The Sinister Simplicity of Silent Evidence

Epistemology. What a great word. I interpret it to mean “How do you know that you know?”

We are sure of so much, but how do we really know?

As I have discussed in previous articles, our maps of the world are largely made up of distortions, deletions and generalizations. This article will discuss what we delete from our maps and how that can really hurt our business.

The sinister simplicity of silent evidence is this; the silent evidence we ignore may in fact be the most important information.

An Error in Our Thinking

A quick scan of the news will tell us, The current unemployment rate is 8.9%. GM and Chrysler are bankruptcy and massive layoffs are eminent. The economy is collapsing around us. Banks and businesses are failing at an alarming rate.

Definitely the stuff of headlines. Are we to assume that breadlines are in our future? Certainly there appears to be a preponderance of evidence that the economic end is near. But is it really?

This is a classical error in our thinking. Think of it as a signal-to-noise ratio. There is all this information around us (call that noise) but the focus and emphasis is on the economy (the signal). In this case the signal to noise ratio is very high and we can’t seem to ignore the bad economy. Because of the strong signal (bad economy) we filter out all the noise (other news, facts, possible opportunities).

When it comes to good news, opportunities and rational thought, the silence is deafening. So as our heads get filled with gloom and doom, our maps change. We stop seeing opportunities. Our cynicism clouds our judgment of opportunities that do present themselves.

Personal Anecdotes are More Powerful Than Statistics

Interestingly, personal anecdotes tend to cloud our perspective more than facts. Someone who has a close friend or family member that has lost a job, will “feel” the economy is worse than someone who has no such influence. If you explain, that 91% of the people are employed, that does little to raise their view of the economy.

Imagine you are talking to a friend about a new restaurant you want to try. Your friends tried them once and were dissatisfied or someone got sick. Now, what means more to you, your friends experience or reading a review that 88% of customers are satisfied with XYZ restaurant?

Or think about applying for a job or trying to attract new business; how many times are we rejected, not because of what we do say, but because of what we left out. Since the employer / customer did not see it in our presentation, they assumed it (whatever that is) does not exist.

How the Silence can Hurt Our Businesses

Our own tendency to ignore the silent can hurt us in many ways. This often manifests in the “I doubt this will ever happen to me” syndrome. For example, “I’ve never been sick therefore I am healthy.”

Here is one example from our files. We kept telling one of our customers that their hard drive was about to fail. We even provided the data. But the IT manager was busy and felt the hard drive had been reliable, so it could wait. Less than a week later it failed.

Here is another example of expensive silence. Often managers assume their networks are backed up and have strong security just because they do not hear otherwise from the IT department.

Is that always true? Maybe. Maybe not.

Recently a disgruntled ex employee reported their company for using unlicensed software. It was a huge expense for the company to pay the penalties and come into compliance. All of which the CEO could have avoided if he had regular, independent reports showing the health and compliance of his network.

So what are your stories? How have your customers benefited from doing business with you? Those are the anecdotes that will be more persuasive than generic business or marketing statistics. Do you have true stories about customers that suffered because they chose another vendor?

To succeed, you need to increase the signal to noise ratio of your message and that requires a couple of things.

First, you have to know the emotional drivers for your customers. What events, actions or circumstances are a threat to them? Will a business process failure ruin their business or cost the job of the person responsible? Speak to those issues, and your signal gets much stronger.

Remember, decisions ultimately involve emotions. Data and statistics only serve to justify the decision. Appeal to your prospects emotions, then give them all the data they need to support choosing you as the solution.

As I mentioned in previous articles. People don’t care what a product or service is. What they do care about is how does that product or service satisfies an emotional need. People don’t buy marketing services just for fun. And, they don’t care what method you use . . . they just want more customers or a better business image.

We’ve all heard benefits are more important than features. Features are noise, benefits are signal.

But this goes beyond that. This is about understanding the desired result, independent of the method. For example, people generally own cars to facilitate transportation because that is the common solution. But if you were selling futuristic matter transporters that could get someone from point A to point B in a fraction of a second at the same cost, do you think they would choose the automobile?

Tips for improving your signal to noise ratio.

• Know what is important to your customer on an emotional level for the decision maker.
   
• If what you are saying is not effective, what should you be saying?
   
• Identify what you assume your customer already knows, then make some effort to state/reinforce the obviously important.
• Ask the customer to explain their business goals, needs and wants. 
   
  Engage them on their turf. Let them explain to you their excitement and worries about being in business.
   
• Don’t let the customer’s silence about problems or needs convince you they don’t have any. Draw them out.
   
• Don’t allow yourself to shrink into irrelevant background noise by selling when you should be listening. 
   
• Lower your personal signal to noise reception. Don’t increase your buying or rejection signals by assuming you fully understand what your customer is saying.     Ask clarifying questions.

Be Positive

Some food for thought regarding business failure rates around The Great Depression.

• 1% business failure during prosperous pre-depression years 1925-1929
   
• 1.3% business failure during deep depression years 1930-1933
   
• .2% averagebusiness failure during the 1940’s
   
• .4% -.5% during the 1950’s
  (Source http://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.html)

There was roughly 1% difference in business failure rates between the height of the depression and the recovery in the 1940’s.

The media signal says everything is bad. . . The silence tells a different story

When the Right Words Fail – The Unavoidable Truth About Distortion, Deletion and Generalization

Introduction
The side effects of Distortion Deletion & Generalization  are everywhere.  They involve communication of people at all levels in government and of all ages.  Improper understanding of the influence of DD&G has ruined lives, destroyed companies and resulted in death. 

