HR Tips to Avoid Legal Hassles with Immigration and Customs Enforcement

This includes strategies on how to respond to an ICE audit.

 

Employers have been having problems with the U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE).

ICE served 3,004 notices of inspection (NOI) in fiscal 2012. Alleged irregularities uncovered NOIs resulted in more than $12 million in fines and 520 criminal arrests – which included 240 human resources employees, business owners and managers.

Errors associated with Employment Eligibility Verification forms (Form I-9) can lead to civil penalties ranging from $110 to $1,100 per violation.

If an employer knowingly employing unauthorized workers can range from $375 to $3,200 for first-time violations. The penalty criteria: Business size, whether or not there was good employer faith, the violations’ severity, and whether there were previous offenses.

If you get an NOI, you have 72 hours to respond in-full.

NOIs mean ICE wants to see:

• Your I-9 forms for both current and recently terminated employees
• Payroll records
• List of current employees
• Information regarding the company’s owners

So perform your due diligence to avoid problems.

I-9 precautions:

1. If you think there’s any possibility of legal issues, chances are you will – see a good immigration attorney.

2. Use the approved I-9 form – As of May 7, 2013, only the March 8, 2013 version has been acceptable.

3. Make certain that new employees complete Section 1 before they start work. Complete Section 2 and the Certification by the end of the third business day.

4. Make sure you’re not trapped into a discrimination charge by making new employees give you more information than are normally required.

5. Don’t accept expired documents from an employee.

6. Before they expire, re-check any expiring work authorization documents – don’t allow any workers to continue in your employ if any are expired.

7. Don’t re-verify U.S. passports, Permanent Resident Cards or List B Identity documents.

8. Don’t keep I-9 forms in the employees’ files. For current employees, keep I-9 forms in a separate file. Keep a separate file for terminated workers.

9. On a regular basis, be sure to conduct audits on I-9 forms. Get your attorney involved on this. Fix any correctable errors, and initial and date adjacent to the corrections. Use the words, “Per Self Audit.”

Responding to an NOI

Not only do you have to be diligent in organizing your I-9s, you have to be very diligent in your response to an NOI.

Your response sets the stage for communication, and possible negotiations and a settlement with ICE.

If an ICE agent shows up at your office with an NOI, here are four strategies:

1. As in any business potential issue, prepare by developing a response plan. Meet with key employees who should be apprised of the significance of such a visit from ICE.

Again, you should have already contacted an immigration attorney so you can flawlessly execute your plan.

Here’s an example why only people highly skilled in communication should be receptionists:

When visiting your company, an ICE representative will likely engage your receptionist first. Assuming you sanction your receptionist to accept and receive important documents like an NOI, require the person to immediately notify you and/or your second-in-command and your human resources manager.

The attorney should advise you and take the lead. Otherwise, only a designated manager should have further contact with ICE. Again, you’ll be required by law to respond within three days – 72 hours.

2. Don’t be fooled by the pleasant demeanor of the ICE officer. Don’t be lulled into thinking the person is on your side. Don’t let the ICE agent trick you into saying something that could be used against you later. Assume the agent is there to build a case.

“U.S. Immigration and Customs Enforcement is the principal investigative arm of the U.S. Department of Homeland Security (DHS) and the second largest investigative agency in the federal government…ICE now has more than 20,000 employees in offices in all 50 states…” according to ICE’s Web site.

Be civil, honest, brief and thoughtful. That also means being careful what you say – like you would in a courtroom – don’t say more than is needed.

Don’t rush the process even if you’re confident. Take your full allotted time to respond. Your immigration attorney should audit your paperwork, and make any necessary and feasible modifications.

Additionally, your lawyer should help you respond by interfacing with ICE – for the audit and any extenuating circumstances.

Ideally, you have been thorough in your planning. However, if you’re unsure about anything mentioned in the NOI, it’s businesslike within the three-day period to ask for two things: Elucidation and confirmation of your request and ICE’s answer. (Again, your attorney should be involved.)

3. Paper trail…paper trail…and paper trail. Accuracy is vital and make certain you make a list of the information you give ICE.

