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Decision Vision Episode 59, “How Do I Work at Home Effectively?” – An Interview with Shane Metcalf, 15Five

April 9, 2020 by John Ray

Decision Vision
Decision Vision
Decision Vision Episode 59, "How Do I Work at Home Effectively?" – An Interview with Shane Metcalf, 15Five
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how do I work at home effectively
Shane Metcalf, 15Five, and Mike Blake, Host of “Decision Vision”

Decision Vision Episode 59, “How Do I Work at Home Effectively?” – An Interview with Shane Metcalf, 15Five

Because of “shelter in place” directives, millions of employees are now working at home for the first time and asking themselves, “how do I work at home effectively?” In this edition of “Decision Vision,” host Mike Blake explores various aspects of this question with Shane Metcalf, 15Five. “Decision Vision” is presented by Brady Ware & Company.

Shane Metcalf, Co-Founder and Chief Culture Officer of 15Five

how do I work at home effectively?
Shane Metcalf, 15Five

Shane Metcalf is the Co-Founder and Chief Culture Officer of 15Five. 15Five is a leading provider of people management software that not only guides employee growth and development but empowers people to become their best selves. Through strategic weekly check-ins, 15Five delivers everything a manager needs to maintain visibility and impact employee performance, including continuous feedback, objectives (OKR) tracking, recognition, 1-on-1s, and 360° reviews. 15Five is a top-rated performance management software on G2 and has won top culture and workplace awards, including ranking #3 Best Workplace in the nation on Glassdoor. Over 2,200 forward-thinking companies use the solution to bring out the best in their people. To learn more, please visit: https://www.15five.com/.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions, brought to you by Brady Ware & Company. Brady Ware is a regional, full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Michael Blake: [00:00:22] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Michael Blake: [00:00:40] My name is Mike Blake, and I’m your host for today’s program. I’m a Director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you like this podcast, please subscribe to your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Michael Blake: [00:01:05] This is the third of a sub series of topics regarding how to address the coronavirus process. And specifically, today, we’re going to talk about, really, sort of the front line end user, if you will, of remote work. And that is the employee themselves. We’ve had a show on managing cybersecurity risk by moving outside of the enterprise firewalls and into the home. And we’ve had a discussion on how to lead and manage teams remotely, but I think it’s important that we don’t forget about the fact that the vast majority of people who are impacted by working from home are the people who are actually doing the work themselves.

Michael Blake: [00:01:48] And as it happens, I happen to be somebody that’s been working from home more or less the last 10 years. So, from my perspective, I’m not necessarily noticing that much of a difference, but I know that from talking to other people and reading other people’s experiences, it’s actually been quite jarring. And I hope that this podcast will help serve as a field guide to help people make that transition more easily.

Michael Blake: [00:02:15] So, in spite of the fact that I’ve been working at home for a good amount of time, I certainly do not consider myself an expert on the topic. And as we always do in this podcast, we bring in an expert of our own. And joining us today is Shane Metcalf, who is the CEO and Co-founder of 15Five, which is a leading provider of people management software that not only guides employee growth and development, but empowers people to become their best selves. Through strategic weekly check-ins 15Five delivers everything a manager needs to maintain visibility and impact employee performance, including continuous feedback, objectives tracking recognition, one-on-ones, and 360 degree reviews. 15Five is a top-rated performance management software on G2, and has won top culture and workplace awards, including ranking number three Best Workplace in the Nation on Glassdoor. Over 2200 forward thinking companies use the solution to bring out the best in their people. To learn more, please visit www.15five.com. Shane, thanks so much for coming on the program.

Shane Metcalf: [00:03:19] Michael, thanks for having me. What an unprecedented moment we’re in. And I think that it presents a lot of real challenges. And I think it also presents real opportunities. And, fundamentally, I think that we, as a business community, we kind of need to take a note at Darwin’s book. We need to adapt. I think this is really happening. We don’t know how long this is going to be the case, but I do know that the world won’t be the same. Even if some of the social distancing protocols get lifted, and we’re able to return to offices. I really don’t think that we’re going to be seeing the world that we saw before.

Michael Blake: [00:04:00] So, before we get started, if you can comment because you’re in San Francisco, at least, the San Francisco area, and we’re in Atlanta. California is effectively on what we would consider a lockdown, is that correct?

Shane Metcalf: [00:04:13] Yeah, that is correct. Yeah, only essential businesses are open, and everyone is highly discouraged from leaving the house. So, yeah. I think we were in the first state in the nation to go towards this. And hopefully, it’s working. It does seem to be flattening of the curve.

Michael Blake: [00:04:28] So, from a personal perspective, what’s that like for you, sort of, day-to-day? Most of our listeners I don’t think are in California or, thank God, not in a lockdown state; although, we do have quite a few in Ohio because of our offices there. On a personal level, before we get into the interview, how are you dealing with that?

Shane Metcalf: [00:04:45] Yeah. Well, I have a somewhat unique circumstance. I, typically, would work in the office four to five days a week. And little contacts. So, 15Five, we’re a couple hundred people. And we’ve actually been a semi-distributed team from the beginning. We have about 50% of our people working out of offices in North Carolina, and New York City, and the Bay Area. And the other half are throughout different states and different countries in Europe. And so, in some ways, this has actually been a somewhat seamless transition for us because we already had the infrastructure and the mindset for working remotely. And I think that’s something that I’m going to get into because so much of working remotely, and being effective, and being a successful experience comes down to mindset shifts from both the employer and the employees. And for me, I was actually already at home for the last couple of months because I just had my first kid, and I’ve been on this blissful paternity leave. And I lead the company, and everything’s great, and I disappear, and the whole world falls apart. I’m like, “Man, I really should have stayed, I guess.”

Michael Blake: [00:05:51] Right. I leave for two months, and what happens.

Shane Metcalf: [00:05:54] Yeah, come on. But so, it’s an interesting one for me because there’s, of course, challenges and opportunities inherent to it for me because on the one hand, it’s really great because as I’m getting back to work, I get to stay home and spend more time with my daughter. I don’t have to waste the time of commute. I get to be there and help in between meetings. And on the other hand, that’s okay, not only am I not working from home, I’m also working from home with a kid and a screaming baby and all of the challenges that that presents. And so, it is a really fascinating balancing act. And I think that fundamentally, we need to have compassion and flexibility for all of each other right now.

Shane Metcalf: [00:06:39] And I’m speaking. A lot of my perspective is coming out as a founder, as an executive at a company that is leading and managing the team, but I’m also the employee. And really, I am more certain than ever that this is the opportunity we’ve been waiting for to bring those empathy muscles, those compassion muscles, that humanity that we have been talking about as an essential component to building great companies and to building great culture, this is the moment where the rubber meets the road because you look at Maslow’s hierarchy, everyone isn’t just focused on work right now. As much as we’d like to think that, “Okay, , great. Well, all my employees are now at home working,” and they just flipped off the humans switch and flipped on the employee switch. Now, people are are very concerned. They don’t know if they’re going to get laid off. They don’t know if the economy is going to recover. They don’t know if they have enough food. They are inundated with a lot of uncertainty right now. And so, we, as employers, can actually say, “Hey, we get it. We’re human too. And we recognize your humanity. And we’re in this together. And there’s space for all of it. And we can still be a high-performing team.”

Michael Blake: [00:08:00] Because there’s nothing quite like having to try to be productive when you’re literally in the middle of what might be a horror movie.

Shane Metcalf: [00:08:05] Yeah, you’re right. That doesn’t work. We need to actually — and that’s where I think companies can actually play a role is if you look at the triune brain, this idea that we have kind of three different brains. We have our reptilian brain, our mammalian brain, and our cortex, our human brain. And survival is happening in the amygdala, in the reptilian brain. And we need to recognize that, create a little space for people to have their feelings and to be seen in the process of this because when that happens, okay, cool. I don’t have to cover my ass and pretend that I’m not freaked out right now or pretend that I’m not like trying to jump, ditch out between meetings to run to Costco because I don’t have any toilet paper, And shit, there’s no more toilet paper at Costco. And oh, my God, what are we going to do? We need to have allowance for the entire human experience.

Shane Metcalf: [00:09:10] And there’s certain ways that I think we can actually structure that. But fundamentally, I believe that it starts with a shift in mindset where instead of making people earn trust, we grant people trust. We say, “We know what we need to accomplish as a company. I’m going to grant you the trust that you’re going to accomplish that. And I’m not going to be there looking over your shoulder. I’m not going to be checking your logs to see what you’re searching for on your computer, because that’s a big problem with people of the fear of allowing people to work remotely is, what if they don’t work? What if they just slack off? And that can be a corrosive to a remote culture.

Michael Blake: [00:09:58] Well, true; although, I would argue. I would argue that that attitude is corrosive, whether you have a remote working paradigm or architecture or not.

Shane Metcalf: [00:10:09] Absolutely, absolutely.

Michael Blake: [00:10:09] So, it’s just to amplified.

Shane Metcalf: [00:10:12] And that’s a cool thing is that, actually, this entire coronavirus thing is, it’s an opportunity for every single company in the world to upgrade their culture, to upgrade their value system, to upgrade the operating system with how they think about the people in their company, because you know what, this whole paradigm of human resources, just the words, my humans are our resources, they’re lumps of coal I’m going to throw in the furnace and get a little steam at it. And actually, we’re human beings. We’re fully fledged human beings with thoughts, feelings, emotions, fears, dreams, hopes, desires. And if we can start to actually recognize the humanity of our people in the workplace, pretty incredible things start to happen.

Michael Blake: [00:11:03] So, at the start of this conversation, you talked about the mindset. So, I’d like to start with that in terms of the formal kind of content here. And although it’s hard, I think it’s instructive. Put coronavirus aside for a second, because coronavirus or not, regardless of the circumstances, one day, you’re in the office; the next day, you can’t go in even if you want to. And you can’t go to Starbucks, you’re at home.

Shane Metcalf: [00:11:35] Well, lucky you if you can-

Michael Blake: [00:11:35] What mindset-

Shane Metcalf: [00:11:36] … go to Starbucks. Although, you can’t work at Starbucks.

Michael Blake: [00:11:39] Right. There, you can’t work there. Yes, you can get a coffee, right? But you can’t open up your laptop. I guess she could sit outside, but that would be weird. But talk about the mindset. As an employee, what is the mindset shift that you have to be prepared to embrace and pursue as you move from cubicle to home desk, or kitchen table, or couch, or wherever it is that you’re going to be working from?

Shane Metcalf: [00:12:05] Well, start by making a list of all the pros of working from home. Just get present to the reality of what the opportunity actually is. I don’t have to commute. I don’t have to deal with the crowded train. I don’t have to, you know, waste all that time. I get to not be less distracted. I have a higher chance of being able to enter deep, deep work flow states. I mean, open offices, it’s proven. It’s like they’re very economical, and they’re great for the social connections, but they are disastrous for deep work.

Michael Blake: [00:12:40] Right, they’re brutal.

Shane Metcalf: [00:12:41] Constant people flooding your space. And so, all of a sudden, “Ha! No one’s around. I can actually get some real work done.” And so, you have to make that list yourself. You have to personalize it. You have to look at, okay, look, this is a crazy situation, but what is good about this, and focus on the good. And then, the second thing is optimize your environment. Now, this is challenging. I mean, we have employees who — I have a — one of my guys is in New York City and in an apartment with three kids. A one-bedroom apartment with three kids or something. And there’s not really space for him to work at home. And so, those are challenging situations. And I have a lot of compassion and empathy for the people who don’t have home environments that are easily pivoted to being dedicated workspaces.

Shane Metcalf: [00:13:38] In those situations, I think that’s when you really want to start off utilizing technology – noise-canceling headphones. There’s a cool app that I’ve been playing around with, Krisp.AI. And it’s a noise canceling software. It’s not hardware, it’s a software that cancels all the noise coming from your background. Things like that are where you want to start optimizing the tools you’re using and the environment. For people who can create more of a home office space, optimize that. Create it. Put a little attention on it, clean it up, make it feel good. Our environment, that’s why we spend billions of dollars on designing cool office spaces is because our built environment affects our psychology. And so, don’t just neglect your home office.

Michael Blake: [00:14:35] There’s a variance in kind of cultural point, cultural in terms of American culture point that comes to mind just through this conversation. When I think Silicon Valley and I think California, I think of a mindset generally that looks at all disruption as an opportunity, right? And I don’t think everybody is necessarily hardwired for that. But I think it’s really interesting, the first words out of your mouth are not that this is going to be lousy but, rather, what is the opportunity this disruption provides? I think that’s really interesting.

Shane Metcalf: [00:15:11] Well, yeah. And I think that that’s part of what helps call the amygdala because we were in a fight or flight or freeze state, what we can start to do to shift, that is actually start focusing on what we’re grateful for. What is the positive element of that? And then, actually, start to change our brain chemistry. Now, know this from neuroscience, like, if you’re in a heightened state of survival, just saying, “I’m afraid, but I’m also grateful that I’m still alive,” or “I’m afraid that I might lose my job, but I also don’t know if that’s going to happen, and I’m grateful that I have a job right now,” it actually starts to change our neurology and opens up more creative thinking opportunities. And so, yeah. Look, this is an opportunity. I mean, there is an enormous hardship that we’re gonna be going through.

Shane Metcalf: [00:16:10] And what’s remarkable, it’s not just an American crisis. It’s not just an Italian crisis. It’s not just a Chinese crisis. It is a human crisis. I’ve never been alive in a time where all of humanity was experiencing the same collective crisis and that we actually took it seriously.

Michael Blake: [00:16:31] Yeah, nor have I. And I think you’d have to go back to the Cuban Missile Crisis. And that’s before, even a little before my time. But, yeah, I think you’re right about that.

Shane Metcalf: [00:16:39] And not just the potential of a crisis.

Michael Blake: [00:16:39] What-

Shane Metcalf: [00:16:44] And I mean, I do believe there is going to be enormous surge of companies that get created to fulfill the demands of this moment. And I mean, people are having to pivot their business models. And wait, this is more, I guess, from the entrepreneurial perspective, but there are enormous problems. And anytime there’s a problem, there are opportunities to build companies and products that service that problem.

Michael Blake: [00:17:13] What do you think is the most common misperception about working from home for somebody that hasn’t done it, really hasn’t experienced it? What do people perceive about working from home versus the reality?

Shane Metcalf: [00:17:27] Well, I think that people, when you’re confronted with that prospect of working from home that there’s gonna be no emotional connection to the other people in the company, that there’s not going to be any kind of the watercooler talk, just the random social interactions that really contribute to a sense of well-being at work. And now, that’s not necessarily the default, but what you can do is it’s not rocket science to start doing some social engineering to create opportunities for that kind of social interaction. Every Friday at our company, we do this thing called Question Friday. It’s never been more valuable. And what we do is we take a half an hour, everybody gets on a Zoom call, there’s a question master for the month, and they ask a kind of a random non-business related question, an ice breaker question. And then, we break out into Zoom rooms of 10 to 20 people each, and everybody goes around and answers.

Shane Metcalf: [00:18:28] And what’s so cool as you get this deep perspective. You learn about your colleagues at pretty deep levels. And all of a sudden, you’re actually having this human connection. And I would say that practice alone is one of the reasons why we’ve been ranked number three best place to work in the country by Glassdoor, that we do things to encourage the non-business-related human connection. And that’s more important than ever. We began all of our all-hands meetings with five minutes of every Monday, we do a five-minute gratitude meditation. Now, it’s not just immediately, “Okay, here’s the business numbers, people. Here’s how we’re tracking on our objectives.” That’s important too but, also, just a little little micro doses of connection that remind us that we’re actually all just human beings doing the best that we can.

Michael Blake: [00:19:28] So, you’re put in this position now as a remote worker. What of the most important habits that you need to focus on developing right away in order to make this a success?

Shane Metcalf: [00:19:40] Yeah. Well, look, don’t just throw your whole routine out the window now that you’re not coming into the office. Create a sense of, “Okay, great. Well, what’s my mornings look like? What does my morning practice look like? How do I get prepared for the day?” Don’t necessarily just wear sweat shirt, sweat pants, and t-shirts. Our clothing actually affects our psychology. So, put on a button up shirt, get dressed up, see how that actually changes your psychology around this. You want to ensure that there is an abundance of communication.

Shane Metcalf: [00:20:18] In the absence of information, people often go negative. When we aren’t hearing from each other, when we don’t know what we’re working on, without systems of accountability built in, it’s easy to just be like, “Oh, I don’t know if anyone is actually working.” And so, you want to create systems and processes that encourage an abundance of of good communication. And so, that’s where asynchronous check-ins come in, asking the questions like, “How are you feeling? What’s going well? Where are you stuck? What do you need help with?” is insanely valuable because it allows people to share their real experience and the truth of what’s actually happening for them – the wins and the challenges. And then, that allows for you to have really productive one-on-ones.

Shane Metcalf: [00:21:12] And I mean, also, I mean, there’s a lot of fundamentals. And what I would actually encourage our readers to do,w e just released an article that is everything we know about remote working, everything that we’ve learned in eight years of doing this and building an award-winning culture, and we’ve put that all into a pretty meaty medium article, and we can link to it in the show notes, but it has all of our best advice.

Michael Blake: [00:21:40] So-

Shane Metcalf: [00:21:42] Yeah. And other habits, I think that you want to engage in an appropriate amount of kind of — we use Slack and Zoom for everything. Like our three essentials are Zoom, Slack, and 15Five because that allows for video connection, which is really important, video over everything. Don’t minimize the phone calls. Turn on video for your calls. It’s really important to still see each other, to see that, yeah, I’m not just a disembodied voice. I’m actually the human. And the micro expressions that happen with the whole body. I mean, we know that something like 70% of communication actually happens nonverbally. And so, when we go virtual, we miss a lot of that. And video is the closest we can get to it until we have holograms or something.

Michael Blake: [00:22:37] Yeah, that’s a good point. Now, of course, one subtle but important difference in our current environment is that many remote workers didn’t necessarily work from home, right? And working from home is a subset of working remotely, but that presents its own kind of unique challenges, doesn’t it?

Shane Metcalf: [00:23:00] Yeah. Look, the home can be an non-predictable, and chaotic, and demanding place. I used to prefer not to work from home because when I work from home, it’d be like, “Oh, you know what, I got to take the trash out.” And my wife would be like, “Yeah, you’ve got to take the trash out, buddy.” I go, “I got to go do a little maintenance on that thing.” And there are a lot. There can be more distractions at home. And so, it, fundamentally, becomes also a process and a practice of self-discipline.

Shane Metcalf: [00:23:32] And so, if you can start to get clear, “Well, what does my ideal day of working from home look like?” and maybe that is that involves creating some — I don’t know if you can hear it, but my baby’s crying right now. And my kids are with my wife, and I can hear it, and I’m like, “Oh, man. Okay. I’m doing this podcast. And maybe the crying baby’s gonna get picked up by mic. And now, that’s on the recording of the podcast.” And you know what? I just have to be okay with that. Like we have to have a little more allowance for some of the unpredictable elements that get introduced to our business meetings. And being okay with a little bit more integration between the personal and the professional.

Shane Metcalf: [00:24:22] So, get clear on what you actually need to be productive at home. And part of this comes down to setting boundaries of saying, “Look, honey, I know that I’m home, but I’m not going to be able to help with the kids between these hours. Like, I need to go lock myself in the room and get into deep focus.” And so, personal discipline and boundary setting is more important than ever if we’re gonna be successful at working from home.

Michael Blake: [00:24:52] I think that boundary setting, I think that’s a really good point, that it’s worth pausing and spending some time on because it likely is also not going to be something that simply happens organically. If you just assume, “I’m gonna be okay, and the other person’s gonna be okay picking up whatever it is I’m not picking up. There’s no communication. That’s a recipe for disaster.

Shane Metcalf: [00:25:12] That’s expectations, which guarantee will lead to disappointment?

Michael Blake: [00:25:17] And I’m not putting myself in the position of a marriage counselor. I don’t want to put you in that position unless you want to. But it does sound to me like that needs to be a very intentional discussion in order for an arrangement to be tenable.

Shane Metcalf: [00:25:32] Yeah. Well, look, like at the office, we have, hopefully, a series of explicit agreements around how we’re gonna behave. If you’re going to go take a conference room, there’s usually a social agreement that you need to sign up for that conference room. Otherwise, there’s no guarantee you’re gonna get actually get it. There’s a social contract that you’ll clean your dishes after you use them in the office, things like that. There’s a multitude of agreements that we have in our working environments.

Shane Metcalf: [00:26:02] It’s no different at home. We need to take things out of implicit expectations and into explicit agreements with the other people that we live with or even with ourselves. Like I’m going to make an agreement that I’m not going to sleep in, and I’m actually going to get up, and I’m going to shave, and I’m going to get dressed, and I’m going to make my coffee, and I’m going to be sitting down at whatever hour, and start my day on a positive note.

Michael Blake: [00:26:35] So, one challenge, you sort of touched on this, but I want to hit it explicitly is, unless you happen to be like you or me, where we’ve had kind of this lifestyle for a while, your home isn’t set up to be an office, right? Like you said, homes are chaotic. And I think to my mind, my own personal experience, I never realized how chaotic home is until I actually worked here.

Shane Metcalf: [00:26:59] Yes.

Michael Blake: [00:27:01] You get a different perspective than if you’re just sort of home kind of part time, you sort of see how the sauces, and see all the answer [indiscernible], whatever analogy you want to have. So, I think many people then walk back into a chaotic environment. Are there any other tips you can think of that can help an employee kind of gain control over that chaos? You’ll never stamp all of it out but, at least, manage the chaos, so that you can get things done, meet your obligations professionally, and not lose your sanity.

Shane Metcalf: [00:27:38] Yeah. Well, look, I think that it starts with, well, what’s your vision for your home? I mean, this is a great opportunity for people to upgrade their home environments. If there’s a lot of chaos, well, what is controllable? Is it that you need to repurpose a room that’s, right now, used for something else and you say, “You know what, this is now my home office, and I’m going to paint the walls, and I’m going to go ask my employer if I can go steal a desk from the office and bring it home.”

Shane Metcalf: [00:28:09] And so, what you really want. Like, actually, open up in Word Doc, and write out a vision for what you want your home to look like, and what your experience of working at home can be. And then, come up with some strategies. Like vision and strategy. It’s no different than writing the business plan. Like, what’s the vision? What do we really want to create here? I want to have uninterrupted flow states at home. I want to feel good about the space that I’m in. I want a beautiful environment. I want to get the right technology. And then, my strategy is, “Okay, great. I’m going to go, I’m going to procure a desk. I’m going to borrow one from the office, or go get one myself, or order one. I’m going to set it up.” I mean, this this room I’m in, this is the first time I’ve set up. This is my home office. And I’m actually pretty stoked. I’m like, “Oh, wow, I’m digging this.”

Shane Metcalf: [00:29:08] And so, come up with this strategy. But again, work. Human beings are so incredibly resourceful and creative. And so, apply that, get to liberate because one of my big messages around culture is the culture happens regardless of whether you’re deliberate about it or not. And if you’re not deliberate about it, then it’s going to it’s going to reflect some of your worst unconscious habits and conditioning. If you’re deliberate about your culture, you have an opportunity to create something to reflect your highest values, your best self. And so, it’s the same thing with creating your home culture.

Michael Blake: [00:29:48] A great resource that if you need kind of ideas, and I have to confess, over time, I’ve become sort of addicted to this is, is there are desk setup tours you can see on YouTube where influencers talk about their workspaces, and they have envious — somehow you can’t see a cable, and I don’t know how they do that. They must spend weeks hiding cables, right? But they have beautiful spaces that are a joy to behold. And if you can kind of replicate that, it does become an island of serenity. You can get ideas through Pinterest as well, where people kind of put up their desks setups. And you don’t have to spend $25,000 to do that, but I’ve found that it does kind of give me some ideas in terms of placement and energy and-

Shane Metcalf: [00:30:32] All of that.

Michael Blake: [00:30:32] And even colors and lighting.

Shane Metcalf: [00:30:34] We don’t need to just be like, “Well, I’m working from home, so I’m going to just plop on the couch all day.” Actually, let this be inspirational. Get some inspiration. I love that. I’m probably going to, right after this, go look up to desk stories on YouTube. And yeah, like make this fun. I know that it’s hard to even think about fun right now, but if you can insert little bits of creativity, little bit of proactive creation, it goes a long way to feeling confident, and seeing the possibility in this crisis.

Michael Blake: [00:31:16] And it’s a sense of control, right? I mean, why are people buying toilet paper? They’re grasping for control. It’s not because we go to the bathroom more often, right? It’s a desperate attempt to grab control. And I found that if you can take this opportunity, as you’ve put it, to make a workspace kind of a home with a work home within the home, I found that helpful for myself as well, even though I’ve been doing this for a while, but as an opportunity to revisit this and kind of make it my own kind of mission control, it does give me some sense that I’ve turned this into an opportunity. So, I’ve taken command, at least, a little piece of the environment that I can control.

Shane Metcalf: [00:31:59] Absolutely, absolutely.

Michael Blake: [00:32:02] So-

Shane Metcalf: [00:32:02] The other thing I think that I want to mention, as an remote worker, I think that, often, the fear is will they know that I’m actually working? Do they trust that I’m being productive? And again, I’ll just reiterate that the communication, having some systems of structure and accountability that can create some transparency around what you’re working on really goes a long way for knowing that that you’re seen for the work that you are doing, and that’s where goal tracking, and check-ins, and things like that are super valuable in this process because you don’t just leave it up to chance whether your boss thinks you’re productive. You can actually communicate and demonstrate on a regular cadence.

Michael Blake: [00:32:57] I think one of the things that we touched upon is a little bit, but I think it’s important, one of the things that I think a lot of remote workers are now adjusting to, and myself included, because this has not been that big a part of the tech world, at least, where I am is webcams and video calls. And video calls have been the thing of the future since the 1962 World’s Fair with AT&T, and we’ve resisted, we’ve resisted. And now, everybody is now having to do it to some extent, right? It’s just unavoidable. And I think people feel a little bit uncomfortable. I don’t love it ’cause I consider myself very photogenic. So, I have to I have to kind of work on that emotionally. But as important now as those video cues are, we talked about dressing the part. You don’t just kind of walk around without pants, even if you’re just going to have a neck up view because you never know if you have to get up. And that could be uncomfortable for everybody involved.

Shane Metcalf: [00:34:06] Right.

Michael Blake: [00:34:06] What are the things you have to do to adapt to a video cam culture?

Shane Metcalf: [00:34:10] Yeah. Well, listen. Look, again, opportunity. This is a good chance to get better on video. This is a chance for all to work on whatever issues, whatever thoughts and things come up when we’re like, “Oh, I don’t really want people to see my house.” You know what? Clean your house up then. It’s like-

Michael Blake: [00:34:29] Yeah, you’re right.

Shane Metcalf: [00:34:31] It’s like uplevel your home experience. Comb your hair. And another really good trick is don’t just look at the face of the person on the video. Look at the camera.

Michael Blake: [00:34:43] Yeah, that’s hard. I’m struggling to do that right now because I have an over-sized monitor. But you’re right, it’s hard to do.

Shane Metcalf: [00:34:49] Yeah, it’s really tempting to think that I’m looking at you because it feels like I’m looking at you and I’m looking in your eyes. You’re not actually. Just practice looking at the camera when you’re speaking. And that can go a long way. And so, it’s these tricks of like, how do I actually turn this into a practice where I can get better at video? For personal use, I love the app, Marco Polo for mobile, and it’s just asynchronous video messages. And I love it because it’s great to stay connected with friends, but, also, it’s really good practice for how do you get better showing up on video?

Michael Blake: [00:35:30] Huh.

Shane Metcalf: [00:35:31] We all need to get really good if work — look, we know that communication, and presentation skills, and storytelling is one of the most valuable skills in business. We’re now entering a domain where all those things are still true, but we need to do it with the added complexity and added weight of transmitting that energy through video and audio. And so, it’s all just practice. Like we’re going to come out of the other side of this all way better at talking on video.

Michael Blake: [00:36:07] Yeah. And there’s good reasons to do that too. And it’s not just because more direct communication is going to happen on that but, also, video is becoming so important on social media now. And what some people do, I know that they’ve walked into this as rank amateurs but, now, they look like multi-million dollar productions out of the home studio.

Shane Metcalf: [00:36:28] Yeah.

Michael Blake: [00:36:28] And a lot of that, I think, is because, simply, they’ve practiced. How do you become a great chef? Make a lot of lousy food.

Shane Metcalf: [00:36:34] Yeah, right. Like, one time, a coach, and I was working with her on video, they’re like, “Look, the first hundred videos you make are going to suck. No way around it. But you got to do it. You’ve just got to put in the time, and put into practice, and look at yourself, cultivate a growth mindset around it, and just go forward. We can only go forward as a community. There’s no reverse. We need to just go forward. The past was what it was. And maybe we need to grieve the world pre-coronavirus. But then, we need to move forward. We need to pull up our big boy, big girl pants, and just accept that this is the new normal for now. And we don’t know. We don’t know how long. It could be summer. It could be next year.

Michael Blake: [00:37:25] So, what do you consider as kind of the most important tech that you can have in your house to give yourself or in your home to give yourself the best work-from-work experience and opportunity?

Shane Metcalf: [00:37:41] Well, I think that a good pair of noise canceling headphones is essential. Because of the chaos of home and same with an office, being able to block the world out and move into a more focused state whether with music or not, with music, with noise canceling headphones is really good. Zoom is awesome. Zoom, Eric Yu from Zoom is probably doing pretty well. And I’m sure Zoom is doing some pretty good business right now. And I know there’s some other video chat apps out there. We love Zoom. We use it. We’ve been using it for everything for a long time. And we’re continuing to use it for everything.

Shane Metcalf: [00:38:25] Slack or some other kind of chat app is really useful. And make it fun. Just stick to the facts. And that’s one of the big dangers of remote work, is that, “Okay. Well, I’m working remotely, so I just need to only focus on work.” No, bring in some of your personality. Throw in gifs, thrown appreciations, throw in just some of your own thoughts and reflections into channels like the Watercooler. We have a lot variety of channels in Slack. We have a gratitude channel where people just go in and post what they’re grateful for that’s connected to the Monday gratitude meditations that we do. The pets of 15Five, we have. And nothing is better than going and looking at your colleagues’ dogs and cats and goats. We have some goats in the family, which is pretty cool.

Shane Metcalf: [00:39:17] Okay, Zoom, Slack. And then, it’s not just a pitch of our product, but we really do rely on our own’s platform for the more structured asynchronous communication. Getting an insight into what’s really going on with people and being able to ask questions. Like I can go in, and I can ask a question for all 200 people in my company of, what are your biggest concerns around coronavirus. In a week or in a couple of days, I get all of the answers. And as the Chief Culture Officer of the company, I get to go through, and I get to read those, and I get to respond to them, and I get to have unparalleled access to the heart parts of my people, and what’s really going on, and figuring out how to problem solve, and how to be of service, and how to contribute to people that are struggling right now.

Shane Metcalf: [00:40:11] And then, another really important piece in in this moment right now is let people know they’re appreciated. We have a tool called High Fives in our app where every week, you’re prompted to give people high fives for contributions they made to you and for things that they did. And building that culture of gratitude and appreciation is the antidote to a culture of fear and stress.

Michael Blake: [00:40:44] The other benefit to headphones too is psychological. When you wear them, people are less inclined to bother you.

Shane Metcalf: [00:40:53] Yes, absolutely. It works.

Michael Blake: [00:40:55] Even if you don’t even have them turned on, people, there’s a barrier. Some people are happy to cross a barrier, but it does sort of preclude a lot of would-be interruptions.

Shane Metcalf: [00:41:06] I wonder if that holds true for spouses. If the spouse just doesn’t see that barrier.

Michael Blake: [00:41:12] Well, not not as much. And that’s the one issue I have with noise canceling headphones at home because if she is trying to get a hold of me, and I’m not hearing her, and she has to come down two floors to come find me, the cure may be worse than the disease in that particular case.

Shane Metcalf: [00:41:28] Yeah. I’ve been having that same thought of like I’d love to put on my headphones right now. But then, I’m not going to be able to hear the baby cry while mom is trying to get some R&R. Then, I’m going to be in trouble. So, I’m going to just go with low volume air pods today.

Michael Blake: [00:41:42] Yeah, I think you have to live with that. That’s good. I know you’re a rookie father, but you’re obviously catching up quickly. So, good for you. Any other advice you could offer that we haven’t covered yet? I want to be respectful of your time. So, we only have another couple of questions ago.

Shane Metcalf: [00:41:58] Well, listen, I think that we do need to be looking at the opportunities here that, yes, this is a very serious crisis that humanity is facing, and there is opportunity to upgrade the operating system. We can build healthier cultures where we’re valued and respected as human beings, not just as resources. We can build cultures where we grant trust and freedom; where instead of saying you need to be in the office all the time, we’re saying, “Hey, actually, as long as you’re getting your work done, we’re going to loosen some of the chains around how and when you need to work. We’re going to start granting more autonomy.”

Shane Metcalf: [00:42:44] And if you look at the research on the difference between intrinsic and extrinsic motivation, one of the highest intrinsic motivators is autonomy. It’s feeling like I’m being given the autonomy to get the job done in the best way that I see fit. That doesn’t mean that we can’t get coaching, and support, and that accountability, but if we were never given autonomy, were leaving money on the table. And look, like, it’s not like there isn’t room for improvement in the global workforce. 70% disengagement. What if this is one of the things that we discover is, actually, we can start to flip that. So, it’s 70% engagement. That’s our vision of the world is that companies start to seek out building high performance by helping people become their best selves, by tapping into intrinsic motivation, by tapping into psychological safety. Yeah, I mean, that’s a whole other conversation that we need to be having right now is, how do we create high psychological safety amidst times of great uncertainty?

Michael Blake: [00:43:56] Shane, this has been great. It’s terrific to have an opportunity to have an expert of your profile here on this program. I’m sure people have a lot of questions we have not been able to cover. How can they contact you if they want some more advice? Maybe they just want to learn more about your 15Five platform.

Shane Metcalf: [00:44:16] Yeah. Well, listen, you can go to 15Five.com. That’s 15Five.com. You can also check out the resource, the medium article, where we lay out everything we know about remote working. It’s a 37-minute read. It’s not a snack, it is definitely a meal, but it really gives you a ton of our best practices for building high-performing remote teams. Follow me on LinkedIn too. I’m pretty active on LinkedIn. I’m posting videos and content there pretty regularly. That’s the best place to find me.

Michael Blake: [00:44:52] Well, that’s going to wrap it up for today’s-

Shane Metcalf: [00:44:54] One other thing. We are giving away 15Five to two teams of under 50 people until, I think, some time something like mid-June or something. We want to support people in this transition. And so, we are giving the product away for free for now.

Michael Blake: [00:45:12] Okay. Well, I might check that out. Our Atlanta office has exactly 39 people. So, we’ll qualify for that.

Shane Metcalf: [00:45:18] Excellent. Excellent. Yeah. Well, and I’d love to hear what you think because part of how we’re also thinking about this is, “Okay, cool. We know that our platform supports virtual teams really well. But how can we innovate? How can we listen to what is needed? And then, build products and services.” And that’s what I think everyone should really be thinking about. Don’t just operate on the same mindset that you were two months ago. Think about what has changed. How can I actually create value for this new world that we’re in?

Michael Blake: [00:45:56] So, that’s going to wrap it up for today’s program, I’d like to thank Shane Metcalf, who’s Chief Culture Officer – I said Chief Operating Officer before. That was a mistake – Chief Culture Officer and Co-founder of 15Five so much for joining us and sharing his expertise with us today. We’ll be exploring a new topic each week. So, please tune in, so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy this podcast, please consider leaving a review at your favorite podcasts aggregator. It helps people find us, so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision Podcast.

Tagged With: Brady Ware, Brady Ware & Company, Michael Blake, Mike Blake, Shane Metcalf, work at home, work at home effectively, workplace culture

Decision Vision Episode 58, How Do I Manage My Work at Home Employees? – An Interview with Bruce Tulgan, RainmakerThinking

April 2, 2020 by John Ray

manage work at home employees
Decision Vision
Decision Vision Episode 58, How Do I Manage My Work at Home Employees? - An Interview with Bruce Tulgan, RainmakerThinking
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manage work at home employees
Bruce Tulgan, RainmakerThinking, Inc.,

Decision Vision Episode 58, How Do I Manage My Work at Home Employees? – An Interview with Bruce Tulgan, RainmakerThinking

The question of “how do I manage work at home employees?” has suddenly been thrust upon them of the workplace disruption caused by the coronavirus pandemic. In this edition of “Decision Vision,” host Mike Blake explores various aspects of this issue with Bruce Tulgan, RainmakerThinking. “Decision Vision” is presented by Brady Ware & Company.

Bruce Tulgan, RainmakerThinking, Inc.

manage work at home employees
Bruce Tulgan, RainmakerThinking

Bruce Tulgan is an adviser to business leaders all over the world and a sought-after keynote speaker and seminar leader. He is the founder and CEO of RainmakerThinking, Inc., a management research and training firm, as well as RainmakerLearning, an online training resource. Since 1995, Bruce has worked with tens of thousands of leaders and managers in hundreds of organizations ranging from Aetna to Wal-Mart; from the Army to the YMCA. Bruce is the best-selling author of numerous books including Not Everyone Gets a Trophy (Revised & Updated, 2016), Bridging the Soft Skills Gap (2015), The 27 Challenges Managers Face (2014), and It’s Okay to be the Boss (Revised & Updated, 2014). Bruce lectures at the Yale Graduate School of Management, as well as other academic institutions. He has written for the New York Times, the Harvard Business Review, HR Magazine, Training Magazine, and the Huffington Post.

Since 1995, Bruce has worked with tens of thousands of leaders and managers in hundreds of organizations. In recent years, Bruce was named by Management Today as one of the few contemporary gurus to stand out as a “management guru” and he was named to the 2009 Thinkers 50 Rising Star list. On August 13, 2009, Bruce was honored to accept Toastmasters International’s most prestigious honor, the Golden Gavel. He lives in New Haven, CT with his wife Debby Applegate, Ph.D., who won the 2007 Pulitzer Prize for Biography for her book The Most Famous Man in America: The Biography of Henry Ward Beecher (Doubleday, 2006).

For more information, you can follow Bruce on Twitter or go to the RainmakerThinking website.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:25] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ respective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:43] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:10] So, this is the second of a sub-series of topics regarding how to address the coronavirus crisis from the executive decision makers’ perspective. And in our last discussion, we heard from Justin and Jody Daniels, who talked about the unique challenges that we confront in terms of data security and privacy when we move en masse to a remote working environment. And today, we’re going to move to the issue of management and leadership itself from a remote management environment.

Mike Blake: [00:01:46] So, full disclosure, I’ve been working largely from my home for the last 10 years or so. So, as it turns out, I’m kind of used to this thing. This whole virus has forced me into something that I would prefer to do anyway. The one thing that I had to learn as I did this is I learned that I had—not just to work differently, but you also have to manage differently and lead differently because that physical space means something.

Mike Blake: [00:02:17] The technology that has evolved over the last 25 years that enables us to work well remotely is of a blink of an eye in comparison to the evolution of humanity that makes us want to be together in the same cave, in the same herd, in the same hunting group, in the same tribe that makes us work together, build together and grow together. And if you are somebody who is suddenly thrust into the necessity to manage teams remotely, maybe you’ve even been opposed to them, maybe you’ve been a person that really has believed in face time, and you’re a person that really thrives on that needs, that craves, that personal connection.

Mike Blake: [00:03:04] With all that’s been written to tell employees how they can transport their jobs home, I don’t think enough attention is given to the managers and leaders that suddenly have to figure out how to lead when they can’t even, in many cases, see the faces of the people that they’re leading and don’t have the same nature of contact. So, I think this is a very interesting topic. We’re going to get into the weeds here. And I hope that if you’re in the position of being a manager or leader that is thrust into this unprecedented scenario, that this topic is going to be helpful.

Mike Blake: [00:03:42] So, joining us today is a great expert on this topic. Bruce Tulgan is CEO of Rainmaker Thinking, a research, training and consulting firm in New Haven, Connecticut and Rainmaker Learning, an online training resource. He is internationally recognized as one of the foremost experts on leadership and performance management in the workplace. Bruce is the author or co-author of 20 books, including his best-selling It’s Okay to Be the Boss, The Classic Managing Generation X, that’s me; his popular, Not Everyone Gets a Trophy, How to Manage the Millennials, and The 27 Challenges Managers Face: Step-by-Step Solutions to Nearly All of Your Management Problems.

Mike Blake: [00:04:23] His newest book, The Art of Being Indispensable at Work is due for release in the summer of 2020 from Harvard Business Review Press. Bruce’s work has been the subject of thousands of news stories around the world, and he has written for The New York Times, USA Today, Training Magazine, HR magazine and the Harvard Business Review. Bruce also lectures regularly at the Yale School of Management and other business schools. Bruce holds a six-degree black belt, and I hope I’m pronouncing this correctly, in Uhuru Karate.

Bruce Tulgan: [00:04:52] Yeah, you can just say karate.

Mike Blake: [00:04:53] Okay. Making him a master in that style. Interestingly enough, his wife, Debby Applegate, won the 2007 Pulitzer Prize for her book, The Most Famous Man in America about the 19th Century Mr. Henry Ward Beecher. Bruce, thanks so much for coming on the program.

Bruce Tulgan: [00:05:11] Well, thanks so much for having me. That’s quite an introduction. Thanks for mentioning my latest book.

Mike Blake: [00:05:18] Well, you know, I have some books in me that I need to get out. And I’m so admiring of people who have managed to do that. And I think a lot of that is ruthless time management. And we’ve actually had somebody come on the podcast, be ready, talks about should I write a book, how to do it, et cetera. So, I won’t pepper you with questions that are off-topic about that. But I must express that the fact you’ve been able to create so much thoughtful content, well done to you, sir.

Bruce Tulgan: [00:05:47] Well, I’m doing my best. If anyone who wants to write a book, I always recommend, our agent has a great book called Thinking Like Your Editor. Her name is Susan Rabiner. That’s a book worth reading.

Mike Blake: [00:05:59] And I’m going to make a quick note of that, so everybody on the podcast world can just wait for a second. I’m going to write that quickly. There you go. So, before we get started, I’m curious, you’ve created so much content, you have a book that, is it coming out later this year? Yeah.

Bruce Tulgan: [00:06:21] Yeah. It’s coming out-

Mike Blake: [00:06:21] Due later this summer.

Bruce Tulgan: [00:06:22] It’s coming out in July if there’s still a world.

Mike Blake: [00:06:26] Oh, there will still be a world, whether anybody reason it or not, we’ll see, but there’ll be a world for sure. But my question is, what do you think the next book after that will be?

Bruce Tulgan: [00:06:37] Well, I’m not sure. You know, the book that’s coming out in July, it’s called The Art of Being Indispensable at Work, and it’s about how to handle the incredible pressure that everybody has been under. Everyone’s been so overcommitted, scrambling and trying to manage relationships up, down, sideways and diagonal. That’s what the book is about. And we’re always doing research on the front lines in the workplace, and we’re always trying to figure out, you know, what can we glean from the research that could be a value add for folks. So, I’m not sure what will come next.

Mike Blake: [00:07:17] Okay.

Bruce Tulgan: [00:07:17] Maybe How to Manage Remotely.

Mike Blake: [00:07:21] Maybe. I have a feeling that book would do very well.

Bruce Tulgan: [00:07:24] Yeah.

Mike Blake: [00:07:24] So, we’re all sort of sailing along and all of a sudden, we have run into a hurricane that nobody really—I guess some people saw it coming, but most of us sort of person on the street really didn’t see it coming. I don’t think we saw it getting to this point. How do managers themselves ground, right? Because if if you’re freaking out, if you’re losing it, it’s really hard to lead others and be a source of stability and safety unless you, yourself, ground, right? So, how do you do that when you feel yourself like you just want to throw your hands up and run in a circle screaming?

Bruce Tulgan: [00:08:02] Yeah, I think you’re—that’s very true what you’re saying. You know, I always say to people the first person you have to manage every day is yourself. And sometimes, when we’re doing leadership seminars, you know, it takes a little while for somebody in the room to have the guts to say what you just said. Because that’s the sort of acknowledgement of the human element. You know, people are feeling so out of control right now. When you’re operating in an environment of uncertainty, it’s really a feeling of a lack of control.

Bruce Tulgan: [00:08:40] And so, what I always say to folks is, remember, if you focus on what you can’t control, then you render yourself powerless by definition. So, the first thing you have to do is focus on what you can control, and that’s you, and try to help your people stay focused on what they can control, and that’s them. But I think the most important thing is to be authentic, and don’t pretend. It’s natural to be worried right now. It’s natural to be uncertain. It’s natural that people are feeling out of control. But it’s also the case that somebody has got to be in charge. In this case, that’s you, and people need you now more than ever.

Mike Blake: [00:09:27] Yeah. And there’s no playbook for this, right? There’s practically nobody alive who remembers the influenza outbreak of 1918, right? And certainly, nobody in a decision-making capacity. And, you know, I want to ask you about 2008, and even back to 2000 with the first dot-com crash. What are the parallels with then and now? And then, what’s also a difference?

Bruce Tulgan: [00:09:56] Yeah, I mean, the parallels, of course, are that people are genuinely worried about their livelihoods. If you remember the ’90s, as you and I do, maybe not everyone listening, some people are in the third grade or whatever.

Mike Blake: [00:10:09] They’ve read about it.

Bruce Tulgan: [00:10:10] Right. But back in the ’90s, you know, it was peace and prosperity, magical business models, a foosball table in every teeming space, remember? And then, all of the sudden-

Mike Blake: [00:10:22] The classy office space in Manhattan, that’s what I remember.

Bruce Tulgan: [00:10:25] Right. And then, you know, everything’s going to be great. And then, no. Boom. All over. Never mind. Crash. Everything’s terrible. And then, quite literally, crash because, you know, 9/11 followed right on that. And so, for a long time, I mean, I think 9/11 is a better parallel just in the economic crash because people were so scared. You know, an economic crash is frightening. It has a huge effect on people. You know, some people, they live paycheck-to-paycheck. Many people do. They’re worried about feeding their families. What am I going to do? And so, not to minimize the concerns about economic frailty, but I think, you know, after 9/11, people thought, “Well, gee, are terrorist attacks going to happen all over the place now?”

Mike Blake: [00:11:22] Yeah.

