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    Corporate Canaries - A Book Summary
    The Big IdeaLong ago, coal miners would put caged canaries in their tunnels. If the little birds fell silent or dropped, this would alert the miners of the presence of poison gas. This way, many miners were able to escape unhurt. The business environment you live in is very much like those treacherous mines. Hundreds of employees are laid off everyday and more and more companies are filing for bankruptcy. As a manager, you must learn how to detect threats to your business before disaster strikes.Corporate canaries are exactly like those real-life birds that saved hundreds of miners from certain death. “Canary” warnings will tell you whenever your business is threatened, enabling you to stop the bleeding even before it starts.There are five canary warnings:Canary Warning # 1 - You Can’t Outgrow LossesA lot of businesses fail because management chose to chase after sales, instead of focusing on making profit. What you must realize is that getting more sales is only seco
    ate Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer r

    Why Would Anyone Want Your Business Card?
    Do you remember how proud you were the first time you saw your name in print?Most entrepreneurs feel that same flush of pride when they gaze on their new business cards. That small piece of paper represents years of planning and effort and hard work and dreams. The thrill of seeing "your name in print" on a business card is hard to beat.Unfortunately, other people couldn't care less. Your business card, the one you're so proud of, is just another advertisement ? another piece of clutter to file. It's no more or less important than any of the many business cards that cross a prospect's desk at any given point in time.So how do you make sure that your card is one of the few that attracts attention, gets kept, filed, and actually used when your prospect needs your product or service?It pays to think about the reasons people keep cards to begin with. Often, it's not for the reason you expect. Understanding this critical concept can dramatically affect the design and ultimate effectiveness of your card.Let'
    Are you concerned about customer loyalty? Are your customers so loyal that they will stick with you through hell and high water? And if not, you really need to question how you can create a customer relationship that’s so gluey, that you never go bluey in the face. Funnily you don’t have to go far. Reach for your Webster’s dictionary and you’ll discover a hidden secret to customer loyalty.

    Do you find it amusing? Giggle if you must, but stick with me and I will show you the simplicity and longevity of this sane advice that will change your marketing strategies and tactics forever.

    But First, Let’s Look At Nasty Hurricane Andrew

    In August 1992, Hurricane Andrew went bananas. Like a drunk on one too many Tequilas, he tore into South Florida with wind gusts of 175mph, redrawing the landscape as he stomped onwards. Approximately 600,000 homes and businesses bore the brunt of his menace.

    By the time Andrew left, he had run up a tab of $26 billion dollars and the curses of some very, very angry insurance companies. Andrew had single handedly run up the highest insurance recorded payout in history – if you don’t count September 11.

    Many an insurance company looked gloomily into their crystal balls and decided the future was too dicey. So while they grudgingly forked out the costs required to cover the claims, they refused to renew customer policies.

    State Farm Insurance Had a Different Opinion

    The biggest reason Hurricane Andrew blew the roofs off the houses was because contractors had not anchored them to the frames. State Farm not only happily forked out the policy claims but also paid its customers more to bring the houses up to code.

    Amazingly, this insurance company was willing to overpay just to make sure their customers have peace of mind should Andrew or one of his family come visiting.

    State Farm Wasn’t Too Far From the Leo Burnett Advertising Agency

    Agencies are like turnstiles. Clients come, clients go and it’s the same mantra for employees. Not if you look at the Chicago-based agency called Leo Burnett. At Leo Burnett, over a four-year period from 1986 to 1989, 98 per cent of business came bounding back from repeat clients. No other agency even came close.

    Furthermore, this Houdini of advertising has had an almost zero client defection rate for decades. In an almost boring, old fashioned way, they adopt a loyalty based management that keeps clients superglued to them. And it continues to amaze and fascinate the roller coaster advertising industry that can only watch in awe and extreme fascination.

    Which Brings Us Back to Webster’s, Doesn’t It?

    Now let’s look at how Webster’s Dictionary defines the word Client. It says: A client is one who comes under your care, guidance and protection.