But have you ever heard of them? 

Did you even know they exist?

Three Key Brain Functions

Our brains do many things consciously and unconsciously.  With respect to day to day operations and guidance, our brains rely on three key functions:

1. Distortions
2. Deletions
3. Generalizations

The rest of this article will discuss each or these functions.   You will learn why they are important and how they influence your actions.  And you will learn how to use this understanding to improve your communication skills.

Deletions

Imagine you are late for work, fighting your way through traffic and rehearsing your presentation for the quarterly marketing meeting.   You probably don’t even notice a little bit of dust on the dashboard.  Your eyes see it; your brain notices it and quickly filters it out as being irrelevant.  That bit of dust simply is not important.

Depending on what is going on at any given point in our lives, our brain seeks relevance, and filters out that which is not.

Suppose, you are driving  the CEO to the airport . . . suddenly, that dust becomes relevant.

Our state of mind determines our perceptual filters.  Circumstances change our filters.  

We all have perceptual filters. 

Think about the last time you bought a new car, dress, or electronic gadget.  Didn’t you suddenly become aware of every car, dress or gadget that is similar to yours? 

If you really need a customer to sign a contract but are convinced they won’t, it is likely you’ll filter out buying signals and only hear the rejection.

For example, your prospect may ask questions about price but yours are high. 

• Do you immediately assume defeat? 
• Or, do you see the questions as a signal that they want you to build more value into your proposition?  

Effective communicators take responsibility for their filters.  Here is one way:

• Stop, relax and take a breath before assuming anything or responding.
• Ask yourself
  o What am I missing here?
  o Do I have all the facts?
  o What more do I need to know?
  o What if I am wrong?
  o What else could this mean?
  o Is this really important with respect to my larger goal?
• If you are missing key pieces of information, ask the other party more questions.
• Realize you may not have a complete picture and be open to new information.

Distortions

Our daily pressures and desires distort the way we perceive what is going on around us.  These distortions affect the way we respond.   Here is an early example from my childhood.

The last day of 6th grade I was walking with my girl friend and best friend Rich. 

As we were walking, I kicked a rock. 

Rich playfully shoved me exclaiming “you kicked my rock.” 

In my 13 year old insecure and distorted view of the world, Rich was making me look bad in front of my girl friend.   So, I did the only thing that made sense, I took a poke at him.  

Here is what my distortions kept me from seeing:

• My girl friend could have cared less. 
• Rich was just having fun.  
• Rich was an aspiring Golden Gloves boxer, I was a geek.

How do you think that distortion ended? 

Imagine a young boy flying backwards over the hood of a 1957 Ford Fairlane. 

Distortions can be a problem.

How many times has a customer told you “maybe, let me get back with you on that?”  And you waited.  You assumed “I think it is going to work out.” 

And you wait.  You make projections based on pure non-sense.  And you wait. 

How much time, money and opportunity is wasted when distortions lead down the wrong path?

We can’t avoid distortion.  When we take millions of bits of data from our senses, mix them with our fears, hopes and desires and sprinkle in massive amounts of deletion, things get distorted. 

Knowing our distorted map of the world is not reality gives us opportunities to improve our communication.  We can evaluate circumstances and decide which parts of the map are appropriate, need updated or changed and where crucial information is missing.

To develop more useful maps try the following:

• Realize you are responding to your interpretation of reality and interpretations may or may not be correct.
• Question the fundamental assumptions of the map.  For example:
  • Is this about me? 
  • How did I think this was going to work out?  
  • What did I miss or ignore that led me to think this would be different?
  • How was I predisposed to think about this before I started? 
    • Did I think this would go well?
    • Did expect to fail?
  • At the end of the day, does this really matter?
  • Where is my focus?  
    • On myself?  
    • On My Client? 
    • On the “big picture?”
    • On the minutia?
• Am I too close or too emotionally invested in this?  Why?  How does that affect my perspective?

Generalizations

When something happens we notice.  When something similar happens, we begin to “see” a pattern.  As this goes on we make generalizations about meaning, cause and effect. 

A door is a perfect example.  We generalize about how doors,  knobs and locks work.   This saves us time.  If we had to relearn the concept of doors every time we encountered one, we would still be living in caves, if we survived at all.

Generalizations can also be detrimental to our success.   Have you ever assumed “those people would never need my product?” 

Probably the most famous example of a business defeating assumption was made by Ken Olsen of Digital Equipment.   Mr. Olsen said, “There is no reason for any individual to have a computer in his home.”

Consider the following statements and ask yourself which one is true.

He loved his job.  He murdered everyone in his building.

He loved working at the post office.  He murdered everyone in the building.

If you are like most people, the second statement seems true.  Our preconceived notions and generalizations about “going postal” define our map.     Now step away from your map and you will see the serious flaw in logic.

The first sentence encompasses far more.  It could include any “he” in any occupation in any building. 

The second statement refers to a very small subset “he” working the post offices.

There are many more chances for the first statement to be true than the latter.  Our first blush however was naturally to generalize about the perceived stress of being a postal worker.

Here are some questions you can ask yourself to keep your generalizations in check:

• What were my assumptions before I ever got into this situation?
• What evidence is there to support my assumptions?  
• How does this situation differ from my preconceptions?
• How effective was I last time I was in this situation?
• Do I need a new strategy?
• How much did it have to delete or distort to make this “just like before?”

The key to effective communication is understanding the structure of communication.   What gets communicated is always a bi-product of the Deletions, Distortions and Generalizations.

