Doing More Than Good: Leadership in Business

BELLWETHER

Doing More
than Good

Volume 3 | Issue 2 | Second Quarter 2012

2 Bellwether Magazine | Second Quarter 2012

Encouragement is not costly to give, but
priceless to receive.
~unknown author

10
Big Brands,

BIG
Letter from the Editor 5
sections

Going
We give to charity!

Leadership 6 with Charity

Sales and Marketing 9
Not-For-Profit...
Cover Story 14 with a
Industry News
Book Report
16
22 16
Customer Relationships 24
Social Media
Human Resources
26
30
Putting Corporate Money
18
Where the Meaning Is

Giving in the Social World - Don’t Brag, Share

26
3
bell•weth•er -noun: one who takes initiative or leadership

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LETTERFROMTHEEDITOR

BELLWETHER
A Blytheco, LLC Magazine

Volume 3
Second Quarter, 2012

www.blytheco.com
www.bellwethermagazine.com

STAFF
EDITOR
Apryl Hanson

CREATIVE DIRECTOR
Greg Went

OPEN FOR AD CONTRIBUTING WRITERS
Alicia Anderson
Dave Barret
Lynn Berman
Theresa Boros
Eyal Danon
Apryl Hanson
Cortez NaPue
Genie Whitehouse
Bill Wiersma

ADVERTISING SALES
Dori Fitch

SUBSCRIPTIONS
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Or contact Dori Fitch -
(800) 425-9843, Extension 1168
dorif@blytheco.com

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of Bellwether Magazine.

5

LEADERSHIP

by Bill Wiersma

W
all Street trader Phillip Meyer (quoted in a 2010
article in Time) noted, “If running the economy off
the cliff makes you money, you will do it, and you
will do it every day of the week.” Meyer is referring to the
willingness of some Wall Street traders (and, by default, their
firms) to make money at any cost—even if it meant throwing
the entire country under the bus and into disarray.

I choose to believe that Meyer’s declaration does not apply to every trader
or every Wall Street firm. Yet, if you’re not outraged by the self-serving
shenanigans by some in business (whether on Wall Street or not) in recent
years, you haven’t been paying attention.

Some have argued that the sole purpose of a business is to make
money—the more the better. Yet, as Rosabeth Moss Kanter
reminds us in a November, 2011 Harvard Business Review article,
a business doesn’t exist in a vacuum. Rather, each and every
business is ultimately interdependent with the greater society and,
as such, has certain inherent responsibilities to that society. In other
words, making money is an obvious imperative, but it isn’t the whole picture. A healthy business
requires a healthy society.

Kanter advocates that the great companies she has studied ‘think differently.’ These companies,
representing a variety of industries from all over the world, think of themselves more as an institution
than merely a money-making machine intent on maximizing short-term profits. Said another way, these
companies take a long term perspective. They invest in their customers and the greater communities
they serve. Demonstrating a return on some of these investments can prove dicey. They do it anyway!

In other words, they’re ‘doing more than good.’ Certainly providing a valued product or service to the
marketplace is a big part of the good a company does. It’s also good that a company is able to provide valued
employment opportunities or becomes an important source of much-needed tax revenues for the public sector
(which depends almost exclusively on them). As wonderful as these things are, Kanter suggests that great companies
do a little more.

Kanter’s findings are similar to my own; namely that successful (and sustainable) companies are populated by people
who think differently. In her article, Kanter alludes to an especially important mind-set I’ve identified that is held by
professionals; namely that “a professional realizes (and acts like) they’re part of something bigger than themselves.”
Indeed this is ‘thinking differently’ when contrasted against the traditional view that ‘the sole purpose of a business is to
make money’---something Wall Street trader Phillip Meyer apparently believed.

The ‘something bigger’ mind-set influences both how one conducts business and, in some instances, can influence the very
purpose of the business itself. Consider these three unique ways:


Solving Uniquely Personal Problems Transforming How We Live
• Medtronic, a world leader in medical technologies, is changing • Apple. Whether having greater access to the sources of our
the face of chronic disease. Its higher purpose is to alleviate favorite music, having our mobile phone double as a virtual
pain, restore health, and extend lives. Absent the types of assistant, or downloading the Wall Street Journal on an iPad,
products Medtronic develops, people die. Apple has enhanced lives. For some, it’s been transformational.
• TOMS Shoes, a for-profit entity, has a unique proposition— • Considered by many to be the world’s leading design firm,
buy a pair of shoes from them and they’ll give a pair to a child IDEO of Palo Alto, CA creates innovative products and services
in need. Since September 2010 TOMS has given away over for many of the world’s leading companies. Their efforts have
1,000,000 pairs of shoes to children in need all over the world. given rise to, among other things, the first laptop computer, the
• Most of us are familiar with Gore-Tex, the breathable, water- Palm V, and the Apple mouse.
proof fabric used extensively in outerwear. But W.L. Gore’s • Alice Waters---owner of the renowned Chez Panisse restaurant
technologies are also used extensively in pharmaceuticals, in Berkeley, CA---is a American pioneer in culinary philosophy.
filtration devices, and a host of other applications. In the Many of our current trends in food (fresh, healthy, sustainable)
medical field alone, more than 25 million Gore implants have are directly attributable to Waters’ influence.
helped patients around the world live longer, healthier lives. Each of the founders of these entities set out to do great work, not
It’s easy to see how the founders set up these companies in such get rich. Yet because the quality of their work was so exemplary,
a way as to enable them to be a part of something bigger than each made more money than they would have ever imagined.
the founder themselves. Their higher purpose was to enhance
people’s lives---in a very personal way. Your company may not be attempting to solve a vexing societal
problem, transforming an industry, or saving people’s lives. But
Addressing Pressing Societal Problems wanting to serve a higher purpose has no limitations. It takes
many forms. For example, Portland based Umpqua bank allows
• Problem: The lack of clean drinking water—especially in the employees 40 hours of paid time off annually to volunteer.
third-world. HaloSource—a Bothell, Washington company— Patagonia, an outdoor apparel company, commits up to 10% of
has developed technology which instantly kills bacteria in their profits to causes of their choosing. In today’s vernacular—it’s
water. The solution is low-cost and works without electricity or called ‘giving back.’
piped water.
Professionals see the world in a certain way. Indeed, they
• Problem: the need to reduce the country’s enormous energy
think differently. Their mind-sets are what make them unique.
foot-print. Wal-Mart has made a significant long-term
Desiring to be a part of ‘something bigger than oneself’ is one
commitment to renewable energy. More importantly, Wal-Mart
of those mind-sets. Paraphrasing Harvard’s Rakesh Khurana, the
recognizes that through its enormous purchasing power it can
professional expects to create value for society, not extract it. If
help take the solar market to scale. In doing so, the industry’s
a company’s sole purpose is to make money—it’s harder to do
costs should drop. Walmart has been willing to relax its short-
great work, harder for employees to believe in the company as an
term ROI requirements for investments in solar with the hope
institution, harder to be a truly great company.
of reaping lower costs in the future. The company is taking the
larger view---resulting in expected wins for the solar industry,
Wal-Mart itself, and for the nation.
• Problem: The need to reduce scrap steel in landfills. Since the
advent of Nucor’s mini-mill technology in 1969, the company
has turned scrap steel into new product. In turn, Nucor has
become North America’s largest steel producer.
Notice how each of these companies core purpose was linked to a
significant societal problem. Was their motivation purely altruistic?
No. Each hoped ‘to do well (financially speaking) by doing good.’