    See those words?

    It doesn’t say someone you need to get money or make profits from. It asks, even beseeches you to care, protect and guide your clients, like you would with your own child. Everything you do, you do unselfishly for that child. You put your heart and soul into creating a safe, educated environment. You become the guide and the protector. You create a bubble as secure as you can to make absolutely sure they get the very best.

    Scary, isn’t it? Especially when you look out there at so many companies, whose single motive is to simply get the sale and move on.

    Hurricane Andrew Moved On, State Farm Moved Up

    As soon as the brouhaha of Andrew’s visit died down, up came the vultures from other insurance companies. They tried to woo State Farm policy holders with discounts and other incentives. Most of them found doors slammed in their face. Their customers were staying loyal no matter what bait was being dangled in front of them. When the chips were down, State Farm pitched in to help like family. There was no way the customers were going to let down their own family.

    Adhering strictly to Webster’s, State Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer ru

    Setting Up A Corporation In Idaho
    The ease with which one can incorporate a new venture has made it possible for people to reap the numerous benefits that incorporation offers them, such as ease of raising capital if necessary by issuing more stocks, limited liability protection for the owners, deductible fringe benefits, and business losses.Steps for Incorporating In Idaho:It is essential to determine which kind of legal structure suits your business and personal needs and proceed accordingly in seeking help from an experienced attorney.It will be necessary to choose a name for your business and make sure that it complies with the applicable state laws. The name should not be a copy of any registered business name nor be in the reserved name list. You can protect your name by applying for trademark protection. The name has to end in the words or the abbreviations of the words “Incorporated,” “Corporation,” “Company,” or “Limited.” The state laws prohibit the word “and” or any symbol representing it preceding the word or abbreviation of the word “co
    e curses of some very, very angry insurance companies. Andrew had single handedly run up the highest insurance recorded payout in history – if you don’t count September 11.

    Many an insurance company looked gloomily into their crystal balls and decided the future was too dicey. So while they grudgingly forked out the costs required to cover the claims, they refused to renew customer policies.

    State Farm Insurance Had a Different Opinion

    The biggest reason Hurricane Andrew blew the roofs off the houses was because contractors had not anchored them to the frames. State Farm not only happily forked out the policy claims but also paid its customers more to bring the houses up to code.

    Amazingly, this insurance company was willing to overpay just to make sure their customers have peace of mind should Andrew or one of his family come visiting.

    State Farm Wasn’t Too Far From the Leo Burnett Advertising Agency

    Agencies are like turnstiles. Clients come, clients go and it’s the same mantra for employees. Not if you look at the Chicago-based agency called Leo Burnett. At Leo Burnett, over a four-year period from 1986 to 1989, 98 per cent of business came bounding back from repeat clients. No other agency even came close.

    Furthermore, this Houdini of advertising has had an almost zero client defection rate for decades. In an almost boring, old fashioned way, they adopt a loyalty based management that keeps clients superglued to them. And it continues to amaze and fascinate the roller coaster advertising industry that can only watch in awe and extreme fascination.

    Which Brings Us Back to Webster’s, Doesn’t It?

    Now let’s look at how Webster’s Dictionary defines the word Client. It says: A client is one who comes under your care, guidance and protection.

    See those words?

    It doesn’t say someone you need to get money or make profits from. It asks, even beseeches you to care, protect and guide your clients, like you would with your own child. Everything you do, you do unselfishly for that child. You put your heart and soul into creating a safe, educated environment. You become the guide and the protector. You create a bubble as secure as you can to make absolutely sure they get the very best.

    Scary, isn’t it? Especially when you look out there at so many companies, whose single motive is to simply get the sale and move on.

    Hurricane Andrew Moved On, State Farm Moved Up

    As soon as the brouhaha of Andrew’s visit died down, up came the vultures from other insurance companies. They tried to woo State Farm policy holders with discounts and other incentives. Most of them found doors slammed in their face. Their customers were staying loyal no matter what bait was being dangled in front of them. When the chips were down, State Farm pitched in to help like family. There was no way the customers were going to let down their own family.

