10 Tips to Bottom Line Up Management
By Rich Russakoff and Mary Goodman

Bottom Line Up management is common sense but not often common practice. For Stage 1 Entrepreneurs, many of these tips will be new and compelling. For the more seasoned Entrepreneurs, we hope they will provide the impetus to remain connected and to check that their systems are current, effective, and complied with. We’ve selected these tips through the filter of WIN – What’s Important Now!

1.    CEO: think of it as an acronym for Cash, Equity, & Operations. It’s the CEO’s job to make sure the company has enough cash to meet its obligations, build equity, and maximize profits through operational efficiency and excellence.

2.    Scrutinize your large &/or past due receivables. Are there any accounts deceivable? Even if the economy has little or no impact on your business, some of your customers may not be as lucky. We doubt that Circuit City or Mervyns were completely current with their vendors and suppliers when they closed their doors.

3.    Create Profit focus through Margin Focus. Just as sales are the leading indicator of revenue, gross margins are the leading indicator of profitability. You get the behavior you exhibit, expect, tolerate, and reward.

4.    Identify profit drivers, not just revenue drivers. Incorporate the profit drivers into bonus and commission structures.

5.    If looking for bank loans, consider smaller, community business banks. They may be more aggressive and accommodating. They’re under less regulatory scrutiny right now and therefore may have fewer constraints.

6.    To reduce debt, follow these three steps: 1) Get cash flow positive. 2) Don’t add to debt – keep current on payables. 3) Prioritize by balance size. Pay as much as possible to the smallest balance, when that’s paid off, roll that payment amount into the next smallest balance, then roll both those payment amounts into the next, etc.

7.    Waste erodes profit. Know the impact that it has on your bottom line. If you have a 10% profit margin, for every $1000 in wasted expenses, you have to generate $10,000 in additional sales just to break even. And if you are operating on a 5% profit margin you need $20,000.

8.    Set targets and ranges by P&L expense line. We like to display them similarly to the way blood work is displayed from the lab. It’s bolded and highlighted if it’s outside of range. This creates a smoke alarm. Sometimes, there are reasons for it. Other times, it’s a red flag that needs investigation and/or intervention.

9.    Go deeper with your customers. Identify your niche and dig as deep as you can. This is imperative to survive and thrive in a retracting economy. Just like trees in a storm, those that grow wide and shallow will be uprooted while those with deep roots will continue to stand.

10.    Connect to the customer. Talk to them, and not just to sell, service, or solve a problem. Use specific and disciplined dialogue: What can we do to make it easier for you to business with us? What can we do to create a better buying experience for you? What other problems do you have? It stands to reason that if you’re trying to create solutions you should talk to the people with the problem.

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By Verne Harnish “Growth Guy”

One of India’s wealthiest business leaders, Anil Ambani, invests $325 million in Steven Spielberg’s movie studio DreamWorks – something unimaginable just five years ago.  In turn, Warren Buffett invests $230 million for a 10% stake in Chinese electric car manufacturer BYD, the same investor who shunned technology investments earlier this decade.  It’s obvious the top entrepreneurs and investors understand that India and China are the future of our global economy.  Do you?

With over 1 billion people moving into the middle class, effectively increasing the global market for products and services by 50% over the next decade, can your firm afford to ignore the single largest market opportunity in the history of business?   It’s time you consider “going east” as part of your 2010 strategic plan.  And it’s as critical for small to mid-size firms to make the move as it is for top investors and large corporations.

Made It In China

Two entrepreneurs helping others make the leap are Graham Jeal and Simon Cann, authors of a new book series entitled Made It In….  Graham, a British-born entrepreneur who has been building companies in China since 2001, is the former president of the Entrepreneurs’ Organization (EO) chapter in China.  Cann, a prolific writer, has been a management consultant to companies spanning the music, entertainment, and broadcast industries.

I met Graham and Simon on my last trip to China and was impressed by their enthusiasm and initiative to encourage others to leave the comfort zone of their own markets and venture out into some of the leading business hotspots around the globe.

In their first book, Made It In China, they feature specific lessons learned from nine entrepreneurs including Graham, who have built manufacturing plants, launched internet businesses, started hotels and restaurants, and created large sales organizations within China.  One of the entrepreneurs was even the first foreign participant on China’s equivalent of “The Apprentice.”  In all cases, these entrepreneurs left their home countries and built businesses in a culture different from the own – and their stories are both inspirational and instructive.

Other countries in the series include Vietnam, Russia, and Kazakhstan with more in the works.  I encourage you to go to their website www.MadeItIn.com to learn more.

Coming with Quality

Another must read book for growth firms wanting to dominate their industry is Hermann Simon’s Hidden Champions of the 21^st Century. I was speaking with Hermann Simon upon his recent return from China.  He brought news that Chinese firms are focused on building competing quality products that will challenge even Germany’s lead in many export areas – and that they are building factories in Germany and the U.S. and other parts of the world.  They want to get “in our backyards” before we get in theirs!  And with over $2 trillion in surplus cash vs. a projected U.S. 2010 $14 trillion deficit, they have the financial muscle to do it.

