Overdrive November 2008 - View All Articles 

It seems everywhere you turn nowadays business leaders are talking about the tumultuous state of the global economy, the upheaval of various industries and the cringe-inducing credit crisis.

It seems everywhere you turn nowadays business leaders are talking about the tumultuous state of the global economy, the upheaval of various industries and the cringe-inducing credit crisis.

As a global organization committed to keeping you on the path from success to significance, we are doing everything we can to ensure you’re assisted during these tough times. Did you know that EO offers members the following resources?

• Forum – Consider proactive presentations on the changing financial times in a safe and trusting environment. One member talks about her most recent Forum experience!
• Member Exchange – Need advice during these tough times? Submit a query utilizing the collective experience of more than 25,000 members of EO, the Young Presidents' Organization (YPO), the World Presidents' Organization (WPO) and the Chief Executives' Organization (CEO). Also, read about how one member used M2Mx to help keep his business successful!
• Watch a recent EOtv episode from 10 November (click on "Featured Videos" to access it). In this episode, the Webcast featured tips on conducting business during tough times, as well as advice on writing company values from an industry expert.
• Read EOnetwork articles written by your peers on the financial situation and leadership during tough times. Visit often as new articles will be rotated in and out!
• Write an article and submit it to EO for publication on our Web site or in one of our award-winning communication vehicles. You can have your voice heard by 7,000+ members around the world!
• Chapters can consider hosting panels to discuss crises as a chapter event and invite prospective members to participate.
• Start an EOGroup to discuss what's on your mind with your EO peers. You can also use this "Financial Crisis Management" EOGroup to seek help or provide assistance to your peers.
• Send stories to EO Global on how you are surviving, thriving or bucking the system during these turbulent times. We will pitch these stories to the media.
• Check out our abundant list of Officer Resources to improve chapter learning, peer-to-peer engagement and strengthen Forums, among other incentives.

As the Chapter President of EO Louisville, Kirk Hilbrecht knows how important it is for EOers to take advantage of member benefits. He knows this not only because he serves in a leadership position, but because he is a frequent user of these benefits.

As the Chapter President of EO Louisville, Kirk Hilbrecht knows how important it is for EOers to take advantage of member benefits. He knows this not only because he serves in a leadership position, but because he is a frequent user of these benefits. In fact, Kirk has already taken advantage of the Member Exchange (M2Mx) five times this year. Talk about leveraging your network!

M2Mx is a powerful peer-to-peer resource database that offers members the collective experience of more than 25,000 members of EO, the Young Presidents' Organization (YPO), the World Presidents' Organization (WPO) and the Chief Executives' Organization (CEO). When a member needs answers to pressing business and/or personal issues, M2Mx connects them with other business leaders who possess the most relevant experience to answer their question(s) in a secure, confidential and timely manner.

The query that prompted Kirk’s recurrent use of M2Mx was the difficulties he was experiencing with his new business partner, an individual with whom he had a precursory business relationship but little working relations. Unsure of where to seek advice after exploring the issue with his Forum, Kirk decided to try M2Mx for additional assistance.

“I was in a ‘pickle’ with my business partner,” he explained.  “We weren’t compatible, and ultimately, I didn’t see the relationship working out. I was seeking counsel on how to dissolve a 50/50 partnership while not destroying the company in the process.”

Kirk, who serves as President of Videobred, a full-service multimedia production facility, was immediately impressed with the system. Within minutes, he was given supportive responses to help him assess the dilemma and make an educated decision.

“I got four responses back within 10 minutes! I couldn’t believe it; the response time was phenomenal,” he said. “I could just go on and on about the ease of the system. It’s absolutely intuitive, 100 percent user-friendly and very, very effective.”

Kirk’s experience with M2Mx worked out better than he had anticipated, because instead of finding out ways to terminate the partnership efficiently, the feedback he obtained demonstrated methods in which he could improve the relationship and make it successful.

By following up with M2Mx respondents who were willing to share their experiences with him, Kirk was able to learn through a Gestalt Language Protocol approach and adopt methods to turn his business relationship around. According to Kirk, things are currently better than ever with his partner.

“You don’t know how it makes a guy like me, who is out here in Louisville, feel when I’m getting a positive and effective response from someone who is hundreds and even thousands of miles away,” he said. “If I wasn’t an EO member, I would not have had instantaneous access to all the tools Global brings to the table, including M2Mx. This just proves that EO membership does have its privileges."

For decades, Hong Kong has been called “The Gateway of China.” That title makes sense, considering the city has the highest concentration of trade-related businesses in the world.

