with the company’s leadership, its staff admitted that they didn’t know much about who Firehouse was. Instead, they pitched themselves.

The agency’s founder, Jordan Zimmerman, pointed out that both of the company’s previous agencies had pitched their ideas for the business before they even had time to research who and its customers were. But Zimmerman did things differently.

“His point was how do they know if that’s right when they haven’t had enough time or money to go out and really do thorough research?” Robin says. “And he was right.”

So when the meeting was over, they hired Zimmerman as their new agency. They also gave them the money to go out and do the necessary market research to develop their brand strategy. The agency used techniques such as intercepting customers — going into other stores and offering them a free lunch at Firehouse Subs in exchange for feedback — Zimmerman soon figured out why the company was losing customers. The brand needed to reach more people.

At the time, the company had lost about 10 percent of its traffic. But while the owners were so focused on getting those people back in the door, they’d also overlooked an essential question: are these the right people?

“The point is — they’re gone,” Robin says. “We weren’t really focusing on the 90 percent that are OK with our proposition. So we started trying to better understand who those customers are and who other customers are.”

The agency also told the brothers that it would take a 4 percent investment from each of the franchisees to execute a new brand marketing strategy.

“I said to them, ‘So you’re asking me to go our franchisees and say not only do you have to give me the 2 percent back that we let you keep temporarily, but you’re required to, and you need to give us two more that you’re not required to?’” Robin says. “It was radical.”

But while knocking on doors worked occasionally, the customer data made it clear that Firehouse Subs had to reach more consumers with its message if it was going to stay profitable.

“The simplicity of it was just ‘find more people,’” Chris says. “Tell them who we are and why we’re better. With the economy down, there were a certain number of people who couldn’t afford to eat with us, and we weren’t going to get them back until the economic situation was corrected. But there were thousands upon thousands of people that we could reach, which is what we did.”

Try a new tactic

With the help of Zimmerman, Robin and Chris began making the changes to the company’s marketing and advertising. First, the company increased its emphasis on the items that make it different from competitors — its big portions of quality meats. At the heart of the strategy was the radio.

The agency suggested that, as founders, Robin and Chris should represent the brand in radio commercials. Instead of discounting the price, they’d focus on Firehouse Subs’ bigger portions and fresh-sliced, steamed meat and cheese. The commercials would also include a new slogan: “Our way beats their way. If you don’t agree, it’s free.” By mentioning the price in the commercials, customers would know exactly what to expect coming into the restaurants — a medium hook and ladder for $5.39, not a $5 footlong.

“We’re giving a guarantee,” Robin says. “So if you take one bite and you don’t like it, we’ll give you your money back. While everybody is talking about smaller sandwiches — $2 torpedoes, $5 footlongs — we’re going to be the only one talking about premium.”

At first, Chris and Robin were hesitant about going on the radio, even as they helped write and develop the spots. So they began a 10-week test run, doing radio spots in Jacksonville, Fla., Knoxville, Tenn., and Augusta, Ga.

“We were concerned about not doing it well, and we don’t want the system thinking that we think it’s all about us,” Robin says. “What if we fail at it? So Zimmerman was like, ‘If you suck, we’ll be the first to tell you.’”

Within days of starting the radio campaigns, the stores saw 10 to 15 percent lifts.

“Without discounting, without changing who we were, without coming up with the next cheap sandwich, we stuck to what’s made us who we are and just started blasting the airwaves and finding new customers,” Chris says. “And it worked.”

Bring the fight home

The company now had real data in its back pocket showing that the radio worked. But now, Chris and Robin had to go back to owners with the new marketing strategy and convince them to invest in it. In summer 2009, the company held its first ever corporate-wide conference to introduce the new agency and new marketing investment.

The brothers explained the tests and the results of radio campaigns. They explained the big picture and the vision. Because the plan to give owners the reins over marketing hadn’t worked, they felt that they had even more authority to ask franchisees to support the changes.
“If we hadn’t given them money to try it on their own, they may have demanded some other options,” Robin says.

“We said, ‘You’ve had this for a year. We tried an agency. We couldn’t get results. We gave them an opportunity to present their ideas. They weren’t good. We tried it. Check. Then we gave you the money for a year. It didn’t work enough to turn us around. Check. Now we have a new agency.”

They asked the 80 percent attendance of franchisees in attendance to double down on their investment into the corporate marketing. In the following five months, they held meetings with the other 20 percent to get their support. In the end, everybody who was eligible to be on the radio voted to do it.

“As much money as we spent, it came down to buying the right media to talk to the right group of people, and hitting it heavy with the right message,” Robin says.

“The bottom line is that it was a major risk, a double down in a bad economy, and it absolutely was the most phenomenal thing we’ve ever done.”

Since the second quarter of 2009, the company has continued to increase sales 4 to 6 percent every year, fueling its expansion to approximately 500 locations today. Revenue for 2010 was an impressive $256 million. The brothers have already invested close to $5 million of their own money in the radio campaigns. Yet there is still one thing they would have done differently a second time around.

“Fired our agency earlier,” Chris says.