No longer will the “Made in China” label mean low cost or low quality.  Their entrepreneurs are hungry to learn from the best and bring their business models, products, and services to other countries.

India is aiming for the same upgrade to their brand.  Seen primarily as a cheap supplier of back office functions, they are building global brands and bringing their products, like the $2500 Nano car, to the developed world.   And with one of the youngest populations in the world, India is well poised to incubate entrepreneurs that will be hungry to get into other markets.  Again, it will be crucial for established businesses to plan their India strategy for next year and beyond.

Wholly Owned Subsidiaries

Hermann Simon notes, based on his research of the world’s top mid-market companies, that they almost always set-up wholly owned subsidiaries vs. licensing or joint venture relationships.  It’s been critical for these firms to control their brands and have their own people “on the ground” in other countries.  And they tended to expand into one or two different countries each year, with many now having operations in over 50 countries.

When these “hidden champions” are asked which countries they’re focused on for the next decade, it is India and China.  And while it might be too late for manufacturers outside these countries to make inroads as quickly, the customer service models and cultures of the west will not be easy to imitate by the eastern entrepreneurs.  This is the distinct advantage, plus a long history of good management practices, that entrepreneurs in the west have as they pursue these eastern markets.

Read the two books mentioned above and make 2010 the year you focus on the east.

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“…keeping you great”

HEADLINES: (Growth Summit Highlights Day 1, 2 minute interviews)

Best News from Jim Collins — THE question that got the attention of a lot of entrepreneurs and their teams in the room last week was when Jim was asked whether founders were able to actually build a company beyond start-up i.e. would they be able to go from telling time to being clock-builders. And the answer is yes!! In the great companies it was NOT the case that the entrepreneur had to be replaced with professional management. Whew! This was reinforced with Hermann Simon’s research that the tenure of the founder/CEO in Hidden Champions was over 20 years.

Jim Collins’ Top Ten Books — Jim spoke for over 3.5 hours, so difficult to summarize everything, however, here’s a link to a short 2 minute interview I conducted asking him about the specific disciplines necessary to build a great company. There is also a lengthier interview available as well — both in the right hand column at www.gazelles.tv. And below are listed Jim Collins top ten recommended books and top ten courses.

Aubrey Daniels takes on Dan Pink — Aubrey carefully corrected Pink’s assertion that traditional rewards can’t drive creative thinking — here’s the link to a short 2 minute interview where I asked Aubrey to elaborate on his Dan Pink comments (www.gazelles.tv — in the right hand column). More to Aubrey’s point, most reward/compensation schemes are useless in driving performance since they are not reinforcing to the performer, whether it’s highly creative problem solving work or routine process activities. What does work all the time are PICs — Positive, Immediate, and Certain reinforcers. The best example? A scoreboard!! That’s why the BHAG video scoreboard, posted where everyone can see it at Australia-based Red Balloon, is such a powerful tool. Go to right hand column of www.gazelles.tv and look for the “BHAG — Red Balloon” video to see their BHAG scoreboard.

Theme/Celebration for 2009/2010 — and to add a little spice to the Growth Summit, we featured Gazelles customer Wide Open Baja (Christian Hammarskjold, CEO) and one of their $100k high-performance off-road vehicles. If you’re looking for a reward for your team for doing a great job, a place to host your strategic planning session, or a customer appreciation event, it’s one of the best I’ve found. Check out their executive excursions and Horsepower Ranch at www.wideopenbaja.com NOTE: Gazelles isn’t receiving any compensation for this — we’re just enthusiastic supporters since we know how hard it is to come up with fun executive activities and rewards.

Do you need expert assistance constructing a winning plan for 2010? — At the Summit, Jim Collins talked about how the best companies are actively taking advantage of the current market conditions to come out as big winners. Are you playing to win in 2010 or not to lose? Take the time now to block out two days to work with your team to develop a solid plan for 2010. If you need help with your Annual Planning, Gazelles can help you. Contact Cindy Praeger at Gazelles (cindy@gazelles.com or 704-996-0399). If you sign up before December 31, we will help you jumpstart your plan with 1 free month of Rhythm Execution Coaching and Software.

Feedback from Benetton India — and India Tour Dec 1 — 3 — I’ll be leading one day workshops in Mumbai Dec 2 and Bangalore Dec 3. I’ll also be leading another private session for Benetton India — this note from Sanjeev Mohanty, CEO of Benetton India post our first session earlier this year. “During our session we had set up a challenging target of 65% growth for the 3rd quarter. I am happy to share that we have achieved this target! We had launched a very creative campaign across the organization and charged up and motivated everyone with the same and it was a great experience. This is an amazing achievement as most of our competitors are either no growth or even worse, de-growth in business. The most amazing part of the story was that more than the sales guys the supply chain, design, manufacturing and HR guys were chasing the numbers on an hourly basis.” The Rockefeller Habits tools are effective across various cultures.

