Is it Safe to Hire 1099 Contractors Anymore?

By Lauraine Bifulco of Vantaggio HR

Independent contractors or employees? It’s not a new question. We’ve all been grappling with it for years, but why does the issue keep circling back around, and dare I say, keep getting more complicated? How do we avoid a legal minefield?

People are divided on the subject. “Yes, I’m positive my design consultant is an independent contractor.” “No, that office manager of yours really needs to be on payroll as an employee.” We can’t seem to agree. Why is that?

Well, it’s not that as intelligent business people, we can’t apply a set of rules to a situation and determine the right answer. If there were a standard, we’d all probably be able to figure it out and agree. But that’s the problem, there simply isn’t one, easy set of rules – until maybe now, with the increasing use across the country of ABC tests to make the determination. Hawaii, for example, has long used the ABC test for determining employee status ‐ as do 16 other states. And now California has jumped on the bandwagon after their state supreme court decided earlier this year that they could not be outdone by Massachusetts who had been known for having the most stringent test in the country! And while these ABC tests aren’t necessarily good news for employers, they are at least typically more clear than the tests used in other jurisdictions and by other agencies.

Let’s go back and see how we got here. As a reminder, it’s unfortunately not up to the worker and the hiring company to determine the best model for working together. There is a common misconception that you can just “1099” the worker and be safe treating him/her as an independent contractor. While filing a 1099 to report income paid to the person can help reduce your penalties with the IRS should it be determined that the person was misclassified, the act of submitting a 1099 does not in and of itself establish independent contractor status. Almost everyone has heard of the IRS’s 20 factor test, which was boiled down in 2007 to an 11‐factor test focusing on 3 main areas. The IRS examines the behavioral and financial arrangement between the worker and the hiring company as well as the nature of their relationship. This type of test, called a “common law test” walks you through a series of questions helping to identify if the worker in practice is functioning independently or not. Unfortunately, oftentimes even after applying the multiple questions, the answer is a little murky and could honestly swing either way.

Other agencies, like the federal DOL, use a different methodology called the “economic realities test.” Like the common law test, there are a series of questions that one poses about the worker and the hiring entity aimed at determining if the worker is truly independent from an economic perspective from the hiring entity. Is this person truly, from a financial perspective operating an independent business?

The challenge with both the common law test and the economic realities test, is that there is no true “pass/fail.” For example, with the IRS’s 11 factor test, you are not guaranteed independent status if you answer 6 out of the 11 questions correctly. The different factors are given varying weights depending upon the exact terms and conditions of a particular worker’s relationship with the hiring company. And unfortunately, clarity is sometimes not reached until years after the relationship is established when there is a complaint or lawsuit and then a final ruling. Employers have been left guessing and hoping that their independent contractors are classified correctly.

Until now. ABC tests utilize a streamlined, 3‐prong approach whereby the hiring entity has to establish that all 3 of the factors of the test are met. If either A, B, or C cannot be established, the analysis is over – your worker is an employee and not an independent contractor.

Here’s how ABC tests typically work:

A worker is legally presumed to be an employee, unless:

A. The worker is free from the control and direction of the hiring company in connection with the performance of the work;

AND

B. The worker performs work that is outside the usual course of the hiring entity’s business (AND/OR outside of the hiring entity’s regular place of business);

AND

C. The worker is customarily engaged in an independently established trade, occupation, or business.

While factors A (the worker needs to be free from control of the hiring company) and C (the worker needs to truly be engaged in running his/her own business) have been part and parcel of just about all the other types of tests used, factor B is frequently the most difficult hurdle to overcome for an employer wanting to treat someone as an independent contractor. Note the “AND/OR” in the description above. Some jurisdictions allow for the “OR” (such as Hawaii), meaning that if you manufacture and sell surfboards, you can still hire someone as an independent contractor if he/she meets prongs A and C, as long as the worker manufactures those surfboards for you at his/her own business location. Some jurisdictions don’t give you that option. Now in CA for example, there is no “AND/OR” – if the person makes surfboards for you, no matter where the work is done, you fail prong B of the test. Period. Game over. Unless the worker is being utilized to provide some type of service that is not the hiring company’s core business, the person will be considered an employee.

Keep in mind that while these ABC tests are becoming more and more common, many agencies may still continue to use their existing criteria. And to make matters even more complicated for us employers, within a specific state, different agencies use different tests. How a worker is classified by state labor commissioner for purposes of overtime, minimum wage, and other employment law protections may well differ from how a determination would be made regarding eligibility for unemployment benefits or coverage by workers’ compensation. Does this make your head hurt yet? It does mine.

This is an area to keep your eye on. It is entirely possible that other agencies will also adopt the ABC standard. Recently, Senator Bernie Sanders introduced a bill that would incorporate California’s new version of the ABC test into the federal rules for determining independent contractor status under the National Labor Relations Act (NLRA). We are clearly experiencing a trend.

But for now, we are left with different tests being used by different agencies and the challenge it’s not possible to treat someone as an independent contractor for some purposes while an employee for others. When deciding if someone is going to be on payroll or not, we have no choice but to apply the most stringent test that could come into play. And for many of us, it’s the ABC test.

Understanding the thought process behind these rules is helpful. The basic premise it to not have workers deprived of benefits to which they would be entitled if classified as employees. Further, if we allow some companies to save money by avoiding payroll taxes, workers’ compensation, and other mandated benefits and protections, we set the scene for unfair competition in the marketplace.

What is at odds with this trend towards restricting the legal classification of independent contractors, is the evolving “gig” economy. More and more individuals are getting involved with companies such as Uber, Lyft, Grub Hub, and a host of other online, on‐demand service entities that allow people to pretty much decide how much they want to work and when. If these ABC tests are increasingly going to be applied, gig companies are going to have a very hard time continuing to employ workers as independent contractors. And the lawsuits are rolling in. The CA Supreme court ruling made an interesting point. They acknowledged that there is often greater freedom for workers to be treated as independent contractors but stated that “if a business concludes that it improves the morale and/or productivity of a category of workers to afford them the freedom to set their own hours or to accept or decline a particular assignment, the business may do so while still treating the workers as employees for purposes of the wage order.” Point well taken by all of us inside or outside of California.

So where does this leave us? As the landscape continues to evolve, we urge employers to proceed conservatively. Know the exact nuances of the tests in your jurisdictions, get professional help if needed to make a sound determination, audit yourself before someone else does, and keep your eyes open for changes. The gig economy isn’t going away anytime soon, but neither are the ABC tests.

The information presented in this article is intended to be accurate and authoritative information on the subject matter at the time submitted for publication. It is distributed with the understanding that Vantaggio HR is not rendering legal advice and assumes no liability whatsoever in connection with its use. Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article.
Copyright © 2020

Lauraine Bifulco is President and Principal Consultant of Vantaggio HR, a human resource outsourcing and consulting firm that works with companies of all sizes across all industries, offering services on a fully outsourced or project basis: On-Site HR * Payroll Admin * Workplace Complaints & Terminations * Multi-State Audits & Handbooks. 1-877-VHR-relx (1-877-847-7359) [email protected]

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

How to Conduct Remote Job Interviews

By Dana Borowka, MA

Many companies struggle to find the right candidates for their organization. Having a small radius to find the right talent can add to these challenges.

The solution is to open up the geographic area for recruiting because that opens up a whole new talent pool. Now your company can target specific areas in the country where more candidates with certain talents may be found.

However, there is a concern. Remote worker programs mean hiring managers need to get better at remote interviewing through video.

During the COVID crisis with the stay-at-home order, remote interviewing has become a requirement, not a luxury.

“Remote worker programs must be done right if you are to garner productivity gains,” says Patty Crabtree, a senior consultant at Lighthouse Consulting Services with 25 years of operations and finance leadership experience.

