HP, Dell, and Lenovo make great computers.

But Apple is a great brand. Adidas and Converse are excellent shoes. But Nike just does it.

BMW and Toyota make amazing hybrid cards. But Tesla? Well, they’re Tesla.

Some brands seem to be born leaders. Forged in the fires of competitive marketplaces, they find a way to rise above the competition. They grow fast. They become more profitable, more quickly.

But possibly the most powerful asset they develop is the intangible. They have “it.” The right stuff. Marketing mojo. Southwest. Amazon. Fitbit. Chipotle. GoPro. Starbucks. However, the list is not endless. In fact, it’s very limited. These are these brands “Alpha Brands.” Like the Alpha Dog, they are leaders of the pack. The may be bigger, or not. They may be tougher, or not. But one thing is undeniable—they are recognized by all as leaders.

And lead, they do. They lead in style and substance. What they do is not always successful, but it is always substantial. And significant.

Walmart is a market leader because they sell more. But they don’t have “it.” Toyota is a powerful brand, but not an inspirational brand. Jet Blue is innovative, but not a major force in its industry.

What makes an alpha brand standout, not just as successful but as an icon? What makes us go from liking or wanting their products to intense desire, respect, and admiration? What makes people “disciples” or even evangelists of Alpha Brands?

This was the basis for a meta research project I embarked upon with an elite group of graduate and undergraduate students at Pepperdine University. Thus began our search to decipher the Alpha Brand code.

THE ALPHA MENTALITY

We’ve all heard of the Alpha Male. It comes from studies of wolves, originally by Rudolph Schenkel in the 1940s. It was then greatly updated and expanded with a book called The Wolf: Ecology and Behavior of an Endangered Species by David Mech.

The actual theories have migrated away from the aggressive dominance of these wolves into more of “leader couples” that procreate new packs of offspring. The concept of “alpha” has since taken on an identity of its own in modern business.

Today we think of Alpha Brands as companies, brands of products that are leaders. They are not just leaders but they are powerful leaders, leaders with distinct points of view, with the power to stand up to others, and with an unrelenting sense that leadership is in their brand DNA. Our studies have indicated these brands share key traits, traits that become almost synonymous with their markets, or certainly innovation in their markets. They command respect, market position, and excessive brand value far beyond competitors.

Armed with an understanding of these traits, we set about to find what actions caused them to emerge. Our goal was to final causal relationships—things that these brands did that caused them to be who they are.

The result is a list of nine different business practices and attitudes that are found in all of our Alpha Brand examples. Remember that some companies may in fact be larger. Others may command great marketshare, mindshare, or brand equity. But Alpha Brands seem to transcend simple financial success, and they win over the hearts and minds of customers.

Here’s a rundown of the traits our findings revealed about Alpha Brands.

Innovation

Clearly this is a dominant trait. Alpha Brands appear to gain large and rapid followings as a direct result of innovation. As an example, this is the hallmark of Apple. Their products are cool, hip, problem solving, and innovative. While some will argue who the inventors of products actually were, the collective consumer mindset sees Apple as the innovator of the GUI (graphic users interface) personal computer, the iPod (and MP3 players), the iPad (and media-based tablets), and the iPhone (smartphones in general).

Differentiation

It takes guts, but it pays to take the risk and be different. CNN changed television and news forever with the 24-hour news channel. Prior to CNN, news was only found a certain hours on television, or in a pinch, “news breaks” when things when there was breaking news to be found. But CNN opted to be different. Many thought they couldn’t fill the 24 hours and that viewers would tire.

Rapid Rise To A Leadership Position

Fitbit enjoys one of the rare-air branding perks of being a product that has become a common term. Just as Kleenex is often used as a term for facial tissue, Fitbit leaped on the scene shortly after the great recession, and emerged as a cool tech/fitness device. The company has had operation and financial issues, but less than a decade later, it is still synonymous with fitness tracking.

Response to Hidden Customer Wants/Needs

Listening to demands of a customer or client is key to building a better mousetrap. For decade upon decade, sports fans devoured the sports pages of newspapers. As television moved into media dominance, the Entertainment and Sports Programming Network emerged as a sports-lovers dream channel. Whereas newscasts only devoted only a small percentage to sports scores, and newspapers and magazines offered deeper though less timely sports coverage, ESPN was the fix sports addicts secretly hungered for. ESPN recognized a deep desire and fulfilled it with what is still to this day, some 30 years later, a market leading media property.

Fearless Perseverance

Sticking to what you passionate about is critical to becoming an Alpha Brand. I remember attending a tradeshow where the fledgling company GoPro was giving away free cameras. They looked like little toys, and people literally handed them back when they got them. Little did they (and me) know what was to come. These little cameras were revolutionary. They were easy to use, durable as heck, and launched a whole new category of photo product. GoPro has not sat back on its laurels. It has in fact continued to lead and dominate the action camera market, despite the entry of from large companies like Sony, Garmin and Polaroid.

Profound Belief In The Concept

Much has been written about Phil Knight and Bill Bowerman, creators of Nike. But unless you have read about their early history, you might not realize that they started business as Blue Ribbon Sports. They operated that way for years before parting ways with their major supplier. Renamed as Nike, their first ad campaign, “There is no finish line,” launched the brand into a new direction. Rather than rely on features and specifications of shoes, Nike embarked on created a brand attitude. This morphed into “Just Do It” a few years later, and the rest is truly brand history. Phil and Bill brought intimate market knowledge to their brand and let that emerge as a primary force for selling the product.

Clear Understanding of What Their Customers Value

As airlines fought to provide new services, including many tied to upper class service and new large-scale aircraft like the Boeing 747, Southwest Airlines bucked the trends. By researching, studying, and testing new services (or lack of) Southwest realized that their customers wanted cheap flights, lots of them, and would give up assigned seats, meals, and priority boarding to get what they wanted. It was only by knowing this that Southwest was able to innovate and dominate the short haul air business.

Accept Risk (Fight)

Steve Ells worked in food, and witnessed the rise in popularity of taquerías and mission-style (oversized) burritos, but a burrito-focused restaurant was an iffy proposition at best. Launched with a loan from his father, Ells figured he needed to sell about 100 burritos a day at his restaurant Chipotle. While not impossible, this was in the face of competition around literally every corner. By his second month, he was selling more than 1,000 burritos a day. Growth was rapid and soon he was seen as a challenge to major chains. But thanks to the innovative assembly line, a huge following among college students and millennials, not to mention an influx of investment from McDonald’s, Ells beat the odds, and the competition, to brand leadership.

Clear Understanding of Market Positions

A century ago, furniture was an investment. Craftsman built tables and chairs and sofas, many of which are still around today. By mid-last century, economy versions were appearing. Ikea, a Swedish startup in the 1940s, wove its way into a unique niche. They created furniture with modern Scandinavian design, easily transported and assembled, and affordable. With this unique positioning and product offering, Ikea was able to avoid head-to-head competition in many furniture niches, and found this unique brand was easily exported to other companies. They still operate on basically the same concept with more than 400 stores in more than 40 countries, selling nearly $40 billion a year. •

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Ian Corzine, of West Corzine, LLP is not your stereotypical insurance litigator, nor is he your stereotypical attorney.

