3 Important Ways to Prepare for 2014

New Year's Day is nearly here and offers the promise of great things to come.

Since it falls on a Wednesday the business week won't likely get started until next Monday, which gives you a few days extra to get ready for the 2014 adventure ahead.

Sure, you could simply nurse a hangover and relax through Sunday, but why not take the extra time to truly prepare yourself to create a desired future worthy of your time and energy?

Here are three actions critical to a promising new beginning.

1. Reflect

Many people will push right into the New Year with no respect or consideration for the last 365 days. No doubt, victories were had, mistakes were made, relationships came and went and, most importantly, lessons were learned. Take time to consciously reflect upon the major incidents of 2013. Ask yourself the following questions:

• What did I do to most contribute to my successes?
• What did I do to most contribute to my failures?
• What would I do differently given the same set of circumstances?
• Who were the people worthy of my time and effort?
• With whom did I spend time where I received no value?
• In what ways did I not measure up to my potential?
• What will I most fondly remember about 2013?
• For what will I be rightly proud?

2. Repent

Nobody is perfect. Most try their best to be useful, pleasant and to contribute in a positive way. But we are all human beings, and with humanity come failings, flaws, selfishness, greed and discontent. The New Year is a time to recognize our shortcomings and acknowledge our own accountability in the parts of our experience that leave us unsatisfied and unkind to those around us. Ask yourself the following questions and take appropriate action.

• What are the areas I need to improve?
• Who have I hurt and how can I rectify the situation?
• Who and what are truly important and worthy of my dedicated attention in 2014?

3. Renew

Clearing your mind and heart of weight helps give you energy and allows you to focus on the path ahead. This is the time to make commitments you will keep. No empty promises. Be the person you truly wish to be and let this be the year you begin that journey. My own journey has brought great joy and gratification from the many people around me who continue to inspire and amaze me. Go into this New Year with hope and wonder.  Ask these questions of the world:

• Who will be my inspiration this year?
• What new adventures are ahead?
• Where are the new lessons to learn?
• How will I be able to contribute in a significant manner?

8 Ways Using Humor Will Make You a Better Leader

1. Energize people. When the team seems dull and listless, humor is a wonderful way to wake them up and get them going. George often has to wake up a weary, late-night gambling audience and get them going when he takes the Vegas stage. His first job is to connect and get them smiling with jokes so people are feeling good and alert. As he points out: "You cannot smile without your body feeling better."

2. Create lasting memories. If you are trying to get your team to remember something, find a funny way to explain it. Laughter triggers endorphins, which lock in memories in the brain. That's why George still tells funny stories from over 50 years ago when he was a kid. He told me a couple of doozies from his childhood I would love to share...if they were only appropriate.

3. Break the tension. If conflict is high and tempers are flaring, humor can be like hitting the reset button on the mood. It will distract from the issues and make people relax so they can take a breath. Then you can restart the discussion from a happier tone. George reminds us that all in all, "Life is funny" even when it's serious.

4. Put things in perspective. So often people take themselves too seriously. And then we panic over a minor mistake. George advises: "If you go Stupid, go all-the-way Stupid. Once it's too late and you're already doing something stupid, really swing for the fences. Hell, you're already in stupid territory, make it one for the record books. Make the situation so damned bad that you'll never forget it the next time. That's right: you'll actually wind up smarter in the long run."

5. Liven things up. So often work is so serious. A great leader is not just bossy. No one really wants to toil in a hostile and stern environment. George points out that you're not here to be mean. That attitude only creates problems. In fact, mean old men start all wars. Don't be a war starter. Get the team to just relax and have some fun. Then you can enjoy the increase in productivity.

6. Disarm an uncomfortable situation. Maybe you have bad news to deliver, like criticism or a bad review. Don't just go in for the kill. You are talking to a human with feelings.  Use humor to start the talk off on a lighter note and break the ice.  Now the person will be less defensive. Think about how to make them laugh so that despite the tough talk they can say: I will make this a good day. And don't leave them feeling downtrodden. As George says: "If you see someone without a smile, give them yours."

7. Build a bonded community. Shared jokes are like common language. As your team shares humorous events they bond over the experiences. This creates comfort and happiness within the team, and George rightly states that happy people make things happen. Others who encounter your continually smiling and laughing team will want to join.  You'll attract the best of the best. Follow George's simple advice: "Go meet good people and start with a laugh."

8. Make people feel great. George points out that laughter is still the best medicine for whatever ails you.  And it's free!  In his book he writes that laughter has proven to do the following:

• Lower your blood pressure (Laugh all day, eat deep-fried bacon-wrapped Twinkies for dinner.)
• Work your stomach muscles (Can you say six pack?)
• Boost your immune system (Note: Does not combat lactose intolerance.)
• Release natural painkillers in the body (Put down that supersized oxycodone bottle for good!)
• Reduce your stress level (Imagine, punching the wall a thing of the past!)

 

 

3 Ways to Be More Audacious in Business

1.Start big. The initial stage of any project is the hardest. That's why it's so important to take those first steps with confidence. "The most difficult time is when you're starting from scratch with no financial backing, with just an idea," Branson says. "That is audacious. For somebody like myself, now, 40 years on, to do something audacious--it's an awful lot easier than it would've been when I was 15, [just] setting up in business."

