Friday, May 18, 2012

ING For Sales

Global insurers Manulife Financial Corp , Metlife and Prudential Financial Corp  are among suitors expected to place first-round bids on Friday to buy ING Groep's Asia life insurance unit in a deal worth about $6.5 billion to $7 billion, sources familiar with the matter said.

A sale topping $7 billion could rank as Asia's top insurance M&A deal and would help the bailed-out bancassurer repay the 3 billion euros ($3.81 billion) of state aid plus the 50 percent premium it still owes the Dutch government.

ING has turned into a divestment machine since receiving the state aid and has sold 15.2 billion euros worth of assets across the world. The Asian sales would figure among the top two deals from ING's stable.

As part of the Asian divestment, ING received about 10 initial bids for its Asian asset management business this week. The asset management business, expected to fetch between $500 million and $600 million, is being sold separately.

ING sent out a dozen information memorandums for its insurance business, which spans southeast Asia and includes operations in Japan and South Korea. A winning bid by a larger insurer could introduce more competition into Asia's rapidly growing life insurance market, currently dominated by AIA Group Ltd  and British insurer Prudential plc

Wednesday, May 16, 2012

More Than Equal


Hate only begets hate. Fear only begets fear. We’re not homogenous sheep. We’re human and it means we will have differences of opinion and ideology. If we can accept that our differences are not unique in time and space, we will understand that it is virtually impossible for us to ever have similar views on anything.

Monday, May 14, 2012

Independent Financial Advisor

For those who are looking at building a long-term career in financial services industry that has a bright future are urged to seriously look at what the new Independent Financial Advisor (IFA) platform can offer.

The opportunities to build a bright career in financial planning has arrived. The contract to use now is the FA representative contract with an independent financial adviser (IFA) company, instead of an agency contract with a life insurance or unit trust company.

The FA career is for those who can see where the industry is moving in the future, judging from what had happened in Singapore, Taiwan and Australia.In contrast, the agency contract has passed its time.

There are many attractive points when you understand the new distribution channel that Securities Commission (SC) and Bank Negara Malaysia (BNM) are promoting.

The Independent Financial Advisor (IFA) channel is backed by its own set of legal framework and the ecosystem, including the existence of well organised IFA companies and the support system of product providers, which are now in place.

I can list a few key points of difference between a career using the IFA channel versus one based on an agent contract.

Fa representative owns the clients
In IFA framework, the licenced financial advisor representative (FA Rep) owns his or her clients.If the FA Rep decides to move on to another IFA company, he or she brings along the clients.

The legal framework regards FA Rep as a professional, thus he or she has the duty to continue servicing the clients. Thus the FA Rep is allowed to bring his or her clients in case he or she moves on to a new IFA company.

This is in stark contrast to holding an agent contract. When the insurance or unit trust company terminates an agent contract, usually due to the agent’s failure to fulfill the sales quota, the agent gets nothing.

All the clients belong to the principal.

The fact that FA Rep owns his or her clients gives the FA Rep the opportunity to be able to retire from the business in the future, and he or she is allowed to sell the business to another FA Rep in the same FA platform. This is critically important be-cause there is no way an insurance or unit trust agent can sell his or her business for a value.

FA Rep can exert his or her independence
In IFA platform, FA Reps are not chained by the sales quota imposed by the life insurance or unit trust companies. Thus FA Rep can build and focus his or her energy on serving the needs of the clients with much more flexibilities.

He or she also has the freedom to select the best and most innovative products from among the companies in the IFA panel of product manufacturers that most suit the clients without undue pressure from product manufacturers.

Again this is in total contrast when compare to an agent holding an agency contract with a product manufacturer. Life insurance or unit trust companies impose new sales quotas on all its agents.
Thus the agents are at the mercy of the companies because in the agent contract, the company has the power to terminate the agents for failing to fulfill the sales quotas set by the management, which can change from time to time.

This result in the lack of job security and career future for the agency force, contrary to what is presented in their frequent career opportunity advertisements and seminars.

For those who still have doubts about what I have discussed, just reread the termination clause in your agent’s contract.

The problem with the industry now is that an agent is only allowed to represent one principal company for life insurance or unit trust company, and two principals for general insurance agents.

Some overzealous companies even try to tell their agents that they are not allowed to do other types of selling activities once they have signed the agent contract. With the relatively high turnover of life and unit trust agents experienced in the industry, consumers may not get the service and support they expect.

IFA beginning to enjoy good support from panel of product manufacturers
Contrary to what some people say in the market, IFA companies begin to receive good back-up support services from product manufacturers. Some of them see the IFA as another strategic distribution channel that has the potential to grow in the near future.

If the experience from my FA Reps are of any indication, then the future of IFA platform indeed looks bright. Now at least five out of the eight panel life insurance companies in the SFP platform have set up their separate FA department manned by a managerial rank personnel.

The departmental head is supported by staffs with executive level.The rest of them all have designated persons in their KL headquarters to service FA reps.

Some international life insurers already have experience supporting IFA channels in other advance markets like Taiwan and North America.

To my pleasant surprise, one particular insurer has even designed products that appeal to IFA channel, including offering preferred premium rates!

So far, the support from some life insurers has exceeded even my own expectations.
All these new developments in the financial services industry are positive and in the end, the most important thing is that the consumers benefit more from it.

Source - Borneo Press

AVIVA CIMB For Sales

Britain's second-largest insurer Aviva plc's sale of its Malaysian life-insurance business could offer a buying opportunity for its competitors looking for a slice of the industry pie here, according to analysts.

The penetration rate for overall life insurance here stands at about 40% as of 2010, translating into 2.8% of gross domestic product, which is low compared with Singapore (6.1%) and Japan (7.5%), he pointed out.

 
Aviva entered the Malaysian market five years ago by forming a joint-venture with the CIMB Group.
 It acquired a 49% equity interest in two of CIMB's subsidiaries, namely Commerce Life Assurance Bhd and Commerce Takaful Bhd, for a cash consideration of about RM500mil.

Reuters reported on Tuesday that Aviva planned to sell the 49% stake in the joint-venture, known as CIMB Aviva in line with its plan to exit non-core markets.

Reuters noted that CIMB Aviva's net profit fell marginally to RM31.8mil last year while net premiums it underwrote dropped about 30% to RM230mil.

Aviva has been in the news recently following its shareholders' complaints about the company's top executives' remuneration packages. This eventually led to the departure of its chief executive officer Andrew Moss earlier this week. Finding a replacement could take some months, according to foreign news reports.

Who is M Sarawvathy

Malaysians who are familiar with the social and political work of M Sarasvathy - 59-year-old co-founder and current Deputy President of Parti Sosialis Malaysia (PSM) - would not hesitate to call her Amma—if only she would consent to it. It’s not that the  doesn’t feel a kinship with the public. She just hates being associated with J Jayalalithaa (Tamil Nadu Chief Minister).

“The word ‘amma’ is nice to hear,” she said, “but the comparison with the Tamil Nadu Chief Minister is not correct. We are at opposite ends of the pole of political ideology. She is a capitalist, with people beneath her, whereas I am a socialist who is equal with all.”

Saraswathy—or Saras, as she is affectionately known among friends—started her social activism at the age of 17. Appalled by the oppression that factory workers were subject to, she organised them into unions to fight for their rights.