For decades, Hong Kong has been called “The Gateway of China.” That title makes sense, considering the city has the highest concentration of trade-related businesses in the world. According to recent government figures, Hong Kong handled a whopping US$648 billion in trade in 2006 alone!

In 1994, I moved from the US to Hong Kong (where I was born) and started a software company with my business partner. We figured the Internet technology (IT) market in the region was still at its infancy, and that we should take advantage of being an early mover. And, since we were in Hong Kong, what better field to specialize in than trade?

There are 100,000+ companies currently involved in the trade industry, so it’s safe to say that there is huge potential for success. With this in mind, we set out to develop tools targeted to trading firms (as well as buying agents and factory owners) to help them streamline their operations and service their overseas customers. Little did we know what we’d be up against.

The Culture Factor
In Hong Kong, you can easily find large and successful businesses that have little or no IT infrastructure (desktop computers do not count). While there are exceptions, in general Hong Kong businessmen are more likely to invest in expensive equipment or constructing factory buildings than in software.

The Cost Factor
IT fans will be amazed at the amount of manual data re-keying that exists throughout companies’ supply chains. The phrase “I’d rather hire more people to re-key the data” is not uncommonly heard. The cost of employing clerical staff in Hong Kong is much lower than that of most developed countries. Businesses in Hong Kong and China are so closely linked that any clerical work that becomes expensive in Hong Kong is at risk of being moved to China. To our chagrin, the standard sales pitch of increasing staff productivity or reducing staff costs does not usually work in Hong Kong.

The Family Factor
Several years after starting our business, we learned that the vast majority of the trading firms are small, family-run businesses with an average of five employees. Though many of these firms have done well over the years, most of them embrace the notion that, “if it ain’t broke, don’t fix it.” As such, it is likely that these firms would not invest in intangibles that offer no immediate return. We quickly realized that our market had shrunk by orders of magnitude. 

The Competition Factor
With all of this said, things have started to change in recent years. For a long time Hong Kong was the de-facto route for sourcing products from China. Then China joined the World Trade Organization (WTO). China’s easing of trade regulations, the mainland’s improved English skills and the mere fact that it’s faster to fly to and from China have caused more and more corporate customers (e.g., large retailers and manufacturers) to source products from and contract with Chinese factories directly. Facing this pressure, some trading firms began to switching gears from offering pure trading and merchandizing services to more value-added services, including: product development, production management, quality management, logistics and finance.  

Many of the firms that were successful in the transformation have seen their businesses grow exponentially. And to our benefit, IT is increasingly being viewed as an integral part of supply chain management, as well as attracting and retaining customers. Today, our sourcing and supply chain management software is used by some of the largest trading companies, buying agents and retailers around the world. After 12 years and many mistakes, we are still learning all of the factors involved in becoming successful entrepreneurs, but at least now things are starting to get exciting around here.

You’ve heard of speed dating, right? Well, instead of exchanging phone numbers for follow-up dates, EO Los Angeles traded business cards with other members at a “speed-networking” event, held 14 October 2008.

You’ve heard of speed dating, right? Well, instead of exchanging phone numbers for follow-up dates, EO Los Angeles traded business cards with other members at a “speed-networking” event, held 14 October 2008.

The goal of the event was to facilitate relationship building within the organization through peer-to-peer networking. With the economy in a state of chaos and the potential for new business in a bind, the event allowed members a fast, fun few minutes to share how their businesses are coping, or even growing, in these troubled times.

The event generated a lot of interest among the membership. With more than 100 members in the chapter, entrepreneurs were given an opportunity to rekindle old friendships, establish new friendships and talk about their businesses.

“The speed networking event was a fun way for our members to get to know each other in an intimate setting,” said chapter member Hanna Rochelle Schmieder, who hosted the event. “EO Los Angeles has a very diverse and dynamic membership base, and strengthening our relationships internally is a key element to building a successful and powerful chapter.”

Speed dating, a series of short “dates” with a large number of people, is a recent trend in America. However, the idea was expanded on by EO Los Angeles to make the “dates” five-minute business interactions between peers. The goal at the end of the night was to collect as many business cards as possible.

“By taking the time to enhance the member experience, and that of our chapter mates, we were able to build stronger bonds, especially in these hard times,” said Chapter President Jamie Douraghy.

