• Ethical Behavior an Issue for American Business
  
• Superior Performers - Harley-Davidson
  
• Cross Border News - Leading Indicators

In this post Enron, WorldCom, Tyco, etc. environment, ethical issues revolving around fiscal responsibility, honesty, trust and integrity are major issues confronting North American business. Business executives want to know that their consultants are committed to the profession--not just between jobs, and they prefer some type of a certification process to ensure the consultant's competency. They are concerned about professional service firms being able to deliver what they promise and being able to ensure that the client's best interests are always a priority. Professional service firms include management consultants, lawyers and accountants.

"It's clear that the problem(s) is/are much larger than 'a few bad apples'," wrote one business executive expressing his ethical concerns. "It's also clear that very little can be accomplished by legislation or self-policing by the professions to improve the situation. Therefore it comes back to personal standards and character. If you want to cut corners and take questionable actions, it will always be possible to do so with little fear of detection, or, if found out, to be punished for the same."

Clearly the most critical concern expressed in the survey dealt with the competency issue. Eighty four percent (84%) of the respondents ranked as their #1 or 2 concern, the need for the consultant to have a client-verified track record in his/her field. Analogous to this, were the following two additionally important issues expressed by nearly half the respondents:

• A desire to have their consultant certified through a rigorous client and peer review (Ranked #1 or 2 by 48% of the respondents).
  
• To know that the consultant is committed to the profession long-term and not just between jobs (Ranked #1 or 2 by 46% of the respondents).

Promises unfulfilled
Three additional areas were also significant to business clients when working with professional service firms. Business leaders felt that consultants are often:

• Over-promising expected results and/or benefits (Nearly half of the respondents-46%)
  
• Not serving the best interest of the client (32%)
  
• Under-delivering results vs. commitment (31%)

The good news is that although the above three issues are important to business executives they indicated they had not experienced professional service firms practicing these things with any great frequency.

On the positive side, associations for consultants such as the Institute of Management Consultants (IMC) have a certification process, as administered through IMC's College of CMCs, that ensures that a CMC consultant has passed the toughest certification in the profession and must maintain that degree of performance through periodic recertification.

The CMC designation is awarded to those select consultants who have demonstrated a history of substantive results for clients, adherence to the canon of ethics of the Institute of Management Consultants, and professional practice management. Certainly this is a process that directly addresses the issues that are integral to restoring trust in professional service firms whose consultants provide counsel and advice to American business.

As many of you know, I was certified in 2001 and remain a member of IMC-USA and the Canadian Association of Management Consultants. For more information about the CMC designation please go to www.IMCUSA.org in the U.S. and www.camc.com in Canada.

If you have any comments on the issue of ethics or experiences in dealing with consultants please send your feedback to lhanson@llhenterprises.com. If you would like a copy of the White Paper which is based on the survey email me at lhanson@llhenterprises.com.

Last month, Harley-Davidson made the front page of the Report on Business section of Toronto's premiere newspaper The Globe and Mail. The headline was "Harley-Davidson's great ride to the top." And, it is an interesting study in marketing, particularly branding.

The key to Harley's success is their current marketing program. Harley-Davidson's strategy starts with a well targeted market-aging male baby boomers and offers a well targeted product-a chrome and steel machine that rumbles and shakes and roars. Its current 1930's styling has 21st century technology that includes just-in-time production, fuel injections, computerized engine-management systems, cruise control and CD players. When you look at who is driving these machines it can be anyone from construction workers to accountants and lawyers-maybe even your financial planner. The current Harley buyer is between 40 and 50 years old, male, with a household income of $78,300 U.S. and $85,000 Canadian. They spend on average $25,000 U.S. plus accessories such as clothing.

Harley-Davidson doesn't try to be everything to everyone and they know their customers well. All executives ride to work. They visit the big bike rallies and charity runs, listen to compliments and complaints and look for the next big trend. With fan clubs, magazines with testimonials and photographs of members' bikes, sponsoring charity events and buyers riding the country side for charity the company is ensuring
brand loyalty-a word most companies think is dead. Harley-Davidson has raised $40 million for muscular dystrophy in Canada and the U.S., as well as collecting toys for children, and cash for the blind and homeless teenagers.

