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Showing posts with label Management. Show all posts
Showing posts with label Management. Show all posts

Tuesday, September 18, 2012

Financial Planning and Wealth Management


Nigeria is among the third world nations.

This gradation is so based on the level of development and growth indexes emanating from the confines of the country. Recently, due to economic activities and government plans, the country is termed an emerging economy.

It is positive to note that in recent times, growing economic activities in the nation has started showing signs of producing a brand new sets of millionaires. Among them are educated and non educated, young and old, local and foreign, male and female, and most importantly those that are financially literate and illiterate. They are coming from virtually all diverse areas of businesses. Most vivid of them all are those in banking, oil and gas, sports, manufacturing, transportation, telecommunications, real estate and our darling entrepreneurs whom we call, buying and selling folk.

The numbers of these new sets of millionaires are bound to be expanding owing to the virgin nature of the country and the escalating demands of its over 140 million citizens and unknown number of aliens. Equally, worthy of note is the VISION 2020 proposed by the present president, President Umaru Musa Yar' Adua to place Nigeria among the top 20 economies of the world by that year.

As noble as the ideas are, and as all spanners are now at work to realize this vision, creation of more wealth poses more problems less than the eyes can see in terms of retaining the wealth so created. On this note stands the need for a financial planner in wealth management. This notion remains novel, yet it sounds quite strange as many of our citizenry both individuals and cooperate bodies may not understand its place in economic affairs. Mr. President saw it as a dire need thus, in his state visit to Switzerland earlier this year, he called on Nigerian business community living there to come home and give a helping hand to realizing this dream.

This service has been well established in developed countries and it accounts for the quantum leap in these nations wealth. It is not a chance occurrence to see empires abroad that has lasted for more than four decades and still counting. Among them, a word like PRIVATE WEALTH MANAGEMENT is quite a regular which denotes a specialized service rather than a generally offered service. According to Morgan Stanley a foreign financial service provider, "private wealth management" is a service reserved for clients with investments worth over $20 million.

Based on this reason, the importance of a financial planner cannot be over emphasized. He occupies a central position akin to that of a coach. In his team are bankers, lawyers, insurers, real estate brokers, stockbrokers et al.

Their duty depends on the originators instruction.

This duty separates them from other the traditional financial services practitioners. Thus for a beginner he can be a trusted friend and guide to reach a set financial destination. For those who have counted a few millions, this strategic plans multiplies your wealth, for those in the multi million arena, their expertise will sustain, safeguard and transfer your hard earned wealth to your desired recipients.

Cases abound of empires in multiples that have nose dived and disintegrated at the demise of their founders. Similarly, a person's individual law does offer one's wealth to unapproved persons. Also, probate taxes and mismanagement of wealth are not left out.

The sole work of a financial planner in wealth management is to use various wealth management options to protect the clients' wealth. When this is done the life span of wealth is protected and prolonged while a nation's wealth is buoyed.

Get a financial planner today!




Send your comments to igwenazor@gmail.com




Friday, August 24, 2012

Adding Asset Value by Sound Property Management


Today's tough economic times requires owners of income producing real estate to focus on sound property management practices to ensure that their investment remains income producing. With the continuing tightening of business credit, to increasing costs of conducting business for the user of commercial real estate space, owners must insure that their investment is continuing to operate on a profitable basis month-to-month and returning the desired annual return for the owner.

It is critical that owners understand property management best practices to achieve financial and investment asset returns year after year. The best way to insure success is to implement a comprehensive property management program. Most owners hire experienced property management firms to manage all aspects of managing their assets if they do not have the experience nor the time and knowledge to do so. It is imperative to fully understand various legal, administrative, landlord-tenant relations/laws, building code and a host of other aspects of owning investment real estate for success, not to mention to keep the owner out of potential legal trouble.

This article is meant to provide a summary of some of the most important elements of a comprehensive property management program that not only provides benefits for ownership, but also benefits users (tenants) as well. The following represents some key elements of such a program:

1. Proper tenant screening: credit checks, review of financial statements, review bank accounts (past 60-90 days), names of current and previous suppliers for reference checks, business plan (if start-up), existing client/customer base.

2. Understand tenant's business structure: sole proprietor, LLC, S-corp, C-corp.

3. Fit their space requirement and line of business to your property: understand how tenant's business (industry, hours of operation, etc.) fits with you property type and current tenant mix if not standard office property, retail, etc., will the tenant request/require expansion space in the near future, for high profile tenants, what kind of tenant build-out will be required and cost.

4. Operating costs: what, if any, property operating costs can be passed through to tenants, energy efficiency/rebate programs from local utility companies, monitoring energy usage, property tax assessments, proper insurance.

5. Lease negotiations: an experienced management firm is invaluable here with the many issues and requirements that make-up a well drafted and comprehensive agreement.

6. Routine vs. emergency maintenance issues: preventative maintenance program, contractor relationships, in-house personnel.

7. Marketing/Leasing: market knowledge, broker, user contacts, advertising/promotion programs.

8. Tenant retention: existing tenant/property management reporting system, lease renewal program, property enhancement program.

9. Landlord-tenant requirements: compliance with federal, state and local laws.

10. Fire/life safety and building codes: compliance with national, state and local laws and ordinances.

The foregoing represents some important considerations for managing any investment property. A properly implemented and maintained property management program is a critical component for ownership success for any type of investment real estate. Especially in these tough economic times, it is smart to full appreciate how a professionally managed property can add value to your investment as well as add value to you tenants and will go along way toward tenant retention, which under any circumstance will result in profitable real estate returns.




Scott has a multi-disciplined real estate background covering over 19 years' of experience in commercial real estate and management field with extensive experience in acquisitions, leasing, options, easements, contract negotiations, due diligence, feasibility, and zoning requirements. Scott's background involves managing property investment portfolios, conducting market studies, site and zoning analysis, financial analysis and researching land-use and zoning requirements to gain jurisdictional approvals, and Planning and Zoning Board relations.




Tuesday, August 7, 2012

Overworked Or Overwhelmed? The Struggle For Time Management


Here is a multiple-choice quiz question:

Which word best describes the typical working American today:

A) Overworked

B) Underworked

C) Energetic

D) Lazy

While much has been written of late as to whether A, B, C, or D, is correct, the most appropriate answer may well be: "None of the above." Powerful social forces have the potential to turn each of us into human whirlwinds charging about in "fast forward." Work, time away from work, and everything in between appear as if they are all part of a never-ending, ever-lengthening to-do list, to be handled during days that race by.

To say that we work too many hours, and that too much work is at the root of the time-pressure we feel and the leisure we lack, is to miss the convergence of larger, more fundamental issues. We could handle the longer hours (actually less than 79 minutes more per day) that we work compared to the Europeans. It's everything else competing for our attention that leaves us feeling overwhelmed. Once overwhelmed, the feeling of overworked quickly follows.

Nearly every aspect of American society has become more complex even since the late-1990s. Traveling is becoming more cumbersome. Learning new ways of managing, and new ways to increase productivity takes its toll. Merely living in America today and participating as a functioning member of society guarantees that your day, week, month, year and life, and your physical, emotional, and spiritual energy will easily be depleted without the proper vantage point from which to approach each day and conduct your life.

Do you personally know anyone who works for a living who consistently has unscheduled, free stretches? Five factors, or "mega-realities," are simultaneously contributing to the perceptual and actual erosion of leisure time among Americans, including:

* Population growth;

* An expanding volume of knowledge;

* Mass media growth and electronic addiction;

* The paper trail culture; and

* An over-abundance of choices.