To learn more about this once-in-a-lifetime event, or how you can hold a similar event for your chapter, contact us.

creating leaders in your company, akhil shahni, eo bombay, lessons learned, member experience, better business practices, tips, experiential advice

As an entrepreneur, I’ve learned that successful management requires more than just assigning tasks to a team. It calls for a leader who can inspire team members to achieve their fullest potential.

People want to be guided by a person they respect, someone who has a clear sense of direction. To be that person, I’ve discovered that there are certain things an entrepreneur must be, know and do. Here are some of the things that I try to accomplish on a daily basis:

Test the Waters
I make it a point to find out what people think about my style of management. This could be a real eye-opener for me, but it is also the key to making changes to my leadership style. I have found that a relaxing and open environment will help draw out their honest opinions.

Listen Carefully
When my team members speak to me about all of their work-related worries, I do my best to hear them out. I convey empathy, suggest alternatives and create harmony within the team. Great leaders are great listeners!

Make a Connection
I take complete responsibility for how I am heard, and I always try to rephrase my message to make it sound positive. Effective communication is a fine art.

Try to Be a People Person
An integral part of leadership skills is to learn to respect your team’s capabilities. To do this, I let my team members take decisions on certain issues. Instead of being a watchdog, I trust them with their work.

Leave No Room for Doubt
I communicate to my team my expectations for their performance, I tell them why the team has been formed and how important they are to the organization.

Review Progress:
Periodically, I make sure to talk through the team’s progress, so everyone knows where they’re headed. I find it’s important to have everyone on the same page.

Be Generous with Praise
I anticipate and recognize their achievements. I reward an extra special performance to motivate them to take on further challenges.

Make Room for Innovation
In order to stay accessible and approachable, I tell my team that I’m open to creative thinking, unique solutions and new ideas, even if they sound a little wacky at first. By allowing for a measure of risk taking, I may find the answers I never knew I needed.

Let Them in on the Decision-Making Process
For most people, change is particularly hard to swallow. If I involve my team in the decision-making process, chances are I’ll improve the odds of a successful implementation when it comes to projects and tasks.

Enjoy the Experience
Last but not least, I make it fun for staff to work with one another. People rarely remember what you say, but they’ll never forget how you made them feel— that’s the crux of leadership team-building.

Akhil Shahani runs www.SmartEntrepreneur.Net, an entrepreneurial portal dedicated to helping others become better businesspeople.

EO recently announced the winner of its 2008 Global Student Entrepreneur Awards (GSEA): Dominic Coryell (pictured right), a student from Northeastern University. Dominic’s company, Husky Express, is a high-tech laundry and dry-cleaning service.

EO recently announced the winner of its 2008 Global Student Entrepreneur Awards (GSEA): Dominic Coryell, a student from Northeastern University. Dominic’s company, Husky Express, is a high-tech laundry and dry-cleaning service.

Dominic emerged from a group of 26 finalists to win this year’s GSEA competition, a tremendous feat for top undergraduate student business owners. The annual competition, presented by Mercedes-Benz Financial, attracted 1,000+ collegians from more than 300 universities in 11 countries around the world. The finalists' businesses represented more than US$20 million in sales. 

“The number and caliber of award nominations that GSEA receives is more impressive each year. We congratulate this year’s winners for distinguishing themselves from a talented pool of innovative young business owners,” said Dave Galbenski, EO Chairman. “Entrepreneurs drive economic recovery during down-turns. We are proud to offer programs like GSEA that nurture the next generation of business leaders.”

Dominic was also given the Innovation Award for Husky Express’ implementation of a fully-automated process that provides high-quality, next-day delivery and pick up of garments, efficiencies not commonly associated with the industry. Second place in the competition, as well as the recipient of the Lessons from the Edge Award, was Joseph Pascaretta from the University of Michigan, owner of Alps Technology International. Seth Flowerman from Cornell University was awarded third place and the Social Impact Award for his company, Career Explorations, LLC.   

The 26 finalists—representing Puerto Rico, Canada, the United Kingdom, Sweden, Australia and the United States—presented their businesses to a panel of accomplished business leaders, including Robert Toru Kiyosaki, author of Rich Dad, Poor Dad, and Peter Thomas, Chairman Emeritus of EO. The EO-assembled panel was held from 5-6 November in Chicago, Illinois, USA.

Dominic will receive more than US$100,000 in cash and donated services by leading entrepreneurs, including Web services, public relations, general business consulting and printing, a year’s mentoring by an EO member and a year’s tuition to the EO Accelerator Program.

Years ago, when I was working for a large conglomerate, I hated having to deal with the human resources (HR) department. It was my pet peeve.