For those following him on social media, you’d think he’s a friend of an adventurer like Richard Branson. He’s often found skiing or hiking or traveling or spending time with his kids. But don’t let that fool you. Ian Corzine is a partner at a firm that is fast becoming a powerhouse in the insurance and business litigation world.

He’s an active networker and leads a Pro­Visors group in Calabasas. When he’s not doing that, he finds time to be an author on legal issues. Despite his busy schedule, we recently caught up with Ian long enough to find out what makes him tick, and what has made their firm successful with its growing list of clients.

SCP: Tell us a little about your background, your upbringing, and how you became a lawyer.

Corzine: I grew up in a small town—now a bigger one—called Pleasanton, Calif. It was kind a like a “Stand by Me” type childhood. Mostly outdoors, playing basketball until sunset, building forts and having dirt clod wars, having mini-Olympics for local kids in our neighborhoods. We never found a dead body, though.

I always say I have “dual citizenship” for Northern and Southern California. My parents moved in my junior year of high school to Thousand Oaks to start their dream: a retail furniture store called Thomasville Home Furnishings. It was tough making the trans­ition, but the adversity gave me my love of performance—which I have translated to the ­courtroom (and sometimes, ProVisors meetings). My parents’ business grew and grew. Eventually, they had stores in Encino, Northridge, Agoura and Santa Barbara. I earned my living during high school and college summers working as a maintenance man—fixing stuff that broke, doing construction work, and even vacuuming in the early morning, for hours on end, in dark commercial spaces. I would listen endlessly to Zeppelin CD’s. That’s when I learned that manual labor was not for me.

I did well in high school and attended U.C. Davis undergrad with my NorCal friends. I majored in Rhetoric & Communications, which I loved. Public speaking was what I really came to enjoy.

I also liked politics. My sister jokes that I was the only big brother in the world with photos of Ronald Reagan and LL Cool J on my wall. So, during undergrad, I started interning at Governor Pete Wilson’s Office. I eventually made my way up the ranks, and the Governor created a special job classification for me. I got paid about $40,000 a year to be Executive Assistant to the Chief of Staff Bob White. I thought I was rich!

After a year or two toiling as staff, I mentioned to the Governor that I wanted to be where he was. He said, “You need to go to law school.” He recommended McGeorge School of Law in Sacramento, which is where I ended up going.

During law school, I really loved courtroom instruction. Eventually, I worked my way into a program of the U.S. Attorney for the Eastern District of California (Sacramento) in which non-attorneys were hired from law school to act as Special Assistant U.S. Attorneys. They prosecuted low-grade federal crimes, like DUIs on military bases, theft of government property worth less than $1,000, and various Vehicle Code violations. During my time doing criminal trials, I met federal judge U.S. Magistrate Peter A. Nowinski. Over time, he agreed to hire me as a Federal Judicial Law Clerk, which was quite an honor. I was the only one in the Eastern District. Then I made $46,000 a year!

After my year term as a Judicial Law Clerk, I went back to the U.S. Attorneys Office. I wanted to be a full-fledged Assistant U.S. Attorney—or maybe someday, The U.S. Attorney. The office said I needed civil experience. So I looked into moving to the best place for that—Los Angeles!

SCP: How did you get into the insurance area of practice as an attorney?

Corzine: In L.A., I went to work for a mid-sized law firm called, Monteleone & McCrory. M&M practiced primarily construction civil law. However, often there was an interplay with insurance law, because Commercial General Liability (“CGL”) policies of contractors often covered various construction defects, which were at the heart of various disputes. Nobody at the firm liked insurance law work, except one partner. I wanted to make my way up the ladder. By this time, I had a family and was losing interest in having a U.S. Attorney badge. So, I worked my butt off to learn that area of the law, and soon became the “go to” associate for insurance law. I enjoyed it because I found I was always representing a client (i.e., the contractor or business) that had a good case. The insurance company was always trying to get out of paying a claim.

Well, after a few years passed, it was getting to the point where I was being considered for partnership. I did not want to spend my life working in downtown L.A. The commute was killing me. I met my current partner, Gene West, at a mediation. We were representing opposing sides. He liked what he saw and offered me a position. I started in 2002 and became his partner in 2007. The rest is history.

SCP: What are some of the trends you are seeing this area of law?

Corzine: There’s a lot going on. Here’s some of what we are currently seeing:

• We are starting to see cyber liability claims—new law is being created in this area.
• Steady rise in sale and claims regarding Representations & Warranties Insurance (i.e., M&A Insurance).
• Crime/theft claims are being litigated because of broad insurance policy language, focusing on “Computer Fraud” coverage.
• Heightened disputes among carriers about how to allocate paid losses.
• Claims by owners of large custom homes increasing.
• Softer market: broadening of policy terms.
• More insurance cases going to trial/arbitration.
• Unpredictable court/jury decisions—decrease in public resources means that neither gets sufficient time to make very consequential decisions.
• Mediations more focused on coverage versus liability and damage issues.

SCP: West Corzine is growing and the firm just moved into new offices. Is this a result of the market growing, or that you’re getting known as one of the leading law firms practicing in insurance litigation?

Corzine: Our firm is growing for two reasons. First, it’s because of the market for our services (i.e., large loss claims handling and “bad faith” litigation for insurance companies who fail to pay claims when they should). Second, our notoriety in the industry is getting us the big cases with multi-millions of dollars in the balance.

SCP: Tell us a little about your client base. Are they local, distant, large businesses, small, or individuals?

Corzine: The majority of our client base is small to medium-sized businesses, across the country (we even have a case now venued in Toronto) with cases valued at between $300,000 and $20 million.

SCP: What did the great recession of 2008/2009 do to your practice areas? Is litigation up since then? What are some of the hottest or most active areas right now?

Corzine: It increased business. The insurance industry is one of the true recession-resistant businesses. When people have no money, they look to other sources. Often times those sources are large insurance funds. They need West Corzine to represent them and access those funds.
I think the hottest area for me is D&O (Directors and Officers). These insurance policies are omnipresent with most businesses. They have fairly broad coverage. Negligent misrepresentation—in my experience, most business deal includes at least one “negligent misrepresentation.”

SCP: You’re an active guy, an adventure guy, and family man. How do you balance work and life?

Corzine: I guess I strive for context. I do a meditative practice as well as frequent exercise. This helps remind me that no matter what the clients’ trauma—it is not mine—I am just an adviser. They need to see that I am calm, results driven, but have boundaries. I find that if you take control in the situation, you can manage expectations so that the client does not manage you!

SCP: What are some of your non-work activities. What are your favorites?