The ICE audit won’t be conducted at your office. It will be on ICE’s turf – the government office. Like checks, consider giving the agent a carbon copy of your I-9 forms with supporting records. Then, ask for a receipt of your list and documentation.

Finally, keep careful notes of any verbal communication, and document all details in an e-mail or letter to ICE.

From the Coach’s Corner, more HR tips:

• Government Warns Business in Ruling Against Costco on Social Media Policy
• How to avoid EEOC Discrimination Suits
• Tips for Marketing Your HR-Policy Changes to Employees
• Management: 7 Tips for Success if You Must Lay off Employees 

“Diligence is the mother of good luck.”
-Benjamin Franklin

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Secrets in Motivating Employees to Offer Profitable Ideas

 

Savvy employers know how to profit from their human capital. Such knowledge is a powerful weapon for high performance in a competitive marketplace.

Furthermore, there’s a correlation among excellent sales, happy customers, and high employee morale.

Proverbially speaking, employees are where the tire meets the road. They daily experience firsthand a wide variety of problems – including dysfunction from vendors, shortcomings of software, aggravations of customers and poor intra-company communication.

Unfortunately, many companies suffer needlessly because their managers don’t have beneficial relationships and dialogues with employees so they can elicit profit-making ideas. Simply placing a suggestion box in the employee lounge won’t get the job done.

Typical obstacles to getting employee ideas: Employees don’t want to waste their time and energy. They don’t want to submit ideas only to have them fall into a big black hole. Others fear rejection and want to avoid it.

To eliminate such obstacles for profits, here are the five secrets in motivating employees to offer profitable ideas:

1. Train your managers in how to dialogue with your employees to elicit ideas. The training should be comprehensive – from listening and getting to know their workers – to taking action when an employee tests the waters and volunteers an idea.

2. Develop and implement programs to enhance employee morale. Market leaders promote healthy morale because – it goes hand-in-hand with good communication and propels profits.

3. Provide self-improvement training as it relates to job duties. For example, do you have employees who fear public speaking? This is significant as an indicator because people are consistent. If they’re too fearful to speak publicly, they’re usually poor communicators with their team members, and they’re too afraid to identify opportunities and share them with you. There are ways to stop stressing in communication and to improve communication with others. 

4. Explain your vision and business direction to workers. They need to know your company’s vision, including business opportunities and threats. Explain to employees how their roles fit in the big picture and how operational costs affect the bottom line.

5. Launch an all-out initiative to promote a partnership with workers. Leading employers partner with their employees to accelerate profits.

Once you’ve accomplished these five steps, it’s important to follow up. Employees need to be recognized and appreciated.

However, if an idea isn’t feasible or needs to be modified, delicately explain why. The last thing you want to do is to damage the progress you’ve made in employee engagement.

From the Coach’s Corner, here are related HR strategies:

• 13 Management Tips to Solve Employee Absenteeism 
• Four Tips to Motivate Employees When You’re Facing Adversity 
• 15 HR Strategies to Improve Your Business Performance 
• HR Management – 8 Best Practices in Employee Delegation 

Knowledge speaks, but wisdom listens.

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry. 

 

Do Mid-Level Managers Feel Like Monkeys?

 

Middle managers ostensibly have something in common with monkeys. “Seriously?” you’re probably thinking.

Well, research has drawn a possible link between the stress of certain monkeys and that suffered by middle managers – both have high anxiety from pressures brought by others – above and below them. This is according a report by the universities and Liverpool and Manchester in England.

“People working in middle management might have higher levels of stress hormones compared to their boss at the top or the workers they manage,” says lead author Katie Edwards of the University of Liverpool.

“These ambitious mid-ranking people may want to access the higher-ranking lifestyle which could mean facing more challenges, whilst also having to maintain their authority over lower-ranking workers,” Dr. Edwards explains.

Monkey business

The 2013 study shows monkeys in the middle of their social pecking order suffer the most stress. The reason is social conflict from higher and lower levels in the hierarchy. Hence, the researchers draw a comparison with mid-level managers.

The researcher at Liverpool’s Institute of Integrative Biology spent nearly 600 hours watching female Barbary macaques at Trentham Monkey Forest in Staffordshire, according to a press release. Her research involved monitoring a single female over one day, recording all incidences of social behavior.

