In the Company of Crayons

Red, blue, yellow. The primary colors. You can combine them to make every other color in the spectrum…very cool.

It’s my impression that everything in life comes down to basic things. Even the most perplexing. Thoughts. Emotions. Human nature. Writers, musicians, poets, politicians, clerics… throughout the ages, all have been fixated on primary things.

Human nature can be analyzed with these same primary colors, especially behavior change. No one likes it. It doesn’t feel good and it’s hard to do – at any age. Oh, people may say they’ll do things differently but very often that’s not the case. Consider the weight loss industry; they certainly know how to capitalize on repeated attempts at behavior change. It’s their bread and butter. (Pun intended.) The flood of weight loss remedies continues unabated. And every new year…the recurring avalanche of weight loss resolutions.

Sometimes aversion to change can have health consequences, sometimes marriages suffer…as well as relationships with friends and family. Sometimes it can affect a business. That’s my day-job obsession. Entrepreneurs who are at the helm and set the course.

Can anyone explain the basic impediments that stop a business owner from taking the time to plan and protect the years of hard work and sacrifice? As important as this is to everyone concerned, few take the time to safeguard their most valuable asset. Why? Primary colors.

Red. Business owners do not want to change anything in their daily routine. As easy – or hard – as running the company may be at any given time, the general behavior clearly indicates there’s no reason to do anything differently. What they did yesterday is good for today. They know how they got “there”. They’re always in control (supposedly) and nobody is going to tell them what to do next. It’s a hard stop.

Blue. These folks are cold and unapproachable when it comes to planning, never warming up to an new/unfamiliar/uncomfortable topic. “If I don’t want to hear about it (It being insurance, exit planning, succession planning, key man, disability, estate planning, tax strategies, buy-sells…), it’s not important. I have a company to run and I’ll be here tomorrow – as usual – to run it.”

Yellow. They’re downright afraid to identify problems. Even if they’re aware of the issues, they don’t want to validate them. “If it ain’t broke, don’t fix it.” Or the other siren songs inside their head. “That’ll never happen to me.” “There’s plenty of time for that.” (Dangerous, mermaid-like chants, and many a sailor has been shipwrecked.)

Primary colors are ubiquitous. Unfortunately, the colors can create a rainbow of trouble in a company when they are unexpectedly forced together.

The biggest box of Crayola Crayons has 120, not including specialty colors.

Yes, some boxes still have a built-in sharpener but none have an eraser.

Lava Lamp

I stumbled on a Heart concert from 2002. The performance was great, but I couldn’t help but notice Lava Lamps on the stage. https://www.youtube.com/watch?v=0DLeH2FWFTE

Lava Lamps. Invented by an accountant in 1963, https://en.wikipedia.org/wiki/Lava_lamp and although their popularity has gone up and down over the years, they never went away. I would bet a large group of baby-boomer business owners had one at some point in the their life. And…when they watched the lamp they were looking into the future. Who knew?

Turn on a Lava Lamp and you can stare at liquid shapes randomly distorting while floating in suspension. As long as it’s on, the wax mixtures move. Unique. Soothing. Hypnotic. And not just for those folks who enjoy Ravi Shankar music and herbal therapy from time to time.

Lava Lamps should be sent to every entrepreneur.

The lamp is their company. Some are big. Some small. But when they’re on, everything is in motion – constantly changing shape – inside a defined space. That’s the life of a business owner; they move around in their company, juggling a bunch of things, attention stretched, and never stop as long as nothing is disturbed. These people work, or think about work…even when they’re not at work.

But if an owner never lets his or her “lamp” cool off and doesn’t take time to plan and protect what they have worked so hard to build, it might burn out. Or break.

Both my kids (now 24 and 23 years old) have Lava Lamps. Like I said, they never go away. One of them got broken accidentally. Knocked off a shelf, it shattered. Very messy. Completely destroyed in an instant. The only option was to buy a new one. We did. Same color. Same size. Replacing it was quick and easy. Google Lava Lamps, you’ll get four million hits in about a quarter of a second.

Unfortunately, most business owners will not be able to replace their company or their life.

Even if they could, it will never be easy or fast.

Til Death Do Us Part

A fair amount of business owners are married. Some have children. And I’m not referring to the company, although the business could very well be the most demanding of all the kids. (God knows “it” gets tons of attention.)

What many entrepreneurs still fail to realize is that things happen. Partners die. Partners get divorced. Partners may want out of the company. And without a proper Buy-Sell Agreement in place, funded, and tied to a current business valuation there could be trouble.