Forty-two years have passed, and she hasn’t once turned away from her vision of social and economic equality among Malaysians of all races. She has always been around to lend her hand and voice in the fight for the rights of the oppressed, the needy and the marginalised—factory workers, plantation workers, farmers, squatters, the landless.

There have been many challenges along the way, but her will has remained strong, which is why in PSM circles she is known as the Iron Lady.

She was instrumental in the founding of Alaigal, a Perak-based community organisation that emerged in the early 1990s to dedicate itself to fighting for the legal rights of workers. PSM was a natural progression from this. The party was formed in 1998, essentially by community organisations that felt the need for elected representatives of their own in Parliament and the state assemblies.

In 2011, the monthly Tamil magazine Semparuthi gave recognition to her community work by naming her the Best Female Social Activist. In December that year, for her four-decade fight for the rights of Perak’s disadvantaged communities, she became the first Malaysian to receive the prestigious Japanese Yayori Matsui human rights award.

But the achievements have not come without pain. In the run-up to the Bersih 2.0 rally of July 2011, she was detained in solitary confinement for 33 days under the Emergency Ordinance.
It is believed that she was the first woman to be held under the dreaded EO.
“The detention gave me even more courage to fight for equal democratic rights for all Malaysians,” she said.

The EO arrest was not her first. In 2008, Saras, along with several members of 41 NGOs, were arrested in Kuala Lumpur and charged in court over a demonstration against a rise in oil prices. The case is pending.

“PSM is totally against the privatisation of public essentials and necessities, which causes the cost of living to go up and imposes hardship on the public,” she said.

PSM member K Kunasekaran said: “She is a person who can make the impossible possible with her positive outlook.”

The party’s secretary-general, S Arutchelvan, agreed and added: “She has been a true fighter since her youth. She has sacrificed her personal life for her cause of getting justice for the underprivileged, ignoring her family’s wish that she would get married and settle down. She sees marriage as a threat to her personal freedom to fight for justice for all.”

Another PSM member told FMT yesterday: “Saras is Amma whether she likes it or not, and I’m going to call her that, at least on this Mother’s Day. She deserves the endearment as well as the respect and honour that go with it.”

Tuesday, May 8, 2012

8 Lessons From Money Ball

8 Things Every Entrepreneur Can Learn From The Movie 'Money Ball'

   8 Things Every Entrepreneur Can Learn From The Movie Money Ball   It’s an unlikely source for great business advice.
 
A story about Billy Beane, the general manager of a major league baseball team at the bottom of the ladder – the Oakland A’s. Crushed by the big budgets and big name players of teams like the New York Yankees and the Cleveland Indians, Beane is forced to take a risk and do something no team has done before – abandon traditional recruiting methods and employ computer-generated analysis to acquire and trade players. And in doing so, he changed the face and landscape of the game forever.

The following quotes from the movie were never really meant for you and your business and yet, they reveal some fantastic truths about life and success that will make you a better owner and leader.

1. You're not solving the problem. You're not even looking at the problem.
It is very easy for you to be distracted by all the issues and rhetoric swirling around the actual problem. The more you (or others) have personally invested in the status quo, the more you will be prevented from seeing the real problem for what it is.

Seek advice and perspective from people outside your industry — those inside will be emotionally attached to the way things have always been done and thus, they have become part of the problem.

Your number one objective is to determine what the actual issue is, and solve it. You don’t have time to get caught up in meetings talking about why it is a problem or re-engineering band-aid fixes that have not cured it in the past.

2. We've got to think differently.
Your business really isn’t that different from the Oakland A’s baseball team. If you’re a start up or a small-mid size business, you’re likely working under some tight (and possibly unfair) resource constraints.

If you want to grow and to challenge competitors that have much deeper pockets, you need to level the playing field or you need to change it completely. It is impossible to beat anyone if you insist on letting others dictate the terms.

You must start by thinking differently. What would need to change in order for you to have the advantage? What can you do differently right now to achieve your objective? How can you adapt or modify your approach to get what you want?

Playing the game on your competitor’s terms is no longer a viable option. It can only lead to frustration and failure.

3. He passes the eye candy test. He's got the looks - he's great at playing the part.
Success often depends on good scouting and recruiting. A common mistake that most of you will make is to recruit team members that you like (and have something in common with during the interview) or who look the part.

In order to ensure the survival of your business, need team members that can actually do the job that you need them to do. It doesn’t matter whether the candidate has 15 years of experience at a multi-national or comes highly recommended from so-and-so.

None of that amounts to a hill of beans if they cannot do the job. If you want to boost your success this year, get the right people on your bus.

If you need a good hitter (someone who can close business) don’t hire a semi-retired catcher who is charming in the interview.

4. Your goal shouldn't be to buy players, your goal should be to buy wins.
It is important to get the right people on your bus. However, in order to do that, you need to figure out exactly what needs to get done and hire people who can do it. Don’t get caught up in fancy titles, big salaries, stock options and what looks good to the outside world.
If you want to be successful you must be in the business of plugging gaping holes and buying outcomes.

If you need more customers and sales, hire someone that you know can and is incentivized to close business. It doesn’t matter what you call him, what matters is that he can produce the result that you need to survive and thrive in your business.

5. Why do you like him? Because he gets on base.
Step 1 – figure out what success looks like for the role you need to fill.
Step 2 – don’t hire anyone without a proven track record of achieving that outcome.
Step 3 – Get rid of (or trade) anyone who can’t fulfil their role or who is polluting the office environment.

6. Where on the field is the dollar I'm paying for soda?
It is good to be frugal and smart with your money but it never pays to be penny wise and a pound foolish. If you want to grow your business profitably, focus on the items that will have the biggest impact on your bottom line and cash flow first.

There’s no point focusing on shaving one or two thousand dollars off your fixed expenses if you’ve got $25,000 tied up in dead or slow moving inventory. To make good decisions and take action that boosts your bottom line, you need to measure and track your financial KPIs regularly.

7. I'm not paying you for the player you used to be, I'm paying you for the player you are right now.
While you might get away with recruiting based on potential, in the end, you can only reward based on results.

Time and time again I have seen business owners struggle with the decision to let salespeople, who are not meeting their targets, go.

The decision is really a very easy one. Someone has to go. It’s either them or you. You can’t win a baseball game without putting runs on the board and you can’t build a successful enterprise without hitting sales targets consistently.

8. It's day one of the first week. You can't judge just yet.
Patience is a virtue. Don't pass judgment judge too soon. If someone's not performing or the team is not quite gelling, take some time to investigate, ask questions and make adjustments. All changes to the team will have a natural breaking-in period.

Too much tolerance can become a vice. Good performers tend to contribute value very quickly – both in terms of their attitude and work ethic. The typical 3 month probation period is more than enough time to make a fair evaluation. When the writing is on the wall, have the confidence to cut your losses and move on.

Despite the Oakland A's disadvantaged revenue situation, Billy Beane took his team from bottom of the ladder to World Series contender in just a few months. By re-evaluating the strategies that produced wins on the field, they built a winning team with only one-third of the salary budget of the New York Yankees.
 
To do this, they had to do more than just play better a better game of ball. They had to transform the playing field completely.