These Mind Juggling Techniques Will Reduce Your Anxiety, Help You Solve Problems and Enhance Your Creativity

Have you ever had an anxiety attack? Has the prospect of some future event made you anxious?

Would you like to have more access to your whole brain for problem solving and creativity?

We all experience varying degrees of anxiety throughout our lives.  For some people, their lives are dominated by anxiety.  Some suffer frequent panic attacks every day.

In 1984 Nelson Zink and others launched a 2 year study to find the underlying causes of anxiety.   After some time, they had come to the conclusion that anxiety resulted when there was functional imbalance between the right and left hemispheres of the brain.  

The March 1985 issue of Scientific American published an article that confirmed their theory.   Accompanying the article on page 72 was a Positron Emission Tomography (PET) scan picture taken while a person was experiencing a panic attack.  As Zink expected, the picture showed a significant imbalance in the flow of blood the right and left hemispheres of the brain.

Zink wanted to develop an easy, dynamic technique people could use to rebalance the hemispheric activity of the brain.  Meditation and other mental exercises he felt lacked a vehicle for immediate feedback.  And in the case of some meditation techniques, anxiety may increase because people worry if they are “doing it right.”

The end result is what Zink calls Mind Juggling.  It is very simple and when you do it you actively engage both hemispheres of the brain. 

The steps of mind juggling are:

1. If you prefer to stand, spread your feet apart to shoulder width. You can also do this sitting in an armless, straight-back chair.
    
2. With your elbows at 90 degrees, rest the ball in the palm of one hand with the palm of the other hand facing up as well.
    
3. With your eyes open, slowly toss the ball back and forth from hand to hand.  Maintain a rhythm of about 1 toss per second, and toss the ball about 4-6 inches above the resting palms.
    
4. As you keep tossing the ball, slowly move your head and eyes up to focus on the ceiling.
    
5. Keep tossing the ball while you close your eyes and slowly return your head to a forward looking position.
    
6. Continue this exercise for 10-20 minutes.   Dropping the ball is part of the process so when you drop it, just pick it up and continue . . . it’s all good.
    
7. Keep your brain learning.  If you master the exercise, make it more difficult by tossing the ball higher and/or moving you hands farther apart.

The great thing about this exercise is that there are only three rules:

• Maintain a nice slow tossing rhythm
• Keep your  closed eyes 
• When you drop the ball, pick it up

I have shared this technique with numerous people over the years and everyone of them that used it has commented that they received some benefit.  

In one case, a friend who experienced occasional but severe panic attacks experienced immediate relief.  Interestingly, she got to a point to where all she had to do was think about mind juggling, and her attacks would subside.

I too have had very good luck using this exercise and have found it to be very useful for problem solving and enhancing creativity, and a host of other things.

Having written this article, I realize I need to get back to spending at least 10 minutes a day mind juggling.   It is very calming.

How would your life change if you had Disney’s Creativity Strategy?

There are a number of reasons why we may not feel creative at any particular moment.  If you read my previous article “8 Simple Steps to Becoming a Successful Author and Why You Should Start NOW!” you know the story of starting with the “upper left brick.”

 

There is another creative block people often run into I refer to as “the little voice that won’t.” 

 

Maybe you are familiar with it.

 

You have a sudden flash of inspiration.

 

Then, before you have your ideas thought out the little voice in your head (or even possibly from a colleague or friend) starts to criticize the idea. 

 

Or just as bad, the voices start getting into all the realistic details of how to bring the plan together.

 

Critical and Realistic perspectives are absolutely essential to bringing an inspiration into successful fruition.  The problem is not one of the critical and realistic voices; the problem is one of timing.  

 

Our brains and/or well meaning friends try to help us do all three activities simultaneously.  As a result, our creativity is dampened.  The critical and realistic voices feel annoying instead of helpful.

 

The process needs to be sequential and recursive. 

 

Years ago in an NLP practitioner training, I watched Robert Dilts do a great presentation on what he called the Disney Creativity Strategy. 

 

This method works for individuals, departments or large organizations.

 

Two Important Points to Remember

First you must recognize that being a Dreamer, Realist, and Critic require 3 distinct mindsets.  Trying to do all three at the same time only frustrates and slows down the creative process.

 

Second, the Realist and the Critic are as important to the creative process as the Dreamer.  They should be utilized; not dismissed or ignored.

 

Creating Harmony Amongst the Voices

Have you ever been in a poorly run brainstorming meeting where ideas get shot down as soon as they are presented?  Does this ever happen in your head?

 

The key to creating harmony between the Dreamer, Realist and Critic, involves:

·         Making sure every voice is heard

·         Making sure every function is exclusive of the others.

·         Making sure the environment for each voice is conducive to the role of the voice.

 

Environments Matter
While sounding a little “left brained” you should plan to be creative.  Start by setting up three distinct areas.  These areas may be as elaborate or simple as your situation allows. 

 

In some cases it might mean just moving from an easy chair, to desk, to a kitchen table.  I have done this by simply using three differently colored tablets.

 

 

For corporations it might mean building three unique rooms or areas that that are designed to support each specific role.

 

 

1. The Dreamer’s area will be a comfortable environment.  It should include all the things you or your team will need to be creative.

   For example, you may have flip charts, colored pens, white boards, inspirational posters, awards, comfortable furniture, bright lights, appropriate music, and so on.
   

2. The Realist’s area will be less comfortable and more practical.  It could include calculators, budgets, lists, editing tools, good lighting, reference books and articles.

   Basically you want this area to provide the Realist’s with all the tools they need to fully analyze the ideas brought in from the creative area.
   

