Sheila Marcelo's Blog

Tips for Success from Paige Arnof-Fenn

Paige Arnof-Fenn is a friend of mine. We're always running into each other at different conferences or on speaker panels. I invited her to stop by the Care.com office to give us some tips on thriving in the workplace. She's always impressed me as a speaker and she definitely didn't disappoint, drawing from her own (very successful) career to share hints that anyone can apply to their own lives.

Paige is the founder and CEO of the global marketing strategy firm Mavens & Moguls. Before starting her own company, she was a VP at Zipcar where she supervised all sales and marketing. Prior to that, Paige served as a VP of marketing for Inc.com and for Launch Media, as well. Paige also worked for Coca-Cola and the Department of Treasury. She currently serves on a number of boards and advisory committees for a wide variety of companies and organizations. She's led a dynamic career and is a terrific marketer.

Here are the highlights of Paige's presentation:

Always be in a situation where you can learn from the best.

Your work environment matters. When you work with a broad base of smart people, you never know where you'll end up. Later in life, you might find yourself getting pulled along with them on the way to bigger and better things.

School never ends (if you're lucky).

Try to always be in "continual education mode." In these difficult times, it's good to remember that the toughest periods in your career are also the times where you learn the most. Untangling a problem is the best way to learn why something works and why it doesn't. That can be a great experience.

Work for a company with great values.

When you do, you'll never have to check part of yourself at the door. You'll always be able to believe in what you're doing.

There's no such thing as failure.

If something you try does fail, learn what you can from it. If you gather something from the experience, then it wasn't a failure. Don't let fear of failure get in your way, either. Those wonderful "A-ha!" moments only come when you've been challenged. Push, grow, learn!

Find a mentor.

Find a mentor in your work and extra-curricular lives. These people should be respected individuals that you can go to for advice and counsel. Take your time to establish these kind of relationships—go out to lunch with your superiors and people in other departments, especially those who are different from you. Don't just stick to who and what you know. When you find a mentor, be a sponge and soak up all the information you can.

This person doesn't have to be a mentor for life. We all go through different stages. You may reach the point where the relationship turns into a friendship. When that happens, view the situation as a door opening to a new mentor.

(In a recent post, Phil Terry, CEO of Creative Good, also talked extensively about the importance of mentors.)

Don't forget your other parts of life.

Your job isn't everything. The more you give, the more you get. Look outside your business life and get involved with networking, non-profits, interests, and hobbies. Find other like-minded people who challenge, influence, and educate you.

Make friends before you need them.

Be nice! It's not about your pedigree or title, it's about just being a good person. Never underestimate the power of common courtesy. (Those lessons your mom taught still apply!)

There have been times where Mavens & Moguls has been hired because we had the best manners—during business negotiations and pitches as well as in general practice. Things like that come back in spades, so be nice to everyone no matter what their job description or title. Good things can (and will!) come back to you.

It's hard to compete with people who don't think they're working.

If you're not psyched about what you're doing, find something else. Do what's true to you, a job you can bring your whole self to everyday. If your current job doesn't do that for you, it's time to find another challenge.

Micah Chase on Customer Service

I met Micah Chase, the founder of eInvite and President and CEO of Checkerboard, through my Creative Good council (see this previous post for more info on Creative Good). Checkerboard is a designer and manufacturer of invitations and announcements. Its handmade products are featured in high-end retailers and online stores. Micah's other company, eInvite, is one of Checkerboard's customers and serves as its online portal for selling custom-made invitations and greeting cards. I've found Micah to be a great leader as well as an innovator. He comes from a techie background (his bachelor's degree is in artificial intelligence) and he owns the patent for an online ordering system that lets customers view a real-time proof of their card designs.

In the business world, he's focused on providing customers with the best possible experience and he's been very creative in his efforts to boost customer service. Micah's innovations led eInvite to achieve the highest Net Promoter Score (NPS) of all members of Creative Good—that's something to be proud of.

I invited him to Care.com this fall to talk about serving the customer and now I'm sharing his comments with you.

Building small, segmented teams
We took people from our customer service, typesetting, and billing departments and put them together into one group. That way, when people called with questions, they had them answered right away, no matter which department they applied to. Our processing time went way down and our orders shipped quicker. And we were more efficient because when customers wanted something, they spoke directly to the person who had the answer. In turn, there was less confusion and back-and-forth iteration for each project.

Changing the pattern
We saw the realignment was working. So, we blew it up.

