hospitality technology made simple

secrets to a successful . . . breakfast?

2009-05-21T21:28:00.000-07:00

Breakfast is my favorite meal of the day. And my favorite thing to do at breakfast is to share good conversation.

I'm on a workation in Phoenix and when I travel to any city I try to connect with at least one person over breakfast (this is great way to network with other consultants, meet prospective clients, or catch up with friends). Last week I sent an email to John Burns to meet for breakfast. I'd met John once before at the HOT Conference and was eager to learn how he got to where he is and hear his take on consulting in this economy.

For those of you who don't know John, Mr. John Burns is and has been one the most influential figures in hospitality technology and was honored in 2006 with an induction into the HFTP Hall of Fame (yes . . . there is a Hall of Fame for hospitality technology). He is arguably the expert in electronic distribution systems for hotels with a very impressive list of clients all around the world.I'm not sure if I can say it's a "goal" to be in the HFTP Hall of Fame but it would be an honor to be recognized among the names in this group.

John recommended we meet at Cafe ZuZu in Hotel Valley Ho. It was AMAZING and we were blessed with a summer storm. We enjoyed awesome food and great conversation on the outdoor patio (which is not generally done in Phoenix in May) as a light rain pattered on the tin umbrella over our table with casual 50's classics offering a chic atmosphere. I had Brioche french toast with lemon cream cheese and fresh berries . . . can I say "AWESOME!" Hotel Valley Ho is cool retro-modern hotel that was renovated a few years ago to highlight and capitalize on it's 1950's style. I'm in Phoenix often and I will now be frequenting Cafe ZuZu.

John lived up to his reputation of being amazingly knowledgeable, but beyond that he was amazingly open about projects he was working on and an wonderful breakfast companion. He left me with some gems of wisdom to take away as a consultant. I have been extremely blessed and always grateful for the guidance and direction other consultants have given me (mainly this amazing guy).

So thanks John for a wonderful breakfast!

An interesting thing I've noticed throughout my career is those with the most success are also the most willing to share about how they did it. So here's a question . . .

Are you working to keep your reasons for success a secret and why? Or, do you openly share your secrets for success and why?

santa barbara zoo

2009-05-19T13:30:00.000-07:00

I always enjoy when the effort invested into a project culminates in a successful go-live. But occasionally I get to be involved in very special openings. By special I suppose I mean memorable. Memorable because it is a miracle the venue actually opening on time (ya'll be there, right?), or memorable because of witnessing something I'll only get to see once, or memorable because I get to be part of something historical. . . even if my part is just a bit part in the periphery of the actual event.

Once I got to see the Eagles jam together in a warm-up sound check at American Airlines Center in 2001. It was the only US stop on their 2001 tour. The day before opening the stadium was supposed to be completely empty of anyone but the band, security, and roadies. But me and few others were preparing for opening the next day and had the opportunity to sneak in and listen to them warm-up. That huge stadium seemed tiny to us in that moment. . . like the warm-up was a jam session was for us. It was awesome!

My most recent client go-live at Santa Barbara Zoo was my recent memorable opening. Not because of a classic classic-rock concert, but because they made history. And not because of the technology. The logistics of the project were not complicated. The Zoo was opening a newly remodeled retail outlet and a new restaurant with the Agilysys POS system. By the way, the project went very smooth if I do say so myself and ended about 25% under budget. But that's a side point really. . .

The point is the Zoo made history with this opening. In addition to opening Explore Store, a very eco-friendly gift shop with most items made entirely of recycled material, Santa Barbara Zoo became the third zoo in the world to open a California Condor exhibit (they were heavily involved in the first exhibit in Baja California, Mexico).In 1987 there were only 27 California Condors in the world! Today there are now 325 with 138 now living in the wild. This exhibit is amazing and these birds are HUGE. The Zoo is a wonderful place which has only been enhanced by this new exhibit. I so appreciate and commend the Zoo's achievement in helping return these majestic birds to the wild and continue educating the public on their importance to our environment.I got to be a part of the Zoo's Grand Opening and felt honored to be there. . . if only to make sure the point-of-sale was working. It gave me another reason to be grateful for my job!

i can't make up my mind

2009-05-15T14:52:00.000-07:00

Here's the deal...

A few months back I switched this blog to Wordpress from Blogger. I felt the UI for Wordpress was better as well as some of the other stuff they offered. What I did not account for was my free blog was no longer free if I wanted to republish the layout with some customizations. For that I had to purchase Wordpress CSS editor...LAME!So I'm back to Blogger with a new layout and new RSS feed. For the 5 of you that actually read this blog sorry for the confusion. But I'm here to stay now!

By the way, if you want to know how I got the sweet Flash header leave a comment with your email address and I'll shoot you a message.

new digs

2009-04-15T21:03:00.000-07:00

kevin sturm Consulting has been updated with a really awesome new site. Take a tour and you'll see what I mean. I think the new site expresses what differentiates my consultancy. The bottom line of which is "I am my brand."

When a company selects my firm to advise them on a technology solution, they get me...not just the business part of me, but the whole part. All my passion and all my enthusiasm. My passion for technology, and travel, and great customer service can't be separated from my passions about living life to the fullest, loving my family, and helping others. Without my other passions, my company is just like any other company...simply someone trying to make money. But I think (and hope) I'm more than just that.

My company is the avenue that allows me to live out my passions:

Spending as much time with my family as possible
Using my knowledge and experience to help others be more successful
Creating freedom in my life to do the things I love to do
Traveling...both for work and pleasure
Being directly involved in technology and how it can change our lives for the better

I am my brand, and it became important that my website reflect that.

Thanks to the genius of a few folks over at Showit Fast, I was able to build this site myself WITHOUT ANY HTML OR FLASH coding. Given the current economic conditions I have to say saving the dinero on a web developer and graphic designer was a huge help. If your a consultant and wishing your website better reflected your brand, better represented your company, and allowed you to update it on a regular basis then go download Showit Sites.

Make sure to use the promotion code "SIMPLE" to get the first two months FREE. And if you have any questions email me because I'd love to help you get you started in building a site that matches your brand and simplifies your life.

sweating the small stuff - part two

2009-02-05T20:03:00.000-08:00

I frequent this site to keep up with who is doing what, where and when in hospitality. I've found about half the content recently is either economic-doom-and-gloom or hopeful-economic-optimism. So which is it? If you've come to this site to find the answer, I don't have it for you. Sorry...

What I do have are tips on how to optimize your existing technology solutions to either increase profits or decrease costs. Today we are specifically focusing on lowering your Cash Cost.

Cash Cost is inclusive to each area your business incurs a cost in receiving cash. This includes cash accountability on the part of the employee and cash accounting on the part of management. Multiply this process for each individual employee that accepts cash and your Cash Cost can get expensive.

The prolific way to eliminate this cost is to go cashless. Many venues across the hospitality space have adopted this model: such as this one, this one, this one, and this one. But getting completely cashless requires cash, sometimes a lot of it. Instead, let's look at some small ways you can alleviate Cash Cost.

prevent cash theft
Most POS systems (probably yours too) have built in cash accountability to help prevent theft and cash counting errors. The first step in taking advantage of this is to ensure your employees are not sharing POS User Accounts. My experience is if employees get to share accounts, there is a good chance they have also get to share in an " unofficial" employee bonus pool. Second is to require employees to enter a Cash Drop at the POS. (Whether this is a blind drop or a not should be based on your business requirements and employee job function.) Requiring a cash drop allows the management staff to review system reports that highlight over/short employees saving time by focusing first on the problems.

increase credit transactions
Increasing Credit Card transactions is a good way to decrease Cash Cost (and is a type of cashless payment), but you need to do the math for it to make sense. Getting the most from your merchant services provider requires transaction volume and aggressive negotiation. If you are not sure about how to go about negotiating your fee contact a company like this that does it on your behalf and gets paid based on your savings. To make any meaningful savings here you should also have a software based payment solution integrated with your point of purchase system(s).

The best way to increase credit card transactions it to market it, but you also have to incentivize the consumer. This can be implementing a no-signature transaction policy (moot if we ever migrate to EMV) or joining programs that encourage customers to pay with their credit card (i.e. here and here).

implement gift cards
Offering gift cards creates the opportunity to decrease Cash Cost and encourage customer loyalty. However, this is the type project where scope creep can kill the initiative so be conscientious and realistic in defining what you are going to implement. There is a very good chance your point of purchase system (PMS, POS, etc.) or credit card solution offers or includes a gift card solution. It will most likely not offer all the bells and whistles of this or this or this, but the goal remember is to initiate low cost steps in decreasing Cash Cost.

customer account integration
This is an often overlooked but simple option to move in the cashless direction. Additionally, this option has the HUGE upside of tracking your customer's purchase habits. Again there is a good chance also your existing point of purchase solution some sort of customer account charge. For larger venues the better option is to implement an integration between the point of purchase system(s) and the customer account system(s).

The basis of this solution is an interface from your POS system to your customer account(s) system.

Property Management System to POS: guest transactions are paid with a room key and/or name
Membership Accounting to POS: member transactions are paid with a membership card and/or name

As with automated product/item depletion there is a very good chance your vendors already have the interface in place, meaning you can implement it with a minimal investment.

currency counting integration
If you handle enough cash to use currency counting machines another interesting option is to investigate an interface from the currency counting solution to the POS. I have only seen this integration implemented a few times, but it has proven to be a highly cost effective solution with a convincing ROI. It usually is accompanied with a higher investment cost however as this type of interface is generally custom integration that uses the POS Accountable Cash data, POS Cash Drop data, and Cash Counted data consolidated to a single report for simplified cash accounting.

If you have someone on the payroll that has the sole duty of counting cash and reporting discrepancies, this is probably a worth while option to investigate.

Obviously this list is not comprehensive, but hopefully stimulates some ideas. If you have successfully implemented other options or have other ideas post a comment and share your knowledge. In times like this it is worth it to share our experiences so we all come out ahead.

sweating the small stuff - part one

2009-01-24T13:05:00.000-08:00

For whatever reason when revenue is up venues have the tendency to not sweat the small stuff. I guess it's because the small stuff doesn't amount to much when focusing on the big investments. But when revenue is down it's time to look closely at where your staff is spending their valuable time.

The next two posts will be dedicated to the "small stuff". Each has a minimal time and dollar investment with a quick ROI.

automated product/item depletion
Manually entering inventory depletion should only be necessary if you don't have a PC based POS solution (and even then it may not be required). If you do have a PC based POS solution (and who doesn't at this point) then now is the time to link the two system.

A basic overview of this interface is the POS system exports a text file (formats can vary) of product/item depletion. This file is then used by the inventory management system to decrement inventory amounts. A key prerequisite is a "Common Numeric Identifier" for each product/item that is shared; this is generally the SKU number. Chances are good the vendors you use already have a functional interface, and it's highly possible getting it turned on won't cost you anything (except maybe vendor support fees). If your vendors do not have an established interface you have a few options

option one
The first option is to work with one of your vendors to write a utility that meets the specifications of the other vendor. For example, your POS vendor writes an export utility that produces a file matching the import specifications of your inventory control vendor. Or, the inventory control vendor writes an import utility that uses the file format provided by the POS system. Most vendors have vast experience with this option, as it is the most common and generally preferred solution But, the price of this method can vary drastically among vendors.

Pros: vendor supported interface, highly scalable for large volumes of data
Cons: vendor may charge high price for development, any future changes to the interface require vendor time line

option two
The second option is to use a middle-ware utility to convert the standard POS export format to the standard import format for the Inventory Control system. There is a multitude of middle-ware applications available allowing someone with development experience to accomplish this. They range from free-ware applications to highly scalable solutions like Microsoft Biztalk. Be careful however as the price of this option can unexpectedly creep as interface iterations spiral out of control. The advantage is the opportunity to use the middle-ware application for other integration projects. The important point here is data mapping. Incorrect data mapping will lead to incorrect inventory depletion.

Pros: scalable for large volumes of data, use middle-ware software for additional interface engines
Cons: requires development experience, possible high cost of software and development

option three
The third option is to build a conversion utility with scripts, macros, and/or batch files. This process generally involves utilizing MS Excel and Visual Basic for Applications (VBA). I would only recommend this option when working with small volumes of data (no more than few hundred lines of data per executed export file) and when manual validation of the process regularly can be performed. Most IT resources (especially if they are a recent graduate with an computer related degree) have the experience necessary to build these utilities. The important piece here again is data mapping. Incorrect data mapping will lead to problematic inventory depletion errors and generally non-descriptive and unhelpful error messages produced by Microsoft.

Pros: internally owned, can quickly be implemented, low cost investment
Cons: internally owned (yes it can be both), not scalable for large volume of data, high chance of failure

reviewing your ROI
To calculate your ROI estimate how much time is spent reviewing sales and product mix reports and how much time is spent entering depletion into the inventory system. For convenience use monthly estimates. Next, calculate the Estimated Monthly Task Cost of this process using the hourly rate of employee(s) performing the task.

Estimated Monthly Task Cost = (time reviewing reports X hourly rate) + (data entry time X hourly rate)

Based on which of the three options you choose to implement calculate the Total Project Cost. If your vendor charges a recurring support fee for the interface in Option One, don't forget to include that in the Total Project Cost. Also, if you choose Option Two and pay for a recurring support fee for a middle-ware application don't forget to include that in the Total Project Cost. (If you plan on using it for additional projects you may want to only include a fraction of the support fees.)

ROI = Estimated Monthly Task Cost / Total Project Cost

This is how long in months it will take you to recoup the Total Project Cost, allowing your employee(s) to focus on other revenue generating activities. You may even find your ROI is less than one month!

If you don't have the experience or time to implement this interface give me a ring, I'd be happy to help! ;-) But don't forget to include the cost of the consultant in your Total Project Cost.

If you are wondering about an integration capability post a comment and I'll cover the details in a future post. Even if you think it is probably not possible, it may be. I've seen a parking garage gate interfaced to the POS cash drawer...so almost anything is possible.

information entertainment gets healthy with an apple a day

2008-12-04T12:55:00.000-08:00

I did an interview with Josiah Mackenzie on his Hotel Marketing Strategies Blog. In the interview Josiah asked me a question about how information entertainment is changing the guest experience, with specific reference to Microsoft Surfaces. I think Surfaces is cool, but I'm not convinced it's functional at the current price point (check out the full interview here). His question prompted me to do a little more research on some rumors about Apple's move into hospitality.

I liked these rumors for two reasons. First, Apple already has guest experience nailed. If you doubt me spend some time in an Apple Store. From architecture, to music, to hands-on-play, to service Apple knows how to manage the guest experience. Second, I'm a tech junkie and an Apple lover (both the mac and honey crisp kind).

What I found really excited me.... I may book a trip just to experience what I saw. Apple has partnered with Nanonation to provide some seriously awesome digital media content to guests. Most of their website revolves around digital signage, but via Apple's website you can register to watch a demo on how they are changing the face of in-room entertainment. And this isn't future in-room entertainment, it shows what is available now!

To get all the nitty-gritty details you really need to watch the presentation. You can do so by going here and then click "Watch the presentation". That will take you through a series of steps to register your info with Apple (you will need to setup an account). There is a also a single page pdf you can download here.

if you don't have time to watch the video here is my synopsis of the benefits.

A really awesome graphical user interface that is very easy to use, allowing your guests to buy services, research local attractions, and all the while allow you to store their search information making their future searches more guest-centric.
Through use of the Mac mini (a 6 x 6 x 2 computer) you can use the LCD HD TV that most likely is already in the room. And you get the awesome Apple Care warranty option. This also means the hardware and software platform for your In-Room Entertainment is the same as for your Digital Signage in the main areas.
The potential benefits of how this technology will migrate to the iPhone and iTouch is SWEET! See your entire schedule and be able to book reservations for any hotel amenities on your iPhone through an app that integrates with your room details.
Very intuitive and highly functional interactive channel guide for TV viewing.
A movie guide that is more advanced than the current solutions you generally see in hotel rooms, offering more flexibility and a richer user experience typical to that of a Mac.

If you're interested in implementing a new and different in-room entertainment or digital signage solution give me a call. Together we can find out of this solution is right for you.

For more information about kevin sturm Consulting please visit my website or email me .

new website launch

2008-10-09T15:05:00.000-07:00

Okay, so it has been AGES since I've posted here. But I wanted to announce the launch of my new website! There is still some stuff I need to include, mainly client details...those are going to take some time as I need to get approval from clients for the images and text.

But thanks to my buddy DJ and the Showit Sites team I got my new site up. DJ and team created one of the coolest new website design products out there. It allows somebody like me who really is not all that creative nor has html coding ability to create a pretty HOT website. So, when you get a chance check out my new digs over at kevin sturm Consulting.

If you are intersted in getting a site like this setup email me and I'll send you a promotion code for your Showit Sites subscription.

a new title for what i am

2008-05-02T11:29:00.001-07:00

I just learned what I am...

While reading Escape From Cubicle Nation I found out about Anywired and read the post Become a Lifestyle Entrepreneur: Complete Guide and 40+ Resources.

I'm a Lifestyle Entrepreneur! What does that mean you ask? You really should read the post, but here is a great description from Skellie over at Anywired.

"If you are — or would like to be — an entrepreneur, yet you’d be happy to earn enough to live the life you want rather than becoming filthy rich, lifestyle entrepreneurship might be a good fit for you.

Lifestyle entrepreneurs will generally base their ventures around time minimalism, or something they love, even if there are more profitable (but more time-consuming, or less interesting) options available.

The goal of a lifestyle entrepreneur is not to amass a huge fortune, but instead, to achieve certain definable goals and, beyond that point, to ensure business does not interfere too much with the enjoyment of those goals."

Now don't get my wrong, I think it would be cool to be really rich. But not at the expense of the relationships with my wife, kids, or current freedom. I spent 9 years climbing the corporate ladder and had a good position with a good salary. The next step in my plan was a VP position which would lead to a C-level position. But ultimately what I found is the stress of those positions, the time requirement, and the sacrifices I was going to make just weren't worth it.

I quit my job and started my own consulting firm to create freedom in my life. Here is my current daily schedule - which I adjust daily as I need to fit into my lifestyle.

7:15 am - Wake up to alarm clock of "DAAAAADAAAA IT'S LIIIIGHT TIIIIIME!"
7:45 am - Get breakfast for the alarm clock and take a shower
8:15 am - Make coffee and lunch for Bubba
8:30 am - Catch up on my favorite blogs and/or take Bubba to preschool
9:15 am - Blog or grab breakfast or read news
10:00 am - Work on client projects (yes I start "work" about 10:00 am)
4:00 pm - Stop work to play with my alarm clock
4:05 pm - Play with Bubba, Chrystal, and Mianna for the rest of the day.

I say this not to brag or gloat but to say it's possible. We are not getting rich and sometimes money issues are stressful, but we (my family and I) live a good life and love it. We have more freedom (though not necessarily financial) than we have ever had. Join what Tim Ferris calls the NR and break the chain!

mail call...what's the scoop on SaaS solutions?

2008-05-01T11:01:00.000-07:00

I received an interesting email a while back from Carson Mehl at Lumiere Hotels.

"I am curious to know if you have heard of any robust hotel software being developed that is web-based. Our company has started using a number of web-based software solutions such as Google Docs and Basecamp by 37signals and they have been a huge asset as far as ease-of-use, collaborative ability, and no-need for extensive/expensive hardware. The great thing about web-based software is that it all operates inside the browser so it can be easily accessible from a number of devices."

Regrettably I was not able to point to any truly web-based solutions that I felt would meet the needs of a boutique hotel group. There are a few out there but none that I have extensive experience with or have been impressed with.

What Carson was really asking is why hasn't a hospitality technology vendor come up with some true SaaS applications that fulfills the requirements for a boutique hotel or resort location? For those that are not familiar with SaaS it means Software as a Service. Wikipedia defines it as "...a software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet. Customers do not pay for owning the software itself but rather for using it. They use it through an API accessible over the Web and often written using Web Services or REST."

In our email conversation Carson was good enough to expand to what hoteliers are looking for...

"...The newest evolution of internet browsers and runtimes like Adobe AIR are really opening up the possibilities for rich internet applications. Applications like Google docs, basecamp, ZOHO, buzzword (my fav), even Facebook that are stored in the cloud and accessible from anywhere, offer such an advantage. The ease of collaboration they provide is alone and tremendous improvement on traditional software not to mention the accessibility factor, ease-of-use, elegant design, and simple hardware requirements. I do not have super-deep ranging experience with hotel software, but what I have used is far short of what is possible today.

From an hotelier’s point of view, I see a demand for a well designed software platform that is easy to use and is far reaching ie: pos, pms, booking, web-booking, reporting, etc. What is currently available in this regard is very expensive and complicated from both a hardware and software standpoint. The existing platforms work well for companies with deep pockets, IT experts and central reservation departments...

I guess the dream software would provide seamless connection between web reservations, pms, and the gds. It would allow an administrator to provide different levels of access to employees. It would automatically create and update guest profiles. It would show activity feeds for a property (similar to a facebook newsfeed, but showing reservations made on the web, pms, or gds, and more). It would be dead simple to use. It would look elegant. Training would be obvious and intuitive. It would be a subscription based service or maybe annually licensed. The system would be complete so there wouldn’t be any interfacing problems between disparate types of software. All the data is indexed and searchable. Reports are automatically generated and distributed. Data is backed up securely. The software works in multiple languages. Software updates are seamless, because it is web based. Housekeeping could carry around a tablet pc or iPod touch and update their room list. Guests could check out from their tv or laptop. The list goes on and on. It may seem like a pipe dream, but I think it is a possibility especially as we are reaching the age of ubiquitous internet connectivity.

From a software company stand point I think there is demand for such a service. It might be a long long time before a large hotel company would make the switch but there are so many independent and small hotels for which this service would be a blessing. In addition, if the service was successful the access to data would be invaluable."

I thought the question was a good one and the desires well stated. So the question stands to why are there not more SaaS applications for hotel/resorts?