Willie G. Davidson, chief designer and grandson of the founder, is often found walking around with his notebook looking for new ideas and sponsoring customer one-on-one sessions. At 70 years old he is still passionate about his bikes. Mr. James a member of the Harley-Davidson board, believes the company has passion-passion about the product, passion for the road and passion that will fuel the corporate engine. And you know they have brand loyalty because some of their customers tattoo the Harley-Davidson logo on their arms. We can learn a lot from Harley-Davidson when it comes to our own marketing.

Burn your company name into clients memories
While you likely won't see your customers burning a tattoo of your company logo into their arms you can still attain the Harley-Davidson model and use your marketing successfully to drive right to the heart of the buyer--and that is what branding is all about. Work hard to make your service that much better than everyone else's and make certain that the differentiation isn't lost on your prospective buyers. Go out of your way to make sure prospects/clients don't miss how you are different and why you are great at what you do.

Target your market
Just as Harley-Davidson does, know your customers well. Know the demographics of your current buyer, their age, corporate income, personal income, spending patterns, buying patterns, weaknesses and strengths. The better you know your market, the more effective your marketing and sales efforts will be in building trust, credibility and loyalty in the minds of your customer. Keep in touch with your market and be consistent.

Listen to your clients
Do focus groups, surveys, and one-on-one sessions with your customers. Bring back the information, put it into a plan and then show your customers you are listening to them by making changes. Learn all you can about prospect and client companies: look up the stock price; shop the customer's business, talk to employees/customers casually, visit the competition, find a unique fit (same school, same association, etc.), buy or use their product/service, check out their website in order to listen more thoroughly. Listen to compliments and complaints. Look for the next trend and be ahead of the curve.

Give back to the community
Don't try to do everything. Choose some charities and activities that revolve around client and prospect interests. Better still partner up and lead your clients and prospects to give back to the community, in each community where you conduct business. Partner with others to show a passion about what you do and fuel your corporate engine.

It is interesting to note that as "business" leaders Bush and Chretien are not always acting in ways that are in the best interests of their own constituents. Relations between Bush and Chretien got off to a rough start when Bush chose Mexico instead of Canada as the first country he would visit as president. After the terrorist attacks of Sept. 11, 2001, Bush failed to mention Canada when he thanked U.S. allies for their help. Canadians were angry because Canada accepted hundreds of planes diverted from the United States when terrorists attacked the World Trade Center and the Pentagon.

Problems continued when Chretien's communications director was quoted as calling Bush a moron and Chretien failed to condemn her or accept her first resignation. She did resign, eventually. But the biggest blowup came when Chretien stood with France and Germany and refused to join the United States in the war on Iraq because it lacked U.N. authorization. After that, Bush canceled his Ottawa visit and a deep chill fell over the relationship.

Whether it is a country or a company, a leader's job is to recognize when a company is headed in the wrong direction and to get it back on the right track. Behavioral differences abound in companies and in looking at the U.S./Canadian relationship it is not difficult to see that Bush and Chretien's cultural backgrounds and hence leadership styles are getting in the way of business. Behavior is the most difficult of all things to change because it involves altering the ingrained behavior of people. Within companies behavioral differences are present between departments, within departments and sometimes between the CEO and senior executives.

If leadership were easy, it would be easy to find lots of great leaders. But remember: leaders are made, not born. Here are nine traits our countries leaders do not seem to share but are required for strong leadership:

• Be Confident and Modest
  An certain amount of ego is needed to lead but be strong enough to check it at the door. Being a leader is not about yourself it's about the people around you.
  
• Be Authentic
  Earn the trust and respect of the people who you lead. Know who you are and walk the talk.
  
• Listen
  Great listening is fueled by curiosity. Curiosity helps you ask questions-just don't believe you have all the answers.
  
• Give Encouragement
  Leaders are always raising the stakes for themselves and their people. That means they're always testing and building both courage and stamina throughout the organization.
  
• Provide Direction
  Providing direction is different than having all the answers. It means asking revealing questions, knowing where markets are going, how technology is changing, what competitors are plotting so you can be in touch and out front.
  
• Expose People to Reality
  Even though people want leaders to insulate them from change, it is better to mobilize them to face it so they can grow and develop.
  