    Adhering strictly to Webster’s, State Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer r

    Who's To Blame If You Are Not Promoted?
    Who or what is to blame if you are not getting the promotion you want and think you deserve?Many factors, in various combinations can be the cause, but one thing is almost certain. Like it or not, you and you alone must take most of the blame if your career is stuck on "hold."There is valuable insight into all of this in Shakespeare's "Julius Caesar." Cassius is advising Brutus as they consider their ambitions for bigger and better things: "The fault, dear Brutus, is not in our stars but in ourselves, that we are underlings."Let's examine four of the more frequent reasons (or excuses, as the case may be) given to explain why people are not promoted and the courses of action that can be taken to deal with them.Four Reasons Promotions Are Stymied1. You fail to win the promotion because you are not qualified to take on the bigger responsibilities. Two things can be happening here.One is you have the potential to learn the new responsibilities, but you haven't made the effort. Hope
    clients go and it’s the same mantra for employees. Not if you look at the Chicago-based agency called Leo Burnett. At Leo Burnett, over a four-year period from 1986 to 1989, 98 per cent of business came bounding back from repeat clients. No other agency even came close.

    Furthermore, this Houdini of advertising has had an almost zero client defection rate for decades. In an almost boring, old fashioned way, they adopt a loyalty based management that keeps clients superglued to them. And it continues to amaze and fascinate the roller coaster advertising industry that can only watch in awe and extreme fascination.

    Which Brings Us Back to Webster’s, Doesn’t It?

    Now let’s look at how Webster’s Dictionary defines the word Client. It says: A client is one who comes under your care, guidance and protection.

    See those words?

    It doesn’t say someone you need to get money or make profits from. It asks, even beseeches you to care, protect and guide your clients, like you would with your own child. Everything you do, you do unselfishly for that child. You put your heart and soul into creating a safe, educated environment. You become the guide and the protector. You create a bubble as secure as you can to make absolutely sure they get the very best.

    Scary, isn’t it? Especially when you look out there at so many companies, whose single motive is to simply get the sale and move on.

    Hurricane Andrew Moved On, State Farm Moved Up

    As soon as the brouhaha of Andrew’s visit died down, up came the vultures from other insurance companies. They tried to woo State Farm policy holders with discounts and other incentives. Most of them found doors slammed in their face. Their customers were staying loyal no matter what bait was being dangled in front of them. When the chips were down, State Farm pitched in to help like family. There was no way the customers were going to let down their own family.

    Adhering strictly to Webster’s, State Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer r

    Impressions
    Even now, months after it happened, it surprises me when I think about it. No phone call. No heads up. No discussion. As I opened the email from a business associate, checking my messages from an airport lounge, I expected a routine update. Instead, I read a message severing our relationship.What startled me wasn't that this person decided it best to change a business situation. These things happen. It was how she informed me of her decision that brought the pain. You see, it's not just what you do that matters, it's how you do it.I discovered more about her in that instant than I had in the months we worked together. I learned she took the easy way over the right way; lacked relationship courage; and retreated from difficult encounters. Her intention was to severe the current working relationship, but in the process she also severed my respect. You see, how you do what you do speaks volumes about who you are and what you value. It's a telling impression that leaves an imprint on those you touch.Sure it's easier to
    ike you would with your own child. Everything you do, you do unselfishly for that child. You put your heart and soul into creating a safe, educated environment. You become the guide and the protector. You create a bubble as secure as you can to make absolutely sure they get the very best.

    Scary, isn’t it? Especially when you look out there at so many companies, whose single motive is to simply get the sale and move on.

    Hurricane Andrew Moved On, State Farm Moved Up

    As soon as the brouhaha of Andrew’s visit died down, up came the vultures from other insurance companies. They tried to woo State Farm policy holders with discounts and other incentives. Most of them found doors slammed in their face. Their customers were staying loyal no matter what bait was being dangled in front of them. When the chips were down, State Farm pitched in to help like family. There was no way the customers were going to let down their own family.