“As someone who has implemented these programs and now helps clients transition to these programs, how you interview remote job candidates is an important new recruiting skill,” says Crabtree.

Author and recruiting expert Barry Deutsch has strong views on remote interviewing.

“Most companies do a terrible job preparing managers and executives to hire effectively, including remotely interviewing candidates,“ says Deutsch, a partner at IMPACT Hiring Solutions and co-author of the book You’re Not The Person I Hired.

“In most companies, hiring is not a process, it’s a random set of arbitrary meetings where each individual manager does interviewing in their own misguided way,” says Deutsch. “The minute you turn hiring into a process, train all your managers, and put some rigor behind it, then hiring accuracy starts becoming more reliable.”

Crabtree concurs.

“Once you have a system set up, you can interview anyone through Zoom or similar solutions regardless of their location,” says Crabtree. “It comes down to your process and how you assess candidates.”

Here are tips from Deutsch and Crabtree on how to maximize the effectiveness of your remote job interviews:

Take Advantage of Video

Zoom, Skype and Go-to-Meeting, just to name a few, have been a boon to remote job interviews. Seeing the candidate is so much better than just interviewing them by phone. But beware. Sometimes the technology goes awry. One company we help had a bad interview session with a candidate because the technology was not working right. They were just going to throw out that candidate. That is a huge mistake. With our assistance, they re-interviewed the candidate when the technology was more cooperative.

“Know how stressful or intimidating panel interviews can be,” says Crabtree. “Make it fun and interactive. The attitude should be: ‘Let’s have a conversation and get to know each other. Let’s see how this dynamic will work and if you have the skills to do the job successfully.’”

Deutsch says the most difficult part of interviewing through video is that the process of conducting testing where you ask them to do something to validate the skill they are claiming, such as welding, electronic soldering, physical use of hands in a manufacturing, construction, or assembly role.

“This is now missing unless you bring them in a for a final test before hiring,” says Deutsch. “For all other roles, especially at the professional and managerial level, written tests, role plays, case studies, and situational examples are still important to validate, verify, and vet the candidate responses.”

For some of the knowledge or experience-based testing, there are online educational applications that can be used to proctor these tools.

Prepare Your Interview Questions

“I actually like video and audio interviewing compared to face-to-face interviewing because it tends to remove the bias and emotions most managers use in interviewing that lead to mistakes and errors,” says Deutsch.

When asking questions, focus on understanding their past experience about working from home as it is a different experience, advises Crabtree.

“Delve into self-motivation, organization, time management and development of work relationships,” says Crabtree. “Similar questions you would normally ask but looking to connect their skills and behaviors with the uniqueness of a work at home experience.”

Make sure they can keep themselves on track in a work at home environment along with making sure they could build relationships with their colleagues. There are many introverts in the world that struggle with the relationship piece. While that doesn’t mean you wouldn’t hire them, it gives the manager insight into the support that needs to be provided to help the individual be successful.

Make Sure Your Process is in Order

“If you need workers, using remote interviewing will help with the social distancing that is needed during this time,” says Crabtree. “You can successfully screen candidates remotely with the right process and tools and limit the in-person interaction.”

When she was a hiring manager, Crabtree remained flexible.
“Timing was no different whether someone was local or living in an out of area location,” says Crabtree. “We worked around schedules and determined the times that worked for everyone involved. Sometimes this was early in the morning, during lunch hours or into the evening. We stayed flexible because finding the right candidate was the most important driver of this process.”

Ask Deep and Penetrating Questions

“The top trait of success is initiative,” says Deutsch. “This is also characterized as proactivity or discretionary effort. Very few candidates consistently show that trait.”

According to Deutsch, the very best performers are constantly going above and beyond the call of duty, doing more than they were asked, anticipating, and always thinking one step ahead.

How do you measure this number one trait of success in the interview?

“A large part of hiring failure can be attributed to asking the traditional, standard, stupid, inane, canned interview questions,” says Deutsch. “If you want to determine if someone can achieve your desired goals, outcomes, deliverables, expectations, key performance indicators, and metrics, then you need a set of interview questions designed to extract that information to predict future performance and fit.”

Of course, don’t just rely on the interview. Also carefully check references.

Use an In-depth Work Style and Personality Assessment

Since you’re not meeting people face to face, the use of assessments becomes even more important.

“Never hire another candidate, especially a remote candidate, until you put them through an in-depth workstyle and personality assessment,” says Deutsch. He advises that it doesn’t matter the level of the position. You should test every final candidate.

“Anything less than five hours of effective interviewing is nothing more than closet psychology,” adds Deutsch. “You’re just guessing what’s behind the curtain.”

Yet, hiring for attitude, behavior, and cultural fit is just as important as measuring whether the candidate can perform to your expectations.

When Crabtree was a hiring manager, she had a solid multi-step process in place before she started hiring remote employees.

“After screening the resumes and a quick online assessment, there would be an initial phone call by the hiring manager,” said Crabtree. “If the basic qualifications were met, the candidate would then take an in-depth workstyle and personality assessment, which would help us understand that person’s workstyle and how they would fit into the team.”

Always Seek Top Talent

Remember, the objective of remote interviews is to find top talent.
Here is what Deutsch has to say about finding top talent: “Top talent is working; it’s rare that they’re unemployed so don’t pin your hopes on the resume database of a job board or rely on a recruiter that doesn’t have access to working candidates.”

The better you understand what makes top talent tick, the better chance you have of attracting them.

Deutsch went on to say: “Top talent is usually already well paid and working on amazing projects so don’t believe that paying more money is going to be enough to shake top talent from their current employers. Top candidates ultimately take new jobs because: the opportunity is terrific, they will be working for a boss they can respect, and the company is one they can respect and admire.”

Remember, remote interviews with candidates are a two-way street. Top talent candidates have many options. You want to assess if the candidate is right, and you want to persuade the candidate that yours is the right company for them. The hiring manager has an important job of communicating that during the remote interview.

Lighthouse can help guide your organization in designing and implementing a remote work force platform with the help of our practice specialist through our full service business consulting division For more information please contact [email protected] or call 310-453-6556 ext. 403.

A Final Thought: Supervising A Remote Work Force

We just did an outstanding webinar entitled, Supervising A Remote Work Force. You’ll find it to be very helpful and will want to share it with others!

Audio: https://lighthouseconsulting.com/openline/040720/OpenLine040720.mp3
Slides: https://lighthouseconsulting.com/openline/040720/OpenLine040720.pdf

Lighthouse can help guide your organization in designing and implementing a remote work force platform with the help of our practice specialist through our full service business consulting division. For more information please contact [email protected] or call 310-453-6556 ext. 403.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Time to Develop a Remote Workforce Strategy

By Patty Crabtree & Dana Borowka

Our work environment is evolving. Despite concerns about employee productivity, data on the American workforce indicates that the remote worker trend is picking up steam. Is it time for your business to embrace a remote workforce?

U.S. businesses are doing the math, and the math says the remote-worker option is a great opportunity for workers and employers.

Allowing employees to work from remote locations means a company can expand its talent pool from beyond its local geography. According to university/industry research viewed by Lighthouse Consulting Services, LLC, if the right person is selected his or her work production has the potential to increase by 30% to 300%. Obviously, hiring better workers that work remotely can result in increased productivity and client satisfaction.

For example, a Chinese travel agency saw productivity increase by 13%, and the US Patent & Trade Office (USPTO) reported that output increased by 4.4% when it transitioned to a remote worker program.

Sure, there are some who still are skeptical. In an August 2019 article in the Harvard Business Review (“Is it time to let employees work from anywhere?”), three professors raised the following concerns despite the remote worker movement growing in popularity:
In our experience…managers often worry about remote employees working less, or multitasking, mixing personal responsibilities with work. There are also concerns that allowing employees to work from anywhere could decrease communication and collaboration among coworkers and might constrain the informal learning that typically happens in the office.