2. Go all in. Doing something halfheartedly is the opposite of audacity. Giving your all may be nerve wracking, but it sets a bold tone that will help propel you forward. "My feeling is just throw yourself wholeheartedly into anything you do, and then do it to your utmost and best," Branson says. "You're setting good foundations for the long-term."

3. Don't fear failure. True audacity means taking risks--and with risks comes the potential for disappointment. But don't let that stop you. Branson says he's impressed by "those people who just have the pluck and the courage to say, 'I see a gap in the market, I see something that's not being done well, I'm gonna give it a go. Even though I may fall flat on my face and it might cost me everything." Now that's audacious.

 

 

How to Raise Prices Without Losing Customers

1. Raise prices as you add services.

If all you do is raise your price, your customers will naturally focus solely on that price increase. But if you have new services or products ready to roll out, it's fairly easy to lessen the impact of a price increase.

The key is to show greater value along with higher prices. While some customers focus on price alone, most consider the balance of value and price. Show you're offering greater value and a price increase may be a moot point.

2. Create different volume points. 

You don't always have to raise prices in order to increase margins.  Lowering volume while maintaining the same price automatically increases your profit margin.  A restaurant can often decrease portions while maintaining price; food, health and beauty, and other commodity providers do the same thing.  (Introduce a cool new shampoo bottle that oh-by-the-way holds 10 ounces of shampoo instead of 12 and your margins naturally increase.)

Or you can introduce a lower volume point with a higher per-unit price. If you currently sell a 60-widget package for $120, add a 20-widget package at a cost of $50. Customers are conditioned to expect discounts on higher volume and to pay a higher per-unit price on lower volume.

3. Create bundles of products or services. 

We tend to assume we get a better deal when products or services are bundled, even when we can't determine the cost of individual items.  Create a bundle of similar services, or create a bundle of products with a complementary service, and you may be able to raise prices on some of the individual items while masking that increase inside the bundle.

4. Establish new service options.

Say you promise a 48-hour turnaround. If some customers could benefit from a quicker turnaround, introduce premium pricing for 24-hour (or less) service.

Again, provide additional value at a higher price and most customers will be less resistant to the change; in fact, some may willingly switch to the options.

5. Change or eliminate payment term discounts.

Many businesses like yours offer discounts on quick invoice payment. Offering a 3% discount on invoices paid within 5 days definitely increases cash flow, but it also cuts your margins by 3%. If you can afford to wait, phase out the discount. (Or switch to a lower discount on a greater number of days so you keep cost-sensitive customers relatively happy.)

6. Explain.

In some cases you may have no option but to simply raise prices. When fuel prices skyrocket many businesses are forced to raise prices due to the dramatic impact on their costs. If you sell building supplies and the cost of raw lumber has increased by double-digit percentages, your customers will understand if you are forced to raise prices in order to stay in business.  If that happens in your industry, let your customers know why you'll need to raise prices.

Most are already aware of the situation and will understand--they won't love it, but they will understand. Just keep in mind that your customers may also expect prices to return to pre-crisis levels if the conditions creating the price increase fade away. If the cost of fuel goes down dramatically, your customers will expect prices to decrease as well.

But what if you feel raising prices, no matter how you implement the change, will negatively impact your business?  There is one other option.

Sometimes the best way to "raise" prices is to cut costs. While decreasing fixed costs is certainly possible, in the short term the easiest and quickest payback comes from attacking variable costs.

Focus on areas like labor, productivity, quality control, and shipping.  And while you're at it, attack semi-variable costs like maintenance and utility costs.  Reduce any expense and your bottom line automatically improves... without raising prices.

And don't forget your cost of inventory.  Whether you sell a product where your inventory is your product, or whether you provide a service where your "inventory" is employee capacity, look for ways to maximize the utility of inventory without keeping too much product or labor on hand.

"Just in Time" is almost always cheaper than "Just in Case."

 

 

3 Brilliant Negotiating Tips I Learned From Steve Jobs

1. Dig into the key details.

A great entrepreneur has to balance the urge to dive into all the details to ensure the start-up runs perfectly and the need to delegate work to the people she hires. But there are times when you have to dig into the details - especially when your start-up’s future depends on getting them right.

Aggarwal pointed out that Jobs was different than other CEOs who delegate strategy implementation. “Jobs met with the CEOs of each carrier. I was struck by the hands-on nature and his desire to make his mark on everything the company was doing. He got deeply involved in the details he cared about. He made it happen,” said Aggarwal.

2. Bet bold on your vision.

If you are the kind of entrepreneur with a vision of your start-up’s future, you will not get very far unless you can convince others to share that vision. If you’ve done your best to explain the vision to your people and business partners and they still don’t get it, you may have to take a bold step to convince them how important the vision is to your start-up’s future.

Aggarwal was impressed by the way Jobs was willing to take a risk to realize his vision. “In one meeting in the conference room with Jobs, he was annoyed that AT&T was spending too much time worrying about the risks of the deal. So he said, ‘You know what we should do to stop them from complaining? We should write AT&T a check for $1 billion and if the deal doesn’t work out, they can keep the money. Let’s give them the $1 billion [Apple had $5 billion in cash at the time] and shut them the hell up,’” Aggarwal recounted.

Although Jobs did not actually offer AT&T the cash, his willingness to do so made an impression on Mr. Aggarwal.