    Adhering strictly to Webster’s, State Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer r

    Business Background Check - It Pays to Know Someone Else's Business
    So what is business background check really all about? The following report includes some fascinating information about business background check--info you can use, not just the old stuff they used to tell you.You’ve got work to do and have to hire a business to do it. Whether it is a contractor to work on home improvement projects or you plan to build a swimming pool, you want to make sure you pick the right business to do the job for you. That is why a business background check will help you in your decision. You can find out if the company you are dealing with is a fly-by-night type of operation or a company with integrity.If you have got the time and patience, you can conduct your own business background check. The internet holds all sorts of information, just waiting to be discovered. However, you have to know where to look. The most common place to start is your local Better Business Bureau, especially if it is a locally owned business. The Better Business Bureau can help you verify the company’s address and c
    ate Farm had cared, guided and protected its clients. And the clients were repaying that with rock solid loyalty.

    Leo Burnett Did The Same With This Hidden Clause…

    The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged the standard vendor agreement of buying space, producing ads and maintaining confidentiality.

    It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.

    Founder Leo has been dead for over 30 years, but the tradition of caring, protecting and guiding doggedly lives on. Their policy is simple. If a customer runs into a bad year and has to cut back on its advertising - let’s say by 50 percent - Burnett doesn’t automatically cut back on its services by 50 percent and pull half of its management off the account. The company is willing to lose money on an account over the short term.

    The inevitable result? Of its 33 clients, 12 have been with the company for over twenty years, and 10 for over thirty years.

    Paying Attention to Webster’s Is Not Enough

    It needs more. And that more is called sacrifice. Just like with children, you can’t deal with fifty all at once. Each child needs its own time, space and guidance. This requires huge resources, and if you chase every possible client, you’re soon going to run yourself pretty ragged.

    The Leo Burnett Agency chooses carefully. It selects its potential clients, as you no doubt will. In 1994, 54 companies invited the agency to talk about a business relationship. Burnett pursued only five.

    If your selection of customers isn’t deliberate and systematic, you will run yourself ragged trying to service customers that share neither your dreams nor standards. Invariably, you will find discord and the desire to care, protect and guide will evaporate like moisture on a hot summer’s day.

    Care, Protect and Guide – Even If You Have To Send Clients To Your Competition!

    If you’re scared, back out now, because I’m going to ask you to do something no seemingly rational business does. That is, you care about your client so much, that you take pains to send them to your competition if you cannot help them.

    Hang on. This isn’t as bizarre as it sounds. If you really do care for your clients, you should want them to get the best advice possible. However, no one said you shouldn’t make money off this.

    If you sell high end BMWs and you know your client needs a more economical Toyota, you should logically send them over to your competition. However, if you set up a deal with the Toyota dealer, you can not only generate a commission, but also give your potential client a bonus or discount if they go specifically through you.

    Hey, those customers are going to walk anyway, once they find their exact needs aren’t being met. And if they get stuck with something they don’t really need, they’re going to be mighty mad once they find out. You aren’t doing yourself or them a favour by making them stick to what you have to offer. Sending them to a competitor that you know will treat them well, endears you to the customer and ensures a tidy profit as well.

    Welcome To The Land Of Endless Loyalty

    Loyalty at its very roots is exceedingly simple. It’s exactly like a parent-child relationship. While no doubt you will come to depend on technology as your client base grows, the enduring thread that binds it all is the underlying psychology.

    Inevitably, you won’t always have a trouble-free course, and both Leo Burnett and State Farm have had stormy days. The only way out of the driving rain is to heartily embrace the care, guidance and protection concept. Let it be your guiding light, far superior to any mumbo jumbo mission statement, leading to exponential profits and devoted clients.

    All you have to do to succeed is play Mother Hen.

    And say a silent thank you to a certain Mr.Webster.

    * Source: The Loyalty Factor by Frederick Reichheld. **Secondary Source: Me. I worked at Leo Burnett in the 90’s.

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