Referrals Is The Best

All the best sales professionals KNOW that referrals are the best form of leads. It is not a hard or difficult process yet most sales people don’t ask.
Who Do You Know?        Earlier I wrote about the value of asking; “is there anything else?” Now I want to expand on that and focus on referral prospecting and a few simple steps to doing this correctly.
 
All the best sales professionals KNOW that referrals are the best form of leads. It is not a hard or difficult process yet most sales people don’t ask. For some there is a sense that the client has just made a commitment to buy from you and you should take the order and run out of their office ASAP!

But resist the temptation.

The conversion rates between referred leads and a successful sale is substantially higher than a cold prospect. Why is this? When you contact a referral for the first time you have ‘deferred trust’. What I mean is you and the prospect have no relationship as yet, but because your client and prospect do, the prospect is prepared to give you some ‘latitude’.

There is a simple process for asking for referrals:

Look after the client’s order BEFORE you make a request
You must have completed the sale. This can be a challenge, particularly if the client volunteers referrals unprompted. I suggest you make a note and tell your prospect that you would like to come back to that in a moment, followed by an open question, which will get your sales process back on track!
 
Create a ‘Bridge’ to the request
When the client has made a commitment and you are satisfied with your outcome, use a ‘bridging’ technique to move towards your request. A ‘bridge’ is just a phrase or statement that allows you to introduce a new question, topic or focus. Something like;
“…John, just one more thing…”
“…Peter, while you are at your desk….”
“…Jane, before I go….”
 
Ask for the referral and emphasize the benefits
“…John, thank you for your order, just one more thing, who do you know who has the same needs for (highlight the benefits as your client sees them) that I would also be able to help?
 
The key thing here is that you are asking; “who do you know?” rather than “DO you know?” Your chances are substantially higher with the first example because ‘Do you know’ is a closed question and it is too easy to answer with a NO.

Motivating Yor Sales Team

The good news is that lack of proper compensation is not the main reason why good sales people leave; it’s much more to do with lack of recognition and effective sales management.

The good news is that money is not the most important factor in retaining staff. That’s not to say that it is not a factor, and that good sales people don’t like getting a big pay packet, just that there are other factors out there.

Motivating and Keeping Your Best Sales Person  Who wants mercenaries?
As a Harvard University professor Michael Beer says, “Managers tend to use monetary compensation as a crutch. After all, it is far easier to design an incentive system that will do management’s work than it is to develop an agreement about goals and problems, and confront difficulties when they arise.”

Or as author Jim Clemmer says rather more harshly, “Bribing people to perform turns them into mercenaries. It debases, degrades and demeans work. It sets a vicious self-perpetuating cycle into motion – incentives inducements, rewards, and the like leave people feeling manipulated and overly focused on what they get for complying with management’s goals. The emptier work is, the more people look elsewhere for fulfillment.”

Futile counter-offers
Perhaps at no other time is the ineffectiveness of money shown better than when a valued staff member tenders their resignation. Many companies react to this with a counter-offer in the form of higher pay. But these counter offers are unlikely to keep people around for much longer. The annual Hays salary survey shows that 52 per cent of the employers polled offered more money to get someone to stay, but of those, 37 per cent still walked and another 32 per cent left within a year.

That doesn’t however mean that you shouldn’t design a workable incentive plan in conjunction with your sales people, which allow them to be rewarded with not just a fair wage but also in ways that go beyond their salary. This can include cash bonuses, extra holiday time, days off and an upgrade in their transport.

But sometimes it may be the case that a sales person feels advancement is only possible through moving onto another small business or area. You may have to be realistic and accept that sales people may outgrow your business.

Sales management secrets
The secrets of good sales management are a little more elusive, but one person who has researched the styles of sales management has come up with a perceptive way of looking at the different types.
Allan Mackintosh is a sales coach for a big company and has studied the behaviours of 25 sales managers when they made field visits to their sales representatives. He came up with four types of sales manager: the dictator, the disappearing manager, the demonstrators and the developers.

The dictator tended to tell their sales people to act in a certain way, and was not interested in any feedback, and was certainly not interested in developing the sales person’s abilities. Sales results tended to be average.

The disappearing managers were simply too busy and too obsessed with their own career to be interested in that of their underlings. Their absenteeism caused great resentment within their sales teams and results were below average.

The demonstrators were the opposite of the disappearing managers yet equally annoying as they would take over in sales calls, undermining the integrity of the sales person and often making the customer feel uncomfortable as well.

Let’s hear it for the developer
Not surprisingly, the most effective manager was the developer. Before they went out with the sales person they would jointly agree what would be achieved, take time to plan quality sales calls and work through any ideas or challenges the sales person may have. Although this coaching type of manager would offer support they would also be tough at times in giving feedback. Unlike the other sales manager styles though, the sales person would respect this because they knew the feedback was being given to help with their development and their ultimate success.

Support and develop
So, if you want to keep your best sales person, try not to be a dictator, a disappearer or demonstrator, but a developer. Not only will your business benefit from better sales in the short term, but you will also find your best sales people stay with you for longer.

The best sales manager is therefore one who becomes involved with his or her top sales people in every way possible. This includes making joint sales calls, attending sales meetings, helping to develop a marketing plan and jointly establishing budgets and goals.

It’s important to develop a close bond between you and your sales staff, and this means that you invest time in order to understand what it takes to produce worthwhile results.

Community ties
One great advantage that small independent owner/operators have in retaining their best sales people is that they love living in the community you serve. And you can reinforce this by promoting your business in the community.

ABC Effective Sales

 Too much to do, not enough time!! It’s a pretty common catchcry when you run a small business. It seems that everyone wants a piece of you, so you run around like a headless chook and end up achieving very little. This is particularly true when it comes to sales and marketing. Only last week a client asked me to drop in for a chat about how to grow her business in the current tough economic climate.
 
The ABC of Sales and Marketing Success     Sue felt she was spending so much time working in the business she didn’t have time to go out and market, even though she knew it was important. She showed me a client list of more than 300 names and said she knew that there were sales possibilities amongst them but she didn’t know where to start and couldn’t possibly find the time to see all of them. She had come to the conclusion that it was all too difficult and she would rather invest in advertising or a trade show which was less of a hassle.

If this sounds familiar then let me introduce you to the ABC approach to working with existing clients. This approach recognises that not all clients are equal and not all clients have the same potential for generating more revenue or referrals for your business. So before you market you take the time to analyse and rate your client base so you can spend the most time and energy on those who are most likely to generate revenue or referral.

The first step is to set up different categories of clients. The first category might be existing clients; they may be clients who are currently active or those who have used your services or bought products in the last few years. Another category may be “past clients”, those you haven’t seen or heard from in the last five or six years. Some businesses may also have what I call “Coma” clients, those that you haven’t dealt with in six years or more.

So pop that client list into a spreadsheet and sort them by category! Then go through each category and rate each client as A’s, B’s or C’s according to their potential for revenue, potential for referral and their desirability. The desirability rating is how much you want to work with this client again; for example there’s no point in reigniting a business relationship with a client who you don’t like or is a poor payer no matter how good the potential. This also applies to referral; keep in mind that troublesome clients sometimes refer clients that are just like them!!

A’s might be your top 30 clients who are already generating a significant portion of your revenue and have the potential to grow further or refer you to colleagues, other departments or people in their industry

B’s could be clients with potential to grow over a longer period of time. These might be smaller businesses that are in a growth phase, or larger clients where you only handle a small portion of their work. It could also be a small client with great industry connections.
 