However, the professors’ research demonstrated the advantages of a work from anywhere (WFA) program. “A key takeaway from our research is that if a work setting is ripe for remote work – that is, if the employee knows how to collaborate remotely and still do their job well – implementing WFA can benefit both the company and the employee.”

With effective productivity measurements in place, it does not matter if the employee is in front of you or not. Success comes down to ensuring effective communication, training and focusing on evolving your tools to support the remote workforce.

“Data indicates that the remote-work trend in the U.S. labor force is inexorable, aided by ever-better tools for getting work done anywhere,” according to Christopher Mims in The Wall Street Journal.

“Surveys done by Gallup indicate that in 2016, the proportion of Americans who did some or all of their work from home was 43%, up from 39% in 2012,” cites Mims in his June 2017 article titled “Why Remote Work Can’t Be Stopped.”

Points to Consider

Remote worker programs must be done right if you are to garner productivity gains and increase employee retention. As someone who has implemented these programs and now helps clients at Lighthouse Consulting transition to these programs, here are several points to consider:

Recruiting: Many companies struggle finding the right candidates for their organization. Having a small radius to find the right talent can add to these challenges. Opening up the geographic area for recruiting, creates a whole new talent pool. Recruit across the entire nation or target specific areas in the country where more candidates with certain talents may be found. Keep in mind, some states have tougher labor laws so research on the laws for each state is needed as you find candidates.

Interviewing: Interviewing can be done via video conferencing. If face to face is preferred, bring the final candidate to your office. It is important to have a strong hiring process that helps you identify candidates that fit the needs of the position and culture of your organization. This screening process is critical even if you are not hiring remote staff. Knowing your culture and how an employee will blend into the work environment is an important element of successful hiring.

Onboarding: A successful onboarding process ensures your new employee understands both the culture of the organization and their specific role. It is an opportunity to team build and to begin the process in developing strong working relationships with their new colleagues. Many companies will bring the remote candidate in for a period of time for the initial training and orientation. This gives the individual a chance to “get a feel” for the company’s dynamics in person along with making some face to face connections. Other companies will utilize video conferencing to manage the onboarding process along with activities to connect the new employee and other staff members. While learning their role and being productive are important out the gate, it is also essential to invest time in sharing your culture and building working relationships with colleagues. This helps the employee feel valued by the organization as they start in their new role.

Managing: Managers need training on how to successfully engage a remote workforce along with understanding the nuances of managing both office-based and remote staff in an equal way. It takes practice and discipline to ensure a manager is giving the same attention to remote staff as they would an individual that is 20 feet away from them. Policies such as “How often should the manager reach out to touch base?” “How do managers chair group meetings and engage remote workers in the conversation? “ and “What expectations should a manager set for participation of remote staff?” should be worked out before implementing a remote worker program.

One company required that all meetings be done via video conferencing including 1-to-1 meetings. Some staff members may be resistant to being on the camera though making this mandatory to participating in the remote worker program can help emphasize the importance of this connection. Reminding the employee that you see more of them in person than when they are on camera may help ease any anxiety.

Culture: A strong company culture is needed to ensure everyone is approaching servicing your clients and working together in the same manner. As you roll out a WFA program, one will need to review the organization’s values and consider how working remotely would impact them. Is collaboration important to you? Then, what tools would be needed to ensure successful collaboration continues? Is passion one of your values? If so, how would communication need to evolve to engage that passion when staff are in different locations?

Technology: Data security is the number one concern when it comes to technology. How should our servers be set up? What protocols should we use so remote workers can securely connect to our network? What equipment should a remote worker use? What about encryption? If we allow use of personal home computers, what are the risks? What about printing? How will phone access be handled? There are multiple solutions on the market today to support the technology needs of a remote workforce which makes it easier to implement this type of program.

Team Meetings: Team meetings continue as usual. Using video conferencing helps keep the group connected. The chair will need to keep in mind any delays from the video conferencing system (usually 1-2 seconds) to ensure people have a chance to share. There are a few approaches to support this type of environment. If an interactive process is warranted, the chair can ask each person directly for their feedback giving a “protected” space to speak. If this approach doesn’t work, the chair can pause and ask the remote staff if they have any feedback. The important element is to give the group chance to participate and a safe environment to speak up.

The Benefits of a Remote Workforce

Productivity will increase, staff will have a better work-life balance and they may be less stressed (not upset about being cut off on the way to work, or anxious over traffic making them late). You can reduce the footprint of your office space saving money, reduce the environmental impact of having all those cars on the road, expand your candidate pool of qualified candidates, build a stronger employee focused reputation, and open up employee referrals for potential candidates. Happier employees equal happier clients, retention of key staff members, and the potential for increased profitability.

Here is the Bottom Line

Employees need to be trained on how to transition into a remote worker environment and the expectations of their participation in the program. Managers need to understand the dynamics of supporting remote workers and the organization needs to ensure the proper tools and policies are in place for a successful work from anywhere program. In today’s world, a work from anywhere program is a viable solution for companies.

Lighthouse Consulting Services, LLC, has a consulting arm available to help with remote workforce programs. We can assist with recruiting and interviewing ideas, onboarding, managing, culture, technology, and supervision strategies such as team meetings and virtual collaboration. These can be parlayed with the other offerings from Lighthouse Consulting Services such as talent development, in-depth work style & personality assessments, skills testing and team building.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Patty Crabtree is a Senior Consultant at Lighthouse Consulting Services with over 25 years of operations and finance leadership experience as well as successfully leading and growing teams.  She was instrumental in the development of an operations infrastructure that resulted in consistent increased profits and employee engagement. Patty has also effectively navigated the challenges of change management in the ever-changing business world.

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style assessments to raise the hiring bar, so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”.  To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

Grow Your Business! 10 Winning Strategies for the New Decade

By Patrick McClure

Congratulations, and welcome to the New Decade.

Today we start writing the history of YOUR business in the 2020’s. What will it include? Will we see spectacular growth, stellar revenue production and champagne toasts? Or will your decade be filled with lost business deals, declining revenue and sour grapes? The outcome is up to you, and now is the time to plan for your future.

Much of the future is uncertain, of course, but one thing we know for certain. Every one of us just got a year older! And every one of our customers and prospects got a year older. Time marched on for all of us, and this means we need to recalibrate, refocus, and refine our plans. What worked in the 2010’s will need to change to match the 2020’s. And if we don’t change, we risk getting run over by the onrush of technology, ideas, and youth.

In this spirit, we’ve put together this article to help prepare you for the future decade. After considerable research (both past and future), consultation with our focus groups (including millennials and Gen-Z), and getting feedback from industry peers, we are now prepared to put together the following list of the TOP 10 WINNING STRATEGIES FOR THE NEW DECADE.

Here they are:

1. Correct Target Market & Cohort

There are 4 major cohorts in today’s Marketplace, and it’s vital that you understand these generations and the changing buying patterns they bring. Here’s a quick snapshot of the essential features:

You can’t sell anything unless you understand your target market and who is doing their buying. This means understanding the environment they grew up in, the events that shaped their lives, their age, what they’re challenged by, and what’s important to them.
It’s also important to document the buying process at your key prospects. Oftentimes, you will find the actual buyer is a Baby Boomer or a Gen X, but the influencers are really Millennials or Gen Z. Typically, the busy executive will have “someone on their staff” research new products or directions and bring back a short list of what they found. If you are not influencing these younger influencers, you might never make the short list!

