Stefan Dietrich PhD, my IT guru and co-author, has an excellent post on Forbes titled “Why You Cannot Rely on Vendors for Your IT Strategy”. The text of the article suggests a focus on large enterprises with a corporate Chief Technology Officer, but the insights apply to small businesses as well. I appreciated two point in particular; first, he writes that choosing the wrong information technology strategy can be extremely costly. Indeed it can and one of the advantages of being a smaller enterprise is that we need not be confined by outdated legacy systems. But if we are passive in our approach and allow our vendors to dictate our IT strategies to us, then we have surrendered a key source of competitive advantage: the nimble and responsive nature of small businesses. And smaller businesses have to husband limited resources more carefully; we cannot afford the long-term costs of bad IT strategy decisions. The costs of bad decisions exceed the costs of inappropriate hardware and software purchases; the costs represent the lost opportunity and limited alternatives that are the result of being locked into decisions that benefited the vendor, not your business. The second point in the piece that really resonated me was the needless complexity that result from vendor-dictated solutions. Their interest is promoting their offerings, not your productivity.

I recently held a conference call for my classmates from the Owner President Management Program (“OPM”) of the Harvard Business School featuring Stefan as our speaker. OPM is an executive education program HBS offers for founders of fast-growth entrepreneurial companies. The call was organized in response to a query from one of our classmates concerning choices in IT and telecommunications systems. Her message resonated with the class, as many of us has a “me-too” story of frustration with the lack of transparency in comparing IT solutions. Stefan was as candid on the call as he was in his Forbes article. We finished the call with a consensus view that we needed to take an active role in charting IT strategies for our business. Many of us had taken passive roles in deferring to the “experts” only to be disappointed with the outcome. Do read the article and pass it on to others. You will find it helpful in framing your thinking about IT strategy.

The rain is not to blame

File this under the heading “So that is how it works”.  Imagine your flight arrives on time, but you cannot collect your baggage. Frustrated passengers pace back and forth and then you find a helpful airline employee who fills you in on what is going on.  The passengers had been led to believe that the light drizzle of rain (check out the photograph) was responsible for the delay. Actually, the baggage handlers will collect overtime if they can unload your bags just a little bit later. So while you are eager to take your luggage, leave the airport and get on with your life, you are being held hostage to the fine print in their union contract.  But other travelers do get their baggage right away – the elite tiers of the frequent flyers. So we asked and learned – the baggage of the elite tiers of the frequent flyer (platinum, gold, whatever they are called) are unloaded by a private sector company with which the airline has a contract. They are not union workers and they have no incentive to delay unloading the bags. So that is another unadvertised benefit of accruing your miles on a single airline to qualify for the elite tier status.

I will likely be blogging more about business travel issues as they relate to disruptions (minor disasters) and remote productivity. I have just been appointed to the Globility Board, the board of advisers for Global Traveler magazine. I am quoted in the article announcing the new board, saying “As an entrepreneur, I recognize the importance of face-to-face meetings to build relationships, but I am also attentive to the costs associated with business travel; I seek to maximize value for dollar spent. I am willing to pay for the amenities that enhance my travel experience and remote productivity, but I want to see value for the spend. That is a different approach from across-the-board cost-cutting that is often in place in larger corporations.” Please let me know of your travel experiences and feedback that you would like to share with the airlines, hotels and other travel vendors. Small businesses are important customers and we need to be heard.

Spring Lilies of the Valley

In addition to the usual housekeeping tasks associated with spring cleaning, I am completing a digital cleaning project for my business. It doesn’t provide the same sense of satisfaction as routine housework in that I don’t have the gratification of seeing clutter or dust removed. But when I sit down to work at my computer, I feel a sense of calm that comes from order. I recommend this process for all small business owners. It facilitates your business continuity planning, since you will only be backing up and tracking the files and applications that you actually need and regularly use. I began my removing software applications that I no longer use, thereby ending the obligation for their licensing fees. I made certain that all of my current software applications are up to date. I organized my digital media files, including audio, video and graphics, with a tagging system for more efficient retrieval. In case of duplicates, I retained the highest quality file. I made certain that all of my directory and contact information is up to date, streamlined my databases and confirmed my file taxonomy so anyone can find a file without reading my mind. I also deleted all of the junk files. It is great to sit down to the computer in apple-pie order. Next, I am organizing my home and personal files in the same manner. I am also doing the more conventional cleaning and de-cluttering tasks. I have sold or donated over 1,200 books, some of which I have had since high school. One month later, I cannot remember which ones are gone, that is how infrequently I consulted them. I read that one reason for the popularity of e-readers in Japan is that they enable large libraries in small homes. I already feel lighter. This photograph, by the way, is of lilies of the valley that are now ubiquitous in my neighborhood. The lilies and the clean home and office are a sign that spring has arrived.