Bruce Tulgan: [00:11:22] Well, I can remember the anthrax scare happened shortly after that.

Mike Blake: [00:11:27] Yeah.

Bruce Tulgan: [00:11:27] And so, when people are genuinely afraid for their safety and the safety of their loved ones, I think, you know, it’s more like a war, but it’s like a neutron bomb, right? Because it’s just poison. And so, 2008, ’09, ’10, I mean, it seemed like, gee, maybe we’re heading for another depression. But of course, it turned out that the economic system was more resilient with the help of a government bailout. And of course, now, the government has all of a sudden found a couple of trillion dollars that didn’t—you know, there it is, yeah, here we go. No problem. Here’s a couple of trillion dollars.

Bruce Tulgan: [00:12:18] But the problem now is that it’s not just financial. I don’t think anyone’s ever seen anything like this. I mean, I don’t know what to do. And so, what I’m doing is every single day, I’m thinking, okay, how can I make myself stronger? How can I make my mind stronger? How can I make my body stronger? How can I make my spirit stronger? And then, what can I do to add value for someone else? And first and foremost, what can I do to add value for my family?

Bruce Tulgan: [00:12:54] Second, what can I do to add value for my team, the people who are part of my business who rely on me? And then, what can I do to add value for my clients who rely on me for advice? And, you know, every day, that’s what I’m trying to do. I’m just trying to focus on what I can control and what I’m trying to help my team focus on what they can control. And that’s the advice I’m giving to my clients is, what is not going to change your mission and your values? And what can you control today? You set yourself up for success and set your people up for success. And I don’t know what else we can do.

Mike Blake: [00:13:49] I think you’re right. I think that the ’01, September 11th is actually a more apt analogy because there’s an ambient fear. There’s an environment around that is not just economic, and at least there for a week, everybody, everything sort of shut down, right?

Bruce Tulgan: [00:14:10] Right.

Mike Blake: [00:14:10] And we had to—everything was outside of our comfort zone. It wasn’t just being unemployed. It was everything, how to keep yourself safe, right? And now, we’re outside of our comfort zone because we’re probably having to take care of ourselves medically in a way that we might not necessarily do. In my case, I have a nine-year old, so I have to learn how to home-school on the fly, and his teachers need to learn how to home-teach on the fly. And I have team members that have home-schooling obligations now, and I’m trying to balance that.

Mike Blake: [00:14:48] And you’re right. I think there is that difference, and at least one way I respond to it is I try to keep a wave of empathy up as much as I can. I don’t know if that’s the right thing. I’m curious if you agree with that, but everybody right now is frazzled, and we’re only one week into this in most states. If this continues through Easter or later, I’m not sure that I agree this is going to be over by Easter. People are going to get frazzled and frayed and really stretched to their limits and they’re going to rely on us more than ever to be that rock of stability.

Bruce Tulgan: [00:15:26] Yeah. I mean, I’m glad you used the term empathy. I think sympathy and empathy are both—you know, I’m somebody who often tells business leaders, look, it’s not your job to be somebody’s pastor, their best friend, their therapist, and you’re not qualified to do that. But wow, this is really bringing the human element to the fore in a way that is different. When I’m out, I was out yesterday running in the neighborhood. And, you know, it’s so odd.

Bruce Tulgan: [00:16:05] You see people out there, they cross the street, you know, and if they don’t, then you cross the street or I cross the street like you don’t—you know, when you look at them and you sort of nod and smile, and then nobody takes offense, it’s just sort of, yeah, wow, you’re out here being a human being and we better steer clear of each other, and it’s just so peculiar. So, I think, you know, I say that because I was trying to think of my own moments of empathy in the last 24 hours, and I had that gut feeling of yeah, of course, you’re crossing the street because you don’t want to be infected by it.

Mike Blake: [00:16:49] Or they don’t want to infect you.

Bruce Tulgan: [00:16:51] Right. Right. Right. Exactly. Exactly. Exactly.

Mike Blake: [00:16:54] So, now, this environment as a manager and as a leader particularly remotely, does that force us to kind of change our priorities, right? I think you’re an advocate of something called a stop, start and continue list, which I think is a priority set.

Bruce Tulgan: [00:17:12] Right.

Mike Blake: [00:17:12] How do you reformulate that, you know, now that the martini’s been totally shaken?

Bruce Tulgan: [00:17:18] Yeah. I mean, well, one of the things that I’ve been doing is looking at our research on organizations where uncertainty is a regular part of their day-to-day routine. So, we may be facing uncertainty today in a way on a wholesale level that none of us are accustomed to. But there are a lot of people who, what they do for a living is they manage uncertainty. And so, the sort of pillars are every day, you say, all right, what are our anchors? What’s never going to change as far as we can tell?

Bruce Tulgan: [00:17:52] And then, what’s changing right now? And how do we adapt? And the way we adapt in the moment is, what are we going to stop doing? What are we going to start doing? What are we going to continue? And it’s just a very quick reset in terms of your daily execution priorities. And, you know, in downtime, what organizations do and what people do who have to be accustomed to uncertainty, in downtime, what they do is they try to anticipate contingencies and prepare for them and prepare their people for them and even scrimmage or drill on those contingencies.

Bruce Tulgan: [00:18:37] But what most uncertainty masters know is that they’re going to run into things they didn’t anticipate. So then, they extrapolate from that stuff. But, you know, it’s one part anticipate and prepare. And it’s one part adjust in the moment. And adjust in the moment, it’s like today, what are we going to stop doing today? What are we going to start doing? What do we need to continue? And how do we proceed on that?

Mike Blake: [00:19:13] And part of that adjustment, too, is it also kind of understanding part of that empathy, I guess, but also understanding that the employees are undergoing massive adjustments, too? Learning how to work—you know not everyone wants to work from home. Not everybody is in a great environment to do that. You may have an employee that is great at work, but then they go home and they’re a young married couple with a kid in a one-bedroom apartment, and then trying to work in that environment, right? I mean, you can imagine how emotionally and intellectually challenging that is. I think we kind of have to make leeway and allowances for that, too, right?

Bruce Tulgan: [00:19:54] My advice there is a blanket fort.

Mike Blake: [00:19:58] For you or the kid?

Bruce Tulgan: [00:19:59] Well, yes. But, you know, I often joke that, you know, people until recently, they want to work from home because the dog gets lonely at home and they want to be there with the dog or, you know, the kid or whatever it is, they want to be able to do their laundry. You know, some people, they’re accustomed to having a routine for working at home. But what I always tell managers is yeah, you need to manage yourself. You need to figure out what your routine is going to be, and then try to talk through with your people, “Hey, what’s your routine going to be?” And you have to be a little bit careful because, you know, some people will be—they think it’s a snow day.

Mike Blake: [00:20:51] Yeah.

Bruce Tulgan: [00:20:52] So, we’re just on hold. And so, you have to talk him through that. No, we’ve got to stay focused. We’ve got to get stuff done every day. And it may be very different stuff than what we’ve been getting done in the past. Some of it’s going to continue. There may be new stuff we have to do. I mean, I’m in the business of going around to auditoriums packed full of people and speaking from a stage. I saw hot air to rooms full of people. You know, how’d you like to be in that business, right?

Bruce Tulgan: [00:21:28] So, you know, okay, we need to get really good at doing webinars, I guess. And so, that’s something we’re going to start doing. What am I going to stop doing? Going to the airport, at least for a while. What am I going to continue doing? Interviewing people, studying the data, trying to glean insights and trying to find good ways to share those insights with our clients. So, everybody, that formula is going to be different for everybody.

Bruce Tulgan: [00:21:58] But I think one of the common denominators that we’re all grappling with is doing this in our shelter in place. And as you say, some people, their shelter in place is more amenable or less amenable to work. You know, look, even—the reality is a lot of people in the workplace, they get interrupted all day long. A lot of people in the workplace, they don’t have a moment for focused execution. I mean, some people come in at 5:00 a.m. or they stay into the night or they say, “When I go home, it’s the only time I get stuff done.”

Mike Blake: [00:22:32] Right.

Bruce Tulgan: [00:22:35] So, whether you’re in the workplace or at home, you need to set yourself up for success. That means every day, you need to choose your execution priorities. It means you need to make time for structured communication. Who do I need to talk with today? It means you need to have good conversations and document those conversations. And you need to make time for focused execution, for getting stuff done. And that’s true whether you’re a leader, manager, supervisor or whether you’re an individual contributor.

Bruce Tulgan: [00:23:11] But if you’re a leader, manager, supervisor, then other people are looking to you to make decisions. Other people are looking to you to help set priorities. Other people are looking to you to solve the resource needs. Other people are looking to you to problem-solve. Other people are looking to you for guidance and direction and support. So, you know, I think leadership matters. And I think it’s a contact sport. And boy, it just got a lot harder because the only points of contact now we’re going to be through Facetime or email or telephone.

Bruce Tulgan: [00:23:56] But, you know, as you say, empathy, you’ve got to put yourself in the position of the people who are counting on you and try to ask them, “Hey, you know, do you have the space where you can work? Do you have a routine? How are you going to set your hours?” You’ve got to give people some real flexibility. “When are you going to do your job? How are you going to do your job? You know, what challenges are you facing? What do you need from me?

Mike Blake: [00:24:27] Yeah. And I think that last point, you know, I think, resonates because that puts you in a position of being a resource, which in my view, philosophically, is the role of a leader is to be a resource. And in that vein being a resource, you touched upon this a little bit, but I do want to hit this, some people are going to handle this environment better than others. Some people are going to have a really hard time simply being cooped up. Some people are going to have a hard time being cooped up with their family. Some people are going to have a hard time just simply having the background noise and a running tally saying, “Five more people got infected, one more person died”, right? And so-

Bruce Tulgan: [00:25:13] You know, that’s so true.

Mike Blake: [00:25:16] It’s like-

Bruce Tulgan: [00:25:16] That last part-

Mike Blake: [00:25:17] … living in a horror movie, isn’t it?

Bruce Tulgan: [00:25:19] Right. It’s like a movie.

Mike Blake: [00:25:22] Except there isn’t some closet that you know that you shouldn’t open. That’s the problem, right?

Bruce Tulgan: [00:25:29] Yes.

Mike Blake: [00:25:29] So, some people are going to handle that better than others. And when people are going to handle it as well, it doesn’t make them bad, that just makes them human beings. Not everybody was born to serve in a nuclear submarine and be in a two-year mission under the Arctic Circle for a while, right?

Bruce Tulgan: [00:25:43] That’s for sure.

Mike Blake: [00:25:44] But in spite of the fact that, you know, we’re not meant to be their advisers, their best friends, their pastors or counselors, we are going to have more contact probably with our teammates and most of the outside world well. And so, does that give us as leaders and as managers a special responsibility to kind of be on the lookout for signs that somebody may be weathering the storm not as well as others? And if so, is there something that we can do to inquire and offer a hand without being intrusive? Does that question make any sense at all?

Bruce Tulgan: [00:26:21] It does. I mean, look, this is true. If the person’s in the cubicle next to you, you look at somebody and they look tired or they look bad or they look scared or they look, you know—and you have to want this fine line of being human and being prepared to make accommodations for people if they need them, but also recognizing that, you know, some stuff is none of your business, and you’re not qualified to deal with that. I mean, look, one of the things I say to business leaders is, sure, if you can see that somebody is struggling personally, the question you have to ask yourself is, do you have resources to make available to that person? Now, sometimes, you are that person’s friend. My view is if you’re somebody’s boss, and you’re also that person’s friend, that’s a complication that you have to navigate.

Mike Blake: [00:27:18] Yeah.

Bruce Tulgan: [00:27:18] And so, maybe what you say is, “Hey, after work, let’s go out for a soda.” Right now, it’s after work, “Let me call you and we’ll have sodas in our remote locations and talk about it”, or something. But somehow, to try to recognize that it’s a different role. Being your friend is a different role than being your boss, being your leader, your manager, your supervisor. And I agree with you. Being a resource is a big part of it.

Bruce Tulgan: [00:27:49] Look, I mean, what a lot of managers are worried about right now is not necessarily the emotional well-being of their people. It’s gee, they’re at home, well, how do I know they’re working? And that’s the other side of the equation. It’s like the policing part. And I always say to leaders, look, you know, if somebody’s sitting in a desk during certain hours where you can see them, that’s place and time.

Bruce Tulgan: [00:28:18] That’s actually a lazy measure of performance, that if you’re a good leader, manager, supervisor, you shouldn’t drill them down anyway, and, you know, figuring out if they know what to do, if they know how to do it, if they’re producing, if they’re getting stuff done at a good rate of productivity, if they have good quality, you know. And so, if you’re in a remote location, you can’t see the body in a chair during certain hours.

Bruce Tulgan: [00:28:56] You know, maybe that’s going to help you get to be a better manager. And what you need to do is try to help people use their work time to succeed. So, yes, some people are going to be going stir crazy. Some people are going to be feeling scared. Some people are going to be distracted. Help them stay focused on doing one concrete thing at a time. And the good news is, you know, you don’t need to be a police, you don’t need to be policing people.

Bruce Tulgan: [00:29:28] Helping them be effective and get stuff done and stay productive and keep adding value is healthy. And it is a much more appropriate role for a manager. Sometimes, the best thing you can do if somebody is going stir crazy at home or if they’re having a hard time being effective at home is help them be more effective at home, help them be more effective and get more done, then they’ll have something to feel good about today.

Mike Blake: [00:29:57] You bring up a couple of interesting points that I want to go back and hit on because I think they’re so important and I think they’re so insightful. One, I do think there is an opportunity here for all of us to become better managers. And you’re right, this seeing a butt in the cubicle is not a measure of value unless the value that you have is to be able to survey your empire, right? If that’s your source of value, then I guess yeah, I see that, right? But if you haven’t been able to measure productivity already, then this is a great opportunity to force you. Like just in the old days, you and I are—I won’t say you. I’m old enough, and I remember taking typing classes in high school.

Bruce Tulgan: [00:30:44] I did. I did. I did.

Mike Blake: [00:30:46] And they would give you a little piece of cardboard over the keyboard so you couldn’t actually see your fingers, right?

Bruce Tulgan: [00:30:51] Yeah.

Mike Blake: [00:30:51] And I knew if I was type on the right thing because I saw it on the piece of paper.

Bruce Tulgan: [00:30:55] Yeah.

Mike Blake: [00:30:55] It’s on a real typewriter, right?

Bruce Tulgan: [00:30:57] Exactly.

Mike Blake: [00:30:58] That’s the way that we have to manage now. And I think that’s actually a good thing. That’s going to force us to develop that muscle.

Bruce Tulgan: [00:31:10] Yeah, that’s huge. I mean, look, I say to managers all the time when they said, “Oh, well, you know, people want to work from home” or, you know, they’re worried about people who want flexibility, right?

Mike Blake: [00:31:22] Right.

Bruce Tulgan: [00:31:22] Until a few weeks ago, this was, people want flexibility and managers were worried that if they’re not in a certain chair during certain hours, that they couldn’t manage them. And one of things I like to do with a group of managers is say, “Okay, show a hand. What’s more valuable to you? Somebody who gets a whole bunch of work done very well, very fast with good quality and a good attitude or somebody who’s in a certain chair during certain hours?”, right?

Bruce Tulgan: [00:31:54] And nobody votes for a body in a chair during certain hours, right? Everybody votes for somebody who gets a lot of work done and good quality. But then, if you actually followed them around, they see the empty chair and they say, “Oh, where’s that person? Where’s that person?” So, this is a chance to start managing results, to start managing concrete actions, to start zeroing in on what people are doing and how they’re doing it, more than where and when.

Mike Blake: [00:32:31] So, you know, one of the keys that we’ve kind of touched upon here is the importance now of being intentional about your communication because communication is no longer going to happen organically. You’re not going to bump into somebody on video chat most likely.

Bruce Tulgan: [00:32:47] Right.

Mike Blake: [00:32:47] So, you’ve written about it and talked about another venue, as I know, about over-communicating and over-communicating with prepositions up, down, sideways and diagonal. What does that mean?

Bruce Tulgan: [00:33:00] Well, look, the way most people communicate in the workplace is they touch base, has everything going, everything on track, any problems I should know about? They interrupt each other all day long. They see each other on email. They’re in meetings every once in a while. And then, what happens is problems hide below the radar, and then eventually, you know, sometimes, they blow up, and then it’s all hands on deck, firefighting.

Bruce Tulgan: [00:33:23] And then, we go back to touching base, interrupting, and then seeing each other in meetings or on e-mail. And, you know, it’s unstructured, unsubstantiated communication is the rule for most people. And what we have found is that when you communicate with much greater structure and substance, things go better. So, when I say up, I mean, the first person you got to talk to is your boss. You got to get aligned. You’ve got to make sure that you know what’s changing today, what’s staying the same.

Bruce Tulgan: [00:34:02] I’ve got too much to do, not enough time. What should I back-burner? I need decisions made. I need priorities clarified. I want to show you what I’m going to do and how I’m going to do it. So, you know, align up. Then, second is down. Anybody who reports to you for any period of time, you owe it to them to give them some time to help them get aligned, to help them make sure they know what priorities should come first, second and third today, and what should go on the back burner if they need decisions made, if they need resource planning, if they need problem solving. And then, sideways and diagonal.

Bruce Tulgan: [00:34:46] So many relationships now are outside that chain of command. It’s not just your boss. It’s not just the people who report to you, but it’s your sideways colleagues. It’s somebody you need something from, but they don’t report to you, you don’t report to them. You need something from them, but they don’t report to you. So, what I tell people is every single day, you need to think about not just your schedule, not just your to-do list, but also see your people list. Who do you need to talk to today? And plan the conversation. What do you need to cover in that conversation? And then, give them a heads up. Nobody’s at their best when they’re being interrupted anyway, right?

Mike Blake: [00:35:38] Yeah.

Bruce Tulgan: [00:35:38] So, there’s so much communication that happens in the ordinary workplace, that’s what I call, you know, management by interruption. We interrupt each other all day long. So, you have to pull yourself out of what you’re doing, try to tune into the interrupter. What you really want to do is get back to what you were doing in the first place. So, a much better way is to plan and prepare your communication. So, every single day, you know, start with, okay, what’s my schedule today? What do I need to get done today? And who do I need to talk with? And by the way, nine out of 10 times, if you talk to those people, you’re going to make adjustments in your schedule and your to-do list.

Mike Blake: [00:36:23] So, another disruption that I think doesn’t get talked about enough is the fact that, you know, we try to create offices that people want to be in, at least many companies do. Certainly, we do at ours at Brady Ware, and that’s something I personally pay a lot of attention to. And they could be things as rudimentary as free Coke Zeros and snacks, that could be, you know, high quality office shares, ergonomic supplies, whatever it happens to be. And now, those things are gone, right? And employees and team members are used to having those kind of creature comforts. You know, is there anything realistic that we, as leaders, can do or think about doing, if not to replicate those things, maybe to replace them with something else?

Bruce Tulgan: [00:37:26] You know, I’m not somebody who focuses as much on the ping pong table, the pool table, I do think what you want to do is create an environment where people have what they need, where people are comfortable, where people want to be at work, where people can make it their own space. And people really do care about work space. I mean, when people are at home, I mean, look, maybe we should be sending people rolls of toilet paper, you know.

Mike Blake: [00:38:06] That’s a new bonus program.

Bruce Tulgan: [00:38:07] Yeah. Right, the new bonus program. And I think that what people are going to be struggling with is staying focused and effective and knowing what to get done today and what to back-burner and how to get their hands on the information they need, how to get their hands on the resources they need to get their work done. And as a leader, manager, supervisor, I think that’s got to come first. I think if you have the resources to provide, create your comforts, I think, okay, that’s good. What most people care about the most is being able to get their work done and avoid unnecessary problems, have the resources they need to get their work done, so they can earn what they need to take care of their family. I think the second thing that people really care about is having more control over their own schedule.

Mike Blake: [00:39:18] Yeah.

Bruce Tulgan: [00:39:18] And now, I think, you know, it’s the great irony. People are going to have so much control over their own schedule that they’re going to need help staying focused and productive.

Mike Blake: [00:39:33] This reminds me of a Simpson cartoon, and I haven’t watched that show in forever. But I remember one where Homer Simpson somehow is sent into space. Don’t ask me-

Bruce Tulgan: [00:39:44] Sure, of course. Of course.

Mike Blake: [00:39:46] Perfectly plausible, right? And as would be expected, he messed up the space shuttle and he broke some sort of ant farm experiment and the ant start going crazy and they start doing their whatever language it is that ants speak. And, you know, as they’re floating in space, the subtitle says, “Freedom, horrible, horrible freedom”, right? It kind of reminds me of that, right? When you’re all of a sudden confronted with this, you don’t realize that it is a burden to cope with that and kind of wrestle the fire hose to the ground, isn’t it?

Bruce Tulgan: [00:40:20] Yeah. And, you know, one of the things that I’ve learned over the years, and it’s something that when people are having a hard time managing their time, a tool that we recommend using is a simple time log, which is just keeping track of your time, your activity and your time, you know, and you can do it as thoroughly or as—you can do it very thoroughly. So, every activity you start and stop, time start activity, time stop.

Bruce Tulgan: [00:40:51] And, you know, it’s probably a good time to start keeping a time log so that you have a reality check. And after a couple of days, take a look and see how you’re spending your time. It’s a way to start to see where are you wasting time? When are you getting stuff done? What’s wasting your time? What’s distracting you? So, if you’re having a hard time with all the freedom, it’s a very simple tool. Just a piece of paper and a pencil is all you need.

Bruce Tulgan: [00:41:34] When you wake up, write what time you wake up and just start writing down what you do. It’s an incredible reality check for most people. And that’s true in the best of times. And maybe during these times, it’s a good way to optimize this freedom and learn a little bit about yourself and see where your strengths and weaknesses are when it comes to time management.

Mike Blake: [00:42:02] So, I want to turn the conversation around a little bit. And we’re recording a podcast on Friday that’s going to talk about best practices from the employee’s perspective. But I think one thing that gets overlooked is that leaders need care and feeding as well, right? As leaders, and you don’t have to be a narcissist to think this way, but the feedback, the benefit that you receive from the people that you lead is what we take our cues from that motivates us to take on the responsibility of leadership.

Mike Blake: [00:42:38] And it’s not easy. And so, I guess my question is this, you know, to those of us, maybe some of us are at the top of the food chain, so it doesn’t apply, but others of us, myself included, I do have other people to whom I report, even if they are very senior people, what do leaders need in terms of care and feeding as well to make them? And how can employees kind of support leaders to make them feel empowered and effective?

Bruce Tulgan: [00:43:12] Well, I mean, I guess it depends on the leader. If you happen to report to a narcissistic demagogue and you should tell them how great they are all the time, I guess. But assuming that’s not your particular burden, then what my advice to people is help your boss manage you. You know, do what you can to create structured dialogues so that it’s not all on manager, the leader, to create that structured dialogue.

Bruce Tulgan: [00:43:46] Maybe suggest a time, maybe prepare an advance, send a note to your leader, manager, supervisor 24 or 12 or six hours before the conversation and say, “Here’s some decisions I need made. Here’s some problems I need help solving. Here are some resources. I need some advice about how to get my hands on. Here are competing priorities and my available time. I need help setting these priorities. Here’s my project that I’m working on.

Bruce Tulgan: [00:44:20] And here’s my preliminary plan. Could you take a look? Here is a recurring task or responsibility. And here’s my standard operating procedure usually, but here’s a change I think I’m going to make.” I think that’s one way. I think if you are the leader, manager, supervisor who has a hard time getting feedback, then you can make it clear you want that feedback. If you have a leader, manager, supervisor who wants your feedback, then be candid. And I guess, you know, once in a while, you can inquire about their well-being and tell them how great they are.

Mike Blake: [00:45:06] Or not. That’s fine. Yeah, but, you know-.

Bruce Tulgan: [00:45:08] Or not.

Mike Blake: [00:45:08] Yeah. And you’re right. You’re right. Everyone is different. But, you know, I do think that at least for some people, you’re in a leadership position because you want to lead people. And the benefit of leading people when you have this barrier, you know, that connection is stressed. And I think your suggestions are good ones. You know, the employee doesn’t have an obligation to do that really necessarily, but I do think that, you know, if the employee has a desire to make that relationship work, I think that’s good advice to facilitate that.

Mike Blake: [00:45:53] We’re running out of time, but we have time for a couple more questions. And one we touched upon a little bit, but I want to circle back and hit explicitly is there are some good things that can come out of this whole thing, right? I mean, number one, you know, we talked about as developing different management skills and talents is a good thing that I think can and will come out of this. Can you think of any other positives from a leadership development perspective that may come out of this whole thing?

Bruce Tulgan: [00:46:28] Yeah, I mean, look, so what should happen in management relationship is you should be engaged in regular structured dialogue with your people, whether they’re sitting next to you or whether they are working from a remote location. So, putting more structure and substance into your ongoing conversation, that’s step one. Step two, make sure that everybody who works for you understands the broad performance standards for their basic tasks and responsibilities.

Bruce Tulgan: [00:47:03] This is a good time to check in on broad performance standards. And even though they may be changing, check in, make sure people understand what they’re supposed to be doing, how they’re supposed to be doing it. Zero in on priorities. Make sure that people understand expectations. Expectations are different from broad performance standards because broad performance standards are from now on, right?

Mike Blake: [00:47:29] Right.

Bruce Tulgan: [00:47:29] Expectations are today, tomorrow, this week. Get better at helping people make plans. Get better at helping people set goals and spell out guidelines and parameters for their goals. Get better at helping people schedule their concrete actions and time chunks. You know, a time motion study goes way back to Frederick Taylor, but, you know, help people understand exactly how do you do that and how long does it take you to do that?

Bruce Tulgan: [00:48:04] Well, gee, if it takes you six minutes to do that, shouldn’t you be able to do that 10 times in an hour or, well, nine times with a six-minute break? And okay. Well, would you be able to do that 72 times in a day? Oh, well, okay, maybe 60, giving yourself a few deep breaths. And, you know, this is a time when you can get better at checking working progress. It’s a time when you can get better at looking at tangible results and evaluating quality.

Bruce Tulgan: [00:48:44] This is a time when you and your direct reports can get better at helping them monitor their own work. You know, one of the things that I’ve learned over the years is that, you know, in the workplace, most managers only start keeping score for people. They only start really documenting performance once things start going wrong. Well, maybe we should get better at keeping score for people when things are going average and when things are going well.

Bruce Tulgan: [00:49:17] And not only that, but let’s start helping people keep score for themselves, keep better track of what you’re doing and how you’re doing it. Time log is one way. A checklist is another way. A plan is another way. Take note of the tangible results you’re creating and get better at managing yourself and your time. I think it’s also a time when—you know, you started earlier on in the conversation talking about empathy.

Bruce Tulgan: [00:49:51] And so, maybe this is a time where we can—maybe we need to bookmark this and remember that we’re all human and that the human element is central. And maybe it’s a time where we’re all going to get more tuned in to the need to serve and to add value and to care of ourselves and take care of each other. Maybe some people are going to come out stronger. Let’s hope.

Mike Blake: [00:50:29] So, I’m going to ask you a patently unfair question, but I think that you can handle it. That patently unfair question is at some point, this is going to end, and we’re going to return back to something. Maybe it’s normal, maybe it’s not. Do you think when we go back to what we looked like in terms of the workplace and organizational operation, say, as of January 1st, are they going to look like the same thing or do you think there are going to be some things that are a little different going forward?

Bruce Tulgan: [00:51:07] You know, I’m not a futurist and I’m very tied to data, so what’s the data we’re seeing?

Mike Blake: [00:51:19] Right.

Bruce Tulgan: [00:51:19] And I don’t project out much from the data we’re seeing. I can tell you, one of my best friends is an anthropologist. And actually, did you say you’re in Atlanta?

Mike Blake: [00:51:30] Yes.

Bruce Tulgan: [00:51:32] He teaches at Agnes Scott.

Mike Blake: [00:51:35] Okay, few miles from where I live, three miles from where I live.

Bruce Tulgan: [00:51:38] And he’s one of my best friends for many, many years. And he was saying, you know, just as an anthropologist, what’s the likelihood that after all this, people are going to want to go back to all of the norms? It may be that this has lasting change on people’s willingness to congregate. What I don’t think is that we can predict how this is going to change us. I do think we can predict we’re not going to go back to the way things were. I think there are going to be big changes.

Mike Blake: [00:52:21] I think that’s a fair answer. So, Bruce, this is a bigger topic than we can probably fairly address in an hour, but I need to be respectful, of course, of your time. How can people contact you for more information?

Bruce Tulgan: [00:52:37] Rainmakerthinking.com is the best way to contact us. I’m on Twitter @brucetulgan. My email address is brucet@rainmakerthinking.com. I answer a lot of emails every day. And one thing I can tell you in terms of my values and my mission, my mission is to help leaders, managers and supervisors provide guidance, direction, support and coaching for their people. And that’s not going to change. And I want to help leaders stay in dialogue and provide that support that people need. And my two monitors are structure and substance, create structured dialogue with your people. And if I can help in any way, you send me an email, I promise I’ll respond, and I type faster than I talk.

Mike Blake: [00:53:27] All right. So, that’s going to wrap it up for today’s program. I’d like to thank Bruce Tulgan of Rainmaker Institute so much for joining us and sharing his expertise with us today. We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: Brady Ware, Brady Ware & Company, Bruce Tulgan, managing work at home employees, Michael Blake, Mike Blake

Decision Vision Episode 56: Should I Partner with a Technology Transfer Office? – An Interview with Stephen Fleming, University of Arizona

March 19, 2020 by John Ray

technology transfer office
Decision Vision
Decision Vision Episode 56: Should I Partner with a Technology Transfer Office? - An Interview with Stephen Fleming, University of Arizona
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Decision Vision Episode 56: Should I Partner with a Technology Transfer Office? – An Interview with Stephen Fleming, University of Arizona

Why and how should a business work with a university’s technology transfer office? How does the ownership and use of intellectual property work? These questions and much more are addressed by Stephen Fleming, University of Arizona, in this edition of “Decision Vision.” The host of “Decision Vision” is Mike Blake and this series is presented by Brady Ware & Company.

Stephen Fleming, University of Arizona

technology transfer office
Stephen Fleming, University of Arizona

Stephen Fleming is with the University of Arizona and serves as Vice President, Strategic Business Initiatives.

Stephen was originally trained as a physicist, and spent 15 years in operations roles at AT&T Bell Laboratories, Nortel Networks, and a venture-funded startup. He has 25 years of experience as a technology-focused venture capitalist and angel investor. Stephen is the former general partner of a $260-million early-stage venture capital firm responsible for 18 investments, 16 board seats and 13 successful exits.

After retiring from venture capital, he served at Georgia Tech as Vice President, Economic Development and Technology Ventures, Executive Director of the Enterprise Innovation Institute, as well as Director of the Advanced Technology Development Center (ATDC).

In 2017, Stephen moved to Tucson in 2017 to join the University of Arizona, where he focuses on improving the university’s engagement with the private sector. He is an investor in eleven private aerospace startups, was a founding member of the Space Angels Network, and has recently organized the Arizona Space Business Roundtable.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

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Show Transcript

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:40] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:05] So, today, we’re talking about technology transfer offices and when it might make sense to partner up with one. And I think this is an interesting topic for a lot of reasons. One, I think this is an underutilized and underappreciated asset among companies in the tech sector broadly. And in some cases, you don’t even need to necessarily be a technology company to benefit from these kinds of relationships. But also, not many people know this because the early part of my career is convoluted and would take a podcast episode to really explain in detail.

Mike Blake: [00:01:05] But the bottom line is that my first job out of school full-time was to work for Brown University’s technology transfer office, which was called the Brown University Research Foundation. And until I had done that, I did not know what a technology transfer office was. So, you know, why did they hire me? The reason was, at the time, they were doing a lot of stuff with Russian universities. And because I was a Russian speaker that was willing to work for peanuts, they saw me as a good fit.

Mike Blake: [00:02:13] But I’m not a scientist by any stretch of the imagination. But that made a lasting impression upon me in terms of what tremendous impact a technology transfer office and generally, what private academic partnerships, and sometimes, those are public academics, sometimes, those are private academic partnerships, can do in terms of supporting the private sector and promoting economic and social development, generally.

Mike Blake: [00:02:46] So, you know, if you are a technology-related company and you feel like you may need help or maybe there’s some universities you think are working on some cool things, but you’re wondering about how to take advantage of that, and most universities are looking very actively to partner with the private sector, that’s a major priority for just about every university that I’ve spoken to over my career. I think this podcast will at least give you some understanding as to how to approach that conversation and do so in a way that’s intelligent and productive.

Mike Blake: [00:03:20] So, as is always the case, I can have a five-minute conversation about any topic we put on, but we’re going to introduce an expert in. Today, I’m delighted to introduce my friend, Stephen Fleming, who is currently Vice President, Strategic Business Initiatives at the University of Arizona. And that’s strange to say. He and I were just talking about this. And he’s a native Atlanta guy going back, I think, five or six generations.

Mike Blake: [00:03:47] And I think at least until three years ago, if you prick him, he’d bleed golden black. But now, he’s with the University of Arizona, which is ranked among the top 20 public research universities nationwide in areas such as the environment, optics, space sciences, bio sciences and southwest border issues. They’re among the best in the world. Stephen himself is a highly successful senior executive with leadership experience in startups, multinationals, private equity and university-based economic development.

Mike Blake: [00:04:18] Recognized as a thought leader for innovation entrepreneurship, including selection, as one of the first principal investigators funded by the National Science Foundation to help create the I-Corps program. Most recently, he led the Economic Development Entrepreneurship Initiatives at the Georgia Institute of Technology. There’s that golden black I told you about. He’s the former general partner of a $260-million early-stage venture capital firm responsible for 18 investments, 16 board seats and 13 successful exits.

Mike Blake: [00:04:46] I’m going to pause for that. 18 investments, 13 successful exits, that’s a high batting average, folks. Previously led introduction of residential broadband products such as DSL and cable modems. I remember DSL at Nortel Networks, vice president of product management marketing at LICOM, which is a venture-funded startup. And started his career as a bench scientist at AT&T Bell Labs. He’s an active angel investor, at least he has been, community leader and mentor to local entrepreneurs and generally just a good egg. Stephen Fleming, thanks for coming on the program.

Stephen Fleming: [00:05:22] Like I always hate listening to that intro because it seems like I can’t keep a job. But I’ve had a lot of fun and a great run so far.

Mike Blake: [00:05:31] I think the bigger issue is that they can’t keep you. I didn’t realize that you had 18 investments and 13 successful exits. How in the hell did the venture capital industry not keep you in there as a lifer?

Stephen Fleming: [00:05:48] Well, you know, I tried retiring. It was my own choice. And it turns out I have zero retirement skills. And about the time that I was realizing that I don’t golf and I don’t fish and I don’t do anything else you’re supposed to do in retirement, Georgia Tech started sinking its hooks into me as a volunteer. I was an entrepreneur and resident at ATDC, which actually, I wound up running that. I got on a couple of advisory boards and I just slowly got absorbed into the body of Georgia Tech and wound up running the group that I had there, which was actually about 200 people at the peak. And so, yeah, I loved the venture business. I enjoyed it. It’s the greatest job in the world. But honestly, I’ve been an academia now for, gosh, lasted the amount, 17 years. And this is fun, too. I love being part of a major public research university. It’s a great gig.

Mike Blake: [00:06:47] So, what I like to do with most of these podcasts, and it certainly applies here, is I want to set a vocabulary for the listener because the listener may not have heard the term technology transfer office. It doesn’t necessarily come up every day. So, can you describe for us and define what is meant by a university technology transfer office?

Stephen Fleming: [00:07:09] There’s a general set of terms that would fit just about everybody and then, you know, many universities will have their own unique spin or their own unique interpretation. But in general, a research university is going to have faculty and staff and students working on research projects which may, and the result of that research, create intellectual property. And in this case, we’re almost always talking about patents. There are other forms of intellectual property as Mike well knows, but here, we’re going to talk mostly about patents.

Stephen Fleming: [00:07:46] And if you are creating patentable technology, the law in the United States for the last 40 years, if that research was funded by the federal government, then the university has the option to assert title to that intellectual property. So, the university can patent that within the universities name. Well, yay, that means the university owns the patent, which is a piece of paper. And that by itself is basically worthless.

Stephen Fleming: [00:08:16] In order to make that have impact on society and to have economic value, that needs to be transferred to the private sector. And so, technology transfer is just that, it’s taking the intellectual property developed by the university and moving it into some sort of licensing agreement or some sort of arrangement with a private sector entity. That private sector could be an individual in the case of a consulting operation.

Stephen Fleming: [00:08:46] It frequently is a startup company, which could be created around or adjacent to that intellectual property or it could be a large company, you know, a Microsoft or Boeing or a Pfizer to license it and take it toward as part of a big company. But in all those cases, you’re transferring the technology from the research university into a place where the private sector can pick up the ball, run with it, and hopefully create value and create a positive impact on the community and on the world.

Mike Blake: [00:09:18] So, I mean, you know, sort of brass tacks, why does a university care about any of that? When we look at universities, we think about academics to sort of do their thing. You know, why do they take an interest in transitioning these technologies outside of the academic universe?

Stephen Fleming: [00:09:40] Well, let me first make it clear why we don’t do—or a reason we don’t do it. We’re not doing this to make money. A lot of people have that misconception that, you know, we’re selling off this intellectual property and we have a Scrooge McDuck money bin that we dive into and swim around in. That really isn’t true. Most major research universities lose money on intellectual property and technology transfer. It’s the cost of doing business. There are a number of reasons why we do it, none of which are financial.

Stephen Fleming: [00:10:14] The one which people may not really accept this, which is true, is that we feel it’s our obligation. This is research which is being done, especially in public universities, but it’s true as well at private universities like Emory or Stanford or MIT. You know, we feel that creating this technology and letting it sit on a shelf and gather dust is not the honorable thing to do. There should be a path forward to make this happen.

Stephen Fleming: [00:10:45] And if we can do that, and hopefully not lose too much money in the process or ideally break even in the process, then we’re fulfilling kind of a public duty. That is true, but if you don’t believe it, there are some more tangible reasons. We, the university, tend not to make money on this, but the professors individually very well can. There are some professors out there, you know, driving Ferraris based on technology transfer agreements with their university because of creation they’ve ushered through their laboratory.

Stephen Fleming: [00:11:18] And so, we are competing for good faculty and we’re always competing for good faculty. The fact that we’ve got a supportive technology transfer office and all the community around that is one of the table-stake items to recruit and retain excellent faculty. So, it’s part of, you know, building our intellectual standing. And then, finally, it’s a great way to help out our students because even though I suspect those professors who drive Ferraris, like those cars, most professors are not really driven by money, they would have probably made different career choices if they were.

Stephen Fleming: [00:11:59] They’re really driven by making their students successful. And by having these sort of technology transfer agreements and licensing offices and so forth, it’s a way to give multiple path forward to their students if the student wants to start a company based on that work in the laboratory or join a company based on the work in that laboratory or if we want to license that technology to a big company and that student wants to go work for that big company. It’s a way of helping the careers of those students that we’ve spent so much of our time and effort in supporting.

Mike Blake: [00:12:34] So, you know, that’s interesting even with the exposure I’ve had to tech transfer offices, I’ve not heard it exactly in that way. So, I’ve learned something so at least one listener learned something. I think it’s reasonable to put out there that universities are going to have a reputation for doing very, you know, so-called primary or, you know, basic research, research that is fundamental to science, but may not have a short path or even a clear path to any kind of commercialization. Is that fair and is that something the private sector has to then bridge or are universities better at producing something closer to market-ready science and maybe generally believed?

Stephen Fleming: [00:13:28] The answer to almost any reasonably complex question is it depends. So, the answer, it depends. In general, you know, your instincts are right. You know, if you look at the research and development continuum, universities are typically going to be big are a little deep. You know, we’re working on the fundamental research, the fundamental science. And, you know, much less focused on how do you develop that into a product or service that you could put in a catalog and sell to somebody. We do some of that. But really, our emphasis is on the earlier stages.

Stephen Fleming: [00:14:01] And corporations or even startups are kind of the flip side of that. They are like, you know, we have to believe the science works, but now, how do we build the sales channels? You know, how do we do pricing? How do we go through regulatory relief and things like that? So, there is this, I mean, you can always hear people calling various things, the valley of death or the chasm or what have you that needs to be bridged between the early-stage activity of university and the later-stage activity of the marketplace.

Stephen Fleming: [00:14:30] Those are some of the ancillary functions that tend to get wrapped around a technology transfer office. But I’ll also note that that chasm between fundamental research and commercial deployment can vary dramatically based on the sector of science and technology that you’re working in. If you’re doing human pharmaceutical drug development, you know, that gap can be decades, okay?

Mike Blake: [00:14:57] Yeah.

Stephen Fleming: [00:14:58] If you’re doing software and, you know, augmented reality, that gap can be months. You know, that can actually go very, very quickly. And other things, you know, advanced materials or things like that will be somewhere in between. So, just because it’s early and fundamental doesn’t mean that it’s a long wait. It depends on the sector. And, you know, the closer you get to putting something in a pill that goes into the body, the longer it takes.

Mike Blake: [00:15:25] So, of course, what we’re talking about, technology transfer offices, which are associated with academic institutions. And I think you would agree that academic institutions culturally, structurally, fundamentally are different animals than the typical corporate organism. And I guess my question is that, you know, should private companies have an amount of concern or trepidation in trying to cooperate with an academic institution, given that those cultures and sometimes the fundamental objectives are so foundationally different?

Stephen Fleming: [00:16:06] The cultures are different. There’s no doubt about that. And the role of a good tech transfer office and commercialization office and other functions, a lot of times, is to do impedance matching and, you know, making sure that the expectations are aligned and appropriate for both parties. So, the clock tends to tick slower in academia. The professor will look at something and say, you know, “Gee, I can’t get to that this semester. I can do that next semester.”

Stephen Fleming: [00:16:39] And the corporate partner, especially with the startup, says, “You know, I don’t know what a semester is, but can I have something by Tuesday?” And those are just fundamentally different. So, it’s a matter of managing expectations. It’s a matter of, you know, understanding that if you’re looking for something that’s going to go into production in your factory in the next 90 days, you probably are not going to get that out of the university.

Stephen Fleming: [00:17:04] If you’re looking for something which is going to completely obsolete what’s in your factory right now and make you build a new factory, that very well may be coming from the university. And the earlier you get a start on that, the better. Now, given that, I will say, a lot of the grief that universities get for being slow and stubborn and hard to deal with and so forth, a lot of that is anecdotal. Sometimes, that’s self-serving on the part of the non-university partners.

Stephen Fleming: [00:17:37] A lot of universities, including the two that I’ve been closely involved with, Georgia Tech and now, University of Arizona, have gotten a lot better at this in the last couple of decades. So, if you’re hearing horror stories of that in the world, you know, back in the day, I had this, you know, situation, “Well, you know, find out when back in the day it was”, because yeah, in the 1980s and even 1990s, universities were pretty bad at this. This whole area of practice of university technology transfer is only 40 years old. The whole idea of university tech transfer really only emerged with the Bayh-Dole Act of 1980.

Stephen Fleming: [00:18:22] And most universities didn’t establish tech transfer offices until the late ’80s or early ’90s. So, in the early days, yeah, we were pretty bad at this. Now, we’ve gotten good at it. We have templates, we have guidelines. We have, you know, a lot of test cases with, you know, clear crisp delineations of what we can and cannot do. And so, I think it’s much more efficient and much more—I’ll say, a much less painful process for a company to work with a university than it may have been even a decade ago.

Mike Blake: [00:18:57] And I imagine, too, one of the ways in which the offices have evolved is that they hire people candidly like you who have been in the business world and speak business. And in your case, you’re bilingual, you speak both business and academia. And that’s an important element.

Stephen Fleming: [00:19:17] That’s true. And people like me didn’t exist 20 years ago because nobody had done both sides of it. So, now, universities will have people who can help out in intelligent ways. And also, you know, we can make it really clear, you know, hey, “Well, you know, this is not our first rodeo. You know, we’ve done licenses like this frequently. You know, here’s the points which are negotiable and let’s negotiate. And here’s the points we just aren’t, you know, we’re a public university. There’s things that are a matter of law that we can’t change.”

Stephen Fleming: [00:19:52] And let me give an example. One that, you know, frequently comes up in negotiations with either startups or with big companies is around the issue of ownership of intellectual property. Well, under federal law, if we’ve asserted title to the intellectual property, you know, we have to maintain that title in the name of the university. So, basically, we cannot sell you our patent. Now, through a licensing arrangement, we can arrange for you to have exclusive worldwide sub-dividable, sub-licensable, non-recourse, non-fee control of that intellectual property, which, for all intents and purposes, is identical to ownership.

Stephen Fleming: [00:20:43] Because if your focus is not really you want to use it, you want to make sure that nobody else can use it. Well, that’s ownership. We can make that happen. We just can’t sell you the patent. We can’t transfer title, but we can give you all of the benefits of ownership. And for the companies who’ve done this before and understand that, we can actually reach an agreement very, very rapidly. If we’re working with a first-timer that has been through this that has to get educated about, “So, we’re going to hand you money and you’re not going to hand us titles or VIP. Why is that a good idea?”

Stephen Fleming: [00:21:18] We have to go through an educational process. Now, again, the good news is over the last, I will say, 40, certainly 30 years, we’ve done this enough, we’ve gotten better at the educational process. But, you know, 30 and 20 years ago, we weren’t even good at that. And there are a lot of people that got kind of crossways and got upset about the way things were being handled. We’ve gotten better at that.

Mike Blake: [00:21:41] So, we sort of danced around it, but I want to make sure we hit this very directly because it is central to the theme of the podcast. And that is, you know, as you go out into the market, make your pitch to the private sector to cooperate with University of Arizona by I think tech offices, transfer offices generally, you know, why should companies be thinking about that? Why is that something that’s worth a company to invest in?

Stephen Fleming: [00:22:08] Well, even when I worked at Bell Laboratories, that’s before divestiture, which goes to your podcast, listeners won’t even know what I’m talking about, but there, you see this wonderful emerald city called Bell Laboratories which had some of the smartest people in the world working there. You know, I had three Nobel Prize winners, you know, working within a mile of my office, at different buildings. Even then, most of the smart people in the world didn’t work for my company. And that’s even more true today. Most of the smart people don’t work for you.