We changed the pattern again and set up cross-functional groups. We kept the same inter-departmental model, but segmented it by our different customer groups. We serve chain stores—they tend to have a high employee turnover rate, so they're looking for a vendor that's easy to understand and quick to respond. We also supply boutiques—people there have been in the business for years, know the ins and outs, and don't need someone holding their hand. And we also sell to individual customers who are completely new to the process.

So we gave targeted help to each base. Our long-term service people took care of the boutiques and stores and we had our most effervescent people to handle the excited newlyweds looking for custom-made invitations. The teams split into groups that specialized in specific, simple help for experienced clients and others that offered comprehensive services.

That right there shot our NPR score up 15 points, which is quite a jump.

Picking the right people
Getting the right staff is really hard—I don't know if we've gotten it right, yet. During this whole reshuffling process, we changed management. That was a hard thing to do, but it was a step in the right direction. Making sure everyone's onboard is an ongoing process (one that initially caused conflict), but we're seeing the benefits. People in separate departments now understand what everyone does, team loyalty has improved and there's connection between employees that wasn't there before.

Above and beyond
We posted pictures of brides around the office to improve service—it puts a face to the customer. We have testimonials everywhere. We've also implemented a new technology in our sales system. When someone pulls up a specific store in the computer, they see a picture of that store or the employees.  It's a way to maintain focus on the customer, which is right where we want it to be.

Mistake? Fix it!
When it comes to the customer, it doesn't matter who's mistake it is (ours, theirs, another department's, whatever)—just fix it. In the long term, it ultimately costs you less to fix it right away than to drag out the process, even if you're losing money on that particular sale. We're a supplier to big retailers like Costco and BabiesRUs—the last thing we want is an angry customer going past us to them. Those companies would drop us and we'd lose a big chunk of our business.

So, our policy is to always offer options and an explanation. I also try, in any conflict, to send a personalized note. In an age where there's not much face-to-face interaction, it lets the customer see you as a person and not someone looking to make a bottom line.

For more information on Micah's companies, check out their websites: eInvite and Checkerboard.

Phil Terry on Life Lessons from Warren Buffett

Phil Terry is a dear friend of mine. He's the CEO of Creative Good—a company that helps other companies improve customers' experiences. I'm a member of a one of Creative Good's "peer-networking-for-executives" councils. At these councils, executives from non-competitives get together twice a year, brainstorm on business issues, provide each other with a network of support, and often become friends, too. It's a fantastic concept.

At a recent conference, Phil delivered a speech on the top 10 lessons we can learn from Warren Buffett's life and business strategies. Phil's presentation was so dynamic that I asked him to share it with our employees at Care.com. And, with his permission, I'm also sharing it with other entrepreneurs and readers of this blog.

10) There's a difference between perception and fundamental reality.
As in Plato's famous cave metaphor, the shadows we see aren't necessarily the truth. Four years ago, home prices had doubled and consumer spending made up the highest percentage of the GDP ever. It was easy to be lulled into a sense of security. But now, we're on the verge of an economic downturn that very few predicted.
Humans tend to respond to things in the short-term. It's a leftover survival instinct. When it comes to business, however, we have to make sure we're responding to long-term realities and not the shadows of the now. That's really how the strong survive.

9) Be courageous and stick with your convictions.
 In 1999, Buffett predicted a 6 percent increase in the Dow over the next 15-20 years. That kind of ultra-conservative projection got him labeled a dinosaur by practically every dotcom investor. But when the bubble burst, Buffett had made the biggest profit of anyone. And he'd been proven right.
He's not a dinosaur, he's a hedgehog. He's protective of his resources, investments and shareholders, and he won't move unless he's absolutely sure he's absolutely convinced he's doing the right thing.

8) The importance of mentors.
Buffett, often considered one of the top minds in investment, seemingly never bought into that claim himself. He's always surrounded himself with mentors—people who's lives he can learn from. Some of his favorites:

•     Charlie Munger—friend, business partner and Vice Chairman of Berkshire Hathaway.
•     Benjamin Graham—friend, professor at Columbia University, economist and investor
•     Benjamin Franklin—American founding father, inventor
•     Abraham Lincoln—President and statesman
•     Thucydides—Greek historian and philosopher.

Buffett's life is proof you're never too important, or wealthy, to learn from others. Surround yourself with mentors that will hone and improve your character. These mentors don't even have to be people you've met, as long as there are enough resources available on that person's life. Buffett is one of Phil's greatest mentors (hence, this top-10 list), but they don't know each other personally.

7) Read, read, read.
Buffett is a voracious reader. He habitually studies topics that interest him or are helpful to investing. The biggest lesson we can draw from Buffett in this regard is this: don't just read what you're comfortable reading. We need to read the things we don't know how to—science, math and the foundational, cross-discipline texts. If we're grounded in knowledge that's been historically proven, we're far less likely to be swayed by this week's fad.

