Cheap Always Loses

The other day I was talking to my friend Vicki Flaugher, founder of Smart Woman Guides about one of many Fortune 500 companies whose go to market strategy is price leadership.  That doesn't leave many options. You see it all around.  99 cent burgers.  79 cent tacos.  In reality its price prohibitive to make a burger for 99 cents, so those companies take a loss on each one sold in the hopes they'll up sell you on a non-loss item, perhaps a super size drink.

In my opinion cheap always loses, because you can only go one direction: cheaper.  One of my favorite Fast Company articles was written back in 2006, The Man Who Said No to Walmart.  He walked in to make his pitch and the VP's office was furnished with plastic folding chairs left behind by another vendor as a demo.  I read that article 4 years ago and I still have this crystal clear image of what he must have looked like awkwardly sitting in a crappy lawnchair in his suit, briefcase resting on his knees, knees positioned somewhere near his ears.  Like a giant in a kids chair.   What kind of an executive of a Fortune 500 company seats guests on plastic folding chairs?  What does that say?  "Dear God we're cheap.  We are so cheap it literally hurts.  Try it, sit down.  Ouch.  This chair sucks."

The Man Who Said No to Wal-mart said no because his company (Snapper) stands not for volume, but for quality, reliability, and durability.  His product wasn't cheap.  It was built to last.  Their value proposition isn't price, it's performance and longevity.  Even though he successfully ran his manufacturing operations much like Walmart ran its stores, with fastidious detail on each element of precision and productivity, he wasn't willing to sacrifice quality for price.

Business is about what you stand for:  Value.  Quality.  Convenience.  A fanatical obsession with customer service.  It's also about where you are headed.  Short term gains around pricing today can have huge long term consequences.  How do you differentiate yourself in a noisy marketplace?  Where do you want to be in 10 years?  What are you going to doing today to get there?  Who will you say no to?  What will you do to preserve the values you hold dear?  Will you turn down clients?  Will you turn down money?  Most likely you will.  And if you lead your business with a strong moral compass, unwavering commitment to your core values, selfless dedication to your clients, customers, and stakeholders, and complete transparency your difficult decision will be rewarded with great success.

Stay classy,

Rachel

5 Habits of Successful Fundrasiers

Face it.   Most people are afraid of asking for money.  Others excel at it and love it so much they do it for a living.  I am one of those people.  What are the 5 habits that make fundraisers successful? 1.  They are grateful.

Successful fundrasiers are some of the most grateful people you will ever meet in your life.  First and foremost, they are grateful for the purpose for which they are making asks, be it a for profit product or a non profit mission.  Secondly, they are grateful for every monetary gift they get.  They are quick to openly express this gratitude, which makes the funder feel acknowledged and valued and contributes to the fundraisiers continued success.

2. They have a naturally positive attitude and outlook on life.

You can't be successful asking others for money if you don't see the glass half full.  Your positive confident belief in your product or mission is what sells it.  It takes many no's to get to a yes.  The no's help you develop a thick skin but you have to be able to bounce back to a state of positivity to stay in the game and go out after your next ask.

3.  They are born extroverts: they have a natural drive to always be creating, building and maintaining strong relationships.

A successful fundraiser is managing a portfolio of potentially hundreds of prospects.  They should visit 50% of those prospects in a year and have 30% of their prospects in active solicitation.   On average they should be making 2-3 asks a month and have a close ratio of 50-75%.   This translates to a lot of phone calls, breakfasts, lunches and networking events.

4.  They are extremely goal driven.

Whether they are building a playground for the visually impaired, a technology center for girls, or a hospital for children successful fundraisers can visualize the dream of their end goal and they dedicate each moment to strategically getting there.  They break it down step by step to tangible, measurable goals they work every week, every month and every year to get there.

5.  They are organized.

You can't raise millions of dollars or manage hundreds of prospects without being extremely organized.  Fundraising is a big job and every minute of your time is precious.   You have to spend it wisely cultivating relationships, making asks, pursuing new opportunities.   Determine what 3-5 core areas you will focus your time on to get the maximum results to reach your goals, i.e. cultivating existing relationships, making asks, developing new relationships, working with your board, etc and hold yourself accountable.

