Synchronization: The Key to Business Success

Your business operates much like the human body.  It is an integrated, interdependent whole that needs all of its functions working in tandem to make you healthy and fit.  Yet, most businesses today operate as though each segment of its operations were an independent organism, with its own goals, processes and results, many times leading a company to failure.

Recently, I was talking with a major corporation lamenting that they were implementing all types of programs to grow their business, yet were having dismal results.  While they were aware that its units were operating as silos, they felt they were taking steps to improve that situation. 

Training was the focus that would turnaround the company’s mindset.  Marketing had created a series of multi-media presentations on all their products and were put online so each employee could view them at their convenience.  Compliance, following in their steps, purchased a webinar series for different segments of the firm to ensure everyone understood the issues in their highly volatile environments.  Training was at the forefront of the company’s mission and vision for the organization.

So why wasn’t it working?  Nothing was really changing and no one knew why.  We decided to investigate and decided that we needed to get input from all levels in the organization, especially those on the front lines.

It was decided that a series of informal meetings would be held, with the goals of determining what was limiting the company from growing.  They were set up outside the office as breakfast meetings, with representatives from the various departments.  A very likable, approachable and respected member of the senior staff was coordinating the meeting, and started the meeting with “we need your help, your insight and your suggestions on any and all topics that may be an impediment to our growth.”

When the issue of not understanding the full range of products and services arose, the marketing department asked why their multi-media presentations were not helping.  The answer—about 75% of the audience stated that their computers did not have sound, so no one could listen to any training created or any webinars offered outside the firm.  After investigating it was found that over 80% of the company’s computers did not have sound cards.

This was only one of many issues that were brought up at the meeting that showed that programs were not coordinated, departments were not working together and feedback was not part of any program.

Many companies have lost, or may not have developed, the ability to look at the entire organization as a comprehensive whole.  The focus over the years has been to segment—to look at each function of the organization as a separate entity.  The end result is a company consisting of silos---all with their own goals, processes and even cultures.

The amount of resources that are squandered by not synchronizing operations is extraordinary.  The Standish Group does a report called the Chaos Chronicles which is based on 8,380 projects with 365 respondents.  In that report it was stated that only 34% of projects are successfully completed, 51% were challenged (failed to meet schedule, budget or target scope) and 15% totally abandoned.

How well does your company synchronize operations? And what could your company achieve if you synchronized all functions more effectively?  Think about what that would mean to your bottom line.

Diane Weklar is the president of The Weklar Consulting Group.  She is an expert in synchronizing marketing and business operations to accelerate company growth.  For more information, contact Diane@Weklar.com.

Free Seminar: Helping You Grow Your Business

To rsvp, contact Irma Flores (951) 637-1460

You, Your Business and Tax Law Changes

The transition from 2011 to 2013 promises to be a rocky one in the tax world, as we move through the 2012 election year with a extremely partisan debate over the future course of the federal tax system and federal budget in general.  With expiring tax provisions, new health care taxes, and estate taxes back, tax planning is highly advisable.  Here are some of the changes to be on the lookout for:

The New Hire Retention Credit was originally created as an incentive to hire unemployed workers in 2010.  Now it is to help retain the newly-hired employees for whom the hiring exemption was claimed in 2010. The new credit is allowed for such employees who remain an employee for 52 consecutive weeks.  The credit is the lesser of $1,000 or 6.2% of wages paid by the employer to the retained qualified employee.

Congress has repealed the 3% withholding requirement that was scheduled to take effect in 2013 for all payments to government contractors providing property or services to a federal or state/local government agency.  In addition, the new law extends and expands the Work Opportunity Tax Credit (WOTC) applicable to qualified veterans.  This credit applies to any veteran who served for more than 180 days. 

An employer may offer his employees a “simple cafeteria plan” for the years after 12/31/10. Such plans are granted a safe harbor for meeting non-discrimation rules that generally apply to cafeteria plans.  Remember, cafeteria plans are not available to partners, LLC members or sole proprietors.  Nor can they be offered to S corporation shareholders owning over 2% of the company.