Don’t think this is just about a male business owner and his pretty little wife. Plenty of companies are built by women. Strong, smart, independent women. So the spouse could be a man. Gender doesn’t make any difference. Spouses have rights. And they are legally entitled to assets. It’s likely those assets could very well be ownership in a business. Ownership in a business may also equate to a position in the company. What? “I don’t want that.” Few – if any – entrepreneurs do. They all enjoy control. It’s like a drug. But business owners remain serial procrastinators; they spend little – or no time – planning. Protecting.

So tonight, when you tuck yourself in bed and look over at the wonderful person you’re sleeping with… Consider a scenario where your co-owner’s spouse is now YOUR partner. Or worse yet, his or her new boyfriend, girlfriend, husband, wife is now in business with you. They may not have any experience, but they’ve got plenty of ideas and there’s not a darn thing you can do about it.

Yes, the whole scenario may have started with a big celebration, hugs and kisses all around, dancing, laughing, pictures, and lots of happy faces. But it may not end that way…and your next formal sit down may be in a lawyer’s conference room. No music. No cake. No smiles.

That’s when you’ll realize the honeymoon is officially O-V-E-R.

How much will it all cost?

My guess. A lot.

 

News at 11:00. R.I.P.

Network News reporting the big stories at 11:00pm. It used to be a ritual. If it bleeds, it leads.

Now… “Dead man walking.”

There’s countless news outlets (and individuals) pushing stories all day – every day – and you can get that “news” on any device – whenever you want. You can even set notifications for the type of news you want to see. Sure, some of the content is editorial, masquerading as objective reporting. Some of it is nonsense. But when you have that many sources, you take the good with the bad. Make intelligent choices on what you read, how much of it you read and what you share. http://content.time.com/time/specials/packages/article/0,28804,1860871_1860876_1861029,00.html

It’s an information tsunami; and that much incoming ordinance is bound to blow up plenty of brain cells and eyeballs. We’ve become mobile device addicts. Hypnotized by that glowing little screen. “Look at me…look at me…” No 12-step program can help.

Thus, the proliferation/popularity and absolute necessity for video sound bites. How many of us have closed a link on a story we wanted to see just because it didn’t load instantly? I did it this morning. Twice.

Short. Relevant. Video. Delivered to a mobile device. Information on demand. That’s a good place to start. And a strategy (still) lost on the traditional “big machines” that desperately need to engage with an audience – and marketplace – that is changing rapidly.

Soon enough, News at 11:00 will only be airing at the Smithsonian, if it isn’t in that time slot already.

What’s next? Network TV?

 

 

Stop the Insanity

Is corporate America choking on meetings?

I used to be employed in a (not so big) publicly traded company many years ago and I was frequently perplexed by the amount of meetings I had to attend, and the number of meetings I saw during the day. Meetings must be important; you always need to reserve the room. More often than not, people would schedule a meeting to discuss an upcoming meeting. Generally nothing gets accomplished in those sessions.

What became increasingly apparent was, the more meetings I attended – or was asked to attend – the less productive I became. I ultimately ran screaming from the building and leaped back into the familiar arms of my ex-lover. Entrepreneurship. Yes, it has many challenges, but one thing I like to do is make decisions quickly and act on them with the same alacrity. If they’re wrong decisions, I change them. Maybe someone else changes them. That’s fine too.

Business in 2016 continues to accelerate. Sitting around for hours in a conference room or on a conference call – worse yet – is complete torture and generally will accomplish little. Even if a decision is made, implementation could take weeks, or even months. By then, you’ll probably need to coordinate another meeting. And on and on and on…

A nimble corporation is an oxymoron. I’ll wager there’s a direct correlation between the size/age of a company and the frequency of meetings in any given week. Someone must have done productivity assessments. That would be an interesting study.

One consequence of this mindless routine is opportunity. Not for the lumbering corporation however, there’s gold in them there hills for disrupters. Why? Fertile ground. What’s the quote? “Disrupt or be disrupted.”

Maybe in some small way, companies will take proactive measures and use this as a best practice. http://www.businessinsider.com/steve-jobs-meeting-techniques-2015-8

P.S. The next time a co-worker one office away sends you an email, please get up, walk 10 feet and promptly unplug their computer. And while you’re at it, smack their iPhone, or Samsung, (or whatever mobile device they’re flirting with) out of their hands.

Ding Ding Ding

Another black eye. The Department of Labor came out with their ruling back on April 6, 2016. http://www.naifa.org/advocacy/federal-issues-positions/fiduciary-%28retirement-accounts%29

Everyone in the industry is – or should be – getting a pep talk from the trainer in their corner.