About the Author
Bill Wiersma is the principal of Wiersma and Associates, LLC, a consulting firm that helps leaders create cultures centered
on professional ideals. His expertise has been featured in numerous media outlets--including the New York Times. Bill,
the author of two critically acclaimed books, is a trusted advisor to executive leadership on senior team development and
organizational culture. His latest book is “The Power of Professionalism”

7

LEADERSHIP

Toot Toot Tooting
Our Own Horn by Alicia Anderson

N ot to toot our own horn or anything, but in this issue devoted to service,
we thought it only right to recognize Blytheco’s own CEO Stephen Blythe,
who last month won the Kent Clapp CEO Leadership Award as part of the
2012 Medical Mutual Pillar Award for Community Service.
Blytheco as a firm was recognized as a winner of a 2012 Blythe is also an avid supporter of the ACS Relay for Life
Medical Mutual Pillar Award for Community Service in fundraisers coordinated by Sally Brown of the Blytheco
November, 2011. This award, given by Medical Mutual of Laguna Hills office throughout the year. His private aircraft
Ohio and Smart Business Magazine, recognizes the business flights and introductory pilot’s lessons are always a hit at
community’s charitable works in the central Ohio region and the relay events.
overall
Stephen’s
commitment commitment to
to philanthropy. service trickles down
All 2012 Pillar
Award winners and
their good deeds were
featured in the January
edition of Smart Business Columbus. Winners attended
the 2012 Pillar awards recognition event, held January 26,
2012 at the Ohio Statehouse in Columbus, Ohio.
throughout the organization. Team members are
The Kent Clapp CEO Leadership Award recognizes one active in and supportive of their local communities. Staff
top executive of a for-profit company whose commitment members regularly participate in fundraising activities for
and spirit for community service serves as an example the American Cancer Society and Orangewood Children’s
for the organization he or she leads and filters down Home, among other activities. This year we are launching
throughout that organization. Clapp was the Medical a series of networking events across our nationwide
Mutual’s longtime CEO who was tragically killed in a small locations where we raise funds for local charities as part of
plane crash in Puerto Rico in 2008. the event.

Blythe was recognized for his involvement in LIGA When leaders authentically demonstrate commitment to
International, the Flying Samaritans and the American service, it flows throughout the business and throughout
Cancer Society’s Relay for Life. LIGA, the ‘Flying Doctors the community. We’re proud that Blytheco exemplifies that
of Mercy,’ is dedicated to improving the health and well- commitment.
being of the people of Sinaloa, Mexico, by providing free
health care and education. The Flying Samaritans provide For a hilarious recap of the awards ceremony from the
similar services in Baja Mexico. For over ten years, Stephen perspective of Blytheco Account Executive Kelly Rayburn
has contributed to these organizations as a pilot, volunteer, (“Schmoozin’ With our CEO, Stephen Blythe: The Pillar
board member, website developer, and treasurer. and Kent Clapp Awards”), visit our blog at think.blytheco.
com.


SALES&MARKETING

Is marketing
with a cause
related to an by Apryl Hanson

increase in sales?
It seems everywhere I turn,
another company that I Brands that support
a cause are seeing
do business with is now a growing increase
supporting a cause. Does in brand awareness,
especially when the
this relate to an increase brand is tied to a local
cause. This type of
in overall sales? The 2010 grass roots support
Cone Cause Evolution Study can work well for small
businesses to define
would suggest yes. themselves and earn
It seems the issue isn’t just that consumers spend local attention. The
more dollars with companies that are supporting big question is does
a cause, but that consumers have grown to expect it produce additional
that companies will support a cause. “About one sales results?
third of Americans have even higher expectations of
Increased brand
companies to support a cause during a recession, and
awareness can produce
31% say an economic downturn is a time when it
an increase in purchases
is more important than ever for companies to
and loyal customers, but that alone
step up to support social and environmental
won’t be a savior of a brand. You
needs,” says the Cone Cause Evolution
have to have all elements of a
Study, our nation’s benchmark report
business working together in
on cause marketing attitudes and
order to take advantage
behaviors.
of cause-based branding;
As our economy begins to emerge other elements such as
from recession, the expectation is that cause employee loyalty and
support will continue. People want to feel good satisfaction, customer loyalty and
about where they spend their money. With happiness, when combined with
overall funding for non-profits decreasing, supporting a cause, will increase
cause support in American businesses is your revenue but if one of these
an important way for consumers to still elements is failing – supporting a
feel like they are giving back while cause won’t work.
spending less.

9

SALES&MARKETING
Big Brands,

BIG
Going

by Apryl Hanson

with Charity

S tarbucks, a successful brand that supports many causes, continues
to increase awareness about the charities that they are supporting.
The newest is “Create Jobs for USA.” Starbucks teamed with the
Opportunity Finance Network (OFN) to help
create and sustain jobs by providing capital grants
to underserved community businesses that will
help increase jobs in those areas.
To learn more about this specific program visit www.creatjobsforusa.org.

