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Building a Winning Business — Leadership Blog — Tom Salonek

Effective Public Engagement – Look for Convergence, Create Awareness

MN LegislatureThis is the last post in my series on Fighting a Government Threat. My 8th lesson, Don’t assume that your counterpart thinks the way you do or is influenced by the same consideration, is underscored in the Harvard Business Review case study on this topic. Author Michael Hartman notes, “Especially when dealing with government entities, it’s important to carefully evaluate what factors are likely to affect their decision making. Will an article in the newspaper sway the governor? Or is he more apt to be persuaded by constituents, such as the company’s employees?”

While you most likely will think about an issue differently, it still is possible to (lesson #9) find points of convergence and show empathy for the goals of the Governor or legislators with whom you have a disagreement.

In the recent B2B tax proposal, the Governor’s good intentions and desire to generate more money to fund them offered little in the way of a solid, viable plan. I was careful to explain that I share the Governor’s love of our state and the many benefits it offers. I hoped that by noting our shared commitment to the state, he would be more open to hearing my thoughts on why I disagreed with his B2B proposal.

Finally, lesson #10: Build a positive relationship with the news media over time. I have spent the better part of the past two decades building relationships with the local business news community. Working with a publicist has helped, but at the end of the day I have agreed to participate in almost every request for an interview that has come my way.

Building relationships with the press takes time, but this credibility pays huge dividends when you want to speak out on an important issue. If reporters and editors already know you are a credible businessperson from past interactions, they are more likely to seek you out for quotes and consider your OpEd submissions for publication.

Effective Public Engagement – Engage, Speak, and Be Practical

Small-Man-Big-MoneyWhen a political proposal threatens your business, it is in the best interests of you and your employees to speak up in a public way. Hence, lesson #4: Engage your employees in the public debate as much as possible. We found this to be an effective technique when the Governor was pushing a proposal to tax business-to-business services recently.

Intertech employees were provided with factual information about the issue and a tool for identifying their local representatives in the State Legislature. I also gave them a copy of my Star Tribune OpEd and encouraged them to send it to their local representatives with a personal note.

Many employees chose to engage on this issue, which resulted in an invitation to join a group of business leaders to meet with the Governor and selected state reps about the issue. We would not have been at the table without our proactive work with employees around this issue.

Thus, lesson #5: Don’t be afraid to take a position and speak out about it.

For some business people, it feels uncomfortable to get involved in a political discussion or debate. After all, we’re used to running our businesses not making governmental decisions. But the business community is a major stakeholder and decisions that impact our livelihood and the livelihoods of our employees deserve our time and attention.

But don’t go ballistic and (lesson #6), Don’t make idle threats. In the B2B debate, I was careful not to threaten relocating Intertech to another state. I did, however, describe the lobbying efforts of other states to lure businesses such as mine to their lower-tax jurisdictions. In the HBR case study, the lesson is stated as “Never, ever make a threat you’re not willing to follow through on.” Why? “Hollow threats undermine a company’s credibility, and that’s hard to recover from.”

I also believe that making threats create an environment that is hostile and nonproductive. Much better to  (lesson #7) offer reasonable ideas and counter proposals that both parties can live with. I genuinely believe the Governor when he says he loves Minnesota and wants to build a strong future by beefing up education at all levels. and early learning opportunities for young children.

However, offering a paltry tax rebate to property owners seemed like a strange way to achieve that objective. I was not shy about pointing this out in my OpEd. I also acknowledged that while I’m not a fan of higher personal income taxes, I understand that more revenue is needed and that probably has to happen in some capacity to keep our state on a positive future course.

By meeting the Governor half-way on this issue, I hoped to show that I am a reasonable business person and a sincere Minnesota resident who deserves to have my thoughts about the B2B proposal seriously considered. The HBR case study summarizes this lesson this way: “Always look for a solution both parties can live with, even if it is not optimal for either one.”

My next post, and the last in this series, will look closer at lessons #8-10 on Fighting a Government Threat.

It’s Back… Minnesota Reconsiders a B2B Tax on Consulting

According to yesterday’s Star Tribune, the Minnesota Legislature is reconsidering a tax on B2B custom computer software services… here’s an excerpt from the Star Tribune article:

“To make up for the lost revenue, those who buy… custom software… would pay … sales taxes”

I wrote an article when this was first being considered by the Governor entitled Taxing business services is bad for Minnesota.  The principles in my OpEd are still accurate.  If you live in Minnesota and agree this is a bad idea, let your legislators know by using this simple automated site to voice your concern (it takes less than a minute).

Happy Mother’s Day – A 75 Year Study on the Impact of Moms

Tom with his mom and dad

Tom with his mom and dad

Mother’s Day is Sunday, May 12.

Whether your a son or a mom to a son, there’s a fascinating piece in this month’s issue of The Atlantic that describes some surprising results from one of the longest running longitudinal studies of human development.

The project, which began in 1938, has followed 268 Harvard undergraduate men for 75 years, “measuring an astonishing range of psychological, anthropological, and personal traits—from personality type to IQ to drinking habits to family relationships—in an effort to determine what factors contribute most strongly to human flourishing.”

