Last week I sat reading an email from one of the mailing lists that I receive. Some Internet friends and I have shared our lives on this list for well over a decade. From life and death to kids with croup, we’ve laughed and cried together. Maybe I’ll tell you more about the group one of these days, but for now, I’d like to let you in our conversation from last week: the changing face of business.

My friend Cindy Collins-Smith, the editor of Customer Relationship Management magazine who has had the opportunity to edit thought leaders such as Don Peppers/Martha Rogers, Chip Bell and Pete Blackshaw, among others, put it very well and succinctly:

Loyalty, not individual sales, is what will sustain [businesses] over the long term. [The] idea of maximizing profit at every point of contact is 20th century capitalism, not 21st. Successful 21st century capitalists will be looking for ways to build relationships with customers (audiences) over time, not just looking for immediate, short term profits.

This is a fundamental paradigm shift, and many businesses are missing it. In fact, many people are doing their level best to pretend that nothing has changed; that we’ll go back to the way things were. Nothing could be farther from the truth.

Twenty years ago, very few people had heard of the Internet. Today, it is a staple of every day life from the streets of Manhattan to the mud walkways of Kigali, Rwanda. The world is smaller and more interconnected than ever before, and the process is accelerating. How will you respond to this brave new world? How you respond will determine the degree of your success.

Ten years ago, most businesses poo-pooed the Web. They didn’t see the value or the importance. While they were busy holding on to the past, visionary entrepreneurs like my friend and coach Matt Furey were creating Internet empires that would generate millions of dollars in sustainable revenue.

Today, we find ourselves at another juncture very similar to those turning points. Business is once again driven by relationships as it was a century ago. Now, though, those relationships are with like-minded people anywhere in the world. And today, the most powerful technology drivers are the social media sites like Twitter, Facebook, YouTube, and others.

Social media really is the wild west, though. Even those of us who have been involved in various social media for many years (for me, it started over 25 years ago!) are finding it work to stay on top of the ebbs and flows. Yet this is what you as a business leader need to do to remain competitive and to catch this wave. So get on it!

If you want some help, get it from someone who focuses on business first, not the latest gadgets and “cool sites.” A number of experienced business people have done just that and so I am working with them to build social media into their overall business strategy. It’s your turn.

To YOUR success,
ssh, your Geek Whisperer

PS Because my work with my clients is so hands-on, I can only take 3 more clients for the Social Media QuickStart program. Jump on it now!

This is a tough one…

As I sat in my family room this morning, dwelling on the beauty of spring in Colorado, breathing in the delicious morning air, I couldn’t escape the thought that has been pressing on me for two weeks or more: What have you done for me… lately?

Perhaps you’ve heard this said by a colleague bitter at the turn of event at work. They’ve worked hard and delivered some great value for the company in the past, but that doesn’t seem to matter. Now it’s all about, “What have you done for me… lately?”

Perhaps you’ve even felt this way. I know that I have.

Let’s turn it around for a minute to see whether or not it makes sense…

Imagine that you have a problem with an appliance — say your washing machine. A helpful repairman comes to your home and does an excellent job fixing it. You are grateful, and pay him whatever the fee was. All went well.

However, six months later, he shows up on your doorstep. “Remember when I fixed your washing machine?” he asks. “I’ve run into a bit of a lull and need some more to make my bills. So, would you please pay me?” Are you eager to pay him more? Do you feel like you owe him more?

Of course not! He hasn’t done anything for you… lately.

It’s no different when the roles are reversed.

The key is to understand your Master Equation, and to make sure that you’re adding value to your side of that equation every day. As Carl Hubbell said, “ A fellow doesn’t last long on what he has done. He’s got to keep on delivering as he goes along.”

What are you delivering today that is of outstanding value?

To YOUR success,
ssh

PS My coaching students get personal feedback on both creating and communicating value. I may have a couple of slots opening. If you’re interested, just send me a comment.

Before you get the wrong impression and before I go any further, let me just say that I love London. My wife Terry and I are enjoying our time here immensely as we celebrate our 25th wedding anniversary here, but, just like in the States, they just don’t get it.

Today, the famously blunt British press was all over the Prime Minister (PM), his cabinet, and the Members of Parliament (MPs). Seems that many of the government’s so-called servants have been busy ringing up tabs at taxpayer expense, many of which the press and constituents find wrong — especially, as the press like to point out, during a recession.