Corzine: Maybe you should ask, “What are the things you don’t like to do?” I hate to rake leaves! My primary passion is spending time with my daughters, Maddy (14) and Charley (4). We love the outdoors—snowboarding, skiing, mountain biking, hiking, fly-fishing, scuba diving, paddle boarding, and kayaking. We have a bunch of outdoor toys.

SCP: You and your firm have received a lot of attention, awards, and accolades. What do those mean to the firm, and what words of advice would you give to new attorneys just coming out of law school?

Corzine: We are certainly proud of the awards, but they do not drive us. Our goal is do right by our families, our faith, our community, and our business, and let the chips fall where they may.

For new attorneys—being a lawyer is awesome! In what other profession do you bill by the 1/10 of an hour for thinking? You will do well financially as an attorney, but the flip side is that you have to really work hard. If you want to get to a place where others work for you, then major in business and get an MBA. Find a business niche no one is in, make a killing, and sell it.

I was taught by other stellar business professionals that you need to work into your business charitable time and contributions. It takes your passion to the next level, seeing how you can help people. Tom Means, one of those who taught me that, and I were some of the founders of Hope’s Haven. One of the best experiences of my life was taking an idea for a charity, discussing it in our living rooms, and turning it into multi-hundred thousand dollar donations for families with life-threatening diseases and ailments. •

About Hope’s Haven

Hope’s Haven Children’s Charity is a 501(c)3 non-profit organization in Ventura County that is dedicated to enriching the quality of lives of children facing life threatening illnesses and serious injuries. They work directly with County hospitals, clinics and social workers to provide financial and emotional support for families during treatment. One of their long-term programs is to deliver iPads to all of the pediatric hospital beds within Ventura County. This allows children to communicate, interact, be encouraged and entertained while undergoing medical care. Hope’s Haven is able to lighten the load during the most challenging times when children and their families need it most. www.hopes-haven.org.

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Some like it. Some hate it. It can be lux and wonderful, or fast and furious. But we all do it—business travel!

Each year, more than 40 million visitors come to the greater Los Angeles area. San Diego gets more than 10 million overnighters. And while the vast majority of visitors are tourists, Southern California is one of those areas that enjoys a tremendous amount of business travel as well. San Diego is one a destination that gets “combo” travelers, business travelers who bring the family to enjoy the city (or conversely tourists who book a day or two of business while they are here).

Vacation travel is about getting to a city, seeing and experiencing things in that city, and enjoying your trip. Business travel is a bit different, though, then vacation travel. Business travel has more to do with location, convenience, and ease of work. We all love lux business travel, but it’s not always possible. Business travelers are often restricted by time, location, or budget.

In Southern California, location is arguably the first decision. If you fly into John Wayne in Orange County and have to make it in 90 minutes to the San Fernando Valley, you’ll be hating life as you sit on the infamous 405 freeway. And while LAX and Anaheim may not be your cup of tea for hotels, sometimes a flight or convention dictates there is no better area to stay.

When we reached out to professionals around Southern California to offer suggestions, we knew that each area was unique and serving a different travel purpose. In other words, what a traveler might like in a hotel in San Diego could be different from what he or she wants in a downtown hotel.

There are common traits to most business traveler’s desires in hotels. First, rooms must be clean, convenient, and comfortable. Whether it’s for the night or for a week, business people need to adjust to the locale quickly. There’s no better way to start than by opening a door to a hotel room and feeling good about it. WiFi is a must, and while $16.95 a day won’t kill us, it’s an irritation when there’s free WiFi all around. Food should be good or close, or both. In addition to convenient, you have to have a place you can meet at or grab a meal with a client or co-worker. If you’re wining and dining, assume you are leaving the hotel. But for meetings, you need something on site or very close. And there must be some place or things to do to unwind…pool, spa, bar, lounge, etc.

With that in mind, we present our list of business-friendly hotels for Southern California professionals!

Millennium Biltmore

AREA: Downtown Los Angeles

VIBE: The Biltmore is a Los Angeles landmark. It’s old L.A. at its finest. If you’re doing business downtown, this puts you right in the thick of it. Great restaurants, Metro stations, theaters, Convention Center, and Staples Center are just a short walk or Uber away.

STAY HERE FOR: Great place for meetings, big and small. Downtown renaissance is happening all around with great restaurants, bars and taverns nearby. There is great atmosphere here, something generally lacking in Los Angeles properties. This hotel is old-school class. Not for those wanting the “latest and greatest,” but rather a charming old hotel and Hollywood grandeur.

ALSO NEARBY: The JW Marriott at LA Live, the Ritz Carlton, and the Westin Bonaventure are three great options in downtown.

Web: millenniumhotels.com

Ojai Valley Inn

AREA: Okay, it’s not really “in town” but the Ojai Valley Inn is one of the most used “out of town” hotels for people in Los Angeles. It’s close enough to go for the day, yet perfect to go for the weekend as well.

VIBE: Calm, relaxed, country club atmosphere. Ojai Valley is green and gorgeous. Golf, tennis, spa, cycling, horseback riding, and even watersports are all close by. Call it work, but a retreat or seminar here is as much about relaxing as anything else.

STAY HERE FOR: Get away, without going to far. Great service, excellent food, and easy-going style

ALSO NEARBY: The Fess Parker Inn (Santa Barbara), Embassy Suites Mandalay Bay (Ventura)

Web: ojairesort.com

Westlake Village Inn

AREA: Westlake Village, North of San Fernando Valley.

VIBE: This property is a great option for doing business in the northern part of the city. It’s got nice rooms, great grounds, and very convenient right off the 101 freeway. It’s a family-owned property that offers a personal touch. Also, Stonehaus and Boogies are two destination eateries/hangouts right on the property.

STAY HERE FOR: It’s easy and comfortable here. We stayed there, put up clients there, had meetings there, and held press conferences there. Comfortable enough for several nights, meetings, or a North Los Angeles basecamp.

ALSO NEARBY: Four Seasons Westlake Village Spa

Web: westlakevillageinn.com

Luxe Sunset Boulevard

AREA: This hotel is right off the busy 405 at a geographically strategic spot between the coast, Hollywood, and the Valley.

VIBE: The Luxe has kind of a Hollywood nouveau riche feel. The good news is that it’s away from some of the hubbub, which is good for business travelers. Unfortunately, it’s also the biggest drawback, as there is nothing within walking distance.

STAY HERE FOR: Central West L.A. location, great service, and near lots of things 9beach, Getty Center, Westwood, Century City, and LAX (via 405).

ALSO NEARBY: Look to classic Beverly Hills properties like the Beverly Hills, the Beverly Hilton, the Four Seasons, etc., or the Santa Monica hotels like Lowes and Shutters.

Web: luxehotels.com

Hilton Universal

AREA: This hotel is located in the east part of the San Fernando Valley, on the hill across the street from Universal Studios.

VIBE: Some question this choice…it’s more touristy, because of the theme park…not new…and not overly lux. That said, it’s another strategic choice. If you are doing business in Pasadena, Burbank, Glendale, downtown, Hollywood, the Valley, or Santa Clarita, it’s a great choice.