Years ago, when I was working for a large conglomerate, I hated having to deal with the human resources (HR) department. It was my pet peeve. To be blunt, it seemed like HR was more concerned about following rules and keeping the company out of legal trouble than it was about finding and keeping the best and brightest people.

When I started Rising Medical Solutions, I envisioned something better— a great place to work with little bureaucracy and talented, happy people. Mind you, this goal did not stem from any bleeding-heart, ivory-tower philosophy. Simply put, the company with the best, most focused talent wins, and my competitive nature, lofty goals and desire to enjoy my own working environment requires such a team.

What are some secrets to establishing a great human resources department? To me, my “secret” is simple— we’ll never have an HR department, because there is no advantage. That’s why I established a talent management department (TMD), not an HR department. Believe me, it’s more than semantics. What’s the difference? In basic terms, traditional HR assumes the worst about people and seeks to avoid the danger, while TMD assumes everyone wants to be great and helps them achieve it. HR focuses on rules and risk avoidance. TMD focuses on empowerment and results. HR emphasizes policy, process and procedure. TMD emphasizes people, potential, and yes, profit.

How does my staff take to this concept? We tell our employees exactly why we don’t have an HR department, and they seem to agree. It’s even become a great recruiting tool. When beefing up our TMD staff recently, our job posting was headed, “We Don’t Call it HR.” Those who “get it” were the first to apply.

Thanks to this unique approach to talent management, I've been able to surround myself with innovative employees eager to learn and grow in a productive environment. And really, isn't that what good business is all about?

In the days immediately following Hurricane Gustav, when several EO members in Baton Rouge, Louisiana, USA, were struggling to get their businesses back up and running, EO New Orleans launched an interactive online blog.

In the days immediately following Hurricane Gustav, when several EO members in Baton Rouge, Louisiana, USA, were struggling to get their businesses back up and running, EO New Orleans launched an interactive online blog. Its purpose: to provide EO members with a means to ask for, or offer, help during emergencies, including those caused by the hurricane.

During Gustav, rains and winds flooded much of the Baton Rouge area and knocked out power to a large portion of rural South Louisiana. At the same time, Hurricane Ike was moving into the Gulf of Mexico. To New Orleans residents, this was an eerie reminder of the devastating one-two punch we took from Hurricanes Katrina and Rita in 2005.

Were it not for the assistance of my EO peers during these nature-induced emergencies, I would have been in trouble. For example, I would have been without office space for weeks after Katrina without the help of fellow EOer Kevin Bankston. He graciously loaned me space in his Baton Rouge printing company while I waited to get back into my New Orleans offices. That bit of generosity saved my sanity and helped me get my business out of intensive care and into recovery mode.

Our blog was originally used for our chapter, but it proved so popular that we created one for EO Houston, too. Thanks to these blogs, members are getting the attention and assistance they need. This blog is a new communications tool for my EO group. Our intention was that it would serve as an online bulletin board where members could post a message about what they needed or could share with other members whose businesses or homes were in peril. Members could post messages for other members to read via computer or hand-held devices, even when other communications systems were inaccessible due to power failures. 

For example, 22 people responded to the first posting, titled “Just in case,” with several offers of support. Afterward, over the next few days, as Hurricane Ike continued along its path, EOers from across the Gulf region posted messages offering temporary housing or office space, food and even sheets of plywood to board up windows and doors against powerful storm winds. EO New Orleans President Jude Olinger posted a list of practical tips for business survival compiled from his own experiences with Katrina and Gustav, and EO Dallas President Rob Enright offered his support on behalf of his entire chapter.

Once the storm made landfall, the content of new postings changed to requests for contractors, utility trailers to haul away debris, relocation services and generators. Some postings were sad— one member had the roof ripped off his business and extensive rain damage inside. Other messages were moving. Ron Merrill from EO Houston wrote, “After 3 years in EO, I thought I knew what it was all about. This event has totally changed my perspective. Thanks to all for their generosity, support and advice.”

Blogging has many uses in today’s online world. Primarily, it’s a way of bringing people together to a place where those who share similar interests can exchange ideas, opinions or information online. It’s an easy tool to set up and use, and as we learned in the Gulf Coast region, a very useful emergency tool when other communications methods are unreliable. Thanks to the EO network and our blog, we were able to band together in a time of need.

Women entrepreneurs interested in growing as business leaders, forging new friendships and gaining insight into the EO network met for a memorable "EO Women’s Retreat" on 18-21 September 2008 in Las Vegas, Nevada, USA.