In my experience the main reason has been a data access issue. For pure web based applications the data is held (and often owned) by the vendor. Data security standards and PCI regulations make it difficult for vendors to effectively and affordably deliver on the needs of a hotel/resort. PMS, POS, and GDS solutions are generally considered mission critical to the business. If you don't have immediate access to the data then you cannot run your business successfully which often means inconveniencing the guest. And unless a company like Google with an almost infinite budget for infrastructure redundancy and fail-over brings a solution to the table the costs of effectively delivering a solution like this appears to be too high for a start-up looking at what is really a limited market (unless some of the larger brands like Hyatt, Hilton, and Marriott joined in).

Ultimately I hope I'm wrong because I believe we need this. A corollary could be made to what people thought about CRM solutions until Salesforce.com rocketed to uber-status of success and took over that space as the darling of the market.

If you know of a SaaS POS, PMS, GDS or other hospitality technology solution leave a comment as I'd be interested to find out more about them. Or if you have other thoughts on this topic post a comment and share your wisdom.

confidence and humility are not mutually exclusive

2008-04-30T09:35:00.000-07:00

In the last week of my full-time employment a co-worker (and former consultant) told me she thought I would find consulting harder than I expected. I didn't know her very well but I knew her well enough to know she was referring to the selling side of consulting, and I could tell by the way she said it she didn't think I had the "selling side" in me.

I told her I agreed that most consultants struggle with the selling side of the job, mainly because you are selling "you". What you personally bring to the table is all there is to sell, and part of what you bring to the table is confidence. But many consultants struggle with the concept that confidence and humility are not mutually exclusive. The opposite of humility is not confidence but rather cockiness. Cocky consultants are annoying, irritating, and often difficult to do business with.

When I talk with any customer I know I bring confidence to the discussion. Confidence that I know what needs to be done or that I don't.

Cocky consultants always know the answer, regardless if they really do. Confident consultants are humble enough to know when they don't know the answer, but instill confidence they can find it.

She was right that I'm not naturally a sales person. I have friends who are and they could convince you to buy the dirt off your own floor. As a consultant that is not the type of sales person you want to be. You want to be an evangelist.

If you are selling on the basis that you offer a service you're selling on cockiness: "Buy me because I'm here." You should be selling on the basis of a business problem that you personally can help solve: "Buy me because you have this problem and I have experience and knowledge to offer multiple solutions on solving that problem."

Seth Godin had a great post today on Self Promotion that spurred this thought. Thanks Seth!

the most important decision as a consultant

2008-04-26T16:28:00.000-07:00

The number of decisions you have to make when starting your own consulting business are numerous. Decisions like choosing your niche, how much you charge, where you will spend money are all important. But one of the lesser discussed but possibly most important decisions is what business will you NOT take.

I have found this to be the most difficult decision because knowing when the next job will be is usually unknown. You are always in need of the money (lets be honest here), but every opportunity that comes your way has the potential to grow or limit your business (read income).

will the contract increase your specific skill or expertise that makes you valuable?
will the contract lead to on-going future business with a client?
how sure are you that the project will end successfully?
how likely is it that the potential client will provide you with a good reference?
is the potential client the type that would recommend your services without request?

These are all important questions to ask when deciding what kind of projects you do or do NOT take. But I'm going to focus on one question where many consultants make the wrong decision.

Will the client pay you what you are asking?

This is an important question because it brings up two equally important questions. First, how much are you worth? And second, what type of personal life do you want?

The temptation to take a contract at a reduced pay is great, especially when the pipeline is small. But one of the most important decisions you will make is sticking to your guns and turning business away. Consultants are generally willing to take these jobs because they come with a promise of lots of work or because of nervousness that nothing else will come along.

But if you take a contract for either of these two reasons you are both decreasing your perceived value to current and future clients and sacrificing your lifestyle. You should be confident that you are worth your rate and your current and potential clients must see that. Taking a contract for a lower fee says that you believe you are not worth your stated rate. And if you do not believe you are worth your fee then you should not be charging that fee.

The second reason you should not accept a reduced fee is based on simple math. Let's say your normal fee is $100 per hour (just to pick a round number). If you take a 20% fee reduction at $80 per hour then you have to work more hours and harder to make up the difference.

Most likely you have a revenue goal for your company (if you don't it's time to get one). The more projects you take at a decreased rate the more you have to work to achieve that rate.

If you are still not convinced then look at it this way. Let's say your goal is to bill 30 hours per week at $100 per hour with four weeks of vacation. That means there are 48 billable weeks in the year. This is pretty aggressive goal if you are just starting out.

48 weeks x 30 hours x $100 = $144,000

NOTE: $144,000 may look like a lot (or may not), but when you factor in taxes and business expenses your take home quickly begins to fall.

If you take a 12 week contract at your 20% fee reduction there are only 36 weeks left in your "goal year".

12 week x 30 hours x $80 = $28,800
36 weeks x 30 hours x $100 = $108,000

Now your total revenue is $136,800. In order to make up the difference of $7200 to meet your goal you have to work 72 hours at your $100 rate. That equates to 2.5 weeks of work which leaves you with 1.5 weeks of vacation time.

But the better scenario is that you would only need to work 45.5 weeks at your normal rate to achieve the $136,800 revenue number. This means that you either have 2.5 more weeks of vacation time (imagine a job with 6.5 weeks of vacation), 2.5 more weeks to market and build the business, 2.5 weeks to blog and share your knowledge, or 2.5 weeks to try and find a small contract at your $100 per hour rate.

Be worth what you say you are worth. It will be better for you in the long run and you'll do business with the type of customers you want.

best-of-breed or one-stop-shop...what's best for me

2008-04-24T15:30:00.000-07:00

For many this debate is a philosophical versus empirical one, but it is worth a discussion I think. It is almost impossible to set aside the philosophical side of the debate (i.e. those that ~~hate~~ strongly dislike big business), but I'm going to do my best based on my experiential side of the debate. In starting this post off lets take a moment and clarify what we are talking about.

best-of-breed
"Best-of-breed" vendors generally provide one or two technology solutions. They are 100% focused on these products and are thus considered to have more expertise in the needs of their customer (a debatable concept). Generally they are also considered to be more agile because of this focus (or so they say), allowing them to respond to development requests in a shorter time frame or at least with a more predictable software release schedule.

one-stop-shop (aka integrated systems)
(Pretty self explanatory I think) The Wal-Mart of technology vendors. They can fulfill most of your major technology needs and some of your minor ones as well (or so they claim). Generally they are very large organizations that offer products to a wide range of verti cal markets. For this reason they are considered to have less knowledge of your specific operation (a debatable concept). Their release schedules tend to be further apart, but they also tend to perform custom work more willingly (possibly because of a larger resource pool) (also a debatable concept).Now that we are all on the same page lets talk about how to sort through the question, "What's best for me?" First, for the purposes of your time and my own sanity I'm not going to attempt to categorize all the vendors for every technology solution. It's almost impossible given the new companies that pop up semi-regularly and more importantly with the disappearing act by many of the formerly named best-of-breeds recently gobbled up by the one-stop-shops. And that quickly then brings me to the point...best-of-breed or one-stop-shop labels are a useless and very stupid business requirement when selecting your technology solution. It might have been a semi-meaningful requirement five years ago (of even two years ago), but not anymore.

Now, I'd like to just end here and have you believe me because I say so...but the probability is some of you reading this are staunch believers that best-of-breed or one-stop-shop is an important requirement when selecting a technology vendor. The rest of this post is dedicated to you. If you agree with me I'd love you to post a comment on what experience led you to the same conclusion. Below are some of points based on my experience, and why they are pointless when made as general statements.

ease of integration
This is one of the biggest points in the debate, and is often touted by the one-stop-shop as a major reason to chose them. But before you buy look closer, talk to existing customers, and make sure that this is really true. As with anything in technology your plug-and-play solution may leave you hanging. At face value it seems logical.

A single company can get their products to interface and integrate easier/better than different companies.

But changes in technology, the ever shifting product road map, and the acquisition engine proves in reality they ~~most likely~~ are not so integrated.

Most one-stop-shops did not start development of their products at the same time, which can mean the technology platform between the solutions is different (sometimes drastically). This can lead to some interface challenges that are often only overcome with limitations (and you end up with multiple technology platforms). The number of products gained through acquisition and the time frame of those acquisitions is also a good identifier for how seamlessly integrated a one-stop-shop is. My experience has led to the conclusion that the integration capabilities post acquisition is about the same as when they were different companies. Existing customers have lived with the limitations before the acquisition for years, so it is easy for a vendor to rationalize not making it a priority to enhance integration.

The willingness of one-stop-shops to work with other vendors is also a point to consider here. Where generally best-of-breed vendors thrive off partnerships with other vendors, the one-stop-shop may create integration road blocks. After all, it is in their best interest for you to purchase all of their products.

Now in fairness to the one-stop-shop I suppose I also need to point out that best-of-breed vendors also make this claim by touting their agility to enhance the product quickly. In some cases this is probably true. But do not be easily mislead. As a customer you want to be wary of this promise, because if it is being made to you it is also being made to someone else. You want a vendor that has a well established software development life cycle (SDLC) so they already (or at least should) have the next two to three versions of the product planned out. First, this means that new development probably cannot make it into the next scheduled version. Second, it means that your requested enhancement can easily be trumped by promises to the next customer. The temptation for best-of-breeds to "follow the money" is often too tempting and promises become easy to break.

Rather than basing your decision on claims to ease of integration do your research to document your requirements with order of priority. Select a technology solution based on your clearly defined and documented integration requirements versus claims to ease of integration.

small size = better relationship
I'm going to pick on best-of-breed vendors here. One of the claims made by best-of-breed vendors is their smaller size lends to a better vendor-client relationship. They claim to support their product(s) better and establish better relationships with their customers because of their size. Who made the rule that to be nice to work with you have to be small? In my experience a good vendor relationship is grounded in the type of people versus the size of the company.

As a side note it is too easy when choosing a technology solution to let your sales person do all the selling. And that seems logical...but your sales person is not who you will be talking to on a daily basis. You should be meeting with the group of people you will be working with regularly. If you will be assigned an account manager then meet that person. You should also speak with installation, support, and the person that handles billing disputes. Interview them because how they respond will give you a very good idea of what it will be like to be a customer. This group will often not have the skill or desire to "sell you", so they will act just how they act every day.

Nice dinners and golf outings are great, but I bet you would give that up for a support team that is knowledgeable on the product and a finance team that is pleasant to work with. Select a vendor based on their reputation in the industry and the people that you meet, not on the assumption because they are smaller they will be better to work with.

single support entity (aka one person to yell at)
The "one person to yell at" claim is generally made by one-stop-shops and it has some validity. It can be very useful to have a single point of contact for resolving problems with your technology solutions. But this is only a reasonable point if the vendor is responsive and helpful when you yell. If you already read the comments under ease of integration and small size - better relationship you should foresee the coming point.

Having multiple vendors that are very helpful and nice to do business with will always be better than a single vendor that is difficult to do business with. Base your technology decision on who you believe will offer the better support not based on the number of 800 numbers you have to tape by the phone.

in your back yard
This is one of those funny requirements that venues seem to think is a great benefit when choosing a technology vendor, and that technology vendors tout as a major benefit to the venue.

If the vendor's corporate office is close they will be more helpful and technical support staff will be available to swing by your property on a regular basis!

Unfortunately this is usually not accurate whether your vendor is a best-of-breed or one-stop-shop. If you yell loud enough and long enough they will send someone, but that is true if you are around the corner or across the country.

The vendor is not staffed to be at your beacon call and you will often get the freest resource (read least experienced) when you do need someone. If there is a big enough problem they will send someone regardless of where you are. In my experience your vendor's proximity to your physical location has very little to do with the quality of support you will receive.

Additionally, as a venue be wary of the in my backyard vendor. You have expectations but so will your vendor. You're site will become a frequent stop for sales calls, sales meetings, prospective customers, prospective partners, and bleeding edge technology solutions.

In summary if you choose to do business with a technology vendor because they refer to themselves as best-of-breed or one-stop-shop you will stand to be disappointed at some point in the future. It is naive to assume that your best-of-breed company is not looking to expand their product suite through "build it' or "buy it" plans. Even more likely your best-of-breed company is continuously being courted by one-stop-shops and will eventually marry for money (a poor relationship foundation by the way...in life and business). But for many that is goal. Build a company so that it is attractive enough to a potential suitor to sell and retire in the Caymans? Can you really blame the owner(s) for doing what almost every entrepreneur dreams of doing? I think not, so stop treating your vendors as if they were different than any other company with a different goal than your company. And for the one-stop-shop vendor the reality is they are generally not quite as seamlessly integrated as they proclaim.

The bottom line is hospitality venues did not coin the terms best-of-breed or one-stop-shop. They are terms creating by the vendor's marketing departments and ultimately should have little bearing on your technology decision.

Comment if you agree or disagree, I would love to hear from you. And as always, if you'd like to find out more about kevin sturm Consulting please visit my website or email me.

Pictures courtesy of DWQ, Crawfishpie, Dzwjedziak, Extra Medium, katiebate

the negative value of negotiated services

2008-04-17T16:27:00.000-07:00

Normally I spend Thursday writing a post for htms, but today I spent it speaking at Santa Barbara Culinary School. I got to speak for a short while to the next group of leaders in the hospitality industry, which is always really rewarding. It was a great event hosted by the HFTP CA Central Coast Chapter, AND we had a great luncheon speaker in Bob Hazard (former CEO of Choice Hotels). I hadn't even looked at who the lunch speaker was so I was stoked to have such a huge name in hospitality. I also found out he is now the CEO of Birnam Wood Country Club just down the way. So COOL...

Anyway, since I was not able to spend much time writing I thought I'd shoot a quickie out about negative negotiation. If you're in the middle of purchasing a technology solution, or planning on it, it is likely that you have spent some time negotiating price with your vendor. If you are not, or have not planned to negotiate price you will probably pay more than you need to. Vendors expect price negotiation to occur and for that reason generally have decided on what pre-valued discount they will offer before they even meet with you. So negotiate away. But, there are areas of your purchase you should negotiate price and those you should not.

DO negotiate on hardware costs
Your prospective vendor has a price point for their hardware product(s). If a customer buys it at full price then they make great margin. But they expect that you will negotiate the price, and you should. Hardware is a fixed deliverable. You get the same hardware whether you get 0% discount or 50% discount. So negotiate and get a great deal. As a side note, end of quarter and end of year are great times to negotiate price with your vendor because they are pushing to meet quarter or year-end revenue goals.DO negotiate on software licensing
In the same vein your vendor has a price point for software licenses. Regardless of how much you pay for that software you get the same thing. If you negotiate a great price then you get a great price but the same product...great for you. The quarter and year-end purchase applies here as well.

DO NOT negotiate on services
I see this time and time again with customers where the quantity of services or total dollar value of services was negotiated down. DO NOT negotiate on services, because the old adage "You get what you pay for." applies here. Your sales person may try to make services the first place they negotiate on your order, and ultimately you don't think you care...but you should and you do. Often a sales person tries to cut services first because they are commissioned less or not at all on services revenue. Discounting hardware and software lowers their personal income, so discounting on services means they might not take an income hit. But discounting services will have a huge affect on your project!

The concept is simple really. In my experience almost every vendor quotes services accurately to what they believe it will take to do the project successfully. Services numbers are usually made up by the services group. Discounting or lowering this number may get you a lower price point, but it also means that the services group is doing the project for less than they think it will take. So you get one of two outcomes. One, you get a Change Order Request from the project manager after work has begun and pay the higher amount anyway. Or two, you get less or often poor service leading to struggles in the implementation and support of your technology solution.

Comment if you have a story on how discounting services hurt your project. I would love to hear from you. I'd also like to hear from you if you think I'm wrong. And as always, if you'd like to find out more about kevin sturm Consulting please visit my website or email me.

the pending death of "pay-as-you-surf" internet

2008-04-10T15:47:00.000-07:00

FREE or pay-as-you-surf Internet in hotel rooms is a hot topic in hospitality conversations right now. So like any good sheep I'll follow and give my two cents. If you read this blog regularly you know I'm a big fan of FREE Internet. I believe with an unwavering constitution that Internet in your hotel room should be FREE (read this post to understand my stance). It's my technologically advanced right! I deserve FREE Internet! I HATE paying $9.99 when I want to get online...but I'd happily pay $15 to not care if I was paying $9.99.

I've had dozens of conversations about this topic, and inevitably there is someone making it out to be a complex issue that has many different factors contributing to if a hotel provides FREE Internet. I hear them, but to them I say Bologna! (pronounced ba-low-nee for those who speak no French) Lines have been drawn and there are three camps when it comes to "how should a hotel recoup costs for providing web access to customers".camp #1: the money-grubbers
I think that title says who this camp is. This camp believes vehemently that Internet access is not an inclusive service and should cost extra. They love the additional revenue pay-as-you-surf supposedly proves to generate and are not willing to discuss the possible or plausible revenue benefits of inclusive pricing and better customer satisfaction. This camp should be forced to pack up their tents one week per month and work from hotels that do not offer free Internet. Or, everyone in this camp should be forced to pay for Internet access by the day, hour, and minute at their normal work place and then be forced to submit justification with the receipt on what they accomplished during those charged Internet hours. Or, forced to pay for it out of pocket like the thousands of entrepreneurs who don't get to "expense" Internet access and feel nickle-and-dimed by the pay-as-you-surf camp.

camp #2: the corner drug dealers
This camp is like the corner speed dealer getting a casual user hooked. Stay at our hotel and we'll give you crappy casual speed for free. If you want to have web conference calls, host a webinar, give a demo, perform remote actions on a system via remote control software, or let your kids play games you have to buy the "good speed". The good speed is expensive, and they know you will always generally feel the need for speed. And once you get the good speed you can't really go back to the free speed...and they know it. This camp should be forced to perform their normal daily business functions for an extended period of time on the "free speed". And then smacked with a purse when they ask for good speed. This is also the camp that uses soft word rhetoric in calling themselves peace makers and collaborators by giving us a choice. "If you are a casual user then you get it free." In my world there is no casual Internet use, and my world generally doesn't include streaming video or online gaming. But as iTunes, Hulu, and ModernFeed become mainstream and talking with clients via Skype is normal, that is the casual user and then the corner drug dealer forces me to pay for speed.

camp #3: camp of the free, web surfing rave
This is the camp that wants all the speed FREE. If all you have is slow speed then I want that FREE, but if you have high speed i want that FREE, too! It is my Larry G. Roberts given right to have it FREE. This I believe is the largest camp, of which i am a card carrying member. Give me FREE or I'll give you pay-as-you-surf Internet death!

And that then leads me to the real point of this post. Unless something changes pay-as-you-surf hotel Internet will go the way of pay-as-you-talk hotel phones. Phone calls used to be a pretty good money maker for hotels. X dollars per call and then charges per minute. If you traveled regularly on business your hotel phone bill was hefty. First came the invention of 1-800 calling cards, so then hotels started to charge for the 1-800 calls and local calls to make up for lost revenue. Then came the mobile phone. Reception made it hard to only use mobile phones, so hotels still invested heavily in PBX infrastructure. But hotels quickly found their phone investment would never pay for itself because mobile phones became business phones and free VOIP via computer came about (i.e. Skype) and hotel phones are now a required convenience to call the front desk. Phones are now just a cost of doing business. Internet access is a requirement for doing business (both personal business and business business).

I've heard a few technology executives from some hotel and vendor companies say that satellite Internet will never be fast enough to meet the demands of the consumer. They may be right and probably are, but what I can promise is that if it doesn't meet the requirement someone will invent something that will. Being fixed to a specific location for highly capable wireless high speed Internet access will be a thing of the past in 5 years (maybe less). Internet access is already at the milestone hotel phones reached with the introduction of the early mobile phone where "good enough" is already applying. I'm paying for this cellular based wireless service and it is fast enough to do what I need, and it's FREE. Note it's not really FREE, I just already paid for it. So why would I pay $9.99 to use your Internet. Especially if I can't expense it. But if your Internet was already included in my room rate then it is FREE and I'd have the choice to use it or my Internet. And if I chose your Internet then you get to ask me who I am...bonus for the hotel.

I believe we are at cross-roads for hoteliers. Pay-as-you-surf Internet will go the way of the pay-as-you-talk phone and for many hotels, especially those without wireless. Infrastructure costs will either be sunk or take much longer to pay off as the hard decision is made on how to off-set those costs. It is time to make the decision that Internet should be FREE. If you cannot figure out a way to provide it FREE then I'll use my own and stop paying for yours altogether!

Photos curteousy of dana 2, miss rouge, rightee, and TheAlieness GiselaGiardino²³

the attractive but un-sexy side of BI

2008-04-08T21:34:00.000-07:00

I had a wonderful opportunity recently to join some very smart colleagues on a BI (Business Intelligence) panel presentation. I first need to thank Jon Inge for inviting me to be on the panel and for being an advocate for the un-sexy side of BI. Second I need to thank Rick Heuer, Geert Mol, and Clive Perry-Core who were on the panel with me. I learned a ton about CRM BI from Rick and Geert, and Clive has more hands-on experience to the nuts and bolts of BI than anyone I've ever met. It ended up as more of a round-table discussion than a panel really, but it was great for my own learning opportunities that way.

In his opening Jon referenced a great article from the Wall Street Journal on "Knowledge Management" which is largely what BI is all about. (Which I was bummed to not find on the web and provide as a link to all of you. If you find it give me the link in a comment.) The opportunity benefit of BI is to effectively act on meaningful information about your business...or more briefly put knowledge management.