3. The Critics area will be smaller, uncomfortable, without chairs.  The purpose of this environment is twofold. 

   First, to put people on edge a little bit so they are more likely to speak their criticisms.

   And second, to be uncomfortable enough that no one wants to hang out and just bitch or complain.

    Let’s look at each at each area.

The Dreamer
Start in the Dreamer’s area.   If you have an idea or need to come up with an idea, the best place to do it is here.
 
If you are working alone, use this space to fully expand your idea.  No holds barred.  In this location there is only one rule.

 

NO REALISTIC OR CRITICAL THOUGHTS ALLOWED!

If realistic or critical voices enter into your thoughts, STOP what you are doing and acknowledge the voices.  Remind them that they will be heard very soon, and to please be patient and wait.
 

The Realist

In the creative process the role of the Realist is to evaluate an idea based on the criteria of a real world.  If the idea was a supersonic blimp, the Realist would send the idea back for revision based on the violation of the laws of aerodynamics.
  

Or if there were a really profitable idea, but it involved selling contraband or robbing banks, without a rock solid getaway plan, the Realist’s job is to point out the risks and send the idea back for revision.
  

There is only one rule for the Realist’s Room.
 

NO DREAMER OR CRITICAL THOUGHTS ALLOWED!
 

It is not uncommon, when faced with reality, to immediately start creating solutions.   This is not appropriate in this area.  Nor is it appropriate for the Critic to start slamming the idea as being stupid or whatever.
 

If the Dreamer or Critic insists on disrupting the voice of the Realist, STOP what you are doing and go the appropriate area to jot down the ideas or criticisms.  Leave the creative or critical notes in the appropriate area.
  

If the Dreamer’s idea passes the Realist test, then move into the Critic’s area.  If not, send the idea(s) back to the Dreamer’s area for replacement or refinement.  Let the Dreamer focus on creative solutions. 
 

The Critic

The role of the Critic in the creative process is to be negative.  Their role is to think of everything that can go wrong or be perceived badly.
 

This is the Realist on steroids.  Output from this area might be in the form of “This will never work because . . .”
 

It is no fun being a Critic in this capacity, but it is absolutely necessary to fully develop successful ideas.   I have personal experience with ignoring the Critic inside me.
 

When I wrote my second book, The PC Easy Reader: Because Your are NOT a DUMMY or an IDIOT!   I thought I was really on to something.   Even the Realist in me was happy.  Who wouldn’t want learn something without having to buy a book suggesting they were an idiot.
 

My critical voice kept trying to tell me it was a bad idea because PCs make people feel like dummies and idiots.  Besides, my cover was plain and the subject matter fully discussed. 
 

I didn’t listen to my inner critic and ended up giving away 1000 books I couldn’t sell. 
 

There are only two rules for the Critic’s Room.

 NO DREAMER OR REALIST THOUGHTS ALLOWED!

DON’T STAY HERE TOO LONG.

 The Creative Process

With your areas established and full agreement on the rules you are ready to begin creating.

1. Start in the Dreamer’s area, create wildly without constraints.
   
2. Take best idea(s) to the Realist area and test them against reality.  Ideas that pass muster get forwarded to the Critic.  Ideas that fail are returned to the Dreamer for revision.
   
3. Criticize the Ideas from the Realist.  If ideas can’t be shot down, let them pass.  If they are shot down, return them to the Dreamer for revision.
   
4.  Cycle ideas through the process numerous times until they stand strong in the face of reality and criticism.
    

 This process sounds complicated and time consuming but it is not. 

 It is actually more efficient.  Once each voice knows it will be heard; it stops interfering in processes where it doesn’t belong.  
 

The end result is the development of highly creative, well tested ideas with better chances for survival.

 If the Realist or Critic, insist on disrupting your creative thoughts, STOP what you are doing and leave the creative area.   If the insistent voice is a Realist, go to the Realist’s area and write down its concerns and leave the paper in the area for the future steps.   
 
If it is an insistent critical voice, go stand in the Critic’s area and jot down the criticisms and leave the notes there for future steps.
 
Once the concerns have been addressed, go back to your Dreamer’s room.  Continue dreaming up new ideas.
  

Making Your Message Stick: A Formula Based on SUCCESS

If you have not read Chip and Dan Heath’s outstanding book Made to Stick: Why Some Ideas Survive and Others Die, perhaps now is the time.

The book opens on page 3 with a compelling story about kidney harvesting. It is a hoax, but brilliantly illustrates the point of why some stories stick. For fear of violating copyright, I will not reprint the story here, but instead use one relayed to our CEO.

———-
   Some people who feel wronged by another’s actions may  take  extreme measures to extract revenge

A colleague of ours has a friend that is a successful attorney. Let’s call him Richard. Richard recently returned from a great vacation to the Colorado Rockies.

 

 As he sat in the board room discussing his vacation sunburn and laughing about his adventures, Ed, the senior partner, walked in and quietly moved to the head of the table without saying a word.

 

 Slapping his hand on the boardroom table to get everyone’s attention, Ed, blurted out “We are Ruined!” The anger and frustration in his face left little doubt how serious he was.

 

 He let the full weight of his words settle on the room, Ed took a deep breath and continued.

 

 Richard, on the other hand was wishing he could breathe.

 

“Ok, here’s what happened. . . . Richard you weren’t here but our network was hacked late Thursday night. So, we hired an IT service to help us restore the system. As it turns out, the guy we hired was a disgruntled ex-employee of that Internet firm we sued last year. He is actually the guy that hacked the system. He showed up early Friday stating he was from the IT service we contracted.”