STAY HERE FOR: Close to Toluca Lake and North Hollywood (NoHo), the two east valley hipster hangouts. Lots of great bars, restaurants, coffee shops, etc. Central to most of the studios like Universal, NBC, Disney, and Dreamworks, or if you need to be close to Bob Hope Airport in Burbank.

ALSO NEARBY: Sheraton Universal, Sportsmans Lodge, and all of the Hollywood hotels are options.

Web: hilton.com

Loews Santa Monica Beach

AREA: Santa Monica (beach)

VIBE: Loews is a quintessential new Santa Monica hotel. Thirty years ago, hotels in Santa Monica were dive motels or airline crew hangouts. Since then, Santa Monica has had a rebirth as one of the area’s hottest hotel areas. Great hotels abound, close to the beach, restaurants, and shopping.

STAY HERE FOR: Venice Beach and the iconic Santa Monica Pier are right there, literally. American Film Market headquarters at this hotel, and it’s great for meals, a stay, or drinks by the beach.

ALSO NEARBY: Tons of options, but consider Shutters, Oceana, and Huntley Santa Monica.

Web: loewshotels.com/santa-monica

The Langham Huntington

AREA: Pasadena, San Marino

VIBE: This is old L.A. wealth. Originally the Huntington, then the Ritz Carlton, it’s a flavor of elegance not found easily in Los Angeles. This is in the northeast end of town, near the Rose Bowl and Rose Parade. Wonderful grounds, restaurants, and service.

STAY HERE FOR: Lots of longstanding business are HQ’d nearby. Also close to downtown. This hotel has unmatched elegance, and is easy to get comfortable in. Lots of Pasadena restaurants and shopping nearby. And don’t miss their $100 martini!

ALSO NEARBY: Lots of chain hotels nearby, but nothing like The Langham.

Web: langhamhotels.com/en/the-langham/pasadena/

Embassy Suites by Hilton LAX North

AREA: LAX

VIBE: The truth is, no one likes to stay near the airport, but often we must. If you have a quick meeting, or and early/late flight, you have to stay close. A hotel 10 miles away could be and hour and a half in bad traffic. LAX is busy, and right on the border of questionable neighborhood. Best bet is drop down the hill to Play Vista and Marina del Rey for meals to the north, or Manhattan and Hermosa Beaches to the south.

STAY HERE FOR: Get in, have a meeting, and get out. Embassy Suites offers clean rooms, good value, free continental breakfasts, drinks in the evening, fitness center, and pool.

ALSO NEARBY: Tons of options near the airport. Choose a Hilton, Westin, or Marriott if you want the miles, or head further away to get out of the airport zone.

Web: laxembassy.com

Monarch Beach Resort

AREA: Orange Country beach area

VIBE: Okay, there are hotels near John Wayne Airport and the business district off the 405, but if you’re in the OC, head to the water. Monarch Beach Resort is stunning. On the hills overlooking the ocean, it feels more like a vacation resort or country club, yet it’s home to board meetings, conventions and retreats all the time. Food is excellent. Views are spectacular. Book near a weekend and enjoy a round or two of golf and a couple of days off

STAY HERE FOR: Views of the Pacific, great weather, luxury accommodations, and excellent service.

ALSO NEARBY: Resort at Pelican Hill, Ritz Carlton Laguna Niguel, or Balboa Ray Resort.

Web: monarchbeachresort.com

Marriott Anaheim

AREA: Disneyland and the Anaheim Convention Center

VIBE: So this area is all about Disneyland and conventions. It’s busy, active, and touristy. But a ton of business happens in the area. Fast food abounds, and while there are good meals to be had, you need to look past the masses seeking quick meals while visiting the Magic Kingdom.

STAY HERE FOR: A decent hotel, walking distance to the hotel and theme park. Honestly, flip a coin between this and Hyatt across the street. Both are right up the street from the Convention Center. The Marriott gets the nod for dealing with crowds better. Able to house meetings, promo suites, seminars, etc. Great hotels are hard to find nearby, so settle for really good instead. This is a “go to” for many local business people staying down there for a day or two.

ALSO NEARBY: If Marriott is full, go to the Hilton across the street. Or, pretty much every hotel and motel chain ever imagined.

Web: marriott.com/hotels/travel/laxah-anaheim-marriott

Marriott Marquis San Diego

AREA: This is another city area you wouldn’t be caught dead in 25 years ago, but is now the hub of downtown. Waterfront walk, restaurants, shopping, and entertainment all close by.

VIBE: Downtown San Diego is now a very cool and hip zone. Lots to do, lots of places to have drinks, hangout, and hop around to when between meetings or events. Cars are not necessary, with tons nearby within walking (or Uber) distance.

STAY HERE FOR: If you need to be downtown, near the city center, Coronado, and airport. Also near Balboa Park, and freeway close if you’re heading north or east.

ALSO NEARBY: Manchester Grand Hyatt, Hotel Del Coronado, or the Patani or Lodge if you want to stay a little north in Torrey Pines.

Web: marriott.com/hotels/travel/sandt-marriott-marquis-san-diego-marina •

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They are lazy. They are loners. They are narcissistic.

That’s the millennial stereotype. Always on their smartphones, probably Snapchat or Instagram, or the social media du jour.

But is it true? Is that who the largest workforce in our world’s history really is? Is this group, more than 80 million strong in the U.S., who will really inherit the country? Are they really as lack luster as business articles and 24-hour new channels would lead us to believe?

I don’t think so. Here are five mistakes I have found in the way people are looking at millennials and how they are getting this generation wrong, in terms of understanding their habits as employees and catering to them as customers and clients.

Life In The Trenches

Shortly before the 2008 Recession, I was asked to “cover” a class for a semester by a departing professor at Pepperdine University. Somehow I must have done all right since I have now taught more than 30 classes at the university.

In my very first class as a professor, an advertising media class, students urged me to check out a website called MySpace. This was circa 2005/2006. I jumped in, got the lay of the land, and even executed a promotion for a client based on what my students had taught me about the new “social media.” That was a spring semester. By fall, ­MySpace was over.

“Facebook, Professor Hemsworth. You gotta get on the Facebook,” they all said, just months after telling me MySpace was “the best.” With my .edu email, I created an account, but found it to be a big waste of time. But by 2007, something started to click, and social media took off. I jumped on, and though double the age of most millennials, I had a front row seat, both physically in my classes, and virtually, as an early adopter of social media.

I watched carefully as students fell away from books, and into iPads. They were less concerned about dating, but rather with Friday nights of “Netflix and chill.” Their phones became their most prized possessions. And in school, they believed that they were invincible, the most “wired” generation ever.

Myth #1:
Millennials Are Lazy

Here’s the one I think baby boomer managers (and sociologists) get totally wrong. I don’t believe they are lazy, I believe that millennials have generational ADHD. They are suffering from a tremendous saturation of information—immediately, constantly, and uncontrollably.