2. Unique Value Proposition

We don’t sell products anymore, and we don’t really sell benefits. The world has gone way beyond product details (unless you’re selling highly technical products). Buyers today are constantly asking “What’s in it for me,” or what will it do for my business and my bottom line. This means we need to shift our focus to the Unique Value of our product or service.
If there’s nothing unique about our product, we need to go back to the drawing boards and figure out WHY people are buying from us. Sometimes, the best way to understand your unique value proposition is to ask your buyers.

The key is to understand your UVP, and then BRAND your product with it. And for heaven’s sake make sure that you solve an actual problem for your customers. Don’t make the mistake of creating a “me too” product that doesn’t really solve a problem!

3. Marketing across Generations

If you understand the generations, you’ll appreciate something called “screen size.” Baby Boomers grew up with the television, and some of them were there when color screens were first introduced. They viewed the world through the lens of a television screen, and they received news on 3 major channels only.

Generation X (age 38-54) grew up with television, but increasingly their attention shifted to computer screens. First the desktop with an attached screen of varying sizes, then in later parts of the cohort this transitioned into laptop devices. The screen became smaller, and cable TV was introduced which expanded the number of channels.

Millennials (age 25-39) grew up with laptops and tablets, but their screen now included cell phones which now included email, texting, and web access as well as making phone calls. The screen size was now even smaller. And the next cohort, the sons and daughters of millennials (age 12-25) can seamlessly split their time across all 5 screens but are mostly focused on their cell phones. Indeed, 46% of their waking hours are spent peering at their cell phone screen, which is now leading to multiple medical problems and cell phone addiction (nomophobia).

If important for marketeers to understand their target market and concentrate their efforts on the best screen for their market. If you’re selling to Gen-Z, then you wouldn’t spend your marketing dollars on printed brochures or email campaigns! Conversely if your target market is baby boomers, you wouldn’t feature google ads or gaming consoles. You must match your marketing dollars to the correct screen!

4. Selling in the “New Normal”

Sales today occur at light speed. Buyers are demanding short, concise, value-based branding and gives them an instant WIFM (what’s in it for me). Everything today has accelerated, and you don’t have time for complicated messages. Keep it direct, simple, relevant, and compelling and don’t waste your buyers time!

5. Replace Cold Calling with Warm Calling

The years of cold calling or cold visits are pretty much over. In fact, one of my associates has written a best seller entitled “Never Cold Call Again,” (Frank Rumbauskas) in which he argues that cold calling is not only ineffective, but it damages credibility and drives away potential customers! My advice is simple: if you’re going to be using the phone for sales, make sure you are making “warm calls.” Research your prospects in advance, know their names and their company, and figure out a way to make the call valuable and not a waste of time. Pre-stage your calls by sending a text in advance (if you know their cell phone #), research them on LinkedIn, and try to get a warm referral from an associate or networking partner.

6. Deliver what they REALLY want at light speed

Speed of delivery is incredibly important. Customers are used to near-instantaneous results. They can order product and have it on their doorstep the next day (Amazon Prime), they can purchase and download movies and play them NOW, they can have groceries and products delivered by Wal-Mart or Target within minutes. They are used to near-immediate gratification and simple interfaces. If you have delays in your order fulfillment process, your customers will not tolerate it. Fix it!

7. Use Free as a Strategy

I can remember marketing a Presentation Skills training course for a bargain rate of $499 for an entire day of training. It was a killer price and always sold out in the past! But after renting a hotel room and filling it with 3 attendees (OUCH) I did my research and discovered that one of my competitors was offering a one-day class that same day in that same town for FREE!

The new selling strategy has evolved. Savvy marketeers are now enticing customers to try it out for free or nearly free, and then making their margins on upselling the next step. For instance, SalesForce.Com (the dominant CRM vendor) will happily give away a version of their CRM software to individual users. You can download it for free and use it if you like, and it works just fine. However, when you expand and want to add users or implement more advanced features of the software, you must upgrade (for a hefty fee).

On the retail side, visit Costco and cruise their aisles, and you can try dozens of samples. Of course, this drives huge incremental sales. Ergo Free as a strategy can really work!

8. Replace Selling with Influencing

Millennials and Gen-Z do not like the term “selling.” No one likes to be sold anything, but we all like to buy. The modern sales model uses a lot of “influencers” to generate brand awareness and buzz. Many influencers have hundreds and thousands of followers, and when they endorse a product (via Facebook, twitter, Instagram, or shapchat) it can lead to massive sales and profits.

One of the biggest influencers in social media today are performers. For instance, pop singer Selena Gomez (age 27 net worth $75MM) has 123 MILLION followers on Instagram! BTW, the last we checked her fee for simply mentioning your product in a post (implied endorsement) was over $1 MM.

Of course, you may not be able to afford a superstar endorsement, but your sales planning needs to include a strategy to attract influencers and get their support for your product/service.

9. Take advantage of Technology

Of course, make sure you’re taking full advantage of any technology at your disposal. Depending on your target market, divide your sales & marketing budget accordingly. There are huge benefits to be tapped into with social media, web design, social media marketing, gaming, virtual reality, and online advertising.

10. Hire a Gen-Z or Gen-Y

In order to fully implement technology, my best advice is to hire a Gen-Y (Millennial) or a Gen-Z for your marketing department. First job is to have them review your marketing plan for 2020 and tell you what’s wrong with it! They will not back off from their honest opinions, and they’ll probably give you some great advice.

You might have to bite your tongue and learn to tolerate a younger brash employee who expresses their opinion freely with no filter, but it will be worth it. Especially if you want to connect with a younger target market, it pays you to listen well.

So, there you are! 10 quick strategies for survival in the new decade. Good luck and let me know your success with these tips!

Permission is needed from Patrick McClure and Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Patrick McClure is a senior sales consultant with Lighthouse Consulting Services, LLC as well as speaker, trainer and author who enjoys working with individuals and corporations to help them achieve maximum performance. He has dedicated his practice to helping others become more successful and specializes in sales training. To learn more and receive Patrick’s free newsletter, please email Patrick at [email protected]. Or call him at 310-453-6556, ext 415.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Overcoming Fear to Grow

By Paul David Walker, CEO of Genius Stone Partners

Each insight is a flash of seeing into the true nature of things, and leads to another, providing you act on the first; if you don’t, the spark dies, and an opportunity is missed. Being in “the zone,” simply described, is one insight after another acted upon in the flow of cause and effect. It is like dancing in perfect harmony with a band. Dancing to the rhythm and flow of the moment brings out our soul’s calling and our natural genius, both of which have yearned to be expressed most of our lives.

As insight expands it can create momentum and turn into a compelling vortex that draws energy like a giant storm draws air. There is an attraction that brings in all manner of opportunities as people, near and far, see a familiar intent and join an energy field that feels like their tribe; like going home again.

The key to creating a chain response of insights is our ability to act in the moment before the flash of insight fades. A professional athlete has the muscle memory from years of practice in a given sport to respond in this manner. But can business teams do the same? Why not? Most have years of experience in their business. It is a matter of practicing the art of connecting insight to action as a basketball player responding during the flow of the game. A team of athletes has to practice so that when opportunity presents itself, it is ready to act as a team in a fast break. Likewise a business team needs to do the same. This is the kind of team that wins.

Fight or Flight Syndrome

On the other hand, when we are fearful, we move into “Fight or Flight.” This will be engaged when we are attacked on the street as well as when we feel threatened in a conversation. Our ego does not seem to know the difference. Any threat throws us into this syndrome automatically. It is a primal instinct that as been very useful to our survival ever since we lived in tribes.

What happens when we are in “fight or flight” is our blood runs from our internal organs to our arms and legs to give us power to run or fight. Additionally, our consciousness narrows to focus on the threat. So instead of being in “the zone,” as described above, the opposite occurs. Tribal warfare erupts and the wisdom of the team is lost.