Population

From the beginning of creation to 1850 A.D. world population grew to one billion. It grew to two billion by 1930, three billion by 1960, four billion by 1979, and five billion by 1987, with six billion by 1996, and seven billion en route. Every 35 months, the current population of America, 307,059,724 people, is added to the planet.

The world of your childhood is gone, forever. The present is crowded and becoming more so. Each day, world population (births minus deaths) increases by more than 260,000 people. The Census Bureau reports the United States records a birth every 8 seconds and a death every 13 seconds while adding an immigrant every 25 seconds. The result is an increase of one person every 12 seconds, hence 5 per minute, 300 per hour, 7200 per day. In a decade: 26 million.

Regardless of your political, religious, or economic views, the fact remains that geometric growth in human population permeates and dominates every aspect of the planet and its resources, the environment and all living things. This is the most compelling aspect of our existence, and will be linked momentarily to the four other mega-realities.

When JFK was elected President, domestic population was 180 million. It grew by 70 million in one generation. Our growing population has not dispersed over the nation's 5.4 million square miles. About 97 percent of the U.S. population resides on 3% of the land mass. Half of our population resides within 50 miles of the Atlantic or the Pacific Ocean, and 75% of the U.S. population live in urban areas, with 80% predicted by the end of the nineties.

More densely packed urban areas have resulted predictably in a gridlock of the nation's transportation systems. It is taking you longer merely to drive a few blocks; it's not your imagination, it's not the day of the week or the season, and it's not going to subside soon. Our population and road use grow faster than our ability to repair highways, bridges and arteries. In fact, vehicles (primarily cars) are multiplying twice as fast as people, currently approaching 400,000,000 vehicles, compared to 165,000,000 registered motorists.

Some 86% of American commuters still get to work by automobile, and 84% of inner city travel is by automobile. The average American now commutes 157,600 miles to work during his working life, equal to six times around the earth. Commuting snarls are increasing.

City planners report there will be no clear solution to gridlock for decades, and all population studies reveal that our nation's metropolitan areas will become home to an even greater percentage of the population. Even less populated urban areas will face unending traffic dilemmas. If only the gridlock were confined to commuter arteries. However, shoppers, air travelers, vacationers, even campers--everyone in motion is or will be feeling its effects.

Knowledge

Everybody in America fears that he/she is under-informed. This moment, you, and everyone you know, are being bombarded on all sides. Over-information wreaks havoc on the receptive capacities of the unwary. The volume of new knowledge broadcast and published in every field is enormous and exceeds anyone's ability to keep pace. All told, more words are published or broadcast in a day than you could comfortably ingest in the rest of your life. By far, America leads the world in the sheer volume of information generated and disseminated.

Increasingly, there is no body of knowledge that everyone can be expected to know. In its 140th year, for example, the Smithsonian Museum in Washington D.C. added 942,000 items to its collections. Even our language keeps expanding. Since 1966, more than 60,000 words have been added to the English language--equal to half or more of the words in some languages. Harvard Library subscribes to 160,000 journals and periodicals.

With more information comes more misinformation. Annually, more than 40,000 scientific journals publish over one million new articles. "The number of scientific articles and journals published worldwide is starting to confuse research, overwhelm the quality-control systems of science, encourage fraud, and distort the dissemination of important findings," says New York Times science journalist William J. Broad.

In America, too many legislators, regulators and others entrusted to devise the rules which guide the course of society take shelter in the information overglut by intentionally adding to it. We are saddled with 26-page laws that could be stated in two pages, and regulations that contradict themselves every forth page. And, this phenomenon is not confined to Capitol Hill. Impossible VCR manuals, insurance policies, sweepstakes instructions, and frequent flyer bonus plans all contribute to our immobility.

Media Growth

The effect of the mass media on our lives continues unchecked. Worldwide media coverage certainly yields benefits. Democracy springs forth when oppressed people have a chance to see or learn about how other people in free societies live. As we spend more hours tuned to electronic media, we are exposed to tens of thousands of messages and images.

In America, more than three out of five television households own VCRs, while the number of movie tickets sold and videos rented in the U.S. each exceeded one billion annually starting in 1988. More than 575 motion pictures are produced each year compared to an average of 175 twelve years ago. In 1972, three major television networks dominated television--ABC, NBC and CBS. There are now more than 400 full-power independent television stations and many cable TV subscribers receive up to 140 channels offering more than 72,000 shows per month.

All told, the average American spends more than eight solid years watching electronically how other people supposedly live.

To capture overstimulated, distracted viewers, American television and other news media increasingly rely on sensationalism. Like too much food at once, too much data, in any form, isn't easily ingested. You can't afford to pay homage to everyone else's 15 minutes of fame. As Neil Postman observed, in Amusing Ourselves to Death: Public Discourse in the Age of Television, with the three words, "and now this..." television news anchors are able to hold your attention while shifting gears 180 degrees.

Radio power--Radio listenership does not lag either. From 5:00 a.m. to 5:00 p.m. each weekday in America, listenership far surpasses that of television viewership. Unknown to most people, since television was first introduced, the number of radio stations has increased tenfold, and 97% of all households own an average of five radios, not counting their car radios. On weekdays, 95.2% of Americans listen to radio for three hours and fourteen minutes. Shock-talk disc jockeys make $300,000 to $600,000 per year and more, plus bonuses.

With a planet of more than five billion people, American media are easily furnished with an endless supply of turmoil for mass transmission. At any given moment somebody is fomenting revolution somewhere. Such turmoil is packaged daily for the evening news, whose credo has become, "If it bleeds, it leads." We are lured with images of crashes, hostages, and natural disasters. We offer our time and rapt attention to each new hostility, scandal or disaster. Far more people die annually from choking on food than in plane crashes or by guns, but crashes and shootings make for great footage, and play into people's fears.

With its sensationalized trivia, the mass media overglut obscures fundamental issues that do merit concern, such as preserving the environment.

Meanwhile, broadcasts themselves regularly imply that it is uncivil or immoral not to tune into the daily news--"all the news you need to know," and "we won't keep you waiting for the latest...." It is not immoral to not "keep up" with the news that is offered. However to "tune out"--turn your back on the world--is not appropriate either. Being more selective in what you give your attention to, and to how long you give it, makes more sense.

Tomorrow, while dressing, rather than plugging in to the mass media, quietly envision how you would like your day to be. Include everything that's important to you. Envision talking with others, making major decisions, having lunch, attending meetings, finishing projects, and walking out in the evening. You'll experience a greater sense of control over aspects of your position that you may have considered uncontrollable.

There is only one party who controls the volume and frequency of information that you're exposed to. That person is you. As yet, few people are wise information consumers. Each of us needs to vigilantly guard against being deluded with excess data. The notion of "keeping up" with everything is illusory, frustrating, and self-defeating. The sooner you give it up the better you'll feel and function.

Keen focus on a handful of priorities has never been more important. Yes, some compelling issues must be given short shrift. Otherwise you run the risk of being overwhelmed by more demanding issues, and feeling overwhelmed always exacerbates feeling overworked.

Paper Trails

Paper, paper, everywhere but not a thought to think. Imagine staring out the window from the fifth floor of a building and seeing a stack of reports from the ground up to your eye level. This 55-foot high stack would weigh some 659 pounds. Pulp & Paper reports that Americans annually consume 659 pounds of paper per person. In Japan, it's only 400 pounds per person; in Europe, Russia, Africa, Australia, and South America, far less.

Similar to too much information, or too many eyewitness reports, having too much paper to deal with is going to make you feel overwhelmed, and overworked. Americans today are consuming at least three times as much paper as 10 years ago. The long held prediction of paperless offices, for now, is a laugher.