3. Make and fight for outrageous demands.

If you have a reputation for transforming industries, you can get away with making bold demands and getting people to meet them. This may help explain why Jobs was able to get so much out of the AT&T deal.

On the other hand, rather than being a result of his success, maybe it was Jobs’ outrageous demands and his willingness to fight for them that causedhim to succeed.

Aggarwal also found Jobs unique in his outrageous demands. As he explained, “Jobs said, ‘$50 a month unlimited voice, data, and SMS plan -; that’s our mission. We should ask for and go after something unreasonable that no one has been willing to accept.’ He would come up with these outrageous demands and fight for them -; getting much more than he otherwise would have.”

You may not be the next Steve Jobs, but you can be a better entrepreneur by learning from these three strategies.

 

 

10 Things Extraordinary People Say Every Day

Want to make a huge difference in someone's life? Here are things you should say every day to your employees, colleagues, family members, friends, and everyone you care about:

"Here's what I'm thinking."

You're in charge, but that doesn't mean you're smarter, savvier, or more insightful than everyone else. Back up your statements and decisions. Give reasons. Justify with logic, not with position or authority.

Though taking the time to explain your decisions opens those decisions up to discussion or criticism, it also opens up your decisions to improvement.

Authority can make you "right," but collaboration makes everyone right--and makes everyone pull together.

"I was wrong."

I once came up with what I thought was an awesome plan to improve overall productivity by moving a crew to a different shift on an open production line. The inconvenience to the crew was considerable, but the payoff seemed worth it. On paper, it was perfect.

In practice, it wasn't.

So, a few weeks later, I met with the crew and said, "I know you didn't think this would work, and you were right. I was wrong. Let's move you back to your original shift."

I felt terrible. I felt stupid. I was sure I'd lost any respect they had for me.

It turns out I was wrong about that, too. Later one employee said, "I didn't really know you, but the fact you were willing to admit you were wrong told me everything I needed to know."

When you're wrong, say you're wrong. You won't lose respect--you'll gain it.

"That was awesome."

No one gets enough praise. No one. Pick someone--pick anyone--who does or did something well and say, "Wow, that was great how you..."

And feel free to go back in time. Saying "Earlier, I was thinking about how you handled that employee issue last month..." can make just as positive an impact today as it would have then. (It could even make a bigger impact, because it shows you still remember what happened last month, and you still think about it.)

Praise is a gift that costs the giver nothing but is priceless to the recipient. Start praising. The people around you will love you for it--and you'll like yourself a little better, too.

"You're welcome."

Think about a time you gave a gift and the recipient seemed uncomfortable or awkward. Their reaction took away a little of the fun for you, right?

The same thing can happen when you are thanked or complimented or praised. Don't spoil the moment or the fun for the other person. The spotlight may make you feel uneasy or insecure, but all you have to do is make eye contact and say, "Thank you." Or make eye contact and say, "You're welcome. I was glad to do it."

Don't let thanks, congratulations, or praise be all about you. Make it about the other person, too.

"Can you help me?"

When you need help, regardless of the type of help you need or the person you need it from, just say, sincerely and humbly, "Can you help me?"

I promise you'll get help. And in the process you'll show vulnerability, respect, and a willingness to listen--which, by the way, are all qualities of a great leader.

And are all qualities of a great friend.

"I'm sorry."

We all make mistakes, so we all have things we need to apologize for: words, actions, omissions, failing to step up, step in, show support...

Say you're sorry.

But never follow an apology with a disclaimer like "But I was really mad, because..." or "But I did think you were..." or any statement that in any way places even the smallest amount of blame back on the other person.

Say you're sorry, say why you're sorry, and take all the blame. No less. No more.

Then you both get to make the freshest of fresh starts.

"Can you show me?"

Advice is temporary; knowledge is forever. Knowing what to do helps, but knowing how or why to do it means everything.

When you ask to be taught or shown, several things happen: You implicitly show you respect the person giving the advice; you show you trust his or her experience, skill, and insight; and you get to better assess the value of the advice.

Don't just ask for input. Ask to be taught or trained or shown.

Then you both win.

"Let me give you a hand."

Many people see asking for help as a sign of weakness. So, many people hesitate to ask for help.

But everyone needs help.

Don't just say, "Is there anything I can help you with?" Most people will give you a version of the reflexive "No, I'm just looking" reply to sales clerks and say, "No, I'm all right."

Be specific. Find something you can help with. Say "I've got a few minutes. Can I help you finish that?" Offer in a way that feels collaborative, not patronizing or gratuitous. Model the behavior you want your employees to display.

Then actually roll up your sleeves and help.

"I love you."

No, not at work, but everywhere you mean it--and every time you feel it.

Nothing.

Sometimes the best thing to say is nothing. If you're upset, frustrated, or angry, stay quiet. You may think venting will make you feel better, but it never does.

That's especially true where your employees are concerned. Results come and go, but feelings are forever. Criticize an employee in a group setting and it will seem like he eventually got over it, but inside, he never will.

Before you speak, spend more time considering how employees will think and feel than you do evaluating whether the decision makes objective sense. You can easily recover from a mistake made because of faulty data or inaccurate projections.

You'll never recover from the damage you inflict on an employee's self-esteem.

Be quiet until you know exactly what to say--and exactly what affect your words will have.