As they are often threatened, police officers train at least twice a month on the firing range and in other ways mainly because of this syndrome. Given this primal instinct they and their weapons become dangerous. They have to work hard to overcome this primal instinct, to enforce the law in a constitutional manner. The people who live in underprivileged inner cities who are often exposed to random violence find themselves
in “fight or flight” constantly.

Experts have tested children as young 7 years old and find they suffer from PTSD. Police officers trying to enforce the law, in neighborhoods full of people who are hyper-vigilant easily snap into fight or flight, is a deadly combination. How productive would your team be if they were exposed to constant threat?

Insight Drives Results

An insight is a combination of two or more ideas merging to create a reality previously unknown, vs. two or more personal realities needing to be right while being fearful. One has an expansive, curious, and inclusive feeling. The observer and the observed becoming one to uncover new realities, paths, and understandings. Fear creates just the opposite effect.

Fight or flight combined with another primal instinct the “need to be right,” can create “tribal warfare” with your company or team. Imagine a team of people who feel threatened and have a deep need to be right trying to solve business problems together. Only with practice do we learn to manage our primal instincts, but do not underestimate the tricks our egos can play on us.

Stimulate Insight And Action, Not Fights

Leaders have to work to inspire people to exceed their own expectations without putting members of the team into fight or flight. A company only grows as fast as those leading the company. Great teams question the status quo, and collaborate to understand new realities, then act on solutions that lead to manifestation. Yet most people feel threatened by change, so it is imperative that leaders manage the state of mind of themselves and the team. One of the CEO’s I work with, Celso Pierre of Goodridge Americas, developed the following values for his team to facilitate growth.

We Work Together To …

• Bring a sense of possibility beyond the status quo
• Examine possibilities until solutions emerge
• Align our intentions to drive solutions

As this example illustrates, a clear and compelling picture of the desired state is important. It is an aspirational statement that provides an understanding and a draw towards the ideal. A picture of a common goal creates insight as we succeed or fail that is self-correcting in a positive manner. Insights that uncover hidden realities that are successfully acted upon create engagement. The purpose is for you and/or your team, as observer of the ideal, to become one with it, then create a new ideal. Since a leader must confront old ideas to grow, this takes practice and skill.

The assumption that fuels insight is understanding that there is no limit to what we can create together. As an individual, I find that if I capture insights as they occur, not letting them fade, and take action, even deeper insights emerge. To facilitate this I always have my journal at hand to capture, understand and expand insights before the clarity fades. I allow time in my schedule to reflect.

So when I work with a team I set a safe context to avoid fight or flight, while asking people to reflect on new ideas before acting. Likewise a team should have time as individuals to reflect in a safe environment with the purpose of discovering “possibility beyond the status quo.” Business leaders who make this a priority tend to lead their sectors.

The Habit of Reflection

After a success it is easy for us to fall back into old patterns and primal behaviors, as individuals and teams. So it is important that personal, professional and business growth is the default setting. Insight into the true nature of things followed by action invents futures that provide strategic advantage. To win consistently we have to teach each other, and those that follow us, how to create a state of mind around insight that is similar to athletes “in the zone.” Each time I learn something my state of mind is lifted and I become committed to new levels of action. The same is true with teams. When creating insight is a natural habit, higher states of mind will drive intent and performance at all levels.

Paul David Walker, CEO & Founder of Genius Stone Partners, and works with domestic and international companies to improve their bottom line today and planning for the future. Paul is one of the few CEO coaches who has worked with numerous Fortune 500 CEOs and their key staff members for over 25 years along with many mid-cap organizations. Some of the organizations that Paul has worked with include Star Kist Foods, Von’s Grocery Stores, New York Life, Anne Klein, Rockwell International countless manufacturing, global utilities, service and consulting organizations. Paul is the author of the best selling book, Unleashing Genius and his new book, Invent Your Future – 7 Imperatives for a 21st Century.  You can reach Paul at [email protected] or call him at 562-233-7861.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020 This information contained in this article is not meant to be a substitute for professional counseling.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.  We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

 

Why You Need to Take Choosing Assessments Seriously

By Dana Borowka

Today there are approximately 2,500 personality tests on the market. So how do you decide which one to use?

On the upside, the testing procedure that a company follows can send a message to candidates that the company leaders are serious about who they hire. Successful people want to work with other successful people. In many cases, the candidate may accept a position from the organization they perceive to be more thoughtful during the hiring process.

On the downside, an organization risks lawsuits if it fails to do proper due diligence in assessment selection. That’s because there are a multitude of assessments available out there and the industry is totally unregulated.

Any company providing a personality assessment needs to address the number of scales they are using. A primary scale represents a personality trait. The more scales, the clearer the picture of the individual’s personality. We recommend having a minimum of a dozen scales.

“This is a topic that’s been researched to death by the field of industrial and organizational psychology,” said Peter Cappelli, a management professor from Wharton University who Ellen Borowka and I quoted in our third book, Cracking the High-Performance Team Code. “It’s kind of mind boggling that they would undertake such huge investments and not pay attention to what we know about how to pick out the people who are going to be the best.”

The Origin of Assessments

To understand how to choose from the plethora of personality tests, it is helpful to understand the origins of these instruments.

As early as 2,200 BCE the Chinese used oral examinations to hire and retain civil servants. In 460 BCE the Greek physician Hippocrates developed the first know personality model. At the turn of the 20th century advancements in understanding personality were made by Sigmund Freud, Karl Jung and Wilhelm Wundt.

But for me the real founding father was Raymond Cattell, an Englishman turned Harvard professor.

Cattell was born in a small town in England in 1905 and raised in Devon, where he spent his time sailing and experimenting with science. He received a scholarship to the University of London, where he studied chemistry and physics as an undergraduate.

Fascinated by the cultural effects of World War I, Cattell and grew increasingly interested in psychology. He changed his major and graduated from the University of London with a PhD in psychology in 1929.

Cattell was offered a teaching position at Columbia University in 1937 and moved to the United States. Cattell later joined the faculty at Harvard University at the invitation of Gordon Allport.

During World War II Cattell devised psychological tests for the military. After the war he accepted a research professorship at the University of Illinois where they were developing the first electronic computer, the Illiac I, which would make it possible for the first time to do large-scale factor analyses of his personality testing theories.

Cattell used an IBM sorter and the brand-new Illiac computer to perform factor analysis on 4,500 personality-related words. The result was a test to measure intelligence and to assess personality traits known as the Sixteen Personality Factor questionnaire (16PF).

First published in 1949, the 16PF profiles individuals using 16 different personality traits.

Cattell’s research proved that while most people have surface personality traits that can be easily observed, we also have source traits that can be discovered only by the statistical processes of factor analysis.

The Do’s and Don’ts of Testing

In 1963 W.T. Norman verified Cattell’s work but felt that only five factors really shape personality: extraversion, independence, self-control, anxiety and tough-mindedness. Dubbed the “Big Five” approach, this has become the basis of many of the modern personality tests on the market today. There have been hundreds and hundreds of studies validating the approach.

The five decades of research findings has served as the framework for constructing a number of derivative personality inventories. This is a topic that’s been researched extensively by the field of industrial and organizational psychology. Some clear dictates of what to do and what not to do have emerged.

Here are some testing do’s and don’ts when it comes to shortcuts:

The Do’s:

• Do use in-depth work style and personality assessments
• Do look for red flags in the results concerning behavioral issues
• Do use testing to identify how team members are likely to interact
• Do use testing to ensure you have the right people in the right positions
• Do use a trained professional to review the testing results with you
• Do make sure the testing company has a copy of the candidate’s resume and job description
• Do make sure that the testing company provides a feedback session with each profile

The Don’ts:

• Don’t use a basic personality screening that takes 20 minutes or less
• Don’t skip a phone interview
• Don’t try to shorten multiple face-to-face interviews
• Don’t skip background and reference checks, and never skip financial background checks when appropriate for the position
• Don’t skip giving someone homework during the interviewing process
• Don’t use a testing company that states in there narrative “hire or don’t” hire” — there are many factors that go into the hiring process and that is a misuse of data.

