The Clean and Green Club

The Pursuit of Something Better: How an Underdog Company Defied the Odds, Won Customers’ Hearts, and Grew its Employees Into Better People, by Dave Esler and Myra Kruger (Esler Kruger Associates, 2008)

Can a mediocre company (whose main USP is dominance of markets too small for others to bother with) transform into something truly great? If U.S. Cellular’s experience is any indication, the answer is a very strong yes. It isn’t easy, quick, or cheap–in fact, as of the book’s publication late last year, it had been an ongoing 8-year process–but under the right leadership, in this case, the remarkable CEO Jack Rooney, a squirmy little company with little concern for either its associates, its customers, or its business practices can actually reinvent itself as a highly ethical, customer-focused company that not only makes its employees really proud to work there, but actually begins to make a positive impact in the family and community lives of those employees. It’s not surprising that it now has twice as many associates and three times as many customers (meaning not only is the company growing rapidly, but productivity has also grown; each associate handles more customers)

This is an insider’s story; Esler and Kruger are the culture consultants that Rooney brought in at the start of his tenure, and they’ve played an ongoing role in shaping the transformation. Yet they don’t gloss over the rough stuff, and there’s plenty of it along the way.

But they and Rooney–and thus, U.S. Cellular–drew lines in the sand, fired people who didn’t share the dream, and made it work. In the early years of this decade, U.S. Cellular was widely expected to be swallowed up. Instead, they’ve shored up existing markets, built new ones, won numerous awards both for their customer focus/workplace culture and the reliability of their technology, and are well-prepared to hold their own even in the current recession.

A couple of core principles dominate:

• How comes before what, and nothing is morally neutral: if you get the numbers you want through the wrong methods, it doesn’t count; go back to the drawing board
• Truth is less stressful than deception

A key insight: marketing is important too. In many companies, the grim reality doesn’t match the sunny marketing/advertising/public relations picture, and that’s a problem. At U.S. Cellular, the problem was in the other direction: the company refused to take credit early for what it was accomplishing (Rooney felt they weren’t ready yet), and so the sunny and glorious reality was vastly better than the public picture; the company could have grown faster, perhaps, if their marketing had lived up to their culture. (This is exactly why I show, in my award-winning sixth book Principled Profit, that the ethical and social commitments must be accompanied by effective marketing that harnesses and highlights these achievements.)

A bonus: this is one of the better-written business books I’ve read recently, as you can see from this passage below, at the very conclusion of the book.

Jack Rooney and his slowly-expanding team of believers challenged the long-prevailing assumptions that business is a blood sport, that the advantage inevitably goes to the ruthless and the greedy, that the only way to win is to hold your nose and leave your values at the door He has proven beyond question, once and for all…that a values-based model works, that it can raise both a company and the individuals who are part of it to undreamed-of heights, to peak experiences that will last a lifetime and change the way those lives are lived. He has shown that there is indeed a better way.

Couldn’t have said it better myself.

Another Recommended Book: ONO: Options Not Obligations: Enrich Your Personal Life by Rethinking Your Financial Life by Marc Warnke (Morgan James, 2009)

In his first book, Warnke lays out a compelling case for succeeding, staying within your means, and being a “family first entrepreneur” who understands that quality time with kids and high ethical standards are more important than the million-dollar deal. However, he’s had a few of those deals as well.

Warnke encourages business people to think strategically, using what he calls the “Scrabble model.” Just as an experienced Scrabble player knows how to place tiles for maximum points, so the savvy business person looks at any possibility in terms of how well it fits in with the entrepreneur’s strategy: how much time it needs, how big the potential reward might be, how much energy it will take, and at what level of risk.

On ethics, he encourages readers to make sure that “all of your actions fall within the parameters of the highest moral and ethical standards. When profitability gets in the way of ethics, it is only a matter of time before a business blows up and goes under. If you keep your moral and ethical standards high, you’ll attract a long list of people waiting to do business with you because they know they can count on your integrity. That simple fact is worth a fortune.”

Warnke had to come to this realization the hard way, though. He’s not ashamed to admit that in his early years, he tried to put himself first at the expense of others, and also struggled with alcoholism. But when he changed his ways, he changed them permanently, and bettered himself in the process. These days, he understands that a give/give relationship works best, and that we should all “be the customer you want to have.”