During the introduction of the panel each panelists described how they worked in BI. During this brief introduction I came to the sad realization that I specialize in "un-sexy" BI. The "sexy" side of BI is in CRM and marketing. Their personal introductions were exciting and I'm sure led to everyone dreaming about a hotel knowing you when you walk in the door, welcome you by name, hand you your favorite margarita, quickly tele-port you to your room with pre-set temperature and lighting preferences, and have music playing based on your perceived mood and core body temperature. It is what you read about in press releases from the big brands in the industry where they know everything about what the customer prefers. The summation is Know your guest and achieve total patron value! Increase revenue through understanding your guest's preferences and market directly to them! Sexy No? (to be said in a French accent)

For the record I totally agree it is way more fun to talk and dream about the benefits of BI with CRM. But the reality is the ROI and TCO for BI with CRM is harder to quantify (I tried hard to get a fifth acronym in that sentence but I couldn't find one that made sense. Though I digress). It is not impossible to quantify, just harder. Before I jump into the "attractive but un-sexy" side of BI I think it is important to lay some foundation. First let's take a shot at defining TCO. Total Cost of Ownership (TCO) is the total investment capitol put into the technology solution over a specified period of time. Return on Investment (ROI) is the duration it takes for decrease in costs and/or increase in revenues to surpass the overall investment (or TCO). To put simply, save or make more money than what you spent within a specific time period. The measure of any good technology solution should be create cheaper, faster, and better operations than what you do now. The general problem with proving the ROI of BI with CRM is the generalizations that take place into why certain customer preferences exist and under what specific set of circumstances. It is the accurate capture of circumstances that really creates the challenge. It is difficult (not impossible) to tie a decrease in cost or more likely and increase in revenue to a specific preference or area of guest behavior being influenced by an almost infinite number of inputs (aka circumstances) that lead to a specific action (for more thoughts on this see when CRM will achieve its potential).

So if BI with CRM and market data is "sexy" then the operational analysis side is really the "un-sexy". Note that both are attractive, but the former is far more attractive than the latter.

The un-sexy side is the analysis of your operational systems data in order to decrease costs and increase revenues (yawn). I'll define operational systems as Property Management System (PMS), Point of Sale (POS), inventory management, time and attendance, service optimization, and other solutions implemented to manage the operations of a venue. See, I'm only two sentences into the "un-sexy" and you're mind is already wandering...hmmm..what should I have for lunch today...

But, when this data is captured in a meaningful way and linked to other external data elements (i.e. weather, currency exchange rate, website click through, etc.) the value proposition of BI becomes very attractive. I'm going to say "becomes" attractive because generally the first thing that a BI system shows you is how poorly your systems are currently setup to capture meaningful data. You will need to spend at least three to six months cleaning up configuration elements of your existing system(s) before BI will begin to have analytical payoff. The correlation can be made that it's like exercise for your technology solutions. You may hate the process but you'll like the results. I'll cover some thoughts on the steps to a successful BI installation in a future post. But for those in need of immediate gratification Jon Inge wrote a great article in this months Hospitality Upgrade (it's free by the way...so subscribe) entitled Demystifying Business Intelligence. You can download the article here from Jon's website.

As an exercise in brain storming here are a few examples of how to both define and achieve ROI for your BI solution. I am making a HUGE assumption here that you already have some meaningful KPI's identified for your business and that you can apply them accordingly. If you have not, first go read Jon's article.

the pms story
A key metric for any hotel/resort is RevPAR (revenue per available room). The value of this KPI becomes more valuable over time as you compare it against historical data. It is one of the measures used for how to price a room and it's amenities. Some PMS systems will give you this number over a specified date range and may let you compare it to one other range. Or you can run multiple ranges and do the comparison yourself by entering the information into a spreadsheet. But, what if rather than just looking at previous RevPAR numbers you were able to review historical RevPAR numbers with the corresponding temperature/weather and current exchange rates with selected currencies over multiple selected date ranges. Then what if that information could be plotted graphically for you giving you some solid predictive analytics on what room rate would give you the best RevPAR based on matching factors from a historical period. The ROI benefit in this example is actually achieved in more than just the revenue opportunities. It can also be achieved in the "improved costs" column by spending fewer hours entering information into spreadsheets.

the pos story
The POS story I think is one often left behind, but it is one near-and-dear to my heart. Your POS (and PMS) system holds real data about customers that they pay you to keep so you can know more about them. How wonderful is that?! Grocery stores have the POS BI story down...it's a science of revenue for them. Hotels, resorts, and other venues should be watching and learning from their successes and their mistakes. As a quick story lets meander into a world where all your POS data means something (meaning versus what you have now). It means what do your customers like, what do they not like, and what should they like but just are not finding and buying. By "should they like" I'm referring to placement, description of the item, presentation on the plate, verbal marketing, and price. BI with POS allows a manager or chef to aggregate and compare data for items that are selling well to items that are not selling well, and possibly against the day of the week, time of the day, and temperature outside.

the inventory management story
You get an even better story if you tie POS to Inventory Management and look at actual cost versus selling price data. A manager can run pricing strategies and get concrete data back on how well or poorly it worked. For example, take your top 10 selling entree items and increase the price of each of them by 5%. If you have historical price and cost for those items for the previous three months you should have food costs, theoretical and actual yields, margin, and profit for those items. Track on a weekly basis for three months how the 5% price increase affects each of those performance monitors and you begin to understand exactly how much items should be priced for in order to achieve minimum food costs, maximum margins, and maximum profits. You may tell me you can do this now, but I'm going to tell you only with a small troop of analysts and well massaged data.

the employee performance story
Wouldn't it be great to have a better understanding of what made great employees great, good employees good, and poor employees...well...suck? I'm sure you can tell me about personal drive and character and customer relation skills and I'll agree with you. But what if you could see metrics about employees like how many more transactions they perform, or how efficient they are in certain work areas, or why they are always able to predict what needs to be done before it needs to be done (okay...that one may be harder to figure out). Again, manufacturing plants have been dong this for years...we just have to catch up and figure out how to make it work for hospitality A BI solution should have all the data points where an employee enters information into your technology solutions, and that transaction is tied to an employee ID. Employee ID is often the ONLY common thread among disparate technology solutions so this specific area can be one of the easiest to achieve. The benefit of seeing performance information on your performance range of employees is to spot operational efficiencies that great employees implement and then work to train those into the rest of the staff.

If you are shaking your head at me saying, "Employees won't do it even if I show them how to be better", then I'm going to tell you that you have bigger problems. Employees suck either because of lack of education or apathy. BI can help you fix the education part and then you can help yourself and fire the apathy part.

the staff management story
The last story we'll weave is the magic tricks around staff management. I never ceased to be amazed at the creative processes that I find managers and client venues using to estimate staffing requirements and build employee schedules. It is an artful guessing game made more accurate after years of experience and some trial and error. But if you have employees entering information for time and attendance (if you pay people you have this I think), and you have historical revenue information (for a specific day of the year possibly for multiple years), and you have employee performance detail (for example revenue per hour) for a "good" employee then you could have the best staff management procedures on the planet based on BI data and predictive modeling. Bringing this information together into a BI solution gives you forecasted revenue expectations with forecasted costs for which you can then effectively manage your schedule and get maximum revenue potential at minimum cost from your staff. I have a dream....

See, you find it attractive...admit it. But (yawn) sooo un-sexy. Who wants to talk about boring operational efficiency metrics to executive management so you can purchase a BI solution? I hope you.

I would love to hear from you if you have other great examples of ways you achieved the ROI of your BI solution. I'd also like to hear from you if you think mine are ridiculous. And as always, if you'd like to find out more about kevin sturm Consulting please visit my website or email me.

my reason for lagging on posts

2008-04-08T09:22:00.000-07:00

I have been seriously lagging on getting weekly content to htms in the past two weeks, but I have a pretty good reason. That reason is this picture. Yesterday morning at 9:51 AM we welcomed her into the world. You can get the full story at k.sturm blog.Oh, and keep watching because there are some good topics pending in the coming weeks.

proving me wrong, proving me right

2008-03-21T09:30:00.000-07:00

There was an interesting post today on HOTELS that is a good follow up to my post what technology do you expect from your hotel?. Hotel Sax Chicago, apparently dubbed "Hotel Microsoft" (who knew?), has unveiled some current and future technologies from Xbox ready rooms to an entertainment lounge to in-room touch screens that control lighting and temperature.

As I was reading the article I was rethinking my statement that hotels cannot expect to implement better technology than the customer has at home. After all, I don't have an Xbox (or any other video game unit) and most of the frequent travelers I know don't either. I also don't have touch screens to control my home amenities and probably won't for a foreseeable future. Hotel Sax Chicago will most likely have better technology than almost any guest, and their point is they will draw guests because of it (or they hope).

But the reality is the in-room touch screens are only in the presidential suites and more of the hotel's rooms have normal technology for a starting rate of $450/night.When at some point in the future the cost of the "marketing technology" becomes affordable enough to retrofit into every hotel room it will be affordable enough that the clients that pay to stay at Hotel Sax will have it in their own house.

Really what Hotel Sax is doing is marketing. Having these rooms is a marketing technique, and a good one, but really is not an initiative to provide every customer with a technology experience they cannot get at home. And in proving me right the Chicago Tribune said, "...that's why Microsoft is in Hotel Sax -- to let people live with and get used to unfamiliar technology so that they'll want it in their homes."

This post is one of many about the technology at Hotel Sax. If you read the ones from hospitality sites you will find a regular comment....customers want basic amenities and service delivered very well before they want touch screens in the room.

hotel crm part II and permission marketing

2008-03-20T10:38:00.000-07:00

There is a great article on the relationship between hotel CRM, web 2.0/social networking, and permission marketing on eye for travel's website today. It is an interesting follow-up to my post when crm will acheive its potential as it talks directly to the danger of what type of data hotels are collecting, the validity of the data, and which preferences a hotel can and cannot use to market to customers.

This quote by Diane DeWindt, Director of Customer Insight, Starwood I think says it best, “Sending marketing communications based on guests personal preferences expressed during a stay is potentially dangerous – if a guest expresses a preference on-property, you must get that guest's permission to store those data, and for what use. The best thing to do both from a data privacy perspective and from a customer-service perspective is to give the guest a channel to explicitly tell you what they want, where, and how, and deliver for just that instance.”

The reality of a "customer opt-in" approach to hotel CRM (and many other markets) will completely change the way hotels market to their customers.

You can read the article here.

when crm will achieve its potential

2008-03-17T14:36:00.000-07:00

I was in the audience of a CIO panel discussion and finally heard a hotel CIO (Scott Gibson of Best Western) give the real truth on hotel CRM. It cannot currently be as useful as promised...at least not with current technology. I was disappointingly not able to get his exact words, but I believe that is what he meant.

Hotel CRM is valuable, desirable, and a reality. But the pie-in-the-sky story often told is not a reality under the current operational requirements for acquiring the data. Talk to any person responsible for aggregating all that data and doing something meaningful with it and the first thing they will tell you is how inaccurate it is (with the possible exception of CRM and BI vendors). Preferences are missing or based on what the system "thinks" preferences are. I heard a story from a Marriott GM where a guest asked why he kept getting a refrigerator in his room. It was because he ordered a refrigerator twice in one month while traveling with his family. Based on those two stays the CRM system updated his profile with refrigerator as a preference. image courtesy of Fergus McIver
A good portion of the guests address, phone, and email data is missing or inaccurate. If a guest does not want the hotel to have information then they don't give it or they provide bogus information. I won't go down the road of the calls hotels receive when an irate guest calls about an email receipt from his hotel stay sent to the email account he and his wife share (I hope you get the picture). Once a hotel does have the information it becomes the responsibility of the front desk staff to ensure it is accurate when a guest checks in, which has proven to be a generally unreliable method for collecting and perfecting data. There is also the problem of all the profiles that frequent travelers have to maintain and the multiple reservation mechanisms that exist (hotel's website, Orbitz, Hotwire, etc.). It's just not realistic to expect every brand and every venue to obtain and update this information accurately. CRM will continue to be at the top of the technology list for hotel executives, but it will continue to be a solution that has great potential.

As a side note I had a mentor that said, "Potential is just a French word for that's too bad". Rather CRM has opportunity which can be achieved when it gathers data based on a "customer opt-in approach". Dream with me for a moment...

What if when I arrive at the hotel my preferences are sent from my mobile device (let's say an iPhone just for fun) to the hotel PMS. Before arriving I tell my iPhone what information I want to share with the hotel. As I arrive I have the option to check into my room from my iPhone (or kiosk or front desk) and receive a message giving me my room number and directions on how to get to my room. I also receive "something" (barcode, security number, insert new technology) that allows me to use my iPhone to access my room. I'm offered a quick preferences and services review which I can bypass or complete. I go to my room where the temperature is preset (technology exists to set my home thermostat from my phone now) and my visual preferences (curtains open or curtains closed) and physical preferences (number of blankets, towels, and pillows) have been taken care of based on my reservation (remember I had the option to change those preferences at check in). If I'm traveling with my family I have the option to add mobile numbers that will also receive the "something" to access the room.

The "something" sent to my iPhone also allows me to pay for items at the restaurant, gift shop, and vending machines for the duration of my stay. If I add other mobile numbers I have the option to activate or reject charge privileges when I provide those number.

From this first interaction the hotel knows what time I entered the hotel, what time I got to the room, if I purchased something before I went to the room and possibly what transpired between all those times (if hotels want to activate elevator and hallway access with the "something" the guests travel path is also tracked). I told the hotel what information I wanted to share (name, phone number, email, address) which is always accurate because it's on my iPhone. There are probably some operational gaps in this scenario and the technology is further out than I would like, but CRM will only leave potential behind and grasp opportunity when data integrity it is driven directly by the "customer opt-in approach".

Kudos to Scott Gibson for having the vision and tenacity to tell it like it is at a technology conference.

compelling rhetoric about your resume

2008-03-17T11:33:00.000-07:00

A few months back I wrote a post about resume writing called care enough to be different. Today I read a post by Seth Godin that moves the ability to be unique and remarkable in your resume to a whole new level. His opinion is to be so bold as to not even have a resume.

Read his post here. It is worth your time to think about his thoughts.

remember the names

2008-03-16T23:06:00.000-07:00

I'm terrible at it. Absolutely horrible. When I meet someone it is almost for certain that 10 seconds later I can't remember their name. I know it is one of my worst traits and I hate it about myself.

Image provided by ArstySF

It is important to remember someone's name for many reasons, but I think the most important is because it shows you care.

As I was trying to find a parking place at Church today I saw my new friend Dave. I rolled the window down to say hello. He came over and said, "Hey Kevin," and then looked in the back and said "Hey Brody, gimme five." Dave had never met my son Brody. He had heard about him during a recent ski trip we both went on, but never met him. He cared enough to not only remember my name but to remember Brody's name. He knew Brody was really important to me and it showed that he cared about that. I immediately felt like I was important to Dave...which made me feel great.

Caring like this translates well into the world of consulting. Consultants are contracted based on experience, knowledge, and skills. But most likely your experience, knowledge, and skills are not completely unique. The client can hire someone else. If experience, knowledge, and skills are equal then what makes you different?

Caring about the success of the project is paramount. But when the project is finished and over, I think it is caring about the people you interacted with that brings additional projects to the table.

what technology do you expect from your hotel?

2008-03-14T18:57:00.000-07:00

I attended the HOT and Green Hospitality Conference this week and was surprised at a statement that was made regularly in the presentations about technology in the hotel room (TV, TV stations, Internet, etc.).

"Guests expect the hotel in-room technology to be as good or better than what they have at home."

I agree this is the way it used to be. It may even be true for some of the current guests from a higher age demographic (over 60). But based on my experience the hotel industry is catering to the 25 to 55 crowd, and the chance that it will have better technology than what that traveler has at home is slim...most likely none. The general population is more affluent and technologically advanced than ever before and will continue to be (even with our pending recession). The reality is many households already have a flat screen 32" TV (or bigger) and maybe an LCD flat panel. They have home theater with surround sound. They have a DVR. They have over 100 channels. They have a iPod docking station or component cables that connect their iPod to their surround sound. They have wireless Internet on 802.11b if not 802.11g and hard connect rates of 6Mbps to 30Mbps. When at home they check email, download from iTunes, listen to music, and watch TV (sometimes all at the same time).

For many (at least me) when they do stay in a hotel that has a cool new technology the first action after arriving home is to go buy one of equal or better quality (welcome to GenX and GenY). After all, if you can't keep up with a hotel you sure are not keeping up with the Jones. ;-)

But again and again I heard this statement and how hard it was to manage this problem. I have a solution...stop trying to manage the problem. It should not be a problem because hotels are not going to be able to surpass home technology in the room anymore. And besides, when I travel is it really an iPod docking station with movie surround sound that I want? No.

I think a good question is "What do you expect from your hotel?" For some the answer may be better technology, but the majority want something else.

As a self proclaimed technology evangelist here are the top 10 things I would like from my hotel room.

power outlets...lots of them
I want power...all over the place. I want four outlets next to the bed with at least two available for me. Oh, and they can't be in the lamp because sometimes my power supply won't fit (with the possible exception of on the top of the lamp base). I want four available outlets at the desk, and not so far under the desk that I have to be on my hands and knees to get to it. Better yet, stick a surge protector at the desk so my equipment is protected as well. I want absolute power...but absolute access to power will do.

FREE wireless Internet
Please give me FREE wireless Internet. This is quite possibly my biggest pet peeve when staying at a hotel. I get this feeling the hotel is yelling at me, "WE WILL MAKE YOU PAY!" I understand the plight of hotels that wireless Internet is expensive, especially if you already ran CAT5 to every room. But, I don't literally mean I want it free. I just want it included in my nightly rate. The perceived value of FREE cannot be understated. FREE Internet makes me feel like I'm getting something free even though I'm paying for it as a room rate. It makes me feel valued and that the hotel understands my desires. If you can't give me FREE wireless Internet then at least give me FREE Internet. Oh, and in that case I want a 20 foot CAT5 cable so I can wander all over the room (this was actually provided by Adam's Mark this week). The speed of the Internet is really lesser of an issue than getting it FREE. (I'll cover that topic in a post in the near future.)

a remote control that works
I want a TV remote control that works. It needs to work when I hit the power button, when I hit the volume button, and when I hit the channel button. I should not have to point it at crazy angles to turn the TV off and on. It should work exactly like my universal remote at home, which is a basic remote but it works every time.

let me see the TV
I want to see the TV from the bed or the desk. If Chrystal is traveling with me then I want her to be able see it from the bed and me from the desk. The room should be arranged so I don't have to drag the desk over in order to work and watch ESPN at the same time.

good lighting
I want to see at the desk and see in the bathroom. The switch to more energy efficient lighting is awesome and I'm all for it. But if it means my wife has to turn on every light in the room while standing near the window in the morning to put on her makeup then we have kind of defeated the point. Give me good lighting in those two areas and I'm happy...so is Chrystal.

iron and ironing board
What's with the new trend of having to ask to have an iron and ironing board delivered to the room? I want and need an iron, and it is usually at the last minute. If I have to wait 10 minutes for it to be delivered then I'm late for my meeting. "I thought I had an iron" is worse than "The dog ate my homework."

odor free room
I do not want my room to smell like an ash tray, a restaurant kitchen, my high school locker room, or an industrial cleaning product. I want an odor free room. It should smell like a clean room (read no smells).

hot water
I want hot water. Not "hot enough" water, but real hot water. I like to take a really hot shower so I want really hot water. And while I'm on that I want the same water pressure I have at home. I have flow control faucets but I still get enough water pressure to enjoy it.

room to room privacy
I don't want to hear what the guest in the next room is watching on TV or what deal he is trying to close on the speaker phone. I don't care and it invades my privacy. I expect privacy way before I expect a flat panel TV that is bigger and better then mine at home.

clean sheets and a fluffy towel
If I need fresh bed linens or towels I want the service staff to recognize it when they are cleaning the room. I'm fine if the standard is to change the bed every other day and that I reuse a towel. I use a towel probably 5 times at home and change the sheets when it seems reasonable (or Chrystal changes the sheets really). And my towel should not scratch me when drying off out of the shower. It should be soft and feel like a towel should feel.

extra pillows
I want extra pillows in the closet. I may never use them but I want extra pillows.

FREE coffee with real cream and sugar
"Again with the FREE," you say! I want FREE coffee with real creamer and sugar. Provide Mini Moos (half-and-half that does not need to be refrigerated) as it is way way way way better than powdered-non-dairy-gross-creamer. Oh and I'm a coffee snob so I don't want Folgers. I doesn't have to be Peet's but give me something in the middle. The perception that I'm getting good coffee FREE makes me feel great. Don't you love feeling great?!

clean room
I want a clean room and bathroom. I want it to look like it was vacuumed and scrubbed just for me. I don't want toe nails in the bathroom corner. I don't want candy wrappers under the bed. I don't want someone else's used tissue in the trash can. And I never again want someone's underwear between the bed sheets (yes that really happened).

The reality is I want the same normal comforts I have at home but be taken care of like I'm special. Eating out and having someone pick up after me is a luxury, so do that really really well.

alarm clock that works in the dark
I want to see the alarm clock. Oh, and yes especially when the room is dark. I'm impressed if the clock is sleek, artsy, and black. I'm unimpressed if I can't see it when I need to. If I want to know what time it is when I'm up and around I'll look at my watch or my phone. I don't want to search for my watch or phone in the dark. I want to see the glow-in-the-dark-big-huge-glowing-digital-clock.

attentive staff
I want better service. Pick up the phone at the front desk after no more than three rings. Have a concierge service that knows about local restaurants and which ones are good.

Do this better than everyone else and I may stay at your hotel (so will many many others). And if you have technology better than mine bonus for me. But the next time I stay most likely my technology will be better than yours.

The hotel-room-of-the-future project may disagree with me, but I'm betting my home technology will better in 2010.

thanks to Lodging Hospitality for a great event

2008-03-14T18:31:00.000-07:00

Lodging Hospitality and Penton Media put on a great conference for hotels and technologists yesterday and today at Hilton Anatole in Dallas. I've been to quite a few conferences and shows and the discussion topics and guest speakers for this show were top notch. Unfortunately it was not very well attended. This offered for a very personal interaction with everyone but also meant some great conversations and ideas got shared with a very small group of people.

