Getting up from “Under the Bus”

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Recently, although it has happened to me before, I let my guard down and confided in someone whom I though I could trust (in a business sense). This information (not proprietary or classified)  was meant as an aid to improve performance prior to any real actions being taken. I was under the impression that the party in question wanted to understand what others where thinking so they could make preemptive corrections, thereby avoiding any confrontations.

It didn’t turn out that way. Instead the party in question confronted the accusers and followed up with proof by using my name in the process. Blind sided as I was to hear of the incident, I knew I needed to react the right way and learn from this mistake. I owned my error and proceeded to acknowledge the issue with those affected. I can’t expect the same level of trust from the group, nor would I give it if I had been betrayed. Wounds will heel, but going after the person who betrayed my trust would just make two wrongs.

When you are in the middle of a situation like I was, how you respond and own it says a lot about your character. I hope to regain this groups trust over time, but I know that individual responsibility and accountability are the hallmarks of my practice. What we do after we screw up is just as important as learning from the screw up.  All of us at times fall prey to this type of betrayal. It’s how we learn to cope with it that sets leaders apart from the rest. We must hold ourselves to the same if not higher standards, as those we manage and consult, otherwise we risk hypocrisy.

Dusting myself off,

Rick Barbosa

 

 

Royal Bank IT issue follow up

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Literally 1 day after my post Cheque-Pro was up for about 2 days until they did a further shut down for maintenance. Since then every thing is back to normal. No communication other than, Royal Bank would waive the January and February fees associated with the product.

Also, amid several complaints including mine about how the new on-line banking screen had too much wasted space and was more time consuming than the original version (which was fine), they compressed the layout and made it fit on the screen. Handy when you don’t have to scroll to see all your accounts (like the original).

At least Royal finally listened. Some companies do not. The moral of the story is “listen to your customers, and if it works don’t try to fix it.” Businesses are here to make customers happy and make money, in that order.

Till next time

 

Rick

 

How not to handle an IT issue-Royal Bank Cheque-Pro

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I have been a Royal Bank customer for decades, and I refer quite a bit of business their way from many of my clients. Usually they are on top of both technical and financial matters when it comes to serving their most profitable business segment (retail banking) until now. Take the recent facelift of their on-line banking makeover. It wastes a lot of space and makes me do twice the work to find out what I need to know. The old format was compact, easy to navigate and work with. The new interface in my opinion just plain sucks. Interestingly enough, Direct Investment and Business Banking has not changed, thank God for small miracles.  When I called in to complain the person at the call center said that Royal had used focus groups and surveys to mold their new design. I responded in kind “were the focus groups made up of hand-picked individuals or actual high volume users?” The rep responded that they would pass my thoughts along and also said that they were fielding a lot of similar calls.

This brings me to their latest blunder. Like many I liked the idea of depositing cheques remotely and avoiding driving to the branch. It would fund the account immediately and save time and money. The math was simple enough. I introduced it to many of my clients, some of which had to invest in scanners. About one month into their roll out the system was shut down. The only explanation I got was that they were having problems with an update.  It’s going on 3 weeks of down time and no update from Royal, despite still promoting Cheque-Pro on their site. All users get is this message:

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As Canada’s Biggest Bank I would have expected more. Heads should roll and compensation needs to be addressed as well as doing the obvious and quit promoting a product that doesn’t work.

This is why competition from the Fintech industry is so important. Leaner, meaner and hungrier startups need to come in to save the day.

Royal, get your act together and get this fixed, or some Fintech company will fix it for you.

Till next time,

Rick

 

Best Financial Calculators

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We’ve just updated our resource page with some of the most useful and easy to use financial calculators to assist you in making these common decisions or analyze your financial situation.

  • Lease v Buy
  • Rent v Buy
  • Net Worth
  • Accelerated Mortgage payment savings
  • RRIF payment Calculator
  • Financial Fitness Score
  • Break Even
  • Financial Ratios

Financial Tools made easy

Click on the link above to try them out today.

