Every month I take a 30,000 foot look at events in the ICT industry. This is my overview of June’s news, with a brief reminder of what was news in June the last couple of years! What you see here is a precis of the monthly report I produce, which will be available at the Eagle website over the next day or two.

June two years ago (2006) saw the merger of Nokia and Siemens to create a $20 billion company and it was also the month Warren Buffet donated $30 Billion to the Gates Foundation! Last year in June (2007) Avaya was bought for $8.2 billion, Ceridian for $5.3 billion and Solectron was bought by Flextronics for $3.6 billion.

June of 2008 sees an economy that is being rocked by high oil prices, the fallout from the sub debt crisis and signs of inflation. The US Conference Board have consumer confidence at record lows and the number of mass layoffs in May was the largest since 2003 … yet forecasts for the IT industry suggest growth in 2008!

Other studies that caught my eye this month saw an unsettling admission that a third of our system administrators are reading our confidential data, and an even more disturbing look at the growth in online hate sites!

A down economy always has some affect on the M&A markets, making companies a little more cautious in spending their money, and others looking to take advantage of reduced prices! There were a couple of billion dollar deals this month, the Carlyle Group bought the US Government business of Booz Allen Hamilton for $2.54 billion and Cadence made a $1.6 billion offer for Mentor graphics … but it remains to be seen whether that one flies. Other than the huge deals Nokia paid $410 million to complete its ownership of Symbian; NEC bought Nutcracker for $300 million; Cogeco bought Toronto Hydro Telecom for $200 million; Progress paid $162 million for Iona; Barracuda Networks offered $186 million for Sourcefire and Belden paid $133 million for Trapeze Networks. Other “names” in the M&A market this month included Electronic Arts (with 2 deals), Accenture, Alcatel-Lucent, Deloitte, Microsoft, SAP and Symantic.

That’s what caught my eye over the last month, for more details go to the Eagle web site where the full edition will be available over the next couple of days (tomorrow is a holiday in Canada). Have a happy Canada Day (July 1st) and I’ll be back with the July IT news in about a month!

Over the last couple of years I have talked about industry associations many times … they do great work in representing their communities and it is my strong belief that ALL companies should support their associations.

There are however a lot of associations, and sometimes it is difficult to ascertain which organisations are the best fit. For Eagle we have been very active in the Staffing Industry Associations for many years, and I sit on the board of both ACSESS and NACCB Canada. Recently we decided to also join the Information Technology Association of Canada (ITAC).

This week I attended my first couple of meetings and started to learn a little more about how the organisation works and the great initiatives under way. Last night I attended their annual Chair’s dinner and was amazed at how many people I knew, despite the fact that I live in Ottawa … so that was a positive experience for me. This is a high class organization, and for this event there were high profile speakers, thoughtful content and it was a great networking opportunity.

All of the associations I am involved with spend huge amounts of time with governments and charities in addition to educating their membership about best practices, ethical behaviours and reasonable expectations of good corporate citizens.

I think I am going to enjoy membership in ITAC and once again wonder at those companies that do not “get involved” or support these type of organizations. Every company benefits from the efforts of these associations and yet some companies pay their dues (in money and time) and others seem content to get a free ride on the coat-tails of those willing to make this kind of investment. I wish client organizations would pay attention to this kind of thing and reward companies that help their industries, and penalise those “free loaders” who do nothing for their communities.

Meanwhile I’ll ensure that Eagle is working hard and diligently in support of great associations like ACSESS, NACCB Canada and ITAC!

I receive a regular “Coaching Tip” from Paquin & Associates. Often they are just a sound bite, but generally they are “on the mark” and right in line with my own views.

The latest one suggests that, despite what you may have been told as a child, NOTHING comes to those who wait. Which is right in line with previous blog entries I have written about procrastination.

Here is Michael Paquin’s latest message … and if you want to subscribe to them you can do so at his website. I like the reminders … because they make me think about these things, which are easy to let slide!

Nothing Comes To Those Who Wait

Coaching

Stop waiting and get moving. You don’t have to know how it will all work. I like to say that the how is none of your business. All you have to know is the what. Once you are clear on what you want the how will reveal itself, one step at a time. And that is the good news. You also don’t have to take action all at once. You just need to take one step at a time and over time you will achieve your desired result.

Coaching Question

What are you waiting for?

Daily Action

Today, take action on something you have been “waiting” to do something about until the perfect time. Right now is the perfect time – it will never get better than this.