I’ll talk more about that later this week, but for now I want to focus in on a statement that was repeated multiple times this morning: It seems that the opposition is convinced that PM Gordon Brown can’t “fix the recession” and his few remaining supporters are convinced that he’s the right man for that job.

Irrelevant and misleading commentary. It’s CRAZY!

For anyone to claim that government has a way to “fix” anything is the height of both stupidity and conceit. They have no such power, and, in fact, are finding their power more reduced by the day.

The good news for you, though, is that it doesn’t matter which is true. There IS a way to fix the recession.

How?

You do it.

That’s right, YOU.

It’s really not hard to understand. It just takes some work. Here’s the secret: produce a product or service that enough other people value enough to make it profitable for you. Then, sell enough of the product or service to earn as much as you would like.

And yes, it really IS that simple. That’s how it all works.

So ignore the press. In fact, kill your TV and stop your newspaper subscription. As CNN found when they interviewed me, I get my news from Twitter and Facebook! Just dump the rest of that stuff. It’s a waste of your time and bombards you with so much negative energy that it takes hours to recover.

What will you produce that others will want?

To YOUR success,
ssh

PS Yes, this works even if you have a job. More on that tomorrow.

It was 15 years ago that the process began for me. I was sitting in my manager’s office at IBM, getting yet another positive performance appraisal. After 11 years with IBM, I had matriculated to a senior technical position, was well-respected around the world by my colleagues, and had helped create a business that would one day rescue IBM. But, my manager was talking about my value, and what she said shocked me. She said, “Steve, I don’t understand why you’re still here. I don’t want to lose you, but I can’t give you the raise you deserve. You could make two or three times what you’re making here if you were out there. Why are you still here?”

It was an interesting question, and one that propelled me onto a path I’m still following to this day. Before I started on that road, though, I had to figure out my master equation.

First, though, remember my post about how the economy really works? In it, I described how value is the key ingredient for determining your success in life and how other people see you. The key to really understanding your value and the amount of value you have to generate is your master equation. And after that meeting, I had to figure out mine.

Here is how I did it:

First, I determined what I wanted to earn in order to maintain our commitments and our basic wants, including all of the costs for benefits that I had taken for granted at IBM like health insurance, computers, office space, and anything else that I would require to run my business. This was a number similar to what IBM called the “burdened cost” of an employee (salary, benefits, and the facilities and equipment required). If you are an employee, it’s the cost of having you as an employee to your employer.

Second, with that number, I worked the equations.

For purposes of illustration, let’s say that I decided that I would need $150,000 per year to make it all work. That’s the amount above the costs for any products that I would sell. That is what I would need to make a business work. The equation answers this question:

How many customers do I need at what profit per purchase to earn this amount?

Using our nice round number, I would need to sell 150,000 people my product or service at a $1 profit each.

Or, I would need to sell 75,000 people my product or service at a $2 profit.

Or, I could sell one person at a $150,000 profit.

Or anything in-between.

Those numbers give you the minimum value that you must add in order for your customers to be willing to pay your price. Your sales job gets easier if you add substantially more value. With my coaching clients, we work on finding ways to add ten time the value so that their customers see that it’s obviously in their best interest to buy from them at those prices.

What about you?

Work these equations for yourself. Are you worth substantially more than your employer or customers are paying for you? The more valuable you are, the more obvious it is that it is in their best interest for your customers (or your employer) to continue working with you.

Those who are most valuable have the greatest chance for success. Every day, you can determine your value, and then you can drop back and look at a broader view to see how you are delivering value to those around you.

It gets really interesting when you realize that value isn’t just about money.

Let me know the thoughts that this brings up for you. And…

Let’s go!
ssh

PS I did just get a new shipment of the Mastering Life book, so I can make a limited number available personally autographed. Visit my book page to check it out and order while I still have some.

Earlier this week, I sat in our kitchen surrounded by two dozen members of Terry’s family. The conversation was ringing off the walls, as the family members dug into the food generously laid out by friends who supported us during this difficult time (for more on that, check this blog entry). I sat quietly for much of the time and listened to what people were saying.