Stephen Fleming: [00:22:42] And if you’re in a business where your product or service is going to depend on having the best ideas and the best technology and the best science behind them, you’re going to want to get those wherever you can. And sometimes, that’ll be from inside your own skunkworks operation in your own laboratories. Sometimes, that will be from startup companies that you go off and acquire. Sometimes, that will be from universities where you go off and make license arrangements for intellectual property.

Stephen Fleming: [00:23:14] Sometimes, that might be with national laboratories like Oak Ridge or Lawrence Livermore or something like that, which also have tech transfer offices. So, you know, you as a company, you’re going to be in search for the best ideas, the best science, the best technology, the best implementation. And you need to have processes in place to chase those ideas wherever they live. And if they happen to be at universities, you need to have processes and structures in place where you can easily incorporate those into your product and service planning without breaking your old system.

Mike Blake: [00:23:53] Now, that’s a very interesting answer because I didn’t expect it. I would have thought that the first answer when it comes to cost is that in your case, the taxpayers of the State of Arizona and to a lesser extent, federal taxpayers have funded research that’s gotten it to a certain point, so you’re able to piggyback on resources that have already been spent by somebody else. And maybe that’s true. And I’ll ask you to comment on that in a minute. But interestingly, what you’re really leading with is expanding your in- effect network of intellectual capital because, you know, even, as you said, Bell Labs can’t house it all in one place.

Stephen Fleming: [00:24:39] Right. And to, you know, replied to your approach, you’re not wrong. I mean, the taxpayer is paying, you know, country-wide, billions of dollars for this research, which your company can’t afford those billions of dollars. But the truth of the matter is, you know, going to a university tech transfer as a cost reduction strategy is probably misguided because if you’re kind of—I’m thinking for from a big company’s perspective right now, so a big company, you know, your cost is basically all payroll.

Stephen Fleming: [00:25:16] You know, everything else is a rounding error. I don’t care how many electron microscopes you’ve got and, you know, whatever other people, the test equipment you got, your cost is going to be the cost of people. And you’re going to pay those people, whether they’re working on good ideas or whether they’re working on bad ideas. So, what you want to do is maximize the time they’re working on good ideas.

Stephen Fleming: [00:25:39] And if you can jump-start them with a piece of intellectual property or maybe you just hire a really great graduate student and there’s no licensing arrangement that comes with it, you’re just hiring a great grad student and you’re jump-starting that very expensive payroll you’ve got to work on better ideas faster. You know, that’s how you go into the marketplace and compete and win. It’s not because, you know, we’ve got this wonderful, you know, gas chromatograph that you’re able to use for a cheap rate because the taxpayers paid for it. We’re happy to do that, but that’s not going to make you win.

Mike Blake: [00:26:11] So, you touched upon something at the start of the interview and I want to come back to that. Are there certain fields of science that lend themselves better to a technology transfer relationship than others?

Stephen Fleming: [00:26:28] The relationships can be different. I’d say pretty much, you know, all of the, you know, science and engineering related work that is done at the university, you know, can all be transferred. Some will transfer faster than others. What I would say is that different ones lend themselves to different structures. And let’s take the two extremes. You know, let’s take drug development and let’s take software. You know, software is very easily transferable to startups because you have essentially no capital requirements, use a couple of laptops and an internet connection.

Stephen Fleming: [00:27:07] You have, you know, very few, perhaps too few, regulatory requirements. So, you can set up shop as a startup with a license to university intellectual property, you know, very, very quickly, very, very cheaply. If you’re working in drug development, there’s an enormous amount of regulatory burden, perhaps too much, that’s a different conversation. There’s enormous amount of capital requirements. There’s enormous amount of overhead required and creating and developing channels to market. It’s a hugely expensive proposition.

Stephen Fleming: [00:27:43] And it’s very unusual that a startup company would be able to take that all the way to the marketplace. You might start with a startup company with the intention of having that startup company acquired by a Pfizer or GlaxoSmithKline or somebody like that later on. So, I’d say that, you know, all areas of technology have interesting leading-edge work being done at universities. All of that can be transferred, but you wouldn’t necessarily use the same cookie-cutter template depending on what business you’re in.

Mike Blake: [00:28:21] Yeah. And, you know, interestingly that, you know, you did cite two extremes and those two, in spite of the fact those are extreme cases, the cases for that kind of collaboration is readily visible either way, right? If it is going to a longer, more expensive process for pharmaceutical development, but that’s just the way pharmaceutical development works, whether it’s private or academic.

Stephen Fleming: [00:28:48] Right. And just the way that works because you’re putting substances in human bodies and we, as a culture, have decided we’re going to have certain rules about that. And following those rules takes a lot of time, money and talent. That’s not saying it’s a bad thing. It’s just saying that you need to know that, you know, when you’re starting a company in that sector or launching a product for a big company in that sector.

Mike Blake: [00:29:13] So, we’ve touched upon one particular model, which is technology licensing or what you’ve described sounds to me like, effectively, a sort of synthetic ownership transfer. Are there other models out there that companies can consider or does it have to be that kind of licensing model?

Stephen Fleming: [00:29:36] Well, there’s different kinds of licenses. And the fundamental, you know, dividing in two is exclusive and non-exclusive. And an exclusive license is, you know, this is mine. You know, one way or another, I paid for it and I want to control it and I want to make sure that nobody else can use it. And we’re happy to create exclusive licenses like that. They cost a little bit of money. If that’s not critical to you and what you really want is freedom to operate and just to make sure that no one else can come and say, “You have to stop doing what you’re doing” because now, they have control or ownership of the piece of intellectual property, you know, that can be a non-exclusive license.

Stephen Fleming: [00:30:25] And so, something that we grant all the time is called, the acronym is NERF, nonexclusive royalty free license. And that’s basically saying, you know, we, the university, own this piece of intellectual property for various bits of compensation, which can vary depending on the deal. You know, you’ve given us good and sufficient reason that we’re granting you a non-exclusive royalty free license, which means you can use that in your product and service and you don’t have to pay us any additional for that because you’ve paid us something upfront.

Stephen Fleming: [00:31:01] But at the same time, you can’t stop, you know, Brand X from using it and you can’t stop us from licensing it to Brand X, Y and Z under other arrangements. And that’s actually a great utility especially to some folks in the hardware-related businesses because, you know, they’re not looking to build the product around this particular way of building semiconductors. They want to build a semiconductor to put them into a laptop and sell laptops.

Stephen Fleming: [00:31:34] And that’s really what they want to do. And so, what they want is freedom to operate to know that they’re safe from getting a tap on the shoulder or a nasty letter from a lawyer saying, “You can’t do that anymore.” So, there’s a whole range of different arrangements. At the University of Arizona, we’ve got a couple of templates called the Arizona Choice, which you can look up on the website if you want to. And those are kind of the two versions, is if you really think you’re going to want an exclusive, you can pay us upfront and we’ll make sure that nobody else even gets a look at that technology.

Stephen Fleming: [00:32:11] If you just want freedom to operate, you can pay us a little less, actually a lot less and you can have that. You can also be in-between. You could say, “Look, I want to non-exclusive with a certain amount of period of time to decide if I want to negotiate an exclusive and pay more money.” We can make that happen. So, you know, we can be pretty flexible within the bounds of federal law and IRS regulation and things like that, but we can’t change within those boundaries because we’re doing this as a service to our faculty and to our students and to the community. And we’re not, you know, trying to make money off this. We’ll be as flexible as we can be.

Mike Blake: [00:32:52] So, what you’re describing to me is something that sounds to me of a highly transactional nature, which is, you know, let’s say, you know, UA has developed technology X and company A thinks that technology X is pretty cool. Tech company A says, “I’d like to have technology X.” And then, you work out some model that makes sense for you by which company A does have access to technology X. My question is this, are there other more expensive models out there? For example, purely hypothetical, but I’m going to use this example because I know you know this sector very well. You know, let’s take Boeing and they’ve had, literally, a disaster of a product launch and they’re still trying to figure out how to get that thing flying, right?

Stephen Fleming: [00:33:47] And not just on the 737 Max, I mean, they’ve had troubles in a lot of places. They’ve had a bad year.

Mike Blake: [00:33:52] They have.

Stephen Fleming: [00:33:53] Go ahead.

Mike Blake: [00:33:53] For sure, right? And, you know, if I were they, and maybe they’re already doing this, I don’t know, but I would want to go to some—I would at least think about, is there someone that we can partner with? Maybe there’s some people in spite of Boeing being Boeing and who they are and how many people. There are lots of smart engineers and all that. But is there somebody that can just help us figure this darn thing out, so we get the planes back flying again and people being willing to fly on them? Are there models where there’s this sort of an effect, I guess, a joint venture available, where, you know, that company may want to just—may not have the answer, maybe they don’t think the university itself has the answer either, but probably has the resources to help them figure out the answer. Does that make any sense to you?

Stephen Fleming: [00:34:47] Yeah. And let’s make sure to make it very clear. I’m not talking specifically about Boeing because by the time you get to the situation they’re in, I mean, they’re in an issue where it’s a public relations crisis, it’s a stock price crisis. I mean, you don’t want to get to that point.

Mike Blake: [00:35:04] Right.

Stephen Fleming: [00:35:05] And we, universities in general, really are not in the fix-it-up business. You know, we’re not turnaround specialists. And because our clock does tick slower, you know, if you’re trying to figure out how to get the stock price back up the next 90 days, we’re not going to be the ones to solve that problem. But to answer the deeper question, you know, are there other relationships? Yes, absolutely.

Stephen Fleming: [00:35:34] What you can find is certain companies will look at certain universities with particular specialties and say, “You know, there’s just a lot of great activity going on there. We’re not looking to license any specific piece of intellectual property”, which as you correctly noted is transactional. “We just want to be in the conversation with these folks to kind of figure out what’s coming next and how that’s going to affect our business and, you know, what should we be thinking about four or five years out?”

Stephen Fleming: [00:36:09] Not 90 days out, but five years out. And there, we’ve got a couple of models. We, the universities in general, have a couple of models. One of which is just, you know, a bilateral agreement between the university and a big company to say, “Hey, look, let’s come sponsor some research. Let’s do some sabbaticals for your faculty. Let’s do some internships for our grad students. Let’s just have this free-flowing set of discussions between the two of us, so we can help color your perception of what you’re working on next.”

Stephen Fleming: [00:36:46] And oh, by the way, these graduate students doing internships with you, you’re going to want to hire them. And so, we do a conveyor belt of talent to them. That would be kind of a bilateral research agreement. We can also do the multilateral and we can say, you know, “We’re working on what can be seen as pretty competitive technology or non-competitive technology and let’s put together a consortium.” And sometimes, we’ll do that purely with university partnership with companies.

Stephen Fleming: [00:37:21] Sometimes, we’ll get federal dollars to help make that happen through a National Science Foundation grant or something like that. And this brings us up to one of the important roles of a major research university, especially a public research university, is we can act as a convener. And, you know, you’ll never get Coke and Pepsi to cooperate, but you can get both Coke and Pepsi to join a university consortium to look at issues of, let’s say, you know, how—I’m making this up.

Stephen Fleming: [00:37:58] This is not a real project, but, you know, how can we minimize water use in making our soft drinks in areas where they’re under water stress, that there’s a drought or because of climate change or what have you? You know, that’s not going to be a competitive advantage for Coke nor for Pepsi. You know, they’re not going to go advertise, “Hey, we’re using less water in our production process.” It would save them money.

Stephen Fleming: [00:38:24] It would be a good thing for them, but it’s not necessarily a head-to-head competitive issue. So, that’s one where you could see—and again, this is purely hypothetical, you could see both of those companies coming together and working with the university and saying, you know, “How are the best ways to do this? And by the way, here’s some things we, as Coke, have tried” and “Here are some things we, as Pepsi, have tried.”

Stephen Fleming: [00:38:49] And the university, here are some things we, as the university, have tried. And let’s start trying to find best of breed.” And so, that sort of research consortium is not focused on a license, is not focused on a transaction, but it’s focused on moving the chains for everybody in the industry. And again, that’s something which, really, can only be done at a major research university. There are really not other entities that are able to do that very well.

Mike Blake: [00:39:18] So, we’re running up against the clock here. There’s time for a couple more questions. But one I want to make sure I get out there is, you know, let’s say a listener has become convinced that at least exploring a relationship with a tech transfer office is worthwhile. What are the first couple of steps to get started on that?

Stephen Fleming: [00:39:43] Well, first is picking the right university. And there can be lots of reasons why it’s right. The best one is that university is working on the technology that you specifically are interested in. You want to go find the leaders in that. You know, the other might be their neighbors down the street. And there’s a certain value that you shouldn’t discount the value of being able to be local to your local research university because you may find out that they’re not working on a particular widget you’re interested in, but they’ve got people who could be.

Stephen Fleming: [00:40:13] And if you were to sponsor research in that area, they could suddenly become a very strong leader in that area with just a little bit a nudge and a little bit of resource. But you need to have a thesis. You need to have a reason for why you’re talking to a particular university or a particular set of universities because there are, you know, 100 tier-one universities in the country and, you know, hundreds more in the lower tiers. You can’t talk to all of them.

Stephen Fleming: [00:40:39] So, first, you know, you pick the ones you want to talk to. After that, I would have had different advice 20 years ago. But right now, in the year 2020 and thereafter, what I would say is, you know, look up their technology transfer office online and call them or send them an email. And they’ll have lots of different sorts of names, technology transfer office, technology licensing office, office of industry engagement, I think, was the name they use down at Georgia Tech, doesn’t matter.

Stephen Fleming: [00:41:16] You know, you’ll quickly be able to poke around the website and find out who owns the licensing process because these days, any substantial research universities, and probably anyone that you’re going to want to work with, they’re going to have people whose job it is to talk to you. So, they’re waiting for that phone call or that email because that’s their job, is to do outreach. And so, in the current environment, it’s actually a very, very easy conversation to get started.

Stephen Fleming: [00:41:48] You go to the web page, you find the right link to click on or number to pick up a phone call, what have you, talk to those people and they can start navigating you through the process as it exists at that university because the basics will be the same anywhere. But some of the specifics will be different depending on what the university policy is, whether they’re public or private, how they’re structured, blah blah blah, there’s lots of reasons. But those people in the tech transfer office can act as your native guide, you know, through that process and make sure that it’s successful for you.

Mike Blake: [00:42:26] So, Stephen, to wrap up, this is obviously a complex issue and I’m sure there are going to be listeners that could very well have more questions. If they’re interested in either collaborating with the University of Arizona or just tech transfer, in general, would it be okay if they contacted you? And if so, what’s the best way to do so?

Stephen Fleming: [00:42:50] Oh, absolutely, I’m happy to talk to any of your listeners. I’m easy to find, it’s my first name and last name, stephenfleming@arizona.edu and Google find that easily. But also, you know, make sure they do talk to their local university if they got questions, even if that’s not the one they want to talk to. There also is a trade organization, AUTM, which used to stand for American University of Technology Managers. But then, the non-American started joining. So, now, AUTM just stands for AUTM. And they have publications, they have conferences and they welcome non-university participants.

Stephen Fleming: [00:43:31] So, if you decide to get serious about this, you know, go to an AUTM meeting or, you know, they have a regional, it’s not necessarily having to fly across the world to do it. You get a chance to meet a lot of people, hear about a lot of different models. Because it is a transactional business, it only survives if there are transactions. So, therefore, there are people who are motivated to make sure transactions happen. So, you’ll find that there’s many, many people anxious to work with you if this is something that makes sense for your business.

Mike Blake: [00:44:02] Well, that’s going to wrap it up for today’s program. I’d like to thank Stephen Fleming so much for joining us and sharing his expertise with us. We’ll be exploring a new topic each week. So, please tune in so that when you’re facing your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: intellectual property, Michael Blake, Mike Blake, Stephen Fleming, technology transfer office, University of Arizona

Decision Vision Episode 55: Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors

March 12, 2020 by John Ray

should I change my customer profile
Decision Vision
Decision Vision Episode 55: Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors
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should I change my customer profile
Mike Blake and Andy Goldstrom

Decision Vision Episode 55:  Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors

Why is developing a customer profile so important? How should I develop a customer profile? Andy Goldstrom, Midcourse Advisors, answers these questions and much more when he joins host Mike Blake on this edition of “Decision Vision,” presented by Brady Ware & Company.

Andy Goldstrom, Midcourse Advisors

should I change my customer profile
Andy Goldstrom

As Managing Partner at Midcourse Advisors, Andy Goldstrom and his team grow companies profitably and do it fast. Andy is an expert with B2B companies and is a sought-after business partner and speaker.

Early in his career, Andy started and built a division of a real estate brokerage company that generated 30%+ margins and grew from 1 to over 500 employees. After that, he took over an existing national recycling company and grew the top line from $70M to $100M and profit from $10M to $17M in 3 years. Both businesses were both designated as Inc. 500 companies, the fastest growing privately help companies nationwide, and subsequently sold to Fortune 500 companies at high multiples. Most recently, he served as Global  Director at a major investment bank, where he grew service capabilities over in 70 countries while saving $12M annually.

In each case, Andy led sales teams that competed efficiently and effectively to win an extraordinary amount of business. In addition, he reduced cycle times and increased the frequency of incoming sustainable business, creating incremental value that was monetized when the companies were sold.

He started Midcourse Advisors as a way to give back to the B2B services community and now offers his knowledge and experience to organizations looking for ways to grow and improve.

For more information, go to the Midcourse Advisors website.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

should i change my customer profile“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

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Show Transcript

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional, full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:39] My name is Mike Blake and I’m your host for today’s program. I’m a Director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast? If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:04] So, today, we’re going to talk about whether you should change your customer profile. And I’m excited about this topic. I mentioned this topic for a number of reasons. Number one, as it happens, it’s very timely. I just came back from a strategy meeting at our global headquarters in Dayton, Ohio, where the valuation practice of Brady Ware got together and we decided, in effect, our strategy for the next five years.

Mike Blake: [00:01:36] And in the nine hours that we had that meeting, about eight of them talked about defining what our customer profile is going to be going forward. And I think that’s so critical because unless you figure out what your customer profile as all the other things that you want to talk about in terms of marketing and staffing, investment, and other strategy, none of those are going to be right unless you understand what your customer profile is going to be.

Mike Blake: [00:02:06] It’s that central, it’s that foundational to your business strategy. And therefore, you know, we decided that if that’s all we accomplish in that particular day, then that was going to be a win for us. And I’m not leading up to a big announcement or anything like that. But, you know, we will probably, in about four to six weeks, as we flesh out the strategy. But the strategy part is not time well-spent unless you’ve identified that customer.

Mike Blake: [00:02:39] The other neat part about going out to Dayton was I discovered something that I did not know because I do not pay attention to college basketball that much, now that Georgetown has somehow managed to be irrelevant in college basketball. But the Dayton Flyers, I don’t know if I ever realized it, Dayton Flyers are ranked number six or seven in the country. I have no idea. So, anyway, good for Dayton out there. And by the way, what a cool name, the Flyers.

Mike Blake: [00:03:04] Of course, with the Flyers because that’s where the Wright brothers originated, even though they did their flight in North Carolina. So, a shout out to the Dayton Flyers. We’ll be rooting for them when the tournament shows up. But, you know, the customer profile is so foundational. And, you know, when companies—every company, I don’t think there’s a company in the world that is satisfied with selling. Every company believes that it can sell better than it’s currently doing.

Mike Blake: [00:03:31] I think most companies look at revenue and sales and says, you know, look, when I wake up in the morning, that’s one of the things that I worry about. It’s one of things that I worry about going to bed the night before, too, is sales. And if you don’t have that customer profile right, everything else just doesn’t matter. And that requires, quite frankly, deep thought and requires some understanding of what that customer is going to be because you’re literally going to build everything around that.

Mike Blake: [00:04:01] And in spite of having a big powwow about this, I’m not the expert on that. But instead, we’ve brought in somebody who is an expert on this. And that’s my friend, Andy Goldstrom, who is managing partner of Midcourse Advisors. Midcourse Advisors are business strategists and growth experts for small and medium-sized service businesses. They help leaders focus on the right pursuits and execute effectively using proprietary tools and methodologies that enable them to scale their businesses and grow rapidly.

Mike Blake: [00:04:29] As managing partner of Midcourse Advisors, Andy and his team grow companies profitably and do it fast. Andy’s an expert with business-to-business companies and is a sought-after business partner and speaker. Early in his career, Andy started and built a division of a real estate brokerage company that generated over 30% margins and grew to over 500 employees from one. After that, he took over an existing national recycling company, grew the top line from $70 million to $100 million in revenue and profit from $10 to $17 million in three years.

Mike Blake: [00:05:02] Both businesses were designated as Inc. 500 companies, the fastest growing privately-held companies nationwide and subsequently sold to Fortune 500 companies at high multiples. Most recently, he served as global director at a major investment bank, where he grew service capabilities in over 70 countries while saving $12 million, annually. He started Midcourse Advisors as a way to give back to the business community and now offers his knowledge and experience to organizations looking for ways to grow and improve. Andy, thanks for coming on the program.

Andy Goldstrom: [00:05:33] Thanks so much for having me. And good to see you after we met several years back and have been in touch.

Mike Blake: [00:05:39] Yeah.

Andy Goldstrom: [00:05:39] I appreciate being on your show.

Mike Blake: [00:05:42] So, before we get started, have you just published a book or is a book about to come out?

Andy Goldstrom: [00:05:48] I have a book coming out. I’m just working on the right promotion.

Mike Blake: [00:05:53] Okay.

Andy Goldstrom: [00:05:53] I got all the content in place, but it’s got all the basics about how to grow your business lessons from an Inc. 500 person, an executive. And it has some things about customer profile in it that can be used, tools and methodologies and anecdotes and case studies and all the rest.

Mike Blake: [00:06:14] And when do you think that book will come out?

Andy Goldstrom: [00:06:16] Probably in the next 60 days.

Mike Blake: [00:06:18] Okay.

Andy Goldstrom: [00:06:18] And when we reference my website, you can see a link for it.

Mike Blake: [00:06:22] And do you know what is the title of the book? Do we know that yet?

Andy Goldstrom: [00:06:25] We’re trying to finalize that.

Mike Blake: [00:06:28] Okay.

Andy Goldstrom: [00:06:29] Yeah. Right now, it’s called the Ten Deadly Sins of Growing Your Business.

Mike Blake: [00:06:35] Oh, nice.

Andy Goldstrom: [00:06:36] Yeah. So, I’ve got 10 themes. The only thing I’m trying to struggle with and I’m getting feedback from experts is that if you Google that, you get a lot of other junk.

Mike Blake: [00:06:47] Okay. I guess that makes sense.

Andy Goldstrom: [00:06:49] Right? So, I just want it to be poignant and on point. Title is an important thing.

Mike Blake: [00:06:54] Okay.

Andy Goldstrom: [00:06:54] So-

Mike Blake: [00:06:55] Well, good luck with that.

Andy Goldstrom: [00:06:56] Thanks.

Mike Blake: [00:06:56] And make sure we know about when the book is launched, so we can publicize it.

Andy Goldstrom: [00:07:00] I will. Absolutely.

Mike Blake: [00:07:03] So, you mentioned in your book, in fact, you deliberately discuss or separately discuss customer profiles. So, let’s get the vocabulary right. What is a customer profile? Is it the same thing as what people call a customer avatar?

Andy Goldstrom: [00:07:16] Sure. The first thing I just want to do is step back. When you talk about customer profile and when you had your meetings in Dayton, you had gotten to a specific point, knowing that you were serving the customer in certain markets and you knew you were doing accounting work and valuation work and other work. So, there’s a bigger picture than just the customer profile to successfully grow a business, but the customer profile is foundational.

Andy Goldstrom: [00:07:40] So, you need to know your industry and your target market and your customer segment before you even get to your customer profile. But when you get to that point, it’s really a representation of your ideal customer and it’s defined. It’s something that allows you to target, given that you have limited resources. And the thing that happens is most companies don’t do a really good job and it inhibits them from reaching their goals, which is a credit to you and your company in terms of how much time you’re spending on the, trying to get right.

Mike Blake: [00:08:16] Well, you know, we hope we got it right. Now, we got to execute.

Andy Goldstrom: [00:08:19] Yeah.

Mike Blake: [00:08:19] So, it all looks great on the whiteboard. We’ll see how it turns out in practice, but-

Andy Goldstrom: [00:08:23] And you mentioned the avatar.

Mike Blake: [00:08:25] Yeah.

Andy Goldstrom: [00:08:26] So, an Avatar is kind of a physical representation of it. I teach at Georgia State in addition to doing my consulting and we call it a persona. And it’s a physical representation with a name to it, so you can kind of feel it and look at it. So, for instance, as an example, just if someone’s a really avid tennis player and you know that they’re going to buy premium products because they love tennis so much and they want to differentiate their game and have every advantage possible, that avatar might be Peter, the professional tennis player or something like that. So, you actually can have a physical look as an avatar in terms of what that target customer could be or what that customer profile would look like. And then, obviously, there are a lot of different characteristics associated with that person.

Mike Blake: [00:09:17] It’s interesting. I never thought of it from a physical manifestation perspective, but that makes sense. And I know you specialize in service businesses. Do you go through that process with service businesses, too? Can you do that with professional services in terms of building a customer avatar like that?

Andy Goldstrom: [00:09:33] Absolutely. So, I’ll give you an example. I worked with a company that was a generalist type of company and they weren’t growing as fast as they want. They happened to be in the real estate services space, which is one of the things I focus on. I work with companies outside of that, but I’m focused on my customer profile. And they had expertise and background and hung out in technology areas, like where you sometimes spend your time, Michael.

Andy Goldstrom: [00:10:05] And so, we said you have to create an avatar or a customer profile based upon what that technology company leader looks like and what he looks for and what he cares about. And so, we developed a profile on that and it was Tom, the technologist. And literally, it was an opportunity to understand how they need flexibility in what they’re doing, how they care about vision, how they want to be able to grow their business quickly and how they care about all the technological aspects in the wiz bank things. And so, that kind of profile and being able to address their needs specifically knowing what they’re like compared to a corporate executive is very important.

Mike Blake: [00:10:55] So, you obviously agree, we think a customer profile is important or critical, but can a business theoretically be successful without one? Is that what we would think of as a mass market? For example, does Procter and Gamble have a customer avatar for Tide? Do they make Tide? I think they do.

Andy Goldstrom: [00:11:17] I think that’s right.

Mike Blake: [00:11:18] So, for some of us, that’s truly mass market. You know, do they have a customer profile, do you think or do they just make a product they think is really good, position it and distribute it in a certain way and sort of off they go? What do you think that looks like?

Andy Goldstrom: [00:11:33] No, they definitely have an avatar and it might be broader. But when they first started making Tide, it wasn’t as mass market or broad as it is. So, when you get a certain appeal, you can expand it. The example I use is McDonald’s. McDonald’s actually has brand ambassadors to focus on specific customer profiles for their specific type of food that they sell. So, they actually have somebody who just focuses on salads, you know, and people who just focus on burgers and literally, the customer segment that would be more in line with that.

Mike Blake: [00:12:15] You know, that’s interesting. I’d like to drill down on that for a second because I would not have guessed that, but I guess that perhaps makes sense because when McDonald’s—I find McDonald’s fascinating. I worked there as a kid. I used to think the way they produce things is just so cool.

Andy Goldstrom: [00:12:30] The whole story about, you know, the mass customization and the way that-

Mike Blake: [00:12:35] Yeah, it really is fascinating. But anyway, when they first introduced salads, that did not go well for them initially, right? Because it’s very confusing to the market, right? Because I think they didn’t have a customer avatar for that. And it sounds like what you think they discovered is maybe they have multiple customer profiles.

Andy Goldstrom: [00:12:58] They do. But they started from a foundational element and a base. And if you’re a new company, you really can’t afford to spread yourself too thin.

Mike Blake: [00:13:06] Right.

Andy Goldstrom: [00:13:06] And if you’re an existing company that’s starting something new, it’s just as important.

Mike Blake: [00:13:12] So, what are the pieces or components of a customer profile?

Andy Goldstrom: [00:13:18] Sure. There are several pieces. The key thing, what’s really important is it needs to be data-driven. So, it’s not something where you talk to your friend or you see something on TV or you just have something in your gut that tells you this is what my customer could look like. You really have to do the research to understand it, to inform your decisions. And, you know, Michael, when you post on LinkedIn, you have all these data charts and data, and I think you do it because it’s interesting, but you also do it because it can inform—you know, it’s sparks curiosity, but also informs how people make decisions.

Mike Blake: [00:14:01] And it also is indicative of my ideal customer profile.

Andy Goldstrom: [00:14:04] That’s right.

Mike Blake: [00:14:05] Right? If you like to guess, you’ll need to pay me to guess.

Andy Goldstrom: [00:14:09] Right.

Mike Blake: [00:14:09] It’s like when, you know, I tell my son, “Go tell your mother something”, right? And then, he just screams at the bottom of the staircase, like I could have done that. I wanted to go up the stairs and do that. The same thing, you don’t need to pay me to guess, right? But I’m trying to build a brand that suggests that we’re data-driven.

Andy Goldstrom: [00:14:27] That’s right.

Mike Blake: [00:14:27] I’m glad you picked up on that. I might be doing something right.

Andy Goldstrom: [00:14:30] Right. Absolutely. So, let me answer your question. Common elements are demographics. So, if it’s a B2C, it tends to be income, gender, marital status, things like that. For B2B, it’s the size of the opportunity, the industry and the location. You have to focus on customer needs. And it’s interesting. Customer needs are both perceived in latent needs. And it’s really interesting. A latent need is so important in terms of getting somebody to buy. And a perceived need is something that a customer knows, a latent need, they might not know or might not be out in front, but it’s something that drives their purchasing behavior.

Andy Goldstrom: [00:15:11] And the example I’d like to give best is just a phone, like the iPhone, you know, the perceived need is it’s a communication tool, right? It’s a way I can look up things on the internet, call my friends, text whatever. But it’s actually a security blanket for people. That’s their latent need. They feel a sense of connection and they need it. And when they don’t have it, it’s a problem. So, when people buy, you have to understand both the perceived and the latent needs when you’re looking at your customer profile.

Mike Blake: [00:15:43] Steve Jobs is so good at that, by the way. I mean, he was the Mozart of understanding that latent need, wasn’t he?

Andy Goldstrom: [00:15:50] He created a market, which is hard to do. He created several markets.

Mike Blake: [00:15:54] More than once.

Andy Goldstrom: [00:15:54] Yes, he created several markets. And so, yeah, he was the master at that for sure. Other elements are attitude. So, it’s the values and beliefs of the customer profile or the customer. Behaviors, which are use cases, meaning how they will consume the product or service and then, their purchase preferences, like what information? Do they need to understand what they’re buying? What channels are they going to find in order to be able to purchase it via online or store or in-office or somewhere else and how frequently they may purchase. So, if you understand all of those things in a data-driven way, you can actually put on a whiteboard, you know, with the customer in the center, all the different elements that influence their buying behavior and understand what your customer looks like.

Mike Blake: [00:16:48] Now, when you say data, that can scare some people. And it doesn’t even have that much to do about understanding how to do basic math, but data can also be very expensive, right? Some of the things you’re talking about on the surface sound like you’ve got to hire a marketing research firm to do surveys and focus groups and all those things can be very expensive. Is that true? Do you have to go that way or are there ways you can get data that is at least sufficient, where you’re not making multi-thousand-dollar investments in specialized studies?

Andy Goldstrom: [00:17:26] Sure. It depends on the scale and the size of the product or service that’s being implemented. There are a lot of resources that are available that don’t cost any money that are just on the net. PricewaterhouseCoopers has information. You look for companies that have traded and see what the profile of that competition looks like. There’s a lot of opportunity to find things on the net. At Georgia State where I teach, they’ve got a myriad of resources. You can find it through the SBA. There are a lot of different ways to do it.

Andy Goldstrom: [00:18:03] There certainly are paid resources where you can hire, you know, a professional firm that collects that information and does that all day and night and is an expert in that. And if you have the resources to do it, that might not be a bad thing. But ultimately, the data is not just looking up facts and figures. It’s actually engaging with prospective customers to get feedback on what their beliefs are and why they would buy something and what their feedback is. And there’s a term called ethnography. You ever heard of that term?

Mike Blake: [00:18:39] I have.

Andy Goldstrom: [00:18:40] There you go. Well, ethnography is direct observation and interviewing of potential customers, suppliers and partners, right? And if you are trying to get data or feedback from potential customers and you’re doing it on the phone or you’re doing it via email, you’re not going to get—the quality of the feedback you’re getting and the context of the feedback you’re getting isn’t going to be as good.

Andy Goldstrom: [00:19:09] And I can assure you that whether it is Procter and Gamble or McDonald’s or, you know, some of the other small to medium companies that I typically consult with or the students in my class, they get in front of their ideal client to be able to actually understand that feedback. And they draw on some other sources of information in order to understand the income brackets and things of that nature in order to do it. And they typically say you need 10 to 12 quality interviews or discovery sessions in order to develop a pattern or have enough of a sense. And certainly, you know, some companies go well beyond that.

Mike Blake: [00:19:55] Interesting. So, what you’re talking about resonates with a couple of things. One, Atlanta has an interesting technology market. You know, we’re not Silicon Valley, but we’re very deep in a few areas, right? And the venture market, in my view, has improved tremendously over the last 10 years or so. But one of the practices that is very much involved here, I think, more so than other places is something called customer discovery, where investors want entrepreneurs to have gone out and talked to lots of potential customers. In fact, in the Georgia Tech and Emory entrepreneurship programs, you cannot graduate without having actually gone out and talked to potential customers, even for a hypothetical venture. They make you develop that skill.

Andy Goldstrom: [00:20:49] I do that with my students, too.

Mike Blake: [00:20:50] You do, too.

Andy Goldstrom: [00:20:51] Absolutely.

Mike Blake: [00:20:51] Okay. And what a valuable skill and valuable asset that is. And it’s interesting that that intersects with a recent experience of mine. In preparation for the strategy meeting that I described, I read twice Michael Porter’s book on competitive strategy. And Appendix B, I think, of that book is entirely dedicated to the practice of interviewing customers and developing customer profiles, which I did not expect. I didn’t think it would be that granular.

Andy Goldstrom: [00:21:24] It is. And the way you ask the questions is really important. As an example, you want them to be open ended and not be yes or no answers.

Mike Blake: [00:21:34] And I think it might have actually been the most useful part of the book I read. I’m so glad because normally, I’m so happy I got to the end of a book that I skipped the appendices. For whatever reason, I didn’t this time. And I’m really glad because that is so chock-full—because conducting a customer interview is not walk into an office and just start asking questions.

Andy Goldstrom: [00:21:58] Appendices are where you get most of your charts, right, Michael?

Mike Blake: [00:22:02] They are.

Andy Goldstrom: [00:22:03] There you go.

Mike Blake: [00:22:03] They are, yeah. Especially in academic papers, for sure. So, what are some signs that maybe you have a customer profile that’s not working?

Andy Goldstrom: [00:22:21] The signs that it’s not working is you’re not getting traction.

Mike Blake: [00:22:25] Okay.

Andy Goldstrom: [00:22:25] Right? So, if you have initial traction with innovative customers who can validate, you can solve their problem, then you know you probably have the right customer profile. And a lot of people don’t because they’re not data-driven or they’re too broad in their customer profile that they’re focused on. And so, you know, results speak. And there’s actually something called the law of diffusion of innovation. Long, interesting, impressive set of words that I believe in, but I haven’t put together, that kind of tells you where your tipping point is relating to having that kind of traction. And it’s why people accept new ideas.

Mike Blake: [00:23:09] I love that. So, like calculus in it.

Andy Goldstrom: [00:23:12] It does. It does.

Mike Blake: [00:23:12] When you work it through. So, you’re talking dirty to me now. But I think where I want to get to is I think executives and entrepreneurs sometimes fall into the trap of thinking that they’re failing to get traction not because they have the wrong customer profile, but because they are not executing approaching that customer profile well or correctly or maybe they don’t have enough resources, right?

Mike Blake: [00:23:42] So, theoretically, maybe you do have exactly the right customer profile, but the thought process goes, “You know, we know who our customer is, but we just don’t have the right salespeople. The salespeople aren’t doing their job. Marketing is not doing their job. We don’t have enough money to get in front of those customers”, et cetera. You’ve heard all these things before, right? And this is a hard question, but that’s what we’re about on this podcast. The hard question is how do you know if your failure to gain traction is in fact the result of poor execution versus having the poor, the incorrect foundational customer profile?

Andy Goldstrom: [00:24:21] You’re right. It is an excellent and complex question. And it could be something else, right? Your sales team might not be executing well. Even though you have the right customer profile or avatar, you might not be executing once you get the sale, which impacts your reputation and ability to sell. So, there are a lot of different aspects to it. And all you have to do is be able to measure with certain KPIs about each stage of that process to get the appropriate feedback.

Andy Goldstrom: [00:24:59] And certainly, if you’re not getting any inbound interest, if you’re not getting good feedback on what your product or service could be, if there’s not a problem that you’re solving, you’re not going to pass go. You’re not even going to get started. And then, there’s the question that you have to measure, is, okay, a sales cycle is a multi-stage process, right? You have to have marketing and good salespeople and a good value proposition and good references. And they all have to work together. But if you don’t have the right target, none of it matters.

Mike Blake: [00:25:30] And the main part of it goes back to what we just talked about a few minutes ago, which is maybe you just ask the question, “Why did I think I had the right customer profile? Did I do the work that you just talked about in terms of actually going out and talking to 10, 15 customers? And did I do so in kind of a rigorous way?” You revisit how you got to the customer profile.

Andy Goldstrom: [00:25:55] The first Inc. 500 company I was with, I joined in 1995 and we grew really quickly in a period of time and became an Inc. 500 company in 2001. And we didn’t have all these tools, a business model, canvasses and customer profiles and avatars and things like that. We just had good common sense to be able to see a need in the marketplace that we could solve, there were changes going on in the marketplace. Getting some customers who were lead innovative end users who were willing to give us feedback and also pay us for the service even though it wasn’t fully fleshed out yet.

Andy Goldstrom: [00:26:46] And so, in essence, we were doing those things in a less structured way. And it provided validation along the way. Now, there are amazing tools and methodologies that are used in corporations by consultants who understand this stuff. It’s taught in schools. And if you use it right and do the right due diligence, you’re reducing your risk. And being an entrepreneur or being somebody who’s an intrapreneur in a bigger company, who’s trying to target a new business, what you’re trying to do is you’re trying to peel the onion back and reduce the risk in each stage.

Andy Goldstrom: [00:27:26] And so, if your customer profile is right and you were talking about discovery that investors in Atlanta are looking for, if you’ve done that discovery correctly, you’re reducing the risk and you go on to the next stage in terms of—and if you’re looking for investment along the way, like beyond friends and family to angels and series A and series B, you have to have reached certain milestones in terms of revenue, customers, discovery that you’ve done in order to get to those platforms.

Andy Goldstrom: [00:27:58] And then, the best companies are ones that actually start with a narrow solution to a problem via a product or service and then, they build on it modularly. So, an example is like Salesforce. Salesforce started out with like a free type of app or free system, where you could manage certain aspects of your CRM, but then, they have higher level premium services that you can choose based upon the number of users or the sophistication that you want. But it’s built on the same chassis, just like an Infiniti is, you know, built on a Nissan chassis.

Mike Blake: [00:28:42] Now, let’s move up from the startup into maybe a more mature company. At some point, presumably somehow, whether they do it analytically or reluctant with, they had a customer profile match and a successful identification, can a customer profile change? Is it possible that, you know, once a company reaches a more mature stage, they see sales growth drop off or maybe even retrench? Is it something that executives need to look out for, as maybe your customer profile can change over time?

Andy Goldstrom: [00:29:18] It can almost change overnight. So, you really have to stay with the times. And the reason things change overnight is innovation, communication channels, time and social systems have all been compressed. And the communication channels have been compressed because of the internet. The social systems have been compressed because of social media. And time has been compressed because of technology. So, what happens is trends change and preferences change and you need to keep up with that. Some of the big trends are relating to demographics, millennials and baby boomers on both sides of the spectrum in terms of their needs and in the size of that demographic.

Andy Goldstrom: [00:30:08] Technology and regulation are all changing. So, an example of a trend that, you know, could change very quickly or has changed is people weren’t as concerned about their health. You know, they cared about their health, but they weren’t as concerned. And, you know, there’s a big push and it’s not so new anymore. But all of a sudden, things change when people really cared about organic and pure products and, you know, there are a lot of vegetarians and vegans. And I think, you know, Amazon purchased Whole Foods for a variety of reasons, including distribution. But one of the reasons was to reach that audience, which is growing.

Mike Blake: [00:30:49] You know, one of those areas where I’m seeing it, we’re recording on Valentine’s Day today, although this will be published probably closer to St. Patrick’s Day.

Andy Goldstrom: [00:30:57] Happy Valentine’s.

Mike Blake: [00:30:58] Happy Valentine’s Day and happy St. Patrick’s Day coming up and whatever else is coming up. But you know, one of the things I sort of had to do in order to purchase for my wife is she’s big into the fair-trade chocolate now, which is harder to get, right? Organic chocolates, not hard to get now. But then, you got to make sure that it’s fair trade, which is an up and coming trend.

Andy Goldstrom: [00:31:23] Sure.

Mike Blake: [00:31:24] I’m not sure that’s overnight, but these customer profile things, I think, change the way a lot of things do. The change is very subtle for a long period of time. And then, it seems to sort of change overnight. Organic food was definitely like that. You know, this meat alternative, Beyond Meat and so forth, I think, looks like that. And fair trade may be the next thing which will delight me because I spent more time looking for fair trade chocolate than I think the whole of my Christmas shopping this year. So, it can’t happen fast enough.

Andy Goldstrom: [00:31:56] Did you find it?

Mike Blake: [00:31:57] I did eventually. Yes.

Andy Goldstrom: [00:31:58] Okay.

Mike Blake: [00:31:58] I did. And in a nick of time because my wife is actually on—she and my children left on vacation today. So, I had to come through it last night and I did. It was a buzzer beater.

Andy Goldstrom: [00:32:08] Good for you.

Mike Blake: [00:32:11] We touched on this a little bit, but I want to come back to it because I think it’s important to hit. Companies can evolve into multiple customer profiles, too, right? It may not be that your customer profile is wrong, but you may need to add to it, correct?

Andy Goldstrom: [00:32:26] You do, but there’s a method that you need to evolve in order to do that.

Mike Blake: [00:32:33] Okay.

Andy Goldstrom: [00:32:34] And again, whether you’re in a startup or whether you’re an established firm, you don’t just all of a sudden cater to try to cater to everybody. And so, what you usually try and do and what we teach and what I work on with my clients is getting a beachhead strategy. So, it’s what’s a use case for a particular customer that you can focus on in that first year? Use the law of the diffusion of innovation, where you can actually get some market share and prove up and get some cash in the door.

Andy Goldstrom: [00:33:10] And then, you can grow from there to other use cases to other types of customers with other different profiles. And that could work. In the chocolate case, for instance, there are some people who eat chocolate because it’s a snack. There are some people who eat it because it’s healthy for them. They have these, you know, health bars now Clif Bars and other things. And some people want to give it as a gift, right? And then, there are different customer types along those lines depending upon their age bracket.

Andy Goldstrom: [00:33:42] So, you can’t be everything to everybody out of the gate, but if you focus on one of those uses and one of those age brackets to get started, to get traction, then you can leverage and go from there. And that’s the best way to do it. There’s a client I have in town that is a technology company that does app development and they do training. So, they’ll train people how to be app developers or to have the newest, latest and greatest to do it. And they also develop apps. They were trying to go out to both customers and the message got mixed and diluted.

Andy Goldstrom: [00:34:24] And so, they didn’t know, their customer base didn’t know what they really were and this company itself didn’t know where to really put its resources into because they thought that the growth area was the one that was the low-margin business, which isn’t necessarily a good play. But they thought that that was where they wanted to put their emphasis and they really had to pick and choose one. And when they did, which was, “We’re an app developer”, their business took off.

Mike Blake: [00:34:55] Now, when a customer profile changes, it can be an existential threat to the company if it comes as a surprise to you and you don’t act upon it, right? I mean, you know, Microsoft was putting a lot of trouble because, you know, Steve Ballmer just blew it on mobile. And it caused them a lot of problems, I would argue Major League Baseball has some issues because their customer profile is primarily White and older. And that’s not the way the demographics of the country are currently going. That’s something they’ve got to figure out. Is customer profile so important that if it changes on you, do you agree that it actually could be a company killer?

Andy Goldstrom: [00:35:43] No doubt.

Mike Blake: [00:35:44] And if so, once you make that discovery, let’s say you’re kind of late to the game, say, “Crap. My customers just flat out changed. They don’t want a beef anymore. They want to eat something that’s not beef”, right? But all I do is I raise cattle, right? How do you go about kind of a crash course, if you will, to basically kind of save the company if you’re late to the game and you make that realization or by that point, is it already too late?

Andy Goldstrom: [00:36:20] The answer is it depends.

Mike Blake: [00:36:22] Okay. Yeah.

Andy Goldstrom: [00:36:22] Right?

Mike Blake: [00:36:22] I figured.

Andy Goldstrom: [00:36:22] So, you’re talking about baseball. I’m a big baseball fan. Grew up as a stats guy and loved baseball. And you saw what happened here in Atlanta. Atlanta saw that the demographics were changing and they actually moved their stadium to where the demographics were more applicable to them.

Mike Blake: [00:36:39] Yeah.

Andy Goldstrom: [00:36:39] Now, not everybody can pick up and change like that. That was an expensive proposition for them, but it seems to have paid off. But for other businesses, you want to be in the growth area, not the mature area of a business. And so, if you’re trying to make a pivot, you can certainly make that pivot, but you don’t want to change your business. You want to find customers that are a better fit for what you have. And so, if it’s a new business, hopefully, you can do it right the first time and adjust along the way.

Andy Goldstrom: [00:37:16] But if it’s an existing business, find new customers that are a better or closer fit. And the reason, primarily, is you’ve got all this investment and knowledge in your existing business, don’t try to be something that you’re not just because you’re trying to chase something, because you’re not going to have the knowledge or the relationships or the understanding to be able to actually solve that problem. So, find a problem based upon where you are and what you have and you can make subtle adjustments to it, but don’t try to be something that you’re not all of a sudden.