Jim Collins Top Ten Lists:

Ten Books Jim Collins Recommends

1. Churchill, The Second World War
2. Caro, Master of the Senate
3. Goodwin, Team of Rivals
4. Bernstein, Against the Gods: The Remarkable Story of Risk
5. Lewis, Moneyball
6. Homer, The Iliad
7. Drucker, The Effective Executive
8. Gardner, Self-Renewal
9. Lewis, Assault on Lake Casitas
10. Manchester, Goodbye Darkness

Jim Collins Top 10 Great Courses from the Teaching Company

1. How to Listen to and Understand Great Music by Robert Greenberg.
2. Great American Presidents
3. Argumentation — The Study of Effective Reasoning
4. What are the Chances? Probability Made Clear
5. Economic History of the United States, 1900 – 2000
6. Art Across the Ages
7. Dante’s Divine Comedy
8. Emperors of Rome
9. The History of Ancient Egypt
10. History of Modern Russia + From Yao to Mao — 5000 years of Chinese History

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Click on this link to review the BHAG for Red Balloon in Australia – provides an example of BHAG measurement.

http://www.gazellestv.com/player.cfm?fid=45

Its also a great story of leadership in the non profit word.

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By: The New York Times/ Jennifer Walzer

I recently lost a longtime client, who was also a dear friend and valuable mentor, to prostate cancer. He was 52 years old and left behind his wife and two children. The other day I learned that another good friend was found to have skin cancer that had progressed to the point where he had to have glands removed. He was so busy running his company, he didn’t notice the moles that had started to look different. My friend is only 38 years old.

Like many entrepreneurs, I’m often too busy to breathe. I try not to put work ahead of friends or family, but I often end up with little time to take care of myself. When I started my business, I was in great shape from years of dance and regular exercise. As my business flourished, however, working out was replaced by simply working. And let’s not even think about the decline of my eating habits and sleep schedule. My business became my life.

After watching my close friends battle health issues and after dealing with a few of my own, I’m starting to look at things differently.

First, I realized that by not getting any exercise and not watching what I was eating, I was sapping myself of the energy I need to run my business. If you are like me (and I know I’m not alone here) you will get that energy artificially from coffee, Red Bull, sugar, candy or any other weapon of choice (my personal favorite is sugary gum and licorice along with hazelnut coffees and caramel apple ciders from Starbucks).

Next, regular checkups. There have been times when I felt I couldn’t afford two hours out of my day to see a doctor. I’ve canceled many appointments over the years because I felt I needed to go to that client meeting (and then it would take me months to get the doctor visit back on the calendar). Now I realize that I can’t afford NOT to go to those appointments.

Finally, I’m trying to listen to my body. As hard as it is, I know that when I’m feeling sick or run down, I need to try to rest for a day. If something persists, hurts, looks weird, or just doesn’t feel right, get it checked out. I know that sounds obvious, but so often we let things go. Now, I think about my friend who has skin cancer.

I turned 36 on Sept. 11, and I’ll be getting married in less than two months. I want to have the energy to continue running Backup My Info! for years to come. My fiancé, Brad, and I have started getting up together at 5:30 in the morning to go on our “workout dates.” I’ve started running and even participated in a few road races in Central Park. The difference in my energy level and the way that I feel has been incredible. Now, I’m only slightly tired from getting up early to run.

My team is in on it, too. One of my engineers has lost almost 50 pounds. Now, we try to make smart choices when we order our lunches or buy snacks to keep in the office. Not only does everyone look great, I have noticed that they are getting sick less often and are more enthusiastic and energetic.

Having my own business has some great perks but it’s also about making sacrifices. I just know that my health can’t be one of those sacrifices anymore.

Jennifer Walzer is founder and chief executive of Backup My Info!, which is based in New York. You can also follow her on Twitter: @BackupMyIn

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By: Harvard Busines Publishing/Bill Taylor

The Economist owes much of its popularity to its knack for challenging conventional wisdom. In a recent column, it applied its contrarian mindset to the question of what kinds of leaders make the best CEOs, making the case that what the world needs now are more “raging egomaniacs” and “tightly wound empire-builders” rather than the “faceless” and “anonymous” bosses running so many companies today — “bland and boring men and women who can hardly get themselves noticed at cocktail parties.”

The crux of The Economist’s argument relies on what’s known as the Great Man Theory of History. After trumpeting the virtues of business geniuses such as Bill Gates, Steve Jobs, Lou Gerstner, and Jack Welch, it then generalizes from this handful of larger-than-life moguls: “The best ambassadors for business are the outsize figures who have changed the world and who feel no need to apologise for themselves or their calling.”