 

 

 

10 Things Employees Want More Than a Raise

1. To feel proud.

When asked what they do for a living, employees want to boast rather than apologize. They want the people they meet to be at least a little impressed, even if it's only because the employee has taken on a job that's generally thankless.

2. To be treated fairly.

While almost everyone realizes that life isn't fair, employees don't want the boss to make life more unfair than it already is.  Employees hate favoritism.  They expect the perks and promotions to go to the people who work hard, not the people who kiss butt.

3. To respect the boss.

Employees want respect from the boss, of course, but just as strong is the need to feel respect for the boss!  Employees want to believe in that their boss is a leader who is worthy of their loyalty.

4. To be heard out.

Employees hate it when the boss doesn't have the time or the interest to listen to what they have to say. Employees don't expect the boss to always take their advice, but if the boss won't hear them out they (rightly) assume the boss doesn't care about them.

5. To have a personal life.

For many bosses (especially entrepreneurs) work is a way of life.  Employees, however, usually think of friends and family as their "real" life.  Even when they're committed to their job, they get twitchy when work keeps them away too much.

6. To be coached not micromanaged.

Employees want the boss's help when 1) they ask for it, or 2) they're floundering so badly they're afraid to ask for it.  What employees don't want is to have the boss looking over their shoulder all the time.

7. To see the assh*les get fired.

In almost every workplace there are one or two jerks who make life miserable for everybody.  Almost more than anything else, employees want the boss to fire those jerks. If the boss doesn't, employees know he's either a weakling, a fool, or a jerk himself.

8. To feel less stress.

People hate the sense that they've got too much to do and not enough time to do it. Bosses must plan carefully, anticipate problems and set realistic goals, so that they don't accidentally and unnecessarily add stress to employees' lives.

9. To have a little security.

No sane employee expects lifetime employment.  Even so, it's hard to concentrate when you feel as if a sword is hanging over your head. Employees want to know that they're not wasting their time when they're giving your their best.

10. To beat the competition.

Finally, never underestimate the power of teamwork, especially when teamwork means grinding the other team into the dust.  Employees don't want to be team players; they want to play on the winning team.

 

 

4 Ways to Make Your Employees Love Working for You

1. Think about their career. Employees want to know that they have a future at the company, so a focus on career is crucial. That said, creating a positive work environment is only a start. "[Our high rate of retention] has really come from the fact that we focus holistically on each employee in thinking about their relationship to the company," Chowdhry says. In other words, focusing on career advancement is just the beginning of helping employees feel at home in a company.

2. Encourage learning. AnswerLab gives employees $400 to spend on a technology product of their choice. This perk does more than just make employees feel rewarded--it also benefits AnswerLab's clients, albeit in an indirect way. "We're a user experience firm and we want to be able to have our employees learn more about those experiences [with different technologies]," Chowdhry notes.

3. Promote wellness. A healthy employee is a happier, more productive employee. To that end, AnswerLab invests in keeping their staff feeling good. "We give every person in the company a Fitbit because we want them to get out of their chairs and out into the environment and walking and ensuring that they have a really healthy lifestyle," Chowdhry says.

4. Help them give back. Connecting with the community at large is another way to help people feel that they're a part of something bigger than themselves, so AnswerLab encourages its employees to donate their time and skills to worthy causes. "We've formed a committee entirely ran by the employees that enables them to decide how they'd like the company to give back to the broader community," Chowdhry says.

 

 

7 Signs You're Not Entrepreneur Material

You've always dreamed about starting your own business. So you've read the books, listened to the cautionary tales, and worked through some checklists. You've done your homework.

You feel sure that owning your own business is right for you.

Not so fast.

If any of the following applies, think twice before taking the entrepreneurial plunge:

Your workday must include a chunk of "me" time.

The last thing you'll have time for is managing your fantasy team when revenues and profits are a distant dream. The same is true for seeing what's up with your Facebook friends, tweeting your favorite inspirational quotes, or ranting on message boards.

You can forget "me" time in a startup, because you'll never have enough time to do the critical stuff.

So start now. Quit your fantasy leagues, say goodbye to your Facebook friends (at least the ones who won't someday be customers), and focus on your thoughts, not those of your favorite bloggers. Start spending all your "free" time thinking about how you'll make money.

If that's too big of a sacrifice, stay where you are.

You spend time personalizing your office.

I know: You dreamed of a bigger office. You're proud of your bigger office. You deserved that bigger office. It's only right that it reflects your personality and your personal brand.

Now say you plan to open a restaurant; since customers will never see your office, the only thing it should reflect is "cheap." Start-up funds should never be spent on anything that will not touch the customer.

Besides, you'll be too busy chasing customers to worry about whether your office aligns with your personal brand.

You don't empty your own trash, even when you're headed that way.

"Someone" takes care of housekeeping, you say? Someone moves your furniture, fixes your printer, and solves your network problems? Your job is to focus on more important tasks?

Maybe so... but not anymore. Entrepreneurs, especially early on, don't wear several hats—they wear every hat.

Besides, in a start-up efficiency is everything: No movement should be wasted, no time saving is too small, and no expense is too minor to eliminate.

If doing whatever needs to be done—no matter how menial or relatively unskilled—isn't something that comes naturally to you, don't go out on your own.

You feel you could be a lot more productive if you just had that new...

Think about your last laptop, smartphone, tablet, or software purchase. Did it really make you more efficient? Can you quantify the gains?