Book Review – Outsmart!
How to Do What Your Competitor’s Can’t
… by Jim Champy

Champy looked at high growth companies that have a track record of hyper growth for three years or more and came up with eight strategies that companies might want to consider when trying to achieve that kind of success for themselves.

Anybody running a business will tell you that they would love to be able to achieve this kind of sustained success, but these examples are from real life companies as opposed to theories!

1. Compete by Seeing What Others Don’t.

One example Champy uses here is Sonicbids, a Boston based company that launched in 2001 and grew from revenues of $250K in 20043 to $8 Million in 2007. The founder was a musician who saw a market gap between talented musicians who are looking for work and promoters who are looking for talent. He created an online agency that now has 10,000 promoters connecting with 120,000 musicians. The need had been there forever … he seized the opportunity!

2. Compete by Thinking Outside the Bubble.

MinuteClinic was a notion to allow people looking for healthcare to get quick, relatively inexpensive care without going to the emergency room. The idea was conceived 8 years ago and the company was bought in 2007 for $170 Million cash. They applied the same concept as the quick oil change/muffler companies to the healthcare field. It doesn’t take a doctor to deal with many ailments so a nurse practioner manning a booth can handle a lot of business!

3. Compete by Using All You Know.

Smith and Wesson grew its business from $100 million in 2003 to $237 million in 2007. The success is attributed to bringing in someone from outside the arms industry who was able to apply lessons from their previous management experiences … in the furniture business.

4. Compete by Changing Your Frame of Reference.

Shutterfly was an online photo finisher that reinvented itself as an internet based social-expression and personal publishing service. The success has come by focusing on the Shutterfly client “community” and providing that sense of community. The twin strategies of (a) focus on the community and (b) broadening the offerings, has led to success.

5. Compete by Doing Everything Yourself.

S A Robotics bucked the outsourcing trend by taking responsibility for all aspects of the robotic products through the full life cycle. This means more investment, potentially higher cost but an ability to control quality that is tougher to do when companies piecemeal parts of their operation to other companies.

6. Compete by Tapping the Success of Others.

Digital Lifestyle Outfitters hitched the success of their company to the iPod. Recognising the need for accessories that were not being supplied by Apple meant there was a huge opportunity and this company jumped right in!

7. Compete by Creating Order Out of Chaos.

Partsearch is company that creates order to the millions of parts that are available to retailers, repairmen, and consumers from the many manufacturers of various products. The manufacturers have their own way of presenting the data, with no consistency making it difficult for an individual to quickly find what they need. This technology driven solution meant growth at an annual rate of 85% to become a $64 million company in 2006.

8. Compete by Simplifying Complexity.

Smartpak packages medications and supplements for horses (and now dogs) that ensure owners can provide the dosages correctly at the right time. By simplifying an existing process they created a market opportunity that saw them grow a $40 million business!

This book is very practical, focused on real life examples of success and therefore should prove to be excellent, and thought provoking material for any entrepreneur or budding entrepreneur.

For the first time in my professional career I took a month away from the office, and was lucky enough to enjoy a trip to Europe. For the last couple of days I have been “getting back into the job”, and trying to implement those “time management” ideas that I have blogged about so often!

In May of last year I blogged about the “First Day Back in the Office”, after having been away for a one week vacation. It was good to review my thoughts from that time, because they are certainly relevant having been away for a month.

I think the biggest difference in being “out of the loop” for a month is that all of my various “roles”, both inside Eagle and working with charities and associations, have moved along substantially in four weeks. It is therefore critical to be sure I not only get up to speed quickly, but also that I understand the most time sensitive items to address.

This is also a good time to step back and re-evaluate my role, am I focused in the right areas, is my time being maximized to the best extent possible? Should I be making changes in what I do, or how I do it or even should it be done at all?

It is a little like solving a big puzzle … except in many ways it is several puzzles, inter-related into one large puzzle. For each role that I perform there is the puzzle of understanding the priorities and what needs to happen. Then each of the roles come together to form the larger puzzle that defines the priorities for those roles.

I am lucky in that the Eagle management team have once again shown that they are well capable of operating in my absence … but that then creates the question about whether I am needed in all of the areas in which I was operating? I wonder how many people reading this blog ask themselves whether they are really relevant in their job … it is a little disconcerting to think you might not be as important as you think!

All of the above will shake itself out in the next little while … the most critical component of getting up to speed is to prioritise well, and to use good time management techniques to ensure that you are maximizing your productivity.

