Original Post on Utah Business.com Blog.

As we kick off the new year, it’s a good time for organizations to take inventory of last year’s marketing programs to evaluate what has been working and what needs to change. In many cases tweaks will be made—in others, a complete overhaul may be in order. Regardless, it’s safe to say that in the new economy most marketing managers are being forced to look at more creative ways to deliver their key messages.

Luxul Wireless is no different. Some of our 2009 programs have been tremendously successful and we will look to expand upon and improve them. At the same time, there are other marketing activities we will certainly reconsider and perhaps discontinue. After all, every program has a cost—even the “free” ones. And, with limited resources and a competitive market, it’s important that we focus on those activities that will deliver the best results.

As a company that sells primarily through distribution channels, much of our marketing effort goes towards leveraging channel partner programs. These programs consist of everything from advertising in channel publications to participation at tradeshows to providing sales training. Each of our channel partners has any number of marketing opportunities, some of which have been fantastic in helping to build Luxul product and brand awareness.

Nevertheless, we can never underestimate the importance of independently building the Luxul brand—a strong brand inspires confidence and is critical to the success of channel and partner activities. However, traditional brand development activities such as advertising and tradeshows aren’t a significant part of the plan. Rather, to further carry out our brand development efforts, we will be looking to complement our channel programs with targeted media relations activities, website optimization, social media marketing, educational webinars, and opt-in email campaigns. Doing more with less is a key Luxul product message that also epitomizes our business philosophy.

Personally, I’m glad to have 2009 behind us and am looking forward to the start of this new year. Overall, 2009 was a solid year for Luxul. More importantly, it was a year in which we positioned the company for high growth. In executing our 2009 strategies, some interesting markets and applications were identified that have lead to new product developments and some fantastic partnership opportunities. These opportunities will further alter some of our marketing strategies, messages, and programs. In my experience, that’s the best news of all—if those things aren’t evolving, then the company is dying. So stay tuned for some significant and exciting Luxul announcements in the coming months.

For many marketing managers with shrinking budgets, 2010 will be a year to show just how creative and resourceful you can be. As you evaluate your marketing strategies and budgets, be sure to explore online marketing, PR, and other tactics that can replace or supplement some of the more costly traditional programs. As we continue to adapt to this new economy, may we all enjoy a successful and prosperous year in Utah business!

Original Post on Utah Business.com Blog.

Small business is the lifeblood of Utah’s economy. Of the roughly 62,000 Utah firms with employees, 97 percent of them are classified as small (less than 500 employees) and provide 50 percent of the state’s private-sector employment. To varying degrees, this is true across the nation. According to Bureau of Labor Statistics’ Business Employment Dynamics (BED) figures, small businesses have accounted for about 65 percent of the private-sector net job creation over the past 15 years and represent approximately 50 percent of the nation’s 120 million private sector jobs.

That being the case, why has small business been largely ignored and excluded from the $787 billion economic stimulus bill? A February survey of small business owners by Discover Financial Services found that 70 percent said the stimulus bill had no impact on their businesses. Only 10 percent said it helped, and 17 percent contend it hurt their businesses. Furthermore, BED data suggests that small firms have suffered over 60 percent of the job losses from 2008 to the second quarter of 2009.

More recently, starting with the State of the Union Address, the Obama administration has been moderately aggressive about campaigning for a small business plan. Some of the key elements of the plan include:

• $30 billion in diverted TARP funds to community banks for the purpose of lending to small business.
• $5,000 tax credit for small businesses that hire new employees and incentives to increase wages or hours for existing employees.
• An increase in the maximum SBA 7(a) loan size from $2 million to $5 million. This is SBA’s primary loan program designed for start-up and existing small businesses.
• Continuing tax incentives that allow small businesses to more quickly write off investments in new equipment, rather than having to depreciate it over time
• Elimination of capital gains taxes on investments in small businesses.

While rather late to the game, on the surface these proposals seem to be a reasonable start for helping small business towards full recovery. On the other hand, what firm wants to be strapped with even more debt in an economic contraction? The fact is that unlike big government, entrepreneurs are experts in adapting to change. Most small business owners have already made appropriate adjustments to keep their doors open and will be skeptical about embracing programs from an administration that has been largely perceived as anti small business—and with good reason.

The fear of small business owners is well founded—the Obama administration has shown questionable integrity in supporting this important segment of the economy. Are struggling business owners willing to take the risk of expanding when a host of new taxes and more government regulatory oversight is clearly on the horizon? Why hire workers or increase operations amidst massive government expansion when you don’t know how high the tax bill will be after they get done implementing “hope” and “change?” From a business perspective, the expansion argument is not very compelling if these temporary tax credits and incentives are taken back through higher taxes and fees or increased interaction with ever-growing regulatory bodies.