Turns out that our relationships with our mothers matter – a lot! Specifically:

  • “Men who had ‘warm’ childhood relationships with their mothers earned an average of $87,000 more a year than men whose mothers were uncaring.”
  • “Men who had poor childhood relationships with their mothers were much more likely to develop dementia when old.”
  • “Late in their professional lives, the men’s boyhood relationships with their mothers—but not with their fathers—were associated with success at work.”

Happy Mother’s Day to my mom and my wife!

Effective Public Engagement – 3rd in a series of 5 posts

Old-School-GovernmentFighting a government threat is a lot like any important undertaking involving any constituent group. To be effective, you must first seek to understand before you work to be understood (this is a key takeaway in my book, Building a Winning Business). That’s why my first lesson is (1) Pay close attention to the issues and government proposals before they become laws!

It takes time to read newspapers and to follow the many proposals that are described, particularly at the beginning of the legislative season. If you don’t have time to personally monitor the political landscape, engage a professional to do this on your behalf (larger companies have public affairs teams in house who routinely do this important work). Don’t take a blasé approach to a potential threat in the early stages because the best time to influence a legislative outcome is before a proposal becomes a law.

Part of understanding proposed legislation should include an appreciation for what a politician is seeking to accomplish. Thus, my lesson #2: Seek to understand both sides of the issue so you can provide a reasonable, balanced perspective.

In the recent B2B debate, the Governor was clearly concerned about the long-term viability of our state. He repeatedly stated the need to make sure every single Minnesotan is prepared for the future with a solid education. Those are goals I, and many in the business community share.

This also explains why lesson #3, “Work to document your company’s contribution to the local community,” is so important. We need to prove that we have “skin in the game” when discussing what is best for our businesses, employees and the communities where we operate. During the B2B debate, we gathered information about where our employees live, how much we contribute in taxes and charitable contributions and other key data. This was woven into my articles and into direct conversations with members of the Minnesota State Legislature.

Next time: lessons 4-7

Marketing Director Wanted!

Yes-to-OpportunityThis is a deviation from my normal posts.  In the past, some of you have inquired about working at Intertech.  This position reports to the Intertech Partner in charge of training sales but has “dotted line” reporting to me.  If you have interest or know someone who may, please apply at Intertech’s website (http://www.Intertech.com/Jobs).  We’re looking for candidates in Minneapolis/St. Paul.  Below is the copy from the job posting on our site.

Intertech, an award-winning firm named the #1 mid-sized employer in Minnesota by Minnesota Business magazine in 2012 and eight-time winner of the Business Journal’s Best Places to Work competition, is looking for an exceptional Marketing Director.

This role will continue the drive in Intertech’s growth (Intertech is an eight time Inc. 500/5000 winner).

As a Marketing Director, we’re looking for someone who can provide direction to the leadership team yet organize and implement the day-to-day marketing activities.  We’re looking for an extraordinary individual who can:

  • Provide a yearly marketing plan with execution details
  • Manage activities and events like our newsletters, user group, and conference exhibiting
  • Engage our customers on social media
  • Create phenomenal content
  • Work with our outside marketing design firm on branding
  • Work with our outside retained public relations firm

Additional Skillsets Needed:

  • The ability to get the big picture and get things done
  • Past marketing experience
  • An undergraduate degree in marketing, business, or English is preferred
  • Excellent writing skills
  • Solid organization skills

Why Join Intertech?

There are many reasons Intertech is the employer of choice.  Below are just a few:

  • The ability as the Marketing Director to have an important voice and visible role in our firm
  • Flexible schedule including standing work-from-home day(s)
  • A remarkable environment. We’re the recipient of over 35 awards for work environment and growth
  • A three month paid sabbatical for every seven years of service

All the other stuff needed to be recognized as the #1 mid-sized employer in Minnesota… good pay, comprehensive benefits, …

Effective Public Engagement – 10 Guidelines

The-WhitehouseAs I mentioned in my previous post, Fighting a Government Threat is both an academic case study topic in the March 2013 issue of Harvard Business Review and is a subject that is quite personal for my company. In this and several upcoming posts I will share lessons learned from my own engagement with governmental leaders, as well as recommendations from the HBR case study of the same title.  So, without further adieu, here are my Top 10 Rules for Effective Public Engagement:

 

 

 

  1. Pay close attention to the issues and government proposals before they become laws!
  2. Seek to understand both sides of the issue so you can provide a reasonable, balanced perspective.
  3. Work to document your company’s contribution to the local community.
  4. Engage your employees in the public debate as much as possible.
  5. Don’t be afraid to take a position and speak out about it.
  6. Don’t make idle threats.
  7. Try to offer reasonable ideas/counter proposals that both parties can live with.
  8. Don’t assume that your counterpart thinks the way you do or is influenced by the same consideration.
  9. Work to find points of convergence and show empathy for the goals of the Governor or legislators with whom you have a disagreement.
  10. Build a positive relationship with the news media over time.