Mike Blake: [00:37:48] So, interesting. What I take away from that is one, option for a company that finds that their customer profile has shifted and maybe their business can’t necessarily shift with it as easily. Let’s take the beef example. All right. Maybe that means you get out of mass-market beef, but then, you switch to a niche market of organic or Kobe steaks or something that is lower volume, but higher margin, something like that as, you know, a ham-handed example.

Andy Goldstrom: [00:38:20] Sure. You know, if you’re Burger King, which came out with, I guess, the Impossible Burger first and was the one that kind of made the name, their distribution channels and the way that they serve their customer didn’t change. So, they had a lot of things in place. All they had to do was get the raw product to be able to serve it. Most other customers don’t, you know, have a bigger change than that.

Mike Blake: [00:38:46] I’m going to be really interested to see how Burger King does with that, because I actually like an Impossible Burger, but I’m not sure what the use case is because if you bother to look at the nutritional information, it’s for the most part unhealthy for you in a different way than conventional beef.

Andy Goldstrom: [00:39:06] It’s still just caloric, is it?

Mike Blake: [00:39:08] It is just as caloric. It is a lot less cholesterol, but it is massively higher in sodium, right? So, it’s a different kind of-

Andy Goldstrom: [00:39:17] So, we talked about latent needs.

Mike Blake: [00:39:19] Yeah.

Andy Goldstrom: [00:39:22] People who care about animals and don’t want—you know, some people are vegetarians because it’s for their health, but some of it don’t want animals to be killed.

Mike Blake: [00:39:31] And also environmental, right? We’re now hearing that-

Andy Goldstrom: [00:39:33] So, it’s an environmental thing so that’s serving a latent need that they’re trying to cater to as opposed to just people who just want to eat supposedly healthier.

Mike Blake: [00:39:42] Right. But I don’t see that that in their commercials yet, right? Maybe that’s their next phase. Right now, it’s, “Hey, this is just as good as any other Whopper, so you might as well have one.” But I don’t see the—I guess they’re just saying, “Well, if you’re just inclined to eat vegetarian, anyway, here it is.”

Andy Goldstrom: [00:40:02] Businesses don’t typically promote latent needs, but they need to understand them in order to capture the business.

Mike Blake: [00:40:11] Interesting. So, I’m being blatantly unfair, by the way. This is off-the-cuff questions for Andy. I’m asking to analyze a strategy of a multinational corporation real time. So-

Andy Goldstrom: [00:40:23] And I haven’t had an Impossible Burger yet, but I’ve heard it’s good.

Mike Blake: [00:40:28] Now, I’m getting hungry. So, how long do you think it takes to develop or maybe redevelop a customer profile?

Andy Goldstrom: [00:40:39] Depends on the size.

Mike Blake: [00:40:40] Does it have to take years?

Andy Goldstrom: [00:40:41] No, not if it’s done right.

Mike Blake: [00:40:44] Okay.

Andy Goldstrom: [00:40:44] So, you know, in my classroom, we’ve got people, young students, some of them are as old as 27, 28 because they’ve worked full time and they’re going back to school or, you know—but some of them are 18, 19, 20 years old who actually go through what we’re doing and are actually able to launch a business that I stay in touch with them. And they’ve actually launched fruitful businesses. One is launching a supplement product for gamers.

Mike Blake: [00:41:21] Okay.

Andy Goldstrom: [00:41:21] That’s specific to gamers. There’s another one that has an app that actually connects people to hold them accountable at the student level, where when it comes to health or getting somebody who can study with you or go to the gym. And they went through a process over several weeks as opposed to months and years to actually validate that that used the right tools or methodologies and did that.

Andy Goldstrom: [00:41:46] And when I work with my clients, it’s the same kind of thing. It doesn’t require push—you know, you don’t have to be Sisyphus. We’re not trying to push the boulder up the hill. You really can do it relatively quickly. And obviously, if you’re in a larger corporation, there are more stakeholders to please. That doesn’t mean the work needs to take longer. It just means that there are more stakeholders who you need buy-in from.

Mike Blake: [00:42:12] And it’s worth emphasizing. You have students that are doing this.

Andy Goldstrom: [00:42:15] I have students that are doing this and doing it well. And some of them, it’s just a practical exercise in class that instead of it just being a textbook kind of thing, which makes it more real, but some of them are actually pursuing these business opportunities and have been successful at it, believe it or not. And it’s exciting. And then, what I do with my clients, you know, it’s just as exciting because frankly, there’s more at stake.

Mike Blake: [00:42:46] Yeah.

Andy Goldstrom: [00:42:46] You know, they have families to feed. They have house, you know, mortgages. And they don’t have unlimited resources in terms of money or time or cash. And so, making the right choices and the right decisions along the customer profile route or how they manage their money or how they operate as they grow is really important. And I take a lot of pride in how I work with customers to do that.

Mike Blake: [00:43:11] And we are running out of time, so we’re going to have to wrap it up. This is a topic that, you know, probably deserves a lot more treatment than we’re able to give it in the span of one episode. But if people want to contact you to learn more about this topic, can they do so? And if so, what’s the best way to do it?

Andy Goldstrom: [00:43:28] Sure. Well, Michael, thanks for your time. I hope, you know, we covered enough, that people that were listening actually understand how important it is. And maybe it piques their interest or reinforces what they’re doing correctly or makes them think a little bit harder about what they need to do in order to really hone in on, you know, who they’re approaching and how they’re marketing their services or products.

Andy Goldstrom: [00:43:52] I can be reached at midcourseadvisors.com. My company is named Midcourse because it’s kind of the mid-course of a journey of a company, where adjustments need to be made. And my email address is agoldstrom@midcourseadvisors.com. And my phone number 770-633-2260. And you can find me on LinkedIn. And be happy to talk to anybody, to share, to learn about their perspectives and share any background I have.

Mike Blake: [00:44:19] Well, that’s going to wrap it up for today’s program. I’d like to thank Andy Goldstrom so much for joining us and sharing his expertise with us. We’ll be exploring a new topic each week. So, please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: customer avatar, customer profile, Decision Vision, Decision Vision podcast, Michael Blake, midcourse advisors, Mike Blake

Decision Vision Episode 54: Should I Fire My Attorney? – An Interview with Jeff Berman, Berman Fink Van Horn, PC

March 5, 2020 by John Ray

should I fire my attorney?
Decision Vision
Decision Vision Episode 54: Should I Fire My Attorney? – An Interview with Jeff Berman, Berman Fink Van Horn, PC
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should I fire my attorney?
Mike Blake and Jeff Berman

Decision Vision Episode 54: Should I Fire My Attorney? – An Interview with Jeff Berman, Berman Fink Van Horn, PC

“Should I fire my attorney?” is a question a lot of business clients consider, particularly in emotionally-charged situations such as litigation. “Decision Vision” host Mike Blake explores different aspects of this question with veteran business attorney Jeff Berman of Berman Fink Van Horn PC. “Decision Vision” is presented by Brady Ware & Company.

Jeff Berman, Berman Fink Van Horn, PC

should I fire my attorney?
Jeff Berman

Berman Fink Van Horn is a full-service law firm that provides legal services to a diverse group of clients in the areas of business and real estate litigation; non-compete and trade secrets; mergers, acquisitions and corporate finance; labor and employment; banking & creditors’ rights; commercial real estate; and general legal services for mid-market companies, family-owned businesses and entrepreneurial/start-up endeavors. Their attorneys take great pride in delivering results-driven, high quality experience based on knowledge, expertise and a personal touch unique to Berman Fink Van Horn.

A Shareholder at Berman Fink Van Horn, Jeff Berman leads the firm’s corporate and business practice. In addition to day-to-day business matters, this practice includes mergers and acquisitions for middle market companies, employment agreements, succession and estate planning for business owners, commercial real estate and contracts and agreements of all kinds. In the community, Jeff serves on the Jewish HomeLife Board of Directors and as Chair of the Business and Strategic Planning Committee. He is a Georgia native, having grown up in Augusta. Jeff graduated from the University of North Carolina at Chapel Hill and Emory University School of Law.

For more information, go to the firm’s website.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions, brought to you by Brady Ware & Company. Brady Ware is a regional, full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owner’s or executive’s perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:40] My name is Mike Blake, and I’m your host for today’s program. I’m a Director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:04] So, today, we’re going to talk a little bit about a somewhat contentious topic, which is, should I fire my lawyer? And I want to address this topic because as a business advisor, I’m asked to frankly opine on whether or not a client is getting good representation from their lawyer and maybe why that is. And now, I’m not an attorney. I don’t opine on matters of law. I have no idea if somebody is getting good legal advice or not. But I think what we’re going to find is that the legal advice itself is a fraction of what goes into a constructive or a non-constructive client-lawyer relationship.

Mike Blake: [00:02:04] And I like this topic because I think as a service provider myself, with some of our clients, we do go through our ups and downs. Sometimes, it’s something that I wish I would have done differently. Sometimes, it’s really nobody’s fault of their own. And sometimes, you find that maybe that isn’t a relationship that’s working, and it really is best for both parties to kind of go their separate ways. And in other cases, it’s actually an opportunity to kind of strengthen the relationship.

Mike Blake: [00:02:40] But a lawyer, legal counsel is one of the most important and intimate relationships you can have in business. I think that, particularly, in United States, because we have such a highly developed legal culture and the nature of a lawyer as a business advisor I think is as strong here as it is in any place in the world. And it’s really hard to do business well and the long term if you don’t have great legal advice. And if you’re really not getting the kind of relationship that you want, then maybe you should think about changing.

Mike Blake: [00:03:15] But I think the part where I caution my clients on making a change is understand what is it exactly that you’re unhappy about, right? Understand what is it that that your legal counsel can reasonably impact versus maybe they’re getting you the best out of a suboptimal situation. And in fairness, in about a month or so, we’ll record a podcast, and should I fire my CPA, too. So, this is not taking a shot at lawyers.

Mike Blake: [00:03:50] It’s really trying to walk through what I think is a healthy process that when you have people in your circle who are trusted advisors, I think it is critical that, every once in a while, you take a step back, and you reassess, “Is that trusted advisor relationship working as well for me as it can and should? And if it’s not, what is the remedy? Is the remedy to, then, make the relationship better or is the remedy to terminate the relationship and do something else?” But spoiler alert, it’s not, “I’m pissed off today. And so, I’m just going to fire everybody and move on.” That’s usually not the right—sometimes, it’s the right answer but, usually, it’s not. And we’re going to kind of walk through that today.

Mike Blake: [00:04:41] And joining us today to talk about this topic is my pal, Jeff Berman, who’s a partner and co-founder of Berman Fink Van Horn. Berman Fink Van Horn is a full-service law firm that provides legal services to a diverse group of clients in the areas of business and real estate litigation, non-compete agreements and trade secrets, mergers, acquisitions and corporate finance, labor and employment, banking and creditors rights, commercial real estate and general legal services for mid-market companies, family-owned businesses and entrepreneurial startup endeavors. Their attorneys take great pride in delivering results-driven, high-quality experience based on knowledge, expertise and a personal touch unique to Berman Fink Van Horn.

Mike Blake: [00:05:24] A shareholder at Berman Fink Van Horn, Jeff leads the firm’s corporate and business practice. In addition to day-to-day business matters, the practice includes mergers and acquisitions for middle-market companies, employment agreements, succession and estate planning for business owners, commercial real estate and contracts and agreements of all kinds. In the community, Jeff serves on the Jewish HomeLife Board of Directors and is Chair of the Business Strategic Planning Committee. He’s a Georgia native, having grown up in Augusta, Georgia, graduate of the University of North Carolina at Chapel Hill and Emory University School of Law. Jeff Berman, thank you for coming to the program.

Jeff Berman: [00:05:59] My pleasure. Thank you, Michael, for having me.

Mike Blake: [00:06:01] And really thank you because I think it’s brave to talk about this topic. And frankly, that’s why I reached out to you because I don’t think everybody would have the courage to talk about this this topic. Because it is sensitive and it requires, I think, vulnerability and introspection and self-reflection to some extent. Because I won’t put words in your mouth, but I’ll put myself up out there, you know, not every client relationship I’ve had in my career has lasted forever and has been happily ever after. And sometimes, it’s appropriate for that relationship to end.

Mike Blake: [00:06:43] But there are a lot more people, frankly, who have legal counsel in their circle than some idiot valuation guy like me. And so, I think there’s a much wider appeal to this discussion. So, again, kudos to you for being willing to address it, though I’m not at all surprised. So, let me dive right into it. You know, how often do clients fire their lawyers? Is that a fairly common occurrence? Is that rare? Is it all over the board? What’s your experience in that regard?

Jeff Berman: [00:07:13] I think my experience and I think it’s different from, say, a litigation practice, a lawyer that practices litigation and a lawyer that’s in a transactional corporate practice, which is what I’m in. And I think a lot of it depends upon the type of practice. For instance, a lawyer that handles divorces. Those lawyers are probably attuned to people are going to fire them because people do not like their divorce lawyers.

Mike Blake: [00:07:46] And talking about an emotionally-charged situation anywhere where you’re probably walking in mad.

Jeff Berman: [00:07:50] Correct. I’ve had family lawyers, divorce lawyers tell me that they are reluctant to even referred their clients to, say, a financial adviser because by the time the relationship between that divorce lawyer and their client end, the client hates the lawyer. So, therefore, they’re going to hate the financial advisers. So, they know, going in, there’s a lot of risk. PI lawyers, probably a high-

Mike Blake: [00:08:17] Personal injury.

Jeff Berman: [00:08:17] Yeah, personal injury lawyers probably a high risk also. Generally, though, people do fire their lawyers. And as a lawyer and I know we’ll talk about as we go on today, that’s fraught with a lot of anxiety. And many times, it’s fraught with making a mistake. So, I know as we go on, we’ll delve into that a little bit more. It does happen and probably, it happens pretty frequently. We’re fortunate in my firm that it doesn’t happen a whole lot.

Mike Blake: [00:08:54] Yeah.

Jeff Berman: [00:08:54] And I think it’s the way we deal with clients that prevents it from happening with us.

Mike Blake: [00:09:01] Yeah. And sometimes, this is not necessarily something—the relationship goes both ways necessarily and interestingly, I think to this day, our most popular podcast is on the topic, should I fire a client? And that was the second one that we did. And that one just sort of blew up and put us on the map. I did not think it would have been that popular, but it was. But, you know, sometimes, I think lawyers do fire their clients as well, right?

Jeff Berman: [00:09:27] Absolutely. When I was very early in my practice, n older attorney said to me, “Jeff, don’t take every client that walks in the door.” And that is advice to live by. Most law firms should have engagement letters. And those engagement letters typically would explain the reasons why a lawyer may terminate the relationship. For instance, our engagement letter says that if a client insists upon us presenting a claim or a defense that isn’t warranted by law, and we don’t think there’s a reasonable expectation that the law could change. That’s one reason we would fire a client.

Jeff Berman: [00:10:13] If the client wanted us to pursue some illegal activity, that would be a reason we would say we need to terminate this relationship. If the client doesn’t pay us, that’s a big one, of course. We are a business and that’s how we earn our living. But if a client doesn’t pay us, that is grounds for us to terminate our relationship. And generally, if the client just fails to cooperate. If we need to have a conversation about a particular matter and we need to have it today or tomorrow and the client just disappears, we’re not going to be able to provide the service the client wants. They’re going to be unhappy. That’s a reason to terminate a relationship.

Mike Blake: [00:10:56] In my own experience, one thing, I think, at which I have improved, I’m certainly not perfect, now, I like to think it’s one of the benefits of aging and having gray hair and two arthritic ankles is, I’ve learned when to fire clients as well, and walk away from clients. And doesn’t mean that they’re bad people, but one thing I’ve observed in my life, in my career is that I can tell you the letter, every client that I regretted taking, there’s not a single client I can identify that I regretted walking away from.

Jeff Berman: [00:11:36] Agreed.

Mike Blake: [00:11:37] Right.

Jeff Berman: [00:11:37] Yes.

Mike Blake: [00:11:37] There wasn’t, “Why did I do that?” Right? But every time I’ve walked away from one, like yeah, that was the right decision.

Jeff Berman: [00:11:45] And we still talk about those type of clients all the time in our office as a learning experience. This was a reason it didn’t work. Avoid this in the future.

Mike Blake: [00:11:53] The cautionary tales. Not for us, just for us, our partners and our younger associates, right?

Jeff Berman: [00:11:57] Absolutely.

Mike Blake: [00:11:57] “Don’t do it the way that I did it.”

Jeff Berman: [00:11:59] Correct.

Mike Blake: [00:12:00] So, you know, I hadn’t thought of this, but to me, it’s intuitively right that certain kinds of law, I think, are more prone to changing legal counsel. And probably, the more emotionally-charged the matter is, the more likely it is, I guess, you’re going to change, which implies to me that the decision to change legal counsel is largely or a very heavily emotionally-charged decision.

Jeff Berman: [00:12:23] Yes.

Mike Blake: [00:12:23] Is that fair?

Jeff Berman: [00:12:24] I think yes.

Mike Blake: [00:12:25] And so, is emotion a big driver then behind that decision? And if so, what are the emotions you think that kind of take charge or lead that decision process?

Jeff Berman: [00:12:39] I think that a lot of lawyers or if clients are going to leave lawyers, there’s probably a litany of reasons. And emotion is a very big driver in that. It’s important that a lawyer communicates with their client. And communication is certainly sending emails, sending text, making phone calls when there’s something really important. You don’t want to send a client a really important matter or issue by email, call them.

Jeff Berman: [00:13:12] Communication is also, you want that client to be involved in decisions. You want the client to be engaged. You want them to be involved in their case. And if they’re not, they’re going to drift away. In litigation, again, to separate that from, say, a transactional practice, in litigation, if a matter is in court and a motion is lost, something that the client is asking the court to do, and the court disagrees, clients take that hard. And emotionally, they are very unhappy.

Jeff Berman: [00:13:50] If the attorney had communicated, had explained the risk, had explained that they could lose, but it’s worth the risk, then the client is much more likely to stay. I think clients hate to bring up billing again, but billing is one of those reasons that clients may leave. They may not understand clearly the billing process. So, it’s incumbent upon the lawyer to explain that early, early, early in the process. And for instance, in addition, at at our firm, our bills are extremely detailed. We believe clients pay more attention to our bill than they made to anything else they get from our law firm.

Mike Blake: [00:14:31] Right.

Jeff Berman: [00:14:31] And if you just simply say work performed $X, that doesn’t tell them what you’re doing. So, that’s a form of communication for us. Also, if a lawyer is unprofessional, the lawyer doesn’t show up on time for a meeting, doesn’t appear to be prepared, that may be grounds to at least start thinking about, “I may need another lawyer.” Sometimes, clients don’t agree with how a matter is being handled. And again, you want to communicate with your client, explain why. But if the client’s unhappy, then they may well terminate the relationship. If the lawyer seems incompetent and sometimes, that’s difficult for a client to tell because we’re the lawyers, they’re not. They’re seeking advice from us.

Jeff Berman: [00:14:31] And if you’re talking to your lawyer and that lawyer just does not have answers to probably issues that you would think they should, then maybe they’re not the right lawyer. And that should be a reason to consider moving on to another attorney. And maybe finally, just incompatible styles. Some lawyers are bulldogs, some lawyers are not. That doesn’t make one better than the other. But if you’re a client that want somebody just to go beat the other side over the head and your client’s not that bulldog, it’s a relationship that’s prone to be unsuccessful. So, that would be a reason, I think, that a client would move on to another to another lawyer.

Mike Blake: [00:16:03] Let me sink my teeth in that last one a bit because I think that’s really interesting. I don’t do litigation. I’m not a particularly good or enthusiastic expert witness. But I know enough about the process. I can talk about it intelligently. And when I’m asked for a referral to a litigation attorney, I often will counsel my clients to hire somebody that is the direct opposite of who they are emotionally, right? In other words, if I have a client who I sense is a passive type that I think has a bias towards conciliation, then I think a more aggressive attorney serves them well because that attorney’s going to counterbalance that and make sure they’re not leaving opportunities on the table that they should be more aggressive in pursuing.

Mike Blake: [00:16:03] Conversely, if I have somebody that I know is loaded for bear and they’re very combative and they just want to run to the courtroom, I tend to refer to them an attorney that I know is going to oppose them, I think, you know, that likes to negotiate, that likes to try to settle things and find that middle ground where appropriate to help manage expectations, for example, that you’re not going to have two people charging in, thinking they got a slam-dunk case when, in fact, that they don’t. I’m curious what you think about that about that mindset.

Jeff Berman: [00:17:34] Michael, I know that the advice you’re suggesting is well-meaning, but I tend to disagree with it.

Mike Blake: [00:17:42] Good.

Jeff Berman: [00:17:43] I think that if a client is looking for someone to just pound away and be extremely aggressive, if you pair that client with a more reasonable attorney, reasonable is probably not the best word, but calmer, more deliberate attorney, that client’s going to get incredibly frustrated. It happens. I’ve seen it. Likewise, if you are a client that is calm, is thoughtful, wants to be sure they’re making the right decision and wants a lot of interaction with the lawyer and explanations on why things are being done the way they are, I think that that client will work better with the lawyer that provides that kind of service. Litigation is incredibly stressful for everybody, including the lawyers.

Mike Blake: [00:18:41] Yeah.

Jeff Berman: [00:18:41] And if that relationship is not a relationship that you can sit down and have a beer with the person, you talk through the issues, it’s just not going to be a good relationship.

Mike Blake: [00:18:54] Interesting. Okay. So, I’m going to leave that there. I’m going to go back and process that.

Jeff Berman: [00:19:01] Okay.

Mike Blake: [00:19:03] One other thing that you brought up that I think is important and underrated is on billing, right? Yeah. I think my experience is that most clients are perfectly willing to pay for value, but they would like some transparency in it. And I’m delighted to hear that it sounds like you tend to be on the side of being overly detailed rather than undetailed in your billing. Is that a fair characterization?

Jeff Berman: [00:19:29] Very fair, yes.

Mike Blake: [00:19:30] And I discovered only recently in our firm, we’re the exact opposite. You know, when we sent bills out, I don’t always see kind of the final version as it goes out. I only learned that we don’t send out a lot of detail, which we are now going to fix.

Jeff Berman: [00:19:48] Good. Good.

Mike Blake: [00:19:48] Because I really don’t like that. I’m candidly surprised that we haven’t heard more objections from our clients over that, right? Even when we have a fixed fee, is mostly my model, I still think it’s important that the client understand kind of, you know, there was time spent and where was that spent and who spent it, right? I just think that’s a reasonable thing for a client to expect. And lack of transparency leads to lack of trust, which lets imaginations run wild, which then creates other problems in the relationship.

Jeff Berman: [00:20:19] And again, detailed bills also allow a client to see exactly what is going on so that it’s just another way to communicate with the client as to what’s going on in the case.

Mike Blake: [00:20:33] So, lawyers aren’t cheap, for the most part.

Jeff Berman: [00:20:37] Correct.

Mike Blake: [00:20:38] And most CPAs are not cheap either. Is it unreasonable to demand perfection?

Jeff Berman: [00:20:44] That’s a tough question to answer. I would start the answer by, to a client, what is perfection? Is perfection in a transaction asking in an employment agreement if you’re going to be the employee to get two years severance? And as a lawyer, you know, the employer is not going to give two years severance. If the client wants that and that’s perfection to them, then I’m not going to provide perfection because I can estimate that the employer’s not going to give that.

Jeff Berman: [00:21:24] So, understanding from the client what they think is perfection is important. On the litigation side, if you have a case and there are certain amount of damages that you believe you’re entitled to, and at the end of the day, you don’t get that, is that a failure of perfection or is it just a matter of the facts that you came to the lawyer with would not allow for the result exactly like you wanted? So, yes, you want a lawyer to do a really good job for you. And I think that’s the best we can provide. To anticipate perfection is going to lead you to being disappointed.

Mike Blake: [00:22:13] So, I want to expand upon that a little bit, especially in litigation. You know, I believe and please tell me if I’m wrong, you know, you can try a great case and still come up short.

Jeff Berman: [00:22:27] Absolutely.

Mike Blake: [00:22:28] Because you don’t control all of the outcomes, right? Even assuming for the moment, the client gives you everything you need, which isn’t always the case, but assuming the client even gives you everything that you need, judges make mistakes, juries make mistakes. I believe, anyway, you may not want to go on record saying that, but I firmly believe judges and juries make mistakes. I think they do it. I think they do it a lot because they’re human beings.

Jeff Berman: [00:22:53] And that’s why we have appeals courts. We have a process that if a mistake is made or perceived mistake, that there is a higher court typically that can review it.

Mike Blake: [00:23:05] Right. But it’s, you know, most lawyers don’t exist in a world in which they control every avenue, right? Even state lawyers don’t control everything. There’s always a probate court. There’s an unknown error, there’s something, there’s some variable out there that, you know, is just not reasonably foreseeable by any practitioner, right?

Jeff Berman: [00:23:30] Right.

Mike Blake: [00:23:30] And so, I think the way you responded to this question is really interesting because it’s really about understanding what is the standard of perfection, right?

Jeff Berman: [00:23:40] Yes.

Mike Blake: [00:23:41] And I guess what we’re really getting to is, the standard of perfection is, are you doing your best? Do you have a command of the facts and the law and have the capacity to put in the mental energy and focus required to be that vigorous advocate for your client?

Jeff Berman: [00:24:03] Correct. And it’s also, you need to set reasonable expectations for your client.

Mike Blake: [00:24:09] Yeah.

Jeff Berman: [00:24:09] And as long as you’re setting reasonable expectations and you can come close to those reasonable expectations, then arguably, that’s perfection.

Mike Blake: [00:24:21] Yeah.

Jeff Berman: [00:24:21] You’ve done what you said you could do and if you don’t accomplish it, as long as the client understands, you know, you’ve done the best you could.

Mike Blake: [00:24:32] So, if somebody decides they do want to make a change, what are they facing? What is the to-do list or the process look like? And I guess it probably differs, I guess, in the nature of the law that you’re practicing. So, answer this however you feel the most comfortable.

Jeff Berman: [00:24:48] Sure.

Mike Blake: [00:24:49] But what’s involved in changing legal counsel?

Jeff Berman: [00:24:51] It is very different from, say, a transactional lawyer, a corporate lawyer and a litigation lawyer or dealing with a litigation matter. A transaction lawyer can be fired on the spot and the client can walk in or send an email or text and say, “You’re fired.” And that’s the end of the relationship. You have to deal with, how do you move the file to a new attorney? But that, again, can be a pretty simple process. From the litigation side, it is much more cumbersome.

Jeff Berman: [00:25:25] From the litigation side, the attorney has to actually file something to withdraw. And that would be just the attorney wanting to withdraw. The client and the attorney could agree to a withdrawal. In both cases, a court has to approve it. Sometimes, new counsel and the client would enter what’s called a notice of appearance, where the lawyer is saying, “I am stepping in now to replace another lawyer.” So, in the litigation setting, it’s more cumbersome. For lawyers, they do it. But it’s still more steps. Whereas again, on the transactional side, it’s very easy to accomplish. The results of that change, you know, are not as simple as the actual change itself.

Mike Blake: [00:26:19] Right. Well, let’s talk about the transaction side here because that’s the area, I guess, where I feel most comfortable talking about. And I can appreciate, you know, on one level, you can sort of change attorneys and you don’t need anybody’s court permission, right? Pay the outstanding invoice. I imagine there’s some process that maybe is governed by bar ethics, I guess, in terms of turning over work files and doing so in a prompt fashion, I guess, you can comment on that. But even that isn’t necessarily costless. If you’re involved in a transaction, let’s say, and, you know, if I’m negotiating a deal with a party and then, midway through, the party changes attorneys, that can be pretty jarring to the discussion as well, can’t it?

Jeff Berman: [00:27:07] It can be very jarring. And you mentioned about at the termination of a relationship, paying fees and/or getting the file transferred. Ethically, we need to turn over the file. We can also say, “Wait a minute, we’re going to hold the file until you pay us.”

Mike Blake: [00:27:27] Yeah.

Jeff Berman: [00:27:27] The standard is if we are really negatively affecting the client by not turning over the file, whether we’ve been paid or not, that’s really the standard. And if we are going to be negatively impacting the client, then we need to go ahead and turn the file over and hopefully get paid later. Changing lawyers in mid-course, and I will talk as you want to in a transaction setting, I think the first thing that would say to me, if the other side changes lawyers in the middle is something’s wrong with that client or something is going on between the client and the attorney. The client may be being very unreasonable.

Mike Blake: [00:28:12] Yeah.

Jeff Berman: [00:28:12] So, that’s not a good look. Also, once you’ve got an attorney that’s got that institutional knowledge and ideally knows all of the facts because they’ve been involved from the beginning, a new attorney in the matter, I believe, is just going to have a really difficult time catching up with all the nuances. And plus, the cost for that attorney to catch up to those nuances is going to be very expensive. So, you are probably not doubling the fees you would have paid all in, but you’re certainly increasing them by 30% to 50%. So, there are those risks. It’s the appearance and the cost factor. And at the end of the day, will you get the result you want potentially because something gets missed, not purposefully, but just by virtue of the change.

Mike Blake: [00:29:07] So, yeah, I can imagine that as an attorney trying to jump in mid-deal, it may be hard to find attorneys that would even be willing to take the case. I guess depends on how busy they are, frankly, right? But you’re really asking somebody to jump on a treadmill going full speed from a dead stop.

Jeff Berman: [00:29:27] Yes.

Mike Blake: [00:29:27] And that’s hard.

Jeff Berman: [00:29:28] It’s very hard and they’re different places.

Mike Blake: [00:29:31] And there’s risk in that, too, right?

Jeff Berman: [00:29:33] Yes.

Mike Blake: [00:29:33] It’s not just about not looking incompetent, but like jumping on a treadmill, you get that wrong, next thing you know, you got a busted ankle.

Jeff Berman: [00:29:42] Absolutely. There may be something you didn’t know that you missed in the final document or you know, the question is always, are you taking on exposure somehow because the prior lawyer didn’t do something and you didn’t know that it should or should not have been done? So, are you taking on risk that the prior counsel didn’t do the job that they should have done? So, that’s always a risk also by taking the case in the middle.

Mike Blake: [00:30:13] And that’s something I hear a lot. When lawyers are approached about taking a case, taking some sort of matter midstream like that is, you know, they’re often reluctant because what don’t I know, especially, you know, the legal field, particularly if it’s local, tends to be a small world, right? So, you have a sense as to who you think the good attorneys are and the not-as-good attorneys are, at least the ones you kind of think, you know, “I wouldn’t necessarily practice law in that way.” We’ll just leave it at that, right? And in particular, if they fire somebody that you think is a pretty good attorney and now, they’re coming to you thinking they got a different result, it may be difficult to hire somebody as good a caliber as what they had going in, right?

Jeff Berman: [00:31:03] Yes.

Mike Blake: [00:31:04] Because, you know, there’s no law that says you have to take the case.

Jeff Berman: [00:31:08] And I think it’s very difficult, ultimately, for a client to truly appreciate the quality of an attorney. They’re just so many nuances that we have to deal with and so much gray area. And some attorneys may handle it one way, some attorneys may handle it another. And it doesn’t make it right or wrong, but, you know, I look at clients sometimes and think, do you really understand what we’re talking about here? Because it’s complicated.

Mike Blake: [00:31:39] Yeah.

Jeff Berman: [00:31:39] And there may been law school classes that taught about that particular subject, in here, the clients being asked to grasp it in 15 minutes. So, it’s hard. It’s very hard. And I think, you know, dangerous isn’t the right word when you’re changing attorneys, but there is certainly risk involved.

Mike Blake: [00:32:01] You definitely have to sort of pick your way around the landmines for sure, right?

Jeff Berman: [00:32:04] Yes.

Mike Blake: [00:32:04] And I think in that way, your profession and mine are actually quite similar because they’re highly technical. In most cases, we are working with clients that would find it very hard independently to evaluate the strength of our work. And often, the only objective in their mind, view in terms of how good a job we’re doing, is, are we meeting their expectations on the way in?

Jeff Berman: [00:32:34] Yes.

Mike Blake: [00:32:35] But, you know, things change. And in my world, you know, I can tell you right now, a client’s going to be happy if I determine or appraise a company at roughly the number they thought I was going in, which when that happens, terrifies me, right? Because it ought to be at least a little bit different, right? And if it’s not the number they thought, then I’m just a hack, right? And it takes a little bit of work to kind of get through that. And so, maybe I’m a hack, but let’s just assume I’m not for a minute and kind of walk through kind of what we did. I think the law sort of works that way, too, because, again, it’s not all up to you. Sometimes, you have to work within a set of constraints that may or may not provide that straight and clear path to the desired result, right?

Jeff Berman: [00:33:25] And things are in negotiation.

Mike Blake: [00:33:27] Right.

Jeff Berman: [00:33:27] Assuming you’ve got competent counsel on the other side, a client that I’m representing is not going to get everything they want. It’s just a given. So, it’s a negotiation. Again, setting client expectations is key. One thing I need to point out that I think we missed or not, didn’t point out, in terms of changing lawyers, it’s different if you are a company. If a company engages a lawyer and then, that company terminates the lawyer, particularly in litigation, a company cannot represent itself. Like an individual can be pro se. They could go into court and not have an attorney. A corporation, a company has to have an attorney. That’s just one of the rules.

Mike Blake: [00:34:18] Okay. I didn’t know that.

Jeff Berman: [00:34:20] So, anybody listening that is thinking of changing an attorney and you are part of a company that’s doing that, you need to have another lawyer ready to go immediately.

Mike Blake: [00:34:30] So, your in-house counsel cannot represent you.

Jeff Berman: [00:34:32] Correct. You have to have an attorney, an outside counsel who is performing the legal services for you.

Mike Blake: [00:34:39] Okay. Interesting. So, here’s another question. It’s not on the script, but I think it’s important. As new counsel coming in, whether it’s litigation or some other matter, A, are you allowed to talk to the prior counsel? Are they allowed to talk to you? And if so, is that something that you would do as the new attorney, is your due diligence as to whether or not you’d want to take on that case?

Jeff Berman: [00:35:06] Absolutely. And I would hope that the client would approve that. And I think it really comes down to, will the client authorize prior counsel to talk? That’s really the way that it would need to proceed. And if for no other reason than cost savings, I can sit and review a 60-page purchase and sale agreement, I can talk to the first lawyer and that lawyer can likely help me understand what’s in those 60 pages a lot quicker than I can pick it up by reading those 60 pages. Still need to read them, but if I’ve got the insight prior to reading it, it will help me and ultimately help the client and also save costs. So, I would hope that a client would say, “Yes, you can talk to the prior attorney.”

Mike Blake: [00:35:59] Now-

Jeff Berman: [00:36:01] If you say no, it’s kind of a red flag. If the client says no, it’s kind of a red flag also. What’s that attorney going to say?

Mike Blake: [00:36:08] Well, yeah. And that’s what I wanted to get in because you answered that question a little bit differently than I thought you would, but it’s still a good answer. But I’ll ask it differently because of another piece of information I want to tease out. If I was the potential new attorney coming in on the matter, before I took on the case, I would just want to talk to the attorney and say, “Why didn’t that relationship work out?” Right? “Is this person a lunatic?” Maybe it’s something benign, maybe that you suddenly discovered that you had a conflict or for whatever reason. But I would think, if you can, you’d want to learn that initially to get that post-mortem, right?

Jeff Berman: [00:36:49] I think you could. You can get high-level information like you’ve described. Is that person a lunatic or not? But in terms of anything substantive, I think you really need the client’s permission for that to happen.

Mike Blake: [00:37:03] But would you ask for that permission-

Jeff Berman: [00:37:06] Absolutely.

Mike Blake: [00:37:07] … even before you’re engaged to kind of vet that, right?

Jeff Berman: [00:37:10] Yes. Yeah. Just part of our due diligence on whether we should take that client or not.

Mike Blake: [00:37:16] Yeah.

Jeff Berman: [00:37:16] And I mentioned due diligence. I would encourage clients to do due diligence on their lawyers.

Mike Blake: [00:37:24] Yeah.

Jeff Berman: [00:37:24] You know, whether that’s talking to other people, whether that’s talking to other lawyers, whether that’s going online and searching. One of my pet peeves, though, is even though you can search online and there are all kinds of awards that lawyers seem to have, I’m not sure those awards are always truly indicative of the legal competence of the lawyer. That’s probably speaking out of school a little bit. Not many lawyers would like to hear that. But that’s the way I’d look at it. So, it’s really doing your due diligence, sitting down, talking with the attorney, making sure that it is a good relationship, that it’s a person you can get along with because it’s a very close relationship. And if you can’t get along with each other, that should be a red flag.

Mike Blake: [00:38:14] So, a follow-up question I want to ask on this because I think given where this is going, this is really important, given what I’m learning today, if somebody is in a position to think they might want to change an attorney, I think one of the piece of advice I would give him is, “If you decide to change legal counsel, this needs to be your last change for a long time.”

Jeff Berman: [00:38:41] Ideally, yes. Going to a third lawyer, you’re going to have a tough time finding that third lawyer.

Mike Blake: [00:38:48] Right. Right. That’s going to be some of the most likely desperate for the business, right?

Jeff Berman: [00:38:54] Yes.

Mike Blake: [00:38:54] One change, okay. Things didn’t work out. Maybe there’s just a bad connection or that lawyer in that particular case didn’t do a good job, but man, you’re going to change twice in the same matter or more, you know, that just streams warning, Will Robinson, that kind of thing, right?

Jeff Berman: [00:39:13] Yes.

Mike Blake: [00:39:14] So, part of that calculus is, you know, if you’re going to make that change, be sure that person is going to follow you, that that’s going to be the person because you’re probably not going to have an opportunity to make that change again and improve your situation realistically.

Jeff Berman: [00:39:29] So, you’re really reinforcing the idea of when you are looking for an attorney, do your absolute best to be sure the first when you engage is someone that’s going to be able to handle the case like you want it to be handled or handled the transaction like you want it to be handled. Of course, if the lawyer is unprofessional, turns out to be incompetent, misses deadlines, that those kinds of reasons would make it easier to go to a second lawyer. That second lawyer would understand and appreciate that.

Mike Blake: [00:39:58] Right.

Jeff Berman: [00:39:59] But again, going to a third lawyer at some point, people aren’t going to want to take your case for fear that you’re going to leave them and go to try to find a lawyer number four.

Mike Blake: [00:40:11] Right. At some point, it’s not everybody else, it’s you.

Jeff Berman: [00:40:14] Correct.

Mike Blake: [00:40:14] So, here’s a potentially unfair question, but I like unfair questions, should you fire a lawyer over one mistake?

Jeff Berman: [00:40:25] Again, that gets back similar to the discussion about perfection.

Mike Blake: [00:40:30] Yeah.

Jeff Berman: [00:40:31] It’s identifying the mistake, for one thing. But again, early in my career, and this goes back many years, an older attorney at that time told me that, “Jeff, all attorneys make mistakes. The good ones get out of them.” And I think that there is truth to that.

Mike Blake: [00:40:52] Yeah.

Jeff Berman: [00:40:52] And, you know, again, keep in mind, lawyers are humans. Humans, probably somewhere in the definition says we make mistakes. So, mistakes can be somewhat anticipated, but it’s the impact of the mistake.

Mike Blake: [00:41:08] Yeah.

Jeff Berman: [00:41:08] You know, if a paragraph gets left out of a purchase and sale agreement or an employment agreement and the client picks up on that and says, “Hey, you forgot this paragraph and I want it in there” or “I want this particular term, I want this particular amount for severance”, and the lawyer puts the incorrect number or forgets to put it, that’s a mistake. Is that a mistake worthy of firing the attorney? To me, no. Again, as long as the relationship otherwise is really strong.

Mike Blake: [00:41:42] Right.

Jeff Berman: [00:41:43] There are mistakes like missing a deadline. You have to have an answer filed in court by April 1 and the lawyer misses that. That’s a pretty serious mistake. And that’s certainly a mistake worthy of thinking about, should I change lawyers? And I would encourage somebody in that position, a client in that position, to really sit down with the lawyer and understand why it happened and what the impact is going to be and how do we get out of it? Because, again, the lawyer may have—I hate to say a valid excuse because I’m not sure there is really a good excuse for missing a deadline, but sitting down, talking with a lawyer, understanding it may be the preferred way to go as opposed to jumping to another lawyer because of all of the issues related to jumping to another lawyer.

Mike Blake: [00:42:34] Right. Okay. So, sometimes, the thought process of changing counsel may be prompted by another legal counsel suitor jumping in that would like that business. And I’m curious. It’s even awkward to ask the question because it’s hard to ask it in a way that doesn’t make me sound like a gold-plated jerk. But I already mentioned that, so I’ll just thought out there anyway. You know, is it common, I guess, in your profession where maybe someone’s kind of nipping at the heels, trying to displace you, for example, as legal counsel because they would like that client?

Mike Blake: [00:43:17] Is that considered ethical? Is it gray business. Is it something that you encounter all the time? And if so, if a client sort of hears that, saying, “You know what, Jeff’s a great guy, but I think I can do a lot better. Let’s meet and review your case and see if we can get a better result than maybe, you know, what Jeff is getting for you guys.” There’s a question in there somewhere if you can kind of parse as you process this. How do you react to that kind of scenario?

Jeff Berman: [00:43:45] We think in my firm that other lawyers are always looking to poach clients, that it’s a given. Any client or any person out in the community potentially is going to run across other lawyers, and you can’t help but talk about your case somewhat, so you’re going to get opinions. There are also those lawyers who are just really looking to poach clients, particularly if it’s a corporation that’s a significant client.

Jeff Berman: [00:44:19] So, we do our best, again, going back to what we talked about earlier, of keeping clients informed, giving bills that make sense, being fair and reasonable in our billing. So, it clearly happens. I would suggest to clients to be careful because I don’t know how or it’d be very difficult to say I can get a better result for you than another attorney because probably at that point, we don’t know what the result is anyway.

Mike Blake: [00:44:51] Right.

Jeff Berman: [00:44:51] So, how do you measure “I can do better”? There may be times, however, that if you’re dealing with a lawyer that really doesn’t have the experience in the area and you talk to another lawyer and that lawyer seems to have much more knowledge about the kind of law you’re dealing with, then maybe the poach is a good thing. It clearly happens. We try to avoid letting it happen. It’s not unethical.

Mike Blake: [00:45:24] Okay.

Jeff Berman: [00:45:24] Whether it’s gray, maybe so. But it’s a competitive industry.

Mike Blake: [00:45:30] Okay.

Jeff Berman: [00:45:30] A lot of good lawyers out there, lot of lawyers that aren’t as good, but it clearly happens.

Mike Blake: [00:45:37] Interesting. Okay. So, just because somebody is kind of making a pitch for the business, that doesn’t necessarily mean they’re a bad person or a person of questionable ethics. That’s just what happens in a competitive business, I think is what I’m hearing you say.

Jeff Berman: [00:45:51] It is. And I mean, in my firm, I don’t think we would aggressively try to convince a client to leave an attorney.

Mike Blake: [00:46:00] Yeah. Yeah. And as a matter of personal practice, I generally don’t do that either. I typically will tell a client, you know, “If you’re happy with what you’ve got going on, great. If you have a question, happy to take the call.” But I generally won’t go further than that. But maybe I’m a sucker.

Jeff Berman: [00:46:18] And, you know, you mentioned earlier that there are a lot of lawyers in Atlanta and in the metro area, but it’s still a pretty small community.

Mike Blake: [00:46:26] Yeah.

Jeff Berman: [00:46:26] And if you get the reputation of being somebody that’s poaching clients, probably, to me, that’s not a reputation you want to have.

Mike Blake: [00:46:38] So, we’re running out of time here, but last question I want to get in here before we wrap up is, if you’re thinking about changing a lawyer, what are the three or four things that are most likely to represent a reasonable basis for changing counsel?

Jeff Berman: [00:47:01] Lack of communication.

Mike Blake: [00:47:04] Okay.

Jeff Berman: [00:47:04] We believe that you return emails daily as soon as you can. You just do it. You take phone calls. You keep clients informed of what’s going on in their matter. Failure to do those things are going to lead clients away from you. So, if your lawyer just doesn’t communicate with you, that’s just not a person you necessarily want to deal with in any relationship, especially one that is as tension-filled and as difficult as a relationship with a lawyer and a client. Again, if the lawyer just comes across as incompetent, yeah, you probably should start looking around.

Mike Blake: [00:47:52] And incompetent means not knowing answers to what ought to be fairly basic questions, obviously missing filing dates. To me, that’s borderline malpractice. You know, things of that nature might speak to the competence or lack thereof.

Jeff Berman: [00:48:06] Correct. Just again, an example, in any M&A transaction, there’s going to be due diligence where one side wants to look at all the information about the other side. And if you’re talking to a lawyer about an M&A deal, and they really don’t have a handle on due diligence, that’s probably not the lawyer you want to use because that’s almost as basic as you can get. And that’s probably an extreme example, but it’s still an example of where you expect lawyers to have some good knowledge of the transaction and to be able to walk you through it and explain to you what’s going to be involved. And if they can’t do that, that should be a red flag.

Mike Blake: [00:48:49] So, Jeff, we’re going to wrap up. There’s a lot more that we could have talked about today, but didn’t. But I do want to underscore that I think a key takeaway from this conversation is, if somebody is thinking about changing legal counsel, it’s not something to be taken lightly, right? And in some cases, that may be the result of a poor decision on the client’s part rather than anything that the lawyer necessarily did, has done, is doing. But it’s obviously a very complex decision. If somebody would like to learn more and maybe, you know, they’d like to get your expert insight into that thought process, can they contact you? And if so, what’s the best way to do that?

Jeff Berman: [00:49:33] Absolutely. Yes. Probably the best way to get in touch with me is through our website or through my email address, which is jberman@bfvlaw.com. I’d be very happy to talk to people and listen to why they are considering leaving or moving to another attorney and certainly giving my opinion, understanding it’s only my opinion, is that a good reason, a valid reason? And will a new attorney understand those reasons as valid reasons?