It’s an intriguing essay and a good read. It’s also a false choice — and a bad reading of history. For one thing, when it comes to larger-than-life CEOs, I can name as many scoundrels and failures as I can geniuses and world-changers. There’s a reason Bethany McLean and Peter Elkind titled their bestseller on the Enron disaster The Smartest Guys in the Room, and it goes beyond the criminality those deeply flawed executives displayed. That familiar phrase captures the mindset too many of us expect even our most honest leaders to display — the assumption that being “in charge” means having all the answers. In simpler times, fierce personal confidence, a sense of infallibility as a leader, might have been be a calling card of success. Today it is a warning sign of failure, whether from bad judgment, low morale among disillusioned colleagues, or sheer burnout from the pressures of always having to be right.

That’s not a case (and here’s the false choice) for aiming low or being dull. The best executives I’ve met understand that there is a vast difference between advancing big, exciting, important goals — aspiring to change the game in your field — and assuming that you know best how to achieve those goals. Sure, great leaders champion new ideas and disruptive points of view — they have vision. But that doesn’t mean they have to see the future on their own.

Just because you’re in charge doesn’t mean you have to have all the answers. Real business geniuses don’t pretend they know everything.

To be sure, it’s easier to divide leaders into either-or categories: risk-takers vs. bureaucrats, those with ambition vs. those with humility. Fortune just named Steve Jobs its CEO of the Decade — and while it’s hard to argue with the choice, it’s even harder to reproduce his talents. The problem with trumpeting the virtues of one-of-a-kind geniuses like Steve Jobs is that — duh — there is only one of them! Memo to The Economist: It’s not a good idea to urge CEOs to emulate leaders whose success is, almost by definition, impossible to copy.

Keith Sawyer, a creativity guru at Washington University in St. Louis, has literally written the book on where good ideas come from. In Group Genius, he explains how few leaders are prepared to recognize the messy and hard-to-manage truth about the real logic of business success. Many (perhaps most) executives subscribe to what Sawyer calls script-think — “the tendency to think that events are more predictable than they really are.” In fact, he says, “Innovation emerges from the bottom up, unpredictably and improvisationally, and it’s often only after the innovation has occurred that everyone realizes what’s happened. The paradox is that innovation can’t be planned, it can’t be predicted; it has to be allowed to emerge.”

Harriet Rubin, one of the great innovators in business-book publishing, and an accomplished author in her own right, uses different language to make a similar point about leadership and innovation. “Freedom is actually a bigger game than power,” she reminds executives who are eager to make their mark in the world. “Power is about what you can control. Freedom is about what you can unleash.”

The most effective leaders no longer want the job of solving their organization’s biggest problems or identifying its best opportunities on their own. Instead, they recognize that the most powerful ideas can come from the most unexpected places: the quiet genius buried deep inside the organization, the collective genius that surrounds the organization, the hidden genius of customers, suppliers, and other constituencies who would be eager to share what they know if only they were asked. For companies, and the CEOs at their helms, those are the smartest (and most sustainable) sources of greatness.

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By: Seth Godin

If you walk into a company-owned cell phone store to sign up for a contract, what are you worth?

Given the huge gross margins at AT&T and Verizon and the standard two-year contract, I think it’s easy to figure on more than $2000 in lifetime value.

If you ran a business where a customer represented an additional $2,000 in profit, how would you staff? How long would you make someone wait? If staff costs $25 an hour, how long would that extra person take to pay off?

Few businesses understand (really understand) just how much a customer is worth. Add to this the additional profit you get from a delighted customer spreading the word–it can easily double or triple the lifetime value.

So, a chiropractor might see a new patient being worth $2,500, easily. And yet… how much is she spending on courting, catering to and seducing that new customer? My guess is that $50 feels like a lot to the doc. Instead of comparing what you invest to the benefit you receive from the first bill, the first visit, the first transaction, it’s important to not only recognize but embrace the true lifetime value of one more customer.

Write it down. Post it on the wall. What would happen if you spent 100% of that amount on each of your next ten new customers? That’s more money than you have to spend right now, I know that, but what would happen? Imagine how fast you would grow, how quickly the word would spread.

Here’s how you’ll know when you’ve really embraced this–a good customer at your podiatry practice (or supermarket or tax firm) walks out the door in a huff and you turn to your partner and say, “There goes $74,000.”

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By: Andrew McAfee/ Harvard Business Review

You’ve probably heard by now that “your brand is no longer yours.” The assertion’s based on simple math. In the era of blogs, discussion boards, Facebook, Twitter, and other Web 2.0 tools, virtually everyone can get online and talk about your company and its offerings. As a result, the amount of information your marketing and PR departments can generate is only a small percentage of the total volume of content on the Internet about your firm.