C’s are usually clients with little on no potential for growth and would include businesses that only purchase occasionally or spend small amounts with your company.
Coma’s are those clients who have been dormant for years and you probably have no idea of whether they have potential for your business.

Once you have categorised and prioritised your client lists you can develop sales or marketing strategies for each group. Best of all you can then allocate time and budget to where it is most likely to be successful.

For instance you may decide to offer all your A clients a free review session or take each of them out to lunch to cement your business relationship. You might put together special offer for your B clients which your sales team will follow up. You may not target C’s at all or send them an email blast with an incentive to purchase. Here are a few typical strategies that might be used to target each group.
 
A’s
A face to face meeting
Invitation to a social event
Invitation to a boardroom lunch
Appoint a client service person to look after their account
A VIP Christmas part or end of financial year event
A VIP card
A needs analysis or diagnostic developed specifically for them
Hosting a networking group specifically for A Clients
 
B’s
Send a personalised cross promotion letter or email promoting a service they may not be using
Owner to contact 2 -3 times a year by phone
Invitation to a Christmas Party or annual social event
Regular newsletter
Hosting an information seminar or mini trade show
 
C’s
Take no action if they are not preferred clients
Send the same cross promotion letter as B’s but ask them to contact you rather than follow up
Send annual Christmas or greeting card
Send regular newsletter
If you have a large number of Coma’s you can develop a campaign to reactivate them. This may be a call from your office staff to check details followed by a special offer. Depending on the response they can be removed from the list or upgraded to one of the other categories.

Sales Made Easy

One of my all time favourite clients refused to believe that he could sell his product. He would always tell me “I am just an engineer, I know how to make it but I don’t know how to make people buy it.” That was his first mistake, thinking that he had to make people buy from him instead of approaching it from the perspective of helping people to buy...
Sales Success Made Easy
 
Let’s face it, the average consumer today is way too sophisticated and street savvy to buy something they don’t want or need just because we tell them to. We tend to buy from people we trust and those who show they understand our worries and concerns. We also respond to people who really know and love their product; and that’s great news for my client and every other small business owner who is a reluctant sales person.

One of the most important advantages small business has over big business when it comes to selling is the passion and enthusiasm of owners and staff. It’s infectious and absolutely irresistible when it comes to making the sale.

But before we even start to sell we need to think about what we are actually selling. It may not be what you think it is. For instance, when you buy a drill what is your hardware store selling you? A power tool, a piece of equipment or a handy device? None of these; in actual fact they are selling you a hole. If you buy a hand drill you are buying a slow hole, a power drill gives you a fast hole and a masonry drill gives you a hole in bricks or masonry. So think about what you are really selling. Here are a couple of examples to get you started.

An accountant selling tax services isn’t just selling their time or expertise they are selling the fact that you won’t get into trouble with the tax office if you do your tax return, or maybe they are selling the fact that you will get your tax refund in your bank account sooner. If you buy a children’s DVD they aren’t selling you a new release or DVD it could be an hour and half of peace and quiet or a learning experience.

Once you have worked out what you are selling you are on your way to sales success. The next step is to identify all the features associated with your product or service. I usually recommend that you brainstorm a list of all your features, the more the better. The trick is to be specific and features should be detailed rather than general. For instance, we visit you on site, our consultants all have ten years industry experience, this machine is portable or the appliance has a five star energy rating.

Make sure you think about all the features that make you better or different from your competitors. Don’t just write down “better customer service” as it is too broad. Divide customer service up into all its steps and write down what makes your customer service better. Do you offer your clients cups of tea in fine china? Do clients have three case managers to look after their file?

The good news is once you have a list of features you have lots of points you can include in advertising, press releases, web copy and sales brochures. The bad news is your clients or customers aren’t really interested in features; they want to know what the benefits are for them. These are also known as WIIFM’s (What’s in it for Me).

So, your next job is to turn those features into benefits. And you can do this with two little words. Go back to your list and beside every point write the words SO YOU. Now work your way through the list and turn each feature into one or several benefits; for instance:
 
“We visit you on site so you won’t have to waste time travelling or being away from your business”
“We visit you on site so we have a much better idea of your business so you will get better quality, tailored business advice”
“This nozzle is double chromed so you will have less equipment down time which will save you on production costs”
“This nozzle is double chromed and lasts 30% longer than other nozzles so you will save on production costs”.

The great news is that by using features and benefits together your sales and marketing material will look, sound and feel different to your competitors who may still using standard features based advertising.

The next time you have to write a sales proposal, advertisement or press release instead of hitting the panic button, get out your list and choose the best features and benefits for your target market. It will suddenly be much easier to demonstrate to clients just how you can help them and make their life easier.

This approach doesn’t just work for marketing collateral it is also perfect for face to face selling. Instead of leaving it up to the customer to “guess” what is in it for them you can confidently explain the benefits and how you are better or different from your competitors.

My favourite client took features and benefits to the next step and decided to hold product and pizza nights for his staff. Once a month they would all get together to “play” with new products and as a group identify the key features and benefits they could promote to customers. Suddenly they went from being just another retailer to “those people who really know their stuff”. While their competitors were reeling off features from the product packaging, his team were using plain English benefits based explanations to wow their customers.
 
Their conversion rates doubled and average spend increased by 19%. Not bad for a business owner who didn’t know how to sell!

9 C - Customer Retention

The fastest way to grow your business is to reduce the number of clients who leave you. Thus, looking after existing clients should become your top priority.

You would have to do more than just service your clients if you want to retain them for a long period of time – for which you would have to transform the business into a client driven organisation. There is a big difference between focusing on service and being client driven.

Follow these 8 Cs for Client Retention to avoid the 9 C – Cancellation:

1. Communication: Consistently communicate with clients-on a positive basis. This can accomplished be by telephone, a mail, email, a newsletter, or even just a simple face-to-face chat, handshake and a smile.

2. Convenience: Make clients comfortable when you provide service. Listen to their needs. Try not to disturb them. Schedule meeting/appointments via their preferred method (face to face, by phone or e-mail).

3. Choices: You may have a core services, but supplement that with services designed to meet each client specific needs. If birches do not bend in the wind, they break and die.

4. Consistency: No surprises. Deliver your service on time every time. Don’t alter how you deliver (whether it be changes in products, applications and/or frequency) without first conferring with the client.

5. Confidence: Exhibit an air of authoritative knowledge, and back it up with your professionalism and performance. Constant, proper training and development on the technical and communication sides are key.

6. Care: Genuinely care and the client will see and feel it. You are not just in the business of selling a product/service. You are also in the business of building good profitable relationships.

7. Control: The bottom line is to being able to manage and keep the complaints numbers low enough that the client is happy. This may mean zero tolerance policy for internal issues and a minimum tolerance policy for external factors impacting your business.

8. Commitment: Stay focused on doing the job right every step of the way, every time. Every day, renew your commitment to do whatever it takes to “make it happen.”

Proper devotion to the 8 Cs of Customer Retention will go a long way toward preventing the dreaded ninth C – Cancellation.

It has been said time and time again that it costs more to find new customers than to retain existing ones. And even though this maxim has become somewhat clich̩, the fact behind the statement holds true Рquality customer service leads to retention, and customer retention is the key to establishing any healthy business.