Or was it just fun to have?

I've never heard an entrepreneur say, "Jeez, we were really struggling to make a profit until I bought the new iPad—then our revenues took off!"

In a start-up you'll be lucky to get the "must have" stuff. Even if you have the funds, money spent on "nice to have" is always money wasted.

You're still mad your department got shorted during the last budget cycle.

Unless your rich uncle funds your new venture, you won't really have a "budget." The money you spend won't come from a vast corporate pot. It will come from your pocket.

If you hate struggling with limited resources or seeing your can't-miss project plans unjustly compromised by budgetary concerns, you'll also hate running your own business when you realize bootstrap is a verb.

You discuss work-life balance issues with passion and intelligence.

The concept of work-life balance is an artificial construct—there is no line between "work" and "life"—but let's pretend one does exist.

If you think a lot about the conflict between work and life, and you feel work is winning the battle, wait until you start a business.

"Work" will eat "life" for breakfast.

You've ever said, even once, "I've paid my dues."

When you run your own business you pay your dues every day. (The same should be true if you work for someone else, because the only real measure of your value is the tangible contributions you make on a daily basis.)

No customer cares about your vast experience or years of hard work... unless the fruit of that labor benefits them. You pay your dues when customers pay you.

As a business owner, you earn the right today to stay in business tomorrow. That is your only "due."

 

 

When Winning Feels Like Losing

After the 1992 Barcelona Summer Olympics, researchers from Cornell University studied the facial expressions of all the athletes who won gold, silver, and bronze medals. They analyzed footage of ceremonies and television interviews and found that gold medalists seemed the happiest.

What a shock, right?

But they also noticed something surprising: The bronze medalists seemed much happier than the silver medalists.

How could athletes who finished third be happier than athletes who finished second? The answer lies in understanding what psychologists call counterfactual thinking, or what the rest of us call, "Wait; if only..."

In simple terms (handily enough the only terms I understand), counterfactual thinking occurs when we imagine how things might have turned out. When something happens -- especially something significant -- we think about alternatives to our current reality in order to place that event in context.

Counterfactual thinking sometimes makes us feel good about where we are in comparison to where we could be. And sometimes it makes us feel worse. Either way, we do a lot of comparing: Between where we are and where we could have been... both positively and negatively.

So take the silver medalists: They used an upper counterfactual, meaning they judged themselves in comparison to the gold medalists. As a result their, "Wait... but what if?" questions fell along the lines of, "Wait; if only I had just trained harder... then I might have won a gold medal," or, "Wait; if only I had just gotten a little better start... then I could have finished first."

Silver medalists tended to dwell on what they could have done differently to win the gold.

Contrast that with the bronze medalists. They used a downward counterfactual, meaning they judged themselves in comparison to all of the people who didn't win any medal. By comparing themselves to what could have been -- no medal at all -- the bronze medalists felt thrilled just to be standing on the podium.

And that made them seem happier than the silver medalists.

Counterfactual Thinking at Work

According to James Adonis, an expert on employee engagement and co-founder and Managing Director of Team Leaders counterfactuals occur in the workplace as well -- especially during performance evaluations.

"Research shows the majority of performance appraisals have zero impact on performance," James says. "One reason for this is that appraisals are often laborious. When both employees and managers dread them, they can't ever be effective. And another reason can be attributed to counterfactuals."

For example, when you give an employee a less than perfect rating, it's natural for him to think about what could have been. If he uses a downward counterfactual that's great, because he's happy: Comparing his evaluation to what it could have been -- much more negative -- makes him feel good about her performance.

But if he uses an upper counterfactual he may become angry or resentful and definitely won't feel good about his performance. And he'll probably only remember those feelings of disappointment and not any of the specific and constructive feedback you provide.

The key is to minimize upper counterfactuals whenever possible. That way employees will not only be more open to suggestions for improvement but will also be more likely to accept -- and remember and feel good about -- the positive feedback they receive.

Here's James' advice:

To minimize upper counterfactuals before an appraisal:

• Eliminate surprises. Hold enough feedback sessions in the months leading up to the appraisal so that employees can accurately predict what they'll hear during the appraisal. (If I'm surprised by formal feedback, that's your fault -- not mine.)
• Set clear expectations. Ensure employees completely understand how their performance will be measured. The more they know about what you expect, the more likely they are to be objective about their own performance... and the less likely they will be to have mistaken impressions that cause them to use upward counterfactuals.
• Ask questions. Have honest conversations to explore what your employees expect. Then you can correct incorrect impressions or perceptions in advance -- or at the very least be prepared to deal with them.

Here's how to deal with upper counterfactuals when they happen during an appraisal:

• Don't argue or debate. If an employee gets emotional, let him vent. (Sometimes all we want is to be heard.)
• Paraphrase what is said to prove you listened and understood.
• Ask further questions to learn about the underlying reasons for how the person feels. The more you know, the better you can respond -- and sometimes empathize.
• If necessary, refer to previous discussions when you talked about performance issues.
• Be prepared to concede that maybe... just maybe... your feedback is inaccurate. It does happen.

In short, be fair, be honest, be straightforward, and consider not only the feedback you will give but also the impact -- especially in counterfactual terms -- of that feedback on each employee.

When you do, your employees won't need to reach the top of the podium to feel they're winners -- and to walk away motivated to keep improving.