It was great for me personally since my company is newer as I got to chat with some of the bigger names in HT consulting like Jon Inge and John Burns, both hall-of-famers (yes there is a hall of fame for hospitality technology).

Thank you LH and Penton Media for a wonderful conference! If you planned on attending this year and did not you definitely missed out. But there is always next year!

a room full of stangers

2008-03-12T19:35:00.001-07:00

I'm currently in Dallas at the Hospitality Operations & Technology (HOT) Conference and will be speaking tomorrow on Business Intelligence. Tonight we had the welcome reception and I knew no one...literally I had never met a single person in the room. I know they say more people are afraid of public speaking than being burned alive (or something crazy like that).

I however have no problem standing in front of a bunch of people (friends or strangers) and talking about almost anything and could probably go on for hours (I can tend to be long winded at times). I think it is great fun. But being in a room full of people I don't know and starting up a conversation is roughly equivalent to being stabbed in eyes with red-hot pokers. I have flash backs of being at the jr. high dance with that deathly fear of being rejected, but knowing I had to ask in order to dance (which is a whole other story for another post). Why is that?!I know it is part of being a consultant. You have to network. So here is a question to my small group of readers and smaller group of commenters.

"What is the best way to start an interesting conversation in professional setting...like a trade conference?"

Oh, and "So what do you do?" cannot be an answer. I'm looking for something more interesting and original.

i will be speaking at the "HOT Conference"

2008-03-10T16:39:00.000-07:00

This week (March 14th and 15th) I will be speaking as a panelist on Business Intelligence at the Hospitality Operations and Technology (HOT) Conference in Dallas, TX. I was thrilled when Jon Inge asked if I would be willing to participate (like shock and awe thrilled) and am looking forward to the event. I have never attended the HOT show but I hear it is always a wonderful event!
If by a very random chance you read this blog and will be there make sure to flag me down and say hello. I would love to meet you!

apathy = a problem technology cannot solve

2008-03-10T14:03:00.000-07:00

I am a big believer that technology can solve many business and operational problems. There is POS for tracking product mix, streamlining order flow, and revenue reporting; Inventory Management for getting accurate food costs, purchasing cycles, and inventory control; Reservations for managing guest reservations, table turn, and wait times; and a slew of other systems depending on the venue. But for hospitality venues there is a problem that technology solutions cannot solve - mainly apathy or the trait of "learned helplessness."

Last night my family and some friends went out to dinner at El Paseo restaurant in Santa Barbara. We were doing an early dinner (we had two toddlers in tow) and were glad to see the restaurant was not too busy. We really like El Paseo because of the atmosphere (retractable roof) and good food (our opinion). We LOVE the table-side made guacamole and fresh made warm tortillas, and they usually have a pretty solid margarita. We go enough we know what is good and what is not, so we stick to what is good (like the fajitas). Also an important point is I go there because they are a former customer and I am a firm believer in supporting your customers.

But our experience last night ranks in my top 5 worst at any hospitality venue. I point the cause to apathy on the part of the manager and service staff. I will set the stage as it was immediately apparent El Paseo was understaffed for the night. We were all sensitive to this as my wife and friend both waited tables for years and I have spent hours on end helping restaurant staff work through system technology issues (I bused tables in a suit once at a customer site because that was where I could help ensure the guest's experience stayed positive). From the moment we walked in the door at El Paseo we were an annoyance versus a guest. I had to find someone to seat us, and once we were seated had to flag down the manager after 15 minutes. We asked the manager if he could bring us water and napkins (napkins came half way through the meal...recall we had two toddlers with us) and requested a waiter to come over. He declined to get us water and replied, "I will find someone to get your drink order." No apology for the wait or a comment that things might be a little slow.

When our waiter arrived (visibly annoyed we had him summoned) we ordered our drinks, our food (with a one special request), and asked for silverware and napkins. We got three deep sighs and at least four eye rolls. We had been given a kids menu and ordered two kids meals with a lemonade. When our drinks arrived the waiter set a foot-tall-cone-shaped-three-pound-bar-glass filled to top with lemonade in front of our friends 2 year old (no exaggeration!) We asked for kids cup to which he responded they have none (kids menu, kids meals, no kids cup?). We asked if they had a smaller cup, and he came back to the table with a plastic Budweiser cup and no lid (a Bud cup for a toddler?).

We arrived at the restaurant before 6:00 pm and received our food at about 7:00 pm. In that one hour we saw our server once to place our order and once to receive our drinks. We called the manager over twice to ask for more water and napkins, and never once got an apology or a comment on better service. I helped implement El Paseo's technology solutions so I know their systems cannot be to blame for what we experienced last night. I also know the ownership group and have eaten at their other restaurants in Santa Barbara, so I do not believe it is part of the ownership group. Our experience last night was 100% caused by apathetic management and wait staff. But our experience could have been 100% different with the same staff and same poor service. Here's how...

roll out the welcome mat
Greet your customer with a smile and welcome them to your venue. Even if the service is going to be below standard you should still make your customer want to be there.

when required set a low expectation
When as a manager or server you know you cannot deliver the best service, be up front with customers and set that expectation. Offer that you will check in as often as possible, but that service may be slower than normal. That way if it is slow the guest expected it, but if it is not you over achieved. Most customers will be accepting of this.

Image credit to Julianfoto

cater to your customer
If you offer a separate kids menu families will come to your restaurant. Parents expect kid cups to be available if you have a kids menu. Not having kids cups is saying you don't want kids in the restaurant.

apologize when you know you should
You know when you need to apologize for crummy service, even when it's not your fault. An apology can go a long long way. Everybody has bad days at the office. Apologizing when you flat out do not deliver means you care enough to want to deliver.

If only I could invent a technology solution that solved the apathetic employee problem...

For more information about kevin sturm Consulting please visit my website or email me.

posting a bit late

2008-03-08T08:23:00.001-08:00

If you are wondering where the normal Thursday post is, I am enjoying
some snow and sun in Mammoth.

I'll get two posts up next week to make up for it. Thanks for reading.

they finally fixed the bug

2008-03-04T15:53:00.001-08:00

As with all software companies there are bugs, or "undocumented features" to my fellow product management type in the software world. For a long time I had put up with a "stretch layout" bug in blogger that made my custom header shrink to the standard 640px wide size. But as you can see by looking at my new header, as of this week blogger must have fixed it. HOORAY!

Thanks blogger for finally taking care of this!

"perfectionists are loser" by pamela slim

2008-03-03T23:42:00.000-08:00

Here is a great post by Pamela Slim on not being perfect. If you are thinking about starting your own company you should be reading her blog.

After talking with a couple different friends who had made the leap I came to the realization that you have to build a company to have a company. And to have a company you have to start somewhere. kevin sturm Consulting is in no way ultra successful, but I enjoy my work now more than ever and have more time to spend with Chrystal and Brody.

There are tons and tons of things I need to do to make the company better, but if it would never have been if the goal was for it to be perfect.

grab your integrity and hold on tight!

2008-03-03T21:11:00.000-08:00

Picture courtesy of Ian David

After quitting my job and starting my own company I thought it was time to look into a financial adviser. It was not that my company was ultra successful so I needed somewhere to put the money (far far from it), it just seemed that someone who new more about how to grow wealth than me was needed. I have almost no interest...okay, no interest...in day trading or monitoring the stock market to plan my next stock purchase. But there are people who love it and make a living at it...oh the beauty of capitalism. So why not pay them?

One seemingly opportunistic day while working at Starbucks I struck up a conversation with a really nice person that ended up being someone that could possibly help me with this. Chrystal and I met with them a few times and discussed our financial goals. We reviewed how we should roll over our 401K, what our risk acceptance and aversion was, and all the options of where our money could go. After three meetings we were heading towards investment in a VUL and rolling our 401K into a traditional IRA.

We put our trust in this person and I liked him. I felt we had a bond in being young entrepreneurs, expecting parents, and Christians. In our last meeting to sign papers I was advised to answer a question on the application untruthfully. I questioned the advice and said I would prefer to answer the question truthfully. But I left the meeting feeling very unsettled. In order to not make a short story boring, I'll get the point that today I let the person know we would not be investing our money with him or his company.

The point of this post is this.

Never ever ever do anything that brings your integrity, honesty, or character into question with your customer.

I believe the person we met with is honest, has a high character, and values integrity. But this one thing made me call into question the advice we were being given. And since we were talking about our financial future, I was not willing to take even a small risk.

From a letter I received from the person we met with this was a learning experience for both of us. I took five points from this experience.

When deciding on who you are going to work with to invest money, I think it is best to talk with the actual person that is going to be investing your money. Seems somewhat like common sense now. ;-)
Before you meet with someone about your finances, do your own research on what you think the best options may be. Have a basic understanding of options so you can talk the talk.
Find out exactly how fees are paid and who is paid. Ask for a detailed example of if you invest X, and have a return of Y, what will be paid by you in Z. This will most likely be a hard question to get answers to. It is worth it.
Entering a partnership like this is a bit like getting married. The first meeting is informal and soon you are talking about long term plans. There is a cost to get in and a larger cost with penalties to get out. And more important, even a small amount of perceived dishonesty can ruin the entire relationship.
Last but most important was the confirmation that the most important thing you can be to your customer is honest, always!

has your POS become a commodity?

2008-02-28T13:19:00.000-08:00

Over the past few years I've heard lots of talk that individual technology systems like point-of-sale (POS) have become a commodity purchase. All the solutions do basically the same thing so it doesn't so much matter which system you go with. Now, I can't argue with the point that most POS systems have the same basic functions. After all, a cash register and an enterprise POS terminal do the same thing from the guest's perspective. But, I highly disagree that POS systems have become a commodity. That does not mean however that your POS has not become a commodity.

[For clarification I use the term "enterprise POS" versus "cash register" for
lack of better way to differentiate the two very different solutions.]

The differentiating factor is in the setup and use of your POS. Time after time I work with clients that purchased an enterprise POS solution that was $1500 or more per unit, but then configure the system to work like a basic cash register that costs $200 per unit. Here is my top 10 do not list in preventing your POS from becoming a commodity.

top 10 "do not" for your POS

Do not use generic items for ordering daily specials (i.e. fish special, meat special, pasta special). Setup the actual item in your system.
Do not believe seeing 115 "Soda" in your product mix report is tracking beverage sales. I'll point out why this is important below (moot point if you have a self-serve fountain).
Do not have "Open Item" available to all staff because you are too lazy to ensure all items are in the system. Have "Open Item" only for true emergency scenarios and controlled by management.
Do not let employees share ID's. This creates a theft risk, audit problems, and data integrity issues.
Do not let servers get away with voiding checks without entering an accurate void reason. This can have drastic affects on your product mix if you are a high volume venue.
Do not treat refunds, voids, and comps the same. They are different both operationally and financially.
Do not assume your POS cannot do something just because the tech support rep you spoke to at your vendor says so. Escalate up the chain until you get the same answer from two people that have worked there for a least 3 years.
Do not assume someone is auditing the accuracy of your item database. Make a point to schedule a review and update it at least twice per year. Duplicate items, bad naming, and inaccurate assignment happen even under the most scrutinizing eyes.
Do not leave the "cost" field blank if you know the cost. Having this information is extremely valuable for understanding food costs and profit margin.
Do not rename an existing item you no longer sell to create a new item unless you are 100% confident your POS tracks the name of the item at transaction time (most only track the ID). If it does not record it your historical reports will show whatever the name of the new item is, never showing the old name.

So now your thinking, "Hmm....I do half of these and paid way more than $200 per unit." The good news is none of these things are hard to fix. A little time and knowledge can tune your POS right up.

There is a long answer to the "why is it important" of these points, but I'm going to focus on the short. In short - Business Intelligence. Business Intelligence (BI) or analytics is becoming more vital for venues in order to compete. And if you do any of the above 10 things you will find your BI purchase makes these problems glaringly obvious, and you will need to fix them anyway. There are three main reasons the above 10 rules apply to getting good information from your BI solution.

top 3 BI reasons to follow the top 10 "do not" for your POS

POS solutions are hugely valuable because your customers are paying you to give you their preferences. (Read that sentence again.) If you are not tracking what they are actually buying then tracking customer preferences becomes much harder. With customers expecting a more personalized experience at every turn, knowing what they like when and where is important. If I order the fish special only when it is not salmon, your data on my preferences is available but inaccurate.
Tracking historical inventory control and food costs is vital to measuring profit. If you are not tracking historical costs to historical revenues then your profit analysis is really just theoretical, and your analytics data in this area will be useless.
A huge benefit of POS data in BI (though less pointed out) is tracking and controlling employee performance. Versus just looking at a daily, weekly, or monthly views of employee performance you can see comparative detail and create benchmarks for performance.

If you need help in moving your POS purchase from a commodity to offering a value added benefit to your business post a comment or email me.

For more information about kevin sturm Consulting please visit my website or email me.

find out about "WIWIH" = social networking for hospitality

2008-02-28T10:14:00.001-08:00

There is a correction to this post thanks to Davy from WIWIH! Correction in red below.
While perusing around on the Internet for other blogs on hospitality technology I stumbled across a great find. Who is Who is Hospitality or WIWIH for short. Now, though I'm not sure about the acronym (wee-wee?) I have been using the site pretty consistently for about a month. If you work in hospitality here are all the reasons I think it is a good idea to join up.

help the growth curve
It's about time a site covering hospitality globally was created, but that also has specific interest groups for discussion forums. Hospitality is generally so far behind what is happening this is a good thing. Sign up so you help move the growth curve along.

social networking is not going away
Though there was a post today on wiwihblogs by Travolution Blog that the social networking trend may be slowing down, I don't believe it is or is going to. Many professional communities will continue to have a slow adoption rate until it becomes a standard, until enough of the generation between 25 and 35 reach the senior director to C-Level positions (they have always used it so will continue to expect to), or until there is enough business benefit (read revenue opportunity) that you must. Social networking will mature and evolve over time, but it will also continue to grow. It may not be the FaceBook or LinkedIn of today, but it will be around. If you join your first social networking site in 2 years you will be disappointed.

free education
You read that right, free education. Like many other social network sites WIWIH includes a forum offering discussions and questions. When I signed up I joined Guestroom Technology, WIWIH Lounge, HITEC 2008, and Spa & Wellness. The members of the group create a forum where information is shared openly and freely for the benefit of everyone in the group. And seriously, who turns away free advice on a topic you are interested in.

share your expertise
In the same way you get an education, you get to give one. If you have hospitality knowledge and want to share it with the world then right now WIWIH is the place to do it. Why wait to share your expertise four to five times a year at trade shows when you can share it all the time now? If you really do know what you are talking about, the upside to this is you get recognized for your expertise and will probably get invited to speak at more trade shows.

track industry trends
The part of WIWIH I've used the most is WIWIH BLOGS. For those who have signed up with WIWIH and have a blog you can RSS feed your blog so it appears in WIWIH blogs (this blog is), but also monitor the "Recent Blog Entries" section for interesting content. If you've read about this blog you know I started this blog because I could not find anything else like it. But, through WIWIH I found The Hotel Technology Blog by Terence Ronson. Terence posts great stuff there that I've really enjoyed reading. (The one downside to The Hotel Technology Blog is Terence publishes his blog via the WIWIH blog platform, meaning you can't RSS feed it outside of WIWH.) The biggest downside to this is if you are not a member of WIWIH you cannot read any blog ~~hosted on the WIWIH BLOG platform.~~ Davy from WIWIH corrected me on this. Anyone can view WIWIH blogs and they also support an RSS feed. One more reason that WIWIH is a good thing. Thanks Davy for the correction!

#1 reason - networking
Above all else the best reason to join WIWIH is networking. Tim Sanders (a marketing guru and pretty successful author) says in Love is the Killer App "the size of your network equals the size of your net worth". WIWIH is attempting to bring together some of the greatest minds in hospitality to network with each other and share. In addition to the forums and blogs there are job postings, event calendars (with attendees), video feeds, and profile listings similar to LinkedIn. For me it was an easy decision to join up. It costs me nothing and the benefit is all mine...what more could you ask for?

Thanks WIWIH for starting this site and bringing us all together.

creating meaningful parnterships

2008-02-27T14:14:00.000-08:00

I was meeting with a friend the other morning about a new business idea. His idea was awesome and could really change some of the cooperation and communication in his industry. He was having doubts about his idea though because many of his peers kept saying, "Oh that will never work because people won't risk losing profits by working with you."

We had a great conversation on how to overcome this problem which made me think about the concepts of launching a new company where partnerships are a must (which is just about any company). Currently my biggest client is because of a reference from a company that offers the same consulting services, but without a portion of very specific expertise that I have. The company is probably losing $30,000 to $50,000 in revenue by referencing me. However, if I can help turn things around then their upside revenue will exceed $2,000,000 with the client. If I can't turn things around the risk is $50,000, but their annual revenues are beyond $800 million so no big risk for them.

The point here is that if you can create an upside with little or no risk for your partner then you really create a win-win scenario. My example is maybe not great because their is no risk for me, but that is beside the point. Here are a few things to think about when creating a partnership that you need.1. What is your motivation in creating the partnership? This is an important question because your motivation MUST be something other than you make money. Is there a bigger benefit that helps you, your partner, and your joint customer. A partner will see right through you if a big motivation is not to help them make money. Guy Kawasaki says a key element of any new business must be "to make meaning", and that is this point. The partnership must help make meaning for all involved.

2. Evaluate the value of each partnership and ensure the returns are balanced for you and the partner. If the upside value is almost all yours, then almost all returns may need to be your partners. If the upside is all your partners, then almost all the returns may need to be yours. Don't not do a partnership because there is little direct profits. There may be indirect profits (see #5)

3. My dad always taught me "Pigs get fat and hogs get slaughtered". It is easy to get caught up in squeezing the partnership for all it's worth. Fight that urge and take what you should versus what you can.

4. Figure out a way to make the partnership low risk. For example, if you want to sell another persons product they will probably not risk losing revenue to your gain. In this situation figure out a minimum sales number before you take profits. This way your potential partner only gives away a portion of the profit when they sell enough to accept it. You can also build in levels of profit sharing here where the more you sell the more profit you get.

5. Recognize that recognized names can bring customers. If you are the little dog in a partnership the big dog may get you leads because they are the big dog. In follow up to point #2 it may be beneficial to just have the partnership and take little (or even no) profit. Rather negotiate an endorsement of some kind. Free press from an influential person and/or company can bring bigger revenues and encourage other partners to join. Creditability for any new business is huge. Acceptance and endorsement from credible sources is priceless.

My final note is don't quit because people don't like your idea. Talk about it with people. You'll be amazed how the idea changes through each conversation. You will turn it into a great idea or realize it probably won't work and scrap it for a better idea.

innovative hospitality solutions partnership announcement

2008-02-19T12:29:00.000-08:00

kevin sturm Consulting has been listed as an alliance partner with Innovative Hospitality Solutions (IHS)!

"Innovative Hospitality Solutions is a leading project management and food service design consulting firm that utilizes a systematic approach to help its Business Partners take their vision from insight to impact."

Led by Matt Mundoc and Gary Gunderson, IHS not only brings great experience to the table but also great people. Matt I and worked together in our former careers implementing an enterprise POS technology solution for an international financial corporation. Matt's direction led to one of the first global cashless programs in food service that returned some real and very meaningful data on the benefits both to the company and customer.

Matt is a visionary when it comes to technology initiatives, space planning, and strategic food service programs for business dining and other food service venues. He is also one of the most honest, genuine, and nice people to do business with. His dedication to the client and their success is paramount, and he is also a great example of a true family man.

I consider myself both blessed and lucky to be chosen as technology parter with IHS. If you are looking for assistance with your food service project in any capacity, IHS is the group to call.

For more information on Innovative Hospitality solutions visit their website or contact them via email.

For more information about kevin sturm Consulting please visit my website or email me.

find out about "Nutricate"

2008-02-14T14:34:00.000-08:00

One of the hot new emerging technology companies in hospitality is Nutricate. I had the opportunity to spend some time at the Nutricate office and find out about the solution and story behind their initiative to "Nutritionally Educate" hospitality venues and guests. It was also a fun reunion as my former boss and mentor, Brad Bennett, is their VP of Products. Before sitting down with Jay Ferro, Nutricate CEO, I was treated to lunch at Silvergreens to experience the Nutricate brilliance.

One of the most interesting things about this interview was hearing about Nutricate's birth from social concern versus financial purpose.

Me and Brad

1. What exactly does Nutricate do?
I guess the problem we're ultimately trying to solve from more of a global perspective is there is an obesity problem on our hands, and the food service industry has responsibility in that. What you hear a lot about is legislation for trans fat and other things. The one you probably don't hear as much about is the need to tell us what's in their foods with nutritional labeling. What Nutricate does is we attempt to solve a problem from both the operator perspective as well as the consumer perspective. We try to create that "win-win" opportunity. What we have is a patented software tool that enables personalized nutrition information to print right on the receipt at restaurants, hospitals, work site cafeterias, or any food service environment. What we end up trying to do is take that opportunity to not only engage the consumer and let them know what they are eating, but also to educate them on how to eat healthier and make recommendations. We call it our "Did you know?" section. For example if you order a chicken sandwich we can put something like, "Did you know if you substituted grilled chicken for crispy chicken you would save this many calories and this much fat." From the operator perspective this is huge because you want to move the accountability off of you the operator and put it on the consumer. It's not that my food is bad for you, you just chose the french fries. You could have chosen the side salad as your side. I'm going to educate you on my options, tell you how to eat healthier, and then of course it's on your shoulders. Don't blame me for how many calories or fat is in this meal because you have plenty of options. Getting the consumer more educated on this is primarily where we are going, and then we will have peripheral products along the way that can add value for both the consumer and the operator.