This is going to affect a lot of professionals who get up every morning, work hard and do a lot of good things for a lot of people. Yes, there are a few bad apples. But isn’t that true of every industry and human beings in general? Cable networks are flooded with “murder porn”…Wives With Knives, Nightmare Next Door, I Almost Got Away With It, Dateline, etc, and let’s not forget American Greed. And these people are the ones who got caught.

The point is, the industry already has a trust issue. People don’t like this business and have long been suspicious of the professionals in it. Truth be told, I was one of them. Years ago I was extremely reluctant to speak with any insurance or financial advisor. Why? I was certain they wanted to sell me something I didn’t need.

Times change. People change. And I have come to fully understand the benefit of these services and products. But, one reason the stereotype persists is that many advisors (continue to) lead with product. I know why they do it. Habits are hard to break and these folks are trained to death on “product” by product manufacturers and distributors. They are not trained on human behavior. The result? They will quickly, repeatedly offer the “solution” before that prospect or client has fully recognized there’s a problem to be fixed and who will be affected if they don’t. Human Nature 101: People only fix big problems.

Now, we’ve got the Department of Labor piling on and that’s going to amplify every suspicion. There’s a storm cloud gathering as well. Timothy Hauser, a deputy assistant secretary at the Labor Department said, the Department would closely monitor its implementation and welcomed feedback from the industry as the DoL has plans to publish further guidance on the rule’s nuances. That guidance may come on a rolling basis…

How many times can the industry get “tagged” and get back up off the mat? Not sure. What I am sure of is that the traditional solutions won’t work. This industry – insurance and financial services –  has to find a way to effectively counter punch. Clarify their message, improve their training and revise messaging to the field and public. Only firms with a nimble and embraced communication pipeline (that includes a robust audit trail for reporting) will stay ahead of the shifting sands of regulation.

There are tens of thousands of people, families, businesses that have benefited because some professional was articulate, honest and persistent enough to clarify the conversation, help their client understand and motivate them to take action. Nothing dishonest in that.

 

 

 

 

Um, Ya Know and Like

The three stooges of the American vocabulary and three of my least favorite words. Yes, “um” is a word. http://www.dictionary.com/browse/um

Every day – sometimes several times an hour – people repeat these words. It’s kids, adults and everyone in between although I don’t remember my Dad or Mom using them. There are individuals who gravitate to one word or another, but if they’ve got the addiction it can be incessant. Now I find myself hyper-sensitized to it. When I’m in a business meeting, on a conference call or listening to a presenter I’ll actually start counting. (Heck, I do it at home.) I know that’s not constructive but it becomes extremely distracting and even if the person has valuable input, it’s somehow diminished.

I’ve used these words myself but I am trying to make a concerted effort to permanently remove all of them. I read it’s much better to pause and say nothing; that way you make yourself think before you speak. (I’m not trying to promote any stereotype here but the word “like” is incredibly prolific with my daughter and her friends. They’ll say it two or three times in one sentence. So, I try to “help” her as much as I can. At least she’s aware.)

People who don’t include um, ya know or like in their conversations appear to be more intelligent. At least I think so. Their thoughts are organized, well thought out and communicated deliberately. That is an excellent character trait and a skill I am working to master. Speaking with clients, prospects or friends I’d like them to always hear what I’m saying minus any empty, repetitive, verbal noise. Can someone tell me if the same three words exist in other languages and if the problem is as prevalent? I’m curious.

Yes, I have watched Three Stooges’ episodes a 1,000 times (over many years) and will likely watch again, often laughing out loud. Their antics were designed to be entertaining. Um, ya know and like are not.

Belly to Belly

A very successful (insurance) advisor who works with business owners once told me, “I do my best work belly to belly.” He went on to explain that the case design he does can be complicated. There are frequently many individuals involved, a lot of moving parts, and to do it right it has to be explored, discussed and corrected in person. They identify problems and objectives together. People speak. People listen. It’s an efficient way to get things done. He’s 68 by the way.

Does this professional use email, Facebook, or text messaging in his business? I asked. Email, yes and text messaging with his children (even adult kids?) Yes. Who doesn’t do that? Often there’s a quick text to the wife from the airport too. But Facebook, getting “likes”, sharing vacation images, food, opinions, etc is not where clients have found him in the past and not where new clients are likely to find him in the future. If he goes on vacation and any clients are also his friends…he tells them. There is no Facebook, Instagram, Snapchat, or Pinterest in his particular business model. Does he carry a smart phone? Indeed, an iPhone 6. It’s not that he doesn’t embrace technology, he just keeps it in its place.

There’s something else he articulated without saying a word. Humans interact most effectively face to face. Reading body language, expressions or inflections in a person’s voice are things you cannot do electronically and it’s a talent I think too many people don’t appreciate or master. Why? They don’t spend any time doing it.