CauseWired: Plugging In, Getting Involved, Changing the World by Tom Watson (John Wiley & Sons, 2009)

Are there lessons from the nonprofit and social change worlds for business? Watson’s new book proves that the lessons not only are there for the taking, but that they’re numerous–particularly in the way they use new technologies to build communities poised for action.

Business is ultimately about influencing others: persuading them to take actions such as buying or endorsing a product. And business can take many lessons from the explosive growth of social change and nonprofit groups in the online world, some of which started with just a single person expressing outrage, and moved on from there to build forces that could actually change things.

Organizations that started as small local networks have broadened to create national or been international constituencies involving tens of thousands of people–and more importantly, using those constituencies to accomplish the change they want.

From this book, you can take away such important marketing lessons as:

• Creating and leveraging “social proof”
• Building much stronger and more powerful alliances than the organization could do on its own
• Harnessing the “long tail” to attract profitable niche audiences that less nimble entities ignore
• Extending not only the reach but the feeling of ownership and participation among small donors who are able to see the results of their donations, sometimes in real time–cost-effectively providing resources that used to be available only to major givers
• Tapping into the consciousness of younger buyers–Generation Y, or Millennials–who are notoriously resistant to “traditional” marketing
• Extracting the core understanding of the blend of organizing and marketing that characterized both the Obama campaign on the left, and the Ron Paul campaign on the right
• Working profitably to market through new technologies, from Facebook and Twitter to cell-phone messaging, and taking advantage of the interactive, participatory aspects of these tools to build two-way participation–and thus, lasting community

In short, if you read this book through a marketing lens, you will find a whole lot of value, and you’ll be well-placed to get a jump on oghers in your industry by adapting these strategies–just as the fast-food industry borrowed the drive-up window from banks.

If Not Me, Then Who? By E. Cabell Brand (iUniverse, 2008)

This is not the book you’d expect from a very successful white businessman of the 1950s, a World War II veteran and a resident of ultraconservative southwestern Virginia. But that’s because Cabell Brand hasn’t led the typical life of his demographic.

Instead, he has spent his life working for social, economic, racial, and environmental justice–leaving in his wake an impressive trail of government, university, and private programs that have made a real difference in people’s lives. Brand combined his business skills and military-developed can-do attitude to work in local nonprofits, founding the first federally funded anti-poverty/Head Start agency in his area, piloting the SCHIP program recently readopted by the federal government after languishing under the previous administration, working to provide job opportunities for ex-prisoners…breaking down racial barriers at Virginia Military Institute…working tirelessly for peace and prosperity around the world…and even advising presidents and governors (Jimmy Carter and two Virginia governors are among the numerous endorsers).

It’s been a long and remarkable life, and this brief and well-written memoir is a testament to the difference a single person can make in the world through an unending series of small, mostly local actions that add up to real impact on the lives of real people.

Has he accomplished everything he wanted to? Of course not! His future goals include single-payer health care in the US, peace in the Middle East, a Green-energy economy (though he and I differ on how to achieve that) and a clean environment. But the legacy of people he brought out of poverty or helped to overcome injustice, programs he helped start that have been models around the country, and the simple knowledge that the world is a better place because he lives in it.

At 85, he hasn’t slowed down. He ends the book with a clarion call for “the imperative of local involvement” to solve global problems. “Each of us has an opportunity to be involved in a variety of local organizations and activities that promote…environmental activism…human rights…poverty…bring fresh water to those in need…opportunities to engage national and global challenges, with the ultimate goal of trying to give everyone in the world a better life as we protect the planet itself. In the end, we are in this together.”

You’re not likely to find this book in stores. Click here to order your choice of hardback, paperback, or e-book (this is not an affiliate link.

Another Recommended Book: Finding the Sweet Spot: The Natural Entrepreneur’s guide to Responsible, Sustainable, Joyful Work (Chelsea Green, 2008)

This is a book aimed largely at those who are unhappy in a job that doesn’t advance their life’s purpose, looking for something in greater alignment with their core values–and their skills and talents and interests.