My actual meal and Nutricate Receipt

2. What triggered the idea to put the nutritional data on the customer receipt?
Well, it was 1994 and I had just graduated from UC Santa Barbara and was writing a business plan for a restaurant. I wanted to go do my own thing and didn't want to work for anyone. I knew Isla Vista and the community here. I said, "I think this place needs a healthy restaurant about salads." Kinda take the salad bar concept and modernize it from the 80's. While I was writing the business plan for that restaurant I started to research nutrition. I didn't know a lot about nutrition, I just knew I thought the market was looking for a healthier alternative at that time. I started thinking I gotta get nutritional information for my restaurant, and then asked, "Wait, why don't restaurants have to do this?" Turns out in 1990 nutrition fact labels were mandated and restaurants were made exempt at that time. It was 1994/1995 at this point and timing was basically bad for the idea. The idea was why not put it right on the receipt, it doesn't change anything from the operator perspective. The customer gets exactly what they're eating. One of the biggest reasons restaurants were exempt was I think 70% plus of your orders at restaurants are customized. Preprinted nutritional information whether on a brochure, poster, or menu board is inaccurate the vast majority of the time to begin with.

3. What is the value proposition that Nutricate offers the venue?
Well, I think it depends on what operator you're going to. We segment the food service industry in two areas. One is restaurants and the other is the institutional market. For restaurants there has to be a tangible ROI. There does on both sides, but the ROI is how can I increase sales, how can I decrease costs, how can I improve customer loyalty, how can I improve brand. We're targeting in the restaurant side those that are maybe socially responsible and trying to position their brands with more of a health conscience perspective. Obviously that's not everyone out there, but they see the trends like everyone else and they know they have to change in some way. So, for those people were saying you have a competitive advantage potentially on what your nutritional information looks like compared to some of your competitors. There are so many dynamics in this because there is a perception versus reality. Subway may be perceived as healthy, but when it comes right down to it maybe they're not. Disclosing nutritional information may be bad for business in that way. But if you're getting just killed from the media like a McDonald's, and your not that bad there may be a good business decision to do it. There are several dynamics within it, and we are way to communicate that. And then of course from real tangible ROI what you find is your drawing attention to a piece of paper that has been thrown away forever. And now you can leverage those new eyeballs for new marketing opportunities or new third party advertising opportunities. What do you want to know that you have some attention on there? It's a new medium of marketing of sorts. That's the restaurant side.

The institutional side we're selling to for a totally different reason. Some of the barriers that may exist from an embarrassment factor ("I don't want anyone to know") that is on the restaurant side are not there. If you are talking to a cafeteria, education, or hospitality that's not their concern. Their concern, certainly from work site perspective, is primarily my health care costs are out of control and I need my employees to be healthier because I need to drive these costs down, and what kind of health and wellness programs can I put into place that can engage these employees of mine and give me measurable data I can give to my insurance company so they can justify lowering my rates. There is this a huge pain out there and that's "dollars". So they're trying to reduce costs by implementing programs like this. Or obviously in K-12 there is a lot of public pressure. It's kinda of like "walk-the-walk" is what's going on in that side. So they're not necessarily saying, "I want this to drive my sales." They're trying to do it for totally different reasons than why a restaurant would do it.

4. How is it that you can integrate with almost any Point of Sale System?
What our technology solution is....well you're the one who is going to tell me if I'm right or not in this because this is your area of expertise.

Here's how we look at it. We have the POS side of things and it's an extremely fragmented industry. I think MICROS is the leader and they have maybe a sixth share of the entire market. That's how many different players there are out there. So yeah, we can build software and it can certainly sit on the POS and we can integrate with it. But do we want to do that with 200 plus POS? When you look at what we are trying to do, we just have to affect the printer. And the printer market as you know is 80% owned by Epson, and the rest are Epson compatible. So that print stream is really easy for us identify and map to. So what we have is a proprietary device that essentially intercepts the print stream and adds all the necessary nutritional information and marketing message based on triggers, makes the receipt look pretty, and then passes it right on to the printer with no speed latency. Everything is managed via of the web so you don't have to worry about where you're at. It can be hard wired via Ethernet or a wi-fi dongle so it can be accessed. Essentially all we are doing is just matching what's coming out of your POS at the item level, and if there are certain things we don't want like a credit card receipt we just pass through. If we want it we make it a Nutricate receipt.

5. Quick service and chain restaurants are obviously a key market segment. Do you see hotel, resort and other high end venues adopting providing nutritional information to their guests?
I think you earlier were talking about the spa market. If you look at where maybe opportunities exist and where it would be more in demand by customers spas are one. Another interesting one in the hotel market is room service eventually. I think that could be a good application. Initially we're not targeting the casual or fine dining for a variety of reasons. Typically you're finding those in hotel atmospheres. I think there are certain places it makes sense in hotels and there are certain places it may not be the right fit today. And as you know many hotels are one-offs. If there is a one-off opportunity I need to feel like it is worth while to go in there and make enough money. The nice thing about chains is I do it once and I can duplicate it by the number of chains. For the institutional market it is our second product offering that excites them more than our first product offering, and that is a totally different revenue model for us that is very very attractive.

So I guess we are not initially targeting the hotels of the world, but I think spas is a good one. LifeTime Fitness sort of fits in the same model. As we look at what we are targeting today it is a big market, and we're choosing quick service and fast casual in the restaurant side. The whole institutional market is pretty good for us, but work sites ultimately are in the biggest pain. They are the one paying all the health care costs and that is where we are targeting.

6. Why do think there has been a lag in the adoption of providing nutritional information to guests?
I think it is a couple reasons. One is the potential embarrassment factor, there is no doubt about it. You have the media making it sound really bad and beating restaurants up. I think the media has just done a terrible job of everything. We are kind of finishing out the "Supersize Me" era. From mid 1990 to mid 2000, in that ten year stretch bigger was better. If you could give me more french fries I would go to you because that is more value in my eyes. As portions sizes continued to grow over time it turns into a really really bad time to expose nutritional information. It's all about quantity, which is why the casual dining market is so bad for us and them. If you get a BigMac and fries at McDonald's and you get a burger and fries at Chili's you feel better about yourself for eating the one Chili's; maybe because it is being served or because you think it is a higher quality of food. But you are eating two to three times the amount of calories and fat, and that is not because it is worse for you but because that is how big everything is. But we don't think like that from a consumer perspective. The last thing Chili's needs to do is tell people now, "You just had 2000 calories." And McDonald's can say, "You had the BigMac and fries and your the one beating me up when it is only had 800 calories here." I think it is different reasons for different venues, but ultimately the market is so nervous about how consumers are going to respond and react. "Are we going to get killed on this or appreciated. How mature is the audience out there?"

Two, if you look at what alternative methods there are to disclose this nutritional information, outside of Nutricate's solution, there are no good methods. They're going to put it on the web, but who goes and accesses the web before they eat. It just really doesn't happen very often. They are going to put it on posters on the the wall. But the problem with posters or brochures is customized orders. You cannot put that in a preprinted format of any use to a consumer. No one is going to go find their specific desire and then order it. It is just impractical. If you put it on a menu board there are tremendous problems. Logistically finding the space for anything on a menu board is hard. What it could potentially do to line speed is also a problem; operationally another variable that confuses my customer and makes them ask questions potentially negatively affects line speed. But I think still at the end of the day venues would figure out a way to do it if they felt comfortable there would not be a backlash. They are not looking for everyone to say, "Wow, I'm going to eat out more often now."; really they just don't want people to eat out less. So we are obviously being very selective with who we target because our solution may not be the right solution for half of the restaurants out there.

7. Who are some customers that "Got Nutricated"? What has their customer feedback been?
Right now there are four. Silvergreens was the initial restaurant, which was the restaurant I founded, so it was the perfect place to put in a product that hopefully would work. There were a lot of questions like, "How is the technology going to work." When we put it in in April '06 at Silvergreens we had Maitre'D and we integrated it. There was not an agnostic piece to it. We did it and it was painful. 99% of the things the POS did we didn't care about but we still had to make it work with. So it was a long frustrating process. What we were trying to do was figure out 1)does the technology work, 2)what happens to the restaurant's sales, and 3)what was the customer's response. We needed to test this and do a market test on it. All of those, with the possible exception of the technology, went great. Sales went up 20% unbelievably! It's crazy! It is hard to say it because I know people don't believe it. Here's the reason it did - you get PR out of this thing. It's different. It's unique. We had news people come; we got some articles printed on us. Already when that happens you're gonna get new people trying your restaurant. But we're in Isla Vista, and for anyone coming into IV it is tough enough with the competition. Also people don't want to challenge the bikes and are intimidated of IV outside of the students and those that are accustomed to it. So we got a new batch of people that were saying, "Wow, this new kind of restaurant." Whether that was because of the Nutricate receipt, the food, or a combination of both is hard to determine. But we got the PR to get them in and prove ourselves.

Also, I think the coupon aspect on the receipt works pretty well. It is a very inexpensive way to target your current customer. Hopefully it doesn't cannibalize sales, but overall if you grow your volume you're going to be fine. Usually you target. If it's lunchtime and you're trying to drive breakfast business, you know that person can come in so your going to try and target breakfast or a new menu item. Whatever it is, there is a lot to the tool of couponing. It's neat and it's based on lot of triggers.

The consumer response was fantastic. We did a bunch of market research independently. CSP did it and surveyed tons of people. There was really positive response to the receipt. It's an interesting market, not to get on a side not here. College students for the most part don't care as much. As you get older your body responds differently to what you eat. If you can be successful in a market where people don't care as much as when you become more educated on nutrition I think it's pretty impressive.

Then there are three locations in San Diego. Two Extreme Pita's, a pita concept out of Canada trying to penetrate the US market. They have probably 30 restaurants in the US and a couple hundred in Canada. They are competing with the "bigger is better" mindset in the US. It's hard, but they are inherently healthier and they have a good nutrition story. We have tested in those two locations and are now putting it in Phoenix, their biggest US market. Then they will test it out in Canada.

8. Recently the the New York City Board of Health voted to require all chain restaurants to post caloric data on their menus. How long do you think it will take for this trend to reach other cities?
It's a good question. I mean that's legislation. Obviously that is a great driver for us. Nutrition disclosure strategy is on the board agenda this year, so it is something restaurants have to think about and try to figure out. It is going to make some of the bigger players out there think, "How do I want to do this? Do I want to be proactive? Do I want to be reactive? Where are we with this?" What New York City has done now is chosen the method of putting it on the menu board, and that is a very easy one to fight because it is such a bad choice of solution. One, it is very dangerous. You could give someone extremely inaccurate nutritional information just with the customization of it. If a venue puts one on their menu how in the world are they going to know what a guest actually orders? If the item defaults with wheat bread and no mayonnaise or cheese someone is thinking they are eating 400 calories when it is actually 700 calories. You can put up whatever you want to put up, so it is very dangerous I think in that regard. As well with meal totals and other things that are going on. The restaurant industry has got lots of legs on this one.

And, why would you think this would possibly work? Since nutrition fact labels have been put into work our obesity rate has doubled. So this really is the same thing but even worse than what we have been doing. Essentially the restaurant association sued again, because this happened twice. Essentially we are focusing in California. Something similar happened in California and went all the way up to Arnold, and Arnold vetod. It was a good thought and I agree the restaurant industry has to do something, but it was the wrong solution for a variety of reasons. Obviously we're now getting active and saying look at the Nutricate solution and why we think it makes sense for everybody. But I think cities and states is where it is going to be driven. It is going to pop up all over, and then at some point go federal. The chains want it to go federal because they can't have different legislation in different cities all over, it is just too much for them. So there is a point where they will say, "Let's just find out what it is and just do it, and and move past this so we can go back to making our burger and fries."

And this is the perfect place for technology to come in! They are so far behind in technology anyways at least use this as an advantage for you.

9. Starbucks is now offering a pamplet with nutritional information. They have upward to 87,000 drink combinations. Would Nutricate be a good fit for an operation of this size?
That is where we excel! That is the reason we're relevant is because you order your latte your way. We can key off any of that stuff, that's what we do. That is what Brad is doing. We are basically building that flexibility. If you want a "grande mocha" with six pumps of chocolate I'm going to come up with the number whether you want it rolled up, by item, or by individual pump. The venue gets to choose because there is marketing there. Do I want my customer to see it all rolled up? Or is the whole milk such a bad part of it that I want to show them it's not me, and then recommend skim milk via "Did You Know". And skim milk costs me less per gallon, but the drink costs the same so I save money! The point of "Did You Know" is to educate the customer and hopefully do it in a way that makes the customer healthier and the venue more money.

That is where Nutricate is of huge value to the coffee segment.

10. As someone arguably successful in both the restaurant and technology market, what advice would you give to entrepreneurs wanting to provide a technology solution to the hospitality space?
You should ask me when I become successful as I'm still trying to figure this out a little bit. I founded a technology company with no technology background. I have all food service. Being somebody who is pretty hands on and wants to know about everything, that is the space I couldn't dive deep in. If something was wrong it was just wrong. For me, it is just get the right people. As you know in Santa Barbara that is such a challenge. But it is no different than any other business. Get well funded so you can afford the right people and the right technology.

11. You have an "Ask the Dietician" section on your website. What is the weirdest question that has come in?
(laugh) Unfortunately I'm not even a participant in that. We have our dietician who does that and I don't know how much it is used or not. I could make one up for you, but I honestly don't really know even one question that has been asked.

I was immensely grateful for the opportunity to sit down with the team at Nutricate. They are truly onto something great and everyone there is deeply passionate about the solution and the benefits of it for society in general.

The Nutricate team hard at work

If you are interested in finding out more about Nutricate you can visit their website or contact them here.

For more information about kevin sturm Consulting please visit my website.

ideas excite me!

2008-02-13T10:27:00.000-08:00

I just had coffee with my friend Carter Crockett, a business professor at Westmont College. If you have read my LinkedIn profile you know talking about new ideas is one of my favorite things to do. Carter and I had this great conversation about a new business idea and I can hardly get my brain to stop working out the details so I can focus and do work for kevin sturm Consulting clients.

One of the biggest changes in my life since quitting my job has been how I think differently. Versus being mired in all the "things" and "problems" that dominated my day and my brain, I am free to dream about new and fun ideas. Your brain really can do amazing things when you stop trying to force it to do something it doesn't want to.

If you have a new business idea you want to talk about, invite me to coffee. I love hashing it out even if it never happens! I'll even buy!

don't steal software

2008-02-10T15:20:00.000-08:00

I was on Craigslist today and came across this post.
In response I flagged the post as in violation of Craigslist rules and sent "sale-569449932" the below email. And yes I did give him/her a link to this blog, which I hope they find with this post.There are a few things here that amaze me. First, it is really bold to openly post for the world to see that you do not care about software licensing. Stealing software is a crime, and just really shady.

Second, it takes a narrow minded person to not realize that it is stealing and you are stealing from lots of people. It is not just Bill Gates; it's the Gates Foundation (you cannot argue it's not a good cause), the developers that wrote the software, and some seriously hard working people at Microsoft (that are not rich) which I have had the pleasure of working with during my career.

Thirdly, as much as I like working with Microsoft they are not the only software option. Lots of companies that are not Microsoft exist. If you don't want to buy Microsoft software do a Google search on "mac office software" and NeoOffice comes up on page two. It would take less time than doing a Craigslist post.

If you want something with a little more functionality for a really low price try OpenOSX
for $30.

With so many options out there why resort to something that shows such poor character?

more on RFID in hospitality

2008-02-06T14:17:00.000-08:00

A good question came in as a comment from David Wold and I thought I'd take a stab at it in a post versus just as a comment.

Comment: How accurate do those things get with location? Meaning, to find someone in the building, they would probably need bulkier active RFID chips and not the smallest cheapest passive ones. That might bulk things up but still be OK. But can they pinpoint location? From what I know, they can tell you that something is present or in the area but not exactly where it is. For example, with inventory, you can get the full contents of a pallet at your receiving dock in an instant but you may not know which boxes have which parts without opening them up to look. For the spa, you might know Chrystal is in the sauna, but if there are 5 other women in there, it might be hard to know which one is her. Plus the employees would have to walk around with geeky looking receivers to find the women (getting hotter, no now its getting colder). Maybe a combination of a longer range active RFID with a shorter range passive RFID to roughly find and then zero in on the client...

First, the RFID chip size is actually very small and the active RFID chip fits in a wristband quite nicely. Here is an example of a reusable wristband from Precision Dynamics Corp, a leading provider of RFID technology to hospitality venues. These are durable, waterproof, and can be personalized in color and logo. Very easy for the spa guest to keep track of and return. The total cost of the band is fairly low being reusable.

In the specific example of implementing location services for a spa knowing the "exact" location of the guest is not really necessary. The guest is generally confined to a fixed space and will be in either a public room (sauna, locker room, etc.), private area (massage room), or unmonitored area (hallway). Access to these areas would be tracked by an RFID scanner that captures the time a guest enters and leaves each room. As spa guests do not generally linger in hallways a venue would not need to implement an RFID system that was constantly scanning for guest location in all areas. The staff could simply validate the last room a guest entered to find their current location. If a guest's last tracked location was exiting a room then it is likely they are already on their way to the next appointment.

Also, if the spa captures the guest's picture it is not a requirement for staff to carry a hand held device to access the guest picture/profile or location. Since the spa is generally a confined area and staff is usually coming from a location with a computer, they could review the guest picture and schedule before leaving to remind them of their next appointment. Another operational scenario is to have staff print the guest's itinerary with picture so they could identify them by name when requested to provide a reminder of their appointment.

however, this comment brings up a viable option of having real time location services with RFID and how that may change the guest experience, as well as project cost. I'll tackle this question in the next post so stay tuned.

For more information about kevin sturm Consulting please visit my website.

excercise your privilige - VOTE!

2008-02-05T13:07:00.000-08:00

Chrystal, Brody and I went and voted today as a family. Give a prayer of thanks that today you get to exercise that privilege, and then go vote. Whether Democrat, Republican, or Independent voting is important.

Check out Seth's Lessons from voting for some interesting insights into voting.

make sure what you do = what your customer wants

2008-02-04T00:25:00.000-08:00

Sometimes on the weekends I do very dad-like things.

Brody turns 3 in April, and since we are expecting baby-sister (no name picked yet) in April it was time to move into a "big-boy" bed. So this weekend I built a bunk bed. Okay I assembled a bunk bed, but I did everything but sand and stain the wood. I could not believe the amount of assembly required for this bed. It made me feel very "daddish" though and I was super excited about it. Putting together my sons bunk bad...seriously how dad is that!? Brody loves it and climbs all over it.

And today we were playing with his cars from the movie Cars (he has all of them) and I got this great idea to build a ramp to drive the cars down from his top bunk. I thought we would have a great time building it together. We went to the hardware store and got some material, got the project all setup, and after attempting to hammer one nail Brody got bored with the board. I spent the next 45 minutes building a ramp with barriers, lanes, and finish molding. I thought it was really cool (still do). I took it up to him all excited and set it up. Brody thought it was cool for about 4 minutes until a different toy grabbed his fancy.The reality was Brody did not ask for a ramp. He was completely content just playing cars with me and didn't need anything else.

I sometimes find myself wanting to do something for my customers that I think is cool, even if they don't need or want it. This is especially prevelant in software development where unnecessary features get added because they are cool but not very functional (think annoying paperclip man in Windows). Avoid doing something because you think it's cool. Instead do something that is useful, which should start with spending some time with your customer and listening.

relax your spa staff with RFID

2008-01-31T14:53:00.000-08:00

A few weeks back Chrystal treated herself to a pregnancy massage with another “expecting” friend at Burke Williams Spa in San Jose, CA. The day spa offers a pregnancy package with a lavish milk bath, which Chrystal and Christy thoroughly enjoyed. Chrystal loved it and was definitely more relaxed afterwards. But upon her return from the spa she said that although the guests were becoming more relaxed the staff seemed harried.

When she checked in she did not fill out any paperwork simply signed in and was presented with a key and keychain for her locker. Her schedule was in the computer and on a printout. Throughout her three hour visit she had spa employees pop into the public areas (like the quiet room, sauna or hot tub) and ask, “Do you have an appointment and 2:00 PM?" or "Are you so and so.” If the person was there they informed them of their next appointment time and location. Chrystal had two problems with these very common operations. First, keeping track of a key at a day spa is an inconvenience. At one point Chrystal accidentally grabbed Christy's robe and then could not get in her locker, as her key was in her robe. Second, consistently having employees ask me if I'm someone I'm not does not equate to the experience associated with a high-end spa.

I know Chrystal would go back to Burke Williams Spa if given the opportunity, but the prices may not be in line with the “experience”. We have a place in Santa Barbara where she can get the same massage treatments for 1/3 the price (maybe less) and many spas where she can get exactly the same treatments for the same price. At core a spa must be measured on the value and quality of the services it offers. But if those services are equal to competing spas then what incentive does a customer have to return?

Answer: A unique experience.

What if Chrystal's experience instead went like this. After making her spa reservation she had the option to complete the majority of the information online (some HIPPA stuff may be only allowed on a form) and was able to note any preferences, allergies, etc. When arriving at the spa, the information she provided online is complete on the form and she is asked to take a quick profile picture and then sign the form (waiver and legal stuff). She is presented with her schedule of services and a small Breast Cancer Awareness wrist band outfitted with an RFID tag. She is assigned a locker number that can be opened with her wrist band. After relaxingly loosing track of time in the sauna a staff member pops in to let her know it is time for her milk bath. The staff member speaks directly to her and knows her by name, though has never seen her before. This happens throughout her day and both her and the staff are relaxed and enjoying her time.

With the growing number of guests willing to spend money for a unique experience, this story brings customers back. It is not only possible but simple to make a reality. Just about every spa already has a loyalty program and most of them accept a small profile picture to associate with the guest, so that part is done. Implementing location services using RFID is becoming more mainstream with vendors like Motorola, PDC, and Microsoft leading the way. Guest information is linked to the RFID wrist band, which is small, inexpensive, completely waterproof, and even stylish if so desired. The entire staff has access to the guest's picture and knows where each guest is at all time because of RFID scanners at each door. An added benefit is the spa gets automated guest preferances by reporting each room that a guest goes into and the amount of time they spend in it (this has to free up at least one administrative job). This information is also golden when it comes to personalized marketing with solid Business Intelligence data.