These included agonistic behavior like threats, chases and slaps, submissive behavior like displacing, screaming, grimacing and hind-quarter presentation and behavior such as teeth chatter, embracing and grooming.

Does this sound like your office?

Relaxation technique

“Not unsurprisingly we recorded the highest level of stress hormones on the days following agonistic behavior,” adds Dr. Edwards. “However, we didn’t find a link between lower stress hormone levels and affiliative behavior such as grooming.”

Social hierarchy was the reason.

“What we found was that monkeys in the middle of the hierarchy are involved with conflict from those below them as well as from above, whereas those in the bottom of the hierarchy distance themselves from conflict,” says Dr. Susanne Shultz, a Royal Society University Research Fellow in the Faculty of Life Sciences at The University of Manchester, who oversaw the study.

“The middle ranking macaques are more likely to challenge, and be challenged by, those higher on the social ladder,” adds Dr. Shultz.

So, if you’re a mid-level manager, all of this probably sounds familiar.

From the Coach’s Corner, if you need to eliminate some stress factors, here’s a myriad of solutions: 

• 30 Time Management, Stress Reducing Skills
• How to Deal With an Oppressive Employer
• 13 Management Tips to Solve Employee Absenteeism
• 8 Career Tips to Unlock Your Potential as a Leader
• Is Your Career Stalled? Turbo Charge Your Personal Brand
• How to Manage Your Boss for Better Performance – for Both You and Your Company
• 10 Key Differences between Leaders and Managers 

Stress: The confusion created when one’s mind overrides the body’s basic desire to choke the living daylights out of some jerk who desperately deserves it.

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry. 

 

Tips for Marketing Your HR-Policy Changes to Employees

 

So you’ve identified workplace policies that need to be updated. But you want your policies to be accepted and followed by your employees.

Employees are often uncomfortable with change even if it’s seemingly drastic but necessary for a business turnaround.

You might recall the hysteria over Yahoo CEO Marissa Mayer’s telecommuting ban. It was controversial but her decision is a positive model for struggling companies.

For a successful transition, do your research in order to be prepared. You don’t want unnecessary morale issues or legal hassles. It’s true that high morale among employees propels profits.

When changing policy, here are tips to consider:

1. Evaluate how your current policy is working.

Ask yourself: Is it a feasible, legal policy for the welfare of your business? Even if a policy promotes a company’s welfare, a successful company can sometimes encounter unforeseen legal hassles. For example, the federal government warned business in its ruling against Costco on its social media policy.

Other salient policy questions to ask: Is it consistently being applied and utilized? Does it yield the desired results?

2. Garner opinions.

A survey of attitudes is helpful. How do your key employees feel? Don’t worry if there isn’t universal agreement.

3. If you conclude that a policy change is necessary, anticipate any complaints and questions.

Prepare for the likelihood your employees will have concerns. Anticipate what their concerns will be. They’ll want to know how they’ll be affected.

So lay a foundation for success by prepping your managers. Give them a list of “frequently asked questions” (FAQs).

Make sure managers know to be accurate and consistent in communicating with employees. You don’t want one manager giving a set of answers only to have another supervisor giving different explanations. Consistency is vital.

4. When you announce a policy change, explain the big picture.

Enlighten your team on why a change is needed. Employees might not agree, but they will be more inclined to accept the policy change.

Oh yes, try to use humor whenever possible. It will make for an easier change in policy.

5. Be definitive and make sure policies are implemented properly.

Chances are some employees aren’t aware of all your policies. That needs to be corrected.

When you change a workplace policy, do whatever training is necessary – starting with your management team. Then, work with the rest of your staff.

Make sure the policy is consistently implemented and followed. You’ll lessen the likelihood of “buyers’ remorse” among your employees.

Conclusion

Use these principles to enhance your odds for a successful transition. You’ll lessen the likelihood of “buyers’ remorse” among your employees.

From the Coach’s Corner, here are more management/HR articles:

• How Not to Worry about Keeping Your Top Employees 
• 13 Management Tips to Solve Employee Absenteeism
• HR Management – 8 Best Practices in Employee Delegation 

“Good management consists in showing average people how to do the work of superior people.”