Rick

 

Why I’m pulling the plug on Social Media advertising

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Like any other business I have to balance the need for attracting new clients with our ability to service existing ones. I don’t like to overextend my resources to sacrifice service to long-standing clients. During the past year I actively pursued adding 2-3 more clients and possibly adding staff to handle them. You may ask yourself only 2 or 3? The reason for such a conservative goal is that each client is different and can  eat up a lot of support time either on the phone or in person. I like to over deliver and under promise to keep satisfaction levels high. Besides tax season, the past 10 years has seen a new client added about every 18 months, and I’m ok with that. Most of these add-ons were from tax work that progressed into part-time accounts and some even full-time.

Fast forward to 2015. I started advertising on Twitter, Bing, and Google with a modest yet effective budget designed to deliver new leads. What I experienced from SEO, Display and Search ads was a lot of noise and window shopping.  The new clients that I did add were from the QuickBooks Partner program which is free and another referral which was from some previous tax work done in the past. So taking my own example and data into consideration, I’ve decided to end my experiment. All the time and effort I put into designing ads, managing different platforms, choosing keywords and ad text, can now be spent on my current clientele. I’ll probably wind up spending more time with my family and get  more referrals as a result.

Bottom line is don’t believe the hype. Be your own judge and make sure the cost/benefit is in your favour, not Google’s, Instagram’s, Twitter’s or Facebook’s.

Likes are not sales nor leads.

‘Till next time

Rick

 

 

Small Business Excellence: Confidence

Self-Confidence

First and foremost I would like to apologize for not posting more frequently. I have recently been involved with getting a new client up to date with their record keeping and it’s taken most of my free time. I always personally handle new clients so that I understand their business before I hand it off to junior staff. If you’ve read my prior posts I lament about getting an accountant early on and getting things in order instead of catching up.

I digress.

Many of you already know this, but to start and have your own business takes guts and a lot of B***s. I’ll substitute B***s with the word Confidence going forward. Taking that leap and putting your money in harm’s way on a daily basis is not for the faint of heart. Normally individuals with this kind of appetite for risk have an abundance of confidence in their abilities and desire to follow through on their business plans.

This is an absolutely essential quality to have and must be in place to facilitate sales, cash flow, and operations. These 3 key areas will need guidance, coaching and vision to sustain the initial business and see it through its inaugural year.  Most small business owners and entrepreneurs can sustain their optimism through this start-up phase, but when things start to get serious (either in a good way or bad) is when you need that confidence to stick around even more.  Having the ability to stick it out through growth spurts, cash crunches and competition means turning that confidence into persistence. Your staff, partners and bankers will all look to you to see them through these challenges.

No one said you had to do it alone. Confidence and indeed persistence, can come from many sources. Knowing you have help and options when these challenges arise feeds your confidence and enables you to push through roadblocks to come out the other side. That’s why choosing your partners and advisors wisely can help you formulate options you thought you never had. Knowledge is Power.  Power is Confidence.

‘Till next time.

Rick

 

 

 

 

Small Business Excellence: Find your Focus

Focus

  1. Why are you in Business?
  2. What sets you apart from the competition?
  3. How do you plan on growing your business or even staying in business in the future?

These 3 questions should make every business owner pause and reflect on how to answer them. Many times small businesses start out with the premise that they can do things cheaper than the competition. This business model or value proposition (consulting lingo) is the most common way to attract new customers or win contracts. Unfortunately, it can also commoditize your business. When business paint themselves into a corner as the lowest bidder or “cheapest” vendor they often limit themselves on exploring better avenues to separate themselves from the pack.

Here in Canada we’ve always relied on the currency cushion to make our products and services more attractive. When Stephen Poloz continued his race to the bottom with our dollar, he artificially propped up an aging manufacturing sector that has a diminished influence on GDP and is not productive enough to compete globally. How did this happen?

There are many examples of how the “Good Times” lead to a lack of focus on key areas that sustain a business. This laziness on the part of management to continually review, analyze, and invest in their businesses when times are good can mean loss of market share and potential business failure. Getting caught off guard is the product of an attitude that can grip even the best business. Here are some examples of what I’ve heard over the years:

  • “We do alright”
  • “We’ve being doing it this way for the last 10 years, why change now”
  • “My customers are loyal and wouldn’t go anywhere else”

To fight complacency we must learn to focus like a sniper on key areas of our businesses.

3 Key Areas that every business needs to focus on

  1. Innovation
  2. Quality (Product or Service)
  3. Employee Development

Change is constant and in an online and global economy we must learn to focus like never before if we want to compete either on a local or international stage.