If your spa has a restaurant there is an added option to interface Point of Sale (POS) with Loyalty and allow guests to buy food and other items available for sale with their wrist band. LifeTime Fitness, a specialist in the “health and fitness experience” uses photo recognition at the POS as an added security measure. It also means the customer doesn't have to carry anything with them.

Implementing location services with RFID obviously is not free. But balance it against the decreased cost of manual system entry and paying staff to herd customers, and the revenue opportunity of very effective personalized marketing campaigns and I believe you'll find the numbers make sense.

You can call any of the vendors above if you want to look at implementing location services. Or, if you want someone to help you create a memorable guest experience give me a call or send me an email. I'd love to help!

For more information about kevin sturm Consulting please visit my website.

losing business with business automation

2008-01-31T10:34:00.000-08:00

Automated customer service emails have their place. But when they are not in line with customer expectation you can end up doing more harm than good.
On Friday Jan, 17 I took a flight on US Airways from San Antonio to Phoenix. I experienced the worst service in my history of flying, which is saying something since I spent the equivalent of one full work month on a plane in 2007 (about 160 hours for those told there would be no math). Never before had I actually sent a letter to an airline as the bar is set pretty low with regard to guest experience and I am generally understanding of the airline plight. Airline employees deal with unhappy and rude customers all the time, and 98% of the time the problem is out of their control like flight delays or being out of Coke cans mid flight.

But attitude and how a job is performed is completely in the control of any employee. The kicker for me was getting off the plane to wait for my carry on bag to be delivered (small plane) and watch our bags get "launched" by an employee three feet up over a railing and fall about three feet to a landing. Thankfully I didn't have anything fragile in mine, but I saw one laptop bag go airborne (as it's owner cringed) and one garment bag get a hammer style throw.

Since my iPhone does not have video capability (one of its major limitations) I tried to get my camera out to take video but was too slow (I think it would have made an interesting YouTube upload). I sent a note to US Airways, but not an "angry customer" note. I told them the story of my experience and ended it saying I did not want anything in return but hoped customer service would be a higher priority.

The following day I got an automated response from US Airways apologizing for my "travel difficulties" and a $75 non-transferable travel voucher. I suppose I could have just accepted this as the reality of things, but I felt a bit insulted. US Airways could have quickly validated if I had a frequent flier number (which I do) and found my Star Alliance status. My guess is they could have also discovered I spent over $2200 in airfare since January 1, 2008 (30 times the voucher amount).

I sent a response email to customer service saying I did not want the voucher I just wanted better service the next time I flew. They sent another email apologizing for offending me with the voucher and that my concerns had been delivered to the appropriate management. I ended feeling again like my experience stunk.

US Airways could have righted my experience one of two ways. Picking up the phone after the second email would have been ideal. It would have made me feel appreciated and ensured they understood I was not angry but disappointed. Obviously they cannot do this with everyone, but the reason for loyalty programs is so you know who a customer is and what losing them may mean. Second, though I did not want anything, a full fare voucher would have told me they really wanted me to fly with them.

The point of business automation should be to improve the guest experience, not the other way around.

goals for 2008

2008-01-28T23:31:00.000-08:00

In business (and life) I think it is important to set goals. But for consultants and entrepreneurs goals are the only way I know of to create a path to success. Clients often hire me to make sure their projects run smooth with the outcome of success. I have a solid track record of executing on projects because I am passionate about what I do, I break the project down into achievable and measurable milestones, document what those are, and then work to make sure that each one is achieved. It is the same for my business. On September 26, 2007 on a flight from Dallas to Charlotte I set the goals for kevin sturm Consulting (note that kevin sturm Consulting did not truly exist then as I was still gainfully and somewhat unhappily employed).

Here are those goals shared with my limited readership as my path to success. Hold me accountable to them and help me achieve them.

Q4 2007

Establish my niche in consulting, hotel ideally
Bill 20 hours per week
Start posting meaningful content on this blog every two weeks

Q1 2008

Bill 20 hours per week
Post meaningful content on this blog every two weeks
Speak in some capacity at an industry conference
Have kevin sturm Consulting website complete - working on this now

Q2 2008

Bill 16 hours per week
Hire first employee for kevin sturm Consulting billing 20 hours per week
Speak at some capacity at major industry conference

Q3 2008

Bill 16 hours per week
Give Keynote Session presentation at any conference related to hospitality technology

Q4 2008

Bill 16 hours per week
Hire second employee for kevin sturm Consulting billing 20 hours per week
Speak at a major industry conference

If you have not set your goals for 2008 take some time this week to write them down. Then put a path in place to achieve them.

set goals instead of resolutions

2008-01-28T23:09:00.000-08:00

I've been meaning to do this post for a while, but have been lazy on the post front. It's now almost February, but my post for the 2008 new year is don't set resolutions. In stead set goals. Not widely outrageous goals, but goals that are achievable and broken down into increments. They should be challenging, but also attainable.

On September 26, 2007 on a flight from DFW to Charlotte I made a list of my two year goals. I was reviewing it this week. I've done well in some areas and not so well in others.

Q4 2007
Professional

Establish my niche in consulting where ever it may be, hotel ideally
Bill 20 hours per week
Start posting meaningful content on hospitality technology made simple every two weeks

Personal

Read my bible every morning for at least 15 minutes - have not done
Get out of the rat race and keeping up with what we think is the requirements of success
Run every 3 days at least - sometimes yes, right now no
Read one book per month on something and keep doing it
Finish house - not even close
Post to k.sturm blog at least every 3 days - not quite there

Q1 2008
Professional

Bill 20 hours per week
Post meaningful content on hospitality technology made simple every two weeks
Speak in some capacity at an industry conference
Have business plan for new company idea complete with market analysis, 1 year, 3 year, 5 year revenue forecast, and mocked up design

Personal

Have a plan to live “below” our means allowing us the financial freedom to take trips and live free
Begin taking a one week trip per quarter with Chrystal and Brody somewhere fun where we don’t work at all

Q2 2008
Professional

Bill 16 hours per week and increase hourly rate
Hire first employee/subcontractor for kevin sturm Consulting billing 20 hrs/week
Speak in some capacity at major industry conference
Have a second draft of business plan in place and start moving forward
Find a developer that will “drink the cool-aid” or get venture capital funding…drink the cool-aid is way better

Personal

Go on Potter’s Clay construction team (not sure if this will be possible with baby due)
Be training for Marathon or Triathlon

Q3 2008
Professional

Give Keynote Session presentation at industry conference
Be at least one quarter into v1.0 of new business

Personal

Visit Opportunity International bank in Mexico or Africa
Run a Marathon or do a Triathlon

Q4 2008
Professional

Hire second employee/subcontractor for kevin sturm Consulting billing 20 hrs/week
Speak at hospitality technology industry conference
Sign up early adopter customers for v1.0 release

Q1 2009
Professional

Speak at hospitality technology industry conference
Release v1.0 of new business venture
Attend industry conference on new business venture

Q2 2009
Professional

Speak at hospitality technology industry conference
Release v2.0 of software
Speak at industry conference on new company venture

Personal

Attend TED Conference in ~~San Francisco~~ Long Beach with two friends

project at la cantera resort

2008-01-16T16:55:00.000-08:00

I do not think there are many things worse then flying with a cold! I'm waiting for someone to invent a travel accessory that unplugs your ears after you land. I landed seven hours ago and I still can't hear out of my right ear and my sinuses still feel pressurized!

I flew to San Antonio today to meet with Gaylord Entertainment tomorrow. They recently purchased the La Cantera Resort, which is a really beautiful property just outside of San Antonio. I'll do a tour of the property tomorrow and discuss logistics of the project and what the overall plan is. It is a fast turn around project from the technology side with lots of contingencies, so it will be a fun challenge.

This is also a fun project because I'll be working with a friend and great guy that used to work for me in a former life. Cameron Ahler is a Senior Systems Analyst with Gaylord, but since he is crazy busy with the opening of Gaylord National on the Potomac called me to help out with the La Cantera takeover. I was thrilled and am excited to reconnect with the Gaylord team. Gaylord refers to their employees as STARS, and everyone I've ever worked with at there has always lived up to that acronym.

I still can't believe my job is to travel to a super nice resort, reconnect with great people, and help venues implement technology solutions to meet the needs of the guest. And to boot I have a beautiful view and get to sleep in a Heavenly Bed tonight! Here are a few shots from the balcony of my room. Having this much fun can hardly be considered work.

For more information about kevin sturm Consulting please visit my website.

i love my job

2008-01-16T16:40:00.000-08:00

I flew down to San Antonio today for a consulting gig at the Westin La Cantera. I have a really bad cold so flying was brutal. My ears are still plugged up. This place is uber nice and I got a sweet room with a view of the property and surrounding hills (photos below). It was really nice to relax for a bit in a nice room with a spectacular view. How great is it that get to come stay at a nice hotel for work! I love my job!Now I'm off to have dinner with my father-in-law.

enterprise software, hoax or holy grail – part three

2008-01-10T14:29:00.000-08:00

This is the third post in a three part series on enterprise software solutions.
Read part one here and part two here.

Document features under development.Okay, you have your lab in place and it is setup to mimic what you want for your live enterprise system. All the vendors you want are interfacing to the fullest capabilities of their individual solutions. The reality is that through this process you have found features that do not exist or do not work as you expected. These features are either currently under development, scheduled for a future release, or no plan exists to develop these features.

Do not leave your vendor(s) responsible for documenting these features, and do not expect they truly understand your business requirements. When you have the complete list of required features that are not working or missing, document both the requirements and use case of how these features will be used. This is an important point, as generally the requirements for these features are loosely worded. The vendor will interpret them and develop something that may not be what you want or need. You want to avoid this by getting a very detailed use case documented for each feature. Recognize if you get something you do not want, it is both your fault and the vendors as neither party did due diligence.

The other big reason you want all of these features documented in detail is for contract negotiation and success criteria.

Get beta feature requirements and dates in the contract.
If you have required features that do not yet exist (and you will, specifically with interfaces from vendor to vendor), these features need to be outlined in your vendor contract(s) with commitment to dates and software versions. Many vendors will attempt to avoid this completely, and some may simple refuse. It will be a negotiation and some of your required features will get negotiated off the table. Set your expectations low so you are pleasantly surprised when you get more than you expected.

It is important that the contract point to the use cases that you created in the previous step. You want no ambiguity on what is delivered by the vendor. Now, you may be saying to yourself this is all great but you have vendors who defaulted on their contractual commitments in the past. If you are concerned about this, the best option is to create payment stipulations in your contract tied to each feature. But this must be a win-win situation. Generally vendors invoice you at the end of the project and you pay them upon project completion You can create incentives to complete contractual features by tying delivery of features to progress payments for services and/or software provided. Adding these stipulations to the contract means you may be paying your vendor earlier than normal (win for them), but it also adds the stipulation that you will not pay them some portion at all if they do not deliver (win for you). I may do a separate post on this subject at a future date, as it warrants a more detailed discussion.

Prioritize order of software implementation.
The timeline of your contract negotiation may have some affect on the order of software implementation, but this is a topic that needs careful consideration. This is an easy decision if you are only implementing one enterprise solution. But if your enterprise project has multiple solutions the order they are installed is important. In my experience there is always a right order, and there will be dependencies. You should have a good idea of the order based on your lab setup experience as well as the interface diagrams that you created. But if not my rule for implementation order is based on a single question.

Is the solution primarily used for finance, operations, or reporting?

This is an important question as finance solutions generally should be installed first. A solution may be used in all three areas, but it's primary purpose is the point. The reason finance software should be installed first is the setup will trickle down to the setup of operational systems. Defining financial standards in operational systems may lead to limited functionality of your financial systems. Also, reconfiguring your operational systems creates a mess of problems you want to avoid.

Here are some examples of how I categorize some standard hospitality technology solutions.

Banquet & Catering – Operational
Business Intelligence – Reporting
In Room Services – Operational
Loyalty & CRM – Operational
MRP& ERP – Financial
Point of Sale – Operational
Property Management System – Financial
Purchasing & Inventory Control – Financial
Reservations – Operational
Security & Surveillance – Operational

Prioritize order of site implementation.
Again, this may be an easy decision if you have only a few sites. But for companies with many locations this decision can either positively impact or kill your project. The tendency is to have the first site either closest to corporate or the site with the most experienced/tenured staff. In reality these are poor qualifications for the site that will define your initial success. Very experienced/tenured staff can be very reticent to change, which you want to avoid. Venues in close proximity to the corporate office generally have extra pressure because of consistent visits and tours, and creating additional pressure with a new technology system is not fair to the staff. My experience is any problem at a site already under the microscope of corporate is just exemplified. With a new technology system you will have problems that need time to resolve. Install sites close to corporate once you know things work. It will be easier on everyone.

Really it is only the early phase of the project where the order of implementation is important. Look for locations that meet these qualifications.

You want a site where employees are accepting of technology and proficient at it. Generally this means you need to look at a location that is within close proximity to a major university. But you do not want a transient staff. Continuous training at your pilot location is especially troublesome when trying to define operations.
Chose a site that is easy and affordable to get to. Your staff and vendors need to be able to reach the location quickly without breaking your budget.
It is important to have as staff that experienced with your current operations. But as previously mentioned the most tenured staff is not necessarily best.
Choose a site where the infrastructure can be updated if required. Older properties can make getting a new cable run almost impossible. Newer locations have been designed to accommodate newer technology.
The property should be low season during implementations. A really busy property will mean the staff is really busy with other things, which means your technology solution implementation is not the most important thing. For much of the staff in needs to be the most important thing.

The most important order of implementation decision is which location will be your pilot site. This site will define the process for future implementations and ideally be the standard for implementations moving forward. It should meet each of the above qualifications.

Install pilot location.
Now that you have your pilot site chosen it is time to move into implementation phase. However, my advice is to have your lab installation setup with the software versions and features that you are going to install at the pilot location. The lab should be used as the template for installing the pilot location. Implementing a handful of new features during the pilot is a dangerous gamble that can create major problems. Management from locations communicate with each other, and any significant problems encountered at the pilot site will be passed around the management community. From a momentum standpoint you need the pilot to have minimal problems.

Your pilot site should have three major goals. First is a technical proof of concept in the production environment. This means that you should not move past the pilot project until all software solutions are installed successfully. Second is documenting installation standards and procedures, and third is confirming operational corporate standards that were documented in the first step of this process.

Document standard installation procedures.
Documenting standard installation procedures is worth a more in depth conversation because it will save you time, money, headaches, and heartache. Whether you, a contractor, or your vendor completes this is up to you, but it is vital to your project success. It will cost time and money to do, but is worth doing. The main reason is that resources on your project will change. Knowledge transfer is simple when it is written down. You will most likely have standards document for each technology solution that you install.

This document should read like a manual for someone that knows nothing about you business or your technology decisions (this is probably not possible but a good goal). Here is what the table of contents would look like to give you a head start.

Project Overview
Business Case and ROI (if exists)
Project Stakeholder Contact List
Project Team Contact List
Project Communication and Escalation Procedures
Architecture Diagram (including interfaces)
Planned Installation Timeline
Installation Prerequisites and Milestones
Configuration Standards (may reference a template database)
Standard System Files
FAQ (list of commonly found problems with resolution)

If you have additional questions that were not addressed in this series feel free to send me an email or post a comment. Good luck with your technology decisions!

For more information about kevin sturm Consulting please visit my website.

enterprise software, hoax or holy grail – part two

2007-12-27T14:32:00.001-08:00

This is the second post in a three part series on enterprise software solutions.
If you have not read part one you can see it here.

build your requirements document.
You've made it this far, so now it's time to dive deep into the viability and validity of your prospective solutions. For venues implementing a standard technology system this could be the normal RFP process that is common (read more below why I do not like RFPs). But if you are implementing a large scale enterprise system, specifically with multiple vendors, it is now time to discover how well you did your leg work and if all your prospective vendors were completely honest with you through the early discussions.

Most venues, with the possible help of a consultant, will build a very long and wordy RFP. That RFP will be sent to all prospective vendors with a timeline for completion. I recommend to avoid this process. The venue or consultant will spend hours and dollars building a thorough RFP. When prospective vendors receive it, they filter it through a process where it first goes to a marketing person that generally has minimal knowledgeable of what the system can and cannot do. This person reviews the questions and pulls answers from previous RFPs or from an RFP Library that has been built over time. Any questions that do not have standard answers will then be delegated out to prospective parties for answers.

When all questions are answered the RFP will be sent through a sales or marketing resource that reviews it to ensure there are no answers that will prevent the vendor from getting further into the sale. For answers that are obvious disqualifiers careful wording will be used to ensure ambiguity. I am not saying this is all vendors, but I have never found one that did not word answers to their benefit.

My recommendation rather is to build a Requirements Document. This is a table of features that compiled based on research of both technical and operational requirements. From the work you have already done it should be simpler (though not quick) to build this. Group features logically, but only you should know at this point which are required, highly desirable, or nice to have (this helps you get an unfiltered response from the vendor). Your goal is to have “Yes” or “No” answers. Avoid wording where “Yes, but...” could be used as a response.

An example of why I like a Requirements Document versus an RFP is outlined below using a common POS function.

An RFP might say, “Please outline how your system handles transferred checks between employees and how revenue is tracked.” This is not a bad question, but allows for all kinds of interpretation. A Requirements Document has a list of features associated with transferring a check:

A check can be transferred from one employee to another by a manager at the POS terminal with employees present.
A check can be transferred from one employee to another by a manager at the POS terminal without employee present.
Ownership of a check can be transferred by the current owner to another employee without manager intervention.
Ownership of a check can be transferred by the current owner to another employee with manager intervention.
Ownership of a check can be transferred by the receiving employee pulling it from the current check owner with manager intervention.
Ownership of a check can be transferred by the receiving employee pulling it from the current check owner without manager intervention.
Revenue associated with a transferred check is always assigned to the employee that owns the check at tender.
A check can be transferred from one revenue location to another after items have been added to the check and saved.
Revenue from a check that is transferred will be associated with the revenue center that the check is closed in.

It should be immediately apparent that this will be time intensive process. But if you compare this upfront time against reading all the vendor responses and figuring out which vendor has what you want based on those responses my experience is this is a better process.

When you get your Requirements Document back from each vendor you can quickly create a single table with all responses and have a simplistic view of which vendor(s) best meet your need. I'm going to end this section here to avoid a detailed post on the system evaluation and selection process. It is more commonly understood, but I may cover the process in a future post. You can email me if you have a specific question on how to build a Requirements Document.

build a lab.
Making the assumption that you have made your vendor selection(s) and are ready for install, it is time to move to implementation phase. But before you jump directly into the deep end and install your enterprise solution(s), you best bet is to build a lab. For clarity, I am referring a test system to prove the viability of your selection(s). Your lab system should mimic your planned production environment as closely as possible, taking into consideration hardware requirements, network setup (i.e. VPN, LAN/WAN/VLAN, dial-up, etc.), and interfaces. The one exception to this is if you selected a hosted solution. When possible have the lab installed at your location. Hosted labs generally come with limitations that will prevent you from having control over testing and timeline.

The lab step is critical to your success and control in the contract process as well. You may be asking, “How does a lab affect the contract?” Your contract at this point should be specifically for the lab. This type of contract is common, but many vendors do not offer this direction because it increases the sales cycle and increases the risk of having to commit to features in a final contract. So your contract at this point needs to be solely for a lab. However, make sure you have wording in this contract to not pay for software licenses twice. Negotiate to pay for software licenses only in the production system. You should however purchase a support contract for both your lab and production environment so you have full technical support of your lab.

An important point not miss is your lab needs to include all the enterprise systems you are installing. This was the reason for diagramming interface points and system architecture early in the process, ensuring interface functionality meets your requirements. During this process document the installation and configuration step of each solution for production implementation. This will save you time and headache when your business is dependent on getting in right he first time. Another benefit to building a lab.

In short there are two main reasons to implement a lab.

Ensure the enterprise solutions you are implementing will interface smoothly based on your operations and requirements.
Discover any feature gaps that must be resolved before moving into production. Generally you will find these, and you want to find them now versus in production.

From this information you should now be able to make a final decision if you can move forward with the vendors you have selected. Part 3 of this topic will review documenting feature development requirements, contract language, and implementing your enterprise software project.

For more information about kevin sturm Consulting please visit my website.

first check!

2007-12-23T13:19:00.001-08:00

I got my first check for kevin sturm Consulting in the mail on Friday. The first of what I hope will be many...Yeah!

enterprise software, hoax or holy grail – part one

2007-12-20T13:47:00.000-08:00

This is the first post in a three part series on enterprise software solutions.

“It's an enterprise software solution.” This has become a loose and liberally used term by hospitality technology vendors and hospitality venues. It is for many technology vendors the everything feature, used to answer questions about consolidated ad-hoc reporting, multi-layer configuration, shared data elements, and next generation architecture and interface support. “Yes we can do that, it's an Enterprise solution.” But the reality for most hospitality venues seeking the Holy Grail of enterprise systems is very different. Implementing a single enterprise solution is a complex task. Implementing multiple enterprise systems is difficult at best and may be impossible for some if not carefully planned and executed.

I consulted with a client who a few years back purchased a number of Enterprise software solutions with promises of decreased food cost, better financial reporting, improved menu analysis, and lower system support costs. They chose well established vendors with proven track records, working with each vendor to implement the system to take advantage of it's enterprise features. But like many other venues with similar initiatives, they found the project to be highly complex with problems the vendors had not prepared them for. The current outcome of their initiative was to remove one solution all together, delay the implementation of other solutions, and focus on retrofitting a single Enterprise system to meet business needs.

For some venues installing multiple enterprise solutions is not currently a reality, but for others it can be accomplished with a well planned project and diligent management of the the individual sites and vendors. Venues currently planning on migrating or replacing disparate technology solutions with one or more Enterprise solutions must consider these items before selecting a vendor(s).

research and document technical and functional operations.
Before choosing an Enterprise solution it is important to ensure that you can feasibly implement an Enterprise solution. This will be different for each type of venue, but four important requirements are network architecture, security permissions, site operations, and financial reporting needs.