-John D. Rockefeller

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

HR Management – 8 Best Practices in Employee Delegation

Avoid frustration in delegation. Save yourself time and develop your staff for the welfare of your organization.

 

Delegation is a fundamental driver of organizational growth. Managers who are effective in delegation show leadership. They know they’ll be more effective in management and that they’ll develop their employees.

They inspire employees with competence and dedication via delegation. They motivate in such a way that employees accept the responsibility, and perform their duties with authority and efficiency.

Unfortunately, many managers don’t delegate effectively. Perhaps they don’t understand the benefits of delegating.

Their work pressures are alleviated and they’re not bogged down in minutiae. They have time for the big picture and for honing their managerial skills.

Not to belabor a point, but this means the organization will benefit, too.

Good employees welcome and benefit from the challenge of increased responsibilities. Their motivation and workplace engagement are enhanced. And they appreciate opportunities to grow.

Understanding why managers procrastinate on delegating

An organization that has managers who fail to delegate is an indicator of workplace culture dysfunction.

Harried managers think they can perform tasks better and faster. Usually this means they lack confidence in their employees, and ironically they suffer from self-esteem issues themselves.

Typically, such a manager claims it will take too long to train employees to perform a new task. Perhaps that’s true to a certain degree. But a good manager is mindful of short term and long term benefits from developing the staff.

Procrastinating managers are fearful. By keeping their employees from developing, such managers believe they’ll keep their authority and job. But good managers know productive employees will be more satisfied in their work and will push them up the ladder.

Here’s a step-by-step guide:

1. Analyze everything on your plate. Reflect on ways to clear the table. Track your time on what’s productive and what isn’t. Prioritize.

2. Prepare to document everything for a paper trail. You need a clear picture with documentation in your planning to delegate.

3. Identify the project. Prioritize objectives and a timeline. Determine what resources will be needed to achieve success.

4. Determine who is qualified to perform the task. Assign the right person or team for high performance and to enable you to track and oversee the delegated work. A key element is to insure there’s trust with your employee – good communication – listening and hearing.

Employ the acronym, SMARTER –

• Specific
• Measurable
• Agreed
• Realistic
• Timely
• Ethical
• Recorded

5. Meet with the employee and communicate the assignment. Discuss why it’s important, your expectations, freedom of latitude, and how the employee can make a difference. Be sure to discuss sensitive matters – policy, politics or protocol of confidentiality.

6. Don’t micromanage. Show support. Ask the employee for input on the task. Empower your employee to strategize and plan the approach. Schedule times to watch the work evolve and to meet with your employee to review progress. Coach the employee when necessary to prevent problems.

7. Communicate with your boss. It’s important to keep your supervisor in the loop.

8. Continuously communicate with the employee. Continue to ask open-ended questions to see to it that the employee is focused. Consider all options and possible returns on investment of the person’s time and efforts.

And when the project is completed, recognize your employee’s success and celebrate.

From the Coach’s Corner, here are editor’s picks:

• Profit Drivers – How and Why to Partner with Your Employees
• Acting, Speaking Coach: How to Improve Communication with Others
• Small Business – Easy Ways to Boost Your Employees’ Morale
• Strategies to Succeed as a New Manager – a Checklist
• 10 Key Differences between Leaders and Managers 

“Never tell people how to do things; tell them what to do and they will surprise you with their ingenuity.”

-George S. Patton

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry. 

 

4 Strategies if You Fear Missing Year-End Forecasts

How to strategically manage a financial crisis

 

Are you sweating over cash flow? Are you losing sleep over the prospect of missing your annual goals?

Well, if so, certainly you’re not alone. Many business owners and executives have suffered from the same anxiety. But fear can be a great motivator for success.

The first four things to do:

1. Even though you’re facing the big problem now, don’t throw the baby out with the bath water. A characteristic of successful businesspeople – they don’t panic in the face of adversity. They see problems as opportunities for growth.

Take some deep breaths and repeat these truths:

• “No matter what, there are no big deals – no matter what.”
• “This, too, shall pass.”

Next, here’s an important point: To improve your profits, don’t impulsively take short-term actions that will destroy your foundation for the long term.