Is this and the company’s other charity work helping Starbucks
increase its brand perception? It is just one of the many things
that this company is doing right. They have every other element
of a growing business like loyal employees, consumers that are
happy about their products and a brand that stands for more
than just making profit.

Some brands create their own charity – McDonald’s created
the Ronald McDonald House Charities. Are charities working
the same way for McDonald’s as they are for a company like
Starbucks? I believe if we compared the two we would find some
similarities, but also some differences that would show that there
are other elements involved in integrating charitable contributions
into a successful business.

We Love
Charities!


The difference between these two organizations is what fanatics, and they support charities on a local level. Teams
I call “E2CL” – meaning in order for there to be real of local employees decide which local 501(c) (3) charities
integration of charitable work to positive business results, they will support. This type of community involvement
you must have these elements: on a local level gives them the image of a down-to-earth
local company in the many communities that they serve
• Extreme employee loyalty and culture (E)
nationally.
• Customer enthusiasts and Loyalty
(High NPS - Net Promoter Score) (C)
How can your company create E2CL?
• Charity that is prominent (C)
All of these create overall brand Loyalty - (L). 1. ake sure that you are doing what you can to support
M
your employees, so that they feel loved and passionate
I think we can learn a lot from bigger brands that are doing about coming to work every day.
it right, like Starbuck’s and from brands that are almost 2. rive customer enthusiasm by making sure you have
D
doing it right, like McDonald’s. Another major brand, the ability to get feedback from your consumers and
Wal-Mart, has been in the news for having exceptionally improve products and processes to make it easy to
unhappy employees, creating a stigma about their work with you.
workplace and brand. They tie themselves to charities and 3. hoose a local charity to work with and develop a
C
have achieved tremendous financial success, but is it at rapport with the leaders of that charity. Meet and figure
the cost of their employees and vendor relationships? Do out what will work for you and your employees to get
they have what we would call a “superbrand” where we involved with a cause.
love them? No. We may shop there, but love and loyalty 4. inse and Repeat – as you know if any one of these
R
are not what keep people purchasing from them – it’s areas falls short it can attack your bottom line.
price and convenience, period.

Contrast Wal-Mart with Southwest, which shows signs of
exhibiting E2CL. They have customer and employee brand

COFFEE

We give to charity!

11

Billing Suggestions for Quicker
Payments and Lower Expenses

L ast month we looked at the importance of deciding who to extend credit to, and how to decide
how much credit to give. We also covered how to monitor your clients and adjust your credit
policies based on their payment habits, and new information you find through Google Alerts, other
vendors, etc. This month we are going to discuss some basic billing and collection procedures.

If your business does not have a systematic invoicing and service will forward the mail to the customer with that
billing system, it is very important to have one in place. new address imprinted yellow sticker placed over the old
Many times I have seen that customers haven’t paid my address, just like the previous invoice. Yes, the customer
clients simply because they were not billed, or reminded to will still get the statement; however, psychologically they
pay on a regular basis. I know this may be hard to believe, will be less inclined to pay it. If you think about it, someone
but sometimes a loss or change in personnel occurred – will again be getting a bill, which clearly shows that the
and the missing person was the one who billed or made sender doesn’t know where they are. This is a bill that is
late-paying customer follow up calls. This can happen easy for a less than honorable person to ignore. On the
when there is staff turnover, typically in smaller or newer other hand, if you update your system immediately with any
companies where there isn’t enough staff to handle the new customer billing addresses they will get the bill directly
invoicing and billing. To avoid this potential situation many and faster than when it is forwarded, and with their new
companies are opting to outsource their billing and follow address printed right on that envelope. They may think,
up. They are then assured that billing and follow up calls “Wow, they’re pretty efficient over there. I didn’t tell them
are being done on a regular basis. This can be done by where I moved, but somehow they already know.” This bill
outside companies for much less than salary expense. has a much better chance of being paid.
Also, outsourced first-party billing and follow-up calling
can provide professional control of dialogue. It can be Creating effective billing statements
computer programmed to be more systematic than internal
staff are, as this is their specialty. The more systematic you Have a due date: If you think about most of the bills you
can be with your follow up process, the better your cash get at home, the overwhelming majority of them have a
flow. due date, i.e. “payment is due by March 15.” This gives
the payer a specific expectation of when to send payment.
Address Correction Requested This has better predictable results than invoices that say
“pay upon receipt,” or “payment is expected in 30 days.”
One of the most difficult collection problems is tracking A specific due date is the best option, which is why so many
down a customer who has “skipped” – or moved without major companies have adopted this.
informing your business of their new address. The U.S
Postal Service has a procedure to address this situation. Remove any aging sheet on your statements or invoices:
Any statement or correspondence sent from a business Many companies have a software program that lists all
should have the words “Address Service Requested” outstanding balances in a mini-aging sheet on the bottom
printed or stamped on the envelope, just below your return of their statements. This may help clarify the total balance
address in the top left corner. If a statement or invoice is due with customers, and the age of each invoice, if they
sent to a customer who has moved and the words “Address have multiple invoices. I would recommend however
Service Requested” appear in that top left corner, the postal removing these columns, or at least reducing them to not
service will research this information. If you are mailing show any later dates than a 90+ column. I have seen some
first or second class mail, and they can locate a forwarding of them show a 30, 60, 90, 120, 150 and a 180+ days past due
address for that person, they will send you business form column. The subliminal message being sent, even though
#3547 with the correct address for a small fee of 50 cents. the invoice may say, “Please pay in 30 days,” is that they
This keeps your customer’s address file up to date really can take 6 months, as that is what your own statement
is showing. This mini-aging sheet should be removed or
Also be sure to update that information from the postal reduced from your statements, as it implies that customers
service into your system right away. I have seen companies can truly pay much later than the terms you have stated
that did get this new address information from the postal with them, as you show that you track it much farther out.
service and did not take the time to update their client’s
information. When they bill the client next time, the postal


SALES&MARKETING

by Dave Barrett

Consider adding a late fee: Many companies use a late fee, efficiency is added by the automated call having dialogue that
disconnect fee, service fee, or interest charges, to cover some says “to speak to us now press #1”. Your customer could then
of the expense of carrying their late payers. This is worth the be connected to your AR department personnel to discuss the
time to discuss with your attorney, if it could be instituted in bill and take credit card information over the phone. This is
your business with your customers. An attorney is important a much less expensive and a more productive process than