 

Top 10 Moments of GREAT IDEAS get Generated

Analyzing all the 348 moments creates this top 10 Eureka moments, which accounts for two third of all 'the moments of great ideas'.

1. Showering 11.2%;

2. Sleeping 9.2% (dreaming);

3. Driving 8.6% (my car, motorbike);

4. Walking 8.0% (in nature or walking the dogs);

5. Working out & running 7.2% (jogging);

6. Before sleeping 6.6%;

7. Waking up 6.6%;

8. Talking to others 3.7%

9. Alone 3.2%

10. Always 3.2%

What strikes me most is that only 0.6% of the eureka-moments happens "in a brainstorm" or "at work". This small research on Linkedin seems to confirm that that if we STOP thinking, our best ideas pop into our minds. In my profession this is called incubation. It is defined as "a process of unconscious recombination of thought elements that were stimulated through conscious work at one point in time, resulting in novel ideas at some later point in time".

If it takes time to get our best ideas you should plan an incubation period between defining your challenge and sharing ideas on this with others who are involved. I have developed a structured method to start innovation in which incubation has an explicit role.

 

 

Top 10 Eureka Moments

Most inventions and scientific advances really come after hours and hours of hard work in the lab and years of trying to wring funding from a stone.

But these stories represent times when inspiration struck like a bolt out of the blue and the world was changed by that eureka… that, or these scientists are just the ones with the best P.R.

Archimedes is the man who made eureka famous; of course he's on the list.

1: Special Relativity

It was only very recently that psychologists discovered the science behind eureka, or aha moments.

That eureka moment involves first being stuck and then relaxing your mind. That's exactly how special relativity came to Einstein. For years he had been trying to reconcile - or prove one of - two seemingly contradictory theories about space and time.

While riding a street car home one day, he was struck by the sight of Bern's famous clock tower. The answer was simple and elegant: time can beat at different rates throughout the universe, depending on how fast you moved.

2: Alternating Current

Nikola Tesla was one of those strange people for whom eureka moments were the norm. Ideas for inventions would spring from his head, fully formed, like Athena.

One of his most famous eurekas, though, was the idea for alternating current. From the first time he saw direct current demonstrated, Tesla knew that there had to be a better way, but the answer eluded him.

One day he was out for a walk (quoting Faust, according to legend) when it just came to him. He used his walking stick to draw a picture explaining how alternating current would work to his walking partner.

Tesla partnered with George Westinghouse to advocate for Alternating Current, or AC, over Thomas Edison's DC, or Direct Current. AC eventually was adopted, but not before a publicity battle so bitter that it would put many of today's political campaigns to shame.

3: Nerve Impulses Transmitted Chemically

Otto Loewi discovered that nerve impulses were transmitted chemically, not electronically, all thanks to a dream.

In the early 1900's scientists first proposed the idea of chemical transmission of nerve impulses, but 15 years later it was still just that - a hypothesis. Otto Loewi was about to change all that.

The story goes that just before Easter Sunday, in 1920, Loewi dreamed of an experiment he could do that would prove once and for all how nerve impulses were transmitted. He woke up in the middle of the night, excited and happy, scribbled the experiment down and went back to sleep.

When he woke up, he couldn't read his notes. Luckily, he had the same dream the next night. The experiment and his later work earned him the title, the "Father of Neuroscience."

4: Archimedes and the Golden Crown

He may not have been the first person in history to get a sudden flash of inspiration, but Archimedes is the man who made eureka famous.

It all started when King Hiero II was skeptical about his new laurel leaf-shaped crown. The king wanted to know whether the crown was solid gold, or if some other metal had been added.

It was up to Archimedes to figure this out. Only there was one catch: he couldn't destroy the crown.

After what probably felt like days with the Jeopardy theme song playing in his head ad nauseum, Archimedes drew a bath and suddenly it all became clear. He could determine the density of the crown by noting how much water it displaced. If any other material had been added to the crown, it would be less dense than if it were made entirely of gold.

Archimedes was so excited that he ran naked through the streets (remember, he was about to take a bath) shouting, "Eureka! I have found it!"

5: Television

Philo Farnsworth is kinda the Abraham Lincoln of inventors - he was born in a log cabin, had quite a hike to school (there might have even been snow!) and he fought an historic fight - more on the fight in a bit; eureka moment first.

The 14-year-old Farnsworth was plowing a potato field one day when it suddenly just came to him how electrical television could work. No, there weren't hallucinogens in the spuds. According to legend, the back-and-forth motion of the till inspired him. Farnsworth realized that an electron beam could scan images line by line - simply put, that was the basis for almost all TVs until LCD and plasma screens came along.

He went on to demonstrate the first operational, all-electronic television system in 1927.

Almost immediately he was embroiled in a legal battle with RCA, who claimed that their scientists had come up with - and patented the idea - first. The U.S. Patent Office disagreed and sided with Farnsworth, but years of legal battles and media smear campaigns took their toll. Farnsworth died in near obscurity in 1971.

6: PCR

One Friday night in the 1980s Kary Mullis was driving from Berkeley, where he worked, to Mendocino, Calif., where he had a cabin.

The drive is about three hours long, but the brainstorm Mullis had behind the wheel will most likely last forever. Mullis wasn't trying to solve a particular problem during that drive, just thinking out loud when, according to him, he came up with PCR, a process by which a teeny-tiny bit of DNA can be exponentially amplified.