• Stand For Values
  Reinforce the values and operations that are so central to your core that if you lose them, you lose yourself. Help people identify what habits and assumptions must be changed for the company to prosper.
  
• Lead By Example
  Small gestures send big messages. Leaders have a fundamental obligation to live their lives according to the principles they espouse.
  
• Make More Leaders
  Look around your organization and ensure you see enough leaders at all levels to keep your company changing and moving forward. Your task is to make more leaders.

Leading indicators show improvement
Europe, Canada and the United States are showing signs of economic improvement. While the following three signs are good news, it points out that companies need to be ready to gear up with plans to capture more market share and increase profits. Think about how the following affect your business:

Global Economies Look Up
By the end of August evidence was mounting that the U.S. economy was gathering momentum after months of disappointing growth. Some signs are also emerging that the global economy is beginning to perk up as well and executives in France, Belgium and the Netherlands feel the worst is over. As a result the global stock markets rose: Germany's Xetra DAX Index is up 15%, Japan's Nikkei is up 11%, Argentina's Merval Index is up 36%, Brazil's Bovespar Index is up 20% and the Toronto Stock Exchange is up 10.6%. The U.S. is cutting short term interest rates to 45 year lows and reducing income tax rates, European interest rates are being lowered and Canada seems to be holding their interest rates hoping that higher interest rates relative to the U.S. rates will lure international investors.

Canadian Hiring Outlook
The Canadian economy has faced many challenges so far this year, including a rising dollar, severe acute respiratory syndrome (SARS), mad-cow disease, the blackout in Ontario and forest fires in British Columbia. But according to the Canadian operations of Manpower Inc., in their quarterly survey of 1,738 Canadian employers, 23 percent are planning to increase staff, 15 per cent are expecting to reduce staff with the remainder not planning any changes. Three studies released in September by Canadian human resources consulting firms show that businesses are expected to increase salaries by 3.3 percent. With hiring and wages increasing it shows some optimism on the part of business leaders even though it is rather cautious.

Manufacturing Expands in the U.S.
The U.S. manufacturing sector expanded for the second consecutive month in August, providing further evidence that the economy's hardest-hit sector may finally be on the rebound. The Institute for Supply Management said its monthly survey of manufacturing that conditions rose to 54.7 from 51.8 in July (a result above 50 usually means expansion).

Some guidelines for building credibility are:

• Make it easy to verify the accuracy of the information on your website. Use citations and source material for information you present.
  
• Show there is a real company behind your site. List a physical address, photo of your building and list memberships in organizations.
  
• Highlight your expertise by giving credentials, list organizations you are affiliated with and give client examples.
  
• Show that you are honest and trustworthy through images and text. List awards, bios, credentials, and client assignments.
  
• Make it easy to contact you with phone numbers, physical addresses and email addresses.
  
• Design your site so that it looks professional and appropriate to your business. Have consistency with your other marketing materials, ensure accurate spelling and grammar and have an easy to maneuver layout.
  
• Update your website periodically to show credibility.
  
• Limit promotional content by avoiding ads. Be sincere, clear and direct.

Supply Chain Management Important-According to a survey of 247 senior financial executives released by CFO Research, 61 per cent say supply chains are crucial to corporate success and to achieving corporate objectives. Yet only 33 percent say business and operational plans are well integrated. Sixty-two per cent say their companies seem capable of making only incremental improvements today, according to a survey released by UPS. CFOs mostly cite two key objectives in explaining the importance of supply chain management: 93 percent cited the need to reduce operating costs and 82 percent identified the need to improve customer service.

This makes the point that most companies need to review and possibly overhaul their supply chain because it is one of the largest determinants of where cash flow will be derived and where capital will be consumed. Customer service continues to be a constant challenge in most organizations and also would benefit from a process review to ensure efficient and effective servicing of clients.

Please give us feedback on this issue of The Superior Performance Report (click here) and let us hear your insights and what you would like to hear about next time.

Copyright 2003 by LLH Enterprises-reproduction for publication is encouraged, with the following attribution: From "The Superior Performance Report," by Linda Hanson, CMC, www.llhenterprises.com.

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