What’s more, if some of the external voices become as popular, or perish the thought, more popular than your official voice, then they’re going to show up high in organic (as opposed to paid) search results. For example, I just typed “Hummer” into Google. The second result is the Wikipedia entry about the vehicle, and the fourth one is a site full of user-submitted photos that are not likely to please the brand’s owner.

Every large organization I’m aware of is highly sensitive about its brand, and few are happy about losing or even sharing control over it. They react to the reality of Web 2.0 era in many ways, but most of them amount to some form of trying to exert or reestablish control. Some move their mass media campaigns online to counteract the outside conversation. Some try to influence the influential external voices. Many companies monitor the new online conversations, and also participate in them by setting up official Facebook fan pages, Twitter accounts, and so on. More than a few try “sock puppeting” or having someone on the payroll pose as an outsider with nothing but good things to say. This rarely works; Web users are reasonably good at sniffing out inauthentic voices and ignoring or blowing the whistle on them.

A few large, brand-sensitive organizations have taken another approach; they’ve accepted their lack of brand control and have actively encouraged insiders to join the online conversation without making any attempt to censor or even guide them. They’ve said, essentially, “You know us really well. Talk about us on the Web. We want the world to hear what you have to say.”

Does that sound risky to you? Can you envision dozens of ways in which that approach can go horribly wrong? Me, too. And yet, I keep reading stories like the recent one in the New York Times about MIT’s student bloggers, and they make me appreciate the brilliance of this approach.

Five years ago Ben Jones, then the director of communications in MIT’s admissions office, added a single student blog to the office’s web page; there are now eleven of them. Student bloggers are selected after submitting writing samples, and are paid $10 per hour.

I was an undergrad at MIT (just a few years before the blog era) and I assure you that most students there would treat the administration’s suggestions about appropriate self-expression about the same way Roger Federer might treat the local club pro’s tips on improving his forehand. The admissions office understands this, and wisely doesn’t try to edit posts or comments.

And not all content reflects glowingly on the institution. One blogger complained about problems with the resident advising system, while another wrote that she’s felt several times that she didn’t fit in at MIT. She also went on to say, as the Times story reports, that “MIT is the closest you can get to living on the Internet…IT IS SO TRUE. Love. It. So. Much.”

MIT could spend lots of money on their brand and image and never come up with a better advertising tag line than “The closest you can get to living on the Internet.” Indeed, part of what makes it so effective is not just its clarity and cleverness, but the fact that it’s being shouted across the Internet by a current student who is clearly speaking in her own voice. It’s just tremendous marketing; the admissions office couldn’t ask for, or pay for better.

Putting student blogs front and center is a mark of MIT’s confidence: confidence in itself as a healthy organization where the pros outweigh the cons, confidence in the members of its community who represent it to the world, and confidence that the people who come to its website will know how to interpret the information they find there. According to the Times article, potential applicants to the university are “less interested in official messages and statistics than in first-hand narratives and direct interaction with current students.” Does that sound at all like your customers?

Is your organization as confident as MIT? Are you ready and willing to let more internal voices communicate and shape your brand over time? If not, why not? Is it that you don’t trust your people, or your customers? Is it that you don’t want any negativity at all to appear on your digital properties? Or is it that you’re afraid there might be too much negativity?

I don’t think these are unfair questions, or trivial ones. Their answers will reveal not only how your organization sees itself, but also about how it’s responding to a world of reduced control over brands, conversations, and messages. Leading organizations are embracing this trend and, like MIT, they’re giving up tight control even when and where they don’t have to.

Lagging organizations are holding on to the illusion that tight control is still possible. 

You’ve probably heard by now that “your brand is no longer yours.” The assertion’s based on simple math. In the era of blogs, discussion boards, Facebook, Twitter, and other Web 2.0 tools, virtually everyone can get online and talk about your company and its offerings. As a result, the amount of information your marketing and PR departments can generate is only a small percentage of the total volume of content on the Internet about your firm.

What’s more, if some of the external voices become as popular, or perish the thought, more popular than your official voice, then they’re going to show up high in organic (as opposed to paid) search results. For example, I just typed “Hummer” into Google. The second result is the Wikipedia entry about the vehicle, and the fourth one is a site full of user-submitted photos that are not likely to please the brand’s owner.

Every large organization I’m aware of is highly sensitive about its brand, and few are happy about losing or even sharing control over it. They react to the reality of Web 2.0 era in many ways, but most of them amount to some form of trying to exert or reestablish control. Some move their mass media campaigns online to counteract the outside conversation. Some try to influence the influential external voices. Many companies monitor the new online conversations, and also participate in them by setting up official Facebook fan pages, Twitter accounts, and so on. More than a few try “sock puppeting” or having someone on the payroll pose as an outsider with nothing but good things to say. This rarely works; Web users are reasonably good at sniffing out inauthentic voices and ignoring or blowing the whistle on them.