Many businesspeople make critical mistakes when they suddenly slash marketing budgets, lay off talented workers or cut research and development. These expenses might appear to be expendable, but don’t do it in a rash manner.

They are all intangible assets. Slashing them will diminish your long-term prospects. Learn how to work smarter, not harder.

2. Focus on short-term profit initiatives. Consider that for every problem, there are 10 possible solutions.To use a sports metaphor, defend your business with a strong offense.

Query your customers and their customers to search for sales opportunities. Launch an all-out marketing offensive in public relations and social media. (If you can, a secret to success in a weak economy is to expand marketing.)

Hoard your cash. Cut all fat (not the muscle of marketing, human resources and R&D). Implement shorter work weeks and cut all temp assignments.

Do these things and you’ll get into a positive mental zone, and you’ll suddenly find that you’re developing additional solutions.

3. Continue to analyze and strategize – prevent mistakes. Many companies don’t have a clear picture of their situations. They complacently assume that they do, but most don’t.

Consequently, nine out of 10 fail because they self destruct – not because they’re defeated by competitors. This is true in any sector.

Early-stage companies fail because they try to grow at a pace inconsistent with their capabilities. The term for it is “premature scaling.” Don’t accelerate unproven ideas unless you’ve done enough homework. Otherwise, you’ll accidently make matters worse.

For more explanation on premature scaling, see the reasons why startup companies fail and how to win.

4. Figure out how you can operate leaner by engaging your employees. On a daily basis, your employees are where the tire meets the road. For profit drivers, partner with your employees. 

Use the proven eight strategies when sales drop and costs cut into your profits. 

See the five free tools to operate and market your business.

From the Coach’s Corner, here are related resources:

• Why Kaizen Philosophy Works in Lean Principles for Business and Public Sector
• When Should You Develop an Exit Strategy? Now…Here’s How
• Step-by-Step Solutions for a Company Turnaround
• Need PR, But No Budget? Here’s How to Leverage News Media

“Behind every successful man is a woman, behind her is his wife.”
-Groucho Marx

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

13 Management Tips to Solve Employee Absenteeism

 

Absenteeism causes migraines for a lot of bosses. Obviously, your company will make healthier profits, if you don’t have an absenteeism problem.

Check your attendance records. Monday is the most-abused day of the week and January is the worst month for absenteeism. For good reason, employers often cringe because they distrust the reasons some employees call in sick.

But it’s crucial to be open-minded and to consider the perspectives of your employees.

Absenteeism is a red flag that your employees aren’t fully engaged in their work. They often feel a lack of support from management, and are frustrated with a lack of tools and resources that limit their performance.

This typically results in inefficiency or minimal productivity, high turnover, increased costs in sick pay and replacement employees, and customer dissatisfaction.

Further, high absenteeism is one of the five prime indicators that your workplace environment is toxic.

The other four indicators:

• Your employees aren’t recommending your company to their friends as a great place to work.
• Employees with the highest absenteeism usually lack friends among their coworkers.
• Workers don’t actively support your customer-service initiatives – usually because they don’t love their jobs.
• Your customers aren’t fans of your company, and customer feedback doesn’t meet your expectations.

Manage the problem

Here are 13 tips to manage absenteeism:

1. Start by making sure your efforts don’t lead to legal problems. In this litigious society, it’s important to avoid EEOC discrimination suits.
2. Train your managers. True, they need to know your legal obligations. But train them in employee engagement, and how to deal with disgruntled workers.
3. Remember the phrase, “Let it begin with me.” It’s important to make certain that you’re perceived as an effective leader, not just a supervisor. Lead by a disciplined example. There are 10 key differences between leaders and managers. Remember leaders continuously upgrade recruitment procedures.
4. Evaluate your culture. It’s not easy to develop a culture in which everyone is on the same page. But you must in order to succeed. (There are six steps to implement a cultural change for profits.)
5. Understand the root causes and the gravity of the problem. Is it with just one employee or is it widespread among your workers? Try to be patient with individuals. Personal problems are often factors, as are long commutes to work. Carefully recruit workers who live fairly close to the workplace.
6. Incentivize fewer days off. It’s not always necessary to pay higher wages. Strangely, less-efficient workers take fewer breaks. So encourage them to take breaks and socialize with one another.
7. Everyone needs a vacation to avoid stress and health problems. Create an annual leave policy and enforce it. That includes not allowing employees to cash out their vacations.
8. Clearly indicate a policy that complies with FMLA. But you can legally take steps to make certain it isn’t abused, for example, require a doctor’s confirmation for any leave.
9. Double-down on efforts for employee engagement. Listen to your staff. Let employees know you care about their welfare, and that you appreciate their dedication to the organization. Generate more profits by partnering with your employees.
10. Discuss operational costs – the link between their attendance and productivity. Explain how their roles affect the success of the organization – from teamwork and morale to customer satisfaction.
11. Make work fun. Reduce boredom with job enrichment, rotation and cross training.
12. Be flexible. Try to accommodate special requests or scheduling.
13. Celebrate business successes with your team. It’s great for team-building.