6) Honesty is the best policy.
First, we have to always be honest with our customers. We should be doing whatever is in their best interest, not ours. In the long-term, our customers will reward us for that kind of loyalty with loyalty in return.

But we also have to be honest with ourselves. We must challenge our cherished ideals, staying true to our values but questioning what we believe. You're never too old to learn.

Buffett bought Coke-a-Cola stock in the mid-20th century. His investment philosophy dictates that investors should hold stock for life in order to see constant, predictable appreciation. He sees himself as buying into a company, not just turning a quick profit. So, in the 1990s, when Coke's stock became highly overvalued, Buffett didn't sell. After the stock price leveled, Buffett apologized to his investors, telling them that he'd made a mistake. In sticking with his old philosophies, he'd cost them money, and his response demonstrated both honesty and the ability to self-question.

5) Simplicity is everything. Be disciplined on what you know and don't know, what's important and what's not.
Take a look at Berkshire Hathaway's homepage. It doesn't get any simpler than that. Cut and dried, straightforward and functional—it sums up Warren Buffett.

If you track Buffett's strategy, you'll see that he keeps everything simple and within his sphere of experience. He's methodical, doesn't rush into the latest fads, and will only take on an investment that he completely understands.  For example, during the dotcom boom, Buffett stayed away from technology investments. It wasn't because he didn't understand what those companies did; he just didn't know how to value them. So, instead of risking money for something he didn't fully comprehend, he stayed away. As it turns out, he was right.

4) Focus on the basics.
In the business and investment world, there's a constant litany of fads. They come, then they go, taking investors with them. Buffett's not a person who's swayed by the flavor of the day. Rather, he looks at what a company does and if it does it well. If he sees something he likes, he'll back it, whether or not it's a popular choice.

I'll use Buffett's investment in See's Candies as an example. In the 1970s, Buffett invested $25 million in the candy manufacturer's stock. He then added another $32 million in cash. It seemed like an exorbitant amount of money to pour into a chocolatier, but Buffett saw a company with a devoted customer base in an industry that grows an average of 2 percent annually. He knew that, with time, he'd see a return. And he has—to date, See's Candies has returned $1.6 billion in profits to Berkshire Hathaway.

3) Be on the same side of the table as the customer.
The best thing a businessperson can do for their company is to increase customer loyalty. And the easiest way to do that is to give them the best possible service. Unfortunately, that's not always among company priorities because you don't see immediate returns on these consumer investments.

But, in the long-term, that kind of thinking pays off. Berkshire Hathaway promises a 50/50 split on all gains above 4 percent, with half of the profits going to the company and half to its investors. Until the 4 percent barrier is reached, the investor keeps all of the profits. And Buffett also promises his shareholders a 25 percent "reimbursement" of their losses. In a world where the standard hedge fund charges a 2 percent annual fee and takes 20 percent of all gains, that kind of customer service from an investment company is unheard of. And it's why investors fiercely loyal to Buffett and Berkshire Hathaway.

2) Be a long-term thinker.
"I have written my work, not as an essay which is to win the applause of the moment, but as a possession for all time." – Thucydides

The world is split between short-term and long-term thinkers. Success is always proven in the long-term. Don't be focused solely on today. Rather, maintain simplicity, focus on the basics and ensure you're acting for the benefit of your company 50 years from now.

1) Buffett doesn't just make money. More importantly, he makes ideas.
Warren Buffett is an "everlasting learning engine," according to his friend and mentor Charles Munger. If there's one main lesson to take away from Buffett's life it's this, "How can I learn?"

Learning is not simply something you do for school. Rather, school should be a catalyst for a lifetime of education. Munger has also said that half of Buffett's success is the direct result of what he's learned in the last ten years. Think what that means—Buffett has been a business leader for ten, 20, even 50 years, yet he thrives to this day because of what he's learned along the way. He hasn't rested on his laurels. Instead, he's sought continual self improvement and found even greater successes.

Cheers,

Sheila

Guest Speaker Series at Care.com: Stephen Kaufer, George Bell, and Jonathan Kraft

Earlier this year, I decided it would be incredibly fun and rewarding (not to mention cool) for the team at Care.com to meet and learn firsthand from some of the start-up superstars with whom I've had the pleasure of working and networking over the years.

I've been fortunate to connect (and reconnect) with such amazing people, and wanted my team (and now you) to be similarly inspired by their shared experiences and learned wisdom.