Most enterprise solutions require some form of network solution that connects all sites, and many vendors them will request a dedicated or isolated network. In this day and age it would seem simple to get Internet access with all the options, but time and again venues (especially remote venues) find that Internet access is difficult if not impossible to get. For many a T1 or Fractional T1 is the only option, which can break the budget of many technology projects. To add complexity to the situation, your security team is waiting to tell you all the reasons the desired solution will not meet security standards. If it is not documented already, request Information Technology (IT) to document permission and access protocol for your network, and involve IT in the process of selecting your system.

If you are contemplating an Enterprise system it often means you have multiple locations spread out over a geographic area. And unless you are McDonald's each of these locations have defined their operations and are reticent to change. It is vitally important you understand and document these operations, from the front end user to the detailed reporting procedures used by finance. Be diligent in asking for any “customizations” that individual sites have made to their existing solutions. Pay special attention to finance since most established finance teams have custom spreadsheets or macros that have been created to work with their existing system. Interrupting this process without a replacement plan will not only create project delays but unhappy employees.

evaluate and change your operations.
When you have documented your operations it is time to make some hard decisions. One of the most difficult projects to undertake is deciding on your corporate standards. It is actually easy at corporate, but difficult at the site level. Management at individual locations are never excited about operational changes, and are often not willing participants. The success of your project(s) weighs heavily in the hands of local site management, and their participation is vital. Decisions need to be made in advance of your technology decision so that data requirements are understood and planned changes to operational processes documented.

Once these decisions are made, it is important to mandate the planned changes. Customizations at the site level will kill your enterprise project with poor transactional data. A top initiative of your Enterprise project should be to ensure quality data is being stored. Lots of operational procedures will ensure lots of disparate and duplicate data in your system.

understand hierarchy of data elements.
Now that you have your general operations down, you can begin to document the important data elements. These data elements are important for two reasons. First, they are the back bone of your reporting. It's the old adage of garbage-in-garbage-out. If you don't understand the data going it, the data coming out won't make sense either.

Secondly, data elements will be the measure to understand Enterprise hierarchy of your technology solutions. Pay attention, because this is important. Enterprise solutions are based on a hierarchy of data elements. For example, at the most basic level they will have a hierarchy of the business.

Corporation – Ownership Entity
Business – The actual business
Region – Sub definition of Business
Site – Physical place of business

Not all technology solutions will have all of these data elements, but most will have some subset. This however is the most basic hierarchy of an enterprise system. Each data element will then be associated with one or more of the above data elements. Some examples of sub-data elements are employees, revenue types, revenue centers, inventory items (whether food, rooms, tables, or people), and point of service (POS) devices.

When reviewing your technology options request a detailed data hierarchy from all prospective vendors. If they do not have this information, demand it. It is too important to your success to overlook. If they cannot provide it, then they are not worth evaluating.

diagram interface points.
If you have completed all the above successfully, you have done the easy part. You understand the operational requirements, documented important data elements, and have information on how your prospective vendors define those data elements. As great as it would be if technology vendors designed their architecture with other vendors in mind, they did not. They designed them with release dates, internal initiatives, and other customers in mind. Each data element from each vendor is a puzzle piece and the puzzle pieces must fit in order see a holistic picture of your data.

Careful attention to this step will make or break the success of your enterprise solution project. It is also important that someone with a strong technical understanding be involved in this step. Enterprise projects succeed or fail on how well the data elements fit together. I recommend putting together a simple table that creates a single view of how these data elements fit together. Having this information in a single view defines how each vendor's hierarchal structures complements and contradicts each other.

For example, if your Point of Sale (POS) solution defines revenue centers at the lowest level and your Property Management System (PMS) defines them at the highest level an interface architecture needs to be implemented to ensure maximum benefit is achieved from each system.
You've now made it to the vendor selection process. For tips on Enterprise Software implementations read Part 2 of this post.

For more information about kevin sturm Consulting please visit my website.

how promotable/marketable are you?

2007-12-19T09:18:00.000-08:00

The other morning I was having coffee with my sister-in-law, Cara, discussing her current job opportunities. She is an up and coming tornado at Anthropologie and is now ready for the next big thing. In our conversation we talked about what employees that quickly get promoted do. Obviously there are the qualities of hard work, enthusiasm, knowledge of the business, years of experience, leadership, and such. But in most companies that is not enough, or at least not what is going to get you moving quickly to the next big thing.

In my experience there are a three lesser discussed things that can have a huge impact on your promotability. There are more than three even, but for brevity I'll focus on three.

stop asking what qualities and experience is needed for a promotion
As a manager I had an endless number of conversations with employees who would ask me, "What are the traits you look for in a <fill in the title>?" This is a bad way to approach it. The question worded this way tells the manager you don't believe you are ready for the promotion but would like to be considered at some point in the future.

Instead of asking this question do some research to understand the position that you want and then meet with the manager to inform them that you want the promotion. Point out all the areas that you have the experience, qualifications, and successes to be great at the job. Outline how you specifically could add value to the organization in this new position. Then, if need be discuss what specific areas you need experience in before being qualified for the promotion, and ask the manager what opportunities exist in the near future for you to get the experience needed.
leave your personal finance choices out of the discussion
Most employees seek out a promotion or pay increase because their personal financial situation has changed and they need to make more money. Probably 80% of employees that asked me for a promotion or raise had this as a major point in the discussion. This is about the worst way to go about getting a promotion. It tells your manager you are spending money you don't have! That is a big red flag because it means you may not be as responsible as you should be. Additionally, don't make the focus of your discussion what Salary.com says you should make. Unless you are working for a Fortune 500 company that pays at the top 10% it is not a realistic comparison.

A conversation about compensation and promotion needs to be focused on what you specifically do or will be doing to increase current revenue production for the business. If you don't know how you are doing this, you have no business asking for a promotion.

I once had an employee ask me for a salary increase and promotion with a breakdown of what affect his current salary had on the percentage of gross margin for the department, how his specific performance was increasing company revenue by tracking his revenue performance for 6 months, and that his requested increase would affect less than .1% of current gross margin for the department. He then outlined how he would further increase his revenue production, and how the increase would make him feel more valued for his hard work and his job would be more enjoyable. I gave him the promotion affective immediately, without even getting approval from our CFO. I knew that with that level of detail the CFO couldn't even say no.
stop waiting to get recognized
When I left my last company they asked me to complete an Employee Exit interview. One of the questions was about how often I got feedback from my manager.

How frequently did you get feedback on your performance? What were your feelings about them?
I received feedback almost every year during my normal performance review. I generally found they were informative and provided good feedback and opportunities for improvement.
How frequently did you have discussions with your manager about your career goals? What are your feelings regarding these discussions?
As often as I initiated and felt it was needed. However, I think employees who receive the best feedback seek it out versus wait for it. Generally those who wait patiently for recognition and guidance end up feeling slighted, abused, and unappreciated. I am a firm believer that opportunities are created and taken not given, and corporate recognition is directly related to how well you market yourself.

Recognition in the work place is like dating. If you're a wall flower it's tough to get recognized. If you are waiting for someone to give you pat on the back and a promotion for a job well done, you most likely feel like you work for a company that doesn't reward hard work, you often feel abused by the company, and that the company always says great job to other people but never you (there are companies out there that reward hard work all the time, I worked for one for a while). If this is you, stop waiting to get recognized and point out the value you bring the organization. Most likely the employees that always get recognized are self promoting while you are waiting for someone to notice you.

the freedom to fellowship

2007-12-12T12:53:00.000-08:00

One of my favorite things about being self employed is getting to fellowship with friends in the morning over coffee. This morning I got hang with DJ at his SWEET pad in Santa Barbara. This place is seriously amazing because it has a view that is unique even in Santa Barbara. You can see Ventura and north Goleta practically. DJ and I were going to meet at Whales Tail downtown but we decided to have breakfast at the Freedom House instead. Crystal (his personal assistant) made us an amazing breakfast of French toast coated with corn flakes and almonds. It was 5-star style eating, plus we ate on the patio (which DJ had never done!) and had an amazing view to go with the amazing meal. Thanks Crystal! We also had mimosas with Dom Perignon that was left over from a get together the previous night...livin' the high life!DJ and I talked about how much fun it was to be able to just hang out in the morning to do what we felt was important (which may be to work, read, or fellowship) versus rush to be at work at 8:00 am. I really feel so blessed to have the freedom to do this and have friends like DJ to hang with and enjoy time together.

The view from DJ's patio as displayed by my iPhone!

my new experience phone

2007-12-10T23:29:00.000-08:00

It was my birthday this past Friday. I turned 32 but I still feel 28. 28 is a good age I think.

My wonderful wife Chrystal (and my parents) surprised me with an iPhone. This is my 3rd PDA phone and it is by far the best. I'm a recent mac convert (switched when they went dual core processor) and I love the experience. Apple knows how to deliver an unparalleled experience.
Thanks sweetie for the best phone ever made!

the challenges for hotels in web 2.0

2007-12-10T12:54:00.000-08:00

As a frequent traveler this video makes me want to throw-up. I've stayed at each of these brands multiple times and drank from hotel drinking glasses bunches of times. I'm always a little wary of the bedding and check to ensure it appears clean (I once found dirty underwear in my hotel bed!), but I've never found the glasses to appear dirty.

In the world of Web 2.0 everyone needs to be more diligent regarding the level of service they are providing to their customers. I doubt this news story was some random idea. I'm betting they got tipped off which means management at some level knew it was happening. Web 2.0 technology will continue to be a benefit to hospitality venues when used advantageously, but the true value is yet to be seen.

Never Use the Glasses in your Hotel Room

review before you replace

2007-11-27T10:46:00.001-08:00

The technology system you bought a couple years ago has never really met your needs, nor has your vendor ever delivered on the commitments they made during the sale. Sound familiar?

This experience often seems to be the majority for hospitality venues, and like many others you are contemplating investing in a new system. Your vendor does not seem to want to fix the problems and you are not sure they can. But before you go down the road of new requirements, RFPs, budget allocation, and the infrastructure investment of buying a new system it is worth your time and money to “Review Before You Replace”.

After almost a decade of replacing technology systems, working with venues to fulfill sales commitments, and minimizing the interruption of a new installation my experience is 65% of venues ended up having the same problems with the new vendor. The reasons for this are generally not the fault of the vendor. Usually it is a number of steps were not and have not been done by the venue in ensuring the software they purchased meets their needs. The reality is 80% of the features in competitive technology systems are the same, and the unique 20% are a very specific set of features you probably do not need (the exception to this may be in system architecture). It is highly possible that replacing your system is just a really expensive way of buying the same problems.

Before you replace your system go through the following exercises as a due diligence effort. If after these steps you find that your current system does not meet your needs, you will already have most of what you need to begin the replacement process.

Define your needs versus wants.
Define exactly what you need from your technology solution and then define what you want. You will most likely find that many of your needs end up in the wants column and some of your wants end up as needs. Prioritize the needs and wants separately as high, medium, or low. The exercise of prioritizing them will also help you organize the needs versus the wants.

This process should include multiple users of the technology system with input from different functional areas (i.e. finance, f&b, information technology). If this process is accomplished by a single group (read information technology) it is a worthless exercise.
Review the list with your internal expert.
Have your internal system expert review this list and recommend system changes to meet these requirements. If no one in your company can do this then you will never be happy with any system you have. Like it or not, someone in your company needs to be a 'super user'. If you believe the system you bought does not require someone in your organization to know how to use it intimately then I believe you will never have a solution that meets your needs. (Step 5 is part of the solution this problem.)
Review the list with your vendor.
Meet with your vendor to review the list together and request they respond to each need and want. You should have filtered out the items you already know can be met at this point to save time for everyone. Most likely you can work with Customer Care or Technical Support and go through this process without paying for a billable service. You are not actually installing anything new, but optimizing the use of your existing system. If your vendor responds that this is a billable service then you may be better off going with a different vendor. The vendor has to want the system to work for you.

For this step to be successful the vendor must provide a resource that is an expert in your vertical and on the software. Demand this as part of the process and do not settle for a resource that has to escalate to another person to answer every question. A first level (or even second level) support resource is most likely going to be a waste of time for you. For this to work in a timely fashion you need a resource with two years of experience.
Require your vendor to outline how to make changes.
After getting a response for every item on your list from the vendor request detail on how to implement the changes for your system. Recognize that these changes may require you to change operational procedures. No off the shelf system is going to match exactly how you run your operation. If you want a system that does you will need to build it from scratch, and that is way more expensive and troublesome than changing operations.

Review the notes from your vendor in detail with your internal system expert (super user) and ensure they understand how to implement both the system changes and operational changes. At this point you will probably find a new system is not required, but if you do the requirements have already been defined.
Invest in training.
If your 'super user' cannot implement the changes without assistance invest in training. My experience is one of the biggest reason venues are unhappy with their investment is they skimped on training. If you are looking to cut costs in your project do not cut training. Your entire operation will run smoother when everyone knows what to do. The analogy I use here is learning to drive a golf cart and then assuming that you can drive that golf cart in rush hour traffic on the freeway. You will probably cause an accident. If you do not you will succeed in causing road rage.

The training should be catered towards implementing the changes to meet your needs. Do not let your vendor waste your money by delivering a canned curriculum that only covers half of what you need to know. Demand a custom curriculum be delivered in advance of the training so you can review it, and demand the trainer have expertise in your market and on every feature you are going to implement.
Build a plan to implement the changes.
When training is complete your super user should know how to implement changes to the system and to your operations. Build a plan on how to implement these changes. Chances are some changes will be dependent on others, and some may need to be planned around other existing events. For example, if a change will alter how your reports look you may want to wait for the end of the fiscal period. This will make running historical period reports simpler.
Create a feedback mechanism for system users.
When you have made the necessary changes to your system implement a feedback process for your users to request system or operational changes to improve efficiency. The people using the system everyday have great ideas on how to make it better. Take advantage of this and earn some good will in the process. Acknowledge employees if their recommendation is implemented and has a positive effect. This will increase the satisfaction of your employees which in turn will increase the satisfaction of your guests. And that really is the point of all this work.

By Step 4 of this process you will know if the right decision is to keep your existing system or replace it. However, vendor deception is the exception to this. If you vendor has not been honest in this process you should discover this in Step 5. This is the primary reason for a custom training curriculum versus canned content. And if your vendor lied you have a pretty valid argument for denying payment for training. This process may seem like a lot of work, but it will be less expensive than buying a new system.

If you found this article helpful, have questions about this post, or want to add insight into avoiding the high cost of system replacement please submit a comment. We can all learn from each other.

For more information about kevin sturm Consulting please visit my website.

don't steal my stuff

2007-11-27T10:19:00.000-08:00

hospitality technology made simple (htms) Legal Mumbo Jumbo
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htms is not be responsible for any failure on the part of any linked websites to comply with any privacy policy posted on this website, or any contractual or other legal obligations to which the operators of such website may be subject. I will always attempt to remove comments which dumb people link to websites which may contain material not suitable for minors (or adults). If for some reason I do not catch one quickly email me, call me, or comment and I will remove it post haste.

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htms content and features may be updated, revised, modified and supplemented. I reserve the right to change the information, features, policies, promotions, disclosures and disclaimers at any time. Changes to this Legal Mumbo Jumbo will be posted on htms with a date in the post. Please check Don't Steal My Stuff periodically for changes. At the end of this Legal Mumbo Jumbo I indicate the date of an update. If you continue to use htms following the posting of changes to this Privacy Policy it means you accept the changes.

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Updated February 29, 2008

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deliver for a dollar

2007-11-17T21:51:00.000-08:00

I'm on my way home from my first client trip as an independent consultant. I was at Microsoft's office in Seattle for three days (never saw the sun).
I was working out of the R&D building and tried to see the latest Microsoft Surfaces demonstration but no luck. I didn't even get to see the current one. Most of the things going on in the building we won't see for 10 to 15 years (or so I was told). How do you plan for technology products 10 years in advance? With as fast as technology changes that just seems unrealistic...but I suppose somebody has to do it. There were also supposedly 30+ researchers with PhDs in the R&D building! That is a whole bunch of brain power.

Most of the offices are in Redmond, WA and the entire city is pretty much Microsoft. From what I was told Microsoft employs 45,000 people at the Redmond campus! That is almost half the population of Santa Barbara! And the campus is pretty amazing. They have multiple soccer, football, and baseball fields, indoor and outdoor basketball courts, and all sorts of other fun stuff.

I was there to oversee the implementation of eMenu, a software that will allow all Microsoft employees to order lunch via the company Intranet and have it delivered to their desk. Seriously.

You can check out eMeu here, but don't order from this site because this place actually exists in NY. Microsoft has the most amazing company cafeterias with awesome food and now they are offering to deliver your lunch for $1.00 (plus the cost of the food). I think that is awesome because I'd take a lunch break to go work out and then have my lunch delivered to my desk and eat it there (in the scenario I had an office of course).

James, the Microsoft analyst I did the install with, had a futon, big screen TV, DVD player, Xbox and Wii in his office! It was complete with a small movie and video game library. How would you ever get any work done?

Microsoft's countdown to release clock

dinner of the traveling type

2007-11-14T17:14:00.000-08:00

Sometimes when I travel the thought of airport food just isn't appetizing, so the free food in United's Red Carpet Club turns into dinner. Crackers and cheese with carrots and ranch dressing washed down with a Coke. Chase it with a chocolate chip cookie...who could ask for more?

tools

2007-11-12T21:29:00.000-08:00

Coming Soon!

This section will link to different template documents and tools for consultants and venues working on technology projects. Keep checking back for updates!

eXtreme marketing

2007-11-12T20:17:00.000-08:00

Marketing is hard. Really. Once you are uber successful I'm guessing it gets much easier, but before that point it's hard. When you don't have a huge customer base all blabbering on about how brilliant you are the only option is to self blabber about brilliance.

I've spent the last two work days self marketing. Whether cold calling, emailing, requesting references via LinkedIn, or getting my new blog (to be announced soon) together. This is all pretty much standard new business stuff though and comes with the territory. It's one of those things though before you start you think, "I've got a huge network, I'll get business." (at least that is what I thought). The reality is that it is a long ramp and you have to claw for every opportunity. Nobody starts at the top. People may indirectly reference you but most likely they are not looking for business for you or from you.

I am a true believer that word of mouth marketing is king (especially in my business). But, if you can't tell one great story about yourself no one else will be able to either. To get one big deal someone has to believe that you can be successful with that big deal. And if you have no references for your greatness then you must become your own self reference.
This post was prompted by an absolutely outlandish extreme marketing example I saw in the Starbucks parking lot today. Check out this guys car. He caught me taking pictures of it which was pretty funny. He acted like it was a totally normal occurrence, which was more funny.

chicke little and the sky catcher

2007-11-07T09:23:00.000-08:00

My dad used to always say, “If you're not part of the solution you're part of the problem.” (though the saying is generally credited to Eldridge Cleaver). I've tried to take this philosophy with me to every project and believe it is a good rule to live by. For the sake of clarity I'll define this as being a person that brings solutions not problems (hugely insightful I know).
Everyone has been on a project with someone that has “Chicken Little Complex”. They bring up every possible pitfall in the project, why ideas won't work, and regularly send emails to the project team when pending disaster is inevitable - leading everyone on the project in a fire drill effort that generally could have been avoided (i.e. Foxy Woxy's hole).

As a project manager we strive to be the antithesis to Chicken Little. I call this person “Sky Catcher”. I've held this title on projects multiple times in my career. Sky Catcher is the person on the project that objectively looks at each situation and offers solutions to problems, but more importantly becomes the person that helps advise Chicken Little.

Imagine how different the story would be if Chicken Little was productively educated by Henny Penny on the elemental nature of the atmosphere, the concept of gravity, prompted with ideas of what could have hit her on the head, and more importantly the danger of “forest frenzy” due to adoptive apprehension.

If you have a project team member with “Chicken Little Complex” make it your personal duty on the team to be “Sky Catcher”. Provide solutions but also help prevent others from only bringing problems. Most likely you will find yourself in the position to offer advice often and may just find yourself leading the charge on more projects.

seven steps to success

2007-11-01T23:29:00.000-07:00

My friend Nazia sent me a "Tip of the Day" email with some wise words from Dr. Mark Goulston Get Out of Your Own Way at Work) on things you should know the answers to when starting your own business. If you want to start you own business make sure you have an answer to these questions.

What do you love making (product) or doing (service) that has enough value that other people would be willing and want to pay for (your DREAM)?
What desire or problem is your product (what you make) or service (what you do) the best answer or solution to (your VISION and MISSION)?
What people or what company has a desire or problem that most urgently needs your product or service, i.e. who are the ones that "Gotta have you!" (your MARKETING)?
How do you get those people or that company to be aware of their urgent need for your product or service (your ADVERTISING)?
How do you convince those people to buy that service or product that they "gotta have?" (your SALES)
How do you get your product or service to those people or that company (your PRODUCTION and DELIVERY)?
How do you continue to increase the satisfaction and enthusiasm for your product or service, so they'll tell others (your CUSTOMER SERVICE)?

do you have different types of ethics?

2007-10-26T11:17:00.000-07:00

Yesterday I had the pleasure of speaking at Westmont (my alma mater) to the Business Ethics class. There were even a few pre-med students in the class so they got to hear the story of a doctor bound student who took a different road.
In preparing some material I began to formulate some questions regarding having multiple types of ethics. I asked the class, "Have you heard of Marriage Ethics, Sports Ethics, Driving Ethics, or Raising Kids Ethics?" They all said, “No.” But they were taking a class called “Business Ethics”. Why do we have an entire subject dedicated to Ethics in Business?