I have a number of blog entries on this subject that is near and dear to my heart …

In September 2006 I wrote 10 Practical Tips to Manage Time.
In September 2007 I referenced a Colleen Francis article about Time Management for Sales People.
In January 2008 I wrote 10 Tips for Effective “To Do Lists”.

Scattered throughout my 500 plus blog entries there are many references to the power of effective time management. Personal productivity is one of the most important aspect of career success, and people who can get a lot of “things” done WILL be successful … all I have to do now is follow my own advice and get on with it!

Time to get back to my catch up activities!

I am sometimes given a bit of a hard time by independent contractors who feel that agencies “take money out of their pockets” or are making money off their backs, bringing little value to them. Having run an agency for the last 12 years, I can honestly say that I have never worked so hard. I have worked in technology, sales and management roles and I have worked for large companies and system integrators … so I think I know what I am talking about when I say we earn every penny we make , and the profits in our business are skinny!

I have written previous blog entries about the value proposition that agencies bring to clients, but there are also many benefits to an independent contractor of working with agencies.

I will write a blog outlining the value proposition to the independent contractor, but for this particular entry I want to focus on what, for many contractors is the single biggest benefit … access to jobs that are not available otherwise.

The fact is that most (almost all) large companies in Canada will avoid direct contractual relationships with independent contractors. Thus in order to work at those companies the independents need to contract through one of the agencies on the preferred supplier list.

There are two primary reasons companies choose this route, Cost and Risk … plus a third factor not as important, but still relevant … Hassle! Let me explain:

1. COST.

Agencies can supply contractors cheaper than companies can get them themselves. (I would be happy to expand on this one, bet generally agencies have large databases and can provide multiple options plus when companies contract directly with independents there is less negotiating power.)
The client has leverage by squeezing their suppliers.
The client saves administratively by having just one contract with a few agencies and paying one cheque (with long payment terms), rather than creating hundreds of contracts and hundreds of payments, each month.

2. RISK.

The big risk to clients is for an independent contractor to be deemed an employee. The agencies manage this risk for them, create a degree of separation contractually and create a difference between how contractors are treated and how the client’s own employees are treated.
This risk has significant implications to both the client and the independent contractor if an employee/employer relationship is deemed to exist.

3. HASSLE.

Clients use contractors for lots of reasons but a primary one is the access to flexible labour, with minimum commitment. By employing an agency to manage the relationship the clients is freed of many “hassles” … hiring and firing, payment, management issues, personal issues etc. If there is an issue they tell the agency, who then deal with it.

The benefits to clients of working through agencies are compelling and therefore the only way to gain access to contract jobs with those companies is through their supplier agencies. This is not a trend that is likely to change any time soon, certainly with large companies.

Coming soon … a more comprehensive value proposition to independent contractors about working with agencies.

I am just back to the office after a month on vacation … wow, the first time I have taken so much time in probably 30 years! It was good to take a break and recharge the batteries and I am easing my way back into work.

As I catch up with the huge backlog of email I will share some of the goodies I come across. This one is from my friend Ron Jette at AdamsJette Marketing and Communications, who has done great work for Eagle in the past. His newsletter often has some great ideas and thoughts … this little story was entitled … Everything I Know About Sales I Learned as a Boy Scout!

Nate Scholz is a 23-year-old student at Washington State University. He is also a student of sales. In March 2007, Nate beat 87 other students from 44 universities across America in the national collegiate sales competition. His secret is one that he could easily have picked up as a Boy Scout: Be prepared. For anything.

Knowing he would be judged on everything from approach, presentation and needs-identification to overcoming objections, closing and enthusiasm, Nate said he was thoroughly prepared because like any sales call, you may get only one chance.

According to the judges, Nate excelled in one area in particular: overcoming objections. He used a simple, three-step process that not only addresses objections head-on, but can often open the door to a closing opportunity.

Here is the process:

Reiterate the objection. “So, you are concerned about…”
Overcome the objection. “To give you some comfort in that regard, it’s important for you to know that…”
Confirm that the objection has been answered. “Does that answer your concerns?”

Nate says that success also comes from being mentally tough. He says he would begin by recording his presentations and answers to objections on video. Then, he would critique his performance, tune up his approach and record it all over again. And again. And again.

And never forget that “sales” is about much more than financial transactions. Even if we are simply trying to convince someone to support our idea, program or vision, or join our project team, all of us are selling-every day.

I hate miserable people … they really drain positive energy out of those around them. Can you imagine what it must be like to go through life being so miserable … it must be awful.