That amplification allows for all kinds of applications - everything from the diagnosis of hereditary diseases to catching criminals and paternity testing.

7: Coordinate Geometry

Forget "I think there for I am." Descartes' real gift to mankind is a great reason to sleep late: an important aha moment.

Descartes liked to stay in bed until around noon. The habit started when he was a sick kid, and he stuck with it for the rest of his life. But don't think that Descartes was wasting time hitting the 17th century equivalent of the snooze button over and over. One day, while watching a fly flit around above his head, Descartes realized he could describe the fly's position by saying how far it was from the walls and ceiling.

Sounds like "well duh" now, because you probably studied coordinate geometry, a.k.a. Cartesian geometry (named after guess who), while you were in school.

8: Microwave Oven

Like your microwave, thank the military. The microwave was born when engineer Percy Spencer was working on magnetrons for some military radar sets.

According to legend, Spencer had a bit of inspiration when a candy bar he had in his pocket melted near the radar he was working on.

Spencer, being a clever engineer and all, knew that the microwaves being emitted by his magnetron could penetrate the exterior of a food and cook it from the inside - unlike using plain old heat from an oven, or fire which cooks food from the outside in.

9: Velcro

We wouldn't blame you if you were pretty sick and tired of hearing about how so many great inventions and scientific advances come from nature, but in the case of Velcro it's really true.

One day George de Mestral took his dog for a walk in the woods. When he and Fido got back, Mestral noticed burrs all over his pants. The tricky little devils would not come off.

Louis Pasteur said, "Chance favors the prepared mind," and boy was Mestral prepared. Looking at the burrs under a microscope, he saw that they had tiny hooks that had attached themselves to the loops of thread in his pants.

No word on whether he was specifically thinking about kids who can't tie their shoes when he brought Velcro to the world, but they are certainly among his most satisfied customers.

10: Post-Its

Spencer Silver spent years trying to get his colleagues at 3M excited about his low-tack, pressure-sensitive adhesive. The world yawned.

But one day another 3M scientist was in church, not a bad place for a eureka moment, and came up with a use for Dr. Silver's glue.

Arthur Fry was annoyed that the bookmarks in his hymnal wouldn't stay put. He thought adding Dr. Silver's adhesive to some paper might do the trick. Not only was he right, but people have been coming up with uses for the Post-Its ever since.

 

 

9 Ways to Turn a Frustrating Day Into a Great One

1. Count your blessings. Keep a little notebook where you write down positive things like dates when you accomplish something, or good ideas, or inspiring quotations.  Keep it nearby for you to reference. Then when you are feeling down or frustrated you can pull it out and smile.

 

2. Complete one important task. Stop the trend of failing in its tracks. Set one small, defined task for yourself and finish it. You can't underestimate the mood boost that comes with the satisfaction of completion.

 

3. Set a reminder. Use your phone, computer or watch and set an hourly tone to grab your attention. When it goes off, think of a couple of happy thoughts, spend a few minutes in prayer, or engage in another affirming behavior.

 

4. Seek beauty. Find a respite from the tension in music, art, taking a walk in a park or garden, or surfing some beautiful videos. Experience something that stimulates your aesthetic sensibilities.

 

5. Begin a better future. Take the first step toward a life-changing decision. Take 20 minutes and list out 3 or 4 things you have always wanted to accomplish.  Then surf the web and find a way to start the process. Maybe you always wanted to see Europe.  Book a trip today.

 

6. Make a new connection. Put aside the frustrating tasks and sort through your LinkedIn list for people worth meeting. Reach out to several and begin the conversations with your new peers, mentors and friends.

 

7. Watch something inspiring. Often frustration comes from doing things the same way with little success. Find some new methodology. The Internet is full of inspiring material to get the day turned back to positive.  Take your choice of TED talks, Gazelles experts or other thought leaders that can give you an amazing insight that makes this the best day ever.

 

8. Start learning a new skill. There is always excitement that comes with learning. Maybe it's time to start learning that new language or perhaps you always wanted to know how to code. Beginnings are filled with promise and opportunity. Start something promising today.

 

9. Show some appreciation. Perhaps your karma is getting the best of you today. Turn it around. Send a short message (email, text, note, call) of appreciation to someone. Tell them how much you enjoy and appreciate them. Then experience how they light up. You'll instantly feel better and your day will now be headed on the right track.

 

Five Tech Tips and Trends for Entrepreneurs

Entrepreneurs looking to grow business are tempted in nearly every direction by tech writers and bloggers loudly proclaiming they’ve found the next big thing. With an explosion of new technology, it is nigh impossible for entrepreneurs to keep up. These five tech tips and trends will both simplify your workload and help you increase productivity in the workplace.

Rein in your inbox

When your inbox is jammed with new email, you can miss important emails and struggle to find the things that you need. Take control of your inbox by filing emails after reading them into three categories: Read, respond to right now and file away to respond to later. This may seem like a more time-intensive approach, but when applied regularly, it actually saves you time later and ensures that you’re not distracted by unimportant emails.

Adopt cloud storage

Not only does cloud storage save you money and resources, it makes it easier for you to access documents anywhere and automates data backups that safeguard resources in the event of data loss. The cloud also encourages collaboration and helps employees work more efficiently. There are many different types of cloud storage solutions, to fit all different kinds of workplaces.