Till next time.

 

Rick Barbosa

Why Multi-tasking should be discouraged-Period

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Back in the late 90’s and throughout the first decade in the new millennium, the workplace changed dramatically. The shop floor and offices were being automated with desktops and software at an alarming rate. With the newfound productivity a new buzzword was coined that still floats around today. Multi-tasking was used to describe performing several tasks at once. This was possible because simultaneous tasks could be performed by computers that were once done by individuals. At the time we did not think about how this increase in productivity would impact our work-life balance or the quality of work we were producing. Many early adopters were plagued with GIGO errors (garbage in, garbage out) as reports seemed inconsistent or unrealistic. The very promise of the computer was a paperless office with no errors as the “human factor” was minimized. Well, I don’t know about you but I produce more paper today than I ever did when I first started working. That’s because  today we are expected to handle increasingly larger workloads and more tasks in our modern and efficient workplaces. If you sit back and think of the definition of productivity as measuring the increase in production/service capacity of a business we are far more productive than our grandparents. But when you peel back the layers of the productivity onion to include re-work, quality concerns, recalls, order checkers, and forensic audits, have we really come any further?  Productivity and efficiency are two different beasts. One measures singular output, while the other measures lack of errors.

Yes we can all do many different tasks, but the key to efficiency is choosing when and how to perform them. Take the example of sitting in line at Tim Horton’s . I guarantee you that when Tim’s was serving just coffee and donuts you were served quicker and the donuts were fresher because they were baked by the local store and not shipped in like they are now for re-baking. Tim’s like many other quick serve restaurants has lost focus in trying to be everything to everybody. This has added multiple items to the menu. How good can you do your job if you need to know how to make 50 different menu items instead of focusing your attention on your primary products?

The law has started to catch on to the dangers of multi-tasking by banning cell phone use and other non-essential tasks while driving. The decision was obviously needed to ensure public safety, but did not come right away, nor is it still banned in every state or country under the “multi-tasking” mentality.  So I’ll leave you with this thought. How good is your work when you are handling multiple projects at the same time. Is your attention focused equally on each task or do your lower your standards on some work to get more work done?  Would  you want your surgeon playing chess and operating at the same time? (FedEx Commercial). Just how productive are you?

Take care,

Rick Barbosa

Morality and Business-Why your business needs strong Moral values

Full disclosure, I am Catholic, but this will not be a sermon or call to convert. I have the greatest respect for all religions that have a strong ethical and principled basis. Being involved in the business world I have come across many situations that were difficult for me personally as well as spiritually. I often had to carry out restructuring initiatives and projects that would “make us more competitive” only to see the lasting and damaging impacts on the communities and families in the area. When I first started out, I did not question or dig into the rationale or true cost of many of these decisions. Whether it was my naïve mindset at the time, or just my desire to drink the cool-aid and not rock the boat to keep my job, I wasn’t sure.

With age comes wisdom and the confidence to start asking questions. My Brother-in-Law was studying philosophy at the time when we were discussing the turmoil in Europe and America. He pointed out that no country or business is an island. What we do for the “good” of the business impacts everyone and has a profound impact on the rest of society. This is especially true today in the interconnected world we live in. Greed and the ever mounting pressure on companies to grow their businesses at any cost and at unreasonable and unsustainable metrics, has led to the turmoil we see today.  The great surge in outsourcing in the 90’s has led the U.S Economy to be primarily a buyer of goods, rather than a maker. The enormous displacement of workers has left cities, people and countries reeling in the aftermath.  Those very companies became hated,  former employees and vendors negatively impacted the very brand image and products that were being made by them. Some were vilified to the point of closing and never opening again. The “smart guys” are not always so smart.

What is the real cost of saving 50 cents per piece or increasing your margins by 5%, when the outcome could be unsafe product or terrible customer service that will impact the very people you displaced? I am not suggesting that we all become tree-hugging socialists and don’t make any money or reward ourselves for the risks we take. I am simply advocating that we take into account all parties including employees, customers and our communities at large when we make business decisions. These qualitative numbers are often the most overlooked numbers when analyzing business decisions. Great accountants take these into consideration as well.

Remember, what goes around comes around!

Your friend,

Rick Barbosa