First Beach Visit for Coco and Henry

I recently adopted a second cocker spaniel, this one from a local rescue shelter. An animal control officer picked him up and as he lacked identification, he was listed for adoption as “Franklin”, for having been found in February. I named him Henry, a name he now responds to as his own. Unlike Coco, my first puppy, Henry has a history with another family that we will never know. What we do know is that he was found on the streets without a collar, a tag or a microchip and no one came to the shelter to claim him during the mandatory hold period, when his photograph was posted on Petfinder.  When the hold period expired, he became available for adoption. I had brought Coco to the shelter to meet him to see if they would be compatible as sibling playmates. There was little interaction between them during this visit; Henry was very anxious. His nervousness was evident in profuse sweating through his footpads, which left prints on the floor. It is difficult to assess a dog in the stressful environment of a rescue shelter.

So I was quite surprised when I brought him home. It was quite an adjustment for all of us, as Henry shifted from hiding to interacting with us, and finally, feeling comfortable and totally at home. It took about a month for him to be integrated into the family as I worked with a trainer to deal with some of Henry’s more difficult behaviors, like chronic barking. I remember commenting to our trainer that owners do their dogs a terrible disservice by not socializing them and investing in their obedience training. A visit to Petfinder.com reveals stories of dogs that are homeless because of human problems: foreclosures, evictions, relocations, divorces, deaths, loss of independence of elderly dog owners, etc. Dogs that are not socialized or trained are difficult to place in permanent homes. I read that nearly one-third of dogs are returned to shelters within two months of their adoption. In most cases, the dogs are returned because of behavioral problems; the cuteness wears off very quickly once the dog is home.

The first month I had Coco we participated together in Puppy Kindergarten. Class met one evening each week as a trainer led five puppies and their owners through basic obedience training (loose leash walking, the name game, coming when called, sit, stay, etc.). It gave me more confidence as a dog owner. It also provided some assurance that should I ever, through death or disability, be unable to care for Coco and now Henry, the relative in whose care I have arranged to entrust them would not be overwhelmed and surrender them to a shelter. It is my responsibility to make sure that they have a loving “forever” home and training-socialization is part of that commitment. I also realize that should we ever have to evacuate due to a disaster, it would be a secondary disaster to have to get into a battle of wills with a dog who doesn’t come when called, walk on the leash or whose behaviors compound what will certainly be an already stressful situation. Better to deal with the behaviors when the environment is calm.

I am so glad I brought Henry home. All he wants is to love and be loved and be part of a family. It is amazing to me that this little creature, who was sweating and pacing when we first met in the shelter, is now climbing into my lap and gently taking treats from my hand. He acts as a very protective older brother to Coco and intervenes when he thinks her play with other dogs is getting too rambunctious. By the way, this photograph shows our first visit to the beach. Coco and Henry are checking out the seaweed, digging in the sand and walking along the beach (it is still too cold for swimming). Then we had a little clambake and they enjoyed bowls of cool water and doggy cuisine while the adults had clams.

Coco

I have been busy working on our new venture, but I promise to be more diligent about blogging. This is Coco, a beautiful cocker spaniel puppy whom I adopted. I keep a little pet bed next to my desk, where she naps or plays while I work. I typically work for three hours or so and then we take a play break, either a long leash walk along the waterfront or a game of fetch at our doggy park, which is just a ten minute walk away. Then we repeat that routine two or three times (work three hours, play for one-half hour) and that is my day! It is great for productivity, as I structure my time in blocks to get things done and know I can look forward to our break together. Coco has also taught me a few things about disaster preparedness. In Prepare for the Worst, Plan for the Best: Disaster Preparedness and Recovery for Small Businesses, I wrote about disaster planning for household pets. After all, it is hard to focus on your business when you are worried about the safety of your pets. Since I have become a pet owner after writing the book, I am learning from the experience, particularly since our area was directly affected by Tropical Storm Irene just days after I had adopted Coco!