Ed’s  face got beet red.        Richard still couldn’t breathe.

 

“After this lowlife got access to our network, he downloaded all our case files and posted all them on a blog, along with all of our Social Security numbers, salaries, bonuses and so on.”

 

“I found out because Judge Harper called me and asked me what the hell was going on here that we would lose that kind of information.”

 

“Oh, and just for fun, this guy wiped our hard drives clean then took our back up tapes and cooked them in the microwave.”

 

“The only good news I can report is we can retrieve all our files off his blog. But, every pending case is compromised and we can expect be sued by many of our clients.”
—————

 

In their research Chip and Dan identified 6 principles that make stories stick. When you think of these 6 principles, remember SUCCES.

 

In brief the characteristics are:

Simplicity: The message must be “proverb like” simple in its meaning, simple to understand but not necessarily abbreviated, dumbed down or a sound bite. They give the example of the Golden Rule as being a profoundly simple statement that people spend their lives trying to follow.

 

   Example: Some people who feel wronged by another’s actions
   may take extreme measures to extract revenge.

 

Unexpectedness: People learn more and remember the unexpected. When A=B day in and day out, there is nothing to wake up the brain, and get past the gate known as Broca’s area. This region of the brain, positioned near the ear is a powerful filter for most types of neural information. Broca filters by screening out everything “it knows.” If it can see the end coming, it’s not interested, it doesn’t care, and doesn’t pass along the information.

 

A plot twist or unexpected outcome interests Broca, and when Broca is interested, information gets passed along.

 

  Example: A story of success and promotion turns into a
  tragedy about ruination. Curiosity is aroused . Why did the
  business fail.

 

Concreteness: The extent to which a message will mean the same thing to everyone in our audience is determined by the concrete imagery used. Think of some urban legends you have read. Computer hard drives wiped clean and computer set on fire by rogue virus. Razor blades in apples. Concrete imagery anchors the message in our minds.

 

   Example: Disgruntled ex employee, backup tapes cooked in
  microwave, red faces, inability to breathe, slapping the desk, 
  “trip to the Rockies”.

 

Credibility: The more credible the message, the more it sticks. Credibility often comes in the form of references, guarantees, try it before you buy it.

 

Example: Use of proper names, Judge Harper, “A colleague of
   ours” – Slight credibility building, but weak

 

Emotions: If people are going to care about a message, they need to feel something. To varying degrees we are empathetic creatures. Building enough emotion in the characters we describe, helps build emotions , particularly if the circumstances fit within the experience of the audience.

 

   Example: Richard’s breathlessness at hearing his dreams are
  dashed, Ed’s anger an frustration at the ruination of the
  company, Richard’s lightness and laughter at describing the
  vacation.

 

Stories / Story Like: People remember stories far better than facts and data. Stories provide and enriched learning experience. The Bible is based on stories and parables to convey the messages. People who work in highly stressful and dangerous jobs learn from the experiences of others through stories.

 

   Example: The author could have listed dozens of statistics
  about hackers, and security breaches. The story bypasses all
  that and teaches the lesson through the drama of its events
  and characters.

 

This brief summary barely touches on the key points of the Made To Stick. Chip and Dan Heath have provided so many useful anecdotes and lessons that it would be impossible to review them all without rewriting the book.

 

If you get a chance, pick it up. Once you have read it, their message will stick.

“The Irresistible Offer: How to Sell Your Product or Service in 3 Seconds or Less.”

I highly recommend a book by Mark Joyner titled “The Irresistible Offer: How to Sell Your Product or Service in 3 Seconds or Less.”  This book was an easy read and at first blush, I thought well that’s an interesting idea.  In retrospect, the book really started me thinking.  The short version is as follows:

The Core imperative in business:  Make an offer.  Quid Pro Quo.  I will give you X in exchange for Y.  Do this effectively and you can quickly weed out the players from the disinterested time wasters.

Addressing the unspoken dialog:   According to the author, when a person picks up a marketing piece, meets a new person or is on the receiving end of a sales call, there are 4 questions in their mind.

1) What are you trying to sell me?
2) How much?
3) Why should I believe you?
4) What’s in it for me?

We basically have a person’s attention for 3 seconds and must address these questions or we will lose them.  The first three questions address the buyer’s logic, the last question is emotional.

The Irresistible Offer:  “The Irresistible Offer is an identity-building offer central to a product, service or company where the believable return on investment is communicated so clearly and efficiently that it’s immediately apparent you’d have to be a fool to pass it up.” – Mark Joyner

Mark’s 3 favorite Irresistible Offers:
Domino’s – “30 minutes or less . . . or it’s free.”

Federal Express – “When it absolutely, positively has to be there
                           overnight.”

Columbia House – “10 CDs for 1 Cent.”

All of these meet the criteria of an identity-building offer central to a product, service or company where the believable return on investment is communicated so clearly and efficiently that it’s immediately apparent you’d have to be a fool to pass it up.

There are three basic elements to the Irresistible Offer:

1) High Return on Investment (ROI)
2) A Touchstone
3) Believability

If you have all 3, you have an outstanding offer.  What you lack in one area must be made up in the other areas.  For example, Domino’s pizza was not perceived as particularly good in the early days.  So, their offer was low ROI but the touchstone, immediate pizza when you are hungry, was very compelling.

Let’s return to the Core Imperative.  Make an offer.  Without an offer, there is no business, simple as that.   Customers need to perceive an ROI or there is no point.  The ROI should be clear and real.    I can get 10 CDs for 1-Cent.  This implies high ROI even though the perspective customer knows they will have to buy more at a higher price . . . but in total they get cheap CDs. 

