INSTITUTE OF MANAGEMENT CONSULTANTS
New England Chapter

News and Views

The eNewsletter for the New England Consulting Community
January 2003

In this issue:

Upcoming Events

"When Should a Turnaround Consultant Be Hired?"
by David Kellogg

Breakfast Brainstorms Calendar

Members in the Spotlight

Book Review:
Poor Richard's Branding Yourself Online

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Learn more about IMCNE's programs, membership details and services to New England consultants by clicking here or calling us at 800-696-7399.

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Want to become a published author? We are seeking IMCNE members and affiliates who wish to contribute articles of 250-300 words for this newsletter. Submit your ideas before you write. us - enter Subject: IMCNE article
OR
join IMCNE's Publishing Initiative: Contribute to Articles on Best Practices and Business Ethics. Help us gain visibility and credibility in the business community by publishing articles demonstrating IMC members' commitment to ethical conduct and client service.

Jean Sifleet, Esq., CPA and Bill Katz, CMC are leading an effort on behalf of IMCNE to develop a series of articles on business "best practices" and corporate ethics. The IMCNE Board enthusiastically endorses this effort.

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News and Views Editor
Jan Cannon, VP Communications, IMCNE
Creative Director of BOOM, developing marketing communications using the best media for the message.
Phone: 617.484.5998


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Copyright © 2003
IMC New England

Upcoming Events

Monday, January 27, 2003
3:00 p.m. - 9:00 p.m.
Sheraton Lexington, Lexington, MA

Afternoon Workshop
Corporate Responsibility and You:
What every consultant should know about ethics in today's business climate

with Lee Essrig of the Ethics Officer Assn. of America, Phil Holberton of the Holberton Group, and Michael Rion of Resources for Ethics and Management.
Moderated by Harvy Simkovits, CMC

Evening Dinner Program
Re-Spiriting the Workforce – Lessons from The Corporate Shaman
with Richard Whiteley of the Whiteley Group, author of The Corporate Shaman

Click here to learn more...

When Should a Turnaround Consultant Be Hired?

by David Kellogg

There is no easy answer to this important question, but the factors that should be considered are as follows:

  • Are the owners not satisfied with the company’s performance? A few of the more common indicators are:
    • Financial losses.
    • Revenue growth lags that of the industry.
    • Financial leverage is increasing.
    • Lack of strategic direction.
  • Are other stakeholders getting nervous? Some of the clear signals that the lenders are not happy are:
    • Loan defaults.
    • More restrictive loan terms.
    • Reduction in loan availability.
    • Higher loan pricing.
    • Extension of the line of credit for a shorter period than has been customary.

Once company management, owners or lenders realize that there is a problem, how soon should an outside consultant be brought in to help? In all situations, the sooner the better. There are many problems that occur when companies wait too long to seek outside help. Some examples are:

  • Typically, the troubled company is incurring losses, burning through cash, working capital is shrinking or leverage is increasing. Each day that goes by reduces the company’s financial flexibility. Without financial flexibility, companies are forced to make decisions based purely on short-term considerations, but these decisions often in fact hurt the company in the long term.
  • If a company takes the initiative to hire a turnaround consultant, then they will be able to choose the firm that has the best skills, pricing and personal fit with management’s style. Alternatively, if the company waits too long, the lender will eventually require that a consultant of the lender’s choice be engaged.
  • Once a borrower is managed in the "workout department" the lender’s relationship with the borrower changes dramatically. However, if a turnaround consultant is hired when the loan is not handled in workout, then a plan can be developed which will be in the best interests of both the lender and the company. It is truly a "Win/Win" situation.

Conclusion

There is nothing to be gained by delaying the decision to hire a turnaround consultant. Those companies or lenders that take the initiative to improve a deteriorating situation early will have a much better chance of success.

David Kellogg, President
Kellogg Associates

Breakfast Brainstorms Calendar

Monday, January 27, 2003
7:45 a.m. - 9:15 a.m.
Hancock's Coffee Shop, Quincy Marriott, Quincy, MA
Note: Date changed due to holiday Jan. 20th

Friday, January 31, 2003
8:00 a.m. - 9:30 a.m.
The Hampton Inn, Sturbridge, MA
Note: Date changed from originally scheduled date of Jan. 17th

Monday, February 3, 2003
7:45 a.m. - 9:15 a.m.
Bickford's Restaurant, Manchester, NH

Monday, February 10, 2003
7:45 a.m. - 9:15 a.m.
Rebecca's Café, Burlington, MA

Monday, February 24, 2003
7:45 a.m. - 9:15 a.m.
Hancock's Coffee Shop, Quincy Marriott, Quincy, MA
Note: Date changed due to holiday Feb. 17th

Want to host a Breakfast Brainstorm in your area? Contact IMCNE President for details.

Members In the Spotlight

Marisa D'Vari (Deg.com Communications) gave a seminar at IMC's Confab 2002 in Reno in October 2002 entitled, "How to Achieve Celebrity Status As a Management Consultant."

Isn't it your turn to be in the spotlight? Send your name, your business name and 1) recent awards/distinctions/professional certifications you've received; 2) public speaking engagements; and 3) published articles. (Be sure to include key facts, such as when, where and for whom.) You must be a IMC member or affiliate to be featured. Send ; indicate Subject: IMCNE spotlight

BOOK REVIEW

Poor Richard's Branding Yourself Online
by Bob Baker
Top Floor Publishing, 2001 $29.95

Imagine a normal business day. You dress professionally and project sincerity in all interactions, since you know it's this "personal connection" that turns prospects into clients.

So, how are you perceived online?

Just as you would never venture out of the house with mismatched shoes, failing to "brand yourself" online ruins the reputation you worked so hard to build.

Enter the Need for Internet Branding

In Branding Yourself Online, Bob Baker explains how consultants can brand themselves via email, their web site, through an email newsletter (called an ezine), and even "brand" themselves via discussion group email.

For example, in the chapter about using email to reinforce your brand, Baker discusses the use of signature files (catchy slogans that motivate the reader to click on the link leading to your services) subject lines, necessity for short sentences, your brand identity statement, and more.

Much discussion is devoted to web site branding, with Baker urging consultants to "keep it simple" and maintain a uniform theme. Of special note is Baker's suggestion of adhering to the three-click rule, which means any piece of information on your site should be no further than three clicks from the home page. Baker is also a fan of interactivity, and suggests that you create polls, surveys, quizzes, and chat rooms as a way to more intimately involve people on your site.

More than a book, Branding Yourself Online is more of a course, giving you the basics of Internet Branding 101. Even if you have a webmaster and other tech experts designing your web, this is a book to keep handy on your reference shelf and refer to often!

Marisa D'Vari, President
Deg.Com Communications

is a communications consultant in Boston, MA and the author of several books. Two of the latest are Presentation Magic: Dazzle and Deliver Talks with Confidence, and Media Magic: Profit and Promote with FREE Media Placement. Both are available at her web site, with the added advantage of free teleseminars via her web interface, Club Deg.

Read any good books lately?
Book reviews of up to 150 words are needed monthly. Business books and those you found helpful from other genres are of special interest. Send ; indicate Subject: IMCNE book review