Mike Blake: [00:50:14] So, that’s going to wrap it up for today’s program. I’d like to thank Jeff Berman so much for joining us and sharing his expertise with us today. We’ll be exploring a new topic each week. So, please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: corporate attorney, fire attorney, Michael Blake, Mike Blake

Decision Vision Episode 53: Should I Join a Chamber of Commerce? – An Interview with Deborah Lanham, Alpharetta Chamber of Commerce

February 27, 2020 by John Ray

should I join a chamber of commerce
Decision Vision
Decision Vision Episode 53: Should I Join a Chamber of Commerce? – An Interview with Deborah Lanham, Alpharetta Chamber of Commerce
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should I join a chamber of commerce
Mike Blake and Deborah Lanham

Decision Vision Episode 53: Should I Join a Chamber of Commerce? – An Interview with Deborah Lanham, Alpharetta Chamber of Commerce

Should I join a chamber of commerce? How should I maximize the benefit of my chamber membership? Answers to these questions and much more come from host Mike Blake’s interview with Deborah Lanham, President and CEO of the Alpharetta Chamber of Commerce. “Decision Vision” is presented by Brady Ware & Company.

Deborah Lanham, Alpharetta Chamber of Commerce

should I join a chamber of commerce
Deborah Lanham

Deborah Lanham is the President and CEO of the Alpharetta Chamber of Commerce.

The mission of the Alpharetta Chamber of Commerce is to promote a vibrant business climate and economy while enhancing the quality of life within our surrounding community.

The Alpharetta Chamber of Commerce was established in November 2013 by a group of business leaders who wanted to build a business identity for Alpharetta much like the Chambers in Johns Creek, Sandy Springs, and Roswell Inc. do for their cities. The goal was to create an organization that Alpharetta businesses would be proud to be a member of, and use to grow its current and prospective business base.

For further information on the Alpharetta Chamber of Commerce, go to their website.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

should I join a chamber of commerce“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

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Show Transcript

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Michael Blake: [00:00:20] And welcome to Decision Vision, a podcast giving you, the listener, a clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Michael Blake: [00:00:39] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton, Columbus, Ohio, Richmond, Indiana, and Alpharetta, Georgia, which is where we’re recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving review of the podcast as well.

Michael Blake: [00:01:01] So, we’re recording here in Alpharetta on February 14th and you’re probably going to be listening, somewhere around Leap Day, probably, something like that. So, it’s odd because of the time delay we have here. I’m dressed in red. Others in the studio are dressed in red. So, I feel awkward if I don’t wish people a happy Valentine’s Day, even though by the time somebody listens to this, it will be irrelevant. But it’s the internet, so we can play fast and loose with this, assuming.

Michael Blake: [00:01:33] Today, we’re going to talk about chambers of commerce. And should your company consider joining one or staying in one? And I chose this topic, because as most of our listeners know, I hang out a lot with entrepreneurs, have long been fascinated with startups. I’ve done a share of startups. And, you know, one of the things that you read a lot when you read some advice on, you know, what do you do when you start your business, start marketing?

Michael Blake: [00:02:03] One of the things they tell you as a go-to item is, well, make sure you find out what your chamber of commerce says and join it. And I think, you know, larger companies, I kind of do that as a matter of course and we’ll talk about the varying motivations. You know, some do it because there’s a direct path to business. Others do it because they feel like it’s the right thing to do as a corporate citizen. And there are other kind of kind of motivations.

Michael Blake: [00:02:30] But, you know, chambers of commerce are not all alike, and not everybody’s experience are alike. And I think if you talk to a lot of people that have either participated in chambers of commerce or at least have studied chambers of commerce with any level of depth, you’re going to get a wide range of answers in terms of how useful an exercise that is. And frankly, there is no simple answer. I live in a town called Chamblee, Georgia, which is a suburb about 10 miles north and east of Downtown Atlanta.

Michael Blake: [00:03:09] And we have a chamber of commerce. It’s fine. I just never go. But they’re very active. They meet, they’ve been around for about three, four years, split off from Dunwoody. But that particular chamber of commerce just doesn’t do the things that I particularly find of interest and doesn’t really have a client base for me. But my company, Brady Ware is a member, I believe, of the Greater North Fulton Chamber of Commerce, I’m not sure for member of Alpharetta. I have to find out about that.

Michael Blake: [00:03:37] But the point is that this is something that comes up, I think, often. And so, I hope you’ll find this to be an interesting topic. I know that that I will. And since I’m doing the interview, I guess I get to decide that. But joining us today is my friend, Deborah Lanham, I’ve not seen in ages. But she is the brand-new CEO or president, I guess, for the Alpharetta, Georgia Chamber of Commerce. And Alpharetta is a city about 20 miles north of Downtown Atlanta.

Michael Blake: [00:04:06] It’s one of the fastest growing cities, not just in the state, but in the country, actually. And the Alpharetta Chamber is also relatively new. Established in 2013, has a mission of promoting a vibrant business climate and economy while enhancing the quality of life within the surrounding community. Deborah served as a top executive with the Greater North Fulton Chamber of Commerce for nearly eight years, the last four as vice president of business development.

Michael Blake: [00:04:29] During her successful tenure at the Greater North Fulton Chamber of Commerce, she promoted diversity and inclusion in all levels of the organization while achieving record-breaking growth in individual business and corporate memberships. She also helped expand business-focused programs and services in the areas of technology, women in business, and young business professionals. After leaving the Greater North Fulton Chamber of Commerce in 2018, Deborah launched Sufficient Imagination, LLC, a successful business development consultancy that assisted a number of startup and established companies in launching, expanding, and growing new revenue opportunities.

Michael Blake: [00:05:05] Born in Arizona and raised in Michigan, Deborah worked in Metro Detroit before relocating to the Alpharetta area 22 years ago. She has decades of business, volunteer, and community experience in Metro Atlanta. She currently sits on the Technology Association of Georgia North Metro Advisory Board and has served on the Tech Alpharetta Board of Directors, United Way of Greater Atlanta, North Fulton Advisory Board, and North Fulton Mental Health Collaborative. Deborah, thanks for coming on the show.

Deborah Lanham: [00:05:31] Oh, my goodness. Thank you so much. Great to be with you today.

Michael Blake: [00:05:35] I didn’t realize that you’ve really moved around a lot.

Deborah Lanham: [00:05:38] I have.

Michael Blake: [00:05:38] Arizona and Michigan and here to the greater Atlanta area, you’re almost at that magical 25-year point where people actually consider you non-transient.

Deborah Lanham: [00:05:49] It’s kind of scary.

Michael Blake: [00:05:50] Right. So, congratulations.

Deborah Lanham: [00:05:51] Thank you.

Michael Blake: [00:05:52] I’m at 17 years, so I have eight more years to go before I get that medal.

Deborah Lanham: [00:05:55] Well, thank you, Michael. And you are my friend as well. And it’s great to be with you. It has been a bit of time since we’ve been together and converse. But thank you for having me on your show today.

Michael Blake: [00:06:05] So, we’ll get into the formal interview for a second. But I’m curious. You left the chamber of commerce game after a long, successful tenure doing that. You did your own thing. And now, you came back as a brand—January 1st, I think, was your first day. So-

Deborah Lanham: [00:06:22] Yeah, January 15.

Michael Blake: [00:06:23] January 15.

Deborah Lanham: [00:06:24] I was in the door.

Michael Blake: [00:06:24] Right. So, it has the new job smell and everything, right?

Deborah Lanham: [00:06:28] It does.

Michael Blake: [00:06:28] So, why did you come back into this industry?

Deborah Lanham: [00:06:32] Great question. And when the opportunity presented itself to me—and let me back up a little bit. Sufficient Imagination, I just love that name. And it was really, you know, wanting to spend more time with creatives and helping creatives in the area of business development. So, in a-year-and-a-half after leaving the Greater North Fulton Chamber, I had the opportunity be a part of some business development teams and found myself working with global technology companies who were also developing not necessarily startups, maybe four or five years already at it, but just learned a ton in a-year-and-a-half.

Deborah Lanham: [00:07:11] And then, the call came that there was an opportunity at the Alpharetta Chamber. And because there was more than one call and it was my peers in the community that were saying, “Take a look at this. And would you consider?” And in doing so, I found that this would be too hard to pass up. And I actually went to my sons. They’re all grown, but we have a lot of conversation. And I said, “What do you guys think”, you know? And one of my sons, Trent, said, “Mom, it just seems as though you weren’t done yet in what you were able to accomplish in the industry.” And so, here I am. I’ve accepted this position. I’m excited. And it’s the Alpharetta Chamber of Commerce that has Alpharetta in the name. So much possibility.

Michael Blake: [00:07:53] And I’m grateful for it, because now that I work for Brady Ware and I’m at least in the office one or two times a week, this is now sort of my second home. So, I’m sure we’re going to get a chance to work more together. So, you’ve been in the chamber game for a long time, probably almost a decade, really, all combined. So, I don’t think there’s anybody better qualified to answer this question. What is a chamber of commerce? We hear of a chamber commerce, what exactly is it? And generally speaking, if you can talk about that, what are they supposed to do?

Deborah Lanham: [00:08:28] Yeah. Great question. And basically, a nonprofit organization that is member-driven and to promote and provide resources and tools for business in a particular community.

Michael Blake: [00:08:42] And so, what are some other broad themes of the kinds of tools and facilities and resources that most chamber of commerce does have in common in terms of their offerings?

Deborah Lanham: [00:08:53] I think so. Really understanding that we are going to be, you know, bringing in those community partners to help us deliver some of this, because we have score here. We have our Small Business Administration housed in Atlanta. And we also, you know, have the universities and colleges that are here that provide some offerings of, you know, tools, resources as well to help businesses. So, we will put all of this community partners together and create what we think.

Deborah Lanham: [00:09:24] And I say we, chambers have different partners themselves and can decide what they want for Alpharetta. It would be working with a SCORE. And these are free tools and coaches that are the experts that come in and volunteer their time to teach and provide those resources and tools. Besides those partnerships, I was going to say, also then and kind of start walking down the aisle of, you know, programming and the kinds of events we plan, then that’s also considered part of those resources to put businesses first.

Michael Blake: [00:10:00] And SCORE is Service Corps of Retired Executives, correct?

Deborah Lanham: [00:10:03] Exactly.

Michael Blake: [00:10:04] Right. And as I recall, that is also a nonprofit of retired folks that serve on a pro bono basis as mentors to small business people, budding entrepreneurs, that sort of thing.

Deborah Lanham: [00:10:17] Exactly.

Michael Blake: [00:10:18] Okay.

Deborah Lanham: [00:10:18] Right here and right in Alpharetta and housed in local business and here and available to coach.

Michael Blake: [00:10:25] So, I can sense that you’re very excited about having this, being Alpharetta Chamber of Commerce and separate from Greater North Fulton, right? Which historically, Greater North Fulton sort of encapsulated Alpharetta. So, I’m going to go off the script a little bit. But why are you so excited that there’s an Alpharetta Chamber of Commerce? Why is it important that a Chamber of Commerce have a local flavor to it?

Deborah Lanham: [00:10:49] Well, it’s, again, a great question, because here we are, almost seven years old now in the community, but it’s the way we see the growth in the city alone. What has happened in Alpharetta? You mentioned earlier, I came down from Detroit 22 years ago. We moved into kind of Alpharetta township, because there there wasn’t the City of Milton, which now exists, the City of Johns Creek. So, we’ve seen the formation of cities all around the area. And Alpharetta has been here for many years and has a rich history. But it didn’t have a downtown epicenter. It didn’t have a place for businesses or the community to really gather.

Deborah Lanham: [00:11:28] And that’s the transformational activity that has taken place in the 22 years I’ve been here. And I mentioned I have sons. They went through—the Milton High School was right Downtown Alpharetta. There wasn’t anywhere they could walk after school to go enjoy, you know, fellowship with their friends. And now, we see this transformation. So, I am excited, because the tech industry alone has brought over 700 businesses in the Alpharetta’s, you know, lineup. And it’s just incredible what has happened. So, I think this is a perfect time for local to be a superstar.

Michael Blake: [00:12:08] Okay. So, I want to give you a chance to address this, because it’s such a unique opportunity, given that you’re just starting this role, walking in, giving your creative proclivities, what is your vision for that Alpharetta Chamber walking in?

Deborah Lanham: [00:12:25] It really needs to be that premier local chamber of commerce. And again, the name Alpharetta, it means, something now. And so, when we start to launch our new marketing strategy, it will involve the name Alpharetta. And someone came up to me the other day and said, you know, I had a sweatshirt on that said Alpharetta, I was walking through an airport in Dallas and I was stopped, “Oh, are you from Alpharetta, Georgia? We’ve heard about Alpharetta. That’s exciting.” So, my vision is to not only get us in position. So, that means some internal strategy and organization to be as efficient as possible. We’re small-staffed, but then, the plan to grow. And it really can be that premier chamber of commerce that will be a gathering of business in the city.

Michael Blake: [00:13:16] So, small business owners are going to be encouraged to join a chamber of commerce. What does that mean? Does that mean the same thing to everybody in every case?

Deborah Lanham: [00:13:31] Small business?

Michael Blake: [00:13:32] Yeah.

Deborah Lanham: [00:13:34] Well, I think the businesses that we serve, that business category that all chambers of commerce serve best would be the small businesses. They seem to be the ones that have the most need. And I would say, and encourage small business. The minute you decide to start a business, open a restaurant, you should absolutely be thinking about joining the chamber of commerce, because you don’t want to wait until now, the revenue isn’t coming in. You’re having a hard time finding employees. And now, you join your chamber and expect that this is going to turn things around for you.

Michael Blake: [00:14:11] Right.

Deborah Lanham: [00:14:11] So, it should be a plan as a part of and we teach SCORE to also like walk them over to us. We want to make sure that if you’re getting them first, that they understand the value of a chamber of commerce. And certainly, for small business. There are levels, too. And when you’re joining, you start and have a pretty reasonable rate as a small business to come in. But then, we also think about the other side of that, where we need those strong supporters that will allow us to do even more to strengthen our community, where the small business will benefit from that investment as well.

Michael Blake: [00:14:45] So, if I decide that I’m going to join the chamber of commerce, whatever it is, I pay my annual due, presumably, that’s how most of them work, I think, right? Is that where the commitment and engagement end or as a member of the chamber, do I need to be doing other things?

Deborah Lanham: [00:15:05] Well, that’s a great question, because it shouldn’t end there. Yes, you’re going to invest, but there’s an engagement meeting we would have with every single member joining. And that is to share what this pathway now looks like to come into the chamber and how to navigate your way through and how to make the most out of that membership and to see a return on that investment. And so, yeah, as a small business coming in, we’re going to make sure that you’re educated and that—you know, we we say you need to be engaged. You need to attend events. But you also need to be realistic about the kind of time you can devote to that membership.

Deborah Lanham: [00:15:46] Because what we don’t want to see happen is someone saying, “I can never get there”, and not make a commitment. So, we will help you walk through, navigate your way, and find those events that are most meaningful to you and that the connections and relationships you desire not only to help you grow your business, but also to be referring business to you. That’s what it’s all about. So, I think that that has to happen or you’re not going to feel at the end of a year that you got anything out of that membership.

Michael Blake: [00:16:16] So, it’s more than just having a plaque on your wall or a little badge on your website that says, “Proud member of the Alpharetta Chamber of Commerce”, right? There’s a time and energy commitment. There’s a personal investment that has to be made.

Deborah Lanham: [00:16:29] I think that’s important. But at the same time, there are those that would rather be a part of a chamber of commerce than be noted on a Better Business Bureau, because that usually is seen maybe of businesses in trouble and companies call the Better Business Bureau to investigate or to see how this business is scoring.

Michael Blake: [00:16:48] Yeah.

Deborah Lanham: [00:16:48] It’s important to align yourself with an organization that is pro-business and is going to promote your business. And we even do something like exchanging logos. You know, we’ll put your logo on our website and you should be putting your chamber of commerce logo on your website showing the association. That’s powerful when the outside world is looking in to see what it is you do and how are you rated, you know, in your community as a business owner or a business, in general.

Michael Blake: [00:17:19] So, you talked about one piece of advice you’ve already given, is when you’re starting a business or when the first opportunity arises, join the chamber of commerce early, right? And I get that. And to me, the philosophy there is don’t wait until you’re hungry to start planting seeds, right?

Deborah Lanham: [00:17:39] Exactly.

Michael Blake: [00:17:39] Because it’s going to take too long. As a business owner or executive and I’m weighing in my mind whether I should join a chamber of commerce, what are realistic objectives that I should have in mind as I contemplate joining a chamber?

Deborah Lanham: [00:17:58] Well, again, it’s going to be growing your network. I feel that if you’re a leader, you’re an executive, you should have a circle of influence. You should have a leader quality network. And if you don’t, if that’s lacking, a chamber of commerce is going to help you develop that network. So, that’s one objective. The other would be that you are promoting your business. We’re here to help you promote. And there’s a variety of ways we can do that.

Deborah Lanham: [00:18:21] And it may cost a little in terms of an investment in a sponsorship, that kind of thing, but those are real returns that when you’re out there and you’re the expert in the room and people see that of you and your business is in the front supporting the work of a chamber of commerce at whatever event it might be, that’s another great way for you to get the recognition and then, to also get those leads that will help you turn, you know, into business.

Deborah Lanham: [00:18:47] So, not only network promoting and then, also, I would say refining. We talked about the small business. A lot of times, they just need to refine the business plan, refine the marketing strategy, enhance those strategies. And so, we are going to, as a chamber of commerce, also provide that. And that’s very important. Especially in the day and age now with social media, some business owners haven’t, even today, engaged in much of that. And we will show you how to become more relevant as a business.

Michael Blake: [00:19:20] So, one of the things that I think we’re teasing out here and I want to make sure that we underscore this, because I think it’s such an important point, is yeah, there’s business to be generated through a chamber of commerce, but there’s also learning and educational opportunities, right? And for small business people or even for somebody like myself, I’ll divert here a little bit, because I think it’s instructive, as it turns out, I hold an MBA. And I had my own shingle for a couple of years or so. And that company did fine before Brady Ware acquired it.

Michael Blake: [00:19:58] But one of the things that struck me was, you know, most MBAs do not train you on how to be an independent small business person. They’re great at having you work for McKinsey or Bain or someplace in Wall Street and look at billion-dollar deals, right? But working out of your basement and guerilla marketing and how do you get clients when you have a marketing budget of 500 bucks a month, right? That is not something they put in a Harvard Business School case study, right? Things like joining chambers of commerce. I think even for somebody who thinks they have a pretty strong business education, I think help a lot with that sort of thing, the tactical roll your sleeves up, day-to-day running of a business. Is that fair?

Deborah Lanham: [00:20:41] It is fair. And, you know, what’s beautiful about chambers of commerce, again, is it’s the partnerships that a chamber is going to surround itself. So, for example, you mentioned I served on the Tech Alpharetta Board and I’m now on the Technology Association of Georgia’s North Metro Advisory Board. Well, I have the ability to meet and connect with those experts. And I can bring them into the chamber. They’re probably already members of our organization. But it’s collaborative. Now, suddenly, I am surrounded by those individuals who are in the business to educate business.

Michael Blake: [00:21:21] Yeah.

Deborah Lanham: [00:21:21] And I have in my past and will be doing this at the Alpharetta Chamber, is bringing in that kind of content to events, where you are learning and you’re also networking and then, you’re just in community with one another. So, that is fair. And, you know, you think about college students go and they get, like you were mentioning, your MBA. You go and you get a great education, but they’re coming out of there and unable to do their own finances. And so, we find that even in business, we are going to have financial experts, are going to help you get your business in line.

Deborah Lanham: [00:21:55] I can’t tell you how many businesses are not yet using—not a plug for QuickBooks, but QuickBooks Online is an amazing tool and some are still using the desktop version. So, it’s not something to be afraid of, but to embrace. And so, that’s just one small example of how we collaborate with those experts and provide that training, that education for businesses of all sizes to be able to continue to grow not only as a business, but as an individual and a professional. So, come on over, Michael.

Michael Blake: [00:22:27] All right. I will. You can count on it. But let’s now talk about the flip side. Not everybody who joined the chamber of commerce stays until the end of time, right? And people do sort of leave and they leave, because obviously, they feel like for whatever reason, they’re not getting value out of that particular membership, at that particular period of time. So, my question is this, are there expectations that some members or potential members might have of a chamber of commerce that are not realistic, right?

Michael Blake: [00:23:05] For example, you talked about the time to join the chamber of commerce is not when you’re starving for customers or clients, but, well, in advance, right? So, it seems to me that an unrealistic expectation is you join your chamber of commerce, you pay $500, $1,000, whatever it is and then, there’s just this fire hose of clients that just comes your way. That seems unrealistic, right? So, A, is that true? And then, you know, B, are there other kind of expectations that some folks may have of a chamber of commerce that are unrealistic and maybe there are other resources they need to look at instead or in conjunction with being a member?

Deborah Lanham: [00:23:43] And you’re articulating that well. I think the conversations that I have had in the past provides me the knowledge and how to do a better job going forward, because chambers try to be all things to every business member that comes in there. And it’s just not possible. We are a nonprofit organization and that usually translates into, you don’t have a large staff to get all of this done. So, that’s why you provide committee opportunities for service board. You know, all of that engagement is important.

Deborah Lanham: [00:24:15] And so, I think on those levels, especially your executive board and your board of directors, it is engaging businesses that really are committing to the chamber and the work of the chamber and the community that they’re in business in. And so, that means longevity. But I have had conversations where a business will come in, sit down with me in a conference room and say, “Oh, yeah, yeah, that’s all great”, because we go over the membership information. “That’s all. Okay. I need the short cut.”

Michael Blake: [00:24:40] Right.

Deborah Lanham: [00:24:42] “I need the short cut.”

Michael Blake: [00:24:42] Right.

Deborah Lanham: [00:24:42] And I, you know, answer politely, “There isn’t a shortcut.” But we also are in community together with other organizations. And there are many. And there’s many options. And it’s friendly. If this isn’t a good fit for you, then find what is, but it’s important that you are belonging to something. You know, you can join a country club and belong to a club and you enjoy that. You’re going to invest, you’re going to spend money, and you understand what that club is going to offer you.

Deborah Lanham: [00:25:12] You’re going to play a great round of golf. You’re going to have some food. And you’re going to sit around with other club members and enjoy those contacts and engagement. Chambers of commerce are the same way. You’re engaging in a membership that provides you those things that are going to be known. What are those programs and events? What are the business tools and resources I’m going to be getting? And what is this network like? And is it valuable?

Deborah Lanham: [00:25:35] And is it, you know, enhancing my business, because I am not only getting business out of it, but I have people that I know and trust that I can go to and tell them, “I’m having a particular problem in this area and they’re going to, you know, work on my behalf to find and provide a solution”? So, I hope that answers what your thought and question is, but we’re okay if you come and say, “Look, this didn’t work out so well for me. No offense, I’m going to move on.” And we say, “Let us help you. What is it that you really are needing that we weren’t able to provide?”

Deborah Lanham: [00:26:08] But I will tell you this, across this nation, if you don’t like change as a chamber of commerce, you’re going to need to love irrelevance, because you need to be relevant and you need to change your lineup as a chamber of commerce to what those needs are. And it’s changing. And part of that change is embracing our young professionals. And that’s a big part of what we’re doing now, is these are our next leaders. And so, we’re working hard to make sure, yes, we’ve got our established business centers, but we’ve young professionals that are now interested and are coming in and we’re embracing them as well.

Michael Blake: [00:26:42] Well, let’s talk about that. I’m going to pull a Tom Keenan, Bloomberg and sort of rip up the script here for a second. Because I think that’s a really interesting point.

Deborah Lanham: [00:26:51] Sure. I love it.

Michael Blake: [00:26:51] So, a funny thing happened and that is I’m starting to get old and decrepit. And by becoming old and decrepit, millennials are suddenly not skateboard-riding, pot-smoking hipsters that have 9,000 participation trophies in a box someplace. But they’re now becoming decision makers and executives and business owners, right?

Deborah Lanham: [00:27:19] Exactly.

Michael Blake: [00:27:19] And they’re in that smartphone, always-on, remote relationship, 10,000 Facebook friends or TikTok or Instagram generation.

Deborah Lanham: [00:27:29] Yes.

Michael Blake: [00:27:29] All right.

Deborah Lanham: [00:27:29] Yes.

Michael Blake: [00:27:30] And I won’t say struggle, we’re grappling with this at Brady Ware, right? How do we serve our traditional clients and how do we serve this new wave of clients who want entirely different client and customer experience? Entirely different. You must be facing that same thing. So, what are some of your thoughts walking in? You had a clean slate at Alpharetta Chamber of how you’re going to address that market. I think that’s really interesting, because, you know, quite frankly, the younger people are the more likely to be listening to a podcast.

Deborah Lanham: [00:27:59] Yeah. And I have a millennial that is on staff, Caitlin. Amazing. And young and talented. And that’s what I looked to. And she is leading our young professionals, Alpha Pro or Alpha Professionals Group and that’s exciting.

Michael Blake: [00:28:15] I love that.

Deborah Lanham: [00:28:15] Yeah.

Michael Blake: [00:28:16] I love that name.

Deborah Lanham: [00:28:17] Yeah. Alpha Professionals.

Michael Blake: [00:28:17] Sounds so testosterone. Alpha Pro.

Deborah Lanham: [00:28:20] Alpha Pro. Yeah. That’s a good name. We better use that. I like that too. But that’s what you do as an organization. You allow your young professionals to gather those other young professionals, their peer group. And then, you weigh in, you know, in those informative meetings as you’re putting together whatever the programs are. But that’s the way I address it and how I’m approaching it. And certainly, being a part of a larger organization and being involved in that work, it’s important that, you know, as it relates to the skill gaps, the work gaps, the employment issues that we know we’re having, it takes all of us.

Deborah Lanham: [00:28:58] And so, I don’t want to see a room full of unemployed 50 and 60-year olds who are viable and still some, you know, experts that we need to lean into. How do we get them employed? Because they’re out there and they don’t want to be unemployed at this stage. And yet, also embracing our young professionals who have a lot to offer. And so, there are companies that we have listened to that are doing both. They’re not only keeping their senior employees, but they are hiring the young and they’re bringing them all together.

Deborah Lanham: [00:29:31] And they’re finding. And this, you know, comes to the diversity and inclusion piece that it’s more of a business opportunity. Not so much about the diversity of us in our color and our background and all of that, it’s our business diversity and it makes these teams more successful and more productive. And it’s a business opportunity in terms of revenue, because you have all of those individuals in place that weigh in on whatever the particular, you know, strategy is or work that needs to get done. Much more effective.

Michael Blake: [00:30:07] So, I’m actually reading a book right now called Super Forecasting. And it’s a book that talks about—and I’m not all the way through it, but the first half of what I’m through, I like and I think had some interesting things to say. And one of the things that they talk about, the authors have run experiments on forecasting and what creates sort of sort of super people who are better at forecasting than others. And one of the drivers that seems to produce superior forecasting outcomes are crowd-sourced forecasting.

Michael Blake: [00:30:41] And the more diverse range of opinions, viewpoints, experiences you have in the room, the more likely that the average forecast is going to wind up being accurate in the long-term, right? And the reason for that is because it gets rid of the confirmation bias. You always have someone in the room saying, “Well, what if you’re wrong? And I think that’s one of the biggest benefits you get from diversity, is somebody’s going to say, “What if you’re wrong?” And just asking that question, it turns out, leads to much better predictive outcomes. But I digress.

Deborah Lanham: [00:31:17] Excellent. And I wrote that down. I want to read that book. It sounds very interesting.

Michael Blake: [00:31:20] Yeah, so far so good.

Deborah Lanham: [00:31:20] Excellent.

Michael Blake: [00:31:22] But as far as I know, the butler did it. But-

Deborah Lanham: [00:31:25] Well, I think about attending a tag event and the speaker was with GE and just talk about how technology was a disruptor. We’ve heard that word a lot over the last few years. But because it was such a gigantic organization and to move it, it was just slow in moving that, the technology leak fraud. And it’s just so hard to catch up. And we are so aware now of what we are embarking on with our young professionals coming out of millennials. And we see it with every generation.

Deborah Lanham: [00:31:59] You know, there another name for the next generation. But we absolutely do need to look like the community we serve. So, the Alpharetta Chamber will be very engaged with our young professionals, because they’re here and they’re eager and they have a lot to offer. But I’m serious, we need to make sure that we are getting our 50-plus year experienced professionals back to work, too. And that’s our challenge.

Michael Blake: [00:32:27] So, one thing I suppose has got to be something that you’re then thinking about, is that it seems to me that as this younger generation takes hold and becomes more important, I’ll bet your location becomes less important. One of the things at Metro Atlanta Chamber of Commerce, which I think dates back to pre-Civil War. I’m not sure, but I think it’s one of the old chambers in the United States. They had, you know, downtown, next to Centennial Park, that huge building for forever, right? And they finally did vacate it. And I think that’s always been kind of one of the trappings of “real chamber of commerce”, you had your own dedicated facility, event space, things like that. I would have to imagine that has to shift now. That can’t be quite as important, as attractive now that, you know, in particular, younger generations embrace a virtual relationship pattern.

Deborah Lanham: [00:33:26] Interesting. You know, I answer that this way, in touring an office a couple of years ago down in midtown and walking around beanbag chairs and young professionals with iPads and the room was darkened and there were no offices. And, you know, I was really amazed that you could get anything done.

Michael Blake: [00:33:51] Yeah. Yeah.

Deborah Lanham: [00:33:52] That wouldn’t be how I needed to have my environment for me to be able to get my work done, but it works. And I don’t know with the explosion of even e-sports and just seeing how there’s just so much out there and more tools available. And it is technology-driven that, you know, that’s where we’re at. But does it work for everybody? No. And is that what the future continues to look like? I don’t think so. I think it’s ever-changing and we continue to learn.

Deborah Lanham: [00:34:22] I think the virtual piece, you know—one thing that I mentioned in my first board meeting with the Alpharetta Chamber is that we need to embrace the technology and use everything that we have, you know, access to right now, just because we’re in Alpharetta and it’s the tech hub of the south. And let’s just make sure that we’re embracing it, but not embracing it just for the sake of embracing it and following a trend, but that it’s meaningful and our, you know, businesses are successful as a result. Otherwise, it just weighs you down and there’s no point in it.

Michael Blake: [00:34:59] Yeah. So, now, I don’t know if that’s the case for Alpharetta, you can tell me, but many chambers have events that are open to members and to non-members, right? So, I mean, to be perfectly blunt, you can, to a certain extent, freeload, right? You can go to events as a non-member. Maybe you pay more to attend that event. That’s usually the model, right?

Deborah Lanham: [00:35:22] Exactly. Yeah.

Michael Blake: [00:35:22] But certainly, you can collect some of the benefits of chamber association without actually being a member, right? So, in your mind, what’s the value proposition of stepping up from being a non-member participant to actually then committing to becoming a member?

Deborah Lanham: [00:35:40] Great question. Well, again, I talk about belonging and being a part of something. People know when you’re not a member. And, you know, when you’re with the members and you, yet, had not made that decision. Not to mention I strong-arm you. I make sure I see you continue to come. No. Everyone is welcome. They do pay that non-member rate. But, you know, I think that individual that business knows that, “I am on the fence and I need to make a decision one way or the other.” Because really, you do want to be a part of what’s happening and be a member. But, you know, there are going to be those individuals that can’t commit.

Deborah Lanham: [00:36:15] And so, they’re welcome to come. I just don’t think there’s a way to really regulate that other than to say it’s important. And the value of being a member is far greater because you are belonging. It means something to be a part of this association. And your investment allows us to continue to do what we do in our community as a business organization. And we are going to help you when it comes to connecting with city hall and the leaders in the community. And there are a lot of nonprofits in our community and people care about that work as well. And so, it’s just a good thing to do. And the value comes in that you feel like you are being a responsible, you know, business center in your community.

Michael Blake: [00:36:59] A common concern or even criticism or yeah, downside of joining a chamber of commerce is I might look at it and say, “You know what”, and this is for trade associations, too, “I’m just going to run into a bunch of my competitors”, right? Most chambers of commerce are not exclusive. Don’t just have one accounting firm, for example. You know, why do I want to hang out with a bunch of my competitors, potentially even help a competitor? What is the argument to that? What is the response to that?

Deborah Lanham: [00:37:31] It’s true. And I do hear that from time to time. I think that there are certain industries, there’s many professionals that are in that industry, whether they’re entrepreneurs or out on their own or they’re a part of an organization that has like, for example, an insurance or financial services, wealth management, that kind of thing, real estate. But again, that that is where you get to excel and explain what is the difference. I have to do that as a team chamber executive.

Deborah Lanham: [00:37:59] What’s the difference between your organization and the organization, you know, down the street or in another community? Professionals need to do that, too. And I think having that variety is important. I also feel it’s important in my responsibility to make sure that I look at the business categories and the members that are in this organization. And that’s what I’m doing right now, is taking this 90-day audit of the chamber and how we look all through our work, including the membership.

Deborah Lanham: [00:38:27] If I’m lacking in a particular category of industry of business, it’s important, because it exists in the community and it’s a part of the Alpharetta business community that I invite them to come in and be a part of that and join. Because it makes then that overall networking more successful and more valuable. Because we’ve taken the time to make sure, hey, are we reaching out to X company or X industry and getting them in here?

Michael Blake: [00:38:51] So, not all chambers are alike. And, you know, just in our area, you could plausibly join a dozen or more chambers, right? If you live and work in Alpharetta, you could join the Alpharetta Chamber, plus you could join Greater North Fulton, you could join the Metro Atlanta Chamber, you could join the Georgia Chamber, the American Chamber of Commerce. The list goes on and on. How do you decide which one—you can’t do them all. Most people can’t do. Well, some people, they can, but they’re probably clinically insane. How do you choose which one is right for you?

Deborah Lanham: [00:39:27] I think you’re right. And the reason you can’t be a part of all of them is budget won’t allow you to be a part of all of them. Where budget isn’t necessarily an issue for an organization, then they have the ability to be very strategic about where they put their people. And so, they may join all of their large county chambers. You have, you know, the Metro Atlanta Chamber, you have Cobb and Gwinnett. And then, we have, you know, the Georgia Chamber of Commerce, our large state chamber.

Deborah Lanham: [00:39:55] So, that is a great smart thing to do as a business organization to assign your people and usually has to do with where do they start their day or end their day, because we know it’s difficult for my employee to get all the way over into Cobb and then, drive all the way back home over into Forsyth County. So, I think that’s a strategy that a business would come up with. If you’re in a community and it’s, you know, a small company or a mid-sized company, and Alpharetta is your home, Alpharetta is where your business is located, then it makes sense to be a part of your Alpharetta Chamber.

Deborah Lanham: [00:40:29] And it’s not taxing on your time or on your budget. And it makes sense, because there is value and you’re going to grow your business. And let me just add, the partnerships that chambers have with one another. You know, I’m very connected to the Georgia Chamber. I’ve known Hala Moddelmog as a part of the Metro Chamber and worked with Jack Murphy there. And obviously, the Greater North Fulton Chamber of Commerce right here in our footprint as well, a regional chamber over the North Fulton region. And so, these are important strategic partnerships that we have one another.

Deborah Lanham: [00:41:06] I worked very closely with Vince DeSilva over at the Gwinnett Chamber, who’s now with TAG. And it’s great to see him in a new role with the Technology Association of Georgia. But these are relationships that you have with individuals and it strengthens the work in it’s whole. And that’s why I think it’s important that these organizations are aligned and working together and our partners for the greater good of not only our communities, but our state. And we have such a wonderful state with all of this business coming to Georgia right now. It’s just been incredible.

Michael Blake: [00:41:39] So, we’re running out of time. We’ll just have time for a couple more questions here. But one I want to make sure I ask is, I do not know if this is true for Alpharetta, but most chambers have varying levels of membership, right? And there’s usually some form of metal, right? Ranging from zinc, I guess, to platinum. And I guess my question is, how do you decide if you want to kind of step up your membership to that more precious metal, if you will, right? What’s the value proposition that’s being offered there?

Deborah Lanham: [00:42:15] We do. We have multiple levels to join. And I’m going to be simplifying some of that right now. So, what you would see on my website will be enhanced or changed in some way or form. But still, there’s an entry level for small business and it’s, you know, one or five employees and then, you start at that $300 level. But yeah, I have a $10,000 visionary level, which is special for that business, that professional who wants to engage on our board, who wants to be a part of the life of the chamber and the community it serves and wants to get more involved in Alpharetta, for example, for us.

Deborah Lanham: [00:42:54] And so, I would say, you know, when we look at those levels and the members that are at these different levels, there may be an opportunity to talk to someone whose mid-grade membership might be able to be enhanced. And then you start applying some of the—for example, at a $10,000 or even a $5000 chairman circle, now, you’re going to be able to roll in the costs of the breakfast every month or rolling costs so that you’re paying one time and then, you’re able to, in that membership, enjoy events, some sponsorship possibly, and even serve on our board.

Deborah Lanham: [00:43:31] So, those are things that we like to discuss individually with each member. But those opportunities are available for those businesses who do want to. I would say at that visionary level, that’s very special. That’s a business that’s saying we really want to engage in the Alpharetta Chamber, in our community and have more of a presence here and want, for the greater good of our community, support and advance your work as a chamber of commerce.

Michael Blake: [00:43:57] Deborah, we’ve learned a ton over the 45 minutes or so. We could do another hour, as is the case with most of these episodes, so this is no exception. But if people want to learn more about whether it’s the Alpharetta Chamber of Commerce or maybe they live in Nebraska and they just are curious about the Omaha Chamber of Commerce and is joining a chamber right for them, can they contact you? And if so, how could they do that?

Deborah Lanham: [00:44:20] Absolutely. I would love to hear from you and email is a great way to connect with me. It’s deborah, D-E-B-O-R-A-H, @alpharettachamber.com. And would love to hear from you. And I know people in Omaha.

Michael Blake: [00:44:37] Okay. Very good. So, that’s going to wrap it up. Maybe Warren Buffett is listening. So, that’s going to wrap it up for today’s program. I’d like to thank Deborah Lanham so much for joining us and sharing her expertise with us today. We’ll be exploring a new topic each week. So, please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy this podcast, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: Deborah Lanham, Mike Blake, networking, promoting business

Decision Vision Episode 52: Should I Have a Veterans Hiring Program? – An Interview with Jason Jones, CRESA

February 20, 2020 by John Ray

veterans hiring program
Decision Vision
Decision Vision Episode 52: Should I Have a Veterans Hiring Program? - An Interview with Jason Jones, CRESA
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veterans hiring program
Mike Blake and Jason Jones

Decision Vision Episode 52: Should I Have a Veterans Hiring Program? – An Interview with Jason Jones, CRESA

What benefits does employing veterans as part of a veterans hiring program bring to my company? What are some of the unique skills and perspectives veterans will bring to my company? Former Naval Flight Officer now technology and telecommunications advisor Jason Jones answers these questions and much more in this episode of “Decision Vision.” The “Decision Vision” series is hosted by Mike Blake and presented by Brady Ware & Company.

Jason Jones, CRESA

veterans hiring program
Jason Jones

Raised in Atlanta, GA, Jason Jones attended Duke University in Durham, NC on a Navy ROTC scholarship. After graduating from Duke in 1991 with a degree in political science, he traveled to Pensacola, FL and enrolled in naval flight school. In 1993 upon moving to Virginia Beach, VA, he learned to fly the A-6E Intruder as a Bombardier/Navigator and was subsequently assigned to a fleet squadron, deploying on the USS Enterprise.

In 1997 Jason left Virginia Beach to begin a tour of duty as a navy medical recruiter in Phoenix, AZ while attending Arizona State University’s Evening M.B.A. program. After leaving the Navy in 1999 he worked for one and a half years as a civilian headhunter recruiting senior executives for health insurance companies.

Upon finishing his M.B.A. in August of 2000 and before entering the business world full-time, Jason departed on a 15-month world trip on September 18th, 2000, returning to the United States on December 18th, 2001. He later documented his travels in the book Nomad:  Letters From a Westward Lap of the World.

After returning from his trip, Jason entered the commercial real estate industry, ultimately landing at Cresa.

Jason leads Cresa’s technology infrastructure advisory service line, C3, which assists clients with Communications (voice), Connectivity (Internet) and Cloud services – especially during a relocation. Choices for phones, Internet and cloud services are endless and constantly changing, leaving companies little time to stay on top of current options and put together the best solutions. C3 helps clients navigate the confusion caused by evolving and disruptive technologies and ensures coordination between the real estate and IT departments. IT leaders benefit from C3’s experience analyzing technologies from a vendor-neutral perspective and selecting best in-class solutions to match their specific needs. Solutions include hosted VoIP, SD-WAN, cloud hosting and cybersecurity.

To contact Jason, follow this link.

For more information on Hire Heroes, which Jason mentioned during the show, follow this link.

Michael Blake, Brady Ware & Company

Mike Blake

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

veterans hiring program“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] And welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:38] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton, Columbus, Ohio, Richmond, Indiana, and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:03] So, the question and decision point that we’re talking about today is should I put in a veteran hiring program? And, you know, this topic is one that comes up every once in a while, but I think it’s particularly timely, because we are in an economy, at least, by some measures of unprecedented growth. It’s inarguable that we’re at historic lows in terms of unemployment. And I’m not going to debate on this podcast what that means or does not mean.

Mike Blake: [00:01:38] I’m sure there’s an economics podcast out there you can listen to if you really want to get in the weeds of that. But the fact of the matter is that, you know, it’s pretty easy to find a job and it’s pretty hard for employers to find qualified people to fill those slots at just about any level. And we are seeing some indications that wages at all levels of the labor force, including at the so-called unskilled or bottom end of the wage scale are creeping up.

Mike Blake: [00:02:07] So, that’s telling you there’s some tightness in the marketplace as we record this on January 10, 2020. And one of the things that then comes to my mind and gets me thinking is, you know, are we, as an economy, hiring everybody that we could? Are we leaving, you know, stones unturned? And there are two groups in particular that interest me in this area. I mean, everybody talks about, you know, people who have been out of the workforce a long time and now, they’re being pulled back in, talk about moms or even potentially stay-at-home dads that are coming back into the labor force.

Mike Blake: [00:02:44] But two groups that are getting, I think, now more attention are people with criminal records. That’s a topic I definitely want to approach. And I’ve got a guest that I’m eventually going to track him down and get him to come on, but we’re not going to do that today. And then, veterans, not that I would put them in the same group, but there are two groups that I think are historically neglected for, you know, whatever reason.

Mike Blake: [00:03:08] And, you know, I hear a lot of stories where, you know, veterans perform their service to our country for some period of time, whether it’s, you know, a brief enlistment or whether it’s a long career up until retirement. And then, they find that the civilian work environment is not particularly welcoming for veterans that are making that transition. And so, I think it’s interesting to kind of explore why that is and also interesting then to talk about, you know, what is the case for hiring a veteran.

Mike Blake: [00:03:43] And full disclosure, I think some of the best business leadership books I’ve ever read have been written from a military perspective. One of them is called Semper Fi. And I read this, I’m going to say, about 15 years ago. And it talks about the application of US Marine Corps team building methods, particularly, when they train recruits from day one until they get through the crucible. And I think that’s an outstanding book.

Mike Blake: [00:04:11] Not that we’re necessarily going to have accountants that are climbing rope ladders and so forth and staying out in the woods for 72 hours of food or water, but there are a lot of things there that I think are useful. And then, another one, by a guy named Michael Abrashoff, retired captain of the US Navy, called it, It’s Your Ship. And it’s a story about how he turned around the USS Benfold, which was the worst performing ship in the US Pacific fleet into the second highest performing ship with only a two-year tour of duty.

Mike Blake: [00:04:45] And I heard him speak on that, fascinating, read the book, learned a ton. So, you know, to me, you know, the military has a lot to offer in terms of skills that can translate into business. I find it perplexing that employers, sometimes, find themselves hesitant to hire veterans. So, I want to talk about that. And as you know, from our show, I don’t talk about these things myself, because I don’t know anything about it, so we’re going to bring in people who do know something about it.

Mike Blake: [00:05:18] And joining us today is a longtime friend, Jason Jones. Jason leads a C3 service line at Cresa, the world’s most trusted occupier-centric commercial real estate firm. C3 stands for communications, connectivity, and cloud. And helps information technology leaders navigate the decisions that lie at the intersection of real estate, finance, and information technology. And, you know, as an aside, that’s an interesting place to be, because not that long ago, we thought that information technology was going to obviate our need for real estate and real estate is going to go away, and it’s turned out to be the exact opposite just like we thought paperless technology gets rid of paper.

Mike Blake: [00:05:59] Information technology leaders benefit from Jason’s experience selecting best in class infrastructure service providers who can match each firm’s specific needs. Cresa is an international commercial real estate firm headquartered in Washington, D.C. Cresa represents tenants and provides real estate services, including corporate services, strategic planning, transaction management, project manager, facilities management, workforce and location planning, portfolio lease administration, capital markets, supply chain management, sustainability, sublease, and distribution.

Mike Blake: [00:06:29] Formed in 1993, Cresa now has more than 60 offices and 900 employees. In addition to Jason’s information technology consultation and real estate experience, Jason brings lessons learned during his military career. His naval service included flying A-6 Intruder attack jets off of aircraft carriers. While planning and flying tactical missions, he developed a talent for communicating details with concise, mission-oriented focus.

Mike Blake: [00:06:56] Jason has successfully turned his disciplined approach as a naval aviator into a methodical approach for helping companies optimize their corporate real estate and information technology services. After departing the Navy, Jason earned an MBA from Arizona State University and complete a 15-month solo trip around the world about which he wrote and published a book, which I believe is called, NOMAD: Letters from a Westward Lap of the World.

Mike Blake: [00:07:21] His military travel and academic background give him the depth and character to guide his clients to the most effective solutions. Since then, Jason has been active as an advocate to help companies understand the benefits of hiring military veterans and coaching veterans in how to prepare themselves for civilian employment. Jason’s affiliations include the Atlanta Commercial Board of REALTORS, Million Dollar Club, Buckhead Church member, Starting Point leader, and Duke’s C-Level graduates of Duke University and is a founder.

Mike Blake: [00:07:50] He is a flight school Top Gun recipient. And that’s not exactly what you may think it means. We’ll ask Jason to explain that. It’s still good, it’s just not the movie. Published the book that we just talked about. He’s a CoStar Power Broker from 2005, ’07, ’08, Volunteer of the Year, and two-time recipient of the Forever Duke Award. Jason, thank you for coming on our program and thank you for your service to our country.

Jason Jones: [00:08:16] Michael, it is a pleasure to be here. And I just want to say, I’m so glad that I’m at the right podcast. I got a little nervous when you talked about the criminal records and I thought, “Well, maybe that’s the one I should have supposed to do.” But showed up with the right one. I’m glad this is the right fit.