The Touchstone is a brief statement of what you do, what’s in it for your customer, and what makes it believable.   For example, Domino’s was selling fast pizza, you get it in 30 minutes or less because you are hungry.  You can believe us because, if it’s late, you get it for free.  Look at the touchstone breakdown for these offers.

Columbia House breakdown by 4 imperative questions:
1) What is Columbia House selling? -  Cheap Compact Discs
2) How much will it cost? – 1 Penny
3) What’s in it for you? – cheap music, bragging rights
4) Why should you trust Columbia House? – Not much to lose.  It’s low risk but customers are still skeptical.

Dominos breakdown by 4 imperative questions:
1) What is Domino’s selling? -  Fast Pizza
2) How much will it cost? – Not stated
3) What’s in it for you? – Immediate gratification, Pizza now when you are hungry.
4) Why should you trust Dominos? – If they don’t deliver on their promise, it’s free – -strong risk reversal.

Federal Express breakdown by 4 imperative questions:
1) What is Federal Express selling? – Overnight Delivery
2) How much will it cost? – Not stated – We believe this is so valuable; you may not care about price.
3) What’s in it for you? – Delivery is made overnight, your project can continue w/o delay.  You have covered your bases.
4) Why should you trust Federal Express? – Trust worthiness is implied in the name Federal Express.
Let’s put this in context of what Mark describes as the Great Formula.
1) An irresistible offer
2) A thirsty market
3) A second glass.

In other words, identify your market and know who is thirsty for what you are offering, make them an irresistible offer and after they have made their purchase, reel them in for repeat business, sell them a second glass of water.  If the ROI is real as well as perceived, the second glass is an easy sell.

Believability can be one or a combination of:
1) Proof – this can be social proof (we have satisfied customers), Technical proof (independent data validates our offer), Factual proof (presentation of facts that validate our offer)

2) Credibility – are we credible, do we have the substance to make the offer?

3) Endorsements – high profile or respected people they know that would attest to our solution.

4) High profile customers – who are the big dogs they respect that we do business with?

5) Qualifications – memberships,  degrees, member organizations.

6) Awards and recognition – customers like to associate with winners.

7) Logic – rock solid logic to support an irresistible offer.

Regardless of whether or not your are trying to get a date or sell products and services as we do at EssentiaLink, finding an honest irrestible offer is . . .well . . . imperative.  

David Hayden is in charge of marketing and media relations for EssentiaLink. EssentiaLink is a business process outsourcing company that helps companies streamline operations, reduce CAPEX and transform CAPEX into Variable OPEX.