We see them every day … rude, arrogant, ignorant, selfish and they NEVER smile!

Please reference Kevin’s “Walk Fast and Smile” theory, or check out my blog entry about how contagious a smile is!

You can meet miserable people everywhere … on the subway or the bus, driving a taxi or a delivery truck, serving coffee at your local Tim Hortons or the receptionist at the doctor’s office. They might even live in your house!

• How much better would the world be if people were generally friendly?
• What does it take say “Good Morning”?
• What is the cost of a smile?
• How tough is it to hold a door for a stranger?
• What if we all took it upon ourselves to cheer someone up tomorrow?

I think we could change the world!

I have some blog entries that I have written over the last year or so that relate to this subject if you want to take time to check them out.

1. One of my earliest blogs was about Attitude!
2. Later on I wrote about Attitude and what the answer might be.
3. I had a different approach to Negative people last July.
4. I also wrote about the Bad Apple.

Obviously this is a subject that I have an opinion on! I think that we all have our lives to live and we can choose to be miserable or not … but why would you want to live with yourself in a miserable state? I certainly would not live with a miserable person!

Some years ago, I made a significant mistake in job choice. I was at a vulnerable point in my current role due to a change in circumstances, and I was approached about an “exciting” opportunity. The new job came with a great title, good “potential” income and it was by all accounts a successful company. As you can probably guess, things did not go so well … three months later I walked out. The bottom line was that their corporate culture was not a good fit and I was never going to be happy there. I had some good sales success in a short period of time and could likely have done well financially … but I was miserable.

Mistakes are easy to make as we pursue our careers. Here are some lessons that I would share with anyone thinking of changing their situation:

Some facts:

1. If you have been in your current job for a while and are doing well, then you have some status with your current company. That can be important.
2. When you start at the new company, then as the new kid on the block you will be under scrutiny.
3. You know the “warts” in your current organization … nowhere is perfect, you just don’t know the “warts” where you are going yet.
4. Most people don’t fully explore the opportunities in their current organization before they leap … remember what happens when you “ass-u-me”!

Some things to do:

1. Develop a career plan … one that takes you along your chosen path (or paths) as far as you can envisage (it might just mean visualizing your ideal next situation).
2. Give everything you can to your current job … the experience will be yours forever, the reference will be invaluable and that is what you are paid to do.
3. Be very clinical in weighing up your options. The new company is on its best behavior, the warts will come later so make sure you understand what they are likely to be.
4. Develop a list of criteria for your new job that will tell you if it is “good enough” to make a move. Things to consider might include:

   (a) Is the income real … or are there lots of promises? Compare it with your real income today (T4) not what you “perceive” is your income.
   (b) Does the new role give you the advancement in your career you need?
   (c) Does it have room for growth?
   (d) Is the location going to work? An awkward commute wears thin with time!
   (e) Do I like the people?
   (f) Have I met enough of the people? Arrange to talk with peers.
   (g) What is the culture like? Does it come through in their actions … or is it just words?
   (h) Am I going to be able to be successful in this role?
   (i) Have I checked references? Lots of them.
   (j) If I had the same interview with my current company what would be different? Is it enough?
   (k) Is there enough time off? Is the new employer going to be accomodating to my needs?
   (l) Are the hours going to work … with my commute, my family, my other needs?

A new job can be one of life’s most exciting times, but it can also be a disaster. Do your due diligence before going to a new job and don’t give up on the old one too early! Done the right way, that grass can actually be greener … but it is definitely not always the case!

The modern world is full of distractions … we are bombarded with “stuff” that will take our attention away from what we should be doing. Whether you are at work and trying to be productive or at home doing the bills or at the gym working out … if you are totally focused on your activity, then you will get the best results.

Distractions will have a serious impact on your productivity. Some of the common ones in the office might be …

• Focusing on the stuff you want to do rather than the “maybe tougher” but “higher return” activities;
• The co-worker who likes to chat/gossip/complain;
• Surfing the internet … reading news, shopping etc;
• Instant message;
• Personal email;
• Wandering to the water cooler/coffee shop etc.

Obviously some distractions are welcome when we are relaxing but if you want to achieve something with your day, then you need to give it your undivided attention. There is a great deal of satisfaction that comes from being efficient at your job … it sets you up for success in your career, it establishes your credentials with your employers and it just feels good.

So … write down some goals for the day, create your to do list and plough through it! Plan to take breaks, possibly to reward yourself at various points through the day … but don’t get interrupted or distracted from your tasks. Try it … you might surprise yourself!