I have found fundraising to be one of the most profoundly meaningful careers out there.  Being in an intimate conversation with another person about the legacy they want to leave the world is deeply significant.  Having the opportunity to be a catalyst to help one person make a difference in the lives of others is infinitely rewarding.

Go forth and fundraise!

Stay classy,

Rachel

3 steps to a painless employee evaluation

I know some of the brightest entrepreneurs in the business.  Some excel at strategy, others at marketing, or innovation. Their boundless enthusiasm gets everyone around them excited.  Their determination and drive draws others in like moths to a flame.  But there's a secret they harbor.  Many of them despise managing other people.  They've raised millions, they've sold millions.  Yet they would rather stride into Pixar's executive offices to make a pitch than give an employee feedback about their performance.  It makes sense, I mean who WANTS to have a difficult conversation? Here's the secret: it doesn't have to be difficult.  If you invest the time and use these tools you can say goodbye to employee performance evaluations as a dreaded workplace ritual. A note of disclaimer here because let's face it, there are some toxic broken people in the workplace so hell bent on destruction that they can make everyone's jobs a living nightmare.  Like these managers whose feud made headlines.  Those people need to be shown the door.  These tools are for the rest of us.  Employee problems are likely to be a direct result of our mismanagement.  Ouch.  Did that feel like a slap in the face?  It isn't - it's a growth opportunity.  How can you get better?  Improve your management skills.  Leading teams is a muscle you are always flexing.  Just when you master one challenge, another presents itself.

Here are 3 secrets to have meaningful, rewarding and successful performance evaluations.

1)  Do weekly one on one's with your direct reports.  Meetings can be as short as 30 minutes.  This time is critical for two reasons; first is is your employees opportunity to check in with you, update you and ask for help if they need it.  Secondly, it's your time to share feedback with them, redirect them if they are of course or praise them if they are on track.  If you are doing one on one's consistently and sharing appropriate feedback then NOTHING in your annual employee evaluation will come as a surprise.  Nothing in the annual review should ever be a surprise (unless it's a big fat raise).

2) Have employees create SMART goals, written goals approved by you, their supervisor that are Specific, Measurable, Attainable, Realistic and Time Framed.  Example:  "Work with sales team to launch monthly open house point of entry events starting in June  attended  by a minimum of 15 prospects monthly".  SMART goals should be organized based on their job description and/or current strategic plan. Employees should create SMART goals and submit them to their supervisor for changes and approval.  This process is time consuming but worth every penny; it gives your employees have a road map to success and 100% ownership in their work.

3) Evaluate employees performance using objective behavioral specifics.  Separate behavior from attitude and judgment from feedback.  In other words: be specific.  Have someone who shirks responsibility?  Tell them how by rating them against the behavior you want.  i.e.  "Accepts responsibility for tasks or projects. Does not blame others when she makes mistakes or goals are not met. Acknowledges her contribution to mistakes when they happen and makes a plan for correcting or preventing them in the future."  You must clearly actively describe each manifestation of the behavior you want.

Here's an area of great complexity: communication.  An employee can be a great writer and a horrible presenter.  They may do well in small groups but horrible in front of large groups.   Get specific in your evaluation criteria.  For example:

Communication: (Internal) Presents information so that it is understood by the listener. Gives information that is useful.  Is able to get to the point in a timely fashion. Summarizes key points in a situation and shares those in a short amount of time. Makes regular, sustained eye contact. Listens actively. Uses both broad and narrow questions to check for understanding and find solutions to problems.  Gives staff the information they need about projects in order to meet deadlines and deliver quality programs and results.   (External) Can speak to both large and small groups and keep the audience engaged.  People respond to her speaking with interest and enthusiasm.  Is well prepared for public speaking opportunities. Creates compelling visual materials and handouts. Tailors her speaking to the needs of her audience; is able to fluctuate the length and depth of a conversation based on the context and the listener’s needs.

Each of these steps will put you on the right path to success.  Do they take time?  Yes, but these are the steps to achieve great success, build successful teams, and groom new leaders.

Go forth and lead!

Stay classy,

Rachel