From the Coach’s Corner, see these related links:

• Small Business – Easy Ways to Boost Your Employees’ Morale
• How You Can Eliminate Destructive Conflict for Better Teamwork
• Workplace Bullies May Hurt Retention of All Employees, Not Just Victims
• How Not to Worry about Keeping Your Top Employees

The leader follows in front.

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry. 

 

HR Study Reveals Challenges for Management in Teamwork, Culture and Diversity

 

Isues have come to light for managers who want profits by achieving maximum teamwork and workplace cultures. A human resources study shows 40 percent of men and women don’t want to work on projects with the opposite gender.

A three-year global study of 60 big companies by Innovisor, a Copenhagen firm, published its data in 2012 involving 5,000 workers in collaboration and influence.

People tend to collaborate with people they have a sense of similarity with,” says Jeppe Hansgaard,  the managing partner at Innovisor. “It’s human nature.”

Immediate supervisors weren’t included the study because they are most often men, and the majority of employees prefer not to work with their bosses.

The 60 companies were in 29 nations, which included the U.S., Australia, Brazil, China, India, and the U.K.

Mr. Hansgaard makes an obvious point for managers. He says they “need to be aware of the barriers that exist within their own organizations.”

“We prefer to collaborate with people who look just like us,” he adds. “That’s a management issue, because you want your employees to collaborate with the right people, not just people who look like them.”

He believes such employee biases aren’t obvious – they’re not observed by managers. Bosses often don’t assign teams. The collaboration is decided by employee biases. It shows a lack of employee self-esteem and leadership strategies and employee respect.

That hurts business performance.

My sense is the study’s results indicate the need for employee-teamwork training managers to upgrade their skills and to implement a cultural change for profits. Such companies should better manage collaboration and encourage more inclusionary diversity. As a result, employee confidence will increase for the enhancement of teamwork and overall business performance.

From the Coach’s Corner, here are more management tips:

• 20 Tell-Tale Signs – If You’re Under-Performing as a Manager
• Human Resources – Power Your Brand with Employee Empowerment
• Human Resources: 4 Reasons Why New Managers Fail
• Strategies to Succeed as a New Manager – a Checklist 

 “Skill and confidence are an unconquered army.”

-George Herbert

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

CES: Best Business Strategies to Get Tech Funding

 

Jan. 24, 2012

If you have a tech startup looking for funds, you already know the competition is intense. But there are strategies that will help you to get funded. Investors revealed their preferences for funding technology firms at the 2012 Consumer Electronics Show (CES) in Las Vegas.

On her blog, the chair of the CES venture capital panel, Joey Tamer, writes “each early stage fund planned to invest in a Series A for four or five new early stage companies during this year.”

When she’s not chairing venture panels, Ms. Tamer is an outstanding Los Angeles-based strategic consultant to technology and media (www.joeytamer.com).

“In the case of Jerusalem Venture Partners, Yoav Tzruya reported that this number represents no more than 1 percent of the 600 companies JVP reviews each year for its early stage fund,” says Ms. Tamer.

“Kevin Spain of Emergence Capital which has a focus on B2B applications, and Chris Petrovic of GameStop Digital which is a strategic investor/acquirer of game companies, as well as Habib Kairouz of Rho Capital agreed with the plan for four to five new deals this year,” she adds.