“
to bring into this conversation, as the customer must be what is commonly done 100% manually, by having a larger
informed of this fee contractually before it is assessed. The staff of salaried people constantly dialing out. And to many
impending late fee can be mentioned people’s surprise, upon reviewing
in your contract for example, or
other correspondence. This can be Remove any this process in detail, it does not
lose any customer service image if
additional motivation to get your bill it is designed properly. It is more
paid quickly. And the additional fees
your company recoups can be used
aging sheet on profitable to link this new technology
with a smaller accounting staff, and
to subsidize the cost of carrying these
late payers, and be used to reimburse your statements programming the time of these
calls to coincide with enough staff
for the cost of additional follow up time to handle the amount of inbound
spent continuing to request payment
from these late payers. These fees
or invoices calls that will be generated.

seem very appropriate to me, but must
be instituted legally. Turn up your cash flow and profits while reducing expenses

Send reminder letters more frequently: The squeaky wheel In summary:
does get the grease. If you increase the number of times you
request payment, you will increase your chances to get paid. If • Follow up in a timely manner with statements and calls
you can’t easily bill every customer twice per month, consider • Get statements out quickly and ideally twice per
outsourcing to a company that can do it for you. Getting your month
statements and reminder letters into your customer’s accounts • On your statements: try and use a “due date,” remove
payable department twice as often monthly, and two weeks mini-aging sheets or reduce the number of columns,
earlier than a regular monthly statement will definitely get you
paid faster. • Consult with legal counsel about instituting a late fee into
your billing process
New automated dialing services • Consider utilizing an automated calling service to increase
contacts, reduce dialing personnel, and drive calls to you
Automated calls are now a popular choice for election at an exact time when you are staffed up to handle them.
campaigns, reminding patients of upcoming appointments,
and for our purposes, reminding individuals about their past • Use Address Service Requested on every invoice sent, and
due account. These automated calls can be utilized in a way immediately update any new address provided to you by
that creates a very professional and sophisticated image the postal service.
for your company. And while done by outside vendors,
your customers will perceive this as your company’s own
sophisticated follow up system, as your company’s phone If you have any other billing and follow up suggestions,
number can be inserted as the caller ID. please feel free to share. I would be happy to pass other
helpful ideas along in future articles. I hope knowing
Automated calls are increasing the efficiency of internal
billing departments by being programmed to be dialed at a this information can help your company to improve your
specific time of the day. After establishing that the name of billing and follow up efficiency, cash flow, and profits.
your company is calling regarding their account, even more

About the Author
For over 20 years, Dave Barrett has helped businesses optimize their accounts receivable management strategies and collections. Working with
clients in the manufacturing and distribution industries as well as the banking, legal, accounting, and medical fields, he reduces exposure and
internal expenses, while at the same time improving the billing and follow up process. Learn more about Dave by contacting him at (818) 458-4663,
or dave.barrett@transworldsystems.com

13

COVERSTORY by Alicia Anderson

S ocial entrepreneurship is on the
rise and Raghu and Arathi Raju
are a striking example of this new by Alicia Anderson
breed of young, smart, idealistic
businesspeople. Raghu and Arathi are
founders of Mahamosa, a growing
tea, spice, and herb retailer.

What is a social
entrepreneur? A business
leader who is focused
equally on profits
and purpose. They
use business to create
social value, and they
are reaching into every
sector of the economy.

Raju is an energetic guy with a
Master’s degree in Public Health
and a law degree. He practiced contribute
as an intellectual property comes from, Raju says “It’s time for society
attorney, but wanted to go out to start thinking long-term, not short-term,
on his own to use his skills to do about business impact. Businesses need to
something positive in the world. play a stronger role in having positive impacts
His partner in the business is his wife, AND mitigating negative impacts like pollution,
a graphic designer with extensive design and climate change and declining public health.”
illustration experience. He says he’s always been
a highly-focused idealist – “maybe being an only What charities does Mahamosa support?
child has something to do with it – having more Raju’s background in public health led him
time to develop those ideals,” laughs Raju. to organizations like water.org, Oxfam, Save
the Children, and other groups who focus
They combined their skills and launched on humanitarian issues. They don’t yet have
Mahamosa as an online business in May, 2011. direct partner relationship with the charities –
The company sells loose leaf teas, spices, gifts “Organizations of this size prefer to establish
and wares, along with gifts such as teapots, partnerships with larger business than ours,” he
infusers, chocolates, honey sticks, and 100% says. Perhaps charities are missing an opportunity
organic cotton shirts. here? For now, the relationship is informal; Raju
makes a donation once a year to the charity of
They are committed to donating 50% of their choice.
profits to charity. Asked where this drive to


They have wisely branded their charitable efforts Raju says the company’s focus for 2012 is marketing.
with the “Being in the World” trademark, thus They have experimented with group discount
establishing a community that is set somewhat sites (such as Living Social) and found success in
apart from the business itself. driving business to the retail locations. “It’s not
for everyone,” Raju says of the group discount
The brand’s online manifesto states: promotions, “but it gave us valuable insights
We chose the phrase about our buyers and lots of visibility, so
“Being in the World” it worked for
because it describes not us.” They plan
only our individual being to expand their
but also our inseparable retail footprint
situation, connection by evaluating
and continuity with how they
the world around us. can get their
We explore, think products into
about, appreciate large grocery
and embrace stores, like Whole
internationalism/ Foods.
globalism, diversity, Boosting online
and multiculturalism. traffic is a major
We connect with and goal for 2012. They
help people connect are active on social
and be in the world. media, and have
The Being in the experimented with
World community search optimization
has no boundaries. on their website,
Our business is an experiment but the competition
in socially and environmentally responsible for eyeballs online is tough.
capitalism. We believe people, including
consumers, are motivated not solely by individual They know their market – Raju’s research tells
concerns but also by social and worldly concerns him his buyers are consumers who are new to tea
or causes beyond the individual self. Taking this drinking, and are overwhelmingly young women,
conviction to the retailing world, we believe 18 to 35 years old. He notes that while in the US,
consumers inform their purchasing decisions not only around 10% of people are tea drinkers, tea
only by cost but also a true concern for the world is the number two beverage worldwide second
around them. only to water. He acknowledges the wide variety
of competition his company faces – grocery store
Raju also helps mitigate negative impacts in teas, retail tea outlets, and other beverages,
his business by using only 100% biodegradable including coffee. But he believes in the quality
wheat straw cups and 100% recycled paper for of his product and a growing national focus on
everything from business cards to register tape. individual health will help boost the popularity of
The business made a major growth step in his teas.
October, 2011, when they opened retail kiosks in Visit the company at
two Atlanta malls. The Rajus are new to retail, so
there has been a learning curve, but the exposure www.mahamosa.com.
has been valuable to the young company, and
they have been able to provide jobs as a result.