Over the past few months, as part of the Care.com Guest Speaker Series, we've been lucky enough to host: Stephen Kaufer, CEO of TripAdvisor.com; George Bell, former CEO at Upromise.com and Excite@Home; and Jonathan Kraft, president of the organization behind the three-time SuperBowl Champion New England Patriots.

Suffice to say, the team was impressed (and, I hope, inspired.)

Here are some of the top business tips these prominent executives passed along:

• On building a great, long-lasting product:

"Create a product—be it a web site or a tangible thing—that you know people will actually use," Stephen Kaufer said. "It's not enough to make something glitzy or trendy. Your customers have to find real value in the product or service you're offering in order for them to remain engaged, loyal, and evangelistic."

After Excite@Home and Upromise.com, George Bell has shifted his focus to conservation causes and mentoring entrepreneurs through venture capital involvement. But he was nostalgic about the rush of producing media programming and e-commerce products.

"I miss making something," Bell said. "I loved the companies that made things. Although, I can’t complain about the benefits of taking a heap of money and turning it into a bigger heap of money, there is a long lasting sense of pride when you make something of value to the general public."

The bottom line: Create something you're proud of, and create a lasting connection with your customers, and your hard work will not only pay dividends--it will feel more rewarding.

• On creating culture:

Jonathan Kraft talked about the difference between having egos and having leaders, and on creating a welcoming and inspiring environment. What makes the Patriots different than other sports teams is the focus on a strong and united team versus a handful of individual superstars.

"Forty three guys get on the field each week, and each play has 11 guys on the field at once," Kraft said. "Each guy has to do what they're scripted to do, and understand the importance of teamwork. That all of them together are stronger than any one individual."

Both George Bell and Jonathan Kraft also talked about the responsibility of management to create cultures where honesty and integrity win.

"Be open and don't have artificial bravery, [even as a CEO]," Bell said. "Own up to the fact that you might not have the right skill set, expertise, or mentality for the job at hand. Feel no shame about it, no heartache, no sweat. Talk about hope and talk about fear all the time. Think about it as an ongoing shrink session to strengthen your culture."

Kraft echoed that sentiment.

"Don't pretend to know what you don't know," he said. "It's important to have options, and to bring in the right resources and find or surround yourselves with the right talent."

• On transparency, resources, and hiring practices:

George Bell talked about the business philosophy of A, B, and C levels of talent.

"A's hire A's, B's hire C's, and C's hire D's," Bell said. "It's a slippery slope of hiring. Outside of the A talent, there's a devolution to mediocrity, borne of feeling threatened by others (when they started out at a B level). I believe hiring is high touch, and I think that's very important. But, be humble. Have the ability to understand that there are people out there who are smarter and better than you."

He pointed out practical examples of what he looks for in the interview process, when meeting a candidate face-to-face.

"Test for consistency," Bell said. "Be a good listener. People sometimes have the ability to even fool themselves. Ask about their personal interests and you can find out about their personal accountability."

The bottom line:

"When you meet someone who's capable and confident, bag them," Kraft said.

• On measuring and setting realistic goals:

At TripAdvisor.com, Stephen Kaufer has built his online travel empire on strong metrics and testing. When they first founded the company, he was trying to sell software to Yahoo, but then shifted to leads, and the current TripAdvisor.com business model was born. Two of the main areas where Trip Advisor has won respect and admiration from the startup community are their agility and their SEO strategy--their ability to keep up with the Joneses, so to speak.

"You have to be willing to throw the business model out the window if it doesn't work," Kaufer said. "Your roadmaps should only be three to six months out, depending on whom you ask in the company. Have releases with new functionality every week, and rarely give your new product feature more than one week of QA testing."

"In a start-up environment...you can't let missed goals get you down," Bell said. "Have graduated measurement beliefs. We never had a goal that was more than two weeks long at Excite. Don't accept the artificial as the metric of hope. Take things in very small increments and you won't die of a broken heart."

• On taking risks:

Kaufer has a sign taped to his office door at Trip Advisor, emblazoned with just two words: "SPEED WINS." He explained this mantra, along with how it became a company philosophy:

"In the internet space, the cost of failure is really not that bad at all, when you think about it," Kaufer said. " Hire people who are fantastic at what they do, but ask them to put out something that's not necessarily their best in the interest of time. Get the product out there, see if it's what people want, test it, and then go back and fully develop it if it's working for you.

Speed never wins, however, when it comes to privacy, credit cards, and people's personal information.

The bottom line: don't wait too long to create something perfect. It is better to get continuous learning. Be smart, play close attention to the current task at hand, be careful about whom you hire, and keep both your employees and your customers happy and loyal.

What are your thoughts on the key ingredients to making start-ups successful?

Cheers,
Sheila