The LL Bean Guarantee

Being from Maine, we order stuff from LL Bean regularly.

It is, I have found, always a simple process.  You call. They answer (not a recording). The salesperson greets me by name (caller ID works well in Maine). She answers my questions and takes my order.  A few days later my order arrives.  The stuff is almost always perfect.  If it is not, they fix it.  If I really don't like the item they take it back.  They even pay shipping back to their store.  No problem.

It's the LL Bean Guarantee

"Our products are guaranteed to give 100% satisfaction in every way."

For years I have guaranteed my consulting work.  I now admit that I was a bit fuzzy.  I hedged a bit.

No more.

From now on every consulting assignment I enter into will be backed by my version of the LL Bean Guarantee:

I guarantee that my work will result in demonstrable improvements in your insurance program. If at the end of my work you believe that my efforts have not been worth the fee you paid, I will return your fee.  Period.

World Backup Day

I learned today that March 31 is World Backup Day.

Who know who decided this.  Who cares.  It's the day before April Fools Day.  Maybe that is it.

A backup is a part of a plan.  I do not care about the backup.  I care that when the really bad stuff happens that you can get back into business quickly.

Here's what I think every CEO should do Monday morning.  Walk into your IT department at 10:00AM and announce that you, by CEO edict, are declaring a computer crash.  Declare an impromptu drill to review what data you have, what data is backed up, and what could possibly go wrong.

Get your whole team together unannounced and walk through what you would lose and what you would do.

A computer-crash is not going to send you a memo today telling you that Monday you will not be able to access your data.

This may be the most important thing you have done this year.  It could prevent the total annihilation of your business.

As you go through this exercise push people to tell you where the weakness are in your disaster recovery plan.  Dont accept someone telling you it is there.  Have them prove it to you.

Create a word processing document on your computer today.  Delete it tomorrow and have your IT people show you that they can get it back on Monday.

If you have a hot site, send everyone to the hot site.  If it isn't ready for such an exercise then it really isn't a hot site (luke warm site?).  No system is foolproof and you will not know the holes unless you test them.      Make your people prove to you that the plan works.  Make them show you.

No reports.  Show me the data!  If you dont understand computers and how IT does what they do make them explain it.  If they can't explain it they dont understand it.

So, March 31 is World Backup Day.  April 2 is "World Figure Out How To Use Your Backup Day."

Bank Bond - In Transit Insurance

This one for my bank clients & friends...

The bank bond purchased by most American banks includes coverage to loss of money (and other property) "in Transit."  The coverage is also called section C in many bonds.

The protection is for money being (oh surprise) transported.

Coverage is limited to money transported by employees and by a contracted armored car company.  If you have a courier transporting money from branch to branch or from customer to branch you only have coverage if the courier is an employee.

Contracted transit companies are only covered if they are using an armored car.

Contract with a local taxi company?  No coverage.

Contract with a friend down the street?  No coverage.

Contract with a local courier company?  No coverage.

Of course, the courier company might have insurance.  Your bank does not though.

Disaster Is A Mouse

You are having a nice meal with a friend at a nice restaurant.

There is a commotion at a nearby table.  You look over and in a bowl of salad is a dead mouse.  The woman who was served the salad is understandably freaking out.

People are coming over.  Many with cel phones are taking pictures of the mouse. You can be sure that those pictures will end up being sent to friends and the restaurant name will be included.

One guy even positions a menu near the mouse as he takes a picture - framing the moment.

Now suppose you own the restaurant.

What do you do?

The mouse incident happened to Stephen J Dubner of Freakonomics fame.  I've been going through his past podcasts.  I have enjoyed them all.  I thought this one was particularly instructive.

Listen to the podcast here.

In the management of every business there is crisis.  How you respond to a single mouse-in-the-salad can determine the future of your company.

Are you ready?

IT Pros Not Betting on Their Own Security Measures

A recent report holds that only about half of Info Tech professionals are willing to bet on their network security.

Article Here

That is not encouraging.

My version:

"Dear IT Professional, We are paying you to ensure that our network is secure. We believe in you. We understand that the bad guys are good at being bad.  We also know that you need resources.  We promise to provide you with what you need. We expect that you are up to the task. If you are not, please let us know now so we can find someone who is. Such an approach is best for everyone."

I also think that unannounced security audits should be performed by the leadership of a company.  Hiring a third party to try to hack your system seems to me to be a reasonable approach to test your defenses.

What's Claims Made Liability Insurance

NY State requires the following disclosure on claims made insurance policies - Not a bad description of the issues:

In consideration of the premium charged:

1  This is a "claims-made" policy which means, generally, that coverage applies under this policy for only those claims first made against the Insured during the policy period.

2  This policy provides no coverage for claims arising out of incidents, occurrences or alleged wrongful acts which took place prior to the retroactive date, if any, stated in the policy.

3  This Policy covers only claims actually made against the Insured while the policy remains in effect and all coverage under the Policy ceases upon the termination of the policy, except for any automatic discovery period coverage that may be available,  unless the Insured purchases additional discovery period coverage available pursuant to the provisions of the policy.

4  During the first several years of being covered under a "claims-made" policy, claims-made premium rates are comparatively lower than rates on other types of policies. You can expect substantial annual premium increases, independent of overall rate level increases, until the claims-made relationship reaches maturity.

All other terms, conditions and limitations of this policy shall remain unchanged.

Bad People are Bad Employees - In the Army Too

The rampage allegedly committed by an Army staff sergent hits very close to home.  Our son is in Afganistan as I write this.  He was in Iraq as was his younger brother.

The actions of this single man has put our son at greater risk - of this there is no dispute.

The news is now coming out with stories of the sergent's past.  There are stories of drunk driving, assault, a hit and run accident, and stock fraud involving over $1,000,000.

Clearly this guy's past should have told someone of his character.  Why does the greatest Army in the world have guys like this in leadership positions?

Bad people make bad employees.  I guarantee there are other signs that this guy should not have been where he was.  How much more info would the Army have needed?

In your business if you have bad people - people of low character - working for you they will hurt you, in some way.  It may be small.  It may be huge.

Hire very slowly.   Fire very quickly.  Hire slow, fire fast.

Check new people out.  Build a culture of honesty and integrity in your operation.  Do not lie, cheat or steal and do associate with those that do.