I’m not only referring to younger generation(s). This non-personal (incessant) communication addiction has infected adults and corporations as much as teenagers. How many times have you called someone and gotten a voice message. But, if you email that same person you get a quick response. Where are they? Is their phone broken? Are they sick?

We all know there are individuals in companies who sit down the hall from each other yet they’ll trade a thousand email messages but never pick up the phone or take a walk to an office or desk.

This all started gradually not that many years ago but the momentum has accelerated. There’s so many casualties of this technology/internet avalanche: people have forgotten how to spell, they use their phone while dining with others, in meetings, driving, walking…and they’ll likely take it to bed too.

That smart phone – with all its power – is useless when it comes to old fashion conversation.

Who’s Going to the Ball

This blog is personal. Been there. Done that. And proudly describe myself as a serial entrepreneur.

We’ve all seen or read about the twenty something who is instantly transformed into a billionaire. Maybe his or her company has an idea but no actual revenue model or profits (yet)…and sometimes that still doesn’t stop investors. It’s a Cinderella Story for sure. Yes, there are legitimate companies that have enjoyed a meteoric rise – and valuation – and do generate profits but that’s the exception not the rule.

The same scenario can be seen in sports, music, and Hollywood; although in some cases these individuals do sweat it out for years and against all odds, make it. Then we see them on TV, the internet and in movies. What we almost never see are the failures and there’s a lot more of them. But that doesn’t make for good headlines and nobody wants to hear about broken dreams.

No matter what the pursuit, all this aspiring talent has different companions along the way: a parent, coach, mentor, teammate, guitar player, agent, friend, etc. Some help. Some do not. It varies. But every entrepreneur gets special attention from the same two people. Loneliness and Doubt. These are the evil step sisters of the business owner. They know where you live, move in immediately and can be extremely attentive. So it’s a good idea to get comfortable with both of them right away.

There are other more supportive “members” of your virtual family. However, this basic lesson in sibling rivalry should be taught in every school in America. Not to discourage future employers, but a little dose of reality will help them (better) prepare and perhaps, endure. Small business is indeed the engine that drives the US economy but there are many casualties along the way and few accolades for those who fail.

So while you chase the dream, build your empire and do your best to ignore the two sisters… look for great employees, strategic partners, experienced advisors, and maybe even a fairy godmother, prince or princess. Their help could be key.

There’s some luck involved in building a successful enterprise. But integrity, ingenuity, hard work, perseverance, and careful planning might deliver the magic of achievement that may last long after midnight.

 

 

 

Unlikely Twins

A staggering 2.9 billion graphite pencils are sold in the US each year. http://pencils.com/the-myth-of-the-yellow-pencil/. My guess is a bunch of them are the standard Yellow #2 Pencil we all know so well. I wonder what happens to them? How many wear out? Break? Get lost? Or thrown away… They’re easy to replace that’s for sure. And they all do the same thing.

I think every professional in the insurance industry – out in the field and more important in the Home Office – should carry a Yellow #2 Pencil or keep it on their desk. Any brand will do. The same goes for advisors and staff at BDs, IMOs, FMOs, BGAs, ABCDEFGs. Why? Pencils are a commodity and so is insurance for the most part. This reality doesn’t show favorites. The Life & Health side has little or no advantage over the P&C world. But the industry doesn’t appear to pay real attention to facts, competition, aging producers, or compressed margins.

There’s another problem. In 2015, venture capital dumped $2.6 billion into the insurance space. https://www.cbinsights.com/blog/insurance-tech-startup-funding-2015/. That’s a 30% increase over the previous year. This money is driving the commodity engine a little harder and a lot faster; as technology continues to eat away at the human experience the insurance space looks yummy. I think a lot of people are happy “technology” can take them away from the stereotypical insurance agent. They can be annoying. Who wants to talk about insurance anyway?

Many people who come into the industry with the best of intentions quickly break, wear out or simply get thrown away. It’s hard work. And when you’re immersed in – focused on – “product” information, you lead with a product conversation. When you lead with the (traditional) product pitch you quickly appear skinny, tall, yellow…with a shiny collar and pink hat. A commodity. Easily replaced.

I suggest that the most effective training should begin with learning about human interaction. Not talk about it. Learn about it. Call it Human Behavior 101: Understand What Drives the Buying Decision. That curriculum is a far cry from the ubiquitous product propaganda. Understanding product detail and case design does require a lot of training and it is critically important, but that is not the foundation for success.

Executives who keep pencils in mind and re-think their training might accomplish what they need… top line revenue growth in a market crowded with too much noise, not enough talent and little differentiation.

With proper human behavior training, less pencils, I mean people, will wear out.