Improved environment

“We are in a boom period again, this time for the number of early stage companies in play in the market,” Ms. Tamer explains. “The continuing trend that allows for new technologies and applications to be built with many off-the-shelf tools, using world-wide technical expertise, for much less capital, has created many new companies competing for the funding resources available.

“The new trend of incubating companies in accelerators has added some seed capital to these concept-companies to get them through their initial product development,” she says. “But then these companies need to get some traction in the market, hopefully to significant revenue, before they can hope to move from seed capital to Series A.”

Optional strategies

Ms. Tamer indicates you have options to consider if you can’t get from seed to Series A or from Series A to Series B.

“Early stage companies not attracting that critical Series A or Series B funding should consider connecting strategically or through acquisition or merger with other similar-stage companies to create a stronger offering for funding,” she advises. “Aligning with other early companies that would enhance your market position or extend your product offerings or brand, you might attract that essential next stage of funding.”

She explains a developing trend.

“Kevin Spain added a new point, that he sees a strong emerging trend in B2B and enterprise applications using the new technologies that are mostly focused on the consumer market now,” she writes. “He advised companies to look for those B2B market opportunities for their current B2C products and applications. A doubling of your target markets, which rise and fall under different economic conditions, may present a strong offering to investors.”

She explains the motivation of two investors.

“Scott English from Hearst and Chris Petrovic of GameStop approach their investments as strategic additions to their portfolios, rather than as pure venture investments –even though each has a different priority for these investments,” she explains.

“The first point made was to conduct your due diligence about how strategic investors value their target companies,” Ms. Tamer says. “Hearst, for example, is a later stage investor focused on financial ROI to Hearst first, and strategic value to the portfolio second. GameStop, focused on early stage game companies, values its acquisition targets first as an operational addition to its portfolio plan (does the company add to GameStop’s infrastructure, product mix, learning about new markets, or strategy) before financial and ROI considerations.”

She explains some lessons:

1. Do your homework about your company’s “fit” with what an investment group might be seeking.
2. Talk with other companies in the investor’s portfolio.
3. Narrow down your list and your efforts to those investors that prefer your company’s stage, market sector, and your possible enhancement of their portfolio’s current companies.
4. Some strategic and corporate investors function very much like venture capitalists, and others have different priorities. So, after your due diligence, and as you enter discussions, read the deal’s restrictions and the detailed legal conditions before negotiating or accepting any investment.

Critical factors to help you win

“Norm Fogelsong of Institutional Venture Partners, a later-stage venture fund, insisted that your company’s vision must be big, very big, to attract the rounds of capital needed to become a major player,” she points out.

“The panelists agreed that they are very focused on execution, in particular execution on market penetration,” Ms. Tamer advises. “After you have been funded on your product’s unique value, it is time to turn your attention to your market, especially your customer acquisition and retention strategies, tactics and results.”

She provides another insight: “Yoav related that he looked for CEOs with deep market savvy, a founder who knows his or her product and its market realities, and has a strong go-to-market strategy.”

Ms. Tamer shares the insights of Sharon Wienbar of Scale Venture Partners, a later stage investor, who wants to minimize risk three ways:

• Proof of market responsiveness: Does your customer commit to your vision of your product’s value, price and use?
• A business model that prioritizes customer acquisition and retention: Do you have a plan that acquires each new customer quickly and for less and less cost of acquisition?
• Compelling metrics: are your projections for market penetration, growth and profitability backed up by proven metrics?

“So, amid the growing competition for capital we are seeing this year, particularly in the consumer market, investors’ focus seems to move quickly from unique technologies and applications to strong execution,” concludes Ms. Tamer. “Early stage companies need strategies to present compelling offerings to investors, and an increasing focus on market execution that leads to growing a big company and taking significant market share.”

Hope you enjoyed these insights. As usual, Ms. Tamer speaks and writes with authority.

(Note: I’m very familiar with Ms. Tamer’s expertise. She is a fellow member of Consultants West, www.consultantswest.com, a roundtable of veteran consultants in the Los Angeles area.)