Areas in our community were subject to mandatory evacuation orders and while ours was not, I was prepared with a pet emergency travel kit. I included in it copies of Coco’s medical records, particularly her rabies vaccine, as I had to produce it to bring her into one public building. I also included a photograph of her, in the event, heaven forbid, we were separated, a photo would help for identification purposes. Here are several lessons I learned from the Tropical Irene experience that I will certainly include in the next edition of the book when we update it:

• Ask your veterinarian to test for Giardia, a small parasite that can live in the intestine of your dog. You bring a current stool sample from your dog to the vet for testing and will generally have the results the same day. I paid $20 for the test. Diarrhea is often a sign of Giardia, but infected dogs may be without symptoms. My vet didn’t include a Giardia test in our regular wellness visit, so I had to ask for it. Many kennels require proof that the dog is free of Giardia, so if you ever have to board your dog in an emergency, it is good to have the results of a recent Giardia test.
• If you have a carrier for transporting your pet, practice using it before you will need it. I purchased a large comfortable pet carrier for Coco and when the time came for us to go on a trip, I learned that she hated the carrier and refused to remain inside. I should have kept it on the living room floor for a period of time to let her climb in and out of it and get comfortable with it. Now I know.
• I have a pet “Go Kit” packed with food, dishes, bottled water, etc., but now I am more careful about keeping the food stocked. Coco eats a brand of dog food that is not widely available. I went to the brand’s website and found that it can be purchased only at specialty retailers and veterinarian offices. I had assumed that I would just bring a quantity of food sufficient to get us to our shelter destination and replenish our supply from there. Now I am keeping a larger supply of food on hand.
• Animals have instincts about weather changes and may act out during a severe storm, such as showing signs of fear when they hear thunder, for example. I am lucky that Coco is pretty resilient. She stayed up the whole night, sitting at the edge of my bed watching the heavy rain as if she were completely fascinated by it. Not all of my neighbors were so lucky. So be prepared that your pet may go through a rough patch during the storm.

As I have written before, building resilience is an ongoing process of learning from experience and improving practices. Being sheltered in my home with Coco during Tropical Storm Irene was a learning experience for me and I will be even better prepared the next time.

I am delighted to report that Prisere LLC is one of three finalists for the FedEx Small Business of the Week. The public will choose the winner by online voting. You don’t have to disclose any personal information to vote, just one mouse-click will do it. Please vote for us and encourage your friends and family to vote for us. Here is the site where you can vote until 8:00 a.m. Tuesday, December 13:

http://www.nflsbotw.com/vote.html

After the flood

Check out the New York Times‘ weekly small business case study which presents the story of Pulling Down the Moon, a Chicago business affected by disaster. Three experts were asked to advise the business owners with respect to their future leasing plans. Our comments were heavily edited for space considerations. Here is the complete comment I submitted:

“The co-founders and owners of Pulling Down the Moon are to be commended for doing so many things right: developing an operations manual to provide for systematic processes to scale the business, storing critical data offsite and securing business interruption insurance to replace their lost revenues. Sadly, few business owners take these essential steps, resulting in losses that could be avoided.

But now the business faces a dilemma: should they stay or should they find new space? The answer to that question is to be found in the mission of the business, providing stress-reducing yoga to aid fertility. Disruptions are stressful.  We are all on autopilot to a certain extent, relying on repetitive familiar routines to get through the day. Even trivial changes, such as a new commute on an unfamiliar route, cause stress. Should Pulling Down the Moon impose upon its clients the stress associated with its current sub-leasing arrangements? Better to find space that is less vulnerable to water damage to ensure future continuity for the business and its clients, who need a consistent, soothing space in their lives.

But the founders of Pulling Down the Moon should be under no illusions that they will move from the back seat to the driver’s seat by moving from a sub-lease to a primary lease.  A commercial tenant’s disaster response is always dependent on the efforts of its landlord. That is why businesses should consult with their landlords to determine in advance what facilities and services will be in place after a disruption and establish roles and responsibilities for such cases. This avoids disputes that can arise later. Pulling Down the Moon is fortunate that it avoided what could have been a costly misunderstanding by having a relatively cooperative landlord. As it enters into lease negotiations with a new landlord, it should document explicit arrangements for procedures in the event of a disruption so both landlord and tenant can each benefit from greater predictability.”