The topics ranged widely as you’d imagine, but work, business, and the economy figured prominently, especially since the family is spread from Colorado to Connecticut and New York City, with Peoria, IL thrown in for good measure.

As I listened, I realized that there are many people who do not understand even the simplest truths about “the economy” or “jobs” or “money” or who needs to take action to fix what’s wrong. That’s when I realized that funeral or no funeral, I need to sit down and write you about this to make sure that YOU know.

First, let’s make sure that we’re clear: YOU are selling something. Your time, your personality, your expertise is for sale, and ultimately, everyone in your life decides if you’re worth whatever you cost. I know; it’s a cruel truth, but it’s the truth. And that truth, once truly understood, will give you all you need to be as successful in life as you want to be.

Want more? Be worth more. One of my favorite people (Zig Ziglar) says it this way: “You can have anything you want in life if you are just willing to help enough other people get what THEY want.” This is the way that compensation moves from one person to another. In fact, it’s the ONLY way.

To prove it, turn it around: Will you pay “too much” for something? Do you spend “too much time” with people who don’t make your life better in return?

Of course not.

In that case, the only way to get others to pay you what you want, to spend time with you, or to compensate you in any other way is to deliver to them something they value MORE than what you cost them.

This is the secret truth that so many people miss. And, in fact, it is the truth that puts the lie to much of what’s being said and published these days.

No one owes you anything. You don’t owe anyone else anything. Each of us is free to give to others, to compensate others, or to walk away at any time. This goes for your employer, your customers, your family, and YOU.

This is the Law of Value.

It doesn’t matter if you believe it or not. It won’t change. But, when you dwell on it enough to “get it,” it will change your life for the better. Immediately. All becomes clear.

My coaching students have seen this in their lives and businesses. They are taking it on and making a difference in the lives of their customers and their families. You can, too. Spend the time to really understand this, then make the commitment and change your life.

Let’s go!
ssh

PS You can have the same experience as the members of my coaching group. Apply today and I will contact you directly and work with you personally to give you the guidance and accountability you need to be successful. Go here today.

I was sound asleep when the phone range. I learned later that it was 2:45am. Not usually a good time for a phone call. Terry answered it, and came back to bed, so I rolled over and went back to sleep.

The phone rang again at 6:05am. That second one was the call.

If you’ve followed along, you know that I wrote about Terry’s dad recently and his battle with Alzheimer’s. I always thought it was an insidious disease, but watching him battle it and seeing the impact it had on him, on Terry’s mom (who had spent the past 67 years with him!), and the rest of the family, I have come to hate it. It is evil. It is a disease that eats your brain. And I will not allow it to impact you or me without a fight!

A few years ago, I met a man who has been fighting this fight longer than I have. The first time I met him, I was struck by his gentle nature and his deep intelligence. I have come to appreciate him as a friend. In the process, he has begun to teach me how to fight back against the enemies of our brains. I would like you to be able to do it, too, and now he’s put a package together for laypeople to understand what we can do to fight, to stop brain cell death, and to reverse its impacts.

You really need to get this!

His new book is called “Dead Brain Cells Don’t Lie: 97 Ways To Stamp Out Memory Loss, Slow Brain Aging, and Prevent Alzheimer’s”. But it’s much more than just a book – it’s a complete memory-boosting program complete with a special DVD featuring Dr. Dharma’s Secret Sequence to Grow New Brain Cells. With this, you can improve the power of your brain fast. Plus, he’s included an amazing array of complimentary bonuses to make sure you have every tool you need to help you truly succeed at boosting your memory and warding off Alzheimer’s disease.

This system is finally available after almost a year in production. I can’t think of a more important gift to yourself or someone you love. The good news is that the process is simple and anyone can do it. For some, it may require a shift in thinking. Regardless, if I can do something now to keep from the dark tunnel of memory loss, I’m going to do it.

That call came last Friday. Terry’s mom let us know that her dad had passed into eternity. His fight was over.

The good news for us is that we have the information to overcome this, thanks to Dr. Dharma’s research and the work he’s done to explain it to us. There is nothing about it that is hard. You can do everything he describes. You can reverse memory loss. You can reverse the effects of dead brain cells.

Go find out more and grab your copy today. I already have mine!

Let’s go!
ssh

P.S. Drugs can’t help with this one. The good news is that you can take care of your memory without it. Go learn more now.