A few large, brand-sensitive organizations have taken another approach; they’ve accepted their lack of brand control and have actively encouraged insiders to join the online conversation without making any attempt to censor or even guide them. They’ve said, essentially, “You know us really well. Talk about us on the Web. We want the world to hear what you have to say.”

Does that sound risky to you? Can you envision dozens of ways in which that approach can go horribly wrong? Me, too. And yet, I keep reading stories like the recent one in the New York Times about MIT’s student bloggers, and they make me appreciate the brilliance of this approach.

Five years ago Ben Jones, then the director of communications in MIT’s admissions office, added a single student blog to the office’s web page; there are now eleven of them. Student bloggers are selected after submitting writing samples, and are paid $10 per hour.

I was an undergrad at MIT (just a few years before the blog era) and I assure you that most students there would treat the administration’s suggestions about appropriate self-expression about the same way Roger Federer might treat the local club pro’s tips on improving his forehand. The admissions office understands this, and wisely doesn’t try to edit posts or comments.

And not all content reflects glowingly on the institution. One blogger complained about problems with the resident advising system, while another wrote that she’s felt several times that she didn’t fit in at MIT. She also went on to say, as the Times story reports, that “MIT is the closest you can get to living on the Internet…IT IS SO TRUE. Love. It. So. Much.”

MIT could spend lots of money on their brand and image and never come up with a better advertising tag line than “The closest you can get to living on the Internet.” Indeed, part of what makes it so effective is not just its clarity and cleverness, but the fact that it’s being shouted across the Internet by a current student who is clearly speaking in her own voice. It’s just tremendous marketing; the admissions office couldn’t ask for, or pay for better.

Putting student blogs front and center is a mark of MIT’s confidence: confidence in itself as a healthy organization where the pros outweigh the cons, confidence in the members of its community who represent it to the world, and confidence that the people who come to its website will know how to interpret the information they find there. According to the Times article, potential applicants to the university are “less interested in official messages and statistics than in first-hand narratives and direct interaction with current students.” Does that sound at all like your customers?

Is your organization as confident as MIT? Are you ready and willing to let more internal voices communicate and shape your brand over time? If not, why not? Is it that you don’t trust your people, or your customers? Is it that you don’t want any negativity at all to appear on your digital properties? Or is it that you’re afraid there might be too much negativity?

I don’t think these are unfair questions, or trivial ones. Their answers will reveal not only how your organization sees itself, but also about how it’s responding to a world of reduced control over brands, conversations, and messages. Leading organizations are embracing this trend and, like MIT, they’re giving up tight control even when and where they don’t have to.

Lagging organizations are holding on to the illusion that tight control is still possible.

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By: Sue Shellenbarger/ The Wall Street Journal

Are things you need to get done falling between the cracks? Does taking an entire day off seem impossible?

Maybe you need a time-management system.

Many readers seem to think they do, based on the email response to my recent column on the importance of taking time off. Dozens asked me to recommend a time-management method that would help them get on top of their work and home duties. In response, I asked a half-dozen executive coaches to help me pick the most widely used time-management systems—not just software tools or high-tech to-do lists, but behavioral-change techniques that help people get organized, clarify thinking and increase output. Then, I tried out for a week each of the three methods they mentioned most often—including one that involved a ticking plastic tomato.

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Patrick Conlon/The Wall Street JournalFollowers of the ‘Pomodoro Technique’ tackle tasks in 25-minute increments, with the help of a kitchen timer.

Of course, a week isn’t long enough to reap the full benefits of these methods. Still, I learned a lot from this experiment. Like many people, I am often my own worst enemy in managing my time, distracting myself from the task at hand, or setting myself up for failure by starting each day with an unrealistically long to-do list. Second, the key to getting more important stuff done is often doing less of everything else. And finally, getting control of your time requires a significant up-front investment of mental effort—and, well, time.

Here, in no particular order, are the methods I tried:

• Getting Things Done: The reigning gorilla of time management, “GTD,” as its followers call it, was created in the 1980s by David Allen, an Ojai, Calif., consultant whose coaching, training materials and seminars can be found at davidco.com. Mr. Allen has since sold more than one million books about GTD and attracted 1.2 million followers on Twitter. GTD’s aim is to corral all the projects and tasks floating around in your head into an organizing system you update weekly. No matter what chaos erupts, the system in theory enables you to quickly identify the next step to take on every front to keep all your projects moving forward, while keeping your mind clear to relax, think and be creative.

I start GTD with a weekly “mind sweep,” writing down all the stuff I should be doing, want to do or dream of doing. The resulting list ranges from essentials, like meeting my next deadline, to nagging worries, like updating college-financing plans for my kids, to future hopes, like volunteering as a writing coach for needy kids. Next, I sort it all and create new files, action lists, calendar items or reminders based on what is needed next—for example, whether a project requires action (the deadline); input from someone (a talk with my accountant about college financing); or deferral (the tutoring plan). My daily calendar is reserved for only the most urgent items, such as the deadline.