Managing a Better Way

Better assessments mean better management results too. Personality tests not only help when hiring, they just might be a manager’s best tool to connect with employees.

You can manage the hard way or the easy way, the choice is up to you. The hard way is to be the “my way or the highway” type of boss. You know the kind, always forcing workers to do things in a way that isn’t natural for them. Wouldn’t it be better to use your understanding of personality traits to tap into the natural flow, so you can get the best out of your people? Of course, knowing your employees, understanding their concerns, and developing connected relationships with them should be the normal procedure for all managers.

What is the payoff to a manager for developing connected relationships with employees using personality assessments? Here are three good benefits. First, it enables the manager to better anticipate what roadblocks might occur with a worker, and what to try to reduce this resistance. Second, understanding where employees are coming from will help you plan out how much participation you need from them, and will give some clues as to how change should be communicated to them. Third, building connected relationships builds commitment and loyalty.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar, so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

Is it Time for a 360?

By Dana Borowka & Carl Schroeder– Excerpt from the book, Cracking the Business Code

“A house divided against itself cannot stand.” 

We’ve all heard Abraham Lincoln’s famous statement (quoting Jesus Christ from Mark 3:25), and it has been passed down to us in many different forms. “You won’t win the game if you’re not playing as a team.””You won’t stay married if you and your spouse fundamentally disagree with each other.” And your company will certainly fail if serious factions exist within your corporate team. Success all comes down to team collaboration – harmony on the home front.

So, how do you determine if harmony and collaboration truly exist within your team? More importantly – and perhaps more terrifying – what if they don’t exist, and you are part of the reason? You do this by listening to your colleagues and direct reports, with a commitment to change if necessary. You run through the gauntlet of the infamous 360 assessment.

But before running the gauntlet, you need to decide if you’re really serious about wanting a 360 assessment. Don’t answer yes too quickly – there’s possible pain involved here. You see, like the view from a hilltop position with a 360 degree view, a 360 assessment will reveal strengths and opportunities, but it might also reveal weaknesses and threats. Sadly, many of us just want to hear the good stuff.

If you are ready to feel the burn, then strap on your helmet and get ready for a hard, but profitable ride.

“Do’s & Don’ts” of a Good 360

Do not perform the survey “in house” – Oscar Wilde said, “Man is least himself when he talks in his own person. Give him a mask, and he will tell you the truth.” If you truly want to know what your employees think, have a neutral, third party (like Lighthouse Consulting) collect responses and keep them in a lockbox. Employees will spill their guts with everything you wanted to hear – and more!

Let employees know you will use the results – No one wants to have their time wasted. Unless you plan to use the information gained in an assessment, don’t put your company through it. On the other hand, if your employees are convinced you really do care – that you will listen, and change, and fix, and improve – trust and collaboration will grow, hearts will be won, and (according to Gallup) profits will be increased. Tell employees you will use their responses.

“Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

360 Assessments, regardless of the type, offer a great way to make this statement possible, of course, patience is critically important. Rome wasn’t built in a day, the Golden Gate was not spanned in an afternoon, and you will not be able to handle all 360 degrees at once. But, if you are serious about the health of your team, they will sense it, and, over time, it will make a dramatic difference in the growth of yourself, your team, and in the end, your company’s profitability.

Lighthouse offers a number of 360 options ranging from telephone interviews to automated 360 systems. If you’d like more information on this topic, please call Dana Borowka, MA, at 310-453-6556, ext. 403 or email at [email protected].

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

Carl Schroeder has specialized in analytics and market research for over 25 years. His experience includes all forms of survey work and information-gathering, strategic sales and service territory development, and logistics improvements.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching.  For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

The Power of Focus – Expand Insight into Action

By Paul David Walker

Each insight is a flash of seeing into the true nature of things, and leads to another, providing you act on the first, if you don’t the spark dies, and an opportunity is missed. Being in “the zone,” simply described is one insight after another, acted upon in the flow of cause and effect. It is like dancing in perfect harmony with a band. Dancing to the rhythm and flow of the moment brings out our souls’ calling, and our natural genius, both of which have yearned to be expressed most of our lives.

As insight expands it can create momentum and turn into a compelling vortex that draws energy like a giant storm draws air. There is an attraction that brings in all manner of opportunities as the worlds, near and far, see a familiar intent and join an energy field that feels like their tribe; like going home again.

The key to creating a chain response of insights is our ability to act in the moment before the flash of insight fades. A professional athlete has the muscle memory from years of practice in a given sport to respond in this manner. But can business teams do the same? Why not, most have years of experience in their business. It is a matter of practicing the art of connecting insight to action as a basketball player responding during the flow of the game. A team of athletes has to practice so that when opportunity presents itself it is ready to act as a team in a fast break. Likewise a business team needs to do the same.

Knowing The Difference

An insight is a combination of two or more ideas merging to create a reality previously unknown. It has an expansive, curious, and inclusive feeling, even if stimulated by reading a poem, or seeing a painting. The observer and the observed becoming one to uncover new realities, paths, and understandings.

When ideas come from stored memory they seem to be cloaked with a “need to be right,” which prevents merging and expansion. It is like pulling the answer out of the internet or our past, the feeling lacks wonder, unlike a true insight. Only with practice do we learn the difference, but do not underestimate the tricks our egos can play on us.

First We Become a Team

The first step is becoming a team committed to each others success that knows each person’s strengths, weaknesses and potential. Each member of the team is committed to helping unleash each team player’s potential, the potential of the team, and business. This creates a safe field for innovation and exploration. Each understands and have expertise in their roles, and those roles synchronize to form a team ready to build on insight and act upon opportunities uncovered. This is a healthy high performance team.

Stimulate Insight

Once you have a strong team, as described above, it is time to stimulate insight and action. To do this the leader and the team has to question the status quo, and collaborate to understand new realities, then act on solutions that lead to manifestation. One of the CEO’s I work with, Celso Pierre CEO of Goodridge Americas, developed the following values for his team.

We Work Together To …

•  Bring a sense of possibility beyond the status quo
•  Examine possibilities until solutions emerge
•  Align our intentions to drive solutions

As this example illustrates, a clear compelling picture of the desired state is important. It is an aspirational statement that provides an understanding and a draw towards the ideal. A picture of the goal creates insight as we succeed or fail that is self-correcting in a positive manner. Insights that uncover hidden realities that are successfully acted upon create engagement. The purpose is for you and/or your team, as observer of the ideal, to become one with it, then create a new ideal.

The assumption that fuels insight, is understanding that there is no limit to what we can create together. As an individual I find that if I capture insights as they occur, not letting them fade, and take action, even deeper insights emerge. To facilitate this I always have my journal at hand to capture, understand and expand insights before the clarity fades. I allow time in my schedule to reflect. Likewise a team should have time as individuals and a team to reflect with the purpose of discovering “possibility beyond the status quo.” Business leaders who make this a priority tend to lead their sectors.

The Habit of Reflection

After a success it is easy for us to fall back into old patterns, as individuals and teams. So it is important that personal, professional and business growth is the default setting. Insight into the true nature of things followed by action invents futures that provide strategic advantage. To win consistently we have to teach each other, and those that follow us how to create a state of mind around insight that is similar to athletes “in the zone.” Each time I learn something my state of mind is lifted and I become committed to new levels of action. The same is true with teams. When creating insight is a natural habit, higher states of mind will drive intent and performance at all levels.