While the Obama administration’s small business plan proposal may indeed be a step in the right direction, there is only one way to jump start small business expansion and job creation. Entrepreneurs and business owners need to be convinced that taking risks will result in real rewards—enabling them to keep more of what they earn without being overly burdened by unnecessary regulatory and government intrusions. The Obama administration has some serious work to do.

The content of this blog reflects the views and opinions of the author, and not necessarily those of Luxul Wireless.

Original Post on Utah Business.com Blog.

For the past week I’ve been traveling in the land of the Gaucho, Che, and Evita. As anyone that has visited beautiful Argentina can attest, it certainly has its allures. It is a country extremely rich in culture, diverse landscapes, and vast resources. With so much going for it, it’s hard to understand why Argentina hasn’t become more of a player on the world stage. Interestingly enough, some decades ago Argentina was recognized as one of the wealthiest nations and considered an emerging world power—neck and neck with the United States. So what happened?

While the answer to that question is far too complex for a single blog entry, the simplest answer comes down to leadership and bad management. Truth be known, Argentina has made bad management an art form that starts with government policy and leaches into everyday life. If you want a good look at how government meddling in the free market and imperious leadership can impact the psyche and culture of an entire nation, Argentina is the perfect case study.

Argentina is renowned for producing some of the best beef in the world. The conditions are also favorable for virtually all kinds of agricultural production. With the right focus and mindset, Argentina is capable of feeding the entire world. Yet, bizarre government restrictions, unclear regulations and high taxes on many agricultural exports act as a deterrent to export many products to other countries. Government meddling in the ranching industry has kept beef prices low, while forcing many cattle ranchers to look elsewhere to make a living. When it comes to imports of technology products, high taxes have made modernization a real challenge. Likewise, outrageous taxes on items considered to be luxuries can mean double the price for an automobile that would hardly be considered a luxury in the U.S.

These governmental idiocies have had a trickle-down effect on Argentine business, society, and culture. Farmers have been known to burn their crops, rather than sell at government regulated prices. Argentine banks are magnificent architectural specimens, yet simple transactions can take hours due to bureaucracy or outdated methods and technologies. Labor strikes are commonplace—happening pretty much on a weekly basis. During another recent visit, I traveled to Rosario, a city of some 1.5 million residents located 150 miles northwest of Buenos Aires. Upon arrival, I immediately noticed something peculiar—there was not a single taxi to be found. Apparently, all the taxi drivers were on strike because a driver had been assaulted the night before. Are you kidding me? Welcome to Argentina, where nonsensical leadership has produced a citizenry where common sense is not always so common.

As business leaders, it’s important to remember that corporate culture starts at the top—YOU set the tone. Corporate culture is more a reflection of leadership style and policies than of the individuals that make up your team. Your leadership style will show in the culture you create—and will ultimately be reflected in the bottom line.

Original Post on Utah Business.com Blog.

Thomas Edison once said, “Good fortune is what happens when opportunity meets with planning.” I can’t think of a more useful piece of advice for a business owner or manager. All too often, we get so buried in the details and daily grind of running a business that we don’t take that critical step back to get a good view of the big picture and look ahead.

At Luxul Wireless, we recently held an offsite executive planning and strategy meeting. It’s not always easy or convenient to get the entire management team together for a day. It’s even more of a challenge to keep everyone focused, minimize the distractions, and promote creative thought processes. However, in my experience, these events can be invaluable tools that help encourage better communication and teamwork, build morale, and generate creativity—all of which leads to a better company. Our Luxul event didn’t disappoint and generated a number of new and exciting ideas that we’re now evaluating.

When considering such an event, here are a few tips that can help make yours a success:

1) Consider the location. Get away from the office if at all possible. For the Luxul meeting, an investor and board member generously offered the use of his “cabin” near Park City. It was perfect. The relaxing setting and majestic views were exactly what we needed to encourage a productive and creative discussion.

2) Minimize distractions. This is the main reason for going offsite—the office is way too distracting. During the meetings, insist that all phones and laptops be turned off or otherwise put away.

3) Encourage participation. Our president, Jeff Curtis, did a great job of making sure all the participants were actively engaged. He opened with a short overview of Luxul’s current status and progress as well as an overview of what he hoped to accomplish throughout the day. Each participant then had a few minutes to present the status of departmental initiatives. This naturally led into an open discussion of Luxul strengths and weaknesses, current challenges and adjacent market or product opportunities.