Mike Blake: [00:08:30] You did show up at the right one, yes.

Jason Jones: [00:08:32] Thank you.

Mike Blake: [00:08:32] Yes. Now, when we do that other one, we’ll—no, Jason is about as squeaky clean as it comes. And it’s because of people like Jason that shrieking cowards like me can post anything they want on Facebook. So, thank you for that. So, before we get into this, as I was telling you, you know, before we actually hit the record button, you know, when I invite people on the show, some people are people I’ve known a long time, something about meeting for the first time on the show, you and, I have known each other for, I think, a decade now.

Jason Jones: [00:09:03] Yeah, a

Mike Blake: [00:09:03] t least. And I did not know that you were a Top Gun recipient. What does that mean?

Jason Jones: [00:09:08] Sure. Well, when I was going through flight school, it’s a very challenging time. As I mentioned, this was back in the early-’90s. And the key to flight school is you only get to select the jet that you want to fly, is if you graduate number one in the class. And so, there’s a lot of incentive and we’re naturally competitive people anyways.

Mike Blake: [00:09:36] Yeah.

Jason Jones: [00:09:36] And the award that they give to that person is called the Top Gun award. So, that was what that was.

Mike Blake: [00:09:42] Interesting. So, you chose the A-6 Intruder?

Jason Jones: [00:09:45] I did.

Mike Blake: [00:09:45] Why?

Jason Jones: [00:09:46] You know, I was a bombardier navigator. I was a naval flight officer, which means that I ran systems on the aircraft. I help navigate the aircraft to help do all the mission planning and the strike planning and the bomb weaponeering, et cetera. And out of all the jets that were available for that type of position in the fleet, the one that I found most attractive is the one that was really at the center piece of the carrier battle group. And when you think about it, the aircraft carriers are made to put bombs on target.

Mike Blake: [00:10:17] Yeah.

Jason Jones: [00:10:17] Ultimately, it’s to project power. The jet that does that and the person who is putting crosshairs on the target and planning those missions is the bombardier navigator in the A-6 Intruder. So, that’s the one place I wanted to be.

Mike Blake: [00:10:31] Okay.

Jason Jones: [00:10:31] It was a great ride.

Mike Blake: [00:10:33] And so, you published a book. I was aware of your trip around the world, did not realize you published a book, so that’s going to go into my Kindle reading list. Tell me-

Jason Jones: [00:10:41] Well, really quick, as I like to tell people, when you read it, remember, it’s not Hemingway, it’s Jones. So, set your expectations.

Mike Blake: [00:10:52] Well, the good news, I’ve not been able to get through a Hemingway book in my entire life.

Jason Jones: [00:10:55] There you go.

Mike Blake: [00:10:55] So, I actually think that’s a positive. But tell us a little bit about the book and what drove you to write that book?

Jason Jones: [00:11:04] Yeah. Sure. Well, you know, I’ve always had a love of adventure. And I think that’s part of what attracted me to naval aviation. And so, when I got out of the Navy, after an eight-year tour of service, I decided to travel around the world by myself on a backpacker’s budget, $40 a day. And as I traveled, I kept a journal, as I was taught as a young child on family vacations, to always keep a log or journal. So, I did that. And then, I started drafting e-mails to friends and family, letting them know what I was doing, where I was.

Jason Jones: [00:11:43] And as I kept doing that, going from country to country to country, because this was a 15-month trip, I went to approximately 25 countries. And we’re not talking about Europe, where everything’s real close to each other, we’re talking about Africa and South America and it’s a pretty long distance. So, I covered some ground. But I got the idea, I’m going to share this with other people. I’m going to encourage especially Americans to contemplate to consider international travel. I think that’s a good thing for those people and also, just for relations between people in different countries.

Mike Blake: [00:12:18] Yeah.

Jason Jones: [00:12:18] And that’s why I made the effort to put it together into a book.

Mike Blake: [00:12:22] I could not agree with you more. You know, as you know, I’ve lived abroad early in my career and in Russia. And one of the more striking things from that era was that I worked in a building in Minsk that was a bomb shelter, right? And then, you realize those bombs are supposed to be coming from my home country, right?

Jason Jones: [00:12:45] Yeah.

Mike Blake: [00:12:45] And that’s a point, for me, I realized, you know, they have a different economic system-

Jason Jones: [00:12:50] Yeah.

Mike Blake: [00:12:50] … but they’re afraid of this. You know, they’re every bit as afraid of us as we were of them.

Jason Jones: [00:12:54] Yes.

Mike Blake: [00:12:55] Right?

Jason Jones: [00:12:55] Yeah.

Mike Blake: [00:12:55] And all concerned and everything else. And, you know, unless you go there and you see that and you touch it, you just never experience that. And, you know, I’ll also take that option to brag on one of my cousins. She also was a naval aviator.

Jason Jones: [00:13:11] Oh, nice.

Mike Blake: [00:13:11] Was flying—whatever the term is with the person who operates the radar.

Jason Jones: [00:13:18] Okay.

Mike Blake: [00:13:18] I believe it’s called a Hawkeye aircraft, surveillance kind of-

Jason Jones: [00:13:20] Yeah, E-2C Hawkeye.

Mike Blake: [00:13:22] There you go.

Jason Jones: [00:13:22] Sure.

Mike Blake: [00:13:23] But she was recently admitted into the Monterey Foreign Language School, where she’s now learning Arabic.

Jason Jones: [00:13:30] Yeah.

Mike Blake: [00:13:30] So, her goal was to get stationed over there. And-

Jason Jones: [00:13:32] Yeah.

Mike Blake: [00:13:32] … you know, what a great opportunity, right? Again, there is no danger of my joining the military, but there’s one part of which I was envious, that language school, it’s the finest language structure the world and she’s going to take that opportunity to learn about the Arabic world, right?

Jason Jones: [00:13:49] That’s right.

Mike Blake: [00:13:49] Which is so very different. And Jennifer, you’re awesome. So, if you’re listening to this podcast, you heard it here over the internet. All right. So, you know, you’ve been successful, you joined The Million Dollar Club, which I assume has something to do with doing something that’s worth a million dollars.

Jason Jones: [00:14:09] Somewhat.

Mike Blake: [00:14:09] Somewhat, right?

Jason Jones: [00:14:10] Yeah.

Mike Blake: [00:14:10] So, how, in your mind, has your military service helped you get to that point?

Jason Jones: [00:14:18] You know, I think what the military and specifically, I’ll speak to naval aviation.

Mike Blake: [00:14:25] Yeah.

Jason Jones: [00:14:25] Because that’s what I come from.

Mike Blake: [00:14:26] Yeah.

Jason Jones: [00:14:26] Tactical aviation, launching off the aircraft carriers. It ingrained in me deeply sort of three character traits or qualities. One is I became very detail-oriented, I became process-driven and mission-focused. Those three things, detail-oriented, process-driven, mission-focused. And as I break each of those down, you know, in the Navy, when you’re flying jets and you’re dropping bombs, you really do need to pay attention to the details, okay?

Mike Blake: [00:15:00] I guess so. That makes sense to me.

Jason Jones: [00:15:02] And a little tiny detail, I’ll give you one example, so you might get a couple of sea stories here on this podcast.

Mike Blake: [00:15:08] That’s what I’m hoping.

Jason Jones: [00:15:09] Okay? I had an instructor in flight school who was doing some practice bombing runs in a training exercise. And you have some settings on the armament control unit that will determine the distance that the bombs will hit the ground or the time interval between release of bombs and those two are related. And then, you have another number that’s the number of bombs you’re going to release. And the A-6 could carry 24, 25 500-pound bombs. Typically, we only carried, you know, 12 or so and then, maybe a missile or two.

Jason Jones: [00:15:50] But in this case, they were going through the practice area, they were running out of their time on target on station and they said, “Well, let’s do one more run through and let’s run up the number to clear all of our bombs off of our jet.” The problem with that was their settings for the timing in between the release of bombs was too short of a time for safety. It was only good for dropping one at a time. So, when they dialed up the number of bombs and there was a little note in the weaponeering that said, “Do not drop more than one bomb at a time”, under the settings.

Jason Jones: [00:16:29] So, they were under pressure. They need to get these bombs off. They need to get out of the target area, because you got some other jets that are coming in. They dialed it up, had a bomb-to-bomb collision under the jet, it exploded, and they had to eject. So, that’s a sort of a real-life story. And it’s not that in the business world, we have, you know, situations where, you know, the cost of a missed detail is your life, but you certainly learn it with that level of intensity when you’re in the military. And I think that can roll over into being a really good employee who pays attention to the details.

Mike Blake: [00:17:06] And, you know, business being more forgiving, right? Very few people die.

Jason Jones: [00:17:10] Yes.

Mike Blake: [00:17:10] It might be embarrassing. You might even lose a job, right?

Jason Jones: [00:17:12] That’s right.

Mike Blake: [00:17:13] But nobody’s going to die from it. By definition, that makes it more forgiving, right?

Jason Jones: [00:17:18] That’s right.

Mike Blake: [00:17:18] So, if you have a mental kind of fault tolerance of that military, you know, you make mistakes, people die kind of thing-

Jason Jones: [00:17:25] Precisely.

Mike Blake: [00:17:27] … then it must seem like almost like child’s play-

Jason Jones: [00:17:30] Yeah.

Mike Blake: [00:17:30] …in a more forgiving environment.

Jason Jones: [00:17:32] You’re right. It’s more forgiving. But the second part of that, so I mentioned being process-driven. And my sea story there that I think is kind of somewhat humorous in how it applies to the private sector is I had a squadron mate who was taking off of the aircraft carrier. And naval aviation and the military, in general, but certainly, naval aviation is really big on checklists. All of aviation is, for that matter.

Mike Blake: [00:18:04] Right. My dad was a pilot. Even up until the day he couldn’t fly anymore, 30 years, always had the same checklist.

Jason Jones: [00:18:10] Yes, precisely. It’s a process. It helps with error avoidance and increasing efficiency. So, he was taxiing around the deck of the aircraft carrier. And as you taxi, you know, you have your rudders, are your steering wheel. So, that changes with the nose gear points. You also tap your brakes. So, he pulls up into the catapult and, you know, gets hooked up to the carrier, then he goes into what’s called tension, which is where you go to full power, but they haven’t shot you off the front end yet. And now, you do a quick checklist. You check your flight surfaces are moving properly with your stick. You check that the weight that you have communicated to the catapult officer is correct, because they’re going to set the pressure of the steam to launch you based on what your weight is. They don’t want to do too fast, don’t want it too slow, it’s got to be just right.

Mike Blake: [00:19:10] Yeah.

Jason Jones: [00:19:10] So, you’re cross-checking that. And the other thing that you check is that your feet are off the brakes and you say it out loud, “Feet off the brakes.” So, he goes through his checklist, salutes the catapult officer. Catapult officer fires the button to send him down the front. And we hear this loud boom, boom. That was his two main mounts, his tires blowing, because they didn’t roll, because he still had his feet on the brakes. So, guess what his call sign is for the rest of his career? Boom-Boom. So, it’s just a-

Mike Blake: [00:19:45] He’s lucky he still had a career.

Jason Jones: [00:19:47] Yeah. Well, precisely, but there is some forgiveness for things like this.

Mike Blake: [00:19:50] Yeah.

Jason Jones: [00:19:50] And he was fairly young and new. But the whole point of that is there’s a process. And that process, it sometimes includes a checklist. It increases efficiencies in error avoidance. And that’s a good thing in the private sector also.

Mike Blake: [00:20:07] And I thought for sure you’re going to give us some story about landing on an aircraft carrier, which, to me, has got to be one of the hardest and most terrorizing things to do. I mean, talk of something that needs precision and discipline.

Jason Jones: [00:20:20] Precisely. And, you know, kind of depends on the weather and time of day. Nighttime, bad weather, not so fun.

Mike Blake: [00:20:29] Oh, no.

Jason Jones: [00:20:29] Daytime, good weather, actually fun.

Mike Blake: [00:20:32] Okay.

Jason Jones: [00:20:32] Could be a good time.

Mike Blake: [00:20:33] Okay.

Jason Jones: [00:20:35] But, you know, that’s a process also. And the more consistently you can do the processes and trust the process, take the time to think about what should be the right process, the better success that you’re going to have, the fewer errors you’re going to have, the greater efficiencies you’re going to have. And again, all of that translates into a good employee, someone who has an appreciation for details, for process. And then, my third one was mission-focused. And that’s sort of the X factor that I think has helped me in my career.

Jason Jones: [00:21:08] It’s not getting lost in details, understanding that there’s a bigger picture, and that we’re going to accomplish the mission. That’s the thing about somebody coming out of the military, is if you give them a goal, if you give them a mission, that’s what feeds them. They want to accomplish the mission and they’ll do whatever it takes when you have their loyalty and you tell them that you’ve got their back. So, I think that’s another key attribute of, A, what helped me in the private sector and I think what the benefit is of hiring someone and having a veteran-hiring program.

Mike Blake: [00:21:43] So, you know, it certainly sounds to me like you credit your military service pretty heavily with the success that you have been able to achieve and sustain. Is that why you’re so passionate about sort of helping other veterans find their place and helping other companies find, you know, a great employee?

Jason Jones: [00:21:59] Yes. So, it’s a couple of things. One is, I do see the benefit it gave to me and how that parlays itself into the benefits to my company that I work for and the clients that I work for. But there’s also just a sense of having walked a mile in those shoes of making that transition and it can be a very difficult time for someone coming out of the military. And when you’ve been through that crucible, you naturally want to help people get through it as well.

Mike Blake: [00:22:35] And was it hard for you?

Jason Jones: [00:22:36] It was very hard.

Mike Blake: [00:22:37] What about it was so hard?

Jason Jones: [00:22:38] You know, it was one of those things where, A, I didn’t know exactly what I wanted to do. So, I needed some help there, some guidance as to what’s the right fit for me, so I can be a good fit for the company I work with ore a good fit for the clients that I work with. So, I needed some help there. It happened to be a terrible economy when I was getting out. This was not too long after 9/11 and that was a terrible time to try to get hired by anybody, particularly a 100% commission only-based job in commercial real estate, where most people are older and have more experience and that’s how they get hired. But thankfully, I had an angel that flew into my life who hired me. And we’ve been partners for 19 years. So, it can work out to hire someone fresh out of the military.

Mike Blake: [00:23:30] Oh, there’s that loyalty, too, right?

Jason Jones: [00:23:32] And, you know, that’s another thing that I was going to say. I described attributes for me as a naval aviator, as a tactical aviator, I also think there are three characteristics of anyone coming out of the military, just generally speaking, that they’re going to have their benefit to the private sector, to companies hiring them. And you hit on one of them. But I would say it is, they have a tremendous work ethic, they’re extremely loyal, and they have a sense of personal responsibility.

Jason Jones: [00:24:09] So, tremendous work ethic, extremely loyal, and a strong sense of personal responsibility. Those three characteristics go a long way. I mean, you can do a lot with that raw talent, those raw materials. You just have to have a program to capture that talent, to bring it into your organization and then, you’ve got to have some degree of training to help. And that would be the case with anyone coming into an organization now. But I think that’s the investment that’s worth making by private sector companies.

Mike Blake: [00:24:46] And that last part about not giving up and, you know, making sure that you complete your task, as I’ve read books on military leadership, I think that’s something that they do exceptionally, exceptionally well. They’re so good at team building.

Jason Jones: [00:25:05] Yeah.

Mike Blake: [00:25:06] Because ultimately, you have to be able to rely on those people in combat, ultimately, right? So, there’s just no F-ing around at that point, I have to imagine.

Jason Jones: [00:25:15] Right.

Mike Blake: [00:25:15] And, you know, one thing that struck me about the Marine training program, you know, that one of the ways they trained people, I don’t know if it’s the same way in the Navy, but basically, if somebody in the platoon screws up, the entire platoon suffers, right? And to my mind, I think that’s about as effective a motivator as anybody. It’s one thing if you suffer all the time when you screw up.

Jason Jones: [00:25:39] Yeah.

Mike Blake: [00:25:39] But then, you see that other people are going to pay a price when you screw up, which is exactly what they’re trying to do, right?

Jason Jones: [00:25:43] Yeah.

Mike Blake: [00:25:43] You screw up, they die.

Jason Jones: [00:25:44] That’s right, yeah.

Mike Blake: [00:25:45] I think that is immensely effective. But then, it produces somebody whose focus is not even on the dollars, right?

Jason Jones: [00:25:52] Right.

Mike Blake: [00:25:52] Once you’re on that team, you’re just like, “I don’t want to be the weak link.”

Jason Jones: [00:25:56] That’s right.

Mike Blake: [00:25:56] Period.

Jason Jones: [00:25:57] Well, you reckon, A, there’s that sort of comradeship and being a part of something larger than yourself are great qualities for any organization. And you also have, again, that sense of personal responsibility, that accountability to each other. And I’ll give you a good example of the kind of accountability that’s expected in the military. And I think, gosh, this is the kind of person that I would want to have in my organization. There was someone I knew, he was a Marine Corps officer, and he was stationed for a period of time at the Pentagon.

Jason Jones: [00:26:36] So, he’s living in Arlington, I believe it was. And he’s got to drive in the next morning. It’s his day to do what’s called stand the duty. So, every command has a duty officer, someone who answers the phone. If there’s some type of emergency, they would be the one that’s in charge. And it’s a typically a shift during the day. You’re the squadron duty officer for that day or whatever the case may be. There was a terrible snowstorm and ice everywhere on the roads. He couldn’t make it in to stand the duty the next morning.

Jason Jones: [00:27:14] It happened overnight. So, he calls up to his boss and he says, “Hey, look, as you know, there’s this terrible snowstorm or ice storm, I can’t get in to stand the duty.” Well, the response from his boss was, “Why didn’t you drive in last night?” You saw that the weather report said, “There might be—your job is to be here and we don’t shut down, we don’t not go to war, we don’t not do our duty just because it snowed or there was ice on the roads.

Mike Blake: [00:27:47] Yeah.

Jason Jones: [00:27:47] You should have come in, set up a cot, and slept here overnight. That’s the level of accountability that I’m talking about. Now, am I saying that we really need to go that far in the private sector? Not really. But boy, wouldn’t you want somebody who comes from that type of mentality working in your organization?

Mike Blake: [00:28:06] And the underlying texts of that are our time management-

Jason Jones: [00:28:09] Yeah.

Mike Blake: [00:28:09] … and contingency planning.

Jason Jones: [00:28:12] Correct.

Mike Blake: [00:28:12] Right?

Jason Jones: [00:28:13] Yes.

Mike Blake: [00:28:13] And contingency planning and making sure that you control the outcome.

Jason Jones: [00:28:19] Right.

Mike Blake: [00:28:20] Right. What happened in that case is that that individual allowed nature to control the outcome-

Jason Jones: [00:28:26] Right.

Mike Blake: [00:28:26] … which is not—like you said, you know, the military doesn’t just take days off.

Jason Jones: [00:28:31] Right. “Oh, it snowed today.”

Mike Blake: [00:28:32] That’s a great way to get bombed. So-

Jason Jones: [00:28:35] That’s right.

Mike Blake: [00:28:37] So, why do you think veterans have had trouble finding places in—actually, I’m going to come back to that because I want to go back to something that I think is so important to your transition. It’s better than any of the questions that I wrote down-

Jason Jones: [00:28:54] Okay.

Mike Blake: [00:28:54] … which is you talked about that difficulty transitioning from military into civilian life.

Jason Jones: [00:29:02] Yes.

Mike Blake: [00:29:03] What was it that made the transition possible? So, an angel came down, gave you a shot.

Jason Jones: [00:29:09] Yes.

Mike Blake: [00:29:09] 19 years later, you’re still there.

Jason Jones: [00:29:11] Right.

Mike Blake: [00:29:11] I want to drill down more into the micro there, right? They hired you, but you knew how to navigate and how to drop bombs on people.

Jason Jones: [00:29:21] That’s right.

Mike Blake: [00:29:23] As far as I’m aware, that’s not part of the Cresa job description. You’ve never mentioned either of that coming up when you’re selling at least to a data center.

Jason Jones: [00:29:29] Right.

Mike Blake: [00:29:30] Right?

Jason Jones: [00:29:30] That’s correct, yeah.

Mike Blake: [00:29:31] So, what was that process like to get you from that to where you are? Did they have to train you a ton? Was it learning by doing? Was it formal training? Was it mentoring? Something else I can’t even think, dumb luck, what was it?

Jason Jones: [00:29:48] Grit. Grit. I mean, this is the other thing, it’s that I mentioned the mission-focused and just doing whatever it takes to get the job done. One of the things that—A, I love to learn, so that’s convenient. But as soon as I-

Mike Blake: [00:30:10] You don’t go to Duke if you’re a rotten student.

Jason Jones: [00:30:13] My application got put in the wrong pile, I’m telling you. I don’t know how I got in there, but I just feel like, you know, someone took a chance, so to speak, on me, because they saw raw talent. And then, I had the grit to persevere and teach myself to a large degree, but thankfully, I had the grit and the humility to go to people and learn from them and ask for help. And that’s really what I did. It took me 90 job interviews to get that job.

Mike Blake: [00:30:50] Ninety?

Jason Jones: [00:30:51] Ninety.

Mike Blake: [00:30:52] Wow.

Jason Jones: [00:30:52] I counted it out. Now, these job interviews were not all interviews for a specific job, it was all informational interviews.

Mike Blake: [00:30:58] Right.

Jason Jones: [00:30:58] But I counted it up and it was 90 people in the commercial real estate industry in Atlanta. Number 90 hired me and hired me on the spot. But I kept learning along the way. And then, once I got that position, I kept those interviews going with, now, people inside the organization so that I could learn. And it was all on the job training and that’s part of what was tough about the transition. But what I sensed coming out of the military is it gives you all of these raw material qualities that put you in a position for success and to really contribute significantly to whatever organization does themselves a favor, in my opinion, and hires you.

Mike Blake: [00:31:45] So, you know, that’s interesting. So, a learning point that I’m getting out of this is that, you know, if you’re an employee and you’re looking at a veteran and most of the time, you’re going to look at somebody that does not have a directly translatable skill, right? Some of them are. You know, I have another cousin who is in information security and satellite communications. He’s a major in the army. He’ll transition to civilian business.

Jason Jones: [00:32:09] Yeah.

Mike Blake: [00:32:09] Just in fact, he may just stay in the same place, change his uniform-

Jason Jones: [00:32:13] Yeah.

Mike Blake: [00:32:13] for a suit, basically, or khakis. But I think what I’m learning is that as a hirer, I need to evaluate a little differently, right? Because, you know, most people are not going to walk in, “Oh, I have five years of experience in accounting”, right? Or, “I have four years of experience in law”, you know, whatever, real estate. But the X factor is that a lot of civilian candidates, if they don’t have that, it’s a wild card as to whether or not they’ll be able to get there from there to here.

Jason Jones: [00:32:53] Correct.

Mike Blake: [00:32:53] Right? With a military person, with the military background or a veteran, that sounds like that’s a lot less of a wildcard.

Jason Jones: [00:33:01] Correct.

Mike Blake: [00:33:02] Because again, now, here’s new mission, right? And it doesn’t even enter your mind that this isn’t going to work out, you just figure it out.

Jason Jones: [00:33:13] We’re going to burn the ships and we’re going to make it happen.

Mike Blake: [00:33:15] We’re going to burn the ships and we’re going to make it happen.

Jason Jones: [00:33:16] Yeah.

Mike Blake: [00:33:16] So, you know-

Jason Jones: [00:33:16] And also, one thing I’ll add is you also tend to get, particularly, if you’re hiring into a junior position, which really, sort of needs to be for a lot of folks that are, you know, four to eight years out of either college or high school and they’re now transitioning into the private sector for the first time, they’re not going to go straight into an advanced position.

Mike Blake: [00:33:38] Yeah.

Jason Jones: [00:33:38] It’s going to be entry level. And they understand that they’re going to rise up quickly and they’re going to want to. And I think you should give them that opportunity. But the thing that you get is you get maturity. This is someone who’s not straight out of college, who’s not straight out of high school. They’ve got some life experience under their belt. And that has to translate into greater productivity, better culture, all these things as you want that, really, you talk about culture, that’s an X factor. And when you have someone who is detail-oriented, process-driven, mission-focused, extremely loyal, tremendous work ethic, understands personal accountability, that’s the kind of person I want in my culture.

Mike Blake: [00:34:15] And, you know, think about how old were you when you were flying, right? It’s even A-6.

Jason Jones: [00:34:18] It would’ve been from the ages of, you know, graduate college when you’re 21 to 28.

Mike Blake: [00:34:26] So, at that age, you’re in charge of, say, a $20-million aircraft? $15-million, 20-million asset?

Jason Jones: [00:34:32] Easily.

Mike Blake: [00:34:33] Right?

Jason Jones: [00:34:33] Yes.

Mike Blake: [00:34:33] How many 22-year-olds are in charge of a $20-million balance sheet?

Jason Jones: [00:34:37] Well, it’s not only that, you’re in charge of where your bombs go.

Mike Blake: [00:34:42] Right. Yeah. Right. Yeah.

Jason Jones: [00:34:43] And that can be a lot more expensive.

Mike Blake: [00:34:45] And as we’ve learned, not all at once. Wherever they go, don’t do it all at once, right?

Jason Jones: [00:34:50] Yeah. Or, just pay attention to the details and do them in the right amount and the right settings, yeah.

Mike Blake: [00:34:55] Yeah. Okay. So, you brought up culture, which is great because that segues exactly to the question I want to go to next, which is, I think an interesting thing about the military, I don’t know if it’s good or bad, but it’s a fairly uniform culture by design. I’m sure there are different leaders, other different styles, but at the end of the day, you’re in the US military or you’re not, right? And if I’m wrong, please correct me, because, again, I don’t know anything, just the movies talking basically and having beers with my cousins.

Jason Jones: [00:35:29] Keep going.

Mike Blake: [00:35:32] You’re not going to see that in the business world, right? You’re going to see a wide gamut of cultures, some of which are highly ordered and regimented, some of which are highly decentralized, some of which may seem flat-out insane, right? I’m thinking of Silicon Valley startups, something like that, right? Are there certain cultures that you think veterans are going to gravitate more naturally towards or are veterans more of a Swiss Army knife, where they can adapt and succeed in whatever culture in which they happen to find themselves.

Jason Jones: [00:36:06] So, I think that is an excellent question and I’m so glad you asked it, because it gives me the opportunity to dispel a preconceived notion or just the wrong notion about the military and its culture.

Mike Blake: [00:36:26] Good.

Jason Jones: [00:36:26] So, what I’m going to say is counter-intuitive. The culture where someone from the military will probably not do well would be a highly regimented, militaristic culture.

Mike Blake: [00:36:41] Huh?

Jason Jones: [00:36:42] So, here’s why. What folks don’t realize is the culture of any type of military service, particularly those that are combat services, those that are going to require someone to go into combat, require that person, by definition, to operate in a dynamic environment. They have to be a decision maker. They need the freedom to make decision. So, what you do as a good leader for combat services is you explain the big picture, you tell them what the mission is.

Jason Jones: [00:37:20] And then, you leave it up to them to figure out how to do it, because you never know what happens in the haze of combat, where the circumstances are going to change. They’re going to have to call an audible. They’re going to have to adapt to the circumstances. But as long as they know the big picture and the ultimate goal, they’ll be able to make those changes in that rapidly changing dynamic environment to accomplish the mission.

Mike Blake: [00:37:48] That reminds me of something I think is attributed to Eisenhower, who said that every battle plan is great until the first shot is fired.

Jason Jones: [00:37:57] There you go.

Mike Blake: [00:37:57] Or, something like that, right?

Jason Jones: [00:37:59] That’s right.

Mike Blake: [00:37:59] You think about D-Day, there are so many things that went wrong in the invasion of D-Day. And to a certain extent, one of the reasons the Allies prevail was more things went wrong for the Germans, but it was not a flawless-

Jason Jones: [00:38:09] Whatever it takes.

Mike Blake: [00:38:10] Yeah, it was not a flawless-

Jason Jones: [00:38:11] No, of course not.

Mike Blake: [00:38:12] … operation, people landing where they weren’t supposed to.

Jason Jones: [00:38:16] Exactly.

Mike Blake: [00:38:16] Those poor guys crossing the British Channel, they’re fed like a 3,000-calorie breakfast. And, you know, you could predict how that worked out. Again, sort of best-laid plans. You’re right. It is counter-intuitive, because the stereotype is I’ve got to have almost a Marine boot camp-style of management to let somebody from the military really flourish. But in point of fact, where the military succeeds is when they have to think for themselves.

Jason Jones: [00:38:44] It’s-

Mike Blake: [00:38:44] Because you’re not always going to have somebody telling you what to do.

Jason Jones: [00:38:47] That’s what all of the training is about in the military, is putting that person in position to be able to think creatively for themselves, yet keep the bigger picture mission in mind. I can think of no better employee that I would want to hire.

Mike Blake: [00:39:05] Yeah.

Jason Jones: [00:39:05] Right?

Mike Blake: [00:39:06] Yeah.

Jason Jones: [00:39:06] That’s what you call, to some degree, this is a little slang, is a fire-and-forget-type employee.

Mike Blake: [00:39:15] Yeah.

Jason Jones: [00:39:15] Okay? And I got this from one of the guys who used to work for Buddy’s Copycat. And this person, when Scott was describing him as a mutual friend of ours, he said, “Oh, yeah, that guy’s fire-and-forget.” And what he means by that is there are anti-tank missiles, this is just one example where when you shoot that missile at the tank from a shoulder-fired launcher, there’s a little wire that uncoils, but it’s connected to that missile and you guide it all the way to the tank. That’s a guided-all-the-way-to-the-tank missile. But fire-and-forget would be that anti-tank missile can lock on to the heat signature of that tank or in some other way where it no longer requires guidance once you fire it out of the tube. So, it’s fire and forget. You see what I’m saying?

Mike Blake: [00:40:08] Yeah.

Jason Jones: [00:40:08] So, that’s the kind of employees you want and that’s where the culture, back to your original question, where someone from the military is going to thrive is when you give that person as much leeway, as much freedom as possible, build the walls that they have to operate in very high, but make them very, very wide and say, “Go get it done.” And then, you’re going to let the horses out of the gate and they’re just going to do amazing things for you.

Mike Blake: [00:40:37] So, all these sounds fantastic and as an aside, we actually have a Marine that is starting in our group starting on Monday. So, I’m really happy about that.

Jason Jones: [00:40:53] Yeah.

Mike Blake: [00:40:53] With all this that’s going for veterans, why does it seem like they have trouble getting hired?

Jason Jones: [00:40:59] Well, those that may have trouble and so, I don’t know what the statistics are or what have you, but I think there’s a couple of things. One is their preparation for transition. I can only speak to my experience.

Mike Blake: [00:41:14] Yeah.

Jason Jones: [00:41:14] I got out of the Navy in 1999 so that was a long time ago. It wasn’t a really great process for preparing me for that transition. So, I think preparation is one challenge, but the other challenge is, and that’s why I’m so glad to have an opportunity to do this podcast, is awareness on the business side, in the private sector of how to translate their experience, their character traits, the qualities that they bring to their organization, being able to have the vision of—the employer, having the vision of how can I plug this great talent into my organization. What type of veteran-hiring program can I put in place that’s going to attract that talent and then, how do I train it? And so, I think that that piece is a little bit missing. And there are some organizations out there that are dedicated to helping bridge that gap between those two sides.

Mike Blake: [00:42:15] You know, what it seems to me the way you’re describing it, it’s kind of a shift of cost, right? If I take somebody out of college who also has little civilian work experience and maybe they even do have work experience, the issue, I may have some comfort on the direct skill set translation side and the place that I’m going to wind up spending most of my time is on building culture, discipline, work ethic, the desirable, ironically, the soft things that make an employee long-term successful, right? If I hire a veteran, I may have to invest more, a little bit more in the skills training side, but those other things, in terms of showing up to work on time and following company procedures and getting along with people and stuff-

Jason Jones: [00:43:06] Being able to think creatively.

Mike Blake: [00:43:08] Yeah.

Jason Jones: [00:43:08] Keeping in the mission-focused.

Mike Blake: [00:43:09] Fire and forget.

Jason Jones: [00:43:09] Yes.

Mike Blake: [00:43:10] Right. That’s done. All right. I can check off the box and I can forget about it, right? And in the long run, it’s probably cheaper, easier, and more effective to train the execution skill than it is to train the person in terms of how they’re going to be as an employee and a team player, because the military’s already done that for you.

Jason Jones: [00:43:30] The execution skill piece, you know, that’s a repeatable process.

Mike Blake: [00:43:33] Yeah.

Jason Jones: [00:43:34] And the soft-side stuff, it’s more difficult.

Mike Blake: [00:43:40] And you may not know the answer to this question, so, you know, I’m going to give you a pass anyway, but I’m curious-

Jason Jones: [00:43:46] I can always pretend.

Mike Blake: [00:43:48] Yeah, well, there you go. So, one question I’m curious about, if somebody were to apply for a job at my organization, can I call the military and ask for a reference or is there a military record, something that I can access as a matter of public record? How do check somebody’s background the same way I might check a civilian applicant?

Jason Jones: [00:44:09] Yeah. My only answer to that that I’m aware of is that you can, at a minimum, ask the former service member for what’s called their DD 214.

Mike Blake: [00:44:22] Okay.

Jason Jones: [00:44:22] Department of Defense Form 214, which is your exit paperwork, which basically says, “Were you given an honorable discharge, a dishonorable discharge, a bad conduct discharge?” And that will at least let you know that standing. There may be more, Mike, but that’s the only one that I’m aware.

Mike Blake: [00:44:43] Okay, fair enough. So, this has been great, I’ve learned a ton. I think one last question I want to ask before we wrap up here is, is there a difference—you’ve talked a lot about, because I think this your direct experience, you know, you retired from the military relatively early in your life on the right side of 30, as they say, but there are others who go into the workforce that have had a full, is it 20 or 25-year retirement.

Jason Jones: [00:45:15] Twenty years.

Mike Blake: [00:45:15] Twenty years, right?

Jason Jones: [00:45:16] Yeah, in all of these.

Mike Blake: [00:45:17] And so, they’re going to, you know, have retired and they’re going to have someone coming, because they’ve earned it, is there any kind of—but a lot of them want to kind of have that second career, right? They’re only 45-ish and a lot of life left, right? Maybe you’re not ready to play golf for the next 50 years or so.

Jason Jones: [00:45:39] I’m over that number and I got a lot of life left.

Mike Blake: [00:45:41] There you go. God willing, right? So-

Jason Jones: [00:45:43] Right.

Mike Blake: [00:45:43] But is there a difference in your mind, do you think, in hiring somebody that’s had that full military career and is going for Chapter 2 as opposed to somebody who is relatively young and maybe, there’s a different kind of life priority? Am I making any sense with that question?

Jason Jones: [00:46:00] Yeah, I think the idea is how motivated are they going to be, really?

Mike Blake: [00:46:05] Yeah.

Jason Jones: [00:46:05] What kind of effort are they going to put in? How much initiative do they have, really? My thought there is, you know, let’s take a look at some private sector folks that never spent a day in the military and had a career change.

Mike Blake: [00:46:27] Okay.

Jason Jones: [00:46:27] So, for instance, let’s take one example. You’re familiar with David Cummings.

Mike Blake: [00:46:30] Sure.

Jason Jones: [00:46:31] Right? So, for those listening who don’t know, David Cummings is a highly successful entrepreneur, a serial entrepreneur-type. So, he had an exit, a big one with a company called Pardot. He had to be in his early-30s, I’m not sure, but he was young. When he sold out and made his gajillion-figure number and he came to you and he said, “Mike, you know, I’ve got an idea. I’ve got some ideas. I want to go to work”, would you hire that guy?

Mike Blake: [00:47:06] I think I would find a way to hire him, yes.

Jason Jones: [00:47:08] I think I’d find a way. David, if you want a job, if you’re listening, let us know. I’ll get you in touch with our HR person.

Mike Blake: [00:47:14] Right. He left that big exit, which was a barely big number, and, you know, bought a building and started a startup community.

Jason Jones: [00:47:25] Yeah.

Mike Blake: [00:47:25] The Atlanta Technology Village.

Jason Jones: [00:47:26] And a fund and-.

Mike Blake: [00:47:27] And, you know, all sorts of things. So, it’s less about, are you at the end of one career and how motivated are you, because you finished up this career and maybe you have a pension, it’s really about the person. How hungry is that person? I just think the fact that they were in the military and they hit a retirement age is really irrelevant. It might be something, okay, we need to ask this question, but that doesn’t mean that they’re not going to have initiative and not be motivated, et cetera. Plenty of life left in somebody who is now in their mid-40s and ready for the next thing.

Mike Blake: [00:48:08] All right. Well, we’re running out of time and it’s time to wrap up, but there probably lots more questions that could be asked and our listeners are going to think of. If someone wants to reach out to you to maybe ask a question about maybe they’re a veteran looking for some help or they’re considering hiring a veteran or putting in a veteran employment program, can they contact you if they want some advice and guidance?

Jason Jones: [00:48:28] Yeah, sure. I think there’s two things that I would say. Number one, very easy to find me. The easiest way is just my name and you can Google it with the word Atlanta, because that’s where I live. You Google Jason Jones, Atlanta, my profile on my bio for my company, Cresa.

Mike Blake: [00:48:48] Yeah.

Jason Jones: [00:48:48] Right? All folks with voice communications and network connectivity will come up, top of the page, amazingly. We must have a really good marketing person who’s working on the search engine optimization. But the other thing that I would say is there’s one organization that I do want to mention that as I mentioned earlier, you know, there’s two sides to the coin of a veteran getting hired. One is the veteran being prepared and being able to translate what their skill set is to the private sector. And the other is the private sector company understanding. And one nonprofit that actually is headquartered here in Atlanta, although they do work all over the world is called Hire Heroes.

Jason Jones: [00:49:28] And you can obviously just Google that. Hire Heroes, they have job boards, where companies can post their position and veterans can go to take a look at what’s available. Obviously, these are people who are interested in the benefits of hiring a veteran or having a veteran employment program. They do employer training, which is where they will train your HR staff on veteran hiring and retention. They’ll do virtual career fairs. They’ll have talent sourcing where you get pre-screened e-mails, direct your inbox. So, I think that would be a good organization to look into if you have an interest in veterans.

Mike Blake: [00:50:03] All right. Very good. Little information nugget at the end. Thank you so much. That’s going to wrap it up for today’s program. And I’d like to thank Jason Jones so much for joining us and sharing his expertise with us today. We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your other favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: CRESA, Cresa Atlanta, Employing Veterans, Hire Heroes USA, hiring veterans, Michael Blake, Mike Blake, military veterans, veterans hiring program

Decision Vision Episode 51: Should Married Couples Be in Business Together? – An Interview with Carol and Steve Docalavich, yourLTL

February 13, 2020 by John Ray

yourLTL
Decision Vision
Decision Vision Episode 51: Should Married Couples Be in Business Together? - An Interview with Carol and Steve Docalavich, yourLTL
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Carol and Steve Docalavich, yourLTL

Decision Vision Episode 51:  Should Married Couples Be in Business Together? – An Interview with Carol and Steve Docalavich, yourLTL

On this special Valentine’s Day edition of “Decision Vision,” Carol and Steve Docalavich of yourLTL share their journey as a married couple in business together. It’s a great episode with lots of laughs and wisdom. The host of “Decision Vision” is Mike Blake and the show series is presented by Brady Ware & Company.

Carol and Steve Docalavich, yourLTL

yourLTL
Steve and Carol Docalavich

Carol and Steve Docalavich are Co-Founders of yourLTL.

yourLTL is a completely transparent freight intelligence solution, providing direct relationships with carriers supported by our expertise in rate negotiations and proprietary cloud-based transportation management solution (TMS). They provide the most advanced TMS available, to not only find and compare carrier rates for LTL shipments, but they also allow customer specific pricing for the freight needs of their clients, not just transactional rates. There is no contracts or extra fees. They guarantee Fairness & Accountability in Rates (F.A.I.R.). It’s straight forward and transparent!

Their scalable technology helps simplify the life-cycle of the shipping process allowing multiple departments to access the same shipment from the yourLTL platform regardless of the size of your business. Their simple-to-understand user interface make it easy to find, book, and track shipments in only a few clicks.

yourLTL is a certified woman-owned and controlled business.

For more information on yourLTL, you can find their website here.

yourLTL

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] And welcome to Decision Vision, a podcast giving you, the listener, a clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:39] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton, Columbus, Ohio, Richmond, Indiana, and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast, as well.

Mike Blake: [00:01:02] So, the topic that we’re going to do today, and if all goes well, this is going to be released right before or on Valentine’s Day, is couples that going to business together. And I find this an interesting topic. And as it happens, my wife actually came in earlier today to do another interview on selling over Amazon as a retail channel, where, you know, she’s very good at that and I know nothing. But, you know, early in our married life, every time that we tried to have our business lives intersect with one another, it was usually ending up with one of us doing an internet search for divorce attorney.

Mike Blake: [00:01:02] It did not work particularly well. And we both recognized that and we tried to stay away from that. Over time, it’s gotten a little bit better. She’s like, “Yeah, now, you can ask me about how the business is going if you want.” That’s about it. And you probably won’t have to sleep on the couch. And I’ll kind of be on the same way. You can ask me about the business if you want and I may or may not decide to sleep on the couch. So, I have admiration for people who are able to do that.

Mike Blake: [00:02:15] It doesn’t mean that I think our marriage is bad, we’re 20 years together and she hasn’t thrown me out yet. And every day I go home and the key works as a blessing for me. But I do think that I’ve noticed there are couples that have that capacity to work together. And I know that I’m not the only person that’s curious about that, especially in today’s world where, you know, the nature of jobs is different and people going into business for themselves, it’s really never been easier.

Mike Blake: [00:02:44] I think we’re seeing that, you know, more and more and more. But how do you manage the dynamic of a romantic relationship being intertwined with a business relationship? So, as I said, this is not something that I am, at all, an expert on, except that I know that for my personality type, we’re staying away from that. So, we’ve brought in people who can talk about that with us because they appear to have been doing it successfully. And if not, maybe there’ll be some radio drama instead.

Mike Blake: [00:03:13] So, either way, this is going to be a win for the listener. Joining us are Carol and Steve Docalavich, who are co-founders of yourLTL, LTL or less than truckload software platform that provides a visual dashboard of shipping cost allocations, load manifests, shipment tracking, and discrepancy alerts. yourLTL is cloud-based and is continuously enhanced to improve the customer experience dedicated to simplicity and return investment for your less than truckload shipping. They’re also co-founders of Vestra Logistics, a freight brokerage company.

Mike Blake: [00:03:47] And both firms are located just down the road here in Alpharetta. And they also do some real estate management and investing together. Carol, in particular, is a serial entrepreneur, having launched several businesses in coffee, tea import/export, franchise advisory, property management. And Steve comes from a background of having been an air traffic controller for 23 years. So, thank you for making sure I landed safely all those times.

Steve Docalavich: [00:04:12] You’re welcome, Mike.

Mike Blake: [00:04:13] Carol and Steve, thanks for coming on the program.

Carol Docalavich: [00:04:16] Yeah, thanks, Mike.

Mike Blake: [00:04:17] So, how long have you been married and how long you’ve been in business together?

Steve Docalavich: [00:04:23] Eight years on the 14th. Eight years on the 14th.

Mike Blake: [00:04:27] Of this month?

Steve Docalavich: [00:04:29] Yeah.

Carol Docalavich: [00:04:29] Yeah.

Mike Blake: [00:04:29] Well, congratulations. That’s great.

Carol Docalavich: [00:04:32] Yeah.

Mike Blake: [00:04:32] And so, I mean, which came first?

Carol Docalavich: [00:04:37] Match.

Steve Docalavich: [00:04:38] Yeah. So-

Carol Docalavich: [00:04:39] match.com.

Mike Blake: [00:04:40] No kidding?

Steve Docalavich: [00:04:40] Yeah. That’s because Tinder wasn’t around at the time.

Mike Blake: [00:04:45] Well, you know, timing is everything, right?

Steve Docalavich: [00:04:47] Yes, that’s right.

Mike Blake: [00:04:47] So, you found each other on Match. And at that point, did you start to realize that both of you kind of had an entrepreneurial bat that you needed to be, wanted to be in business for yourselves or-

Steve Docalavich: [00:05:00] No.

Mike Blake: [00:05:00] So, how did that evolve?

Steve Docalavich: [00:05:03] Not at all. She was already in business for herself. Actually, we had met. I was an air traffic controller in California and we didn’t meet, meet, but we met only through one of her businesses. I moved from California to Washington Center, which is in Northern Virginia. And when I moved, the FAA moved me and the movers broke or scratched every piece of furniture I had. And so, I called the moving company and I said, “Hey, what I do about this?” Said, “Don’t worry about it, we’re going to send over a van.” This guy, he’s magical. So, they sent over a van and it was called Furniture Medic. I didn’t know what that was. Well, he came in, an hour later, everything was perfect. I was like, “This is amazing.” I never forgot about it, because that was in 1996, I met her in 2012, and she is the founder of Furniture Medic.

Mike Blake: [00:05:55] Oh, no kidding?

Steve Docalavich: [00:05:56] Yeah.

Carol Docalavich: [00:05:57] Yeah.

Mike Blake: [00:05:57] So, how did you get to meet the owner then? I mean, were you such a pain in the ass-

Steve Docalavich: [00:06:02] No, no, no.

Mike Blake: [00:06:02] … that you basically said, “I want to speak to the owner, this is unacceptable.”

Steve Docalavich: [00:06:05] What I’m saying is I surreptitiously, I figuratively met her through her business.

Mike Blake: [00:06:11] Okay.

Steve Docalavich: [00:06:11] And then, in 2012, we actually were out on a date. So-

Carol Docalavich: [00:06:16] Now, we sold that business to—I’m trying to think which company that was with Landmark—but no, Service Master is who actually bought that business. And so, that was much before his time. So-

Steve Docalavich: [00:06:32] Yes, I was controlling airplanes, I was making sure you’re safe, Mike.

Carol Docalavich: [00:06:35] Yeah.

Mike Blake: [00:06:35] Thank you for that.

Steve Docalavich: [00:06:36] You’re welcome.