Donna Childs is the founder of Prisere LLC and the author of Prepare for the Worst, Plan for the Best: Disaster Preparedness and Recovery for Small Businesses (Wiley, second edition paperback, 2009).”

Thanks to the New York Times and to author John Grossman for a great case study that we hope will raise awareness about the importance of preparedness.

A friend took this photograph at a Yankees baseball game showing the batter hitting the ball with such force that he broke the bat. It is a great photograph, the detail is perfect. And I thought it a great image for this blog posting describing what a friend and fellow small business owner had to do to get a large corporation to pay her (hint: it is one of the Wall Street banks that accepted government bailout money) an invoice that was more than two years past due. FINRA, the Financial Industry Regulatory Authority, oversees this particular company and, in the course of a routine audit, found that it had failed to properly disclose this past due debt on its books. After FINRA auditors surfaced this matter, the company paid my friend’s business the money that was well overdue. And FINRA imposed a fine on the company of five times the debt owed my friend. She told me that she has over $50,000 in receivables due her from large Wall Street firms for work that she has performed that she has been struggling for over two years to collect. Now she is informing all of them of the action FINRA took against this one company in the hope of motivating the others to pay. “I know I am destroying my relationships with these companies,” she told me, “but I need the money.” Actually, if she has to fight with them for over two years to get paid, these relationships are not worth preserving. Well done, FINRA.

Hurricane Irene caused the worst flooding to strike Vermont in 83 years, leaving the state under 15 inches of rain in a single weekend. National Weather Service hydrologist Greg Hanson described it as “one of the top weather-related disasters in Vermont’s history.” A little over two months later, residents and businesses are struggling to recover. USA Today reports that Vermont residents are learning that while FEMA, the U.S. Federal Emergency Management Agency, provides assistance to individuals, the only alternative for small businesses is to apply for federal disaster loans. And, predictably, most businesses didn’t have flood insurance for not being located in a flood plain and for the fact that the insurance premiums are very expensive. Predictably, Vermont’s representatives, notably Senator Sanders, are protesting that disaster relief is caught up in Washington politics. Senator Sanders also protested the slow pace of approval of SBA disaster loans, particularly in comparison with local assistance from the Vermont Economic Development Authority. Vermont’s economy is dependent of its small business sector and local businesses are doing what they can to help one another. Independent Vermont Clothing, an online retailer, raised $26,005 for the disaster relief fund of Vermont’s Red Cross by selling T-Shirts with a “Support Vermont” theme. I already bought mine, shown here on a dress form, because there is no one around today to snap a photo of me wearing it! Whether it is donating to the relief efforts, volunteering to help or patronizing Vermont businesses, either in person or online, we should all show our support.

Not everyone is persuaded that our current crazy weather patterns are the result of climate change. But consider the experience of Oklahoma, a state in the heart of “Tornado Alley”. This has been an active year for tornadoes, with 104 having struck the state since January 1 to date, well above the 62 tornadoes that have struck the state annually, on average, over the past twenty years.  But in 2011, extreme environmental conditions have resulted in the full spectrum of natural disasters striking Oklahoma:

• Earthquake. On Saturday night, a 5.9 magnitude earthquake, the most severe in the state’s history, struck Oklahoma. Its effects were felt from Dallas to Des Moines.
• Heat Wave. Oklahoma experienced unprecedented heat this past summer, with daily average temperatures during the month of July.
• Drought. More than 99% of Oklahoma is experiencing severe drought, with extreme conditions in 85% of the state. This year to date is the second worst on record for drought; 1921 being the most severe. The drought has also affected Texas, Louisiana and other southwestern states, counting as one of the 2011 record-setting weather disasters.
• Snow/Record Cold. From extreme heat one month to extreme cold the next, Oklahoma also recorded its coldest temperature on record this year, February 10, at -31 degrees. On that same day, Oklahoma experienced the heaviest 24-hour snowfall on record, with 27 inches of precipitation.

In addition, 2011 witnessed new records for wind speed in Oklahoma, 151 mph gusts during a tornado on May 24, and on the previous day, the largest hailstone crashing down. Given the increasing frequency and severity with which natural disasters strike, we have to be prepared for anything. Call it the “New Normal”.