Working In Office Is Killing Us

Its official, the computer culture is killing us.

In a study released today by VicHealth, the average Australian office worker has been found to be clocking up 75% of their working hours sitting down, increasing the risk of serious health problems and even early death.

Prolonged sitting has been found to be a serious risk factor, even for those work horses meeting or exceeding national physical activity guidelines.

It has been linked to chronic diseases such as diabetes, cardiovascular disease and musculoskeletal disorders - health implications that are costing the Aussie health system over $11 billion a year.

Not only that, but stacking on the kilo’s by sitting in a chair has a whopping impact on businesses by way of lost time too.
“The total direct financial cost of overweight and obesity was estimated to be $8.3 billion in 2008, $3.6 billion of this was associated with lost work place productivity,” the report said.

The report found that about 44% of workers compensation claims are for musculoskeletal disorders that cost businesses on average $7400 a pop.

Associate Professor David Dunstan says Australia’s behind the curve in addressing the issue, partly due to the cost. “The problem in Australia...is that adjustable workstations vary from $600 for the base model up to $2000.”

Multiply that by the number of employees you’ve got and it’s going to be a fair whack for any business. But what alternatives are there?
One affordable initiative is to convert meeting rooms to stand up setups with the addition of a tall table.

Apart from getting staff on their feet, studies have found stand-up meetings to be shorter and more focussed with more alert participants. Win-win.

Another alternative in a similar vein is the walking meeting. These are great for one-on-one or small group conferences and provide the opportunity to get some fresh air and stretch the legs. Again, this can only be good news.

And of course there are the little things too. Walk over to talk to a colleague instead of emailing them, stand up to get a file instead of rolling your chair over and take the scenic route to the coffee shop or bathroom instead of the most direct.

It won’t kill you to stand up, touch your toes and stretch your back every hour, but it might kill you not to.

Motivating Your Employee

The biggest returns are generated by the most dynamic businesses. The most dynamic businesses are built by highly motivated staff. Highly motivated staff are driven by working towards something they want.

The key to this last bit is finding out just what exactly it is that employees want and enabling them to earn it.

According to former IKEA chief Anders Dahlvig, the answer is recognition. In his book, The IKEA Edge: Building Global Growth and Social Good at the World’s Most Iconic Home Store, Dahlvig writes that his decade in the top job at IKEA taught him that recognition is “the greatest motivator of all”.

Dahlvig says that if you want your employees to be energised and work their hardest, you have to recognise their work.

"I would even go so far as to say that recognition is the most important driver of mankind — so important to get, but so difficult to satisfy," writes Dahlvig.

"The need for recognition is endless. The more you get, the more you want."

It might come in the form of a congratulatory beer after work, a slap on the back in front of colleagues or a cash bonus.

For Dahlvig it means to be given responsibility and independence, and to be seen, heard and respected. Simple things to offer an employee that’s on track.

The tough bit is identifying what sort of recognition each employee values. A feeling for this comes through trying different things and getting to know those you work with. However, on the most basic level, a simple ‘well done on the Pelican Project’ goes a long way.

One company that has recognised the value of recognition is Wooboard, an online startup to come out of the dazzling incubator Pollenizer that’s providing an application for appreciation.

Wooboard is a forum for team members to recognise the work of one another by sending each other ‘Woos’, or short messages of appreciation.

The app boosts recognition, allows you to see what your team members are good at and what others appreciate them for, and simply thank those around you for a job well done.

As Mary Kay Ash, founder of Mary Kay cosmetics, says, “Everyone wants to be appreciated, so if you appreciate someone, don’t keep it to yourself.”

That’s exactly what Wooboard’s facilitating.

It’s an easy and interactive way to motivate your employees by harnessing what Dahlvig says is the greatest motivator of all, recognition.

Coming from a guy who ran a department store 522 million people went to last year, it’s worth recognising in your business too.

Monday, May 7, 2012

Profile Of A Bully

To enjoy a long and successful career, a skilled bully must disguise his true character. To accomplish this, his behaviors must conceal his bullying nature while unfairly exploiting others.

These subtle but powerful tactics are at the heart of his arsenal. They are dangerous because they tend to remain unrecognized. And even if you perceive the subtle pattern of bullying behavior, others probably won’t. You may conclude that the patients are running the mental hospital. Overwhelming evidence, based on a pattern of bullying revealed by these hidden traits, points to a bully engaged in treacherous behaviors.

Hidden bullying traits

There is rarely an easy solution when you’re dealing with a well-established, highly skilled bully, but the initial steps are always the same: study his behaviors and learn to understand him. Only by recognizing his hidden traits will you have any hope of effectively fighting back.

1. Charming

A skilled bully charms others to gain their trust. He exudes warmth and friendship as he smiles and tells jokes and stories, or flatters those around him. He makes you feel important by offering attention and approval.

His charismatic personality provides an excellent disguise, resulting in most people readily accepting the fiction of his good intentions rather than the reality of his self-serving nature. Because of the power of this disguise, charisma in a covert bully often leads to outstanding success, as can be observed with numerous public figures.

2. Obsessed with image

A skilled bully is obsessed with how things appear to others, even to the point of believing that outward image is more important than underlying reality. He knows that to prevent others from discovering the disturbing truth about his character, he must use words to create an image of integrity, teamwork and leadership.

His obsession causes him to overreact to actions or comments that he believes are a threat to his carefully crafted image. For example, he misinterprets a respectful and well-intentioned suggestion about his department as an accusation of managerial incompetence, causing him to erupt in anger.

3. Distorts truth and reality

A workplace bully never lets the truth stand in his way, but instead creates his own reality, with him as the hero and others as the villains. In this parallel universe, his distortions and deceptions lead to false conclusions, which in turn become recognized as common knowledge. He boldly repeats these fraudulent “facts,” acting astonished that anyone continues to deny their truth. But the only real truth is that he is intentionally misleading others.
Suppresses the truth
A bully misleads people by omitting significant information that would explain the situation and reveal the underlying reality. When you counter with a fact-based explanation, he misstates and belittles your viewpoint.
Presents hearsay as fact
Because facts aren’t on his side, he quotes hearsay as important and authoritative. He misquotes others, or misrepresents their meaning, then claims they support his ideas. Or he manipulates a co-worker into making a critical remark about his opponent, then quotes that remark as “evidence.”
Distorts facts and their meaning
A bully accurately describes the details of an event, but then distorts the interpretation. Perhaps he slips in an inaccurate detail, or innuendo about your motives, that changes everyone’s perception of the event. Or he depicts a conversation with you differently than it occurred, causing others to believe you are confused or self-serving.

A bully’s goal is to create a new reality that puts a positive spin on his behavior and intentions, while implying the worst about the behaviors and intentions of his opponents. This makes him appear reasonable and constructive, while his opponents appear unreasonable and destructive.

4. Evasive

A workplace bully can be very slippery when he needs to avoid the truth at all costs.
Avoids the truth about his behavior
An evasive bully never gives a straight answer about his bullying behavior. He denies his self-serving intentions and acts confused by complaints about his mistreatment of others.

When complaints about his behavior persist, he questions the motives of the complainer. If asked to explain the rationale for his behavior, he angrily refuses, perhaps becoming belligerent. Or he flatly denies the specific charges of bullying, rejecting any facts as fabricated by a vengeful, biased complainer (that is, the target of his bullying).