There are two basic reasons why our society spews so much paper:

* We have the lowest postal rates in the world, and

* We have the broadest distribution of paper-generating technology.

In a single year, Congress received more than 300,000,000 pieces of mail, up from 15,000,000 in 1970. Nationwide more than 55,000,000 printers are plugged into at least 55,000,000 computers, and annually kick out billions of reams. Are 18,000 sheets enough? Your four-drawer file cabinet, when full, holds 18,000 pages.

The Thoreau Society reports that last year, Henry David Thoreau, who personally has been unable to make any purchases since 1862, received 90 direct mail solicitations at Walden Pond. Under our existing postal rates, catalog publishers and junk mail producers can miss the target 98% of the attempts and still make a profit--only 2% of recipients need to place an order for a direct mailer to score big.

Direct mailers, attempting to sell more, send you record amounts of unsolicited mail. In 1988, 12 billion catalogs were mailed in the U.S., up from five billion in 1980--equal to 50 catalogs for every man, woman, and child in America. In the last decade, growth in the total volume of regular, third-class bulk mail (junk mail) was 13 times faster than growth in the population. The typical (overworked? or overwhelmed?) executive receives more than 225 pieces of unsolicited mail each month, or about 12 pieces daily. Even Greenpeace, stalwart protector of the environment, annually sends out 25,000,000 pieces of direct mail.

Attempting to contain what seems unmanageable, our institutions create paper accounting systems which provide temporary relief and some sense of order, while usually becoming ingrained and immovable, and creating more muddle. Certainly accounting is necessary, but why so complicated? Because in our over-information society reams of data are regarded as a form of protection.

Why is documentation, such as circulating a copy to your boss, so critical to this culture? Because everyone is afraid of getting his derriere roasted! We live in a culture of fear, not like a marshall law dictatorship, but a form of fear nonetheless. "If I cannot document or account, I cannot prove, or defend myself."

Attempting to contain what seems unmanageable, organizations and institutions, public and private, create paper accounting systems. These systems provide temporary relief and some sense of order. Usually they become ingrained and immovable, while creating more muddle. These accounting systems go by names such as federal income taxes, deed of trust, car loan, etc. Sure, accounting is necessary, but why so complicated? Because in the era of over-information, over-information is used as a form of protection.

Of the five mega-realities, only paper flow promises to diminish some day as virtual reality, the electronic book, and the gigabyte highway are perfected. For the foreseeable future, you're likely to be up to your eyeballs in paper. Start where you are--It is essential to clear the in-bins of your mind and your desk. Regard each piece of paper entering your personal domain as a potential mutineer or rebel. Each sheet has to earn its keep and remain worthy of your retention.

An Over-abundance of Choices

In 1969, Alvin Toffler predicted that we would be overwhelmed by too many choices. He said that this would inhibit action, result in greater anxiety, and trigger the perception of less freedom and less time. Having choices is a blessing of a free market economy. Like too much of everything else, however, having too many choices leads the feeling of being overwhelmed and results not only in increased time expenditure but also in a mounting form of exhaustion.

Consider the supermarket glut: Gorman's New Product News reports that in 1978 the typical supermarket carried 11,767 items. By 1987, that figure had risen to an astounding 24,531 items--more than double in nine years. More than 45,000 other products were introduced during those years, but failed. Elsewhere in the supermarket, Hallmark Cards now offers cards for 105 familial relationships. Currently more than 1260 varieties of shampoo are on the market. More than 2000 skin care products are currently selling. 75 different types of exercise shoes are now available, each with scores of variations in style, and features. A New York Times article reported that even buying leisure time goods has become a stressful, overwhelming experience.

Periodically, the sweetest choice is choosing from what you already have, choosing to actually have what you've already chosen. More important is to avoid engaging in low level decisions. If a tennis racquet comes with either a black, or brown handle, and it's no concern to you, take the one the clerk hands you.

Whenever you catch yourself about to make a low level decision, consider: does this really make a difference? Get in the habit of making fewer decisions each day--the ones that count.

A Combined Effect

In a Time Magazine cover story entitled, "Drowsy America," the director of Stanford University's sleep center concluded that, "Most Americans no longer know what it feels like to be fully alert." Lacking a balance between work and play, responsibility and respite, "getting things done" can become an end-all. We function like human doings instead of human beings. We begin to link executing the items on our growing "to do" lists with feelings of self-worth. As the list keeps growing longer, the lingering sense of more to do infiltrates our sense of self-acceptance. What's worse, our entire society seems to be irrevocably headed toward a new epoch of human existence. Is frantic, however, any way to exist as a nation? Is it any way to run your life?

John Kenneth Galbraith studied poverty stricken societies on four continents. In The Nature of Mass Poverty, he concluded that some societies remain poor (often for centuries) because they accommodate poverty. Although it's difficult to live in abject poverty, Galbraith found that many poor societies are not willing to accept the difficulty of making things better.

As Americans, we appear poised to accommodate a frenzied, time-pressured existence, as if this is the way it has to be and always has been. This is not how it has to be. As an author, I have a vision. I see Americans leading balanced lives, with rewarding careers, happy home lives, and the ability to enjoy themselves. Our ticket to living and working at a comfortable pace is to not accommodate a way of being that doesn't support us, and addressing the true nature of the problem head-on:

The combined effect of the five mega-realities will continue to accelerate the feeling of pressure. Meanwhile, there will continue to be well-intentioned but misdirected voices who choose to condemn "employers" or "Washington DC" or what have you for the lack of true leisure in our lives.

A Complete Self

We are, however, forging our own frenetic society. Nevertheless, the very good news is that the key to forging a more palatable existence can occur one by one.

You, for example, are whole and complete right now, and you can achieve balance in your life. You are not your position. You are not your tasks; they don't define you and they don't constrain you. You have the capacity to acknowledge that your life is finite; you cannot indiscriminately take in the daily deluge that our culture heaps on each of us and expect to feel anything but overwhelmed.

Viewed from 2021, 2011 will appear as a period of relative calm and stability when life moved at a manageable pace. When your days on earth are over and the big auditor in the sky examines the ledger of your life, she'll be upset if you didn't take enough breaks, and if you didn't enjoy yourself.

On a deeply felt personal level, recognize that from now on, you will face an ever-increasing array of items competing for your attention. Each of the five mega-realities will proliferate in the next decade. You cannot handle everything, nor is making the attempt desirable. It is time to make compassionate though difficult choices about what is best ignored, versus what does merits your attention and action.




Jeff Davidson is "The Work-Life Balance Expert®," a preeminent time management authority, the author of 56 mainstream books, and an electrifying professional speaker, making 778 presentations since 1985 to clients such as Kaiser Permanente, IBM, American Express, Lufthansa, Swissotel, America Online, Re/Max, USAA, Worthington Steel, and the World Bank. He the author of "Breathing Space," and "Simpler Living," and his 60 Second Series with Adams Media, including the 60-Second Organizer, 60-Second Self-Starter, and 60-Second Innovator, are popular titles in China, Japan, Malaysia, Indonesia, Russia, Turkey, Saudi Arabia, Italy, Poland, Spain, France, and Brazil.

Jeff has been widely quoted in the Washington Post, Los Angeles Times, Christian Science Monitor, New York Times, and USA Today. Cited by Sharing Ideas Magazine as a "Consummate Speaker," Jeff believes that career professionals today in all industries have a responsibility to achieve their own sense of work-life balance, and he supports that quest through his websites http://www.BreathingSpace.com and http://www.Work-LifeBalance.net




Thursday, August 2, 2012

Records Management And Its Key Role In Business Continuity And Disaster Recovery


The UK's Records Management Society defines records management as, "the process by which a company manages all the elements of records whether externally or internally generated and in any format or media type, from their inception/receipt, all the way through to their disposal". In this digital age many organisations have set up comprehensive systems to ensure that electronic records are safely stored and backed up, with a plan in place should an unexpected crisis occur. This makes a great deal of sense since some estimates suggest that over 90% of businesses that have had a major data processing disaster will go out of business within 5 years.