15

INDUSTRYNEWS

Not-For-Profit...
with a

U sually, the line between not-for-profit and for-profit
business is fairly clear. Both types of organizations
make money; however, non-profits put the money
back into the organization in order to further the
group’s stated mission. For-profit businesses
distribute profits among shareholders or owners. by Alicia Anderson

Rebuild Resources is a little different. This St. Paul, MN-based contributions to provide services, we primarily use money made
non-profit helps its community by giving people a second from our businesses to create jobs to employ people who
chance at a productive life. But they also run businesses to receive our program services. We’re not just teaching people
employ these people – real businesses who compete with how to look for jobs, we’re giving them a job, they are paying
other companies and manage the same types of issues other taxes and contributing to their communities, so both they and
businesses have. the community can immediately benefit.

We recently visited with Joanna Schnedler, Development Leader There are some built-in inefficiencies with this model. We assist
and Janet Ludden, Interim President of Rebuild Resources, to people to gain skills and work experience to position them
talk with them about how Rebuild straddles the line between for permanent employment – so when our program succeeds,
doing business and doing good. the result is a production challenge. We intentionally lose our
best workers to our competitors. As a result, we have very high
Tell me about the mission of Rebuild employee turnover, which impacts our productivity.
Resources and how you accomplish that
mission. Just like any other business, we utilize creative business
strategies and production practices to overcome this challenge.
Our mission is to help recovering addicts and alcoholics be We have developed overlapping shifts, expanding operational
sober, self-sufficient and of service by providing meaningful, capacity and increasing machine hours. We have streamlined
transitional employment in business enterprises we own and operations and increased efficiency. As business grows, we will
operate .These enterprises provide a safe, sober, secure, add a full second shift.
supportive, but non-enabling environment for recovery, and
serve as the economic engines which sustain our work. Our It’s not a surprise when people leave us. We help them in their
businesses are a custom apparel and promotions shop, and a job search. We bring new workers in and get them oriented and
contract manufacturer. trained at the same time their predecessor is leaving.

What are the strengths of an organization How do you select participants?
like Rebuild who straddles the line
Prospects fill out an application and go through a competitive
between for-profit and non-profit? What
hiring process. We receive 400-500 applications per year, so
are the weaknesses?
we have a vast applicant pool. We can be selective in whom
Clearly our strength is that, unlike other programs who use we hire, but most of our participants have very little or no past


job experience and those are the people who most need our services. Most
of the people we hire have criminal backgrounds, which also makes finding
permanent employment extremely challenging. We are looking for people
who are committed to sobriety and committed to changing their lives, they are
the people who will succeed in the marketplace.

How do you market your organization?

Our continued goal is to reach 80% self-sufficiency from business revenue, with
just 20% of our funds coming from contributions.

So we have a two-pronged marketing goal. We need to advertise and market
to gain new contracts, and we also want to build awareness throughout the
community about our mission and program.

To build relationships with our apparel and manufacturing customers, we have
to be competitive in quality and price when we market to potential customers
for our business. We have a marketing director who sets the strategy, and
a sales force who actively engage with prospects. Along with traditional
marketing methods like using sales collateral and promotional materials, we
actively market on Google.

We have a diverse strategy for fundraising. We hold a golf tournament and
other local events. We also work to establish partnerships with government
agencies who can advocate for our programs. Strong advocacy within
the recovery community and the corrections community helps us create
relationships that help us achieve our mission.

How do you measure results?

Like most businesses, we know we are succeeding when our customers are
satisfied, are repeat customers, and send other businesses to us on their
recommendation. Bottom line business results and an ever increasing portion
of our overall expenses being met by business revenue are effective ways for
us to measure success. We have to prove to our customers that giving us their
business is the best choice they can make – and we can do that.

Showing a high ROI on contributed income is the very best way to continue
to get support from our donors. It is incumbent upon us to demonstrate both
business and programmatic success which advances our mission and meets
their philanthropic goals.

We also look at the benefits to society of our social enterprise model. The
work we do reduces recidivism, reduces the costs of incarcerating and
rehabilitating people, and adds to the tax rolls since we are assisting the
formerly-unemployable tax-paying, productive citizens. We have metrics that
demonstrate this incredible return on investment.

Also, we are happy to report we were recently recognized as the first
“Accredited Social Enterprise” by the Social Enterprise Alliance. We’re proud
that they have acknowledged our model of applying market-based strategies
to address social problems.

For more information about Rebuild Resources, please visit their
website at www.rebuildresources.com or their Custom Apparel and
Promotions webstore at www.rebuildstore.com.

17

INDUSTRYNEWS

Putting Corporate Money Where
the Meaning Is by Alicia Anderson

C hristine Arena began her career helping some of the least socially-minded companies
around (tobacco and liquor companies, fast food giants) target consumers and spread
their message. The award-winning author and strategist is now focused on helping industry
leaders win trust, inspire employees, and achieve triple bottom-line growth through
engagement with their customers and employees.