Part 1 focuses on finding the right pursuit, and also on finding the right partners to work with. Late in the first chapter, you’ll find a number of excellent processes to go through in finding work that is not only meaningful to you and to the world, but that fills a crucial need. That chapter contains some excellent advice.

Chapter 2 expresses Pollard’s strong belief that heart-centered enterprises and solpreneurship don’t mix. As a successful solopeneur, I take this with a grain of salt. Of course, I don’t try to do everything in my business, and I outsource those tasks that others can do better than me, or seek their guidance in setting up systems for myself. But that doesn’t mean I have to take them on as business partners. Still, if you <i>are</i> seeking partners, you’ll find great advice.

Parts 2 and 3 cover setting up your “Natural Enterprise” as a viable and sustainable operation that offers innovative solutions to real problems, and draws on the power of commuity collaboration to create something resilient and powerful. His section on identifying needs is excellent, and he discusses using biomimicry and other enormously powerful methods to turn those needs into products and markets. He offers 22 attributes of Natural Enterprises, six steps to building a viral marketing buzz, and four keys to successful collaboration.

Two insights I found particularly cogent, both on the same page (178): Relationships are more important than credentials. And because partnerships are based on an equal relationship grounded in mutual trust, when you form partnerships, you predispose others outside the partnership to trust you more, because they understand that’s how you work. These insights reinforce the relationship-based marketing approaches I discuss in my own award-winning book, Principled Profit: Marketing That Puts People First.

Greening Your Business: The Hands-on Guide to Crdating a Successful and Sustainable Business, by Daniel Sitarz (Carbondale, IL: Earthpress, 2008)

For all those who think being more Green means spending a ton of money, go out and get this book. The larger your enterprise, the more money you’ll save. Managers at a large manufacturing facility might save millions of dollars per year–particularly if you haven’t gone after the low-hanging fruit already. The owner of a small retail store might save several thousand, and a home-based solopreneurs will likely save a few hundred. And it should be required reading before building a new facility or retrofitting an old one. No matter what kind of business or nonprofit you run, follow the advice in this book and you’ll be Greener, and you’ll save money.

Want examples? Sitarz documents that General Electric slashed its energy consumption by nine percent, saving $100 million (p. 56). Wal-Mart retrofitted its truck cabs with heating and cooling units, so the big diesels didn’t need to run just to keep the cab comfortable at a truck stop, saving $22 million in the first 16 months (p. 156).

It’s full of specific tools and resources to lower the cost and the environmental impact of energy, transportation, construction, water use (though it leaves out some obvious stuff–see this article I wrote a few years ago for those tips), office equipment and appliances, supply chain issues, and more. And to my pleasant surprise, even though the book covers some pretty technical material, it’s written in a very accessible style. There are also many weblinks, spreadsheets, and checklists, conveniently included in both an enclosed CD and in the actual text.

And while this book doesn’t discuss the marketing benefits of a Greener approach, you’ll be well-placed to take advantage of that (for how to harness the full benefits of your Green investments in your marketing, I recommend my own book, Principled Profit: Marketing That Puts People First).

Another Recommended Book: Just Good Business: The Strategic Guide to Aligning Corporate Responsibility and Brand, by Kellie A. McElhaney (Berrett-Koehler, 2008)

McElhaney’s key point: It’s not enough to have CSR (corporate social responsibility) initiatives in place; they have to be strategic, thorough, and properly marketed:

Strategic: aligned with–and actually fostering–the company’s overall goals. CSR initiatives need to be consistent with other branding, add to the bottom line (or at least not subtract from it), and demonstrate benefit not only to the community but to the company itself (not hard to do, as I point out in my own book, Principled Profit)

Thorough: able to withstand accusations/investigations of “greenwashing”

Properly marketed: Once you’ve got the initiatives in place, tell the story to all your stakeholders: top brass, line employees, customers, suppliers, neighbors, etc. Even better: get your nonprofit partners to tell your story for you, and give them the support they need to develop and disseminate those marketing messages.