Yesterday morning I had breakfast with my college coach and we were talking about how it is often easy to justify a different set of ethics in sports. A similar example came up in my conversations with the class when one of the students talked about the last World Cup the USA Women's soccer team won. I had not heard this but the USA goal keeper had stopped a shot during a shoot-out that won them the game. After the game was over a slow motion replay showed the goal keeper steeping forward towards the shooter. In soccer this is illegal as you can only move laterally to stop the ball during a shoot-out. In keeping with a single sports theme, would you slide tackle someone in soccer knowing you could not get the ball to keep them from scoring?

If you knew it meant the difference between winning or losing the World Cup would you take a step forward? It is cheating and against the rules, but could you justify it for that? I don't know if the goal keeper did it on purpose or accident, but she did break the rules.

As a separate example if it meant paying the rent or not paying the rent, would your normal ethical actions change? Do your ethics change when you have more to lose?

During my research I found a quote that my buddy DJ had told me a while back from John Maxwell and made it the topic of discussion with the class.
“There's no such thing as business ethics—there's only ethics. People try to use one set of ethics for their professional life, another for their spiritual life, and still another at home with their family. That gets them into trouble. Ethics is ethics. If you desire to be ethical, you live by one standard across the board.”

The discussion in class was great and they really had awesome insight. Way better insight than I had during college. They even asked me some questions that I had not thought about with regard to a few personal experiences I shared with them. The short of it came to the fact that when there is more at stake you are more willing to move the ethical line. I even got a question during one of the discussions from a student asking if there was any way to “spin” a message so that it did not seem so bad. He didn't use the term “spin” but I think that was the underlying question. It is the dilemma of a whole truth versus half truth. If you tell half the truth does it cancel out not telling the whole truth, and is a half truth more ethical when there is more at stake? I say no, but my experience has showed me that when more is at stake what is ethical becomes hard to see.
I have not read John Maxwell's book, but his underlying premises is The Golden Rule still applies to life. “Do unto others as you would have them do unto you.”

Thanks to moms around the world (especially mine), you were right.

care enough to be different

2007-10-26T00:01:00.000-07:00

A couple weeks ago an old coworker, Kelly Oshiro, contacted me through LinkedIn, which is just rad because we had not talked since she left Santa Barbara. The world being so connected is really wonderful.

Kelly and her boyfriend Sam just moved back to Santa Barbara and Sam was looking for a job. Kelly wanted to know if I could possibly provide any guidance. On Tuesday I met with Sam and it was awesome to meet someone so passionate about what he wants. He is a natural product evangelist and I know will be supremely successful.

We talked about what kind of job he wanted, the type of company he wanted to work for, and what was important. He knew what he wanted, but was making one of the biggest mistakes I see when people are looking for a job. His resume was normal, totally normal. Normal equals boring and unmemorable and when applying for a job you want to be remembered. Here was the basic format of Sam's resume.

Sam's resume looked like 99% of the resumes I've seen. He was using one of the common formats, which means his resume was not unique or rememberable because almost everyone is using those formats. If you want to

If you are putting together a resume there are a few big DOs and DON'Ts to keep in mind.

DON'T copy the exact format of the sample resume you are using. DO care enough to personalize the style of the resume making it different. Different gets remembered.

DON'T list bullets of what you were responsible for at each job. Frankly I don't care what you did, I care what you accomplished. Accomplishments should be measurable and show you you improved the company in some way. Here is a good example from Resume-Resource.

DON'T send 20 resumes that are generic to 20 companies. DO want a job bad enough that you spend time customizing the resume for the job you are applying for.

DON'T list your GPA unless you had a 4.0 and just graduated, and DON'T put it at the top of the resume.n DO list all education and certifications that are applicable to the job you are applying for.

DON'T list “Proficient in Word and Excel” if you're applying for a job that assumes you are. For most jobs it is already a requirement to know these applications. DO list applications that you are proficient in that are unique (i.e. Perl or Java) and make you remembered.

DON'T list an “Objective” that says something like, “To get a job and an exciting company in the IT related field.” DO create a “Professional Summary” that is basically your elevator pitch on why someone should hire you.

DON'T make it one page and hard to read because of information overload. DO instead increase it to two pages so it's easy to read, but put all the stuff you really want them to see on the first page.

DON'T write a cover letter to “Whom It May Concern”. DO enough research to find out the name of the hiring manager or recruiter in HR and direct your resume to them.

DON'T ever not apply for a job because you think you're under-qualified. DO take a chance and try to get a job that may be your next big move.

I could probably go on and on, but that seems to be good enough for now. Happy resume writing!

last day

2007-10-19T14:49:00.000-07:00

And I got this fortune in my fortune cookie today. No Joke! How awesome is that?

watch out for falling rocks

2007-10-11T12:54:00.000-07:00

I’m off to a rocky start.

A week ago was supposed to be my last day with Agilysys but I elected to extend my employment. I’ve been managing a large project for six months with a major account that has gotten delayed by one month, and after review decided it was better to not transition the project. There are a few reasons for this, all of which have something to do with hoping to get future business through my own company with the group I’m working with. Additionally the person it would transition to is a really great friend and already loaded with projects.

When I first announced I was going out on my own there were immediately some very large opportunities that came my way. Two of these projects were a year or longer and would have generated over 75% of my income for 12 to 18 months. One of the projects fell through a month ago because the company hired a hotel management company and the other fell through today because of a possible merger or buyout of some kind.

I found out about the second one by breaking one of my cardinal email rules. I was taking Brody to preschool this morning and popped open my email at 8:30 am while he was eating breakfast. The first email I read was from a client saying that it looked like the project was going to fall through and not happen. This immediately put me in a bad mood. Reading email first thing in the morning can do that to you, because email all too often has bad news. My bad mood then affected the family (and our cat who annoyed me and then took the brunt of my bad mood).

If I had waited till 10:00 am to read email I would have been in a better mood when I got to work, had my coffee before finding out bad news (which is important), and Chrystal and Brody would not have experienced my bad mood (and the cat would have had a better morning).

But as in all situations, you dust yourself off and....hi ho, hi ho, it's off to marketing I go.

your job description isn't mail manager

2007-09-27T23:27:00.000-07:00

I had a pretty crummy travel experience on my trip this week in missed flights and too little sleep, but I had an interesting conversation that prompted this post. I had a partner in my travel woes that was sharing with me how she often spent her evenings reading and responding to emails creating a 60 hour work week (thanks for the post idea travel partner).
For a long period in my career I received sometimes 200+ emails per day. I’d spend hours every night reading them all and responding appropriately. After about three years of this I decided there had to be a better way. Below is a combination of my and others tips in how to spend less time on email. They are in no particular order.

The Carbon Copy Rule
Build email rules that help you prioritize what to read. Create a folder called “cc mail” and create a rule that moves any message where you are in the cc: field to this folder. Never read them, they are saved for reference only. You may need to create exceptions for certain people or groups which most email engines allow. If you are nervous about this try it for two weeks. I was nervous about it at first but this single rule cut my email volume by two thirds. I’ve now been doing it for three years and have been asked less than a dozen times if I got an email. Most people cc you on message to feel important or CTA (cover their arse), so not reading it is usually no big deal.

I had a co-worker that joked delete every email you get and if it’s important they’ll send it again. If someone cc’s you on an email and needs a response they will most likely send it again directly to you.

It’s All About Me
Build another email rule that flags any email where you are the only person on the To: field in a specific color (my preference is red). This way you can immediately know which email you probably must read and respond to.

It’s All About Them
If you have certain people that you must read their email set them as an exception to The Carbon Copy Rule and build a rule that flags their email in a specific color so you can see them easily (my preference is green).

The Conversation Stopper
Use email as a method of communication not conversation. Request this of co-workers, employees, and clients. If you need to have conversations pick up the phone and talk to the person.

If you receive a reply email (RE:) quickly scan to see if there are multiple of them with the same subject. Sort your email by subject, select the most recent, and read the entire train starting from the top down. I suggest from the top because you may find quickly that you don’t need to do anything and just delete it. If you make it all the way to the bottom you are reading just to read or you’ll find you need to respond in some way. If it is going to take more than one email pick up the phone. You can most likely then delete the emails with the same subject line. If you follow the next rule all questions in the email will probably have gotten resolved and you won't have to respond at all.

e-mail Is Not On Your Task List (a slight variation on a Tim Ferris rule)
If you don’t have a daily task list before the day, start doing it today. Have three important things you must accomplish that day, and one before 10:00 am. Email should never be on that list. Look at email at 10:00 am, not before. After 10:00 am respond to email that requires immediate response, flag what requires follow-up, file or delete the rest. Schedule times to check and respond to email or you’ll spend 4 hours of every day getting nothing accomplished. Try to read email at 10:00 am, 1:00 pm, and 4:00pm. The 4:00 pm slot lets you respond to any requiring it that day.

Spending one full weekend emptying your email box is not actually accomplishing anything, except maybe generating more email. Avoid this really stupid way to spend your weekend.

Don’t Respond to e-mail on the Weekend (a tip from Tim Sanders)
This is one of the hardest things to do and I know from personal experience. But it is vital to managing your email volume. It is also a good habit if you are a manager because your employees will emulate your behavior. Sending email on the weekend sets the expectation that you’ll read and respond to email on the weekend. If someone really needs to get in touch with you they will find a way other than email.

The next step is to apply this rule to responding to email after hours. I promise, if someone really needs to get in touch with you they will find a way.

If you have other tricks and tips on managing the email nightmare post it for the world to benefit from your wisdom.

it's not about you

2007-09-13T21:19:00.000-07:00

I was visiting a church last Sunday and the pastor’s sermon started with, “It’s not about you…”. His next four words were “…it’s about God.”, but for this post I’m going to focus on the first half.

As I embark on this journey to be a successful hospitality technology consultant I have multiple times thought about the challenge of how to communicate clearly my desire (my mantra if you will) to help clients be successful. I find this especially difficult as a technology consultant because there are so many of us (versus them). This is also a challenge because many prospective customers have had poor experiences with consultants. How do you convince a customer that your desire is for them to be successful and that you can help create value?

I believe the first thing is to recognize that it is not about you. Focus on your customer and see how they react.

In short, use your ears and listen. Epictetus said it best, "We have two ears and one mouth so we can listen twice as much as we speak."
I’ve posted on this key successful trait before (probably because I recognize how much I need to improve in this area), but I find that listening can help a client believe you want them to be successful. Clients hire you as a consultant because they believe you have or can find answers. And they may be right, but having answers comes with the prerequisite of understanding the problem – vis a vis listening.

Success as a consultant is predicated on your client's confidence that you can make them successful. In your next client meeting build confidence not by knowing all the answers (because you won’t) but by listening and understanding the problems you are there to resolve.

who do you know?

2007-09-05T23:35:00.000-07:00

Tomorrow morning Chrystal, Brody, and I are leaving for Phoenix to visit family and hopefully meet with a prospective client. All the communication that I've had to date with them has been that they are not interested at this time. I have an inside connection that hopefully will be able to at least get me a lunch meeting.

As a consultant who you know can often be more important than what you know when trying to get a meeting. Use your network (but don't abuse it), the worst they can say is no.

be encouraging . . . and honest

2007-08-31T14:28:00.000-07:00

A few weeks back I posted about starting kevin sturm Consulting. Starting your own company is nerve racking, stressful, overwhelming, and really fun. The amount of responses I got to my email was almost overwhelming. I have five weeks left in my job and the amount of encouragement I have recieved in starting out on my own is making me feel so blessed.

If you haven't sent someone an encouraging message today, do so. It feels great to give and get encouragement.

Here is some of the messages I got. The title of my post is "Be Encouraging...and Honest". One response I got was so wonderfully honest (the bottom one). It was from Chrystal's aunt who is/was uber successful and smart. Loved this one becuase it helps me keep perspective of how some potential customers may be.

_________
"congrats dude... i'll be praying for you. i've been in the same boat of late, where i feel like i need to take the fork in the road. hopefully soon we'll find you with a wealth of clients to consult and me with a new book on the store racks... " -jw

__________
"Way to go Kevin!! The first step is the hardest but once you've madethe decision, all that's left is making it work. Word will get aroundand soon you'll have to hire your own staff to keep up with it all andnext thing you know, you'll live next door to Omphara. I'm excited foryou. The next few years are going to be interesting for your family.Take some advice from an old fart? Stay intimate with your loved onesand keep what's important to you close to your heart. Don't let thejob swallow you up. That's it, no more advice." -jb

_________ (this one blew me away)
"Hey buddy. Congratulations on taking such a big step; I know it's got a be a little scary walking away from everything that you've worked for, but if anyone can do it, I know you can. I also know that you wouldn't do this without going through everything that you needed to, and getting the right answers. :) I just want to make sure that you know that, in the event you run a little short on working capital before you get everything up and running, let me know - I don't have much, but I'll help out as much as I can, financially or any other way. I have that kind of confidence and faith in your abilities and know that you've been in the business
long enough to make this work. Sounds like I should start the Kevin Sturm Fan Club, huh? :) Keep me posted; you'll be in my thoughts and prayers. Just don't forget us little people when you're rolling in more money than you can ever spend! :)" -kd
_________
"Wow! How fun, You go Kevito. As in everything that you have tackled thus far, I am positive you will give it your all and be a screaming success." -tl

_________
"Hi, KevinCongratulations on following your heart. I wish you well. My one piece of advice (for now) is to attend to marketing one full day of every week. " -bp

_________
"I wish you well in your new opportunity. It is not easy to take the riskier path, but that path may be the right one for you. You will never know unless you try, and if you never tried you would always regret not trying. I'm betting you will be successful. I wish you well & I look forward to hearing about your progress." -jd

_________
Nicole and I wish you the best of luck in your new venture. Please let us know if there is ever anything we can do to help you out. One thing that we have found in building Nicole's marketing consulting business is that you need as much help as you can get from your friends. We are here for you if you need us. A challenge of starting your own business is that there are so many things that you need to accomplish, and you are behind from day one. Its not that its all hard to understand or difficult to accomplish, the challange seems to be that there are so many things to get done that its hard to think of them all and to consider all the issues before deciding how to act. We found the book Getting Started in Consulting by Alan Weiss to be very helpful. Its not an earth shattering book full of revolutionary ideas, but it is a very helpful and complete list of things to get done with some good ideas about how to accomplish each." -db

_________ (I love the honesty)
I know you are excited about your new opportunity, Kevin, and we sincerely hope it turns out fantastic for you. I have some misgivings, but that is because I see life through different filters than you do,which is okay, and what makes the world turn round.........I rarely if ever worked with consultants that I thought were worth a flip, so I tend to be suspicious of anything that has the word consultant in it. Like you said in your blog, though, integrity is the single most important description that could ever be attached to your business name - never compromise that, although it may be harder than you think when you need your fee to cover a house payment and groceries for the month..... I personally never ran across any consultant in my career who didn't have all kinds of hidden agendas that made it impossible for them to be objective. Hopefully, you can be the first competent one I'll meet! Having said all that stuff-with-a-slightly-negative-bent however, we do wish you only the best and hope you are wildly successful... Keep your goals and your principles lofty, have a plan, and another one to back the first one up! We're rooting for you............" -aw

don't tolerate lazy customer support

2007-08-25T22:01:00.000-07:00

Have you ever have one of those days where you were having a really great day, and then a single experience turns it all around? Like the kind of experience that leaves you with a head ache and you want to scream into a pillow. Today was one of those days.

It’s about 9:00 pm tonight and I was supposed to be on my way to Macao as of about 30 minutes ago. But there was a change of plans and I had to cancel my trip. I had booked a $6000 business class ticket on Thai Airways through Orbitz so I wanted to be very sure that I got refunded for the fare when I canceled. I placed a call to Orbitz at about 11:45 am this morning, and below was how I spent my afternoon.

11:45 – Place 1st call to Orbitz and run through this annoying automated prompter that loops back to the beginning if I hit zero. I finally get to Customer Support after 5 minutes and tell Customer Support I need to cancel the ticket. They put me on hold for about a minute, and then tell me they can’t cancel the ticket. I have to call Thai Airways directly and they give me the number.

12:00 – Call Thai Airways and get an answering machine saying they are closed and won’t be back open till Monday, and to please leave a message. This is where I get a bit confused…because apparently the Thai Airways office at Los Angeles International Airport is closed on the weekend.

12:10 – Call back Orbitz and again have to go through the annoying automated prompts. I get a real person and tell him my situation. He puts me on hold for about 10 minutes (this is my guess because I got to hear the full version of Pachelbel’s Canon just over two times) and tells me that there is nothing he can do and I need to call Thai Airways. I ask him if he is sure and tell him there is no answer, so he gives me the number to the Thai Airways New York office because they should be open.

12:30 – Call the Premier Executive number for United and ask them if they can cancel the trip since the first flight is on United. They say they can cancel the Santa Barbara to Los Angeles leg, but that is all. I ask them to do that, and say thanks.

12:40 – Call Thai Airways New York number and get the same answering machine.

12:45 – Go the Thai Airways website and spend 10 minutes trying to find a number to call that I don’t already have. Google eventually helps me get to the London and Bangkok office phone numbers.

1:00 – Call the London office for Thai Airways and get the same voice mail message.

1:05 – Call the Bangkok office which is HQ for Thai Airways. Again I’m into an automated voice system that is hard to understand because of the thick accent. I try to guess on the right number to press so they speak English and guess wrong so I have to hang up because they are not speaking English.

1:10 – Call the Bangkok number back and this time understand the prompts so I get to the English reservations system. The automated response says there is a very high call volume so I will have to hold. It then tells me that I can fax in my request and they will get back to me. I sit on hold for a full hour and no one ever picks up.

2:20 – Call back the Los Angeles, New York, and London office again to see if I can get through. Get voice message at all three numbers.

2:40 – I call Orbitz back a bit miffed at this point. Go through the same annoying prompts and get to another new customer support person. I tell him my situation. He pulls up my ticket and then proceeds to go through every leg of my itinerary with flight number, departure city and time, arrival city and time, asking for verification. After this he tells me because it’s an international ticket he has to transfer me to an international agent. I’m thinking why did the first two guys not do that?

2:50 – Get transferred to an International agent (Henry) and I go through my situation for the fourth time. Henry puts me on hold for about 15 minutes and comes back on the phone and tells me that I need to call Thai Airways. I’m a pretty patient person, but at this point I lose it and rant for three minutes on how poor the customer support is. He says sorry and puts me on hold for another 15 minutes to see what he can do. He comes back on and asks me if I purchased a fully refundable fair. I ask him if he is serious, and how can he not know that by looking at his computer. He says he doesn’t, and I don’t know either because it’s not on my confirmation email. He puts me on hold for another 10 minutes and then comes back on the phone saying I bought a fully refundable fair and he can refund the ticket. I say “GREAT” and can he send me an email confirming that it has been refunded…and he says “NO” (I’m thinking WHAT?) but is willing to give me his name and reference number. I say no, I want a confirmation email from Orbitz saying that they are going to cancel and refund my ticket. He says he can’t do that. I ask why, and he says it’s not possible. Then he tells me I need to call the insurance company that Orbitz uses to insure international tickets to get a refund for that portion of the ticket. I don’t even ask why Orbitz doesn’t handle that at this point, and write down the number. Then he tells me that I’ll be receiving a confirmation email of the cancellation (Did I just get told this was not possible?).

3:20 – I hang up the phone irritated and with a headache, check my email, and see that Orbitz sent me a Customer Service Survey at12:45 pm. I have not filled it out yet because I don’t want to waste any more time on this today. I fill out most of these surveys whether good or bad, but I definitely will fill out this one.

It took me over three hours to cancel an airline ticket because of lazy customer support. I’m guessing that if the first person would have just followed procedures and took initiative I would have been done in about an hour.

the customer equality paradox

2007-08-22T21:21:00.000-07:00

This is an interactive post, and I’m curious to know what everyone thinks.

Twice in the past two weeks customer equality has crossed my path. The first time was about two weeks ago when a colleague said to me, “The [Customer 1] and [Customer 2] seem to be your highest priority and everyone is mine.” The comment was made with the utmost sincerity, honesty, passion and true belief which I really respected. But my first thought was is this really realistic? Is it a smart business decisions to give all customers the same importance?

The second instance was just a couple days ago. I was flying from Los Angeles to Las Vegas and showed up to the gate well after the first boarding announcement was made. I always fly United and recently they implemented a Red Carpet boarding line where regardless of when you show up they will completely stop the other line and let you board if you qualify for the Red Carpet line. For this flight I could not use the Red Carpet line, but I’ve often thought is it fair that someone gets to stop the entire line after showing up late to board? Is it a good business decision to treat two customers differently when they paid the same amount for a service?

Both of these instances speak to the Customer Equality Paradox: are all customers equal. It is important to note here that I’m not asking are all customers important, because that’s an easy answer. Rather, are all customers of equal importance to your business?

Complete the survey below and I’ll let everyone know what the outcome is. I’m interested to hear everyone’s comments about The Customer Equality Paradox.

secrets of success

2007-08-20T12:41:00.001-07:00

Last night I loaded a few TEDtalks onto my iPod for my morning travel to Las Vegas. I came across a great one entitled Secrets of Success in 8 Words by Richard St. John. It’s only three minutes long so you should listen to it, but if you don’t have time for that here are the 8 points.

Passion - Do it for love, NOT for money. Guy Kawasaki phrases this as do something where you “make meaning”
Hard Work - Success is hard work, nothing comes easy. But it needs to be fun or it probably is not worth doing
Practice Practice Practice - Practice enough to be great at it
Focus - Focus on one thing and do it great
Push Yourself - Push past self doubt, obstacles, and negative people
Serve - Serve others and make the service valuable
Have Ideas - Spend time thinking and come up with new ideas
Persist - Failure happens, persist in the face of failure

What is your thought on Customer Equality?
	All customers are equally important
	Some customers are more important than others
	Customers are not important
	I'm really what is important

Free polls from Pollhost.com

If you showed up late to boarding your plane and could cut in line by using the Red Carpet line would you?
	Yes, because I've earned it
	Yes, because I've paid for it
	Yes, because I'm important
	No, I should have been there on time
	No, I think it's rude
	No, I'd feel bad

Free polls from Pollhost.com