Leadership – An introduction

Rowena (Ro) Crosbie is the president of Tero International Inc. This is her first IowaBiz blog post.

Leadership is all around us. In our businesses, governments, sports teams, homes, schools andRowena Crosbie
communities. Many of us are called to lead formally. All of us are called to lead informally. 

What is leadership? Who is qualified to lead? What are the qualities of leaders? How do leaders bring out the best in others? What role does hard work play? What about ethics and values? Where does motivation and emotional intelligence fit in?

The definitions of leadership are numerous and the theories about what makes an effective leader are mixed. We do know that leadership is learned and that most leadership happens on a small-scale in everyday situations.   

This blog is dedicated to the subject of leadership and will be published twice a month. Stories, research studies and theories will be presented here. 

Why a leadership blog?

In 1993, I started Tero International with an idea and $200 that the bank required to open a business account. The first Tero office was a spare bedroom in our home. I named two house cats vice presidents of the company. They were my constant companions (at least as constant as you can be when you sleep 16 hours a day). Leadership was simple.

The idea: To provide presentation skills training to professionals who believed that competitive advantage was due, at least in part, to the ability to communicate persuasively and confidently.  It was a good idea in 1993 and corporate education is even more critical two decades later. 

Today the cats are retired, the business has grown and my role has changed. I am privileged to lead a team of professionals committed to helping clients build leadership and interpersonal skills. Like most of us, I have been a work-in-progress in developing my own leadership capacity. Unlike most of us, my job allows me to immerse myself in leadership research, a time-consuming luxury few leaders enjoy. This blog will share insights from both vantage points.

We hope that in this blog you will find ideas, inspiration and a community to help you develop your leadership capacity and improve things in whatever context you lead. For Tero graduates, we hope this blog is a valuable resource to further your professional development.

Learning leadership is a journey that happens over the course of a lifetime and in partnership with others. I look forward to our travels together and welcome your comments, suggestions and questions.

Asking for referrals doesn't work

Carl Maerz is a co-founder of Rocket Referrals, a startup company focused on helping businesses gain referrals from customers.

Needless to say I discuss the topic of referrals on a daily basis. I meet with individuals working in service industries mainly- those where close relationships with clients is common and referrals are important to growing their business. And just as I sink into the adjacent chair and initiate conversation I am met with this: “You’re right, I need to be better about asking for them.” At first I wanted to stop the agents, lawyers, advisors, realtors, doctors, (you name it) in their tracks and shout “you don’t need to ask!” But anymore I don’t even wince at this widely held misconception. I simply lean back in my chair and explain that, not only is there no need to ask for referrals - but doing so is remarkably ineffective, and there is research to back it up.

Screen Shot 2014-04-11 at 3.25.06 PMWithout doubt this will turn the notion of referrals upside down for many people. But, the most effective referral strategies are proven to include tactics that do not include asking for referrals. A study by Advisor Impact, which focused on customer loyalty and referrals, surveyed over 1,000 clients and asked the reasons why they referred a service to others. An overwhelming 98% cited reasons that included helping their friends and family. Only 2% of the cases did clients say they referred because the business asked them for a name of a friend. This research proved that by not first identifying customers likely to refer, businesses were asking the wrong people to give a referral. Also, by asking for names, they were not effectively leveraging the reasons why people refer, and thus yielding scanty results.

Avoiding asking for referrals doesn’t mean you should let your referral strategy take care of itself. Doing nothing at all just as ineffective. Unfortunately, customer satisfaction alone doesn’t translate into referrals - it is merely a prerequisite. So, asking for referrals is a no-no, and sitting back relying on happy customers to speak up also doesn’t work. Here’s what you can do to increase referrals, and it doesn’t involve uncomfortably asking your clients for names.

Identify your most loyal & disgruntled clients

By finding your most loyal and engaged customers you are able to refine your communication - making your content more effective, personalized, and cost efficient. Also, by identifying your disgruntled clients will also not only increase customer retention, but converting frowns into smiles is a prime opportunity to capture referrals. For more info on how to gauge customer loyalty see the Net Promoter Score system.

Convey the importance of referrals

Let your clients know that you value referrals. Tell them that you would love to help their friends and family. This is accomplished by developing the referral mindset which I discuss in an earlier post. By doing so you will teach your clients that referring you is not only welcomed, but appreciated.

Coach your referral sources

Provide your most loyal customers with content that will encourage more referrals. In other words, enable your referral sources so that when they are motivated to refer you they know what to say, and to whom. Educate them on who your most ideal customers are. Inform them on the wide breadth of services you offer. Describe the triggers (life events) to look for that indicate a good person to refer. Make it easy to pass on your contact information. Tell stories that so that you are more easily introduced into conversation.

Touch your customers

I’m not asking that you invade their personal space here, just to make use of important touchpoints. Send loyalty cards, birthday cards, anniversary cards, National Pigs-In-A-Blanket Day cards (yes it’s real, and this month!). The goal is to keep you top-of-mind. The more personalized and special the better. I recommend sending handwritten cards. It is also a good idea to have an informative newsletter. Let your customers know that you are here for them and appreciate their loyalty! They will think more of you, and of you more often.

Now, I am glad we cleared up the subject of asking for referrals. Makes me feel warm and fuzzy knowing that perhaps less people will ask for names and start obtaining the referrals they deserve!

It's Tax Day and a New Iowa Law Will Govern Shareholder Access to Corporate Financial Records

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Matt McKinney is an attorney at BrownWinick Attorneys at Law.

Given that this post is being published on tax day, I thought it would be fitting to dicsuss new legislation signed into law just days ago that changes how shareholders in Iowa corporations receive and access corporate financial recrods. On March 26, Iowa Governor, Terry Branstad, signed a new bill (Senate File 2200) into law that modifies the manner in which Iowa corporations are required to provide financial information to their shareholders.

Previous Iowa law required most Iowa corporations to deliver certain financial information to their shareholders within 120 days of the corporation's fiscal year end.

Such information inlcluded providing shareholders with a balance sheet, an income statement, and a statement of changes in shareholders’ equity. The new Iowa law provides that many Iowa corporations, including those with less than 100 shareholders, are no longer required to deliver financial statements to shareholders if they meet certain minimum standards. Additionally and in an apparent effort to further modernize Iowa's corporate laws and save a few trees, Iowa's new law permits certain Iowa corporations to comply with the new financial notice requirements by making financial statements accessable to shareholders via the internet.  

To read the full text of Iowa's new law, including a redlined verion of Iowa's prior law on the topic click here. Further, if you are curious and interested in learning about all new legislation signed into law thus far during the 2014 legislative session, click here.

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