“Here you will find a treasure trove of distinctions, tools, and models that will allow you to engage people in a way that naturally harmonizes and enhances working with others—and that in turn advances the mission and purpose of the organization. More than that, you will be introduced to the thinking that guides and directs our most advanced leaders. There are years of learning available in Invent Your Future. Do not be surprised when, in the days and months to come, you find yourself referencing this book. It’s that good.”  — John King, Bestselling Author of Tribal Leadership

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Paul David Walker is a Senior LCS Consultant and one of the few CEO coaches who has worked with numerous Fortune 500 CEOs and their key staff members for over 25 years along with many mid-cap organizations. Some of the organizations that Paul has worked with include Star Kist Foods, Von’s Grocery Stores, New York Life, Anne Klein, Rockwell International countless manufacturing, global utilities, service and consulting organizations. Paul is the founder of Genius Stone Partners and works with domestic and international companies to improve their bottom line today and planning for the future. Paul is the author of the best selling books, Unleashing Genius and Invent Your Future – 7 Imperatives for a 21st Century. You can reach Paul at [email protected] or call him at 562-233-7861.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

How to Pick a Strategic Planner and Use In-Depth Work Style Assessments to Improve Planning Performance

By Dana Borowka

Scott Adams, the creator of the cartoon Dilbert, has lampooned strategic planning for years.

“I’m putting you on the strategic planning team,” announces Dilbert’s boss. “It’s like work, but without the satisfaction of accomplishing anything.”

There is a grain of truth in Dilbert, because strategic planning can fall short without the right facilitator and approach.

“Planning is simply not that hard; but finding a great consultant who can help you get a great plan written, and implemented, is critical,” says Steven Phillips.

Phillips has built an enviable reputation for his strategic planning. He is a sought-after speaker for conferences and organizations worldwide. He has solid advice on how to choose the right strategic planner.

“Too many times consultants will lock themselves up, do amazing analysis, offer up a plan, and then it sits on a shelf and never gets implemented,” says Phillips. “The secret to getting the plan implemented is to take a high involvement approach with the senior team while creating the plan. Consequently, hiring a consultant who will be seen by your senior team as credible and likeable is very, very important.”

Some consultants say it is critical the strategic planner you hire should know the industry.

“Choose a strategic planning resource that knows your industry and is willing to understand how your existing capabilities are or are not capable of achieving the strategy,” says Paul David Walker, a strategic planner with specialized expertise in many industries.

“If they produce the ideal strategy vs. one that works for your existing talent, then the plan will just gather dust,” adds Walker.

Beyond the Standard Screening Criteria

The standard screening criteria when selecting a strategic planning consultant is experience, results, references, and chemistry/fit.

Barri Carian, a former senior executive for two Fortune 500 companies who has been a partner or in the embryonic stages of three start-up companies, is a strategic planning consultant who believes in today’s fast paced and disruptive world there are two additional areas companies should pay attention to in their selection.

“The first is can the strategic planning consultant take us through a deep dive into the trends that will impact our future success?” she asks. “This includes societal (demographic and psychographic), industry and technology trends. Strategic plans that do not take these trends into consideration will not serve the company well.”

For examples of those who didn’t take trends into account think Blockbuster, the music industry, the taxi companies, and Kodak.

“Second, the plan must be executable.,” adds Carian. “So often, strategic plans sit on a shelf never to be referenced again. Or they are so lofty, it’s overwhelming and companies don’t know where to start. Can the strategic planning consultant help you operationalize the plan? That means prioritizing initiatives, assigning owners or champions, breaking large strategic initiatives into smaller bites and developing systems to track progress and removing obstacles.”

The challenge, says strategic planning consultant Marc Emmer, is that a lot of consultants are generalists. Many are very good facilitators, and they may or may not be true strategists.

“If you really want a formal, strategic plan based on research, it may be worth your while to hire a strategic planning firm, that has the resources to run a true strategy process,” says Emmer. “The first thing you should ask potential consultants is how many strategic plans have they written? How companies have they facilitated strategic planning meetings for? If they have done ten or twenty you might wonder if they have enough experience to help you.”

If they have many practice areas such as leadership or process improvement, you should consider if they are focused enough on strategy to be any good at it, advises Emmer.

“Finally, ask to see the tools and processes that they will use to ensure your team has an actionable plan that can drive competitive advantage,” adds Emmer, who recently published his second book, Momentum: How Companies Decide What To Do Next.

“People who understand strategic planning and do it well view it as central to their evolution of a company and the source of competitive advantage,” adds Emmer.

Insight Leads to Better Strategic Planning Team Performance

After a strategic planning consultant is selected, in-depth work style and personality testing can be a valuable resource for the strategic planning process. The true value of any assessment comes in using the insights it provides. Personality assessments lend objectivity to decisions that may otherwise be largely subjective.

Here are five ways to use in-depth work style and personality testing for strategic planning:

1. Get the real picture when choosing strategic planning team members. Naturally all candidates for your strategic planning team want to put their best foot forward. However, through an in-depth work style and personality test, you can uncover a great deal about their ability to work well with other personalities, their problem-solving abilities, their thought processes and their ability to tolerate stress. This testing gives you objective information that can help you make an informed decision about whether these candidates would be good fit for the strategic planning team.

2. Help team members be all that they can be. Everyone has strengths and weaknesses. Find out the real truth with an objective measure. Once you pinpoint the good and the bad, then you place them in the right positions and coach them on where to improve.

3. Treat team members the way they want to be treated. In today’s fast-paced world of business there is little time to get to know many of your coworkers. Using in-depth work style personality assessments as the basis for team building exercises can quickly get everyone to have a healthier respect for other ways of seeing the world.

4. Make strategic planning leaders better team leaders. When team leaders understand what makes their people tick, then they can be better leaders. Knowing the work style and personality traits can help with stressful planning sessions.

5. Set up strategic planning teams for success. Sometimes we hire the right employee and then give that person the wrong job. Understanding preferred work styles and where a person would be happiest goes a long way to improving retention and productivity.

A proper test should reach beyond simple profiles and decipher an employee’s underlying needs. This is key for team building, conflict resolution, and succession planning. Some tests only use five or eight traits to make an assessment; this is not enough. We recommend a test that utilizes the full sixteen traits to get a complete picture of the person.

A final thought: once you have used assessments to pick the right team, it might be a shame to use them only once a year.

“My view of so-called strategic planning is that today it is less an event and more an ongoing conversation,” says Larry Cassidy, a group chair with Vistage International for 30 years. “The most effective organizations are evolving, and for me that moves viable strategic thinking away from being an annual event and toward an ongoing conversation.”

Robert Scherer, president of TAG, an outsourced accounting and software solutions firm, believes that in order to maximize the likelihood of executing a strategic plan that attention to detail and follow-up are critical.

“Over the years, TAG has worked with many companies in various stages of their strategic plan, with many attempts to accomplish too much in one year,” Scherer said. “With planning it’s better to break down goals into shorter sprints, as it puts more urgency and focus on your goals, which defaults to a more agile approach.”

Trends to Take Into Account for Strategic Planning

Before his consulting career, Marc Emmer spent over 20 years in the food business, in operations, marketing and business development. Emmer, who writes regularly for Inc. magazine, offers these trends to take into account in your strategic planning:

• Get great tax planning advice now.
• Have a nimble strategic plan, that can change on a moment’s notice. Review it quarterly to ensure you are in a position to seize the opportunities ahead.
• Invest in technology. Ask of your management team, how is technology a strategic advantage? If your team doesn’t have the chops to answer the question, find the people who do. Weave technology into your strategic plan.
• Hire people before you need them. If the economy continues to heat up, and unemployment levels off at 4 percent or so, it’s going to be nearly impossible to find talent.
• Be a best-in-class employer and push the envelope on providing a flexible work environment (including virtual office space).
• Utilize collaboration tools that allow you to provide your team the ability to be effective, in any location at any time.
• Execute flawlessly. Given the rate of change, customers expect on-time delivery, great quality and seamless communication. Utilize agile principles to ensure your team can pivot quickly to meet evolving customer demands.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

LinkedIn 4.0 – Learn About Accelerated Connectivity Like Never Before

By Rick Itzkowich

When people ask me how I became the “Rick I – The LinkedIn Guy,” I take them back to 2007. When the recession hit, I was searching. Like most people who originally sign-up for LinkedIn, I wanted to generate new referrals. Connecting on LinkedIn was free so I signed up. But quite frankly I had no idea what to do with it. And I didn’t do anything with it other than invite a few people to join me on it. That was the extent . . . for a while.