We recently talked with Arena about her experiences and what CSR (corporate social
responsibility) trends mean to businesses today.
What led you to explore and analyze growing demand. It’s a cause-effect situation: the more companies

corporate giving? strategically invest in social good, the more demanding
stakeholders grow, leading to increased investment - and the
In 2001, we saw the internet boom leading to more global awareness trend goes on.
of business behavior. My clients were getting into trouble on issues
ranging from labor standards to financial scandal. I recognized Corporate reputation also greatly influences the corporate talent

that the transparency demanded by consumers who were now pool. All companies are trying to attract smart people and attract

empowered by the Internet and increasingly socially conscious the next generation of business leaders. And how this trend

wasn’t going away – it was a permanent market condition. Going influences the Millennial generation is particularly striking. A Price

forward, companies would need to become more open and view Waterhouse Coopers study just showed that 88% of Millennials

transparency as an asset, not a risk. said they will choose employers who have corporate social
responsibility (CSR) values that reflect their own while 86% would
Now we’re in a phase in business where, in many cases, it’s clear consider leaving an employer if CSR values no longer matched
that collaboration and dialogue is more effective in terms of their expectations. So there you have it.
generating loyalty, momentum and trust than closely guarding
proprietary secrets. It’s an increasingly open business climate How do companies execute a CSR
and the demand for corporate social responsibility is still growing strategy correctly?
dramatically.
Firstly, the execution must be authentic, and must come from the

What is the business case for CSR? company’s leadership. For example, Lee Scott, CEO at Wal-Mart,
truly believes in sustainability as a path to improved business
The business case centers on public demand The Cone Cause- performance as well as a meaningful legacy. In an interview he
Evolution Study just revealed that 83% of Americans wish brands did with Grist.org, he said: “On a personal level, as you become a
would support causes, and that 41% have bought because of a grandparent — I have a granddaughter — you just also become
cause. More than 90% think companies should consider giving in more thoughtful about what will the world look like that she
the communities where they do business. inherits. So I think it was a confluence of both the personal side
and the business imperatives that at least drew me to be interested
Those numbers have doubled since the 1990s. Consumers insist
in it.” Wal-Mart has put massive sustainability initiatives in place
that corporations stand for something greater than short-term
throughout their business and has become one of the leaders in
financial gain. So CSR is no longer a fringe activity – now it’s
generating progress in this area.
integrated into mainstream businesses that consciously meet the


Businesses must also be strategic and focused. They have to know What are some other trends in engaging
the goals they want to achieve and how they relate to business and with communities to build brands?
their customers. Then they need to leverage core assets to make goals
happen. Cause-driven initiatives must be integrated into operations. Even just five years ago, businesses wanted everything to be a trade
For example, GE has renovated its business portfolio around emerging secret. Now, they need to be involved in the conversations and reflect
green markets, so it made sense to them to invest heavily in alternative that they are hearing customer feedback, and be transparent in
energy sources so they can help create sustainable development in handling both positive and negative information that comes back to
these burgeoning areas. them.

Also - you can’t be too transparent. Companies are closely scrutinized These days there’s a process of ongoing two-way interactivity,
now thanks to globalization and the internet. The power is in the hands participation and collaboration that can generate great ideas in
of the consumer. They need to talk when it’s meaningful, when there’s business. Great ideas don’t always come from inside a company. Our
an issue. Be constantly proactive in communicating so that you can economy is increasingly participatory, leaning toward new models like
build goodwill and trust in good times; don’t just start talking when crowdsourcing, games, social media and well-designed engagement
you’re under the gun. It’s too late then. experiences.

For example, Seventh Generation is a company that has always What would you advise small to medium-
positioned itself as socially responsible and transparent company. And sized companies who are struggling to do
for the most part they are. But sometimes even the best companies if they want to start giving programs?
experience setbacks. When the board fired co-founder and former
Real commitment can’t come from the CSR department. It has to
CEO Jeff Hollender, and then declined to meaningfully engage its
emanate from leadership to really permeate a culture. So start there.
stakeholders who wanted answers as to why, it left a big hole in the
Then, look at your peers. What are your peers focused on and WHY?
company’s reputation. So then the rumor mill started, which created
What issue stands to galvanize the people inside your company?
lasting negative press for them and likely demoralized the employees
People like to rally around a meaningful cause, but if the WHY is
working there. Unfortunately for them, there weren’t mechanisms in
missing, it’s hard to get people in the company behind it. So examine
place to respond to rumors, and legal took over. So everyone said
the real value the organization provides and what it is here to do for
nothing. That happens all the time. And I think it’s a missed opportunity
people.
to proactively be honest and build stronger bonds with people.

Also evaluate what you are trying to accomplish and determine the
best way to do it. Use your core strengths and assets where you can
make a huge difference – touching many people in a meaningful way,

“
so you can build value over time.

About Christine Arena Real commitment
Christine is Founder and Chief can’t come from the
Strategy Officer at Aiko, a big
ideas engagement agency that designs CSR department. It
for the needs of purposeful brands. She is has to emanate from
an award-winning author, syndicated blogger
and corporate strategist focused on helping industry leadership to really
leaders win trust, inspire employees, and achieve triple
bottom-line growth. In 2011, Christine was named a “Top
permeate a culture.
100 Thought Leader In Trustworthy Business” by Trust Across
America, an organization that provides a framework for companies to
improve trustworthy behavior, and highlights role models who exhibit high
levels of integrity. Read her blog at http://christinearena.com/category/blog/.