How to reach: Firehouse Subs, (800) 388-3473 or www.firehousesubs.com

Takeaways

1.         Figure out where you need to improve.

2.         Rethink your market of customers.

3.         Step outside your communication comfort zone.

The Sorensen File

Chris and Robin Sorensen
Co-founders
Firehouse Subs

Born: Jacksonville, Fla.
Favorite Firehouse sub:
Robin: Smokehouse Beef & Cheddar Brisket
Chris: Smoked Turkey Breast

About the Firehouse Subs Public Safety Foundation

Founded: 2005

Mission: To buy life-saving equipment for fire, police and other public safety institutions

Robin: We’ve saved lives with the equipment that we’ve donated, and it’s really taken on a life of its own. People understand Ronald McDonald House, and that’s big part of who they are. We want the same thing with Firehouse, because not many companies have really made a great connection like that, like we have. We started it from the heart because we enjoyed it and thought it would be great. One of our agencies put it as one of our brand pillars in who we are. It’s one of the pillars of building a great business in the community.

About 50 percent of the donations come from the store and our customers. The other 50 come from our vendors, franchisees, Chris and I and our partner Steven. We’ve put in almost $600,000 of it ourselves.

What are the best business lessons that you’ve each learned in your careers?

Robin: One of the biggest failures — there’s two parts to it. One is people just aren’t willing to do what it takes to grow their business. You hear it in the way they talk about it, ‘I’m willing to do this, but I’m not willing to do that. I’m not willing to put the hours in.’ They set parameters on themselves: ‘I’ll work five days a week, but I’m not working on Saturday during the college football season.’ When we opened up, it wasn’t that we said we’ll do anything; that was our philosophy and mindset. The other part of is, are you in it for you or are you in it for the company — the frugality piece.

Chris: I was told this advice from an old mentor of mine. He told us if you want to be a smart business owner, you don’t buy expensive cars or a yacht. He told us if you can’t write a check for it, don’t buy it. My brother and I still practice this to this day.

Adrienne Lenhoff: How the social media explosion has made customer service critical

Adrienne Lenhoff

Adrienne Lenhoff, president and CEO, Shazaaam PR and Marketing Communications

Your good reputation is your company’s most significant piece of equity. Are you monitoring and protecting its value?

Most brand detractors won’t go to your corporate website, Facebook page or Twitter account to complain. Instead, if aggravated enough, they’re going to tell anyone willing to listen why they should stop doing business with you. Word of your brand’s perceived inadequacies can travel at the speed of light and can destroy your good reputation within nanoseconds.

One in every five people is likely to speak their mind and bash brands through online channels. Research shows that people do not practice as much self-control in their online behavior as they would in person, or through other channels.

One negative social media comment can cost your company 30 customers. Conversely, a positive social media review could lead to 30 new customers.

A study by Convergys cited bad reviews or comments on a social network sites reach an average of 45 people. Of these, two out of every three never rebroadcast or play into the discussion. Instead, they silently commit to avoiding the brand being slammed. It is estimated that companies are losing about 12 percent of their customers that way. This can spell the difference between a company’s success and failure.

Cherry Tree also did research that found that while 22 percent receive a poor experience, only 2 percent actually complain, 98 percent of dissatisfied customers never complain with 55 percent of those customers at risk and 45 percent actually defecting.

The Convergys research focused on the impact between pre-purchase informational browsing by prospective customers, and its correlation to lost business. The study reinforced that the consumer experience now begins when the consumer logs on.

Don’t kid yourself into thinking that poor service, defective products or manufacturing glitches aren’t dissected in the social space. Tens of thousands of social sites with review mechanisms exist and more launch each day. Check them to see what’s being said about your company.

Think about it: One bad tweet can equal 30 customers lost. That means, with social media, great customer service is essential to the preservation of a company’s reputation.

Each second a dissatisfied customer is bashing a brand online, are they bashing yours?

If someone posts bad news or misinformation about your brand, how many of the people reading the post will then share it with their contacts? How many people reading the re-posting will then rebroadcast it themselves? The reposting or retweeting possibilities are both frightening and endless.

Think about the impact all that broadcast reposting and retweeting has on your company’s bottom line.

How much is your average sale? Multiply that number by 30 to determine revenues lost by each negative review you receive. How many times have you Googled a company, brand or individual prior to your doing business with them? How many times has your search influenced your purchasing decision?

Before doing business with you, potential business partners and customers are going to want to learn as much as possible about you. In the eyes of the potential customer, what appears in the search results on Google, Yahoo and Bing define your company. False, erroneous or misleading postings found in search engine results cost corporations hundreds of thousands of dollars each day.

It doesn’t matter whether the negative comments are from a competitor, a news site, a message board, a blogger or disgruntled employee – their impact can lead to devastating financial challenges. What will they find when they search?

Perhaps it’s time for you to begin formulating a plan to protect your good reputation.

Adrienne Lenhoff is president and CEO of Buzzphoria Social Media Marketing and Online Reputation Management, Shazaaam PR and Marketing Communications, and Promo Marketing Team, which conducts product sampling, mobile tours and events. She can be reached at [email protected]