These days most employees rely on electronic systems to do their job and lost or damaged files can spell disaster. However while IT systems are often carefully considered and any perceived emergencies planned for, paper records can frequently be neglected. It's difficult to pinpoint why this is except to say that perhaps manual records are considered unimportant when compared to expensive IT systems. Perhaps it is also the case that the sheer physicality of a paper record makes people (wrongly) believe it is not as important to safeguard as a computer file that could more easily be destroyed or corrupted. But to take this viewpoint is ill advised and short sighted.

Many organisations are under a legal obligation to keep certain records for a specified period of time. For example, financial institutions are now required to keep mortgage loan files for up to ten years after the loan has been repaid. Some medical records must be stored throughout the life of the patient and government institutions are now required to keep certain records for up to 50 years. Companies pay a high price for inadequate record keeping. In January 2003 The Bank of Scotland was fined £1.25m for breaching anti-money laundering rules on the identification of customers because it had failed to retain a copy of customer ID or a record of where it was kept. Often there is a legal requirement to keep the original paper document even when it exists electronically and in any action, the legal weight of records will be greater if the original version is produced. The Business Archives Council, which promotes the preservation of business records of historical importance, gives some other reasons why it can be prudent to save original documents.

Among their points are:

* Transparent corporate governance

Good record-keeping is an integral part of transparent corporate governance. The implementation of the Sarbanes-Oxley Act in the US has brought heightened scrutiny of an organisation's internal controls and practices. Trustworthy and accurate records serve as a bedrock for a company's reporting systems and ensure that they comply with best practice

* A key part of Corporate Social Responsibility

Caring for your heritage can be a key part of a Corporate Social Responsibility policy. Businesses have impacted on the lives of their staff, customers, shareholders and on the communities in which they operate. Business archives record how lives have been affected and changed. Some companies have publicly acknowledged that their own histories are an important piece in the jigsaw of the past and that they have a duty of care to their own archives. Making business archives accessible to the public is a real contribution to the community.

* Brand Building

The past can be used to support present performance. Archives add detail and depth to the public image of a company, differentiating it from the competition. Celebrating significant anniversaries or birthdays brings the long-standing nature and the achievements of the company to the fore. Historic information and images can also be used to support particular brands emphasising their position in the market place.

* A market for nostalgia

Exploiting your heritage can bring in revenue. Companies with well known advertising and packaging logos and images can licence their reproductions in all kinds of ways: the Guinness Toucan, Colman's mustard and Pears soap are just a few examples of well known images that bring in money for their owners.

* Education

Archives can be used within a business to inform and educate new recruits about a company's history and successes and pass on company values and principles. Archives can also be used as an educational resource by learners of all ages - some companies have produced very popular and highly regarded educational resources aimed at schoolchildren.

Clearly some of these points would not be put under the heading of 'Business Critical' but they do give further background as to why paper records can be so important.

The first rule of thumb for any organisation should be to asses their records according to the following criteria: business value, legal value, administrative value, historical value. The records can then be classed as vital, important, useful or non-essential. For those records deemed vital, the next step is to ensure that the storage of those records is an integral part of your business continuity plan and this means considering how and where they are stored. In exactly the same way as you would safeguard your IT systems and electronic records, consideration should be given to the possible disaster scenarios and how you can guard against loss or damage of those records.

For many companies the first obvious factor to think about is physical location. A Morgan Stanley Brokers note in June 2003 estimated that 70% of businesses are storing records on their own premises. Clearly this has huge implications should that office be subject to any kind of negative event. The horrific and devastating events of 9/11 showed all too clearly the potential risks of storing vital business records on site with many thousands of important documents destroyed. But if not on site then where is the best place? Some companies discount off site storage for those records that are deemed 'active' since they can be concerned that, should they need them, it will be a difficult process to retrieve them but any professional records management company should be able to deliver a document back to you within 24 hours and/or a scanned electronic version within a few hours.

If that is not acceptable then consideration should be given to copying the record and placing the original off site. The same factors apply to long term or 'inactive' storage. When deciding on an off site storage provider another important point to consider includes the environmental conditions of the site. Paper needs to be stored in cool consistent temperatures with a tight humidity band. It is worth reading through BS5454 since this sets the environmental standard for the storage of archival documents. Other points to assess include the risk of flood, fire or terrorist attack and, should any of these occur, how does the records management company in question plan ahead to handle it.

The National Archives previously known as the Public Records Office, has some of the country's most important records. Acting as the UK government's official archive, The National Archives looks after many thousands of documents containing 900 years of history from the Domesday Book to the present. The National Archives keep the majority of their material at their headquarters in Kew but they also keep a portion of their archive off site at DeepStore. They suggest that, in order to minimise damage to paper records, organisations should consider the following when planning for disaster.

* The best way to deal with potential disasters is to stop them happening. A first step is to identify and assess sources of potential risk in terms of the probability of an incident occurring, and likely impact if it does, including the costs of recovery.

* The process should include a detailed inspection of the premises and operational activities on site, and consultation with staff in each work area, particularly those such as caretakers or cleaners who have day to day responsibility for the building. It may also be necessary to consult specialist external sources of advice from individuals such as fire prevention offices, security advisers, insurance providers and a qualified conservator.

* Risk assessments should be reviewed at least annually to take account of changed circumstances and a systematic logging of any previous incidents will help to refine those assessments.

* In addition, it is important to be aware of temporary increases in risk, e.g. due to the presence of contractors on-site, extreme weather conditions, unusual activity in adjacent premises. Common sources of risk to paper records (of varying degrees of seriousness) include extreme weather, leaking roofs, plumbing problems, smoking, poor storage of inflammable materials, malfunctioning electrical wiring, lighting, arson or vandalism (up to half of UK fire are started deliberately), gas leaks, industrial accidents in nearby premises and terrorism.

Anna Buelow, Head of Preservation, at The National Archives gives some advice as to how a company should tackle a problem if, despite planning to avoid it, the worst occurs and paper records are damaged by water. She explains, "The prime concern in a disaster situation is to take what measures are necessary to salvage or limit the damage to as many of the records as possible. Ideally, the recovery process should start with a preliminary assessment of those documents in the affected area, designated as being the most valuable or important, identified by the first senior member of staff to come on site.

"For slightly damaged material it may be possible to air dry the items. This should be done in a large, well ventilated area and supervised by an experienced professional if possible. Anything that is saturated should be removed from boxes, packed in polythene bags and labeled. They should then be frozen and dealt with by a specialist agency."

And what about fire damage? Specialist company Harwell Restoration Services offer the following advice, "Depending on the design of a given building during a fire the smoke residues can travel great distances from the source of the actual fire, potentially creating widespread damage, even if the fire itself only affected one room. Within an office or library, this smoke can present an immense problem, as without restoration, the damaged paper will not safe or practical to use. Fire damage is restorable in the vast majority of cases. Tightly packed paper will not necessarily burn and damage, chiefly caused by smoke residue, is usually restricted to the outer edges, leaving the information inside the book block, archive box or file in tact."

So when considering off site records management companies it is important to make sure that they have first rate storage facilities. Look carefully at all their systems and ask lots of questions. It's also worth thinking about where they are sited since even if their building or unit seems safe, a fire or flood in a neighbouring unit could cause real problems.