Employers will be required to disclose the value of the employee’s health insurance coverage sponsored by the employer, starting with the 2012 W-2s. 

The American Recovery & Reinvestment Act temporarily shorted the built-in gains tax waiting period for corporations that switch from a C to S status to 7 years from 10 years.  The new law, changes the waiting period even further, providing that no BIG tax is owed on built-in-gains recognized in tax years beginning in 2011, if certain provisions are met.

100% bonus depreciation remains in effect for 2011, but drops to 50% in 2012 and is scheduled to disappear altogether in 2013, with an exception for certain “long-lived” property.

Maximum section 179 expense (for fixed assets) drops in 2011 to $139,000 (from $500,000), futher dropping to $25,000 for tax years beginning after 2012. 

For decedents dying in 2010 and 2011, the estate tax applicable exclusion amount is $5 million.  For deaths in 2012, the applicable exclusion is inflation adjusted to $5,120,000, with the maximum estate tax rate being 35%.  In 2013 and beyond, the transfer tax is scheduled to return giving us a top rate of 55% plus 5% for certain estates, and a $1 million exemption.

Phoebe Vausher-Frankeberger is a partner with Frankeberger Vausher + Company, CPAs which is located in Chino Hills.  She can be reached at 909-597-1100 or at PhoebeF@FVCPAs.com

NAWBO-IE Affiliate CREW-IE Hosts Event February 1

Register at www.crew-ie.org

Attention Subcontractors...Event in Victorville 1/12/12

Social Media Sensation: Creating Buzz for Your Bottom Line

Social media is becoming a key ingredient in the marketing recipe for your business. There are opportunities and measurable results for businesses of all sizes, and companies are taking notice. According to current research, social media marketing is set to increase at an annual rate of 34% over the next five years, outpacing all other forms of online marketing. In fact, the expected growth rate for social media marketing is nearly double the average growth rate for all online mediums. There's a reason so many companies are increasing their social media budgets - it's proven to be a very effective tool for reaching customers on a new level. Having an active social media presence can help your bottom line, and there are a host of other benefits:

• Interact with your customers directly: Social media gives you a chance not only to engage your customers one-on-one, but you can also hear what they say about your company online. Make sure you take advantage of that opportunity, but don't react harshly to criticism you may see. Every action you take online will be seen and remembered. A great reputation can be spoiled with one misguided post made in the heat of the moment. Build trust for yourself and your brand by consistently adding valuable content, and handle your following with a PR-friendly voice.

• Own your company's social presence: If you don’t already have your own Twitter and Facebook accounts, get them before someone else does. If people make their first contact with your brand online, be sure that you have control over the message. 

• Look like you're "with it": On Facebook alone, there are over 400 million users spending over 500 billion minutes per month on the site, and those numbers are consistently growing. Your target audience is becoming more and more likely to have social media use as an integral part of their daily lives. Customers are twice as likely to do business with someone they identify with. If you're not on Facebook, your customers might wonder if you really "get it".

• Get great feedback on your business: Better than the results of any survey you could send out to your clients is listening to their reactions online following the release of a new product. With social media, you don't have to solicit for responses - something that can often result in misleading data. If you're engaged in social media forums, you'll have your fingers on the pulse of what is really going on with your business, and how people are reacting to it.

• Establish yourself as an expert in your field: Your company profile is a fantastic opportunity to post about your company's activities, as well as relevant news and trends occurring within your industry. By gaining lots of followers and displaying your expertise, people will begin to identify you as a "guru" in your field. This will ultimately lead to people being more likely to trust you (and therefore do business with you!).

Christine McDannell is Co-Founder and President at Social Starfish. Find out more at www.socialstarfish.com  Christine will be presenting at NAWBO-IE's January 19, 2012 meeting.

NAWBO-IE Hosts Holiday Mixer December 6

Be sure to register at: http://nawboie2011holidaymix.eventbrite.com