Next post I will take a closer look at items 1-3.

Effective Public Engagement

Little-Dog-Big-TeethMounting debt, increasing costs and a shrinking tax base have left many leaders at all governmental levels struggling to balance budgets and maintain service levels expected by constituents. Unfortunately, many politicians push tax increases as an almost knee-jerk solution, ignoring the negative impact higher taxes may have on businesses and consumers alike.

A recent case study in Harvard Business Review (HBR) entitled Fighting a Government Threat takes a close look at this scenario and provides commentary by Andrzej Klesyk, CEO of PZU Group and Michael Hartman, senior vice president of legal and regulatory affairs, DirectTV Latin America. The HBR article and commentary combined with the recent debate in Minnesota over the Governor’s proposed tax on business-to-business services, has inspired me to write a series of posts on the topic of Effective Public Engagement.

As you undoubtedly know, Governor Dayton’s proposed B2B tax ignited a firestorm in the local business community and, ultimately, the Governor chose to withdraw his proposal. I appreciate his willingness to listen and respond to the sincere concerns of small- and medium-sized business owners, as well as the CEOs of Minnesota’s largest companies, all of whom weighed in on this hot topic. I was among those participating in the debate and was gratified when the Star Tribune chose to publish my OpEd on the topic Taxing business services is bad for Minnesota.  I also was quoted in a related column by Star Tribune reporter Neal St. Anthony.

What can businesses like mine learn from this recent episode? There are a number of lessons, which I will share in my next few posts on this topic. Some are drawn from the HBR case study I referenced above and others are based on my own legislative debate experiences. I hope you will weigh in with your thoughts, questions and recommendations too!

Up next… 10 rules for effective public engagement.

Creativity Article Generates Feedback from HBR Readers… What Do You Think?

Business-Person-BullhornI noticed this month’s Harvard Business Review (March 2012) devoted two pages to reader comments on the article “Creativity as an Exercise in Self-Discovery.” Since I spent quite a few posts responding to that article, I thought you might be interested in how other people responded to it as well. I’m also hoping some of you will get inspired to share your own ideas about this topic too!

Is the world really divided into “creatives” and “noncreatives?” Maybe not, but many people still deem themselves unimaginative. The authors (Tom Kelley and David Kelley), both leaders at the design and innovation consulting firm IDEO, have discovered that “teaching” creativity is really a matter of helping people find the courage to tap into the “creative confidence” they already possess. (HBR, March 2013, p. 16).

Reader responses:

“The authors’ finding that they help people unblock creativity instead of “causing” it parallels my own research on how to get people to take personal responsibility for social problems. From picking up a candy wrapper on the sidewalk to organizing a political movement, the first step is to stop blocking people’s natural inclinations. When people take on a social problem, we tend to question their motives, for example. We accuse them of being self-righteous or holier-than-thou. It would be interesting to look at how we block the creativity of others in this way.” –Earl Babble, Campbell Professor Emeritus in Behavioral Sciences, Chapman University

“As they explained, the article’s examples are cases less of creativity than of pragmatism. Trial and error produces a better product over time, for example. We do not create so much as we discover for ourselves those things that previously existed. The ability of an individual to discover the same form of something in a different context is about the best we can hope for.” –Shawn Williamson, doctoral student, Claremont Graduate University

“It’s all about how long you can hold your breath. If you work right up against the deadline, the pressure can start to work for you and get the creative energy going.” – Graham Robertson, president, Beloved Brands

“Society’s perception of ‘creative people’ as only publicly imaginative or artistic individuals kills the self-confidence of engineers like me—logic-oriented people who try to be creative at work. Anyone can come up with original, elegant solutions if he or she (1) is knowledgeable about the situation at hand, (2) is comfortable enough to let the brain be flexible, (3) has the passion to spend time solving problems using his or her own solutions, not the common ones. We should talk about creativity in more pragmatic ways, not always referring to games, the arts, and spatial activities.” –Farnaz Motamediyan, researcher, Volvo Construction Equipment

“Can it be that innovation, in this context, is just a series of applications executed in a commonsensical way that works? Take two pieces of bread with a slice of ham on top instead of in the middle—it’s still a ham sandwich. Is that innovative?” –Arindom Borah, freelance consultant, water supply and treatment industry

“Imagine a world where everyone trusted his own creative confidence enough to allow old and unnecessary systems to fall away, knowing we could readily create a better way.” –Becky Blades, founder, Staristry

“Is it true that children who like solving puzzles become creative and innovative adults? I have observed this in my children. They always find something out of the ordinary to do.” –Charles Kaluwasha, consultant, ROI Travel Network

“My ability to come up with creative solutions has been developed through hands-on experience, and I would rather sit at a table with a group of 15 people speaking at once, trying to gain a single sentence of substance, than to sit in silence.” – Rosemary Braun, business development manager, Cisco Systems

Hope those letters spurred a few thoughts of your own. If so, please don’t be shy about sharing them here!

My next series of posts will look at the issue of “issues.” Specifically, how people in business can constructively engage in the public forum on issues of importance to their organizations.