Despite the emergence of the so-called 'electronic age, it is clear that there will be a need to store paper records for many years to come. In the light of this is it vital that they are treated as a key part of the business and every company's business continuity plan should take this into account.




Steve Holmes is a leading expert on records management and the general manager of DeepStore, a unique records storage facility located 150m below ground in Cheshire, UK. Please visit http://www.deepstore.com




Friday, May 11, 2012

Secession and Risk Management


My business expertise is in the Insurance Risk Management field. I consult individuals and businesses on the best ways to manage their risks. So, when considering the concepts of secession for US states, I look at their exposures to risk and the actions they can take to minimize their risks.

Here are just a few of the risk exposures that states and individuals face, and solutions to manage those risks in the best ways.

Monetary Collapse

The risk here is collapse of the dollar's value, leaving anyone with dollar holdings and earnings with nearly worthless money. Add to that risk the precursor to collapse, which would be bank closings and suspension of credit card usage. A medium of exchange is necessary for commerce. If your medium of exchange becomes worthless, your ability to engage in commerce will rely only on barter. And, for most individuals, barter is a very limited medium of exchange. What would a normal city-dweller take to the grocer to exchange for food? You likely have nothing the grocer needs.

Article I, Section 8 of the US Constitution clearly states that the Congress shall have the power to "coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures." Delegating this power to the Federal Reserve was unconstitutional. The word is "coin" money, a verb. That means minting coins, not printing paper currency. The printing of irredeemable paper currency without underlying precious metal value is counterfeiting.

The US Congress has spent trillions of dollars of worthless paper money and taken on more trillions in debt. There is only one sure consequence of counterfeiting, and that is the collapse of the monetary system. Eventually, the money will become worthless. But before that occurs, the money will go through a period of massive inflation. It will look as though prices for goods and services are skyrocketing, but that is simply the way that inflation manifests itself in the marketplace. Today it takes a dollar to buy what a five-cent-piece would buy in the 1930s. The dollar's value has diminished by 95% in that time. That also means that a person earning $100,000 in today's money could have lived the same standard of living in 1930 for $5,000.

The nations of the world made the gold-backed dollar the reserve currency for the world. A "reserve" currency means that every nation agreed to accept dollars in payment of debts. But now that the dollar has no real value, the world is forsaking the dollar as reserve. The world looks into America's future and sees no willingness toward fiscal responsibility or even the resolve to support the value of the dollar. Eventually the world will supplant the dollar with another reserve currency. When other nations are unwilling to accept dollars, any remaining value in American dollars will vanish.

A sub-risk in this topic is the timing and procedure used by the nations of the world as they move away from dollars. To prevent a worldwide collapse of the financial system, all nations must make perfectly-timed decisions relating to divesting themselves of American debt securities. Statistically, the chance for a mistake in timing among the nations of the world is extremely high. That means that collapse could happen very suddenly and without warning.

Monetary collapse in the United States is unavoidable. There is nothing that Washington is willing to do to avert the disaster. There is nothing that Washington could do to avert the disaster. They have already gone over the cliff. They simply haven't hit bottom yet.

Any new nation that replicates US monetary policy will suffer the same consequences over time. A new nation that establishes a gold and silver-backed monetary system, in which gold and silver coins are the only true money, will thrive.

A new nation has only two choices for a new monetary system. Choice One is a gold and silver standard, sound money, no inflation and no debt. Choice Two is counterfeit currency, fractional reserve banking and loans from the International Monetary Fund to operate. Choice One guarantees liberty. Choice Two guarantees financial slavery.

A state that secedes from the Union to form a new nation must establish their monetary system before they do anything else. All private, public and commercial exchange, and the viability of the new nation will turn on this one decision.

Taxation

The risk here is ever-increasing taxation to levels that are unsustainable, reducing citizens to serfs and state property.

Americans are taxed in every way possible. There are personal income taxes, business income taxes, capital gains taxes, inheritance taxes, user fees, property taxes, license fees, sales taxes, Social Security and Medicare taxes and many others. The Federal tax code runs into the thousands of pages, and is so complicated that even the IRS cannot agree on the meaning of the code. The Federal Government has cleverly required employers to collect taxes at the paycheck level, making American employers the tax collectors for the Feds. But this also has the effect of making people seemingly unaware of the total tax burden confiscated from them. The concept of voluntary taxation is pure fiction.

In a new nation, all of the US Federal taxation would cease. Not one more dollar would flow to Washington. Hundreds of billions of dollars would not be extracted by force from individuals in the new nation and sent to Washington. Every individual and business that earns income would immediately begin receiving the gross amount of their earnings. So, if your weekly salary was $1,000, your paycheck would be for $1,000. Imagine that!

The method of taxation that carries the lowest risk of abuse, and the highest levels of individual liberty is the national sales tax. A new nation could opt for no income tax, which would mean no income tax withholding. A new nation could raise their revenue from only sales tax, rather than a mix of taxation schemes. A national sales tax pulls revenue from all commerce in the new nation, not just citizens. Property taxes could be entirely abandoned as a taxation scheme. The only tax code that would exist is the codification of the sales tax. There would be no other code necessary, no individual tax filings, no tax liens, no tax foreclosures. There would be no deductions and no tax-exempt organizations. The new national sales tax could be divided among the counties and cities as needed.

Voter Fraud

The risk here is that when voting cannot be determined to be accurate, confidence in the outcome of an election or referendum vanishes. In addition, this means that voting outcomes can be manipulated. In America, voting has become an anachronistic relic, and only serves to placate the populace and deceive them into believing that their vote counts for something.

It has been proven over the last 10-15 years that electronic voting machines are wholly unreliable and that their systems can be hacked to change voting outcomes. Therefore, when voting outcomes can be rigged, all elections and referendums are subject to suspicion. This happens from the highest office to the lowest, and in every referendum. The only way to alleviate this problem is through a physical ballot system, which can be counted and verified.

A new nation will have the ability to organize the new government any way it wishes to protect the integrity of the voting process.

US Debt Level

The risk here is bankruptcy and dissolution of the US Federal Government.

The US debt is almost unknowable. There are so many spending programs that are not considered in Generally Acceptable Accounting Principles (GAAP) on government books that the brightest minds cannot know the total amount of Congressional spending. Congress increases the so-called debt ceiling in every session of Congress, recognizing absolutely no restraint on their ability to spend.

A new nation will instantly forsake the US debt, leaving Washington and the remaining United States to fend for themselves. The new nation plots its new course with no debt.

Regulation

The risk here is that unconstitutional Federal regulations stifle human behavior and commerce, steal individual rights and liberty, and make good governance impossible.

There is not one second of any 24-hour period in which an American citizen is not regulated by some law. There is not one human act that an American citizen can do that is not regulated by some Federal law. Even thoughts are regulated in today's America when you consider hate crimes laws on the books.

A new nation would start with no burdensome regulations. This would allow maximum freedom for the individual.

Health Care

The risk here is that health care in the USA has been regulated so much by the Federal Government that it is becoming unmanageable. The unconstitutional health care legislation currently being negotiated in Congress will add thousands more pages to Federal regulations, and make matters worse for individuals and insurance companies.

A new nation will have no health care system. But if the citizens of the new nation decided that they wanted to spend their own money on a national healthcare system, they could do so with only their own resolve and funds.

War and Defense Spending

The risk here is that America is experiencing negative outcomes from its foreign policy decisions, which are carried out by the military.

Any military action done outside the borders of the United States is an offensive action. You cannot defend your country by attacking another on their soil. Defense means to defend, to repel, to thwart attack. Maintaining military bases on foreign soil is unconstitutional and costly.