The effects can be astonishing. She shares two stories from a cell phone company called Digicell whose success and not only doing but communicating CSR had a clear positive impact on profitability:
During the 2008 food riots in Haiti, local residents protected their stores through community policing efforts, even as stores on either side were burned and looted
When the CEO, Denis O’Brien, was one of several cell phone providers chosen to make a 10-minute pitch to the Nicaraguan government, President Daniel Ortega interrupted his presentation and told him, “Listen, I know wheat you have done for the people and the communities of Jamaica and Haiti. We would be honored to have your company serve not only our mobile telecommunications needs but also the needs of our communities.” WOW!

She frequently cites Pedigree dog food as a company that understands the power of thoroughly incorporating CSR into its core mission AND its branding. Visit that company’s website and you can’t miss the attention to adopting homeless dogs: a perfect message for a dog food maker, and a strong creator of consumer loyalty.

Interestingly, she spends a lot of energy discussing companies that have not always been perceived as good corporate citizens, including Wal-Mart and Dow Chemical. Perhaps, she seems to imply, those companies cans how their sincerity and turn public opinion to their favor, much as Nike did.

The book winds up with action steps, a comprehensive (if somewhat repetitive) section on measuring the results of CSR on profitability, and a look at the CSR big picture and future trends.

Highly recommended.

Another Recommended Book: The Customer Delight Principle: Exceeding Customers’ Expectations for Bottom-Line Success, by Timothy Keiningham and Terry Varva (McGraw-Hill/American Marketing Association, 2001)

This rather academically-written, MBA-oriented book emphasizes that merely satisfying your customers isn’t enough to build even loyalty, let alone the fervent ardor necessary for customers to recruit more customers on your behalf; you have to delight them. And the bar on delight keeps getting higher, because one of the factors leading to delight is that it’s unexpected.

In other words…when a new, delightful practice is successful, it is adopted by the organization, and then becomes an industry best practice–and then it stops being delightful, because the customer begins to expect it as part of a minimum service standard. So innovation plays a key role.

This I think is a crucial insight, and one that makes perfect sense.

Keiningham and Varva also point out a number of other interesting observations, all based in research (and many accompanied by various charts and graphs):

The ROI on improving delight is non-linear; certain little improvements may make a huge improvement in profitability, while others that cost more may have little effect, and the returns may shrink over time
It’s relatively easy to figure out which initiatives will offer the greatest return; just identify factors in the customer’s experience that the customer sees as of critical importance, but where the current satisfaction rating is low
Profitable delight initiatives often target high-dollar-value, low-cost clients
If your customer survey is self-serving and focuses on your wants rather than the customer’s, you won’t get the data you need to improve
Not everyone is delighted in the same ways, so segment your markets accordingly
Multiple touches, when handled correctly, can make a customer feel appreciated and welcomed and special (the importance of which I discuss in my own book, Principled Profit)

• To delight customers, you need employees who are at least satisfied
• Marketing’s primary role is not to shove products down people’s throats, but “to understand the wants, needs, and expectations of current and potential customers, feeding this information into the  business organization to help it create and distribute products or services that more closely address and answer these inherent needs,” and its secondary role is to form and nurture connections with customers
• Customer delight strategies look at a customer’s lifetime value and not so much at the current transaction
• Delighted customers not only proselytize to friends and colleagues on your behalf, they also spend substantially more

The book ends with three extended case studies of companies that benefited by long-term thinking and a delight-based retention strategy: Roche Diagnostic Systems, Toys “R” Us, and Mercedes-Benz USA. Roche and Toys “R” Us both needed turnaround strategies, but the case of Mercedes is especially interesting to me, because that wasn’t about fixing a broken system so much as incorporating delight into the corporate culture with a true focus on serving the customer–and creating an entire business unit, in its own building, to do so. This wasn’t cheap, in other words.

Among other things, Mercedes integrated eleven different databases, collecting different types of customer data, into a single system that anyone could access before interacting with a client (the company stopped using the word “customer” and stopped referring to its franchises as “dealers”). It also developed a strategic separation between client acquisition and retention functions (something Keiningham and Varva strongly advocate). Delight factors entered in not just providing emergency road service but also pre-trip routing services similar to AAA…a line of branded merchandise for sale…multiple touchpoints including anniversary of vehicle purchase and mileage awards at 100,000, 200,000, and 500,000 miles.