I teach the Senior Seminar each spring semester. It’s the capstone course in Integrated Marketing Communications. Students dutifully give me their attention up until about spring break, and the BAM! They check out. Gone. Sometimes physically. Always intellectually.

I’ve studied this, interviewed students, shared notes with other professors, and I have a few theories on this. It’s more than just senior-itis, which everyone of every generation gets in the last semester of undergrad. “I just want out.”

Well, millennials want out, but it’s more than that. They want also want “in.” They want out of school but they want in to work, to jobs, to society, and to wealth. I think they’re more like the young child attracted to the shiny object, and as seniors, there are lots of shiny objects out there.

I have learned the key to keeping them engaged in class is like a page out of John Wooden’s playbook…change of pace and change of direction. If I change pace or direction, they are curious and hang with me. If I don’t, they move on. I also found that the second half of the semester is less about traditional class time, and more about projects that can be done on their own time. During a recent semester, the time of the day most assignments were turned in online? Between 1:00 a.m. and 3:00 a.m.

Myth #2:
Millennials Don’t Know What Hard Work Is

Another common misconception is that millennials aren’t hard workers. They always look for the easy way out.

It might be true that they look for the easy way out, but that’s not such a bad thing. Their easy way out is probably a better way to do things.

Here’s a true example. In 2009, I had a college intern working on out team for the summer. He was the son of a client of ours. On his first day, we called him into a meeting. We were discussing social media strategies for a big sports equipment of ours.

About two minutes into the meeting, he took out his cell phone, and began typing away. I was pretty agitated, but thought I’d give him the benefit of the doubt, that maybe his dad was texting him or he got some kind of important message. He occasionally looked up, but then kept typing.

I was baffled by the behavior (something that was relatively new at the time, but par for the course nowadays). I gave it about one minute, then I figured it was time to let him have it. I was going to give him a dose of “what for” about business meeting proprieties.

A millisecond before I opened my mouth, he said, “You know their competitors have a lot more friends and likes, but a lot of them are fake.”

“Huh?”

“Yeah, I just checked their numbers, and spot checked a few of their followers, and they’re fake. They’re all from Eastern Europe, and they don’t even distribute there.”

What I thought was rudeness was, in fact, market research being done in real time. This intern did more quality market research with his phone in 60 seconds than I had done in a week.

That’s when I learned that for millennials, it’s all about channeling the effort. Don’t stop their efforts, just change their efforts and trajectory slightly to align with your company’s.

Myth #3:
Millennials Are More Socially Responsible

This one is not entirely a myth, but it’s not exactly as it seems.

There are countless articles and studies out saying how important social responsibility is to millennials. The disconnect I have witnessed is in what millennials say versus what they do.

For example, millennials say they want greater transparency and higher ethical standards. I hear it all the time in my class. Yet they are the generation that has embraced companies like Uber, Chipotle, and Volkswagen. Millennials say they want fairness, yet Uber is the virtually unregulated and unlicensed arm of transportation that is putting licensed taxis out of business (not that I mind it). I think they want fast, affordable fares. Chipotle, having built a customer base of millennials with organic and locally grown ingredients, suffered heavy losses after well publicized E. Coli, sexual harassment, and drug scandals. Millennials dropped Chipotle like a hot burrito. How did Chipotle lure them back? Free food. Not exactly appealing to their sense of fairness, but definitely to their wallet. And Volkswagen, the environmental liars of the new millennium, were recently named one of the top five auto brands of millennials by AutoGuide.com.

What do these have in common? I believe millennials think they are more socially responsible, and maybe they are, but I don’t believe they are appreciably different in action than previous generations when it comes to spending. They want deals, they want to stretch their dollars, and they want more value.

I think the key is not to pander to millennials and then not deliver, but rather have social responsibility as a key component of your brand, but don’t overlook value. Millennials still have a lot of student debt to pay off!

Myth #4:
Millennials Feel Overly Entitled

Like #3, this may not be completely wrong, but I don’t think it’s the whole story.

The baby boom came of age in the ’60s. It was the pot smoking generation. The hippies. The war protests. Dropping out. If you asked the average parent during that time, the country, if not human civilization, was going downhill fast.

And now look at the results: Wealth, prosperity, trips to the moon, advances in medicine, and the Internet. Not bad for a bunch of slacker hippies, eh?

That’s the context with which I think we need to view millennials and their sense of entitlement. Gen X gave up, but millennials want what’s coming to them. They want success, they want wealth, and they want the accolades.

Some complain that millennials want to “get rich quick.” Does that make them any different than previous generations?

Baby boomers climbed the corporate ladder, but we were just as likely to jump off and make our own ladder. We wanted to create cable TV shows, build better mouse traps, and explore/exploit new markets as much as any generation, and maybe more. We didn’t want to wait, but we didn’t know any better.

Gen X, on the other hand, tossed in the towel, as a generation. They became baby boomers or millennials. We didn’t hear of their yearning for opportunity, their creative business sense, or their entrepreneurial spirit.

Millennials have seen people create products, programs, technologies, and websites that have made millions and billions of dollars. Why shouldn’t they want some of it? And for a lot of them, their parents worked hard and earned a lot, and the truth be told, the millennials are standing in line to inherit the whole shooting match. Economists believe we are on the verge of the largest generational shift of wealth the world has seen.

Dealing with entitlements is difficult. I have seen it in the classroom, with students feel they “deserve grades” for effort, despite lack of results. They are very protective of their time (don’t ask them to stay after class, that’s their time).

One tactic I have tried and appears to work is to be painfully explicit in communicating expectations. We, as employers and creators of products must communicate what our brands and companies are “all about.” We must let people know what we stand for, and what we don’t. Additionally, we must solicit the expectations of our customers and employees. What do they want? What are they willing to work for…pay for…fight for? The more we can articulate these expectations, the better we will all be.

Myth #5:
Millennials Are Loners

Every generation has its loners. Some feel this generation has more than its share, but I don’t see that. They appear to have more loners, but that’s in large part because the baby boomer and Gen Xer’s sense of group is different.

We, the previous generations, hung out at the school yard, the soda shop, or the mall. Millennials hang out in the chat room online. I recently told a group of students that as a guy growing up, it took all courage we could must to ask a girl out on a first date. Time was when it had to be in person. Then, thanks the technology of the telephone, we could at least partially hide our embarrassment on the phone line.

Today’s millennial swaps phone numbers (for texting) and social media handles in a much freer way that we did phone numbers. They also have the ability to “stalk” online. We used to have to stand afar, out of view, wondering what someone was like. Today millennials can check out profiles, blogs, social media, and other online sources to know all about someone before ever texting, calling, or Heaven forbid, talking to someone.

A recent study indicated that heavy users of social media actually get small shots of dopamine when they receive likes, follows, shares, or comments on social media. It’s become their drug of choice. When we look at millennial sons and daughters, students, and employees, and we see their faces in the smartphones, we think they are by themselves. In fact, they are hyper connected to one, several, or even many friends all at the same time.