Alternatively, he justifies his bullying behavior as needed to achieve positive goals, or mischaracterizes his aggressive behavior traits as valid leadership qualities.
Never honest and constructive
An evasive bully is never straightforward, never tells you his hidden agenda and never reveals his innermost desires. He would never consider making an effort to fix a relationship by changing his behavior. If there is an obvious conflict with you, he prevents it from being surfaced and resolved openly, preferring to undermine you behind your back.
Attacks you when you confront him
When you tell a bully face-to-face that his behavior is inappropriate, he tends to minimize your complaints by saying the only problem is with your lack of understanding. In other words, you just don’t comprehend the situation. He may use a more condescending approach by accusing you of being overly sensitive, or by declaring: “You don’t get it, do you?”

Alternatively, he sidesteps your on-target criticism by acting hurt. For example, if you confront a rumor-mongering bully, he tries to make you feel guilty by saying: “I can’t tell you how much it upsets me that you would actually think I spread that nasty rumor about you.”
Shifts the focus to others
An evasive bully asserts that the problem is with others, not himself. By criticizing you, he avoids discussing his own behaviors. Or he accuses you of behaviors far worse than his, saying that you triggered his bad behavior because you created a situation in which he had no choice but to behave the way he did. He may even claim he is the one who is being victimized (another hidden behavior trait).

5. Plays the victim

A bully acts like a victim in order to manipulate others into submitting to his desires. This can be a very effective technique in a company that emphasizes trust, respect, teamwork and fair treatment of others. in effect, he is abusing the virtue of his fellow workers, much like a con man steals from good Samaritans.

When a bully is playing the victim, you may hear statements like these:
“You betrayed my trust in you.”
“You deserted me in my hour of need.”
“You hurt me when you did that.”
“You hurt my feelings when you said that.”
“Go ahead and enjoy yourself. I’ll be okay. I don’t mind.”
“I work really hard for the company. How can you be so selfish?”
“How could you do this to me?”
“I thought I could count on you.”
“I thought we had an understanding.”
“I thought we were friends.”
“You caused my pain, and now you’re making it worse.”
“Why are you ruining it for me?”
“Don’t you want to help me succeed instead of standing in my way?”
Here are a few ways a workplace bully plays a victim:
Exaggerates the impact of your actions on him
He claims your actions caused him significant pain and suffering, and that you don’t care what happens to him. His intention is to make you feel guilty. His hidden message: “Save me from my pain by doing what I want.”
Focuses on past and future victimization
He repeatedly mentions your past actions that hurt him, particularly when he wants to manipulate you into going along with his plans. He never seems to get over things; even long after the event occurred, he reminds you of the pain you caused him. And he makes it clear that if you don’t do what he wants, you will once again hurt him.
Uses his victimization to avoid changing his behavior
Rather than change his own behaviors, he continues in the role of victim until you accommodate his demands. If you complain about his manipulation, he acts saddened and shocked by your criticism, saying you now have to earn back his trust (which also implies earning back his friendship and support).

In the role of victim, he makes it clear that he is always the one sacrificing for the greater good, and that others have exploited his good intentions. He says he is tired of doing all the compromising. When you try to reason with him, he becomes angry and indignant, perhaps even announcing that he isn’t going to be so polite in the future. If anyone suggests his behavior is over the top, he becomes outwardly belligerent, claiming that no one appreciates the important things he does for the company, the sacrifices he makes and the pain he suffers. If more than one person points out the absurdity of his claims, he becomes furious as he declares that everyone is ganging up on him.

6. Self-righteous

In order to conceal his corrupt character and ruthless ambitions, a workplace bully claims the moral and ethical high ground. alternatively, a delusional bully may actually be convinced he possesses superior virtue, and that his noble objectives fully justify deceiving and mistreating others. Either way, his self-righteous manner is a constant force, often leading to bullying behaviors.
He is good, others are bad
A self-righteous bully implies he is a good person, but others are ill-intentioned and devious. He tells stories that demonstrate his own goodness and highlight the questionable motives of others.
Superior character
A self-righteous bully describes himself as exhibiting the best moral, ethical and intellectual qualities, implying that others don’t share his high standards. He uses distorted examples or makes off-hand remarks in order to suggest that others have shaky ethics or morals.
Superior motives
He characterizes his intentions as highly unselfish, while suggesting that others are seeking their own selfish ends. He suggests that unlike others in the company, he has the employees’ best interests in mind.

When speaking at a meeting, he appeals to nobler motives, which of course coincide with his own objectives. In order to show he is more devoted to the company than anyone else, he quotes the company’s vision and values.

He uses highly aggressive phrases to intimidate you with his superior motives, such as:
“Stop being so selfish.”
“Why are you being so selfish?”
“Why are you being so mean-spirited?”
“Why are you being so stubborn?”
“You’re only thinking about yourself.”
“You need to put the company first instead of always thinking about yourself.”
If he says “You know I would do the same for you,” it is probably an attempt to manipulate you through guilt rather than to offer a fair exchange of cooperation.
Superior commitment
A self-righteous bully tells stories that demonstrate his extreme commitment to the company. He describes his long hours and personal sacrifices, then suggests others lack commitment. He readily embraces the role of martyr for the company, never acknowledging that his bullying tactics created inefficiencies that necessitated his excessive hours.
Superior performance
He brags about his consistently superior performance. When he is forced to admit a mistake, he makes a big deal about it, both to highlight the fact that his mistakes are very rare and to demonstrate his supposed humility. If a self-righteous bully is sufficiently delusional, he may even take pride in his humble nature.

7. Pompous

A pompous bully pretends to be a strong leader, when in fact he is a smug, self-satisfied, self-important, pretentious, bombastic, ego-absorbed, ego-indulgent braggart. These elements of his personality are a major cause of his manipulative and overbearing approach to dealing with others.
Inflates himself
He constantly exaggerates his own importance. He attempts to look as powerful as possible by telling stories that highlight his cleverness and accomplishments. He acts like a know-it-all by claiming superior knowledge and experience on most topics. Of course, he never admits mistakes and never apologizes, unless to prove how rarely he makes a mistake.
Demeans others
He doesn’t treat you as an equal, but instead acts as if you are unimportant and powerless. He is condescending in words, tone of voice and mannerisms. He seems to enjoy feeling superior to you.
Prima donna
A successful bully may develop a conceited view of his role in a company, at times acting vain, moody and unpredictable. He can be very dramatic about things that affect him.

For example, he acts as if his department is the most important, demanding that the company treat his projects as a priority. He demands an important title or a better office, regardless of whether it is fair to others. When asked to contribute to a team effort, he refuses to follow the leadership of others, most likely because he considers them inferior in wisdom, judgment, intellect and experience. And far less important than him.
Meeting hog
A pompous bully often exploits meetings to pump up his ego. When he is speaking, a major objective is to demonstrate his superior intellect. Using high-sounding phrases, industry lingo or obscure technical references, he lectures others on the best way to accomplish things. He speaks extensively about his successes, even when others were primarily responsible. Grandstanding is second nature to him.

When he is talking, he demands the full attention of everyone in the room, perhaps using an overly dignified tone of voice to command respect. But when you are talking, he is intentionally rude in order to show your unimportance. For example, he fiddles with his cell phone, holds side conversations with the person next to him, or reviews documents and make notes about something unrelated to the meeting.