Then one day during my BNI – Business Networking International chapter meeting, a member requested an introduction to an individual. Since I didn’t know the person, I wrote down the name. I thought to myself, “Maybe they’re on LinkedIn.” I went back to my office, and I did a search. And sure enough I found him. To my surprise, I not only found him, but I also found that he was connected to two other people that I knew. I asked these individuals if they would be willing to facilitate an introduction. One of them introduced me, and I got my first taste of the awesome power of LinkedIn. The short story is that my BNI colleague ended up doing substantial business with this person, and that’s when the light bulb went on. The purpose of LinkedIn had worked through me in a big way. I began to realize it’s tremendous potential.

Technology is a means to an end—not an end in itself. New technologies emerge all the time. And this can be totally overwhelming. But, there are certain aspects of technology that are allowing us to advance in our networking. LinkedIn is a valuable technology that offers speed and convenience in today’s busy business world. It fosters relationship building and the ability to start conversations with people based on your connection.

LinkedIn gives you insight and visibility into the connections that people who you know have. It offers you this untapped potential that most people do not even know they have available to them. Plus, it helps you organize useful connections for you and those you know.

Here’s an example. Let’s say somebody who wants to meet Mike Smith doesn’t know that I know Mike. But they do a search on LinkedIn, and they find out that Mike is a second-degree connection to me, Rick Itzkowich. They ask, “Hey Rick, I see that you’re connected to Mike. I’ve been trying to connect with him because of his asset protection specialty. Do you know him?”

I can tell that person, “Not only do I know him, he worked on my estate plan. Let me introduce the two of you.” Before LinkedIn, they didn’t know that I know Mike, and I didn’t know they wanted to meet Mike. LinkedIn makes that possible in a very logical and reputable manner.

Now, there are three potential obstacles that need to be acknowledged so that the intention of LinkedIn is not misunderstood. First off, people mistake LinkedIn for a traditional sales channel. They assume that you meet people on LinkedIn to direct sell to them. They think it’s Facebook for business and may engage in an unprofessional manner or use pushy sales tactics. As LinkedIn is all about nurturing relationships and building your credibility and trust with your connections, a direct sales strategy creates ill will.

Another factor to consider is that you do need to spend time on LinkedIn. Not a high volume of time — just putting in 30 to 45 minutes per week can pay off big time. I like to allocate just 10 minutes a day. I might send out five invites to connect and write two recommendations for colleagues over my second cup of morning coffee.

The last obstacle is that there is no LinkedIn guide, and unfortunately there is a ton of noise out there about how to make LinkedIn work.

Let me offer ways to avoid those obstacles: focus on your profile, network, and activities. You need to have an effective profile. Be sure you include a professional head shot and in your profile copy speak to your audience in the first person about what sets you apart in a way that doesn’t read like a resume. Keep your profile complete and up-to-date, as it is your mini sales webpage. You need to build a large diverse network. Send out invitations. Ask for names and add them to your LinkedIn. Discuss LinkedIn so others know to find you there. Your activities need to have some congruency as well as a strategy for growth. If you already did an impressive job of having a thorough profile that actually targets specific things related to what you are wanting to accomplish, complement that by actively staying involved on LinkedIn and clearly speaking to target individuals. This way, others feel like you are real, that they know more about you, and that you know what you are talking about in your industry.

I’ll let two Vistage Chairs tell you in their own words how my LinkedIn guidance worked for them:

“I am in countdown mode for my upcoming event. Of my 31 RSVPs, all but two, are from LinkedIn. Your system rocks and worked perfectly for me, especially since my husband and I have only been in Scottsdale since September. You rocked IT! The referral system and my tenacity with LinkedIn outreach has given me a good start. I am anticipating 20 out of the 31 who signed up. Thank you for introducing your system to me. It’s been a terrific experience.”
—Susan Giles Bischak, Vistage Chair

“I did two sessions with 17 referrals and [received] three immediate responses. One appointment for one-hour worth of work. Priceless.”
—Tom Rodell, Vistage Chair

These types of results are typical when you have guidance on how to tap into the power of technologies such as LinkedIn. Furthermore, you can link other technologies and find more relationships to foster. With the mindset of a technology-empowered connector, you keep your connections alive through referrals.

In addition, LinkedIn supports trust-building and that’s why it’s effective when it comes to referrals. LinkedIn is used as a first point of referral contact that gives you visibility and reach. For my line of work, when I meet somebody offline, my first action is to send them a LinkedIn invitation to connect. I use LinkedIn to gather some basic information, and then use my invitation and LinkedIn’s messenger to start a conversation. Once we are connected, LinkedIn allows me to be visible to that person’s connections as well as allows me to search for professions connected to my new contact. Essentially, LinkedIn is a giant database that allows you to find more targeted people via a variety of filters. As you can see, if you use LinkedIn effectively, it will give you the opportunity to identify mutual connections and people you want to do business with.

Lastly, LinkedIn’s feature of being able to give people recommendations adds trust. A recommendation on LinkedIn is different from many other places because it can be traced back directly to the individual. If you leave me a testimonial, somebody can click on that and know that you exist. They can read your profile, which gives them confidence that this was a real recommendation, a real testimonial as opposed to one that was made up. In addition, you cannot change a single word of a recommendation or testimonial, which adds validity.

So, it’s not just having your profile up on LinkedIn, but it’s utilizing LinkedIn to the max. I am happy to give you my How to Monetize LinkedIn in 10 Minutes per Day guide at no charge. Click here to download the 15-page PDF or paste this into your browser: http://ntwrk.biz/monetizelinkedin

In closing, let’s connect on LinkedIn! Send me an invitation at www.linkedin.com/in/ritzkowich and feel free to ask me questions.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Rick Itzkowich (It’s-ko-witch), aka “Rick I – The LinkedIn Guy” is a Vistage Chair and founder of 501 Connections, Inc., a San Diego-based business, networking, and referrals coaching company. Rick is a genuine people connector. He helps people bridge the two worlds of face-to-face and online networking. As an official member of the prestigious Forbes Coaches Council and successful entrepreneur, Rick coaches, writes and creates turnkey products that meet today’s demand for tools to increase profits through referrals. His products QuoteActions, Link Power Now and Rock-IT! Referrals have generated millions of dollars in revenue for businesses worldwide.

Rick is a sought-after author and speaker. He presents to a diverse group of sales, networking and professional organizations, and is a regular SCORE® speaker. Internationally his YIKES! LinkedIn workshop earned the Best Speaker Award at the Dubai “You Learn Twit Face” social media conference. As a former CEO and business owner of two successful companies, one manufacturing and the other in professional development, Rick has logged more than 30,000 hours of corporate training. Rick was born and raised in Mexico City. He speaks five languages and has traveled to 43 countries facilitating learning vacations. He resides in La Jolla, California. And, in his spare time Rick plays on a nationally ranked tournament baseball team.

Contact Information: Rick Itzkowich, Vistage Chair, Entrepreneur, Speaker & Author, (858) 456-7653, [email protected], www.rickitzkowich.com, LinkedIn: www.linkedin.com/in/ritzkowich, Twitter: @thelinkedinguy

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.  We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.