4) Allow for creativity…to a point. Open forums can get off track really easily, so you need to moderate. Jeff did an excellent job of moderating the discussion and encouraging creative participation from each member of the team without letting us get too far out in the weeds.

5) Don’t try to solve every problem right then and there. Understand that this is a time for ideas and thoughts to be placed on the table and that the real fruits of the meeting will be realized in the following days and weeks. As your team digests the information and discussions, they will identify creative solutions, opportunities, and directions that will lead to real planning and execution.

Summarizing Mr. Edison’s advice to business owners and managers: Don’t let day to day operations drive out planning. Take the time to step back and evaluate how to best grow your business. Good planning makes for good decisions—which ultimately brings good fortune.

Original Post on Utah Business.com Blog.

I hate politics. Nonetheless, as a marketing guy, I can’t help but be intrigued by the rather tumultuous political climate in which we currently find ourselves. When it comes right down to it, politics is all about brand management—personal brands, party brands, and ultimately, the American brand. Branding is more than just logos, colors, or slogans. It’s about the core values of the branded entity and being true to those values. From that perspective, if we view the various players in the political theatre, which of them are practicing solid brand management principles? Perhaps that depends on the brand they are trying to create. Still, I must wonder if the brands being projected are consistent with what they envision. As an interested observer, I thought it might be fun to do a short brand analysis of a few of these political entities:
The Presidential Brand: The President represents the American ideal. Over many decades, this brand has been developed into something that is almost larger than life and not to be trifled with—the President is characterized as the leader of the free world, defender of the American way of life, and the embodiment of the strength of our nation. The Obama administration has taken the message of a “kinder, gentler America” to the rest of the world. While some world leaders have embraced this message, others have interpreted it as weakness. Regardless of whether you agree or disagree with the approach, there’s little doubt that in the eyes of the world and across most of America, the Presidential brand has changed. But is it the change Mr. Obama had in mind?

The White House Brand: The White House is a direct extension to the Presidential brand. Historically, it has represented the essence of America’s greatness and its core value system. It signifies unwavering integrity and dignity that is beyond reproach and above petty criticism. So in considering recent events, how has the current administration managed this brand? Let’s see…public bickering with political opponents….employing a roster of rather controversial characters….multiple incidents of mixed, retracted, or conflicting messages. It doesn’t take a marketing genius to recognize that the White House brand is falling flat and undermining the credibility of the Obama brand. Now, where are those PR experts?

The Congressional Brand: With approval ratings at an all time low, it’s safe to say that the Congressional brand could use a makeover. Republicans are often seen as confused, out of touch and weak, while the Democrats have taken on the bully brand of arrogance, exclusivity, and back room deals. As a whole, Congress is perceived as out of control, greedy, and inefficient. If Congress was a commercial entity, this negative brand would have qualified it for bankruptcy years ago.

While this analysis only scratches the surface, it’s fair to say that these political entities could use a lesson in brand management. So as a business owner, entrepreneur, or manager, how to go about building and/or managing a great brand? For starters, know your audience. Next, make sure your brand accurately reflects the values of those you’re trying to reach. Then, stay true to your brand. Finally…..avoid politics.

Original Post on Utah Business.com Blog.

One of the most frequent pieces of advice about doing business in Japan is to “know the culture.” But what exactly does that mean? For starters, it’s important to recognize the American and Japanese value systems don’t always align with each other. While a single blog entry could never come close to addressing the complexities of the Japanese value system, at a high level here are a few values to keep in mind when entering the Japanese market:

Value 1: Nothing is more important than relationships

In American business, logic is almost the highest of virtues. Present a sensible argument that clearly demonstrates a win, and generally you will have management support. In Japan, decisions aren’t always logical—rather, they are more typically based on relationships. Never assume that presenting a logical argument will get you the deal. Certainly, present the argument so the value is understood, but focus your efforts on gaining the trust and respect of your potential customers.

Value 2: Don’t ever let your partner lose face

In Japanese society, the concept of “Saving Face” is intertwined with the role of relationships. We discussed this concept last week, so I won’t rehash it here. Just keep in mind that the Japanese avoid embarrassment at all costs. Anything you do to either cause or help diffuse a potentially embarrassing situation will be remembered. Help your partner find a solution to a possible loss of face and you will have a friend, advocate and strong supporter for life.

Value 3: Find the right balance between “being Japanese” (i.e. when in Rome) and being a foreigner

As a foreigner, you need to know when it is necessary to act Japanese and when it’s appropriate to benefit from your own cultural diversity. A common mistake Americans make when trying to do business in Japan is to go to one extreme or the other. They either come in with this “cowboy” attitude or go way overboard trying to be totally Japanese. Keep in mind that the Japanese expect something different from foreigners and there are distinct advantages that can be gained by sharing your culture, while also being respectful of the Japanese culture.