Carol Docalavich: [00:06:37] And a few businesses more a divorce. And then, we met on Match. You hate when I tell the story, but we actually met in June-

Mike Blake: [00:06:48] This is the internet.

Carol Docalavich: [00:06:49] … before we officially started dating in November. He sent a couple emails and apparently, I didn’t respond. So, I must not have been interested at the time. But now, we met in November just before Thanksgiving and we married six-and-a-half weeks later.

Steve Docalavich: [00:07:08] So, this is an example of how she has to win, Mike. So, she has to say, preemptively, that, “I ignored his e-mails before I acknowledged his e-mails.” So, that’s something.

Mike Blake: [00:07:20] But it certainly turned out all right. And a pretty quick turnaround, six-and-a-half weeks.

Carol Docalavich: [00:07:26] Yeah, six-and-a-half.

Mike Blake: [00:07:27] So, I guess as an entrepreneur, you’re just used to making important decisions fast.

Carol Docalavich: [00:07:30] That’s right. Absolutely.

Steve Docalavich: [00:07:32] And since I’m an air traffic controller, I just make bad decisions?

Mike Blake: [00:07:35] Well, if I’ve learned anything from pushing 10, you definitely to make decisions quickly, too, there, right? So-

Steve Docalavich: [00:07:41] Absolutely. Absolutely. And drink.

Carol Docalavich: [00:07:43] So, I was in the real estate business at the time just after the crash. And, you know, I’d been flipping homes and doing rental homes, about 30 or 40 a month at the time. And so, we got married and I said, “Look, you know, why don’t you join the company after you retire”, and, you know, that sort of thing. So, we kind of, you know, went down that path. And so, he started working with me when he could. You know, he’d not retired yet. So, he soft-stepped into it.

Steve Docalavich: [00:08:18] It just so happened, I lost my medical right around that time, so I had to retire. Either retired or got an office job, so I just said, “I’ll retire.” And then, I got an office job with her. So-

Mike Blake: [00:08:28] You lost your medical, meaning you lost your medical clearance to do that job?

Steve Docalavich: [00:08:31] Right. Right. Exactly.

Mike Blake: [00:08:31] Okay. I didn’t know that.

Steve Docalavich: [00:08:32] Yeah.

Mike Blake: [00:08:32] Okay.

Steve Docalavich: [00:08:32] That’s why I was only in there for 23 years instead of 30.

Mike Blake: [00:08:36] I figured you’re just burned out.

Steve Docalavich: [00:08:38] Yeah, I was burned at 15.

Mike Blake: [00:08:39] There’s got to be some burnout in that job.

Steve Docalavich: [00:08:40] I was burned out at 15. So-

Mike Blake: [00:08:43] And at that point, I mean, interestingly then, you didn’t have any hesitation about joining the business and basically being around involved with each other all the time, because not every married couple honestly wants or thrives doing that.

Steve Docalavich: [00:08:59] Well, I mean, it was new.

Mike Blake: [00:09:01] Yeah.

Steve Docalavich: [00:09:01] I didn’t know what that would be like. It seemed to me I want to spend all of the time with her, I could, so hey, why not? Let’s work together. And when we were doing this, there was a property management company in Atlanta that it was managing thousands of homes. They were doing it for one of these—I think it’s Blackstone.

Carol Docalavich: [00:09:26] No, they were doing it for—it was Key.

Steve Docalavich: [00:09:27] It was Key.

Carol Docalavich: [00:09:27] But they were at the time, and there’s still a lot of this around, but, you know, investment companies were selling properties to overseas investors. And so, they were managing these overseas investors and they got bought out, you’re right, by Blackstone.

Steve Docalavich: [00:09:43] Right.

Carol Docalavich: [00:09:44] So, all the ones that weren’t owned going to be owned by Blackstone, they said, you know, “Let’s go find other management.” So, we took over a chunk of about 300 houses at one time for this management.

Steve Docalavich: [00:10:00] And we didn’t even have a business at the time for managing that. We had to build one immediately to do it.

Carol Docalavich: [00:10:05] We did it in about two weeks.

Steve Docalavich: [00:10:07] Oh, my gosh. It was incredible. And I quit. I mean, that’s one of the businesses we did. And I said, “Look, I can’t. You and I can’t do this together”, because it was the most negative business I’ve ever seen.

Mike Blake: [00:10:20] Why? What about it is so negative?

Carol Docalavich: [00:10:23] Nobody’s happy. Owners aren’t happy. Renters aren’t happy.

Steve Docalavich: [00:10:26] Yeah. So, all the owners are international, right? So, everything that goes wrong, they’re mad about.

Mike Blake: [00:10:30] Yeah.

Steve Docalavich: [00:10:30] And the houses, you know, that these people were renting were, you know, they’d have problems and, you know, they were mad. So, it was—I think we built it to 500, 600 houses and sold it. I mean, she was already selling to all these international buyers anyway, so she had that relationship. So, we kind of sold that portion of the business and kept the houses.

Carol Docalavich: [00:10:53] Yeah, our houses.

Steve Docalavich: [00:10:54] Yeah, our houses.

Carol Docalavich: [00:10:54] Yeah, our houses.

Steve Docalavich: [00:10:55] Yeah.

Carol Docalavich: [00:10:55] And then, sold those off separately. Actually, the Blackstone was who bought our portfolio. So-

Steve Docalavich: [00:10:59] Thank you, Blackstone.

Carol Docalavich: [00:11:00] … he came back on board after that.

Steve Docalavich: [00:11:02] Yeah.

Carol Docalavich: [00:11:02] So, he retired for just a second.

Steve Docalavich: [00:11:04] Yeah. That was about it.

Mike Blake: [00:11:05] Like one of the Brett Favre retirements.

Steve Docalavich: [00:11:07] Yeah.

Carol Docalavich: [00:11:07] Yeah.

Steve Docalavich: [00:11:07] It was a month. And then, I went to the Eagles.

Mike Blake: [00:11:11] So, Steve, let me start with you then, because you’re transitioning from air traffic control, a government job, I guess, right? I think it’s all government-

Steve Docalavich: [00:11:21] It’s all government.

Mike Blake: [00:11:22] … jobs, right? And now, you’re going to be an entrepreneur in the real estate business.

Steve Docalavich: [00:11:28] Right.

Mike Blake: [00:11:28] Do you know anything about real estate? Were you any good at Monopoly, at least?

Steve Docalavich: [00:11:30] Define know anything. No.

Mike Blake: [00:11:33] Were you any good at Monopoly? Do you notice once they got the blue properties and-

Steve Docalavich: [00:11:36] Yeah, Park Place and Boardwalk.

Mike Blake: [00:11:37] Yeah.

Steve Docalavich: [00:11:37] Absolutely. It was easy. I mean, all you had to do was lean on her and she, you know, I went and got a cup of coffee for her every once in a while, and made some copies. And I came up, I’m an idea guy, Mike.

Mike Blake: [00:11:50] Okay. Yeah.

Steve Docalavich: [00:11:50] So, I get a lot of good ideas. I think today was an idea of mine. It was probably a mistake. But no, it’s easy when you get somebody who knows what they’re doing. So, she’s taught me a lot over the last eight years.

Mike Blake: [00:12:05] Now, how about you? You’ve got an independent streak to you, right?

Carol Docalavich: [00:12:10] Just a little.

Mike Blake: [00:12:11] Which is why you’ve been in business for yourself as long as I can kind of track your career, right?

Carol Docalavich: [00:12:17] Yeah.

Mike Blake: [00:12:17] And now, here comes this interloper-

Carol Docalavich: [00:12:18] Yeah.

Mike Blake: [00:12:18] … that’s going to come in and sort of share the wheel with you. Was that hard or is it scary maybe? Was there any concern about that or-

Carol Docalavich: [00:12:29] Yeah, I guess probably at first. You know, I figured if you can direct hundreds of airplanes at one time, you probably can handle pretty stressful situations with-

Mike Blake: [00:12:37] That’s fair.

Carol Docalavich: [00:12:39] You know? So, I figured the stress he could endure and the rest of it was just, you know, he’s a pretty intelligent guy. He likes to say, “I don’t know”, because then, that just gets you a lot to do and stuff, right? Like, you know, that’s your—

Mike Blake: [00:12:52] That’s my go-to, yeah.

Carol Docalavich: [00:12:52] … pat answer. Right. Exactly.

Mike Blake: [00:12:55] Yeah.

Carol Docalavich: [00:12:55] But no, he really caught on really quickly. And, you know, I used to say, “This is not a government job, you know, we like work really long hours and get paid for just a few of them.” So, unlike government, where, you know, they work 40 hours and step out. No, he was really game. And he does really good at letting me take the lead. He does really good with that.

Steve Docalavich: [00:13:20] Can I talk now?

Carol Docalavich: [00:13:21] Yeah, go.

Steve Docalavich: [00:13:21] Okay. So—

Mike Blake: [00:13:22] Speaking of which.

Steve Docalavich: [00:13:25] It’s called fake it until you make it, Mike, is what, you just look confident and stand in the corner. And then, she basically tells me what to do. But-

Carol Docalavich: [00:13:33] That’s so not true.

Steve Docalavich: [00:13:35] Well, I mean-

Carol Docalavich: [00:13:36] Not now.

Mike Blake: [00:13:38] Even to a certain extent, though, I mean, there was a learning process for you, right?

Steve Docalavich: [00:13:41] Oh, absolutely.

Mike Blake: [00:13:42] And not everybody can walk into that and be vulnerable and say, you know, “I don’t know. I don’t know what I’m doing.” And men have a harder time with that than women, I think.

Steve Docalavich: [00:13:52] I don’t have a problem with that. Actually, I’ve been doing that my whole career as an air traffic controller. But now, we would go out and we go look at houses and we purchase that, I go, you know, “I didn’t know what was good and what wasn’t good to buy.” So, it was an evolution there and it was fun. It wasn’t-

Carol Docalavich: [00:14:11] That business was really fun.

Steve Docalavich: [00:14:13] It was. It’s not technical, was not difficult, it’s simply, there’s a house, buy it, don’t buy it. Put somebody in it, flip it.

Carol Docalavich: [00:14:24] Yeah.

Steve Docalavich: [00:14:24] Yeah, that kind of thing. So, that was fun. I mean, what we’re doing now has been an absolute learning-

Carol Docalavich: [00:14:32] That’s been a learning curve for both of us, yeah.

Steve Docalavich: [00:14:33] Yeah, but it’s been fun.

Carol Docalavich: [00:14:35] Yeah.

Steve Docalavich: [00:14:36] It’s been fun, because it’s like it goes from one thing to another to another.

Carol Docalavich: [00:14:40] We’re never bored.

Steve Docalavich: [00:14:40] We’re never bored. We’re always together. And I talked about this with you last week, I think I said-

Carol Docalavich: [00:14:46] Before we knew about your questions.

Steve Docalavich: [00:14:49] Yeah. And I don’t even think about spending time other than playing golf.

Carol Docalavich: [00:14:55] Yeah.

Steve Docalavich: [00:14:55] I mean, I want her to play golf with me and she won’t, because she doesn’t want to embarrass herself.

Carol Docalavich: [00:14:58] I would not have time to learn.

Steve Docalavich: [00:14:59] Right. Well, exactly. But I mean, if she could go play golf with me, I’d love to take her playing golf. That’s what I think is, some people can do that, some people can’t. But, you know, she could be with me all the time as far as I’m concerned.

Mike Blake: [00:15:12] As an aside, I remember when my wife and I were in our 20s, she said, you know, “You really got to think about taking up golf, it would really help your career.” And I said, “Let’s watch a game of golf and see if you still think that”, right? And, you know, as you know, a game of golf is not like a game of darts, it’s not over in 20 minutes. It’s like, you know, a game of golf is an all-day event. And to be any good at it where it does help your career, because you’re shooting 298, that’s not going to help your career if every other ball is in the pond-

Carol Docalavich: [00:15:44] Sure.

Mike Blake: [00:15:44] … or hurt somebody. So, you know, “If you really want this, I’m out one day every weekend while it’s warm until I get sort of good.” She’s like, “Never mind, your career is just fine.”

Carol Docalavich: [00:15:59] Yeah, he does try to play just about every weekend. And so, we do have time apart then.

Mike Blake: [00:16:04] Yeah.

Carol Docalavich: [00:16:04] And, you know, I mean, we’re like most couples, we separate. You know, like I go read and he watches a foreign film or some, you know, documentary or-

Steve Docalavich: [00:16:12] We don’t sit in the same office anymore.

Carol Docalavich: [00:16:14] No, we don’t sit in the same. We did for a long time, though.

Steve Docalavich: [00:16:16] We did, yeah.

Carol Docalavich: [00:16:16] We sat in the same office.

Steve Docalavich: [00:16:18] And then, she let me have my own.

Carol Docalavich: [00:16:21] I didn’t have to listen to every conversation there.

Mike Blake: [00:16:26] Well, I’m curious, what was the dynamic that warranted you to have the same office? My wife and I share the same office at home, which means I’m normally out at Starbucks when she’s working. But what made you want to do that? And then, what changed that made you decide you didn’t want to do that anymore?

Steve Docalavich: [00:16:41] She’s on the phone constantly.

Mike Blake: [00:16:43] Yeah.

Carol Docalavich: [00:16:43] Yeah.

Steve Docalavich: [00:16:44] And I’m just getting up and leaving and finding another desk-

Mike Blake: [00:16:48] Right.

Steve Docalavich: [00:16:48] … with a computer and work from there. So, we had that.

Carol Docalavich: [00:16:51] That’s fair.

Steve Docalavich: [00:16:51] You know, she is never not on the phone and I’m never on the phone.

Carol Docalavich: [00:16:56] Yeah. Well, the first thing is when we started this business, you know, we just went into a space. We didn’t know what we needed yet. You know, we didn’t know what size. We didn’t know how many employees. We had no idea. And so, we just kind of rented a small space. And, you know, it was like, “Okay, we know we need accounting in one, you can lock that door”, you know, those sorts of things. “So, look, there’s one office left. Okay, we can put two desks in it, we can share it.”

Mike Blake: [00:17:22] Okay.

Carol Docalavich: [00:17:22] And I think was a good learning curve for you, too, to be able to hear a lot of that. And then, there are times that I have to kick him under the table, so there’s certain, you know-.

Steve Docalavich: [00:17:31] She’s done that twice already.

Carol Docalavich: [00:17:32] So, there’s certain conversations that I still have to say, you know, like there’s certain jokes or we’ll say, “No, he can’t go to that meeting.”

Steve Docalavich: [00:17:40] Okay. So-

Carol Docalavich: [00:17:41] Or, for sure-

Steve Docalavich: [00:17:41] … I don’t know.

Carol Docalavich: [00:17:43] No.

Steve Docalavich: [00:17:43] What?

Carol Docalavich: [00:17:43] You’re not going to tell that joke.

Steve Docalavich: [00:17:44] I’m not going to tell the joke, but I’ll give the—so anyway, no matter what, and this is strategic, so I don’t have to go to meetings, is there’s always a dead hooker joke-

Carol Docalavich: [00:17:55] Somewhere.

Steve Docalavich: [00:17:57] … somewhere in the meeting. And she’s like, “You can’t come.” “That’s okay. Great. That’s fine”, you know. But I’m not in sales. I’m not in sales, I’m more operational, I’m not marketing, I’m not into those things, I work with the people in the office more than I do people outside the office.

Mike Blake: [00:18:09] I don’t know how much mileage I can get by threatening to do a dead hooker joke.

Steve Docalavich: [00:18:12] It works.

Mike Blake: [00:18:13] I’m going to try that.

Carol Docalavich: [00:18:14] He actually almost went to jail over that, so there’s-

Mike Blake: [00:18:16] Really?

Carol Docalavich: [00:18:16] … real story there.

Steve Docalavich: [00:18:18] Yeah. Well, I was on the phone with an attorney a couple of months ago.

Carol Docalavich: [00:18:24] It’s true.

Steve Docalavich: [00:18:24] And he was talking about our terms and conditions and he was—

Carol Docalavich: [00:18:28] Really negotiating it.

Steve Docalavich: [00:18:30] Yeah. And he was talking about—I can’t remember what it was. So, I threw the dead hooker at him.

Mike Blake: [00:18:34] This is your attorney.

Steve Docalavich: [00:18:37] Right. I said, “Look, we don’t because-” No, it’s not my attorney. He was another company.

Carol Docalavich: [00:18:41] He was a client’s attorney.

Mike Blake: [00:18:43] The other side’s, okay.

Steve Docalavich: [00:18:43] That was doing our terms of conditions, they want to do business with us.

Mike Blake: [00:18:45] Okay.

Steve Docalavich: [00:18:45] But they had a problem with something in there saying, you know, the liability part. And I was like, “Look, it’s not like all these truckers have dead hookers in the back and they’re running in a busload of nuns. I said, we got that covered. We have insurance for that. You don’t have to worry about that.” And there was silence and our business partner, Chase, was jumping up and down, screaming silently at me, right?

Carol Docalavich: [00:19:07] So true.

Steve Docalavich: [00:19:07] Because he was mad. And then, the guy on the other end of the phone just started laughing.

Carol Docalavich: [00:19:11] It was one of those delayed like, you don’t know exactly what’s coming.

Mike Blake: [00:19:15] Right. Chirp, chirp, chirp.

Steve Docalavich: [00:19:15] I knew it was coming. I knew it was coming.

Carol Docalavich: [00:19:18] Yeah. So, there are-

Steve Docalavich: [00:19:18] I used to do it all the time.

Carol Docalavich: [00:19:20] … certain times he can’t get go to me.

Mike Blake: [00:19:23] So, I’ve observed two things about you guys, because, you know, we’re doing some things together a little bit. And one is that every time I’ve interacted with you as clients, you’re always together.

Carol Docalavich: [00:19:38] Yeah.

Mike Blake: [00:19:38] Which is interesting. Is that by design? Is that a business strategy or it’s because eight years later, you’re still newlyweds and you can’t get enough of each other? What is that?

Carol Docalavich: [00:19:49] I think it’s somewhat both. I mean, we even run errands together.

Steve Docalavich: [00:19:53] Yeah.

Carol Docalavich: [00:19:53] Yeah. And I think that’s why we married. So, to back up just a minute, when we got married, I mean, you know, when we said we were getting married, my family was like, “What the heck? Like you plan-” Everything’s a plan for me, like, you know, and they were like, “No, no. If you love him in a year, you know, we can, you know, hold off.” And, you know, I was like, “No, I know what I don’t want. And he’s none of those things.

Mike Blake: [00:20:18] Okay.

Carol Docalavich: [00:20:18] So I’m going to go for this.” You know, I was in my 40s, had been married 20-plus years the first time. So, you know, I was like, you know, “No, we’re going to do this.” But I think a lot of that has to do with we just enjoy each other’s company. Sometimes, he’ll go to work like this morning and it’s like, we didn’t do it today, but sometimes, he’ll leave and I won’t see him and we’ll end up in the same color, like we’re going to work and I’ll go, “Oh, my God. We both were blue. This is so stupid. How do we do this?” But yeah. I mean-

Mike Blake: [00:20:49] Oh, it means then there is an old name practice, right?

Carol Docalavich: [00:20:50] Yeah, exactly. I mean, we’re in sync sometimes just like that.

Steve Docalavich: [00:20:54] We look like old people-

Carol Docalavich: [00:20:56] Yeah, we do.

Steve Docalavich: [00:20:57] … with those. I remember seeing my grandparents in a picture one time, they’re both wear the same jacket with those barrel buttons.

Carol Docalavich: [00:21:03] No, we don’t do that.

Steve Docalavich: [00:21:04] No, I know, but I’m like, “How did they do that?” But I can see how it happens.

Carol Docalavich: [00:21:07] Yeah, I really can.

Mike Blake: [00:21:09] Now, the other thing I’ve noticed is you guys laugh a lot.

Carol Docalavich: [00:21:13] Yes. So-

Mike Blake: [00:21:13] And that’s not just an act, is it?

Carol Docalavich: [00:21:14] No. And that was probably, I would say, the first night that we had dinner together.

Steve Docalavich: [00:21:21] Whoa, whoa, whoa, where are you going with this?

Carol Docalavich: [00:21:22] Oh, stop it.

Mike Blake: [00:21:24] She said dinner.

Carol Docalavich: [00:21:25] First night we had dinner together-

Steve Docalavich: [00:21:27] Yeah.

Carol Docalavich: [00:21:28] … we laughed the entire—I mean, it was constant the whole two hours that we had dinner together.

Steve Docalavich: [00:21:35] I’m a funny guy.

Carol Docalavich: [00:21:36] That’s true.

Steve Docalavich: [00:21:37] Next question, Mike.

Carol Docalavich: [00:21:37] You won the lottery.

Mike Blake: [00:21:40] No. And I’m not trying to put anybody on the couch here, but that laughter, I think, is indicative of the kind of humor that you need to overcome the obstacle, right?

Carol Docalavich: [00:21:54] Yeah, absolutely.

Mike Blake: [00:21:54] Because not everything has gone exactly the way that you wanted it to in business, correct?

Carol Docalavich: [00:21:59] For sure, this last six years. But yeah. Yeah.

Mike Blake: [00:22:02] So talk about a crisis in business that you guys faced together.

Carol Docalavich: [00:22:09] Oh, God. Which one?

Mike Blake: [00:22:13] Well, you-

Carol Docalavich: [00:22:13] You want to pick a subject?

Steve Docalavich: [00:22:14] No.

Mike Blake: [00:22:15] I mean, the juicier, the better.

Carol Docalavich: [00:22:17] Yeah, I’m sure.

Mike Blake: [00:22:17] If there is a dead hooker involved, if you guys revisit that, go.

Steve Docalavich: [00:22:20] Well, Mike, I know I’ve told that joke to you in one of our meetings. I know for a fact-

Carol Docalavich: [00:22:24] Do not tell it.

Steve Docalavich: [00:22:25] I know, but I just know I told it to him and he’s acting like he’s so surprised, you never heard this before.

Carol Docalavich: [00:22:29] I’m sure you haven’t brought it up at Brady Ware.

Steve Docalavich: [00:22:30] Oh, my God. How many times have we had meetings?

Carol Docalavich: [00:22:34] Too many.

Mike Blake: [00:22:35] A lot.

Steve Docalavich: [00:22:36] We’ve had the same meeting 15 times, don’t tell me about it. I mean, because we come in there with same issue all the time.

Carol Docalavich: [00:22:42] Oh, God, so many crises. So, this has been the toughest business I’ve ever tried to learn to run.

Steve Docalavich: [00:22:49] Which one?

Carol Docalavich: [00:22:51] Being in transportation, period.

Mike Blake: [00:22:52] Okay.

Carol Docalavich: [00:22:53] You know, a lot of people that do this, they are brokers who worked for another broker who leave with a book of business. And pretty much even with my first husband, everything we did, we pretty much pioneered. They were, you know, new ideas or there wasn’t maybe just a couple of different companies doing it, but they were relatively pioneered industries. And so, this one, we were like, this one over here said, “Well, how hard could this be?” Yeah, famous last words.

Steve Docalavich: [00:23:21] I said that.

Carol Docalavich: [00:23:21] Yeah.

Mike Blake: [00:23:21] Right up there with, hold my beer, right?

Steve Docalavich: [00:23:23] Oh, yeah.

Carol Docalavich: [00:23:23] Yeah, exactly.

Steve Docalavich: [00:23:25] Absolutely.

Carol Docalavich: [00:23:25] So, I think, you know, very first load we moved on the truckload side was a $40,000 claim. You are not prepared for that. I mean, you have no idea. We had no idea what we were doing. And my mentor said, “Good god, girl, can’t you started A, B and C, did you have to jump all the way to S?” You know, I mean, we literally, immediately, our first official day of business. I mean, we kind of been doing it for like a month trying to build up to getting business. So, I mean, that was the first one. And that was a real crisis, because you don’t know if you’re on the hook for that. And we didn’t know, are we on the hook for the 40 grand or, you know-

Steve Docalavich: [00:24:01] I knew.

Carol Docalavich: [00:24:02] God. But you did. You stepped us through all that. You figured out-

Steve Docalavich: [00:24:09] It wasn’t very difficult. I mean, the-

Carol Docalavich: [00:24:10] At first.

Steve Docalavich: [00:24:10] … carriers, you know, they’re the primary behind that. And it turned out fine. But yeah, we’ve had plenty of times in these two businesses that something hits the fan or whatever and you just got to deal with it. It’s a lot easier. I mean, I lean on her a lot. And then, you know, I’m the strong, silent type, because I don’t have much smart to say. And, you know, she appreciates that. You know, “Wow, you just-”

Mike Blake: [00:24:39] That didn’t stop me.

Steve Docalavich: [00:24:41] No. Yeah, yeah, yeah. So, I mean, she’s like, “Wow, you’re just such a rock and I can count on you to be-“, you know. I’m like, “I’m not saying anything because I don’t know what to say.” But she’s great at handling that kind of stuff and she points in the right direction and, you know, we go that way. There are no bones about who is the brains in the family. And I don’t want to say short bus, but I’m on a bus going somewhere. But no, you know, going back to what we’re talking about here, I enjoy being around my wife. We’re best friends and I don’t think that that’s going to change anytime soon.

Carol Docalavich: [00:25:19] Yeah. And I mean, you know, anytime you start a business, I mean, you know, like at any time in whether you buy one, whether you started from scratch or, you know, whatever you do, you know, there’s small crises almost every day, right? So, we deal with a lot of that. But, you know, he plays that part really well. But, you know, he is the person I go to and say, “All right. Hear me out. What do you think?” You know, he calls them at 3:00 o’clock in the morning, like I’ll say, “Are you up?”

Steve Docalavich: [00:25:51] That’s exactly what it is.

Carol Docalavich: [00:25:51] I’ll say-

Steve Docalavich: [00:25:51] That’s exactly what it is.

Carol Docalavich: [00:25:54] “Go make the coffee.”

Mike Blake: [00:25:55] “Are you up?”

Carol Docalavich: [00:25:56] “Are you up? Go make the coffee.” And it’s usually somewhere between 2 and 3 o’clock in the morning. We’ve had lots of those. You know, as you talk yourself through this and what you’re going to do and directions and he’s an excellent sounding board. And I usually come away from those talks with feeling really confident about the decision we’re going make. So-

Mike Blake: [00:26:18] And I got to imagine that air traffic control, everything else just must sort of pale in comparison, right? It’s about working processes.

Steve Docalavich: [00:26:27] Yeah. But, you know, it’s something that—the thing about that is it’s not the same every day, but, you know, it’s proceduralized to a point and then, there’s weather and then, there’s bad rides and then, there’s 9/11, right? There’s something. But otherwise, 99% of the time, it’s pretty proceduralized. You got guys coming in from here, they’re going there. There’s a profile that you need to create in your mind to keep them away from these guys that are going here, landing there, right? So, basically, everybody who’s entering your airspace is separated before they get there, because you have a plan. Not so much in the business world. I mean, it changes every day. You can proceduralize anything you want, but you can’t stop the wind from blowing, right?

Mike Blake: [00:27:11] Yeah.

Steve Docalavich: [00:27:11] It just depends.

Carol Docalavich: [00:27:13] Especially transportation.

Steve Docalavich: [00:27:14] Yeah, especially transportation. It’s a-

Carol Docalavich: [00:27:15] I mean, it’s a combustible engine and a human being, you know. And I mean, we have little to-

Steve Docalavich: [00:27:22] Nothing could go wrong.

Carol Docalavich: [00:27:23] Yeah, nothing can go wrong. But, you know, I don’t know that there’s any one crisis that like jumps out. There’s just been, you know, you go left, you go right, you go left, you go right. You know, there isn’t really a day that I go home and go, “Oh, well, that was so smooth today.” And-

Steve Docalavich: [00:27:42] It’s all about the people you employ.

Carol Docalavich: [00:27:44] Yeah.

Steve Docalavich: [00:27:44] It really is in this business.

Carol Docalavich: [00:27:46] Yeah.

Steve Docalavich: [00:27:46] You know, people you don’t have to keep watching, right?

Mike Blake: [00:27:49] Yeah.

Steve Docalavich: [00:27:49] You can trust them, do your job.

Carol Docalavich: [00:27:51] And we do a pretty good job, I think, of bringing on solid people that support us.

Steve Docalavich: [00:27:56] Yeah.

Mike Blake: [00:27:58] So, let me switch gears here, has there ever been a point at which one of you has offered the other constructive criticism in the business area?

Carol Docalavich: [00:28:09] Oh, when we got here today.

Steve Docalavich: [00:28:11] Mike, that, no.

Mike Blake: [00:28:13] No?

Steve Docalavich: [00:28:13] The answer is no, I don’t, yes, she does.

Mike Blake: [00:28:16] Okay.

Steve Docalavich: [00:28:16] Yes, it’s not constructive, it’s destructive. No, I’m just kidding.

Mike Blake: [00:28:22] No. But that’s going to come up, especially because I imagine it’s gone initially from you, Carol, to Steve, because you were new to business generally and new to her businesses, where she’s a veteran, right? And there’s the kick under the table. But besides the kicking under the table, I imagine there’s a debriefing like, “You understand why I kicked you under the table”, right?

Carol Docalavich: [00:28:41] Oh, absolutely.

Steve Docalavich: [00:28:42] Well, I know before she does it that she’s going to do it. I’d block her. Now, she’ll call me into our office and shut the door. I mean, she’ll call me into her office and shut the door.

Carol Docalavich: [00:28:51] Oh, boy.

Steve Docalavich: [00:28:52] So, I’m just saying, what other couples do that? “Honey, I want you to come in my office. Shut the door.” What would your wife say to you if you did that to her? She goes, “Uh, no.”

Mike Blake: [00:29:03] Even on the end, you know, I should not say that.

Steve Docalavich: [00:29:06] Exactly. Exactly. I know you have a bleep button there. I was almost going to make you use it. But I do that. I understand that I don’t understand. You know, there are some things that I’m pretty good at and there’s some things that she’s really good at. And sometimes, she needs to talk to me about things that she’s good at.

Mike Blake: [00:29:27] And where do you think you complement each other most? What do you guys think the other one brings to the table that maybe you don’t bring to the table as well on your own?

Steve Docalavich: [00:29:39] She brings hard work, integrity, smarts, know-how, experience, and good cooking.

Carol Docalavich: [00:29:49] Not necessarily in that order.

Steve Docalavich: [00:29:50] Not necessarily in that order. Right. Not to mention the other stuff, right?

Carol Docalavich: [00:29:55] I think where he really complements me is first of all, I keep it light all the time. 99% of the time, he’s always in a good mood. I mean, I would say, you know, he’s rarely not laughing. He’s rarely not making a joke.

Steve Docalavich: [00:30:11] A joke, yeah.

Carol Docalavich: [00:30:11] And, you know, he’ll keep it where—you know, a lot of times I’ll spiral, you know. Entrepreneurs, you know.

Mike Blake: [00:30:18] It’s a very lonely place.

Carol Docalavich: [00:30:20] Yes, it is. We’re almost that, you know, that whole like cyclical, up and down.

Mike Blake: [00:30:25] Manic depressive, you know?

Carol Docalavich: [00:30:26] Yeah, I was trying not to say that word, but yeah, we are. And he’ll bring me out of those lows. That’s one of the things he where he really complements me. And he should’ve been a lawyer. He’s really excellent with understanding legal documents and-

Steve Docalavich: [00:30:42] I watch a lot of TV.

Carol Docalavich: [00:30:45] Play one on TV?

Steve Docalavich: [00:30:46] Yeah. And I watch a lot of TV.

Mike Blake: [00:30:46] Yeah. But I don’t remember William Shatner doing a lot of contract work on Boston Legal, so I’m not sure that you’ll love from there.

Steve Docalavich: [00:30:51] I’ve loved him on Boston Legal.

Mike Blake: [00:30:52] I do, too.

Steve Docalavich: [00:30:53] It’s awesome.

Mike Blake: [00:30:54] Full disclosure, I’m in the tank for William Shatner. I tell you, and I like Star Trek 5, but the reason I’m in the tank for William Shatner, he doesn’t run away from who he is, right?

Carol Docalavich: [00:31:05] Yeah.

Mike Blake: [00:31:05] I don’t think he ever expected, certainly, not the last 40 years, never expected to earn an Oscar or an Emmy or whatever it is they give, right? But all he does is just consistently gets work, right?

Steve Docalavich: [00:31:17] He is hilarious. You know, he went from being a tough guy, right? Earlier on because he has like the John, everyone was a tough guy.

Mike Blake: [00:31:23] Yeah.

Steve Docalavich: [00:31:23] And now, he’s just kind of an old soft guy with. you know, opinions.

Mike Blake: [00:31:28] Yeah.

Steve Docalavich: [00:31:28] And that they’re funny. I love it.

Carol Docalavich: [00:31:31] So, there’s really not a contractor he handles all the legal side, most of the attorneys. You know, not you guys. I don’t let him do the finance side.

Steve Docalavich: [00:31:42] No. Wait a minute. Before you screw this whole thing up, we have attorneys, okay? We use a lot.

Carol Docalavich: [00:31:46] We do.

Steve Docalavich: [00:31:46] We use attorneys. She just brings stuff to me for my opinion and then, I work with the attorneys. But-

Carol Docalavich: [00:31:51] I said handle that.

Steve Docalavich: [00:31:51] Yeah. But I mean, there are things that I enjoy about that part of the work that it makes sense to me. It’s fun.

Carol Docalavich: [00:31:58] And that’s a big relief for me.

Mike Blake: [00:32:00] So, let’s talk about that, because sounds like you do divide and conquer a little bit.

Carol Docalavich: [00:32:03] Yeah, we do.

Mike Blake: [00:32:04] What are some areas where you divide and conquer? Saying, you know, Carol, you’re going to take A, B and C on, you’re going to take Q, R, and S on.

Steve Docalavich: [00:32:12] She made me fire people.

Mike Blake: [00:32:14] You’re the hatchet man.

Steve Docalavich: [00:32:16] So, you know, I was an air traffic controller for so long. And I was in management. I was a supervisor and I was like, “God, I just wish that we could fire somebody.” Yeah, I think it’s the worst attitude. But, you know, when I was a controller, I had the worst attitude in the world. So, if I was my supervisor, I would want to fire me. So, I made this remark to her and she goes, “Fine. Well, you’re going to fire someone.” And I fired somebody. I’ve never felt so bad in my life.

Mike Blake: [00:32:38] Okay.

Steve Docalavich: [00:32:38] And now, if anybody needs to be fired, I don’t fire them. We give that to somebody else.

Mike Blake: [00:32:43] Really?

Steve Docalavich: [00:32:44] Yeah, I got what I asked for and it’s no fun.

Carol Docalavich: [00:32:46] No, it’s no fun.

Steve Docalavich: [00:32:47] It’s no fun.

Carol Docalavich: [00:32:49] No. Well, it’s not like that happens a lot, but-

Steve Docalavich: [00:32:52] No, no, no. I’m just saying, you made me fire people-

Carol Docalavich: [00:32:54] Well, you said you wanted to.

Steve Docalavich: [00:32:54] … just to show me what it felt like to fire people.

Carol Docalavich: [00:32:57] Yeah, like it’s-

Steve Docalavich: [00:32:57] It is not any fun.

Carol Docalavich: [00:32:58] No, you’re changing people’s lives.

Steve Docalavich: [00:32:59] Yeah, you are. Yeah.

Carol Docalavich: [00:33:00] So, I mean, you pretty much run anything that has to do with the truckload side.

Steve Docalavich: [00:33:06] Yeah.

Carol Docalavich: [00:33:08] So, he takes over especially all the operational side of that, not the sales side.

Steve Docalavich: [00:33:13] I’m the visionary, you’re LTL. I started all that.

Carol Docalavich: [00:33:15] Actually was your idea.

Steve Docalavich: [00:33:16] That’s right. It’s all my idea.

Carol Docalavich: [00:33:18] It goes back to you saying you don’t-

Steve Docalavich: [00:33:18] I just don’t know how to implement it. Like I said, I’m an idea guy.

Mike Blake: [00:33:21] Ok

Steve Docalavich: [00:33:21] ay. We’re going to the moon next week, building a rocket.

Carol Docalavich: [00:33:27] You know, his transparency, all, you know, the stuff we talked to you about. You know, the whole transparency truly being-.

Steve Docalavich: [00:33:32] If there are any shippers out there, we are the only transparent-

Carol Docalavich: [00:33:34] Broker.

Steve Docalavich: [00:33:36] … 3PL-

Carol Docalavich: [00:33:37] Yeah, 3PL.

Steve Docalavich: [00:33:37] … in the nation. So, there you go.

Carol Docalavich: [00:33:39] But yeah. And I think probably, I run the business, I do all the finance side, salespeople, you know, that sort of thing. And I think we know our roles. You know, we come in, it’s not like every day like he comes to me and says, “What do I do today?” He gets to work three hours before I do. So, yeah, I think now, it’s more or less, we just kind of know what we’re going to do.

Mike Blake: [00:34:07] Yeah.

Carol Docalavich: [00:34:07] I think at first, he really looked for direction, “What do you need me to do? What he needs me to do? What do you want me to take care of?” He doesn’t do that now. I mean, he acts like he, you know, comes to me for direction, he does not. He comes to me after he’s done it and I got to clean it up.

Mike Blake: [00:34:21] After eight years, you know what it’s going to be, right?

Carol Docalavich: [00:34:23] Yeah.

Mike Blake: [00:34:24] It’s unlikely you’re going to walk in and say, “You know what, I need you to kill somebody today. I need you to kill a man”, right? You’re not sort of expecting that kind of pivot, right?

Carol Docalavich: [00:34:34] No.

Mike Blake: [00:34:34] So, did anything surprise you about working together as co-founders, co-entrepreneurs, either on the positive or negative side?

Steve Docalavich: [00:34:43] She has less respect for air traffic controllers now, I think, is-

Carol Docalavich: [00:34:45] I would say that’s probably-

Mike Blake: [00:34:45] Right. She won’t be flying anymore?

Steve Docalavich: [00:34:48] We take the bus everywhere and rightly so.

Carol Docalavich: [00:34:51] Yeah. So, after I met him and I met a bunch of his friends, which I love, if you knew, you guys are listening, you know I love you.

Steve Docalavich: [00:34:57] They’re not listening to this one though.

Carol Docalavich: [00:34:59] But we left and I was like, “Holy crap, I don’t want to get on an airplane.”

Steve Docalavich: [00:35:07] I was down in Atlanta Center in Hampton and I would let her come to—and that’s the largest aircraft trove solely in the world, busiest, biggest, and all that stuff. I wouldn’t bring her there until after we were married. And she said, “Why?” And I said, “Because they’re all a bunch of jerks and they’re all going to make up stories and tell you, you know, I dated dudes and stuff and, you know, it’s just going to be a terrible experience and I want to be married to you before that happens.”

Mike Blake: [00:35:36] They’re going to talk to you about the time that you landed two 747s naked, basically.

Carol Docalavich: [00:35:40] Yeah, exactly.

Steve Docalavich: [00:35:40] Well, that happened.

Mike Blake: [00:35:42] Okay.

Steve Docalavich: [00:35:42] That’s true. Yeah.

Mike Blake: [00:35:42] How truth is stranger than fiction sometimes.

Steve Docalavich: [00:35:45] Yeah.

Carol Docalavich: [00:35:45] Yeah, true.

Steve Docalavich: [00:35:46] Yeah.

Carol Docalavich: [00:35:47] But yeah. So, I mean, I don’t know, really. You’re better at the storytelling than I am.

Steve Docalavich: [00:35:53] I don’t remember what you’re talking about, what was it?

Mike Blake: [00:35:55] No, it doesn’t matter.

Steve Docalavich: [00:35:55] What was the direction, yeah.

Mike Blake: [00:35:56] Doesn’t matter.

Steve Docalavich: [00:35:57] Yeah.

Carol Docalavich: [00:35:57] You always go off on a story about you.

Steve Docalavich: [00:35:58] Well, I almost went to a dead hooker joke, but-

Mike Blake: [00:36:04] So, everybody, you’re listening to the Dead Hooker podcast and we’re here with Carol and Steve.

Steve Docalavich: [00:36:09] That’s right. If you like, subscribe and thumbs up.

Mike Blake: [00:36:11] Yeah, at deadhooker.com.

Steve Docalavich: [00:36:13] That’s right. I got that, by the way.

Mike Blake: [00:36:15] Do you really?

Carol Docalavich: [00:36:15] Don’t.

Steve Docalavich: [00:36:15] No, it’s deadhooker.co, because somebody else has it.

Mike Blake: [00:36:17] So, you know, somebody is listening and they’re now typing, “I got to see if that domain is available.” I can only get deadhooker.biz.

Steve Docalavich: [00:36:23] That’s right.

Mike Blake: [00:36:24] Oh, man. That’s the lamest one.

Steve Docalavich: [00:36:27] Yeah.

Mike Blake: [00:36:27] Are there any mistakes you made early on that you need to learn from?

Carol Docalavich: [00:36:33] I mean, my list would be really long. You mean as a married couple or just-

Mike Blake: [00:36:36] Yeah, as a married couple in business. I mean, we don’t need to get into the personal stuff, but-

Carol Docalavich: [00:36:39] No, I meant like business-

Steve Docalavich: [00:36:39] Opening up the property management company to bring on those international buyers because we’re just selling to them. You know, that was probably—only because of the way that it happened. It was not a great transition. You know, we got 300 and something houses and we didn’t know who was in them. We didn’t know if they had agreements. We didn’t know where they were. I mean, the-

Carol Docalavich: [00:37:02] We didn’t know if they had mold.

Steve Docalavich: [00:37:03] … turnover, and a lot of them didn’t, some of the houses weren’t even there, was not orderly. It was painful, to say the least.

Carol Docalavich: [00:37:15] Very painful.

Steve Docalavich: [00:37:15] It took us six months to get our feet up under us. I mean, they just said, “Here you go.” And none of it was correct. There’d be different people in houses. We had squatters. I mean, it was horrible. That was one big thing. So, we should have just kept selling them stuff instead of trying to manage their stuff.

Carol Docalavich: [00:37:33] Yeah. I don’t know. As far as where it relates just to a married couple working together, I mean, the first year was tough.

Mike Blake: [00:37:40] Why?

Steve Docalavich: [00:37:41] Because my wife was alive, my ex-wife, I’m sorry. My ex-wife was alive and she had a telephone.

Carol Docalavich: [00:37:47] I’m talking about-

Steve Docalavich: [00:37:48] And she would call-

Carol Docalavich: [00:37:48] I’m not talking about that.

Steve Docalavich: [00:37:49] Okay. Never mind. Disregard that last.

Carol Docalavich: [00:37:52] I was talking about as a married couple working together, not personal stuff.

Steve Docalavich: [00:37:56] Okay. Sorry.

Carol Docalavich: [00:37:57] That’s not what he wants to know about.

Mike Blake: [00:37:57] Yeah, we’re not putting you on the couch.

Steve Docalavich: [00:37:58] Nobody’s listening to this. Go ahead.

Carol Docalavich: [00:38:01] Well, you know, he’s a big personality, as you might have noticed.

Steve Docalavich: [00:38:05] No, I’m not.

Carol Docalavich: [00:38:05] And I have a pretty big personality.

Mike Blake: [00:38:08] Yeah.

Carol Docalavich: [00:38:08] And he did not take direction very well the first year.

Steve Docalavich: [00:38:15] So, you’re saying I’ve learned?

Mike Blake: [00:38:16] So, at some point, did you ever say to him, “Is it that you can’t learn or that you won’t learn?”

Steve Docalavich: [00:38:23] That was that was outside just a few minutes ago, yeah.

Carol Docalavich: [00:38:26] Yeah, there was several of those conversations. It was like, “Look, you know, if you want to do this, you really got to take direction. And I know you don’t-” You know, I mean, his mother told me, “This one doesn’t mind. He doesn’t do well.” I said, “It’s not about minding.” I need him to just understand the process. And he would just, you know, go off on his own and make a decision and-

Mike Blake: [00:38:48] Right.

Carol Docalavich: [00:38:48] Remember the one renter?

Steve Docalavich: [00:38:50] I got a story after this. That’s where you beat me up. Go ahead. Go ahead. No. Have at it.

Carol Docalavich: [00:38:55] So, that was really it. He just really couldn’t take direction very well.

Mike Blake: [00:38:59] Okay.

Steve Docalavich: [00:38:59] Yeah. Yeah.

Carol Docalavich: [00:38:59] That took a while.

Mike Blake: [00:38:59] Okay.

Steve Docalavich: [00:39:00] Okay.

Carol Docalavich: [00:39:00] All right. Go ahead. What’s your story?

Steve Docalavich: [00:39:01] I don’t have one. I was just kidding.

Carol Docalavich: [00:39:02] Yeah, exactly.

Steve Docalavich: [00:39:02] It was a threat. It was a baseless threat.

Mike Blake: [00:39:05] Okay.

Carol Docalavich: [00:39:05] So, there is a quick renter story. So, when we first started, he was like, “Oh, I’m going to handle the renters, I think you’re a little hard, you know, a little harsh on them.” And I said, “Okay.” So, he, you know, calls her and she gives him the story, right? Like I-

Steve Docalavich: [00:39:20] Okay. First, that was a terrible setup for the story. So, the story is-.

Carol Docalavich: [00:39:24] See, that’s what he does, takes it.

Steve Docalavich: [00:39:25] Yeah. Yeah. So, the story is that, you know, we had not that many houses, but we had some renters that were a little bit late with their rent and we took over. So, I said, “Why do we have a management company? We’ll do it ourselves. We’ll manage.” So-

Carol Docalavich: [00:39:35] Yeah, “How hard can this be?”

Steve Docalavich: [00:39:36] Yeah. So, we were managing all her houses and this one lady, “Oh, well, my dog just died and everything, you know, everybody died.” And I said, “Honey, we can’t kick her out. Everything just died. I mean, her plants died, her dog. We can’t do that.” So, come to find out her dog was fine, her plants were fine, she just didn’t want to pay. And so, it just took a little longer to evict her than them, but I was just a soft touch.

Carol Docalavich: [00:40:01] Oh, God.

Steve Docalavich: [00:40:01] Because I didn’t think anybody ever lied.

Carol Docalavich: [00:40:03] Yeah.

Steve Docalavich: [00:40:04] Right?

Carol Docalavich: [00:40:04] Yeah. I’m not quite—and so-

Mike Blake: [00:40:06] Not in real estate.

Carol Docalavich: [00:40:08] No.