The defense budget for the United States has become so large that it can scarcely be controlled. And it's more than just prosecuting foreign wars that runs up the cost. Hundreds of billions are spent annually for new weapons systems that are unnecessary, as well as maintaining the existing weapons systems. Every one of the 50 states has either a military base or businesses that help produce military goods...or both. The Department of Defense cleverly planned it that way so that cutbacks would be very unpopular and difficult to achieve.

In a new nation, properly organized, there would be no standing army, but a citizen militia, just like each state had in 1776. A new nation would walk away from the gigantic defense budget of the USA. If a new nation wanted new weapons systems, it would have to look to its founding documents for authority, then pay for the new toys itself.

Social Programs

Over time, Americans have had an intolerably heavy burden of social spending laid on their backs. Many programs are so deeply buried in the Federal budget that they are known only to the ones who benefit from them. Programs like farm subsidies, loan guarantees, and thousands of government grants given out to either promote or prevent certain human actions fill the various Cabinet-level agencies' spending. We usually only discuss Social Security and Medicare, but think about obscure pork barrel projects. The long list of pet projects passed by Congress in a record deficit year includes $1.8 million to study why pigs smell. Other gems include $1.9 million for a water taxi in Connecticut, $3.8 million to preserve a baseball stadium in Detroit and $380,000 for a fairground in Kotzebue, Alaska, just above the Arctic Circle.

In a new nation, all of the criminal, unconstitutional spending done by all the 50 states vanishes overnight. The new nation is free from the burden of contributing their hard-earned money to waste and fraud.

Education

The risk under consideration is whether the state has an obligation to educate its citizens or not. If the new nation decides to fund education, it must collect more taxes from the people residing in the new nation. If it decides to forego compulsory education and allow parents to educate their own children and themselves, the new nation will allow for maximum individual liberty and responsibility.

Immigration

The risk in immigration is normally the strain it places on government services. But a new nation, properly organized and formed, would turn the immigration question on its head, and make many of the immigration concerns irrelevant.

If the new nation adopted the "corporation model," no immigrant could gain citizenship without a procedure of some sort. No children born of immigrants would achieve automatic citizenship. If the new nation resisted the Siren's song to pay welfare benefits, there would be no drain on the coffers of the new nation. The free marketplace would handle the influx of new individuals coming to the new nation to live. They would have to work and earn income, or leave the way they came. The new nation could also use its citizenship as an incentive to attract the most talented immigrants from around the world. Prices for goods, services, food and housing would accurately reflect supply and demand and directly affect immigration. Said another way, why would you immigrate to the new nation if you could not find work, housing, food, and you knew there were no welfare benefits? But if work, housing and food were available, the immigrant would contribute to the new society.

Constitutional Governance

I left this point until last to emphasize the greatest risk of all. The risk here is how to prevent fraud. The US Constitution is a mere compact between parties, and it cannot bind any two parties into a legal contract. Consequently, the US Federal Government can enact any legislation it pleases and spend any money it pleases in any manner it pleases. It truly answers to no one but itself. So the general understanding of constitutional law is misleading. My points listed above that direct your attention to the US Constitution are true, but the fact that the Constitution has no authority makes many of the arguments moot. It does not, however, diminish the risk for a seceding state. If anything, it increases the political risk. Any new government not founded on contract law is less than a gentlemen's agreement affirmed with a handshake.

A new nation would have the opportunity to create a new form of government that is actually a legal contract between all parties. The new government could be structured like a corporation. Each person who wanted citizenship would be required to execute a legal contract. No one would be automatically born into citizenship, but would have to attain the age of majority before becoming eligible for citizenship. Stock and voting rights would be issued to each citizen.

Conclusion

The overall recognition of risk found in this article is that a government not strictly limited cannot be controlled, and in such nations, individual liberty is lost.

But a government strictly limited in authority and scope can be successfully managed with the goals to "establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare and secure the blessings of liberty to ourselves and our posterity" (excerpted from the Preamble of the US Constitution). The founding documents for the new nation must be enforceable, and the corporation model would provide for this enforceability.

Try to envision yourself and your family in a new nation created by secession. All the people you meet are excited and breathless in their anticipation of the future. The general opinion of the populace is pure unbridled optimism. The new nation's economy is booming, the money is backed by gold and silver, and there is no inflation. "Now Hiring" signs are in all the shop windows. The newspaper's "Help Wanted" ads are packed full. The unemployment rate is effectively zero. Jobs go begging for want of people to fill them. Prices for goods and services are low, and the stores are loaded with goods. Manufacturers are streaming into the new nation to take advantage of the rare pro-business atmosphere. Wages are climbing steadily in manufacturing jobs as companies compete for the best and brightest to be their employees. New businesses are being created at a fever pace. Residential and commercial construction is at a high level to meet the demand of the new residents.

All because one state recognized this historic opportunity and chased the dream of liberty through the process of state secession.

Secession is the hope for mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.




Follow the secessionist movement at http://www.DumpDC.com.




Tuesday, March 27, 2012

Modern Debt Management Systems Can Produce Tremendous Savings


Consumer and personal debt is, perhaps, the number one problem facing most American families today. The reasons behind the tremendous surge in debt have been related to emerging socio-economic patterns suggesting that we've become a nation obsessed with lifestyles and consumerism.

America has always been a nation of consumers and the American people have always enjoyed one of the highest standards of living in the world. Something else has contributed to this national crisis.

What has changed in the last several decades is that we have developed very sophisticated technology to acquire debt. Debt acquisition is as close as your cell phone or personal computer and can be accomplished in a matter of seconds.

However, we have been slow in developing such sophisticated systems to manage that debt at the consumer level. We have been the victims of a technological gap between debt acquisition and debt reduction.

If you do not manage your debt, it will manage you. Or more precisely, your creditors will manage your debt for you and they will, of course, manage it in a way that is most favorable to them, not necessarily you.

At the consumer level, we tend to keep our debts separated, divided, and isolated in separate accounts, making it impractical, until recently, to strategically manage that debt.

Automated debt management systems have been in use by banks, insurance companies, and other institutions as needed to maintain cash reserve requirements but, until recently, have not been available at the consumer level due to the cost of developing and supporting these specialized cash flow management systems.

Many people in other parts of the world have had access to various debt reduction systems. In this country, however, it is a relatively new opportunity to systematically manage our personal and consumer debt. We now have access to affordable technology to manage our debt rather than allowing it to manage us.

First, let me explain what a modern debt management system is not.

It is not a set of instructions or a "How To..." book available from a variety of well intentioned sources which simply overstate the obvious; instructing us to "stop spending so much money", or "cut up our credit cards". It is not a "makeover" system which painfully rearranges our daily spending patterns.

It is not a static spreadsheet or plan for debt reduction which does not consider our day to day personal financial circumstances.

It does not involve the refinancing of existing debt or consolidating smaller short term debts into larger long term debts. It is not a self administered or pre-calculated repayment acceleration plan. It does not involve negotiating with your creditors or any means of debt reduction which avoids the repayment of legitimate debt on a dollar-for-dollar basis.

Just like the bank model, modern debt management systems are integrated with your daily and monthly financial transactions. They are dynamic. Modern debt management systems have the ability to analyze and manage all of your debt, including your mortgage debt, side by side in a single environment and make strategic adjustments based on your daily or monthly cash flow.

A modern debt management system is programmed for liquidity. Liquidity is to debt what water is to fire. If you have an abundance of liquidity, you could be out of debt in very short order. On the other hand, if you have a shortage of liquidity, it could take decades to get out of debt.