From the Coach’s Corner, here are more of Ms. Tamer’s valuable insights:

How To Get More Opportunities As A Guest Speaker

How To Obtain The Most Profit From Speaking Opportunities

6 Values for Financial Protection

Options to Navigate This Marketplace Bedlam

What Should You Divulge When Asking for Investment Capital?

Downturn Survival

Leadership

Eight Strategies to Consider Before Starting A Tech Business

What No One Tells You about Raising Investment Capital

“If you can dream it, you can do it.”

-Walt Disney

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

RIM Provides 9 Lessons in Best Turnaround Strategies

 

Updated – Nov. 5, 2012

RIM, Research in Motion, needs more than just advertising and marketing strategies. Companies – from big to small – can learn business turnaround lessons from RIM’s predicament. RIM has failed to respond to marketplace changes.

Rim has been losing market share in the private and public sectors.

Despite installing a new CEO, Thorsten Heins, and hiring a vaunted crisis management firm, Sitrick and Company, RIM’s comeback attempt got off to a poor start.

Analysts, investors and customers were troubled by the headline: “New RIM CEO says drastic change not needed.”

Numerous published reports quoted Mr. Heins: “I don’t think that there is some drastic change needed. We are evolving … but this is not a seismic change.”

To the contrary, my sense is that drastic changes are needed – externally and internally. Unless the company can upgrade its products, solve its product delays, and fix its reputation, the company will go under unless it’s sold. (Note: To be clear, I’m a long-time Blackberry user.)

Yes, RIM has marketing challenges. But as any savvy salesperson knows, it’s difficult to sell a product that’s considered inferior to competitors. Apple’s iPhone and iPad, and Google’s Android operating system have taken market share from RIM, which is why the once-proud company has also lost market value.

RIM’s demise provides these turnaround lessons:

1. Understand first things first. It’s important to move current product inventory, but simultaneously make long-term product development a priority. The company needs effective decisions. There are nine dos and don’ts for best decision-making. RIM will earn praise if it can unveil a strategic plan to publicize successful development of software for its Blackberry 10. So strategically plan and implement management strategies for a successful turnaround.
2. Develop a strategic marketing plan and align it with sales. Notably, RIM is looking for a new marketing director. Hopefully, innovation will result. Consider tips to get strong marketing plan results, and the 14 reasons why major marketing campaigns fail. And for profits, don’t forget to align marketing with sales.
3. Attract visionary product-creation relationships. It’s important to stay atop marketplace volatility. Hire or partner with visionary innovators. RIM lost ground because it didn’t have enough developer support, which opened the door for competitors. Think about nine key questions before you form a partnership and here the nine steps for strategic alliance success.
4. Create an iconic product. Innovation is key to be a Ninja innovator. In RIM’s case, the company should create excitement by intensifying its research and development for a blockbuster smartphone – bigger screen, 4G, and better camera.
5. In view of the economy, remember Henry Ford’s success. A salient reason Mr. Ford was successful: He manufactured an everyday car – the Model A – a car the average American could afford. Think 1930s for business success. Consumer attitudes are changing. RIM used to own the corporate market and didn’t create a consumer niche. It needs regain corporate market share and its own version of the Model A for the digital phone age.
6. Restructure the team. If Mr. Heins really believes drastic change isn’t necessary, he better wake up quickly and reverse course. He should make certain he employs a lot of thought leaders who serve as devils’ advocates. RIM needs to earn marketplace confidence by exploring and communicating all its strategic options. Unfortunately, it appears RIM needs to take the six steps to implement a cultural change for profits.
7. Operate profitably. Develop a laser focus on profitability. Understand in any economy, what drives your profit. Here are 10 basic tips — leadership for business profit.
8. Continue to focus and promote security. Daily, the media is filled with headlines about identity theft and security. Blackberry is known for its security, but the message has been diluted. Android is successful despite its security weaknesses. After all, who profits from Android’s security issues? Not users.
9. Manage your reputation. The key is to create positive images. But RIM is suffering in reputation management.  Here are the best practices to optimize your brand and manage your Web reputation. It’s also vital to know how to leverage the news media for publicity, and to implement PR  crisis management tips.

From the Coach’s Corner, here are developing trends and solutions for manufacturing success.

“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”

– Peter F. Drucker

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

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