19

INDUSTRYNEWS
Top 3 Steps
to Greater
Warehouse
Efficiency

M
ost small to medium sized
businesses that work in a warehouse
environment would like to implement
a barcode solution in hopes that it will
solve every problem they have in their warehouse.
Unfortunately, barcoding isn’t a ‘be-all, end-all’
solution, but rather is the last step in a multi-step
process and overall commitment to efficiency.
by Theresa Boros
Before you consider implementing a barcoding
solution there are several steps you can take to get your warehouse in shape prior to automation. In this
article we will go over some options with you in hopes that they will assist you in getting your warehouse
to the level of efficiency you desire in the coming year.
Step #1: 3 Ideas for Organizing & Maintaining Your Consider Implementing Cycle Counts: Cycle Counting is a
Warehouse: More often than not, when we walk into a great alternative or addition to a yearly physical count. It is
warehouse, we notice that nothing makes sense. From bin a process with which you count inventory in regular intervals
locations that increase workload to picking methods that throughout the year which keeps your back-office systems
aren’t appropriate for the industry, there are many ways in more accurate than relying solely on an annual count. Many
which a company’s efficiency is being decreased by their who implement cycle counting often find that they can
current processes. If you suspect that your processes aren’t at eventually do away with the annual count altogether.
the level they should be, you may wish to:
Some ERP systems require you to freeze your inventory during
Revisit Bin Location Organization: You should consider counting, so many mistakenly believe that they can only do
reviewing the overall organization of your warehouse annually their counting if they shut down operations. However what
in order to maintain maximum productivity. If you have been you may not know is that you also have the ability to freeze
‘stashing’ new items wherever they fit for the last several years only certain product lines at a time while keeping others active
it is likely you are now experiencing decreased productivity which allows you to implement a cycle counting technique.
as a result. While it may seem like a hassle to re-organize There are two main types of cycle counting to choose from.
everything, consider the amount of time you’ll save when you You will want to choose whichever is more appropriate for
improve picking times. A good rule of thumb when organizing your industry.
your warehouse is to put higher volume items in the easier to
reach areas as well as in a location closer to your shipping Geographic based cycle counting involves starting at one
area (if it is appropriate to do so), and lower volume items in side of your warehouse and systematically working your
bin shelving further away. way to the other end. Doing this several times throughout
the year will not only enable you to keep inventory numbers
Take a New Look at Picking Methods: Examine your picking accurate throughout the year, but also discover misplaced or
methods and determine whether they are still appropriate ‘lost’ items as well.
for you. Keep in mind that there are many options to choose
from including: Single order, Multi-order, Batch picking, and The ABC Method refers to counting by the categorization
Zone picking of inventory. High volume items are handled more often
resulting in a higher likelihood of inaccuracies, while low
volume items are handled less leading to more accurate data.

About the Author
Theresa Boros is a Partner at Scanco. Scanco is a Master Developer and an OEM Partner of Sage focusing on Warehouse Management
Systems for MAS 90/200/500.


To implement the ABC Method you will first categorize your just isn’t enough. This is when you may consider implementing
entire inventory deciding which fall into the ‘A’ (high volume), incentives for the staff, rewarding accuracy or thoroughness –
‘B’ (medium volume), and ‘C’ (low volume) levels. You’ll count the metrics that are meaningful to your warehouse.
high volume items more often and low volume items less. Your
schedule may look something like this: Step #3: Implement Barcoding Automation: Before you
implement, or even look at a barcoding solution, you should
Level A – Count once per month -or- quarter depending on the make sure Steps 1 and 2 are complete and running smoothly.
size of the inventory Once you’ve properly organized your warehouse, implemented
the best picking methods and cycle counting techniques for
Level B – Count every quarter your industry, and established clear and disciplined manual
systems – you are ready for barcoding to take you to the next
Level C – Count every 6 months and highest level of efficiency. Specifically, it will help you with:
In each instance you’ll want to divide the stock up so that your • Increasing the speed with which you can input information
staff can complete a portion of counting every day or week to
keep it manageable. • Improving the integrity of your data
• Developing greater accuracy of shipments
Step #2: Implement Manual Processes and Increase • Enhancing employee productivity
Employee Accountability: Establishing, communicating and
enforcing specific warehouse rules and processes means you • And increasing the speed, efficiency and precision of your
are more likely to get more effort from your warehouse team and cycle / physical inventory counting process.
a cleaner process. However, sometimes simple communication

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21

BOOKREPORT
by Geni Whitehouse

T his edition of book selections are drawn from books I haven’t yet read. They come from speakers that presented talks at TED’s
Full Spectrum event which I had the privilege to watch via live simulcast at a parallel event called TEDActive. It is not easy to
take the essence of sometimes decades of research and boil it down to fit into an eighteen minute talk, but the speakers and authors
I list below were able to do so quite effectively. Their talks gave me a glimpse into subjects that I want to pursue further when I have
time to ponder.

I Thought It Was Just Me (But It Isn’t) | Brené Brown
Brené Brown is the perfect spokeswoman for vulnerability. She’s one of us. Her first TED talk, in which she
describes her own breakdown, is called “The Power of Vulnerability” and has already had more than 4 million
views. As a research professor, Brown has studied the balance between vulnerability and courage, between
authenticity and shame. But she has also lived it. She gives us hope that the very same imperfections that make
us shy and ashamed are the things that make us human. She tells us that we must be vulnerable and real if we
want to connect with people in a meaningful way. Brown freely shares her own insecurity in a lighthearted,
entertaining and yet very personal way. If her book reflects the same combination of humor and deep insight,
reading it will be a worthwhile and enlightening journey.

Alone Together: Why We Expect More From Technology and Less From Each
Other | Sherry Turkle
Sherry Turkle used to be a leading voice for the advancement of technology. But today she has begun to
question its impact on our lives. She shares insights into our automation dependency and makes the case
for humans to spend more time on relationships and less time on their devices. As we rush to rack up more
Likes and +1s we are forgetting to take time for more hugs, phone calls and plain old conversations. Turkle
is a voice of reason in a world of devices that lead us deeper and deeper into a binary world of ones and
zeroes. Whether you ultimately agree or disagree with her premise, this book promises to be an informative
and thought-provoking read.

Chip Kidd: Book One | Chip Kidd
Chip Kidd was the most memorable presenter of the conference. With his Captain Kangaroo
jacket and his hilarious presentation style, he stole the show. His gift is one that we can all envy—
he has the ability to convey the gist of an entire book in its cover. The need to convert words
to their visual essence is becoming ever more valuable as our storytelling shifts
from magazines, to blogs, to video diaries. We might all learn something if we
tried to convert our business story from a volume of financial reports, graphs
and spreadsheets into a single page. His book Chip Kidd: Book One shares the
stories behind his most successful covers and promises to give us insights into
telling our own stories. I can only image the gut splitting laughter that will be
part of this reading adventure. (This is one book I won’t be reading
on my Kindle.)

About Geni Whitehouse
A self-proclaimed nerd, former technology executive and CPA firm partner, Geni Whitehouse
has made it her mission to eliminate boring from the world of presentations. The author
of “How to Make a Boring Subject Interesting: 52 Ways Even a Nerd Can Be Heard,” Geni
believes her mission as a presenter is to understand a subject well enough to approach it
from an angle that will not only educate her audiences—but will resonate with them. Learn
more at www.evenanerd.com.


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23

CUSTOMERRELATIONSHIPS

Notes from a Month by Cortez NaPue
of Love and Alicia Anderson

In honor of Valentine’s Day, we recently asked our customers to tell us
their love stories – fun stories about how they show their love to their
own customers and their employees.