<p>I highly recommend a book by Mark Joyner titled &ldquo;<a title=”Found on Amazon.com” href=”http://www.amazon.com/gp/product/0471738948?ie=UTF8&amp;tag=haydenpubcom-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0471738948″>The Irresistible Offer: How to Sell Your Product or Service in 3 Seconds or Less</a>.&rdquo;&nbsp; This book was an easy read and at first blush, I thought well that&rsquo;s an interesting idea.&nbsp; In retrospect, the book really started me thinking.&nbsp; The short version is as follows:</p> <p><strong>The Core imperative in business:</strong>&nbsp; Make an offer.&nbsp; Quid Pro Quo.&nbsp; I will give you X in exchange for Y.&nbsp; Do this effectively and you can quickly weed out the players from the disinterested time wasters.</p> <p><strong>Addressing the unspoken dialog:</strong>&nbsp;&nbsp; According to the author, when a person picks up a marketing piece, meets a new person or is on the receiving end of a sales call, there are 4 questions in their mind.</p> <p>1)&nbsp;What are you trying to sell me?<br />2)&nbsp;How much?<br />3)&nbsp;Why should I believe you?<br />4)&nbsp;What&rsquo;s in it for me?</p> <p>We basically have a person&rsquo;s attention for 3 seconds and must address these questions or we will lose them.&nbsp; The first three questions address the buyer&rsquo;s logic, the last question is emotional.</p> <p><strong>The Irresistible Offer:</strong>&nbsp; &ldquo;The Irresistible Offer is an identity-building offer central to a product, service or company where the believable return on investment is communicated so clearly and efficiently that it&rsquo;s immediately apparent you&rsquo;d have to be a fool to pass it up.&rdquo; &ndash; Mark Joyner</p> <p><strong>Mark&rsquo;s 3 favorite Irresistible Offers:<br /></strong>Domino&rsquo;s &ndash; &ldquo;30 minutes or less . . . or it&rsquo;s free.&rdquo;<br /><br />Federal Express &ndash; &ldquo;When it absolutely, positively has to be there <br />&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; overnight.&rdquo;<br /><br />Columbia House &ndash; &ldquo;10 CDs for 1 Cent.&rdquo;</p> <p>All of these meet the criteria of an identity-building offer central to a product, service or company where the believable return on investment is communicated so clearly and efficiently that it&rsquo;s immediately apparent you&rsquo;d have to be a fool to pass it up.</p> <p><strong>There are three basic elements to the Irresistible Offer:</strong></p> <p>1)&nbsp;High Return on Investment (ROI)<br />2)&nbsp;A Touchstone<br />3)&nbsp;Believability</p> <p>If you have all 3, you have an outstanding offer.&nbsp; What you lack in one area must be made up in the other areas.&nbsp; For example, Domino&rsquo;s pizza was not perceived as particularly good in the early days.&nbsp; So, their offer was low ROI but the touchstone, immediate pizza when you are hungry, was very compelling.</p> <p>Let&rsquo;s return to the Core Imperative.&nbsp; Make an offer.&nbsp; Without an offer, there is no business, simple as that.&nbsp;&nbsp; Customers need to perceive an ROI or there is no point.&nbsp; The ROI should be clear and real.&nbsp;&nbsp;&nbsp; I can get 10 CDs for 1-Cent.&nbsp; This implies high ROI even though the perspective customer knows they will have to buy more at a higher price . . . but in total they get cheap CDs.&nbsp;</p> <p>The Touchstone is a brief statement of what you do, what&rsquo;s in it for your customer, and what makes it believable.&nbsp;&nbsp; For example, Domino&rsquo;s was selling fast pizza, you get it in 30 minutes or less because you are hungry.&nbsp; You can believe us because, if it&rsquo;s late, you get it for free.&nbsp; Look at the touchstone breakdown for these offers.</p> <p><strong>Columbia House breakdown by 4 imperative questions:<br /></strong>1)&nbsp;What is Columbia House selling? -&nbsp; Cheap Compact Discs<br />2)&nbsp;How much will it cost? &ndash; 1 Penny<br />3)&nbsp;What&rsquo;s in it for you? &ndash; cheap music, bragging rights<br />4)&nbsp;Why should you trust Columbia House? &ndash; Not much to lose.&nbsp; It&rsquo;s low risk but customers are still skeptical.</p> <p><strong>Dominos breakdown by 4 imperative questions:<br /></strong>1)&nbsp;What is Domino&rsquo;s selling? -&nbsp; Fast Pizza<br />2)&nbsp;How much will it cost? &ndash; Not stated<br />3)&nbsp;What&rsquo;s in it for you? &ndash; Immediate gratification, Pizza now when you are hungry.<br />4)&nbsp;Why should you trust Dominos? &ndash; If they don&rsquo;t deliver on their promise, it&rsquo;s free – -strong risk reversal.</p> <p><strong>Federal Express breakdown by 4 imperative questions:<br /></strong>1)&nbsp;What is Federal Express selling? &ndash; Overnight Delivery<br />2)&nbsp;How much will it cost? &ndash; Not stated – We believe this is so valuable; you may not care about price.<br />3)&nbsp;What&rsquo;s in it for you? &ndash; Delivery is made overnight, your project can continue w/o delay.&nbsp; You have covered your bases.<br />4)&nbsp;Why should you trust Federal Express? &ndash; Trust worthiness is implied in the name Federal Express.</p> <p><br /><strong>Let&rsquo;s put this in context of what Mark describes as the Great Formula.<br /></strong>1)&nbsp;An irresistible offer<br />2)&nbsp;A thirsty market<br />3)&nbsp;A second glass.</p> <p>In other words, identify your market and know who is thirsty for what you are offering, make them an irresistible offer and after they have made their purchase, reel them in for repeat business, sell them a second glass of water.&nbsp; If the ROI is real as well as perceived, the second glass is an easy sell.</p> <p><strong>Believability can be one or a combination of:<br /></strong>1)&nbsp;<strong>Proof</strong> &ndash; this can be social proof (we have satisfied customers), Technical proof (independent data validates our offer), Factual proof (presentation of facts that validate our offer)<br /><br />2)&nbsp;<strong>Credibility</strong> &ndash; are we credible, do we have the substance to make the offer?<br /><br />3)&nbsp;<strong>Endorsements</strong> &ndash; high profile or respected people they know that would attest to our solution.<br /><br />4)&nbsp;<strong>High profile customers</strong> – who are the big dogs they respect that we do business with?<br /><br />5)&nbsp;<strong>Qualifications</strong> &ndash; memberships,&nbsp; degrees, member organizations.<br /><br />6)&nbsp;<strong>Awards and recognition</strong> &ndash; customers like to associate with winners.<br /><br />7)&nbsp;<strong>Logic</strong> &ndash; rock solid logic to support an irresistible offer.<br /><br />Regardless of whether or not your are trying to get a date or sell products and services as we do&nbsp;at <a title=”Essentialink.com” href=”http://www.essentialink.com” target=”_blank”>EssentiaLink</a>, finding an honest irresistible offer is . . .well . . . imperative.&nbsp;&nbsp;</p> <p>David Hayden is in charge of marketing and media relations for EssentiaLink. EssentiaLink&nbsp;is&nbsp;a business process outsourcing company that helps companies streamline operations, reduce CAPEX and transform CAPEX into Variable OPEX.</p>

What does Super Bowl XLIII remind us about business?

I must confess, I rarely watch football.  But this years Super Bowl, was an exception.   Of all the Super Bowls I have seen, this was one of the most exciting.   And, in reflection, it was full of reminders about the nature of business.

1. Business is exciting – Enough said.
2. Competition not only makes business more exciting, it results in a better product for the customer.
3. It is easy to spend millions on worthless advertising that people won’t even remember 1/2 hour later.  In my case, the clydsdale commercials were the only ones I remember and  associate with a brand.  They are so iconic, to add the word Budwiser is redundant.
4. You never know when a competitor is going to intercept your idea and use it to score against you.
5. Just when you think you have the field covered, a missed opportunity runs right up the middle leaving you in the dust.
6. Being prepared and keeping your eyes open allows you to capitalize on the competitions misjudgement and score one.
7. Finding the right niche market enables you to run right past the competition.
8. Great competiton makes us great.
9. A leader with a cool head can turn the game around against the odds.
10. Winners enjoy a much higher Return on Effort.