Switch to BYOD in the workplace

BYOD also helps employees work more efficiently, more productively and in a manner that is the most comfortable to them. If you ignore BYOD, your employees will only use their own devices at work anyway, and doing so without oversight could leave you vulnerable to data loss. Take a proactive stance when it comes to BYOD, by setting and enforcing a BYOD policy that helps everyone be more productive while setting regulations that keep enterprise resources safe.

Invest in electronic signature technology

Electronic signatures simplify and expedite the signature process, saving you time and making it even easier to collaborate. Many electronic signature technologies are compatible with existing software, such as Microsoft Word or Google Drive, for easier integration into your workflow. While this technology can be an expensive investment, over the long run it may be cheaper than paying extra to messenger or overnight deliver documents for signature. If you regularly pay a premium to get documents signed on time, place this trend at the top of your list.

Continue to expand your knowledge through online education

In the age of the MOOC, it has never been easier to expand your knowledge base online. Use resources like Coursera, OpenCourse, Khan Academy, Lynda.com, Code Academy, Code Year or HubSpot Inbound Marketing University. Learn through video tutorials, podcasts and by putting the skills you are learning into practice. If you regularly devote some of your time to pursuing new skills, you’ll quickly add to your portfolio and expand your usefulness in the workplace.

 

 

7 Traits That Distinguish Super Successful People From Ordinary Ones

Here are stories of seven of the most successful--and wealthiest--people in the world to illustrate each of those seven principles. 

1. Guy Laliberte, Cirque du Soleil Founder: Do What You Love, But Follow the Money

Guy Laliberte was a high-school-educated circus clown from Quebec when he led a collective of performers to start Cirque du Soleil. Despite government subsidies, indulgent sponsors, and Laliberte's hard work, the circus barely survived for years while evolving its distinctive style. Laliberte's master stroke was to switch Cirque's status from non-profit to for-profit (with himself as one-third owner). Today he's worth $1.8 billion. Even clowning can be a smart career move, as long you're the owner.

2. Suze Orman, Financial Advisor: Save Less, Earn More 

Suze Orman has made a fortune telling people to grow their wealth through frugality, despite having no personal experience in the matter. When Suze was in her mid-30s, she lived high, but was mired in debt. She didn't cut back on luxuries; instead she worked her way out. She did what she loved, followed financial opportunity, and today she is in a situation to spend $300,000 a year traveling the world on private jets. In the end, your time is much better spent seizing opportunities than pinching pennies.

3. Bill Gates, Microsoft Founder: Imitate, Don't Innovate 

Bill Gates built one of the world's largest fortunes--$67 billion, according to Forbes--by licensing operating system software to IBM. In actuality, that software was wholly adapted from someone else's code. Gates' Microsoft lacked the innovative capacity to write it from scratch, so it dressed up some code from another company's software, which Microsoft had bought for $25,000. When Gates delivered the second-hand software to IBM, it was on time, but it was so buggy that IBM engineers had to rewrite it completely. Thirty-three years later, no one remembers or cares. Innovation is seldom as important as timely execution of an adequate imitation.

4. Warren Buffett, Investor: Know-How Is Good, Know-Who Is Better

Warren Buffett arrived at his savvy investment philosophy when he was very young, but his know-how was nearly worthless because he personally lacked enough capital to make large market moves. Buffett didn't get rich until he overcame his shyness, recruited members for his investment partnerships, and led those partners in squeezing stock performance out of corporate managers. Case in point: No one gets rich alone.

5. Adam McKay, Hollywood Producer/Director: Win-Win Is a Sure Way to Lose 

Adam McKay is one of the most successful producer/directors in Hollywood. He's teamed up with Will Ferrell on Talledega Nights, Step Brothers, The Other Guys, and Anchorman. But his movie-making career might never have happened if he hadn't negotiated a sweetheart deal to produce film shorts while on the writing staff at Saturday Night Live. The secret to landing the deal? He didn't try to play a so-called win-win negotiating game. Instead, he told SNL's top dog Lorne Michaels that having his own film crew was his price for staying with the show, and he was ready to walk away without it. Michaels paid happily.

6. Richard Branson, Virgin Founder: Spread the Work, Spread the Wealth 

Sir Richard Branson suffers from severe dyslexia, but he's come to regard it as his greatest strength. Branson runs his Virgin Group as a venture capital fund that places bets on entrepreneurs with bright ideas that fit the Virgin brand strategy. He's never tempted to micro-manage any of the dozens of Virgin companies because he can't. "If I could read a balance sheet," he once said, "I wouldn't have done anything in life." In sum, work your strengths and get others to work theirs.

7. Steve Jobs, Apple Founder: Nothing Succeeds Like Failure

Steve Jobs had a vision, back in the 1980s, for a three-dimensional imaging computer that would revolutionize the defense, oil, and medical industries. He was wrong about it, and he lost millions of his own dollars before shutting down production of the $125,000 Pixar Imaging Computer in 1991. At the time, Pixar's only profitable unit was a tiny team of animators using Pixar software to make computer-generated TV commercials--a team that would later form the Pixar movie studio that made Toy Story. And when Jobs died in 2011, more than 70 percent of his $8.3 billion fortune came from his stake in Pixar Studios, in an industry he never had any intention of entering.