Psychologists and sociologists can argue if it’s healthy or not, but the fact is that this is not just a tech fad, this is a way of life…the way of a generation.

Possibly the best way I have seen to harness this and channel it for the better, is to find ways to being inclusive. Millennials want to be a part of something. It may be a group chat, or a social movement. They may want to be one of the many going to Coachella, or they may want to be one of the many downloading a new app, but they want to be included.

So, as employers, or brand purveyors, I suggest you find ways of inviting millennials in. Let them join the club. Maybe it’s the “Let’s go to Starbucks at 9:30” club, or the “We’re working for Habitat for Humanity this weekend” club. Maybe it’s asking them to lunch, so that you can ask them what they care about, what’s on their mind. And it always needs to be about including them in a mission. Millennials want to get somewhere, accomplish something, so you can do a lot for yourself and your company or brand if you let people know where you’re going.

Conclusion

Millennials do represent change, but it’s my experience that they are not really all that different from what we’ve all experienced with other generations in the past. Mary Tyler Moore threw her hat up in the air. Michelob told us we can have it all. Napoleon Hill told us to think and we would grow rich. Ford said they had a better idea.

Millennials want it all, too. And they are thinking about it, and they have a lot of great ideas. But like every generation, there are forging their metal during these formative years. The reality will continue to unravel as they move up the corporate ladder, the payscale, and the age ranks.

Success in working with or marketing to millennials is more about learning where their habits and our habits intersect, and knowing where our hopes, dreams, and values come together rather than clash. •

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Don’t call Drew Grey an accountant. He hates that.

It’s not that he isn’t a CPA (he is), or that he is ashamed of it (he’s not). Quite the contrary, Grey is proud of his financial service background. But being a certified public accountant only scratches the surface of what Grey does, and therein lies the rub.

His unique C-level business experience in conjunction with his BIG eight audit and tax training puts him in the unique position of really being a business advisor a step above the average CPA. Grey’s business experience as a CEO and CFO has helped companies grow from infancy through public offerings and ultimately generating large profits or his companies and clients.

He has also developed an extensive audit and tax practice, specializing in tax minimization, financial statement optimization and sophisticated estate tax and asset protection planning for growing businesses and their owners. This one-two punch, of highly level business experience, combined with very practical financial, tax and audit experience, makes Grey a highly sought after advisor, working primarily with companies either in or seeking rapid grow and significant profitability.

We recently caught up with him long enough to get his thoughts and feelings on the state of financial affairs in California’s business marketplace.

SCP: How are income tax rate increases affecting your clients?

Grey: Successful clients are faced with paying more taxes on federal, state and local levels. We have assisted our clients with effective strategies to reduce or eliminate California taxation. Clients who have significant taxable income can use techniques such as captive insurance companies, which offer significant tax deductions and other benefits. Many clients are able to reduce their taxes from research and development credits and perform cost segregation studies on their real estate. Other tax minimization techniques include deferrals of taxable income by using cash
basis distribution companies to avoid being taxed on accounts receivable, disbursements to fiscal-year sales and marketing companies to defer income recognition, utilization of pension and profit sharing plans, and other techniques. Every client has unique characteristics. We study each client to determine the optimal strategy that meets specific goals. Paying less in federal, state and local taxes provides more cash flow for business or investment.

SCP: What are some of the top concerns of middle market CFOs today?

Grey: CFOs are concerned with many issues; however one of their primary issues is having sufficient debt
or equity to fund their business. We actively assist
our clients in the preparation of detailed financial projections to plan for their needs. We have developed strategic relationships with conventional and non-conventional financing sources that can provide the debt needed to expand their businesses. We have strategies that separate the financial statements from the income tax returns thus enabling our clients to pay less tax while not impacting the financial statements. Commercial lenders make borrowing decisions based on the company’s compiled reviewed or audited financial statement. Therefore our clients are able to increase their cash flow through paying less in income taxes and are able to obtain the maximum amounts available from lending sources.

SCP: How do business owners and clients handle the challenge of increasing their credit facilities while minimizing the taxes?

Grey: Clients preparing financial statements for financial institutions must find the balance between reducing federal and state taxes, and reporting strong earnings to the financial institutions that have provided credit facilities. Our strategies emancipate the clients’ financial statements from their tax reporting. How do we do this? Financial institutions require an accrual-based financial statement, while tax law differs significantly from accrual accounting. This difference can yield lower taxable income without impacting the accrual-based EBITDA of the company. We evaluate each company to identify areas where
the financial statement and tax reporting can be separated by applying different year-ends and methods of accounting. At SRG, we use the GAAP and tax rules to our clients’ advantage, while maintaining integrity in all aspects of our reporting. This is another example of our creative, value-added approach to solving our clients’ problems.

SCP: What is the biggest difference between the accounting profession today as opposed to 20 years ago?

Grey: The most significant change is the amount of new financial statement and income tax changes in the rules that impact the clients and our firm. Our services have evolved to meet the changing landscape of business operations today. We are active in strategic financial consulting, and act at a level of a Chief Financial Officer and, in some cases, as the Chief Executive Officer. Many of our partners and professional staff have been controllers, CFOs, or CEOs. This level of seasoned experience gives our firm a unique ability to meet our clients’ needs. We are actively involved in the Merger and Acquisition activities from the buy and sell side, selecting the appropriate investment banker, and assisting with long-term planning for tax minimization and succession planning. We have developed effective strategies to eliminate or substantially reduce estate taxes and regular taxes from the sale. Asset protection is another benefit that flows from an effective structure. Our firm has become global to meet the needs our clients who cover the world.

SCP: Is your firm offering more or different services than you have offered in the past?

Grey: Our firm has developed value-oriented services that increase our clients’ net after-tax cash flow. We provide tax strategies that reduce taxable income and do not impact the financial statements that commercial banks rely upon to provide credit facilities. We separate tax planning from financial reporting in a responsibly creative manner. We are trusted advisors serving at top levels in management. Our expertise
as Controllers, CFOs and CEOs offers our clients knowledge and experience, which other CPA firms
do not possess. Our services have evolved to meet the changing landscape of business operations today. We are active in strategic financial consulting, and act at a level of a Chief Financial Officer and, in some cases, as the Chief Executive Officer. Many of our partners and professional staff have been controllers, CFOs, or CEOs. This level of seasoned experience gives our firm a unique ability to meet our clients’ needs.

SCP: What are some of the biggest mistakes companies make in managing cash, taxes, and financing?

Grey: Companies need to better plan for their financing needs, and more effectively project their covenant performance. This planning helps to confirm and maintain compliance and the conditions required to increase their credit facilities. Companies also need
to communicate more frequently with their lenders regarding both positive and negative situations. The biggest mistake companies make is that they try to reduce their tax obligation in the same entity that they are using to borrow from the bank. Tax minimization and financial statement optimization are mutually exclusive, and cannot be achieved in the same entity. The SRG Advantage is the emancipation of the financial statements from the tax returns, yielding our clients optimal results. Lower income taxes are paid and the financial statements are fairly stated; this enables the company to obtain the maximum amount of available financing.