A modern debt management system focuses on ways to harness current liquidity and seeks to fully develop your potential future liquidity. It utilizes that liquidity to systematically eliminate debt. It can develop multiple sources of liquidity and utilize that liquidity as leverage against debt.

Because of the importance of liquidity, modern and effective debt management and debt reduction systems are fully integrated with your current monthly income and expense cash flows. That is not to say that increasing your income and/or reducing your expenses is a requisite. A good debt management system takes advantage of existing cash flow, not necessarily changing it.

A modern debt management system is relatively painless to follow and does not require significant changes to your established spending patterns. It can be set to aggressively pay down debt, to maintain a certain level of debt but reduce the carrying cost, or fund a retirement or college savings plan.

Today's sophisticated, versatile, and effective debt management systems are not inexpensive. However, in terms of future interest savings, they can make up the cost of the system in the first few months of use and, over time, produce interest savings in excess of the total amount of current and future debt.

An inexpensive or do-it-yourself system is probably not a good alternative. While you might be able to redirect some liquidity and do some good, you would not be able to recreate the integrated mathematical algorithms which drive a more sophisticated system producing the best possible results.

Any current financial plan worth its' weight in paper should address both sides of the balance sheet and include a modern debt management system.




David Haslett is Senior National Director of the Freedom Equity Group. To discover how modern debt management technology can help you pay off your mortgage and other debt, go to: http://www.fastestmortgagepayoffplan.com




Monday, March 19, 2012

Insurance Claims Management With New Software Programs


The Role of Insurance Companies in Capital Markets

The insurance industry is a vital part of financial markets. Companies promote risk mitigation by offering individuals and organizations various types of insurance products. These products fall under two basic categories - life and non-life/general.

Proceeds from insurance products are converted to long-term investments on behalf and for the benefit of stakeholders, particularly insurance policyholders. These investments can be in the form of corporate stocks, government bonds, and other financial instruments that later earn a projected profit either upon a policyholder's death or at a specified period of time for the insured and his/her beneficiaries. Thus, aside from national and global economies, the insurance industry is essential to personal well-being as well.

Insurance Claims Management: Challenges and Good Practices of Client Service

Unlike life insurance, general assurance protects people and businesses from economic losses caused by natural disasters and human-made injuries, as well as related legal liabilities. In both cases, however, insurers are aware that it is imperative for them to satisfy policyholders with company services. With this context, some companies have developed software programs designed to assist client insurance providers in their claims management needs, such as producing timely and high-quality reports.

R. Qaiser's "Claims Management in General Insurance - Issues & Concerns" (n.d.) specifies underwriting and claims settlement as an insurance firm's key functions. The article notes that the latter "can be used as a marketing tool" and helps retain customers. It also states how necessary it is for insurance companies to "manage" the nitty-gritty aspects of claims processing that includes determining the "Average time being taken for the settlement of a claim and the claim settlement ratio and how it compares with other operators in the market." Moreover, "a corporate claims management philosophy" should be adopted to inspire insurance claims personnel in serving clients efficiently, including providing them with compensatory approaches, if applicable.

In 2004, the Organization for Economic Cooperation and Development (OECD) adopted a set of guidelines for good practice for insurance claim management. The OECD Insurance Committee defined these guidelines that serve as a benchmark for insurance companies in its member countries, including the United States (US). Such measure is aimed to improve the industry's public image, to sustain its marketability, and to reduce losses. Adequate information and assistance to policyholders, good claim filing methods, and expeditious claim settlement were among the cited standards.

Providing Efficient Insurance Claims Service with New Software Programs

To help maintain a client base and achieve efficient claims management set by OECD, many companies have started developing software programs for insurance companies and professionals. With committed personnel and reliable IT (information technology) facilities that ensure confidentiality of data and are compatible with mobile communication gadgets like iPhone, some reputed companies have developed software tools that can document and help analyze critical insurance narratives, financial, and statistical information. Let us take a look at some of them.

• Claims Management Software programs generally cater to insurance and risk claims departments, third party claims administrators, and risk managers, especially those involved in legal cases. They feature an advanced search mechanism that easily finds one or more needed files, information, and transaction records for general insurance claims. They can produce reports that can be exported to spreadsheets, Microsoft Office applications, and ASCII text files.

• Some software programs track financial information relevant to construction defect litigation procedures. Data including payments, insurer shares, and other expenditures, are stored in a virtual repository that can be accessed anytime and anywhere by vendors, lawyers and claims handlers.

• Some software programs equip insurance claims professionals with activity documentation, organized notes, and database references. They also provide billing techniques that instantly monitor time-bound tasks. These include work periods and communication with clients through phone calls, faxes, and mails, among others.




JDi Data Corporation has provided insurance claims software since 1992. JDi Data offers web based workers compensation software and also claims systems for insurance claims departments, third party administrators and risk managers to administer property, casualty and general liability claims. JDi Data has built a reputation in quality claims management software with special emphasis on specialty lines and complex litigation.




Thursday, December 8, 2011

Modern Debt Management Systems Can Produce Tremendous Savings


Consumer and personal debt is, perhaps, the number one problem facing most American families today. The reasons behind the tremendous surge in debt have been related to emerging socio-economic patterns suggesting that we've become a nation obsessed with lifestyles and consumerism.

America has always been a nation of consumers and the American people have always enjoyed one of the highest standards of living in the world. Something else has contributed to this national crisis.

What has changed in the last several decades is that we have developed very sophisticated technology to acquire debt. Debt acquisition is as close as your cell phone or personal computer and can be accomplished in a matter of seconds.

However, we have been slow in developing such sophisticated systems to manage that debt at the consumer level. We have been the victims of a technological gap between debt acquisition and debt reduction.

If you do not manage your debt, it will manage you. Or more precisely, your creditors will manage your debt for you and they will, of course, manage it in a way that is most favorable to them, not necessarily you.

At the consumer level, we tend to keep our debts separated, divided, and isolated in separate accounts, making it impractical, until recently, to strategically manage that debt.

Automated debt management systems have been in use by banks, insurance companies, and other institutions as needed to maintain cash reserve requirements but, until recently, have not been available at the consumer level due to the cost of developing and supporting these specialized cash flow management systems.

Many people in other parts of the world have had access to various debt reduction systems. In this country, however, it is a relatively new opportunity to systematically manage our personal and consumer debt. We now have access to affordable technology to manage our debt rather than allowing it to manage us.

First, let me explain what a modern debt management system is not.

It is not a set of instructions or a "How To..." book available from a variety of well intentioned sources which simply overstate the obvious; instructing us to "stop spending so much money", or "cut up our credit cards". It is not a "makeover" system which painfully rearranges our daily spending patterns.

It is not a static spreadsheet or plan for debt reduction which does not consider our day to day personal financial circumstances.

It does not involve the refinancing of existing debt or consolidating smaller short term debts into larger long term debts. It is not a self administered or pre-calculated repayment acceleration plan. It does not involve negotiating with your creditors or any means of debt reduction which avoids the repayment of legitimate debt on a dollar-for-dollar basis.

Just like the bank model, modern debt management systems are integrated with your daily and monthly financial transactions. They are dynamic. Modern debt management systems have the ability to analyze and manage all of your debt, including your mortgage debt, side by side in a single environment and make strategic adjustments based on your daily or monthly cash flow.

A modern debt management system is programmed for liquidity. Liquidity is to debt what water is to fire. If you have an abundance of liquidity, you could be out of debt in very short order. On the other hand, if you have a shortage of liquidity, it could take decades to get out of debt.

A modern debt management system focuses on ways to harness current liquidity and seeks to fully develop your potential future liquidity. It utilizes that liquidity to systematically eliminate debt. It can develop multiple sources of liquidity and utilize that liquidity as leverage against debt.