How We Did It

To pick the time-management methods described in this column, I asked several experienced executive coaches and consultants which systems they see used most often. The three that were cited by at least two or more of them are featured.

• The coaches: Marshall Goldsmith, Rancho Santa Fe, Calif., cofounder of an executive coaching network and author of a forthcoming book, “Mojo,” on happiness and meaning; Michael Goldberg, a consultant and speaker with Building Blocks Consulting, Jackson, N.J.; Rich Gee, a Stamford, Conn., executive coach; Brian Underhill, owner of a San Jose, Calif., coaching firm; Pete Walsh of Peak Performance Coaching, Phoenix, and D. Luke Iorio, an executive with the Institute for Professional Excellence in Coaching, Shrewsbury, N.J.
• Time-management systems specific to particular fields, such as sales, weren’t considered. Also, I chose to feature only approaches that offer practical help managing a typical, mainstream workday. That eliminated such popular but unconventional philosophies as the freewheeling approach set forth by author Timothy Ferriss in “The 4- Hour Workweek.”

When all the collecting, reviewing and categorizing required by GTD is portrayed visually on a “workflow map,” the result resembles a cross between a corporate organization chart and a map of Middle-earth in “The Lord of the Rings.” GTD fans liken it to learning a new sport, such as tennis, and say mastering it can take two years.

Nevertheless, I see some benefits right away. GTD has me clump tasks together by context; phone calls, for example, are grouped so I can run through them quickly during a spare moment. And GTD ends sloppy habits, such as stashing piles under my desk, forcing me instead to decide what to do with all the stuff and either file or discard it. As I comply, I revel in the vast expanse of clear desktop that appears before me. I doubt, however, that I have the perseverance to stick to this system.

• The Pomodoro Technique: This quirky method had me working in intense spurts guided by a kitchen timer shaped like a tomato—or pomodoro, in the inventor’s native Italian. Developed by Francesco Cirillo, director of XPLabs, a software design firm based near Rome, this technique is spreading via Twitter and other social networks. It can be learned in a few hours from a free guide at pomodorotechnique.com; making it a habit takes up to 20 days.

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• Discuss: Do you use a time-management system? What’s worked best for you?

While any timer will do, I purchased my own tomato for $14.95. I start each day by making a log of things to do, then tackle each in 25-minute intervals called Pomodoros. When a Pomodoro is over, I mark an X on the log next to the item I am working on, then take a refreshing 3- to 5-minute break. Nothing must be allowed to interrupt a Pomodoro. If co-workers barge in, Mr. Cirillo advises trying to defer the conversation.

The method is based on the idea that time-management tools and techniques should be simple; that frequent breaks can improve mental agility; and that changing the way people think about time can ease anxiety, freeing them to concentrate better.

Although I found this method laughable at first, its simplicity is deceptive. Working with my ticking tomato made me aware that I constantly interrupt myself. Users are asked to put an apostrophe over the “X” on the log each time they are tempted to break a Pomodoro. I had no less than eight apostrophes over one “X”—marking impulses ranging from reading email to ordering a toner cartridge to running outside to see if my car had a flat tire. (Seriously.)

This method offers less help than the others with organizational problems; it is narrower in scope. However, it eased my anxiety over the passing of time and also made me more efficient; refreshed by breaks, for example, I halved the total time required to fact-check a column.

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Patrick Conlon/The Wall Street JournalAn example of a “Getting Things Done” workflow map

• FranklinCovey’s Focus: This method, subtitled, “Achieving Your Highest Priorities,” hits workaholics where it hurts—in their upside-down priorities. Created by FranklinCovey, Salt Lake City (franklincovey.com), Focus aims to help users jettison busywork and wasted time and devote themselves to their most valued pursuits. FranklinCovey has trained more than two million people in the method. Some of its concepts are widely known, such as “sharpening the saw,” a metaphor for setting aside time to take care of your health so you can work (and play) with more vigor.

Another well-known symbol, its four-quadrant “time matrix,” helps users distinguish among tasks based upon whether they are truly urgent and important; important but not urgent; urgent but not important; or neither. A pretest shows I squander one-third of my time on unimportant stuff. To remedy this, I settle down for a half-hour planning session, a weekly Focus requirement, to think through my values, identify the roles and goals most important to me, and block out time in advance to pursue them. I enter other tasks day-by-day on my calendar, prioritizing them based on their importance. Like GTD, Focus requires a fairly high up-front investment of mental effort to be useful.

Focus aims to break users’ “urgency addiction,” the habit of rushing around needlessly. By week’s end, I am surprised at how much calmer I feel, as I let insignificant stuff slide; in a spillover benefit, I am able to help my teenage son see that his race to finish a college research project early isn’t truly urgent. Also, in pursuit of the value I place on generosity, I start working early on a holiday gift for my extended family, a photo calendar; not only do I take more pleasure in making it, but I know it won’t be the usual slapdash, last-minute affair. In an era when values are often neglected, this system is a worthy antidote.