For most of us, our season does not culminate in one  record breaking game.  We don’t get a few months of to revel in our glory or lick our wounds.  We get up the next day, jump right back on the field and fight the good fight. 

Remember: At the end of every day is the start of a brand new day.  So put on your game face, be prepared, be creative and keep your goal in mind.

Congratulations to The Pittsburg Steelers.

Opportunity or Bad Idea?

One of the most important things to consider when evaluating opportunities is the cost.

Opportunity Cost, is a business concept that really applies to all areas of life.

The basic concept is that there is a limited resource like time or money and a number of ways to spend or invest it.

For example you have a 3 day weekend. Your choices are to go boating with family and friends or putting in that extra effort to get a job completed for work.

If you choose the first option, you take advantage of the great opportunity to enjoy the outing. But it comes at the cost of high stress, possible job demotion or job loss.

We make these kinds of decisions all the time. When well informed, we realize the consequences of our actions and decide accordingly. In hindsight, we may not always make the best decision, but we generally make the best decision we can for the state of mind we are in at the moment.

So what does this have to do with finance or running a small business?

Good question. Opportunity cost in business is a measure of what a particular opportunity may cost a business.

In the most simple terms, suppose your company has a limited budget. Easy enough, I suspect.

Within the reaches of that budget are the following:

• A new CNC Lathe for which you think you can find plenty of work
• A marketing campaign to attract new business from local businesses
• New servers and firewall to upgrade your computer network
• A new employee to support the shop.

Any of the above would be a good opportunity for your business, but when you pick one, you do so at the cost of excluding the others.

If you get the new lathe and the work to go with it, you may find yourself working late at night to keep the machine running because, in the short term, you can not afford an employee to run it.

Your marketing campaign may be great and bring in new business, but you may be lacking the equipment to do the work people want. Eventually the new prospects forget about you because you do not have the capacity to do their work.

And so on.

In finance it gets interesting as well. Suppose you completed a large job and now have $50,000 in the bank. What do you do with it?

• You could put it in savings at a nominal interest rate in this market say 1% .
• You could pay off some supplier or other debt that may be costing you 10% or more interest.
• You could buy a new piece of equipment.
• You could use the money for a down payment on your own building.

If you choose to save the money at 1% you do so at the cost of 10% interest on the outstanding loan. But by the same token, with the cash in the bank, you have the liquidity to buy future raw materials without incurring more debt.

If you pay off the debt, you improve your standing with those particular vendors, but by eliminating a cash asset, you may find it harder to get future credit for a large project.

If you buy the new piece of equipment, it may produce far more income than could ever be earned in a bank. Or, it could sit mostly idle for months or years until you get the word out about your expanded capacity.

I have worked for a couple of companies where some of my colleagues could not fathom why “management” did not fund their particular project. In many cases they failed to realize that the decision makers had a lot of “opportunities” from which to choose.

Had my colleagues looked around and evaluated the opportunities with which the managers were faced, they may have made different decisions themselves. For example, they may have chosen a different presentation style that was supported with substantial return on investment data. This would have given the managers an entirely different perspective on the proposed project.

Or, they may have chosen to join forces with those promoting a competing opportunity to build a strong case that supported both of their initiatives.

Or they may have waited for a more opportune time before they put the time and effort into getting funding for their pet project.

We recently added central air conditioning to a house we have been renovating. Chances are we will never recover the cost of the installation. But while we are living in the house we are far more comfortable. Our oppourtunity for comfort comes at the cost of return on our investment. For me, it was a decision that was easy to make.

6 Important Questions CEOs Must Ask About Information Technology

The role of CEO is often equated to being captain of a ship.  CEOs navigate tough markets and financial under currents.  The CEO, sets an objective, charts the destination and steers the company to favor good trends and avoid hazards.

Information Technology is not unlike an iceberg.  80% of what goes on in the world of IT is not visible to the CEO.  Similarly, failure to properly navigate the Information Technology waters can sink a business.

For the CEO Information Technology poses a number of challenging questions.

·         How can Information Technology best support current and future business initiatives?

·         How can we get the maximum benefit from IT at the least cost?

·         How does investment in IT stack up against other opportunities?

·         How can IT investment be held accountable to ROI initiatives?

·         How can non-productive IT maintenance expense be minimized?

·         How can capital investment in rapidly depreciating IT assets be minimized?

 

Answering these and other business specific questions define the relationship between CEOs and their IT departments.   Since most of what goes on in the IT underworld is invisible to CEOs, they often feel held hostage by the very Information Technology that is intended to help them.  Important financial decisions are frequently based on barely understandable jargon presented by department experts with a sense of urgency and intellectual authority.

It does not have to be this way.  It should not be this way.  CEOs should have no less discretion over decisions related to Information Technology than they do any other department or operation.

CNN Spoof Email Installs Malware that Steals Passwords

Essentialink issues MaintenanceFreeIT Security Alert

CNN Spoof Email Installs Malware that Steals Passwords

BAI Security is warning about an email message appearing to come from CNN that is actually a serious password-stealing Trojan.

A rapidly spreading email lures users to click on a link that promises video and further details about actual events occurring in Gaza. The link takes users to a fraudulent but realistic-looking CNN website that promises a compelling video.

When a user follows the link a pop-up that states the user needs an updated version of Adobe Flash Player and to click another link to install the update. If the link is followed by the user, Trojan program is downloaded. The Trojan program searches your computer for passwords and security information for banking and other financial sites stored on your hard disk.

For a  free report that shows samples of the email and the spoof CNN website, email  dhayden@essentialink.  In subject line type MaintenancFreeIT CNN Security Warning