Because of the importance of liquidity, modern and effective debt management and debt reduction systems are fully integrated with your current monthly income and expense cash flows. That is not to say that increasing your income and/or reducing your expenses is a requisite. A good debt management system takes advantage of existing cash flow, not necessarily changing it.

A modern debt management system is relatively painless to follow and does not require significant changes to your established spending patterns. It can be set to aggressively pay down debt, to maintain a certain level of debt but reduce the carrying cost, or fund a retirement or college savings plan.

Today's sophisticated, versatile, and effective debt management systems are not inexpensive. However, in terms of future interest savings, they can make up the cost of the system in the first few months of use and, over time, produce interest savings in excess of the total amount of current and future debt.

An inexpensive or do-it-yourself system is probably not a good alternative. While you might be able to redirect some liquidity and do some good, you would not be able to recreate the integrated mathematical algorithms which drive a more sophisticated system producing the best possible results.

Any current financial plan worth its' weight in paper should address both sides of the balance sheet and include a modern debt management system.




David Haslett is Senior National Director of the Freedom Equity Group. To discover how modern debt management technology can help you pay off your mortgage and other debt, go to: http://www.fastestmortgagepayoffplan.com




Thursday, December 1, 2011

800 Number Management For Direct Response Marketing (AKA Toll Free Number Management)


800 Number Management has numerous related titles such as TFN Management, Dialed Name Identification Service Management (D.N.I.S.) and even Toll Free Number Management. For the sake of simplicity, and sanity, this article will use the term 800 Number Management, despite the numerous different references to the actual meaning behind the term.

When it comes to 800 Numbers the primary reason for having one is to sell a product or service or to make it convenient for an existing customer to receive service of a product or service. Hopefully, their purchase originated from you and your company. If you provide exceptional service to your existing customers, one method is to use an 800 Number to provide support services, with a bit of luck more additional products and/or services will be purchased.

The bottom line purpose for having 800 Numbers is to sell more products or services and to maximize the marketing results. However there is always an issue with having a bank of 800 Numbers or running multiple call centers and that problem is the management.

A company accumulates 800 Numbers because the C.M.O. wants to link the company's marketing campaigns for every product, for every creative, for every offer, etc., to a unique 800 Number. So every variation requires a different and unique 800 Number. Then the C.M.O. wants to see which combination of product, creative, offer, and campaign is driving the most sales. This is called multi-channel marketing. So tracking marketing results via these linkages from marketing across multiple call centers and 800 Numbers to a sale quickly becomes a mind-numbing challenge.

No matter how you look at the problem, it requires smart executives to think more, spend more time and invest more money to get it right! Not to mention productive collaboration between the C.I.O., C.F.O., and C.M.O. Unfortunately, even the largest multi-national and national direct response companies don't have this process down right.

A few marketing work-flow issues that must first be thought through are:

-- Have standards been established for data collection and is there a mechanism to find, isolate and correct data issues as they arise?

-- Are the people working in marketing, the call centers and the web group in possession of the commensurate technical knowledge? Do they have the insightful diligence to ask for the right information; in the right format; from their vendors?

-- Is there a central repository, unique to marketing, for all historical information and data; from all vendors; across all marketing initiatives?

-- Have we established a reporting infrastructure that can link calls (response), orders (sales) and other outcomes (disposition codes) to the specific marketing campaign that drove them?

I have talked to a lot of companies who use individual vanity 800 Numbers for each of their campaigns. The top two problems every company and ad agency have are:

1) They have a manual process of assigning, segregating and linking their 800 Number to an individual campaigns, offers and creative. Why, you maybe wondering? All but a handful of companies have a manual process for aggregating and linking. These manual processes open the door to huge probabilities for data errors.

2) A C.M.O. is forced or inadvertently funnels all their campaigns to one 800 Number, following a branding strategy, thus making it impossible to identify which campaign, offer or creative is the one real driving force behind the response and the sales revenue generation. This is called campaign overlapping and it is not pretty. One company is spending hundreds of thousands of dollars a month in attribution modeling to statisticians in India, when the problem can easily be solved for as little as $500/month.

Summary of the Solution:

The ultimate goal of an 800 Number Management system is to be able to effectively use the 800 Numbers and their associated Dialed Name Identification Service as a mechanism to quickly, easily and cogently link or tie marketing activity directly to sales. Creating such a relationship is critical to measuring return on marketing investment. Having a direct, systematic, and automated link between everything marketing produces and touches with all response channels, such as: retail outlets, telesales and the web-group eliminates every hard-metric a marketing department has. Having an automated marketing work-flow process in place also provides an opportunity to achieve maximum marketing efficiency! Notice I said "opportunity," the overwhelming majority of companies can't even fantasize about such a system, let alone imagine implementing one.

The first step, and it is a solid one, would be to implement an 800 Number Management system, most companies don't have a mechanism that seamlessly manages 800 Numbers, and associated Dialed Name Identification Service. The system must also be able to communicate and track every change, modification (and who initiated such edits,) and this information must be captured accurately and consistently. It must also be able to prompt action such as disseminating request, allocation and usage information. All of the aforementioned functionality is critically important to the success of any direct response marketing organization.

Additional bolt-on modules or having the flexibility to expand functionality in order to accommodate growth is also critical, such growth oriented functionality would be: forecasting, bucketing tracking tags by product, campaign, marketing group, agency, etc.; assignment of appropriate skill sets to specific call center personnel, and staff level balancing. The more sophisticated organizations will want to measure call center productivity over time periods (e.g. week over week) as well as marketing campaign performance at a granular level.

The Benefits of an 800 Number Management system for Telesales:

1) A centralized location to easily manage and track Dialed Name Identification Service across vendors, programs, skill sets and campaigns.

2) An apples to apples comparison of vendors that field calls for the same 800 Numbers and the associated marketing campaign.

3) Ability to bucket 800 Numbers to be used by the marketing organization to ensure seamless assignment and use of 800 Numbers across campaigns.

4) More accurate and timely forecasts based on marketing activities.

5) The ability to split out call volume by day when an unexpected Dialed Name Identification Service receives calls from multiple campaigns.

6) A simple to use interface that allows modifications to historic data, including splits of existing data across Dialed Name Identification Service, the ability to add new information, and deletion of data that may result from overflow that occurs, for example: when a trunk fails at a call center the overflow calls need to be reallocated to in order to provide accurate reporting.

The Benefits of an 800 Number Management system for Marketers:

1) 800 Number / Dialed Name Identification Service Management is one viable option for addressing direct response marketing professionals needs, however only a hand full of companies understand the real needs of marketing.

2) A centralized location to track and assign 800 Numbers to Dialed Name Identification Servic across programs and campaigns.

3) Elimination of unwanted re-use of 800 Numbers across multiple campaigns simultaneously.

4) Historical tracking of 800 Numbers as well as a mechanism to plan future use and assignment of 800 Numbers.

5) Link Campaign results to the campaigns that drove them (Direct Mail, Direct Response - Promo TV, Radio, Circulars.)

6) Systematically manage the assignment of 800 Numbers to campaigns based on business rules of your choosing.




Glenn Hughes is a sales, marketing and direct response expert for small, mid-sized and large multi-national businesses. He has worked with HP, IBM, Citrix, Nestle and numerous others. If you would like additional information, Glenn has arranged for a free (researchers-version) Trial Evaluation of a 800 number management system similar to that described. [http://www.track800numbers.com]

If you are a member of the press and would like an interesting article on "Multi-Channel Integration" or would like free additional information on the subject matter; you can e-mail Glenn Directly at upperquadrant@gmail.com or call him at 571-262-2589.