In the end, I expect I will embrace elements of each of these systems—the approach experts recommend for most people. The essence of good time management is sticking to rituals that make you more productive, and rituals are largely a matter of personal preference. “The only system that matters,” says Luke Iorio, president of iPEC Coach Training, Shrewsbury, N.J., “is the one that works for each individual.”

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By: Peter Bregman/ Harvard Business Publishing

Many years ago, when I first started my consulting firm, a friend of mine, Jane*, who worked for a large company, suggested I speak with her colleague, a man named Fred, who might be in a position to hire Bregman Partners.

So I called Fred, mentioned Jane and asked to meet with him. I’m very busy, Fred told me, let’s just talk on the phone.

But I knew the phone wouldn’t cut it. How about lunch?, I suggested. Or a drink after work? Or maybe just fifteen minutes in person somewhere?

Fred finally agreed to a short lunch. Then he canceled. We rescheduled. He canceled again. We rescheduled again. He canceled again. It was clear he didn’t want to meet with me. I almost gave up.

Here’s what I realized though: if I could avoid reacting to my feelings of frustration or hurt, then the cost to me of rescheduling the meeting was a two minute phone call with Fred’s secretary. And the upside was potentially enormous.

So I kept rescheduling until, one day, several months later, Fred didn’t cancel and we had lunch. Which was very quick, of course, but long enough for me to ask him to let me submit a proposal. A couple of weeks after I sent it to him, he left me a short message explaining that I had missed the mark but he’d keep me in mind. Right.

I felt affronted. All that work I put in and all I got in return was a voicemail? Again, I almost walked away.

But instead I called and asked for another lunch to understand what I misunderstood. He declined but suggested I speak with his colleague, Lily, who was in a different department and might have a need for my services.

So I set up a meeting with Lily. Who canceled. As I prepared to reschedule I noticed something unexpected: I started to enjoy the process of trying to get in, the challenge of making the sale. It became a game to me and my goal was to keep playing until, at some point, I’d say the right thing to the right person and get my foot in the door. I was, surprisingly, having fun.

And I was starting to be good at it. Scheduling. Rescheduling. Finding a way to keep the conversation going. You’d think it wouldn’t be something hard or useful to become good at but you’d be wrong on both counts.

Most of our jobs hinge on repetition. That’s how we become good at anything. The problem is we give up too soon because anything we do repetitively becomes boring.

That is, unless we have a peculiar taste for the task; if it captures our interest. For some reason, maybe we don’t even understand — and we don’t have to — we enjoy it.

That’s how I learned how to do a handstand. It always seemed completely out of reach for me. But then someone told me they learned as an adult. So I figured I could learn too. It took six months but now I can, somewhat reliably, stand on my hands.

Which has led me to believe that anyone can do anything. As long as three conditions exist:

1. You want to achieve it
2. You believe you can achieve it
3. You enjoy trying to achieve it

We often think we only need the first two but it’s the third condition that’s most important. The trying is the day-to-day reality. And trying to achieve something is very different than achieving it. It’s the opposite actually. It’s not achieving it.

If you want to be a great marketer, you need to spend years being a clumsy one. Want to be a great manager? Then you’d better enjoy being a poor one long enough to become a good one. Because that practice is what it’s going to take to eventually become a great one.

In his book Outliers, Malcolm Gladwell discusses research done at the Berlin Academy of Music. Researchers divided violin students into three categories: the stars, the good performers, and the ones who would become teachers but not performers. It turns out that the number one predictor of which category a violinist fell in was the number of hours of practice.

The future teachers had practiced 4,000 hours in their lifetime. The good performers, 8,000 hours. And those who were categorized as stars? Every single one of them had practiced at least 10,000 hours.

And here’s the compelling part: There wasn’t a single violinist who had practiced 10,000 hours who wasn’t a star. In other words, 10,000 hours of practice guaranteed you’d be a star violinist. According to Gladwell, 10,000 hours of practice is the magic number to become the best at anything.

Which is why you’d better enjoy trying to achieve your goals. Because you’ll never spend 10,000 hours doing anything you don’t enjoy. And if you don’t enjoy the trying part you’ll never do it long enough to reach your goal.

Eventually, after five or six cancelled meetings, Lily and I met for lunch. Which, as it turned out, was perfect timing. When we finally met, she had a real need, which hadn’t existed when we first started scheduling a meeting.

By this time, I was familiar to her and the company even though I had never done any work for them. I had been around for months and they trusted me because I followed through on every commitment I made to them.

That year I signed a large contract with Lily’s company. Twelve years later, they’re still a big client of Bregman Partners. And they still cancel lots of meetings with me.

*Some information has been changed to protect people’s privacy.

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