SCP: What do CPA firms need to do to help growing companies in business today?

Grey: The CPA firm needs to identify growth opportunities and help clients implement strategies to optimize their market share. Short term, mid-term
and long-term planning contributes to achieving
these goals. Once a comprehensive business plan is developed, our firm will introduce lending institutions, private equity firms or private sources to achieve the goals. The accounting firm is an active partner with its clients in reaching their goals. Continual monitoring of results is a critical contribution of the accounting firm. The business plan and forecast should be monitored and revised regularly to properly plan for the company’s success.

SCP: What advice do you have for clients when it comes to future planning?

Grey: Clients need to adapt to continually changing circumstances. We meet regularly with our clients to review their goals and desires, and ensure that we are providing them with the maximum value possible. We recommend that our clients who own businesses plan their exit strategy well in advance, as they may need to transition family members or key employees into a succession plan. Exits can be costly; we have ways of reducing costs substantially. Our income tax and estate tax methods achieve the transfer while offering our clients maximum control and cash. Many clients want to maximize their entity value and then exit through a sale. We can assist with the sale. We recommend that exit-strategy planning be done many years before it is executed. Having a well-seasoned plan can ensure proper capital gains treatment, avoid inclusion in the client’s taxable estate, and often help avoid paying taxes to the state of California.

About Drew Grey

Grey began his career at Ernst and Whinney where he became an audit and tax manager. He became the Controller and Senior Vice President of a real estate company that grew from $2M to $250M per year before joining SRG. A partner at Los Angeles-based SRG since 1988, he has helped grow the firm as well as many of their clients’ businesses.  He has been the Chief Financial Officer of two publically traded companies and the Chief Executive Officer of a consumer product Company with products in 27,000 store doors in 22 countries. Most recently Drew was named one of the top “Trusted Advisors” by the San Fernando Valley Business Journal and received their award for “Client Service.” He can be reached at www.srgcpas.com. •

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As a CEO, a president, a managing partner, you are the figurehead for your company. You are the leader, the north star, and the light to which your employees look to show the way.

Today’s business leader is under great pressure to grow revenues and profits. The economy, the Internet, globalization, and deregulation have teamed up to push us to move faster and grow more quickly, something much easier said than done.

So how does today’s business leader embark on a path of growth? Where does here or she turn for the science, strategy and support to move the company forward? It the past, the first step was leaning on sales. Maybe you push them a little harder. Maybe you try to incentivize them a bit more. These strategies can and do typically work—temporarily. We’ve learned that you can only push sales departments so far before they break, and then you’re worse off than you started. A quick read of Daniel Pink’s Drive, a great book about what really motivates people, teaches us that the old “carrot and stick” approach is quite limited in its effectiveness. In fact, it can train employees to actually perform worse.

During the recent economic down turn CEOs increasingly turned to the CFO for assistance. When the top line isn’t growing, squeeze the books to improve the bottom line. Cut here, cut there. Heck, slash and burn if you have to. Many companies were able to increase profits, but those profits did come at a price to the firm. In the wake of cuts, company morale, benefits, inventories, R&D, and vendor relationships paid a dear price.

At a certain point, the business leader really must find a way to steer the ship toward more profitable waters, where revenues can grow and so can the company as a whole. That path is most direct when the CEO focuses his or her efforts on strategic marketing as a growth initiative. (Marketing, in this sense, is different than sales. Sales is the direct action of interacting with clients and customers to generate a sale. Marketing is the collective set of all activities, short term and long, that creative all of your business activities and driving revenue.)

The challenge for many CEOs, company presidents, and business leaders, is the same as that in our schools. Great teaches know how to teach, but when they are “promoted” to become school administrators, they often lack the skills necessary to run a school. They’re out of their element.

Today’s business leader has most likely come up through either the financial ranks or sales. While bringing lots of important and valuable knowledge and experience to the C-suite, those resumes also have their downfalls, and we’re witnessing that more and more in today’s business world.

As CEO, president, or managing partner, you rely on your management team to help you execute plans and assist with strategic decisions. To work with your financial team, you need to know how to read financial documents, balance sheets, cash flow projections. To work with sales, you need to know your accounts, your products, services, and pricing.

But to create, initiate, and drive a successful marketing strategy in today’s business world, you really have to understand three key marketing factors.

Marketing Strategy Is Not A Luxury—It’s A Necessity

There was a time when a great new product or service could “sell itself.” Word of mouth was all it took. In the past there were fewer product offerings, less marketplace clutter, and less opportunities to advertise.

Not so much anymore. There are new products, new services, new companies popping up all the time. Some are near, and some are far, but thanks to the Internet, they all seem just a click away.

This has force everyone to have to fight harder to get customers and clients. Some professions, such as medicine, law, and accounting, have learned this in painful measure. For a long time, marketing and advertising in these professionals was frowned upon, unethical, and even illegal. Now we see these fields “catching up.” Who hasn’t seen the banner across a bus saying, “Accident?” or the magazine ad offering to reduce wrinkles, increase bust size, or restore sexual vitality.

As people rush to advertise products and services, unfortunately it creates huge amounts of wasted expenditure. John Wannamaker’s famous quote, “half of all my advertising is wasted…I just don’t know which half,” comes to mind. Without research, knowledge, or a good strategy, I’d bet that more than half is waste.

Rather than “just trying something,” today’s business needs to have a specific marketing strategy. Where as “advertising” refers to just placing an ad, marketing is sum of all your marketing activities, including advertising, PR, promotions, networking, pricing, R&D, and distribution.

A good marketing strategy will look at both the short term and longer needs and goals of the company. All to often CEOs are reactive with short term tactics, which sometimes harm long term strategies. Done correctly, research into customer needs and wants should dictate a clear marketing strategy that is then implemented through specific tactics. Jumping prematurely into tactics results in the classic “Ready, Fire, Aim” mentality.

Another common error that often accompanies a lack of strategy is the lack of action. Many companies that are playing marketing “catch up” become confused, indecisive, and slow to implement. It’s the “paralysis by analysis” syndrome.

In my experience as a marketing and brand consultant, almost any strategy is better than no strategy. Companies with wrong strategies are often disciplined enough to change and improve strategies, while companies lacking a clear strategy tend to wander aimlessly in the marketplace.

Jack Welch, when asked about strategy and vision, admitted it was important, and that GE had worked hard on it. He then went on to say that once you have the strategy you’ve got to, “implement like hell.”

A good marketing strategy should identify who your target audience(s) is/are, and how your product or service will address a want or a need of that target audience. It should also identify key strengths and weaknesses, both yours and those of your competitors. And finally, it should reflect what makes you and your brand different, interesting, and valuable to your target audience. Once you’ve determined these important bits of data, your marketing strategy needs to find the best way(s) of communicating that with your customers.