Does it work? After initiating the program, Mercedes was projecting an astonishing 86 percent repurchase rate! Even if their projections turn out to be inflated by 100%, a 43 percent repurchase rate is going to look mighty good for the bottom line.

For more on delighting your customer, see Shel’s award-winning book Principled Profit: Marketing That Puts People First.

The 4Cs of Truth in Communications: How to Identify, Discuss, Evaluate and Present Stand-out, Effective Communication, by Isabelle Albanese (Ithaca: Paramount Mountain Publishing, 2007)

Reviewed by
Shel Horowitz

From the Fortune 500 world of advertising comes this perky little book, and surprisingly, its advice is very applicable to small entrepreneurs with limited budgets, and translates well to many other media besides TV ads.

Albanese’s thesis is that the most effective communications embody four characteristics, all of which begin with the letter c:

1. Comprehension: how well the message gets across
2. Connection: whether the reader/listener/viewer/web visitor feels the material is relevant and emotionally arresting
3. Credibility: Is the message in tune with the customer’s perception of the brand? Is it based in ethics?
4. Contagiousness: Will the message spread with the help of its own prospects and the media?

She quotes Edward R. Murrow:

To be persuasive we must be believable; to be believable we must be credible; to be credible we must be truthful

And then flips the statement around to say that credibiity creates believability…which creates persuasion…which results in sales.

After analyzing each of the 4 Cs, she applies them to a raft of marketing and informational messages, including e-mail (a particularly good analysis that mirrors many of the points I’ve discussed in my Frugal Marketing Tips and my various books), Instant Messaging, eBay, and even movies. Oh yes, and she shows how the 4 Cs may have influenced the 2004 presidential election. In the final chapter, she applies the formula to personal communications between lovers or spouses, and between parents and children.

Shel Horowitz is the founder of the Business Ethics Pledge and the award-winning author of Principled Profit: Marketing That Puts People First and six other books.

Another Recommended Book: Zentrepreneurism: A Twenty-First Century Guide to the New World of Business by Allan Holender

Not lot of business books quote Greg Palast, the sharp-witted investigative reporter who exposed the illegal removal of over 90,000 likely Democratic voters from Florida’s voter rolls ahead of the hotly-contested 2000 election. And not a lot devote significant space to the classic social/ethical business book Natural Capitalism by PaulHawken and Amory and Hunter Lovins. Even fewer are written by a self-proclaimed “recovering Tony Robbins franchisee.”

I happen to be a huge fan of both Greg Palast and Amory Lovins, and am thrilled that Holender cites them in his examination of how Buddhist principles can apply to improving the business world.

I’m not a Buddhist, and I disagree with the core Buddhist belief that life is suffering. Yet I found much to agree with in Zentrpreneurism, and a great deal of alignment with the principles of my own award-winning book, Principled Profit: Marketing that Puts People First.

Especially relevant to my conception of principles for ethical business: The Eightfold Path:
• Right View
• Right Intention
• Right Speech
• Right Action
• Right Livelihood
• Right Effort
• Right Mindfulness
• Right Concentration

Pointing out that “engaged Buddhism” works not only on finding inner peace but also on addressing social problems, Holender describes each, briefly, toward the beginning of the book. A strong sense of ethics runs through the book and especially the entire chapter on business ethics. Holender includes many quotes from the Buddha; one I especially like is “The wrong action seems sweet to the fool until the reaction comes and brings pain and the bitter frits of wrong deeds have then to be eaten by the fool.”

But not all his insights come directly from the Buddha. Here’s one of his own: “the fear of discovery [when you tell a lie] is greater than the unknown consequence of the truth.” And he raises the question of how to be compassionate and have a higher purpose when money is involved–and then answers that question with the two chapters that immediately follow, one on social entrepreneurship (he notes that aging Boomers especially are looking to find meaning as they find ways to help the world) and the other on socially responsible investing. Even a small group of investor activists, he says, can have an impact far beyond their numbers.

The book’s website is https://www.zentrepreneurism.com

Copywriter and marketing consultant Shel Horowitz specializes in affordable, ethical, and effective approaches. He is the award-winning author of Principled Profit: Marketing That Puts People First and six other books