Value 4: Be patient

In general, Americans are impatient—we want things done NOW. That’s because our goals and expectations are typically based on monthly and quarterly timeframes. The Japanese mindset is much more long-term in nature. While having many of the same short-term financial pressures, they look at time differently and prioritize accordingly. This doesn’t mean that you’re destined to only long-term success. It simply means that in entering the Japanese market, your initial goal must be to align interests. In doing so, you will break down a lot of barriers and shorten the sales cycle.

Doing business in Japan can be both frustrating and deeply rewarding. Do your homework so you go in with your eyes open. Then, be culturally aware—realizing that you may need to adjust your own thoughts about how business should be done.

Original Post on Utah Business.com Blog.

In 17th century Japan, a Samurai lived by a strict code of honor and loyalty to his lord. Honor (and acquiring wealth) was what he lived and died for. In modern day Japan, while many things have changed, honor and loyalty remain fixed within the Japanese character. Key to honor is the concept of “saving face”—the Japanese will go to great lengths to avoid embarrassment. The loss of face is not easily forgotten nor is it easily forgiven.

In some harsh corporate cultures in America, you win by cutting someone else. In Japan, if you do something that makes someone look bad (even inadvertently), they may smile and seem ok on the surface. However, behind that smile may be someone that now feels the need to become a roadblock to progress in order to save face—either ending the deal outright or perhaps waiting and acting as saboteur later on when it may be too late to change direction. On the other hand, by finding a creative solution to problems or concerns, you will have an advocate for life and strong supporter in making the deal move ahead.

At Linux Networx we were fortunate to have strong partnerships to help navigate the Japanese business culture. One of the largest customers was a major government lab that had purchased a multi-million dollar system. Because the system was built around newer, state-of-the-art technologies, there were inherent challenges in the deployment and operation of the system. Nonetheless, the customer was willing to take the risk—based on personal relationship and the prestige of having one of the top 50 supercomputing systems in the world.

As it turns out, the system fell short of expectations and even though the risks were understood beforehand, the lab director needed to save face. As head of international operations, I was “invited” to a meeting at the lab and was placed in the lonely position of facing 12 stone-faced lab executives across a gargantuan table in a conference room designed to intimidate. Even my distributor had conveniently found his way to the opposite side of the table. Fortunately, he had fully prepared me for what was to take place and we had also done our homework to present alternatives to resolve the current predicament. To make a long story short, the lab director saved face and my reward for helping him do so was an additional seven figure order and a friendship that persists to this day.

Japan is indeed a society of complicated relationships and obligations. And, from a business perspective it works—somehow, creating a balance between fierce loyalty and shrewd negotiations. When doing business in Japan, never underestimate the importance of personal relationships or the role that honor, loyalty, and saving face will play in your success.

Original Post on Utah Business.com Blog.

Katsuya Nishi, a long time friend and mentor in Japan, once told me to “learn the Asian face.” This valuable piece of advice was his way of telling me that while there may be physical similarities between the Asian cultures, that my success would be greatly enhanced by better understanding the differences. This message stuck with me and I made it a point to study and learn to recognize both the physical traits and cultural distinctions that characterize the various Asian societies.

In time, I came to realize that the differences in thought processes, culture, mannerisms, business customs and even physical features could oftentimes be striking—and that failing to understand the differences could prove fatal in a business setting. For instance, the Japanese are much more formal in business settings than their Korean and Chinese counterparts. While you may get away with being a bit more laid back in China, not following protocol in Japan can be considered offensive and turn you into persona non grata very quickly.

The Japanese are also very serious about the commitments they make and certainly expect the same from their partners. In Japanese culture, it’s a matter of honor and respect to do exactly what you say you will do. With that in mind, they can be slow to make commitments—but once the commitment is made, you can count on it happening. Contrast that with Chinese culture where the typical answer to almost any request is “yes”. And, while the intent is not necessarily to be any less honorable than the Japanese, this standard “yes” answer should not be construed as a commitment. Rather, it’s more of a sign that your request is understood and that it will be discussed and considered.

Despite these many cultural nuances and distinct business styles, at least one common trait can be found among the Asian societies—doing business is all about having the right relationships. The product or service being delivered is almost always secondary to the bond between the parties doing business together. For this reason, I always encourage companies looking to expand into Asia to seek out a local partner. Having the right local partner can significantly shorten the sales cycle and facilitate many product localization and logistical issues. Conversely, the absence of a partner typically means a longer, more drawn out process for market entry, as well as a significantly higher front end investment.

