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CEO's Notebook

Various executives share tips and advice with other managers on topics such as morale and family issues.

By Inc. staff | 
 

Philanthropy is good for the community. But does it help me?
There are many rewards for community service, says Brian Sullivan, CEO of Sullivan & Co., a New York City executive-search firm specializing in the financial-services industry. "It can motivate and reward my key people because they can use their skills and the company's resources for projects important to them," he says. "And it can enhance ties with valuable customers because we sometimes help nonprofit organizations that matter to their top executives as well." One example: Sullivan & Co. volunteered to find a director for a nonprofit group that places top minority students in Wall Street internships. "That was a clear case where we could support an organization that we and our clients really believed in," Sullivan recalls. Worried that these types of activities could distract your company from its growth track? Last year Sullivan & Co., which has 40 employees, posted the highest annual growth rate (92.3%) among the 25 largest U.S. executive-search firms. --Jill Andresky Fraser

Benchmark
How often do you monitor key financial indicators?
A recent membership survey by TEC, a San Diego­based international organization of CEOs, investigated the financial-reporting patterns of 230 fast-growing companies. The findings? Many of the companies surveyed are remarkably diligent about following cash-flow numbers. More than 70% take the time to track cash flow on either a daily or a weekly basis. Unfortunately, some companies seem to shine a little less brightly when it comes to profit-and-loss statements. --J.A.F.

How often do you track cash flow?
Daily 47%
Weekly 26%
Biweekly 3%
Monthly 23%
No answer 2%
How often do you do a
profit-and-loss statement?
Daily 4%
Weekly 6%
Biweekly 1%
Monthly 85%
Quarterly 3%
No answer 1%

Source: TEC, San Diego.
Numbers do not add up to 100% because of rounding.

We want brainstorming sessions with pizzazz...
To liven up idea-generating meetings, DEI Inc., a Cincinnati-area architectural and construction company, runs special events during the sessions. At one recent meeting, vice-president Cynthia Grow held a wine tasting. She says the event drew employees to the sessions, which were nonmandatory. It also helped them relax before getting down to the business of generating new ideas for the $28-million company. Grow also asks attendees to prepare for the sessions in creative ways: before attending the wine tasting, employees had to read a trade magazine from another industry and extrapolate ideas for a current DEI project. -- Stephanie Gruner

How do I improve our customer service?
Consider these tips from John Reindl, vice-president of operations at WinterSilks Inc., a $35-million silk-apparel catalog company in Middleton, Wis.:

  • Give everyone customer contact. To keep the entire 275-person staff close to the customer, WinterSilks requires all salaried personnel, including the senior management, to take a minimum of 50 phone orders annually.
  • "Mystery-shop" the competition. WinterSilks employees continually shop competitors' catalogs anonymously. One customer-service representative places the call while several others monitor it. After the call, the group evaluates the competitor's representative on product knowledge, available information, and attitude. When the merchandise arrives, WinterSilks' merchandising department evaluates the actual item, while the shipping staff studies package presentation. Next, WinterSilks employees send the merchandise back, examining the returns system and the processing time. Reindl says the company has made numerous changes based on the results, from personalizing the WinterSilks "thank-you" card to improving gift-certificate presentation.
  • Track customer feedback. WinterSilks distributes a monthly top-10 list of customer comments--both good and bad--to all staff members. The list helps employees recognize simple ways to increase customer satisfaction. --Christopher Caggiano

How can I avoid bad credit risks?
Sometimes friends can help. When Sergio Lub, CEO of $2-million Sergio Lub Handcrafted Jewelry Inc., in Walnut Creek, Calif., wants to know if a potential retail-store account is a good credit risk, he doesn't consult a financial-rating service. Instead Lub reaches for a list of some 3,000 craft stores that he and 14 other like-minded craft-company owners have compiled. The coded list tells him whether a particular store has done well by others in his group, a loosely organized marketing consortium geographically dispersed from Utah to Canada. Chances are, Lub will find what he needs in the list, including whether an account is COD only or slow-paying. "Worse than having no one represent you is having the wrong store represent you," Lub explains. "Our system isn't perfect, but it works." --Susan Greco

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