He may also attempt to control the meeting agenda, even to the point of wasting everyone’s time on items of exclusive interest to him. In his vanity, he believes his obviously superior ideas and opinions justify his domination of every meeting he attends.

8. Hypocritical

A skilled bully finds it expedient to openly claim beliefs, feelings and virtues that he doesn’t actually possess. Then regardless of his true attitudes, ethics, morality and intentions, he can influence others without arousing their suspicion.

A hypocrite despises those whom he deceives, but has no respect for himself. He would make a dupe of himself too, if he could  - William Hazlitt

Essentially, a hypocritical bully’s spoken philosophy doesn’t match his underlying beliefs. Due to this contradiction, his hypocrisy becomes readily apparent to those working closely with him.

However, the rest of the company is usually unaware of his duplicitous nature, instead accepting the positive image he cleverly manufacturers.

For example, he preaches mutual trust, but betrays your trust in him. He preaches teamwork at the same time he undermines you. He conceals his activities, but attacks you for not publicizing yours.

He glosses over his mistakes as insignificant and not worth discussing, but exaggerates your mistakes, bringing them up again and again. He is a loose cannon, but complains when you show independence and initiative.

If you work with a hypocritical bully long enough, you will discover that there are no limits to the ways in which he can reveal the contradiction between what he says and what he does.

9. Two-faced

There’s nothing quite like that moment when a charismatic bully first shows you his true colors. From that moment on, everything he says and does seems like a fraud. You begin to wonder how you ever believed his deceptions. But then, looking around, you realize that everyone else continues to be taken in by his act, as if they are hypnotized by the sound of his voice.
Welcome to the strange and dangerous world of a two-faced bully.
Deceitful behaviors
A two-faced bully outwardly pretends to support you while secretly undermining you. His warm personality or soft-spoken manner hides his destructive intentions, including a take-no-prisoners attitude should you oppose him. After lulling you into complacency, he verbally stabs you in the back, usually when you least expect it.
Public vs. private words
A two-faced bully is positive and supportive in public, but negative and overly critical in private. Others sing praises of his virtue, vision, good humor and leadership, while you are suffering from his frequent attempts to intimidate and belittle you.

Don’t be too surprised if you’re the only one who recognizes the two-faced character of a workplace bully. He has spent years perfecting his technique.

10. Rumor-monger

Let’s say you are standing your ground against a particularly nasty bully and he decides to bring out the big guns. Before you know it, you overhear co-workers belittling you in a private conversation. What happened?

There is a good chance you have been the target of rumor-mongering. Although a bully commonly undermines you behind your back to reduce your power, he spreads damaging rumors when he wants to weaken you permanently. These range from inaccurate criticisms of your character to malicious accusations of wrong-doing.
Attacks your character
By frequently repeating unwarranted negative comments about you, he tries to set perceptions before you can explain your actions. Over time, his persistent attacks can undermine your reputation and convince others that you are bad for the company.

To accomplish this, he unfairly criticizes you behind your back by giving an inaccurate account of a recent event. He attacks the quality of your work, without any factual basis, by giving noteworthy or humorous examples of your mistakes. He implies you have bad intentions by misquoting you, or tells stories that wrongly characterize you as lazy, incompetent, dishonest, destructive or misguided. He may even suggest you have personal or emotional problems.
Uses distortions and lies as he spreads rumors about you
A rumor-monger treats half-truths and hearsay as damning evidence. He distorts the meaning of comments made by others, thus converting innocent observations into harsh criticisms. He repeats statements from obviously biased sources, prefacing the rumor with praise of the source’s character. If necessary, he even makes up lies about you.
Spreads malicious rumors about you
At his most diabolical, a bully suggests you are immoral, depressed or even suicidal. He misrepresents or exaggerates actual events in a manner that implies the worst about your behavior. Through his distortions, he leads others to very harsh conclusions, effectively destroying your reputation.

It’s hard to believe someone would stoop so low, but like most of the bullying traits described on this website, I witnessed this first-hand: the bully distorted the meaning of recent events to support his conclusion that another executive was suicidal, helping justify the bully’s power grab.

11. Passive-aggressive

A workplace bully may be aggressive towards you by things he doesn’t do. By not doing something that would normally occur, he can insult you and weaken you, with a potentially serious impact on your ability to move forward with your career.
Uses the silent treatment
When a passive-aggressive bully can’t get his way, he sulks instead of confronting issues honestly and fairly. He closes his office door more often than usual, he doesn’t return phone calls and he avoids talking with you. At meetings, he is unusually quiet, but his disappointment is obvious from his silence. His intention is to make others feel guilty and to interfere with company operations, ultimately causing others to submit to his demands.
Excludes you from social interaction within the company
When he is unhappy with your behavior, he intentionally excludes you from social gatherings or recreational events that he has arranged, either after work or on weekends. During company functions or retreats, he excludes you from impromptu get-togethers or activities during free time.
Cuts you out of the loop
At his worst, a passive-aggressive bully keeps you in the dark about new strategies, projects and clients, perhaps by excluding you from office communication (email, meetings, informal conversations, lunches). He effectively exiles you from his department, possibly resulting in your
termination.

Through methods like these, passive-aggressive behavior represents one of the most diabolical forms of workplace bullying.

12. Pretends to care

A workplace bully can be particularly dangerous when he is pretending to care about you and others in the company. Most people are taken in by his displays of enthusiasm and affection, never considering that he is concealing a shrewd, self-serving nature. The bully exploits this naivete to his advantage.

Despite the caring exterior, his underlying goal is to control you. He attempts to manipulate you through “caring” statements like these:
“I’m doing this for your own good.”
“I only want what’s best for your career.”
“I don’t know why others think you’re incompetent; I like you.”
“You know I respect you, but you have lost the respect of others.”
“I know you’re smart, but when you did that, people looked at you as foolish.”
“I don’t care if everyone else thinks you’re incompetent; I believe in you.”
Here are a few ways a bully attacks you under the guise of pretending to care:
Undermining you in front of others
A bully claims to be your best friend in the company, but undermines you at meetings or in conversations with others. he tells others he wants you to succeed, but your “lack of maturity” is holding you back. He stereotypes your personality type or suggests you have emotional problems, and then acts very concerned for your well-being.

Through these tactics, he is trying to gently persuade everyone that he is a true, caring leader, while you are inconsistent and unstable. He may even report that during a performance review, you became angry and denied you have serious problems--yet another sign of your emotional instability.
Belittling you in a “friendly” manner
A favorite technique of a skilled bully is to belittle you while pretending it is camaraderie, thus concealing his destructive behaviors under an exterior of charm and friendliness. For example, he tells a story about your serious but somewhat humorous mistake (an exaggeration or misinterpretation), perhaps adding that he rescued the situation, then treats it as good-natured kidding.

If you confront him with his belittling comments, he tells you to “lighten up”, that he didn’t mean any harm. Many healthy relationships contain a large quantity of good-natured teasing, of course, but a bully intentionally crosses the line into damaging personal attacks. And he does all this while pretending to care about you.
Overly harsh criticism
A bully’s criticisms (euphemistically called “friendly advice”) are rarely constructive. Lacking empathy, he doesn’t recognize the challenges you face, particularly when his behavior impedes you from successfully performing your job. He never suggests real-world solutions to your daily problems. Also, he doesn’t balance his criticism with an acknowledgment of your skills, hard work and value to the company.