Steve Docalavich: [00:40:08] No. No, not renters.

Carol Docalavich: [00:40:10] But what was really funny is we were in the car, on the phone, going down to look at houses.

Steve Docalavich: [00:40:14] Yeah. I remember that, yeah.

Carol Docalavich: [00:40:15] Yeah. And I said-

Steve Docalavich: [00:40:16] I was almost crying at her story, I swear.

Carol Docalavich: [00:40:20] He was literally-

Steve Docalavich: [00:40:20] I said, “Honey, we can’t kick her out. All these things just died.”

Carol Docalavich: [00:40:24] And I said, “Honey, I want to show you something.” I said, “This is the second month her dad has died.” And he said, “Oh, my God.”

Steve Docalavich: [00:40:31] You need the bleep button again.

Carol Docalavich: [00:40:33] Like literally. He goes, “I just fell for that.” And I’m like, “Yeah, but-”

Steve Docalavich: [00:40:37] I’m such a sucker.

Carol Docalavich: [00:40:39] He was a sucker.

Steve Docalavich: [00:40:39] Yeah.

Carol Docalavich: [00:40:39] So, that was some of the stuff that was tough.

Mike Blake: [00:40:41] He’s a softy.

Carol Docalavich: [00:40:42] Yeah, he is.

Steve Docalavich: [00:40:42] Yeah, I am a big softy.

Carol Docalavich: [00:40:45] Yeah.

Steve Docalavich: [00:40:45] But we did evict the hell out of her.

Mike Blake: [00:40:48] Well, at least, there was a happy ending to the whole story.

Steve Docalavich: [00:40:50] Yes, there was a happy ending in this. Right. We kicked her out and her children.

Mike Blake: [00:40:53] Good.

Steve Docalavich: [00:40:54] And I think we killed her dog, I’m not sure. I’m just-

Carol Docalavich: [00:40:56] No, we didn’t. No.

Mike Blake: [00:40:56] One way or the other, something was dying.

Steve Docalavich: [00:40:59] No, I love dogs.

Carol Docalavich: [00:41:00] Yeah.

Steve Docalavich: [00:41:00] But her kids, they were out.

Carol Docalavich: [00:41:03] Yeah.

Steve Docalavich: [00:41:03] I love dogs.

Carol Docalavich: [00:41:03] But he’s good at taking direction now.

Steve Docalavich: [00:41:05] Yes, ma’am.

Mike Blake: [00:41:08] Guys, this has been a great interview. We’re running out of time. We needed to get you onto your weekend, but-

Steve Docalavich: [00:41:13] Mike, if you have to leave, we’ll continue. I don’t know, you know-

Mike Blake: [00:41:16] Oh, well, you know what-

Steve Docalavich: [00:41:17] Yeah.

Mike Blake: [00:41:17] … you ask me questions. Now, we do need to wrap it up and let you guys get back to your businesses and your lives and your weekend, but I can’t thank you enough for agreeing to come on. If somebody is kind of thinking about this, that they’re thinking of going into business as a married couple, I mean, it sounds like you guys are a great example of what to do, can they contact you guys for advice?

Carol Docalavich: [00:41:42] Yeah, absolutely.

Steve Docalavich: [00:41:42] They can call Carol. Her number is—it’s carol@-

Carol Docalavich: [00:41:49] Which one?

Steve Docalavich: [00:41:50] I don’t know. Which one?

Carol Docalavich: [00:41:50] Yeah, seriously, they can, I mean, use my carol@yourltl.com or the office number is 619—what is it? I always give my cell phone, because I’m always on the phone. 619-.

Steve Docalavich: [00:42:05] 678.

Carol Docalavich: [00:42:05] … 678-

Steve Docalavich: [00:42:07] Follow this, 678-619-4316 and then, follow the prompts to Carol.

Carol Docalavich: [00:42:13] There you go.

Mike Blake: [00:42:14] There you go.

Steve Docalavich: [00:42:14] Steve is not on there.

Mike Blake: [00:42:16] And you may have to put on a little prompt in your IVR for marriage counselling.

Steve Docalavich: [00:42:20] Yes.

Carol Docalavich: [00:42:20] Yeah, exactly.

Mike Blake: [00:42:20] Press 7.

Carol Docalavich: [00:42:21] Yeah, exactly.

Steve Docalavich: [00:42:23] Yeah.

Mike Blake: [00:42:23] That’s going to wrap it up for today’s program. I’d like to thank Carol and Steve so much for joining us and sharing their expertise with us. We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: married couples in business, Michael Blake, Mike Blake, Steve Docalavich, transporation management solution

Decision Vision Episode 50: Should I Sell on Amazon? – An Interview with Cordelia Blake

February 6, 2020 by John Ray

should i sell on Amazon
Decision Vision
Decision Vision Episode 50: Should I Sell on Amazon? - An Interview with Cordelia Blake
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should i sell on amazon
Cordelia Blake and Mike Blake

Decision Vision Episode 49:  Should I Sell on Amazon? – An Interview with Cordelia Blake

What are the pros and cons of selling your products on Amazon? How do you get started? What are the skills you need to succeed as an Amazon seller? Veteran e-commerce professional Cordelia Blake answers these questions and much more in this edition of “Decision Vision,” hosted by Mike Blake and presented by Brady Ware & Company.

Cordelia Blake, CordeliaBlake.com

should i sell on Amazon
Cordelia Blake

Cordelia Blake has been a successful business owner in the fields of technology and e-commerce for over 20 years. Her diverse skill set spans systems administration, web development, training, training development, customer service, and e-commerce.

After running her own e-commerce company for 5 years which included launching a clothing line, gourmet gift baskets and branded merchandise, she joined the HuntGirl team in 2018. She is also a public speaker, consultant and trainer in the field of e-commerce and runs an organization of Amazon sellers, Scanner Society.

A Philadelphia native who happily transplanted with her family to Atlanta, Cordelia is a graduate of Franklin and Marshall College. She resides with her husband, 2 sons, black lab, and 2 cats in Chamblee, GA.

To learn more, go to Cordelia’s website or her YouTube channel. You can also connect with her on LinkedIn.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

should I sell on Amazon“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] And welcome to Decision Vision, a podcast giving you, the listener, a clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from a business owners or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:39] My name is Mike Blake and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton, Columbus, Ohio, Richmond, Indiana, and Alpharetta, Georgia, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast, as well.

Mike Blake: [00:01:01] So, today’s topic is about using Amazon as a sales channel and, should you adopt Amazon or expand the use of Amazon as a sales channel? And anybody who’s listening to this is obviously familiar with the internet. And you’ve heard of this little company called Amazon that started out about 25 years ago selling books online and now, have come to dominate almost anything that we can think of, whether it’s television media or selling laptops and TVs and music and now, smart devices in our home, but, you know, what you may not realize is that Amazon’s selling its own stuff on its own account is actually less than 50% of the business.

Mike Blake: [00:01:52] What are called third-party sellers account for over 50% of Amazon’s annual revenue. It has been that way for some period of time now. So, what that’s done is that that has, to a large extent, democratized the retail sector. You know, you see, back in the old days, if you want to sell stuff online, you did on eBay or you had to put up your own website and build your entire unique e-commerce platform. And that’s no longer the case.

Mike Blake: [00:02:22] You know, there are very few places in the world, certainly, no place in United States you cannot reach by Amazon at this point. Now, is it necessarily for everybody? No. We’re going to learn more about that. But, you know, if you’re thinking about, you know, how do you get Amazon to pick your stuff up, it’s not necessarily that hard to get Amazon to pick your product up, but it’s hard to kind of keep it there because they do have a fairly tightly regulated ship.

Mike Blake: [00:02:49] And there are some pros and cons. If you are going to put products on Amazon, you are going to give some things up in order to do it. And so, I am not qualified, as is the case for most of our topics. I’m not qualified to talk about that topic other than what I just said. And so, I have brought in a very special guest expert for our show today. And her name is Cordelia Blake. And yes, that Cordelia Blake, the fabulous and marvelous Cordelia Blake.

Mike Blake: [00:03:21] And in spite of the fact that she is indeed my wife, she is very successful and has been a successful business owner in the fields of technology and e-commerce for over 20 years. Her diverse skill set spans systems administration, web development, training development, customer service, and e-commerce. After running her own e-commerce company for five years, which included launching her clothing line, gourmet gift baskets, and branded merchandise, she joined HuntGirl in 2018, where she is a partner.

Mike Blake: [00:03:50] She is also a public speaker, consultant, and trainer in the field of e-commerce and also runs an organization of Amazon sellers called Scanner Society. You can also see at least some of her Amazon training and informational videos on YouTube. A Philadelphia native who happily transplanted with her family to Atlanta, Cordelia is a graduate of Franklin & Marshall College. We actually met in the registration line in freshman year. She resides with her husband, me. I think that’s me anyway, two sons, a black lab, and we want a dog, by the way, anyway, and two cats in Chamblee, Georgia. Cordelia, dear, welcome to the program.

Cordelia Blake: [00:04:27] Thank you so much for having me on, honey.

Mike Blake: [00:04:30] So, this Amazon thing, it’s so big, it’s kind of hard to get your arms around, isn’t it?

Cordelia Blake: [00:04:39] It is, and frequently the last people you should ask about it are anybody that works at Amazon. So, that makes it like doubly difficult to find out what to do.

Mike Blake: [00:04:49] So, I was right in not finding somebody who’s an Amazon driver or a warehouse worker to come on and do the podcast, they’re not going to know the knots and bolts.

Cordelia Blake: [00:04:56] Or even an executive.

Mike Blake: [00:04:57] Yeah.

Cordelia Blake: [00:04:57] Even an Amazon executive. I’ve spoken with Amazon executives there. The way they run their ship is very vertical. So, if you’re in one division of Amazon, you know that division and nothing else. I’ve met executives who have literally not heard of other things Amazon’s doing. They just don’t stay up to date. So, they’re not really your business partner. They’re just a service provider that you need to manage.

Mike Blake: [00:05:23] So, maybe this is obvious, but I don’t want to assume, if a company is not already selling their products on Amazon, why should they consider doing that?

Cordelia Blake: [00:05:34] So, a company, I kind of want to unpack that a little bit. So, companies who sell products is a little bit vague. So, you have companies that produce their own products. Maybe it’s, you know, their patented product or their dream product or their passion product. Commonly, you’ll have a company that is a distributor for other companies. That’s a model that’s been around for hundreds of years and still very much in play. So, they sell, you know, like a Foot Locker doesn’t really sell Foot Locker shoes, they sell Nike, they sell Adidas. They’re essentially a re-seller for other brands, but they have products to sell. So, there’s different kinds of product companies and different solutions that work for the size of the company and what kind of products they sell.

Mike Blake: [00:06:25] And so, you talked about something I think is a very important distinction, and in particular, I think your comment’s going to be interesting, because you’ve drifted back and forth between those worlds. There are companies that indeed sell their own products on Amazon as a garden variety retail channel.

Cordelia Blake: [00:06:43] Correct.

Mike Blake: [00:06:43] Right? And then, there are the re-sellers, right? The third-party sellers-

Cordelia Blake: [00:06:47] Right.

Mike Blake: [00:06:47] … and something called retail arbitrage we’d maybe get into later in the show.

Cordelia Blake: [00:06:52] Well-

Mike Blake: [00:06:52] But what is the difference between those two?

Cordelia Blake: [00:06:54] So, there’s also a scale difference. So, Foot Locker, which is the example I gave, they’re essentially a re-seller, right? I mean, you go to Foot Locker, you’re not buying Foot Locker sneakers, but they’re a massive company with lots of revenue. Then, you also have people who are essentially hustling out of their garage or they have smaller businesses where they’re reselling products, whether they acquire them wholesale like Foot Locker does or they acquire them arbitrage, which is a term used to describe really buying stuff retail, whether you buy it at Walmart or you buy it at Walgreens or you buy it on walgreens.com and then, you just sell it on Amazon.

Cordelia Blake: [00:07:33] Now, that business model is a lot dicier than it was five years ago. But there are many, what I would call, more legitimate like bigger established brands and companies that are essentially re-sellers that are distributors. And so, for them, you know, their business model is valid. They just have to understand how e-commerce can now integrate within it.

Mike Blake: [00:08:00] Now, a fun example of the retail arbitrage or RA, as it’s called in your community, is, I remember when you used to sell Trader Joe’s peppermint tea.

Cordelia Blake: [00:08:11] I do.

Mike Blake: [00:08:12] Right?

Cordelia Blake: [00:08:13] Yes.

Mike Blake: [00:08:13] And that used to be a big moneymaker, because it was a seasonal item and Trader Joe’s still has only select locations, they’re not ubiquitous like a Kroger is, right? And they haven’t caught on or if you can even still do this anymore. Well, you have to tell me why you stopped.

Cordelia Blake: [00:08:28] It’s still on Amazon.

Mike Blake: [00:08:28] But I remember there was a time that we went into, I think, the Buckhead Trader Joe’s, right? And I’m the idiot. I’m starting to like put the stuff in the shopping cart. You’re like, “No, no, no. Wait here”, right? You went back to the manager, you basically said, you know, “How much can I just buy all of your inventory?” Right? And we lucked with that inventory, filled up our old broken down CRV with peppermint tea and the truck smelled great and that stuff sold very well and made a pretty tidy profit with that.

Cordelia Blake: [00:08:58] I did. I think I tripled my money on that. So-

Mike Blake: [00:09:00] But those are getting harder to come by as, I guess, people are catching on and-

Cordelia Blake: [00:09:04] And also, brands are a lot more savvy now than they were even a few years ago. So, now, Trader Joe’s, you can actually still find that tea on Amazon. Trader Joe’s does not sell on Amazon. So, what Amazon does is they essentially take advantage of the third-party smaller sellers to fill the gaps in inventory for companies that won’t sell to them. So, if they go to Nike or Trader Joe’s, they’re like, “Hey, we want to sell your products”, and they’re like, “F you, we don’t want to sell on Amazon. You’re going to kill our product.” They’re like, “Fine, Cordelia will sell it”, you know. So, I don’t do arbitrage anymore.

Cordelia Blake: [00:09:39] Right.

Cordelia Blake: [00:09:39] I don’t do that business model anymore for a lot of reasons. But yeah, you could go and so, those tea boxes were about $2.50 each and a four-pack, so that costs $10, four boxes selling for $25 to $30 on Amazon. Now, that’s not all profit because Amazon, you know, they’re like the dealer in Vegas, right? The dealer always gets paid. So, that would be about, you know, a $7 profit per unit.

Mike Blake: [00:10:07] But you sell enough of them and it becomes worthwhile, right?

Cordelia Blake: [00:10:10] It’s nice.

Mike Blake: [00:10:10] So-

Cordelia Blake: [00:10:10] Yeah. And Trader Joe’s runs out. It’s a seasonal product. And people love that tea, they buy it as long as it’s available.

Mike Blake: [00:10:17] So, lots of companies aren’t already selling on Amazon. I think to me, you would think that Amazon being so ever present, right? You can’t get away from Amazon anymore. I don’t think there’s a place in country you could hide out from Amazon conceivably. But there are companies that are not yet selling on Amazon. You know, in your mind, why do you think that is? And you said that there’s some companies that do not want to sell on Amazon. Why do they make that choice?

Cordelia Blake: [00:10:46] So, Amazon is its own ecosystem. They have their own rules. They’re irrational. They don’t do what they say they do. It’s crazy. And so, you really need to know that ecosystem well. And there’s not that many people that actually know it well. So, if you treat selling on Amazon like, say, any other channel that you might sell on, then you’re probably going to have a bad experience because you don’t understand the rules of Amazon. And Amazon, they don’t always tell you the rules, you kind of have to figure them out, which is why bringing in a consultant or somebody else who can help you on your team is a really important part of that decision, in my opinion.

Mike Blake: [00:11:25] So, what’s an example? In fact, you and I are having lunch, I think, you gave a good example of this. What’s an example of somebody accidentally stepping on a landmine? Because I didn’t understand how Amazon works, that you’re telling me a story about there’s this individual inside a company thought they’re doing everything right, right? That was their intent.

Cordelia Blake: [00:11:43] Yeah.

Mike Blake: [00:11:43] Right. And then, bad things happen. So, why don’t you take us through that story, because I think it’s very illustrative.

Cordelia Blake: [00:11:47] So, this was a business, a completely legitimate business. They were selling wholesale and private label products on Amazon, had an employee who, you know, did all the things that he was supposed to do. This employee decided to open their own Amazon account and do their own selling.

Mike Blake: [00:12:05] Now, with competing products, it turned entirely different.

Cordelia Blake: [00:12:07] They weren’t, in any way, competing, they weren’t trying to be devious or difficult, they were just doing their own thing on the side. But they used the same cell phone number on that account as they had listed on their user account on this business account. And that business account got shut down for months. They finally had to go through legal to get unsuspended. And she had to fire the employee. It was a disaster. Months of revenue just gone.

Cordelia Blake: [00:12:38] So, I mean, this is kind of a bigger picture thing. I actually think Amazon really needs to be regulated in the US, but there’s very little recourse like she should have been able to just say, “Hey, this guy did his own thing. We don’t sell the same accounts.” And he shut down his account. As soon as it happened, he felt terrible. It was not intentionally done. And she said, “The account shut down, the cell phone is disconnected. It was-“, blah, blah, blah. All you get is like a bot. You’re not getting a human being who’s actually taking your case.

Mike Blake: [00:13:15] Right.

Cordelia Blake: [00:13:15] And so, for her, you know, this was her business, tens of thousands of dollars of revenue a month, and for Amazon, it just wasn’t even on their radar. And so, a lot of what we do in the consulting world is work to prevent suspension. We tell our clients, “Don’t do this because you might get in trouble”, not because it’s rational or makes sense, but just because I’ve known people who it’s happened to.

Mike Blake: [00:13:41] So, you know, if you’re in a sell on Amazon, then you need to make a commitment to understanding that ecosystem. Is it fair to say there’s kind of a language to Amazon as well?

Cordelia Blake: [00:13:50] There is. And if you’re a larger company, which I know that’s what your audience is, it’s more larger companies, I’m still surprised at how many large companies treat the decision to sell on Amazon as if it’s like a side hustle. So, you could have $500 million in revenue and you’re still really essentially treating it like a side hustle. And I just feel like you need to treat it, if you were opening like a new amazing facility in midtown Manhattan, right?

Cordelia Blake: [00:14:19] And you were investing in the pretty storefront and you had a grand opening with models and movie stars. You wouldn’t get your junior intern who was still in college to manage that, but that is what big companies do with Amazon all the time. They don’t treat it like that midtown Manhattan opening. They treat it like the side hustle. And then, the top-level executives in the companies don’t understand. They don’t know what’s happening. They don’t know how to make these decisions.

Cordelia Blake: [00:14:48] And so, things go wrong. And so, some companies, rather than dealing with any of that, they just opt out. So, that kind of goes back to your original question, why would a company not sell, because they’re just not ready for that commitment or they don’t even know where to get the information, because there’s no certification for Amazon consultant. So, everybody says they’re the best and that they know what they’re doing.

Mike Blake: [00:15:10] Right.

Cordelia Blake: [00:15:10] So, you have to kind of suss that out.

Mike Blake: [00:15:13] But what makes them more confounding is it sounds like it’s a lot like Google, that Google has algorithms that they maintain or change or whatever, and they don’t tell anybody, right? In fact, their model is to keep people guessing, I guess. And I don’t fully understand why that is, but their model is to keep people guessing. And I guess Amazon kind of works the same way, too. So, even if you think you’ve got Amazon nailed right today, January 10th, the day we’re recording this podcast, you know, by July 1st, it could be completely undone.

Cordelia Blake: [00:15:54] It could be and, you know, their trade secrets, the way they do the AI, there’s actually some legislation in Europe to regulate this in terms of informing sellers how search works. But here, we don’t have anything about that. And so, we’re all basically trial and erroring what works and what doesn’t, because what they tell us is basically wrong.

Mike Blake: [00:16:21] So, there are smaller sellers and larger sellers on Amazon. I’m curious, I can be of two minds, do you think larger companies have an easier time on Amazon or do you think smaller companies may have an easier time because they’re more willing to learn, they’re more nimble?

Cordelia Blake: [00:16:38] Well, I think like any business, it really depends what your goal is. So, if your goal is to have like a small income, then as a small salary, you definitely have an advantage. But if your goal is to use Amazon as a tool to both increase your sales by millions and also increase your marketing reach, because, you know, people see your product there, then a bigger company has an advantage because really, any business that can like lose money longer has an advantage. A smaller business, they have to be profitable to eat. But a larger company can pour tens of thousands of dollars into something and say, “Okay, well, we know in five years, this is going to be profitable to this point, so we’re going invest this much.” And it is very hard for a smaller seller to be able to have those resources to do that.

Mike Blake: [00:17:31] So, you know, let’s say that somebody comes to you and they want to know about Amazon, they say, you know, “I know all about online selling, I’m on a website. I’ve sold on eBay. I’ve sold on jet.com”, are they pretty much all the same? How much does that experience with other channels translate into an Amazon exercise?

Cordelia Blake: [00:17:54] I mean, every channel has its own rules, its own ecosystem, its own platform. And so, just as I know people who are Amazon sellers who fail utterly at eBay, because they don’t take the time to learn how eBay is different. If you are really good at your own e-commerce site or your own brick and mortar location or whatever your current business model is, any time you venture into a whole new area, which is what Amazon is, it’s a whole new area, and people, again, they don’t really treat it like that, then, you know, you have to learn the way that works.

Cordelia Blake: [00:18:26] I see all the time, like even catalog listings, you can tell by looking at a listing once you kind of know what to look for, that they just took their listing off their website and upload it to Amazon. They didn’t actually take the time to learn how an Amazon listing is its own separate thing. And you can tell. So, absolutely, any kind of knowledge you have in another area, it doesn’t necessarily apply to Amazon.

Mike Blake: [00:18:51] So, I’m going to change gears a little bit, but one thing that strikes me about the Amazon platform that I’ve learned observing you and observing how you advise your clients is Amazon has one big drawback that would concern me and that as the seller, you’re never going to own that retail channel, right? At the end of the day, you are completely at the whim and the mercy of what Amazon decides to do with you, unless you have an exceptionally large legal budget, basically, right? And including if you have an Amazon account and identity, it’s hard to even transfer that. If I’m a business and I’m selling a lot through Amazon, it’s actually hard to transfer that to a buying party, isn’t it?

Cordelia Blake: [00:19:45] Technically, you’re really not supposed to even do that.

Mike Blake: [00:19:47] Right. Okay. Yeah.

Cordelia Blake: [00:19:48] Yeah.

Mike Blake: [00:19:48] Technically, you’re not even supposed to do it, right? So, now, if I’m selling my stuff on Amazon, technically, my business is not saleable, because I’d had to shut it down.

Cordelia Blake: [00:19:57] So, the nuance of that is, the way that you handle that is if you’re setting up an account correctly, what a lot of people do is they set it up in their name and their personal email or their personal business email. So, I would do, you know, my accounts in are Cordelia Blake, cordelia@whatever, whatever, right? But what they should do is to the extent keep—their possible is have all the emails be generic.

Cordelia Blake: [00:20:19] So, have your, you know, amazon@mycompany.com. And so, then you’re not really selling your Amazon account, you’re actually selling your business entity and your bank account. So, if you came in, acquired my business, and you have the bank account and the email and all of the inventory and the log in, you can essentially take over the operation of that account, because it’s not in my personal name.

Mike Blake: [00:20:46] Right. So then, that becomes transparent.

Cordelia Blake: [00:20:49] It’s like an asset of your business. But if you read Amazon’s policies, they say that you’re not allowed to sell an account to somebody else.

Mike Blake: [00:20:57] Right. Right. You know, it’s a little bit minutia, but it’s important if you sell the company that owns the account, right? Then, if you set it up correctly, then as far as Amazon is concerned, that’s entirely a transparent process.

Cordelia Blake: [00:21:15] I mean, honestly, they won’t even know about it.

Mike Blake: [00:21:16] They won’t even know, right?

Cordelia Blake: [00:21:17] Right.

Mike Blake: [00:21:18] And I would imagine on some level really don’t care, what they need to make sure is that there’s some sort of chain of accountability, right? That’s what Amazon’s got to be looking for.

Cordelia Blake: [00:21:28] Today, maybe yeah.

Mike Blake: [00:21:30] Today, maybe yeah. Again, check back with us in six months, right?

Cordelia Blake: [00:21:34] Yeah.

Mike Blake: [00:21:34] You ought to do an Amazon podcast. You never thought of that before, right? All right. So, we’ve gone through this, we’ve set up some of the risks. What does it cost to sell on Amazon?

Cordelia Blake: [00:21:47] It actually costs very little in terms of actual, like you just write a check. A professional seller’s account, and this is the same account every seller has, whether you’re, you know, me, little in my garage or you have a multi-million-dollar account or whatever, it’s $39.99 a month for your sellers account.

Mike Blake: [00:22:05] Okay.

Cordelia Blake: [00:22:05] That’s it. That’s really the only fee. Now, of course, there’s like business costs, like pay per click and inventory and all that kind of stuff, but the actual costs, whereas if you started your own e-commerce site, you know, you’re going to have to invest in the infrastructure of your site, warehousing. I mean, Amazon even will let you use their warehouse. And you’re fulfilled by Amazon and you just pay us a fee based on the number of units that you have in the warehouse. So, it’s not like you have to pay a flat monthly rent. Like if you rented a warehouse, you have to pay rent whether you have stuff or not.

Mike Blake: [00:22:38] Yeah.

Cordelia Blake: [00:22:39] Whereas at Amazon, you only pay on the stuff you actually have in the warehouse at the moment. And so, there are a lot of advantages they give to smaller businesses that would be very hard to leverage on your own.

Mike Blake: [00:22:52] And do they take a percentage of the sales price as well?

Cordelia Blake: [00:22:55] Yeah, they take a percentage of the sales price. They take a fee for fulfillment. They take some other fees and some more fees.

Mike Blake: [00:23:03] That sounds great. We need to build Amazon. Screw this podcast.

Cordelia Blake: [00:23:07] Yeah.

Mike Blake: [00:23:07] We’re going to build an Amazon competitor right now. Forget it.

Cordelia Blake: [00:23:10] I actually know an entrepreneur who built a marketplace. It wasn’t Amazon, but he did turn his business into a marketplace so that he could sell other people’s products as well as his own.

Mike Blake: [00:23:19] Okay.

Cordelia Blake: [00:23:19] So, that is a viable business option if you’re in a niche market.

Mike Blake: [00:23:24] Okay. Now, you said something that might surprise a listener and that is pay per click. When most of us think about pay per click, we think that that’s basically Google, right?

Cordelia Blake: [00:23:35] Right.

Mike Blake: [00:23:35] But Amazon has its own pay per click, its own search algorithm, its own search ecosystem, correct?

Cordelia Blake: [00:23:42] It does. And it’s kind of funny, because now, you read all these articles about how Amazon’s growing their advertising revenue. And I’m like, “That means they’re making me pay more money for my ads.”

Mike Blake: [00:23:53] Okay.

Cordelia Blake: [00:23:53] That’s what that translates as, in case you’re wondering.

Mike Blake: [00:23:56] So, maybe the short answer is if you’re an Amazon re-seller, at least have Amazon stock so that you get some of that back.

Cordelia Blake: [00:24:02] It used to be-

Mike Blake: [00:24:02] Not an investment recommendation.

Cordelia Blake: [00:24:04] It used to be that if you had a product that was relevant to the customer, that wasn’t saturated, that was niche-specific, and was a good fit for what the customer wanted, you really didn’t need pay per click. You could just launch, you could write a solid listing and the customer would find your product. And if it was what they wanted, you know, I’m not talking about selling people’s stuff they don’t want, but like, if you’re really into grass-fed cattle jerky and you sell grass-fed cattle jerky, then you could sell them on Amazon.

Cordelia Blake: [00:24:33] I still want stuff all the time, no ads. But in the last year, that has really changed. It’s almost impossible to do a product launch at any level now without pay per click on Amazon. And then, there’s a lot of Amazon sellers, especially larger companies who, you know, they have off-Amazon marketing as well. And so, that helps their Amazon sells, too.

Mike Blake: [00:24:55] Yeah, I know one of my clients, you know, opened their own Amazon channel about two years ago and they combined that with influencer campaigns, because they do consumer products, right? And basically, there’s an element of affiliate marketing with it. And then, you know, press the Amazon link and then buy through Amazon, right? So, what I’ve learned, it sounds like you’re saying is correct, is that you could make your distribution effort and marketing effort entirely self-contained within the Amazon ecosystem or the Amazon ecosystem and retail channel could be supported by other by other marketing channels as well.

Cordelia Blake: [00:25:35] It could be. And, you know, a lot of times, and I’ve done this, you know, you’ll get a Facebook ad for something that you’re interested in. And instead of clicking through the ad, I switch over to Amazon and look for that product, because I’m like, is that legit or are they going to take me to somewhere, website or whatever? I don’t know, it’s suspicious, whereas there is this trust of Amazon.

Cordelia Blake: [00:25:53] And so, there’s a lot of companies who it’s not always a direct click, where, you know, you click from the Facebook ad to the Amazon product, but that marketing results in increase in your Amazon sales, because people then start searching for your product. And I think if you have a product that you produce or represent that, at the very least, you should have enough of an Amazon presence so that if people are already searching for it on Amazon, you’re not losing those sales, because you’re not there. So, that’s kind of a minimal level of Amazon participation, I think, a lot of companies should have that they don’t necessarily have.

Mike Blake: [00:26:31] And I have to imagine that’s even made all the more complex, because Amazon, itself, is now offering an increasing array of its own products.

Cordelia Blake: [00:26:39] They are. And they will steal your customers like without even thinking about it.

Mike Blake: [00:26:44] Right. They lose less than zero sleep over that.

Cordelia Blake: [00:26:49] They do.

Mike Blake: [00:26:49] Right.

Cordelia Blake: [00:26:49] And in fact, one real issue that a lot of larger companies are having that used to sort of master their whole, you know, like say a paper towel company or a diaper company, you know, they don’t really have a patentable product, it’s just paper towels.

Mike Blake: [00:27:03] Right.

Cordelia Blake: [00:27:03] But they’ve built their reputation over the last 100 years and their supply chain and they know how to make paper towels really well. Well, Amazon’s like, “I can make paper towels, no problem.” And so, they will actually advertise in, you know, let’s say your bounty listing on Amazon for Amazon Essentials paper towels for $3 less than the bounty one and literally just steal that sale.

Mike Blake: [00:27:30] That’s cold blooded, man.

Cordelia Blake: [00:27:32] And that’s where you have, Europe is starting to look at regulating that, because they’re saying, “There’s no way that you can.” I think in the next five years, we’re going to start to see regulations around marketplaces selling their own products and competing against their third-party sellers because it’s a real data gray area.

Mike Blake: [00:27:53] All right. So, let’s switch gears a little bit. You know, our listener, we’ve walked the listener through the pros and a lot of the cons and the cautions about selling for Amazon, but the listener says, “You know what, I get it. I think I’m going to give this thing a shot.” What are the first couple of steps you undertake to now start an Amazon selling channel?

Cordelia Blake: [00:28:15] Well, there’s a lot of learning. So, it really depends. If you’re talking like, you know, somebody who has a small business and they just want to sell on Amazon versus a larger company. So, we’ll simplify it again.

Mike Blake: [00:28:26] Well, I’d be very surprised if Nike executives are listening to this.

Cordelia Blake: [00:28:32] They are, they’re totally.

Mike Blake: [00:28:33] Yeah. Well, hi. Love your shoes. Wearing Air Monarchs, by the way, which my son actually says they’re cool. He’s so delighted I’m not wearing Skechers anymore. No, I think our audience is going to be a small and mid-sized business and they’ve got their own products they’re selling. But, you know, they have probably heard some of the horror stories or have not gotten around to selling on Amazon. And now, we’ve convinced them that that’s something they may want to consider doing. So, I’m in that $20, $30 million a year company, I want to start selling on Amazon. What’s sort of the initial checklist to get started?

Cordelia Blake: [00:29:08] Well, I would honestly reach out to somebody like me. There’s a lot of great consultants out there who really know what they’re talking about. And one of the things that surprises me, I’ve had several companies reach out to me and the first thing I usually do, especially if they’re kind of new to Amazon, is we offer to do a report for them, where we say, “Okay, we’re going to look at your costs. We’re going to look at, you know, the dimensions of your product, the weight, the competitive marketplace. We’re going to see who else is selling what you’re selling and we’re going to deliver you report and basically tell you how this might work for you.” Good, bad, you know, all of it. And they come already having made a decision based on very little data.

Mike Blake: [00:29:50] Right.

Cordelia Blake: [00:29:50] And they don’t want that report.

Mike Blake: [00:29:52] Right.

Cordelia Blake: [00:29:52] And I’m like, “Why would you not want that report?”

Mike Blake: [00:29:53] “Shut up and take my money.”.

Cordelia Blake: [00:29:55] So, I mean, I had a client not hire me, because we really felt like they were making a bad strategic decision.

Mike Blake: [00:30:02] I remember that.

Cordelia Blake: [00:30:02] And they didn’t want to hear it. And I didn’t really want to help them make this bad strategic decision, because I felt like we were just going to end up in an unhappy situation.

Mike Blake: [00:30:10] And you don’t want your name on that.

Cordelia Blake: [00:30:11] So, I would say, if you’re starting out, get that damn report. Get somebody to write you a report. It doesn’t necessarily cost that much in terms of your—and explain the fees for your product, explain the market for your product, the number of searches for not just your product itself, but the category, what the competition looks like, what their costs are, and really start to understand, because the Amazon ecosystem, it’s different. Like I have one client, you know, they sell products in one industry.

Cordelia Blake: [00:30:44] And so, they’ll give me a list of their top competitors. They’re like, “Well, this is our thing and this is what all our competitors are selling it for.” None of those competitors are on Amazon. Those are their brick and mortar competitors. They’re some Chinese company that you never heard of that’s stealing 90% of this business, because they know how to do Amazon. So, the Amazon competitive marketplace may look completely different than the real world’s competitive marketplace. And somebody can do a report for you on that.

Mike Blake: [00:31:14] So, I guess, are there some products that sell better than others or worse than others? And how do you decide what you’re going to sell on Amazon?

Cordelia Blake: [00:31:24] Well, I mean, shipping, right? You can’t live without it.

Mike Blake: [00:31:29] Yeah.

Cordelia Blake: [00:31:29] Shipping is expensive. And so, one big factor is how much does your product weigh? How big is it? How much is it going to cost to ship it?

Mike Blake: [00:31:37] Like FedEx and I think all the other shipping services followed suit, they lowered the bonus threshold to 50 pounds as opposed to 70 pounds, right?

Cordelia Blake: [00:31:46] It’s really getting to the point. I mean, look, shipping costs money and at some point, somebody is going to pay for it.

Mike Blake: [00:31:52] Yeah.

Cordelia Blake: [00:31:52] And so, the big thing is if you sell anvils versus if you sell toothpicks, it’s going to be a different analysis. But the other thing a lot of companies don’t do is they really don’t work the shipping costs into their profitability, so they’ll come and be like, “Our costs are $5 and these are selling for $50, so it’s a win.” And I’m like, “Yeah, but it costs you 40 bucks to ship it.” So, that is one thing I would look at. And then, the other thing is, how can you strategically increase the price of your product?

Cordelia Blake: [00:32:20] You know, if your product is cheap, let’s say you sell a toothpick box, which is $2. There’s like no way that’s worth selling online. But if you sold 20 of those toothpick boxes, it might be. And that’s another thing that surprised me. A lot of companies don’t think about how they can bundle or combine their products to make a higher value product to solve their customer problems and, you know, sell 10 products with the same number of profits as if he sold 100. It’s a lot less work, a lot less labor, all that stuff. So, that’s another way you can be strategic.

Mike Blake: [00:32:51] Now, if I understand correctly, there are certain products Amazon will not allow you to sell.

Cordelia Blake: [00:32:57] Like CBD.

Mike Blake: [00:32:58] CBD. And-

Cordelia Blake: [00:32:59] You may wonder how I know that.

Mike Blake: [00:33:03] Yeah.

Cordelia Blake: [00:33:03] Somebody asked me, “Hey, I’ve got a great source for CBD products.” I’m like, “Yes. So, does everybody and their brother.”

Mike Blake: [00:33:09] Right.

Cordelia Blake: [00:33:09] You cannot sell. And people will say, “But it’s on Amazon.” Because you can buy CBD on Amazon or hemp oil, whatever you want to call it.

Mike Blake: [00:33:18] Right.

Cordelia Blake: [00:33:18] But it’s like, “Yeah, but they’re violating terms, so I’m not going to do that.”

Mike Blake: [00:33:22] Right. Just because they haven’t got caught yet doesn’t mean-

Cordelia Blake: [00:33:24] Right.

Mike Blake: [00:33:24] … they’re not breaking the rules.

Cordelia Blake: [00:33:25] Right.

Mike Blake: [00:33:27] Now, from my understanding, also from going back to kind of the retail arbitrage perspective, there are certain products you can’t sell as well, correct? Because companies have some sort of unique channel relationship arrangement to make sure that third-party sellers can’t compete with the primary supplier, correct?

Cordelia Blake: [00:33:46] Yeah. So, you know, you can brand-register your brand and then, just like, you know, anything else. Larger companies, they have bigger lawyers, bigger law firms that represent them, they’re willing to pursue IP infringement and things like that. And the smaller business can’t necessarily fight that. So, it used to be that you could sell Barbie and you could sell Lego and you could sell all these brands that you just bought, you know, at Toys R Us. Haha. Back in the olden days.

Mike Blake: [00:34:10] They’re coming back.

Cordelia Blake: [00:34:12] But now, you know, those brands are regulated. Some of them are restricted. And there are things that like if you meet somebody who say, “I sold an Amazon for 10 years”, they’re going to just be allowed to sell stuff that you’ll never be allowed to sell if you just start out today. So, it is different. It’s more restricted now.

Mike Blake: [00:34:31] So, as you have been an Amazon seller of some kind for a number of years now, what skills have you found that you have needed to develop in order to be more successful as well as to evolve with how that marketplace works?

Cordelia Blake: [00:34:47] I mean, I’ve just had to become a stronger business person, in general. You know, when I first started selling on Amazon, you could basically sneeze and make money. I didn’t really know that at the time. I just thought it was easy money and it was great.

Mike Blake: [00:34:59] You thought you’re brilliant.

Cordelia Blake: [00:35:01] Because I’m brilliant, you know. But I’ve had to really evolve as a business person and understand things like long-term profits and investing in infrastructure and things that I really didn’t grasp when I first started doing this as a side hustle six years ago, seven years ago. So, Amazon now, it’s a real business. So, just like you wouldn’t go into any other business and assume that you could invest very little money and make a ton of money in the first week, Amazon is the same way. But one of the bad things about YouTube is people will search up videos and videos from five years ago, come up and they’re like, “Oh, this is so easy”, right? And then, they go do this stuff that people were teaching five years ago. And there are teachers out there that are still teaching that. And it’s very bad. So-

Mike Blake: [00:35:55] But even if they’re not teaching it, it’s just some legacy archive video. You look at the timestamp, you realize that it’s basically like being in a time machine.

Cordelia Blake: [00:36:04] Yeah. And people get mad. They’re like, you know, “Why are people taking the price?” And I’m like, “Well, you just did that, because you want that sale.” Like, they just want to have this bubble and it doesn’t exist anymore. So, if you’re going to sell on Amazon, you need to treat it like a real business, whether you’re a re-seller or sourcing your own products. However you do it, it’s a true channel for your business and you really need to understand it and treat it accordingly.

Mike Blake: [00:36:29] And I would also observe that you’ve had to become a much better data analyst than you have been.

Cordelia Blake: [00:36:37] Yes.

Mike Blake: [00:36:37] And had to embrace that.

Cordelia Blake: [00:36:38] I’ve had to embrace data, bookkeeping, I hate bookkeeping. No. But yeah.

Mike Blake: [00:36:45] Thank you for saying that on an accounting podcast, we do appreciate that.

Cordelia Blake: [00:36:48] That’s why you hire people to do that for you.

Mike Blake: [00:36:49] Yes, it is.

Cordelia Blake: [00:36:50] Like Brady Ware.

Mike Blake: [00:36:50] If you hate bookkeeping, call Brady Ware.

Cordelia Blake: [00:36:52] Call Brady Ware. But seriously, yeah, data analytics are important and creative data analytics, which is what I like. So, some people will, you know, their software you pay and I pay for the software and there’s software you get through Amazon if you’re brand-registered, which I love, called Brand Analytics and I could geek out on data all day long. But yeah, there’s data available and you definitely need to learn how to leverage data. And the Amazon data is different from marketplace data.

Mike Blake: [00:37:25] So, how do you use Amazon’s data to figure out which products to sell? I know in your business, you’re selling products and you don’t just sort of say, “Hey, this looks cool. Let’s start selling some.” You’ve done that in the past, you’re no longer doing it.

Cordelia Blake: [00:37:43] It used to work.

Mike Blake: [00:37:43] You could get away with it before, right? But now, you have to be a little bit more thoughtful. So, walk us through a little bit about your process. How does a product make the cut-

Cordelia Blake: [00:37:52] Okay.

Mike Blake: [00:37:52] … to become a product that HuntGirl is going to carry?

Cordelia Blake: [00:37:56] So, I will give you an actual example of a product that I wanted to sell, because I really liked it. And as usual, I teach people stuff from the mistakes I made, because that’s how you learn and I hope to prevent you from making the same mistake. But it’s a leather bracelet. It’s a beautiful leather bracelet, has inspirational sayings on it. It’s just the kind of thing that makes you feel good to wear. It’s attractive, it’s gorgeous, it’s ethically sourced, blah, blah, blah, blah. It’s wonderful, right? So, I’ve seen it off trade shows.

Mike Blake: [00:38:23] The cows voluntarily gave up the leather.

Cordelia Blake: [00:38:24] They did. So, the first thing you do is you look up to see if it’s on Amazon. So, when you do a search on the Amazon, it’ll tell you how many search results there are. So, if you put in coffee mug, for example, into an Amazon search window right now, you will see like 50,000 results. So, that might indicate to you that that’s a little bit saturated.

Mike Blake: [00:38:47] A little bit, of course.

Cordelia Blake: [00:38:49] Right. And maybe you don’t want to sell coffee mugs, but like let’s just say you were trying to do insulated coffee mugs that are made from ethically sourced stainless steel, if there is such a thing, I don’t even know if that exists. Well, then that’s going to be less result. So, the first thing you want to do is do some searching to see how saturated on Amazon your product is. In general, I try to find stuff that has less than 4,000 search results.

Cordelia Blake: [00:39:15] And really, under 2 is ideal. So then, the next thing is, so everything on Amazon is ranked. So, everything has what’s called a BSR or best seller rank. So, just like on a New York Times book list, you want to be the number one best seller, while you want to be the number one best seller on Amazon, too. But there’s a lot of things on Amazon. So, kind of anything under, this is super rough, under 100,000 is usually a decent rank. That’s a very broad generalization and-

Mike Blake: [00:39:43] That shows you how big Amazon is.

Cordelia Blake: [00:39:47] Yes. But certainly, under 50,000 is good. That’s a good rank.

Mike Blake: [00:39:53] Okay.

Cordelia Blake: [00:39:53] So, you want to see if in your search results, there’s stuff that has—because sometimes, you’ll look something up and you’ll be like, “Oh, there’s only 30 results.” And then, everything is like 10 million BSR. You don’t want to sell that. That means nobody’s looking for it. Nobody’s buying it. So, if you have on a search result page, let’s say half your results are, you know, under 50,000, then that’s good. Not only are people searching for that, it’s not saturated, but it’s selling. And then, this is the thing that I made the mistake with the leather bracelets. You want to see the prices stuff is selling for.

Mike Blake: [00:40:28] Okay.

Cordelia Blake: [00:40:28] And if you want to compete on that. So, sometimes, you’ll look and like everything selling for like $20 each and your thing is going to cost $20. And so, you’re like, “All right, I can write a good listing. I can throw some pay per click. I can compete.” But maybe everything is selling for like $8, which is what happened with the leather bracelet. So, I got this beautiful leather bracelet that sells for $40 and every leather bracelet on Amazon was selling for like $6.

Cordelia Blake: [00:40:57] So, I ended up having to donate all those leather bracelets. So, you want to look at the price point. Are you competitive on price and can you realistically compete? Because, you know, there’s some battles that are worth fighting and some battles that are better to walk away from. So, if everything is selling for $6 and there is like 50,00 things that are selling for $6, most likely, it’s just better to walk away. So, those are my three. So, you see how many search results, the ranks of the search results and then, the price point.

Mike Blake: [00:41:32] What’s the most common mistake you see made by people ore companies selling on Amazon.

Cordelia Blake: [00:41:37] They really do not take the time to learn how to sell on Amazon. They want their first thing to be a hit. And they’re like, “I sold one thing. Why didn’t it work well”, instead of really thinking like, “All right. I’m going to sell 100 things and then, I’ll learn.” So, the biggest thing is really to give yourself time for that learning curve and money for the learning curve. Whatever your budget is, divide it by 10 things or a hundred things and just know that you’re going to screw stuff up, you’re going to learn, and just that’s part of it. You can hire a consultant, you can take a high-priced class, you are still going to have a learning curve. It just is part of the process.

Mike Blake: [00:42:16] There’s going to be some trial and error.

Cordelia Blake: [00:42:18] Yeah.

Mike Blake: [00:42:18] As is often the case in e-commerce.

Cordelia Blake: [00:42:20] Or any business, really.

Mike Blake: [00:42:23] Well, we’re running out of time here. There’s a lot more questions we could ask, but I know we got to get you moving along. If people want to learn more about the Amazon Channel, how to take advantage of it, how can they contact you?

Cordelia Blake: [00:42:34] So, they can go to my website, which is cordeliablake.com. I have a couple different companies, so I just unified it all into one website. And then, I’m on YouTube, Cordelia Blake TV on YouTube. I’m on Facebook, I’m kind of on Instagram. So, I do educational videos. You can reach me on LinkedIn. I’m pretty easy to find.

Mike Blake: [00:42:58] Well, that’s going to wrap it up for today’s program. I’d like to thank Cordelia Blake so much for joining us and sharing her expertise with us. We’ll be exploring a new topic each week. So, please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: Cordelia Blake, eCommerce, Mike Blake, selling on Amazon

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