Here are a few of the stories they told us.

EXECUTIVE PRESENTATIONS SEVEN UP BOTTLING CO. OF RENO
Executive Presentations of Los Angeles really appreciates Mark Pitchford and the Seven Up Bottling Company
showing the love to their clients and employees. For of Reno, Nevada were recognized for their passion for
EP, it’s all about praise. They make sure their customers customer and employee recognition.
are appreciated by often running congratulatory ads in
major publications and they even go as far as to send Originally founded in 1905 as an ice cream vendor, it was
a framed copy to memorialize the client’s commitment founder Edward Chism’s entrepreneurial spirit that lead
and success. the Dr. Pepper/ Seven Up Bottling Company to what
is today. It wasn’t until 1929 that Edward introduced
Apparently, the key to their employees’ hearts is pizza. carbonated beverages to his line of products which
Susan Campbell at EP says that weekly pizza parties eventually led to the installation of the can line and the
help keep up efficacy but random gifts and bonuses transition from steel to aluminum cans. The Seven Up
don’t hurt either. Bottling Company has been showing the love to their
community by donating to many local schools and to
Since 1986, Executive Presentations has provided the Boys and Girls Club of America.
Southern California’s top lawyers with powerful and
effective courtroom presentations. Their consultants When asked what they do to show their customers the
analyze cases and help to determine the best way love, their response was “EVERYTHING and anything
to break down even the most complex information we can to make sure our customers feel as though
into concise exhibits that the jury will understand and they’re #1.” Sounds like they’ve got big hearts. How do
remember. they show their employees (and waistlines) that they’re
www.executivepresentations.com loved? Donuts.
www.7upbottling.com

GATOR CASES
We love Gator Cases for their dedication to
customer satisfaction and promoting a positive work
environment!

According to the survey they took, Gator
shows their customers the love by providing
them with discounts and special offers on days
such as anniversaries. Their employees love
them because of their weekly meetings where
employees receive cash rewards for stellar work.
And what song represents the love that Gator Cases
has for its employees and customers!?!? ’Count on
Me’ by no other than Whitney Houston and Cece
Winans – what a great song!!

Gator Cases, based in Lutz, FL specializes in making
protective storage devices for musical equipment.
www.gatorcases.com Creative Directors note: I own one of their cases and they
rock. (pun intended)
FUTURENET GROUP
Our hats go off to the FutureNet Group. The
FutureNet Group was founded in 1994 by Perry Mehta
whose ambitions drove him to provide a new kind of
technology solution for the construction,
engineering, and environmental
industries. With over $20 million
in annual revenue, FNG now OOH, READ
has over 100 employees and 4 THESE!
offices across the country.

When asked how they show their
customers love, their response
was that they always perform
at their best, making sure their
clients always look good. And
who doesn’t like to look good!? When
it comes to letting their employees know
that they love them, the folks at FutureNet
believe that recognition is key.

We asked what their biggest goal is for 2012. The
FutureNet Group’s resolution for 2012? 100%
customer satisfaction. Now, what’s not to love about
that?

www.7upbottling.com

25

Giving in t
by Cortez Napue

P
hilanthropy is not a new
thing. It’s been around
since… people had – well,
compassion. However, being
philanthropic in the age of web
2.0 is quite a bit different. A few years
ago, before the boom of social media, press
releases or advertorials were the way to promote
a nonprofit event or to advertise the success
of one. But nowadays, people aren’t so keen
on reading a newspaper ad about an event
and are far more adverse to see a business
blatantly bragging about how much money they’ve
raised for an organization. Here’s a few ways to socially
promote your cause while attracting the most positive attention.
Promote the Success of the Benefited Raise Awareness for a Cause Using Every
Organization, Not What You’ve Done – Marketing Avenue Possible - For local
With any message that goes out, whether it be events, taking ads out in local magazines or
a press release, e-mail, or social media post, the newspaper may work better for you. However, it
focus of posting the results of a fundraiser should would never hurt to maybe go through your list
emphasize more so the nonprofit’s own success of LinkedIn, e-mail, or even Facebook contacts
and perhaps reflect on how this will benefit their in the area who may be interested. Promote
cause. Headlining your own article with “J&J the event on your LinkedIn network frequently,
Automotive raises $50,000 for the American though be wary of over sharing in LinkedIn
Lung Association” may seem a bit like bragging. groups. Many people may start avoiding your
On the other hand, if someone else decides to posts which doesn’t help your social media
write an article or post with such a headline – that strategy in the long run. If raising money for a
is fine, as that is a genuine response from a third general cause, CPC (cost-per-click) ads might
party. It never hurts if someone else brags for you. not be a bad option, but depending on your
intended reach that could get expensive. But
alas….now we are in the age of social media…


SOCIALMEDIA

the Social World - Don’t Brag, Share
Social Media and Philanthropy are Best There are other ways to promote your cause on
Friends - What better way to get the word out Twitter by doing things like creating hashtags.
for a cause or non-profit event than using social For more help with that, read
media? The use of social media has increased our blog post about using Twitter
dramatically over the years, even hashtags by scanning the QR code
overtaking email in some instances to the right.
(scan the QR code to the right for
our take on the demise of email ).
The bottom line is, to successfully
There’s an urge for people using social media to promote a philanthropic cause, include
share ideas that they’re passionate about. Most as many people as you can. Social media
who are involved in a nonprofit are generally is the most efficient and effective avenue
passionate about their cause. With that being
for that. When you want to share with
said, the viral opportunity there is endless as
the world how much money was raised, it
again, people are more apt to share things they
like. And not to mention, it is quite cost-effective. is more of a grassroots, group effort (and
not a one-man show) – and everyone who
Social Ads Help! - The best thing about participated can be congratulated. And
creating social ads on Facebook and even chances are, someone’s already sharing
LinkedIn is that you can specifically target it for you.
individuals based on their
demographics and interests…
that is, other things they’ve
already ‘liked’ on Facebook.
Thus, you can design ads that
specifically narrow in on the
sentiment and interests of a
particular audience. While
you can’t exactly socially
advertise on twitter per
se, you can pay to have
a hashtag (#) or word
promoted (which is
potentially expensive).

27

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29

Doing More Than Good: Leadership in Business

Doing More Than Good: Leadership in Business

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