At times, he tries to overwhelm you with criticism, accumulating a long list and unloading on you all at once. And any compliments he gives you are insincere and are usually followed by inappropriate and unfair criticism.
Outright slander
at his most treacherous, a bully offers to give you helpful feedback, then makes a malicious statement about you. In effect, he treats nasty gossip as legitimate for the purpose of hurting you. Although he claims that his frankness is for your own good, his intention is to shock you into changing your behavior to meet his demands. He doesn’t care if he destroys your self-confidence in the process.

Sunday, May 6, 2012

Syarikat Takaful Malaysia Bhd

Syarikat Takaful Malaysia Bhd (Takaful Malaysia) has delivered a strong set of results in 2011 with profit after tax and zakat (PATZ) of RM76.4 million, representing a 98.4 per cent improvement compared with annualised 12 months period ended Dec 31, 2010. The significant improvement in profit was largely attributable to the improved investment and underwriting results along with strong business growth.

At the 27th Annual General Meeting (AGM) held yesterday, Takaful Malaysia’s shareholders approved the final dividend of 10 per cent single tier in respect of the financial year ended Dec 31, 2011 amounting to approximately RM16.3 million.

“For the past 12 months, Takaful Malaysia’s share price has increased tremendously from RM1.39 in March 2011 to RM3.96 on April 30, 2012,” added Datuk Mohamed Hassan Kamil, group managing director of Takaful Malaysia.

Takaful Malaysia has improved its market share of total takaful contribution to 20 per cent from 15 per cent in 2010. The total contribution consist of 60 per cent of family takaful and 40 per cent for general takaful.

Based on Insurance Services of Malaysia (ISM) 4Q2011 report, Takaful Malaysia is the only operator among the top three players, which recorded a growth of 43 per cent and increase in market share by five per cent.

With the impending implementation of the Risk Based Capital Framework, it is possible that the industry may witness a round of consolidation between smaller takaful players. If this development takes place in 2012, there will be bigger but fewer players to contend with. This may augur well for Takaful Malaysia to further grow its market share moving forward.

“Takaful Malaysia’s existing products portfolio are well positioned to tap the many opportunities going forward. Our growing image and acceptance for our products and services as well as improving customer service levels will hold us in good stead to compete effectively in the market place.

“We are looking into various strategic initiatives to grow our market share amongst others are marketing and branding, IT strategy and ‘customer centric’ value propositions,” expressed Hassan.

As for marketing and branding, Takaful Malaysia had recently launched the ‘We Should Talk’ campaign which marks an aggressive effort to engage and connect with its potential clients and investors.

The ‘We Should Talk’ campaign is targeted towards creating awareness of takaful or Islamic insurance and the value added benefits of takaful with the profit sharing concept compared to conventional insurance especially on the 15 per cent No Claim Rebate offering for all Takaful Malaysia’s general takaful products.

Takaful Malaysia is the first and only takaful operator in the country that offers this benefit, and had been consistently refunded 15 per cent of the premiums paid if no claims are incurred during the coverage period.

We will also look to enhance our distribution channels to boost sales. The ability to reach customers nationwide is crucial and we will continue to improve our capability and capacity in this area.” The Economic Transformation Programme (ETP) is also likely to have a potential positive impact to the insurance and takaful industry at the end of 2012.

The multiplier or cascading effect of this is income creation, sale and purchase of properties, hiring of employees, loans and other activities; most of which will require insurance coverage.

The government has also expressed its intention of increasing the Gross Domestic Product (GDP) for life insurance from the existing 2.8 per cent to 4 per cent (75 per cent of population) by 2020 via the various ETP based initiatives.

We Can Learn From US Experience

“Now the public become more educated. Due to books, maga­zines, newspapers, radio and television, consumers eventually learn to shop for life insurance. They learn something about dif­ferent types of policies.”

The above statement was taken from Norman Levine’s book, ‘From Life insurance to Diversification’ and the author was describing the US insurance market in the mid 1970’s. The only mass media not men­tioned above by the author was the internet. In a way, the market in Malaysia is 35 years behind the US market. And as the world wide web is democratising the flow of information and empowering the consumers further, we are going to see the pace of change picking up in Malaysia.

Similarities of US market in 1970s and present Malaysian market:
The author also remarked that the life insurance agents in US at that time quickly learned they had to provide their clients with good products at fair prices or, at the very least, they would lose sales: at the worst, they would lose established trust and continued relationships with existing cli­ents. Difficult ethical and moral decisions

This created very difficult ethical and moral decisions for the good agents. They felt a commit­ment and loyalty to the companies that had recruited them, trained them and provided them with the necessary facilities to function.

On the other hand, they felt their first and primary responsibility was to their clients. The agent’s conflict became intense because it was sometimes not in their clients’ best interest to recommend prod­ucts available from their primary life insurance company.

During these transitional years many agents were forced to choose between the clients and the com­pany in many sales situations. The bottom line result was that more and more business were being placed with companies other than the agents’ primary company. Other agents, to stay competitive, left their primary companies and became independ­ents or develop affiliations with companies that were more competi­tive in the market place.

These were tough times and they were aggravated because the companies that were recruiting, training, and providing signifi­cant agent services were the larg­est and slowest to change.

Many companies made deci­sions, some revocable and some irrevocable, in trying to react to this new economic world. For the life insurance industry cost control became important as, or more than, marketing. Expenses were cut in all areas. Many field marketing organisations were merged and some were closed.

Many presumed the traditional agency system was going to die because of its apparently high distribution cost. Some compa­nies abandoned that system for alternate marketing schemes. Nearly all companies began to experiment with other marketing system even if they maintained their agency network. They were all afraid of being left behind. Agent loyalty, which had already being challenged, deteriorated even further. Some agents asked why they shouldn’t seek alternate companies if their current companies were considering abandoning them as their princi­pal method of distribution.

Adapt or die
In the chapter, ‘Adapt or die’, Levine mentioned that there was a market research project con­ducted by Standard Research In­stitute (SRI) that learned that the typical consumer was confused by a great diversity of problems and solutions. That confusion was compounded when they were approached by people from the different financial persuasions making what were often contra­dictory recommendations.

For example, if a stock broker, or a banker, or an insurance agent, or an attorney or accountant, or a financial adviser analysed their client’s financial position each advisor, from their own unique frame of reference, might well sug­gest a totally different approach to the client’s problem.

Consumer preference for total coordinated solutions
SRI further suggested that a major­ity of consumers would prefer one individual who would be their ‘ac­count exec’ generalist. They would like for that caring individual to overview their entire financial requirements and make a com­prehensive recommendation for a total, coordinated solution.

They further recommended that, despite our current interest in high technology and complex approaches to solutions and prob­lems, the consumer really enjoyed an individual who approach them with high touch rather than high tech. They wanted somebody who cared enough to get to know them very well on a personal level and then respond to their needs and wants, not just from a salesman’s perspective.

Conclusion
In conclusion, the previous experi­ences from the US market could be a good reference point and valuable lessons for life insurance agents in Malaysia today to make their successful transformation from product-focused to client focused financial advisors.

by Lee Khee Chuan. Posted on April 15, 2012, Sunday