Asia represents a rich opportunity for expansion for many U.S. companies. At the same time, real success requires more than a passive commitment. For those wishing to make the commitment, I’m pleased to pass along the advice of my friend and mentor: learn the Asian face.

Original Post on Utah Business.com Blog.

While traveling in Asia recently, I have been reminded of that old adage about doing as the Romans do. If not taken too literally, this can be good advice about the importance of being culturally sensitive and avoiding what can be perceived as offensive behavior. In many parts of the world, Americans all too often have been labeled as arrogant, obnoxious, and even a bit boorish—not necessarily a stretch, especially when compared to certain Asian cultures that tend to be more conservative in social settings.

Last night when I sat down for dinner in the Sinchon district of Seoul, I couldn’t help but notice the group of American businessmen sitting two tables away. In fact, the entire restaurant couldn’t help but notice them. In rather typical American fashion they were being conspicuously loud and even a bit rude—totally oblivious to how their behavior might be perceived by those around them. Contrast the behavior of these fine gentlemen with that of the three Japanese ladies seated at the table next to me. They were the perfect picture of proper Japanese etiquette—talking quietly with hands folded neatly in front of them and making no effort to be noticed. The behavioral and obvious cultural differences were striking.

In business settings, experienced international executives typically understand and will shrug off potentially offensive behaviors as cultural. Certainly, if the business opportunity is compelling enough, they may indeed give even the most boorish of individuals a pass—but that doesn’t mean it’s ok. When in another country, it’s always good manners to observe and try to follow local behavioral customs. True international business success is attained by being respected, which comes from showing respect. I’ve heard some American businessmen dismiss this notion by saying, “I’m just being myself.” I’m not saying don’t be yourself—but be culturally sensitive.

Some years ago, the newly named CEO of a technology company I worked for wanted to visit our Japanese distributor in Tokyo. While there, he simply chose to be himself—and by doing so, he unwittingly trashed a long standing multi-million dollar business relationship in a single afternoon. It seems his behavior was perceived as arrogant and disrespectful towards the CEO of our distribution partner. Our partner’s CEO had been offended, and in order to “save face”, he chose to terminate the relationship. To this day I remain best of friends with the partner CEO; and because of our friendship, we were eventually able to recover the business relationship. Unfortunately, we never fully regained the momentum we had previously established in Japan.

Doing business internationally isn’t rocket science—it’s mostly about building relationships by being courteous and respectful. Use common sense. Observe and study the culture of the people you want to do business with and then conduct yourself accordingly. Always be sure to be yourself—your most polite, well-behaved self.

Original Post on Utah Business.com Blog.

There’s a maxim in the Unix programming philosophy that says programmers should “write programs that do one thing and do it well.” It’s a beautiful philosophy, and one that can be applied to almost anything in life. In business, if you can’t do that one primary function well, you certainly won’t survive to do another. It sounds simple, but the reality is that many companies struggle with this concept—oftentimes not even recognizing their primary function—and never seem to reach their potential. With that in mind, for some organizations, perhaps the initial goal should be to first clearly identify their primary function and learn do it right on an ongoing basis—then it becomes easier to focus on improvement to do that one thing better than anyone else.

Every time I see a manager or a company fail to do their primary function right, I wonder how they got to be where they are and how much better they could be with the right focus. Here are some real-world examples to illustrate the point:

According to the Wall Street Journal, the captain of a commuter plane that crashed near Buffalo, N.Y. in February had flunked numerous flight tests and was not adequately trained to respond to the stall prevention warning system. 50 people were killed in that accident. The one thing an airline needs to do right is get passengers safely from one place to another. I’m not saying that’s easy—but I’m pretty sure it includes having qualified and adequately trained pilots.

Some years ago I joined a technology startup. I soon learned that development on a particular project had stalled. Management couldn’t understand what was wrong and the VCs were getting restless. In digging a bit deeper, it turned out that marketing had specified a product for which engineering felt that the market window had collapsed and they were less than excited to be working on the project.

At another company, the opposite occurred. The engineers were designing and building what they wanted to sell—and not necessarily what customers wanted to buy. They thought the customers were all idiots. Where was marketing while all this was going on? Isn’t a company’s primary function to provide a product or service that customers want?

My advice for business owners, entrepreneurs, managers, and marketers: First, figure out the most important thing you should be doing. Then, never forget that doing that one thing—and doing it right on an ongoing basis—is priority one. Your success depends on it.