To Focus On Marketing, Focus On Your Customer

James Carvel will forever be remembered as the guy who orchestrated Bill Clinton’s presidential election strategy with the simple line, “It’s about the economy, stupid.” In marketing a product or service, we just need to change it to, “It’s about the customer, stupid.”

Companies tend to focus too much on themselves. They focus on what they have done, what they want, and how they want to do things. Well, again, the Internet has made that attitude a death wish for many companies.

Today’s customer controls the information flow. The public, via the Internet, chooses where they go, what they read, and what information they want to find. They have also found a voice that formerly didn’t exist. Now they can write, post, blog, comment, and review just about any kind of product or service. And don’t think those don’t matter. Reading those customer comments have become an very important part of the customer “shopping” experience.

Today’s successful companies have adopted a customer-centric point of view. Rather than creating a product or service and trying to sell it to the public, they do research into what the public wants and needs, then delivers. Today’s marketing posture is about solving problems, filling needs, and delivering upon wants.

While we’re on the subject of wants and needs, lets be clear. Most companies try to sell things people need. Most people buy things that they want. Only sometimes do the two intersect. Selling needs is about logic, whereas wants are about emotion. We may need socks, but if we’re not emotionally attached to them, we just buy the first pair that fills the need. But shoes? Marketing shoes is all about fashion, and fashion is about emotion. We want them to look good, feel good, and most importantly, we want to feel good in them!

To create a customer-centric marketing strategy, you must learn everything you can about your customers (and potential customers). What do they like? What do they need? How old are they? How and where do they shop? At then end of purchasing your product or service, what will make the transaction successful?

A recent survey of investment professionals revealed something most brokers didn’t know. When the economy tanked, many investors began switching brokers and wealth managers—not because of losses, but because their trusted advisors didn’t return phone calls on a timely basis! The study also found that most investors would gladly give up a little in earnings in exchange for a bit more security. Those are critical bits of information you would want before creating a marketing plan for wealth managers.

One more aspect to becoming customer-centric is to provide customers with ways of communicating with you. Having an 800 number and a street address are just not enough. Communications through websites, Facebook, LinkedIn, and Twitter are becoming the preferred places for customers to begin conversations Today’s marketing is less about telling, and more about two-way conversation. Make sure your strategy involves listening to what your customers have to say.

Perception Is Reality

It’s a sad truth for many, but a truth nonetheless: perception is reality, even if it’s not the truth. Are you perceived as being a top lawyer or accountant, of making a better product, or delivering a better service experience? If you are, that’s great. If not, can you achieve that position before your competition does?

I recently saw a demonstration of this. A speaker told a group that Apple was coming out with a new coffee cup. It was going to be made by Apple, and would cost around $20. When asked who would buy it, without any additional information, most people in the audience raised their hands to say they’d purchase it. When asked why, one response summed it up: “Because it’s Apple, I know it would be the coolest coffee cup made.” That coffee cup doesn’t exist, and no one had ever seen one, but they all had the perception that it would be worth $20.

I had the recent experience of consulting with a law firm about websites. I identified competitive firms, as listed by the local business journal. I then showed the managing partner a few of the best competitive websites. He saw one, and jumped out of his skin shouting, “You can’t compare us to them. I know that firm and they’re half our size.” I then showed him how his large firm’s “little” website was dwarfed by the size, content, and design of the smaller firm’s website. The perception was that the smaller firm was much bigger, much better, and much more progressive than the older, larger firm. It was perception, not reality, but to those looking at the website, that perception became their reality.

So how do you control perception? For one thing, you need to have a significant “share of voice”. People who don’t do marketing aren’t heard in the marketplace. In today’s business world, customers what to see you, hear you, find you, and reach out and touch you. So make it easy by letting your voice be heard. Websites, blogs, press releases, articles, and social media are great at keeping your voice in the marketplace.

One way of boosting perception is to find ways of gaining “3rd party” endorsement. You can say how good your product or service is, but it will be much more believable if someone else says it for you. Getting testimonials, write-ups, and endorsements from experts are incredibly powerful ways of gaining perceived stature.

Another way of controlling perception is “shape” conversations. People don’t want to be dominated in conversations, but they do like learning and being guided to new understanding. A family law mediator, for example, may write an article or blog on the high cost of litigation, and discuss advantages about mediation. Accountants can talk about changes in tax laws. Product manufacturers can have engineers or researchers create white papers or reports on product issues customers are concerned with.

Shaping perception is easier when you are able to position yourself of your company as experts. If you become a source or information or insight, customers and potential customers are much more likely to listen to you. Writing articles, teaching, and public speaking are good ways you push information out, and they typically help you gain perceived because the magazine, school, or organization sponsoring it is, effectively, endorsing you.

As a business leader, you don’t have to be an expert at marketing, provided you have a good marketing director or a good marketing consultant, and provided you have a good understanding of what these three key forces that are affecting today’s marketing efforts. By using them, you can put the power of marketing on your side.  •

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Here’s a link to a short but interesting video on Tony Fadell, the guy credited with bringing us the iPod. In it he talks about his pre-iPod days, some missteps, and some breakthroughs. It’s certainly worth the 3-some minutes it takes to watch.

http://www.inc.com/chris-beier-and-daniel-wolfman/apple-ipod-inventor-tony-fadell-innovation.html

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But how do you know what to do? It’s easy—just read How To Save On Your Next Office Lease by Mazirow Commercial founder and president Sheryl Mazirow. It’s a great feature article loaded with great information on what to look for, how to save money, and ways to negotiate better terms.

One of the key takeaways offered by Sheryl is that one needs to recognize that landlords lease space all the time. Tenants only lease space every few years at best. By engaging a good leasing professional, you won’t have to go to the negotiating table alone. And what’s more, their services to you are typically free (they’re paid by the landlord out of the lease).

So if you don’t want to get taken for a ride on your next office lease, don’t go to the table alone. Read How To Save On Your Next Office Lease. Special thanks to Sheryl for contributing this great piece. (For more information on Mazirow Commercial, click here to visit www.tenantadvisory.com.)

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What’s your company worth? What can you do to boost its value? We talked to valuation expert and investment banker Davis Blaine of the Mentor Group and Mentor Securities to give us the inside scoop.

Cloud computing…now what’s that all about? What’s it mean, and what do I need to know about it? CPA and IT expert Bob Green of SingerLewak give us the lowdown.

What do you do when a crisis hits your business? What steps can you take to minimize the impact, and what can you do to fight off the bad press after it happens? PR pro Cindy Rakowitz, author of the new book Emergency Public Relations: Crisis Management in a 3.0 World offers great insight in her feature article.

Does outsourcing work? What are good applications of outsourcing? Is it right for your business? Sandy Allan, president of Technology & Operational Solutions, Inc., guides us through the outsourcing thought process.

Young professionals…what are they good for? Traditionally they have been the backbone of law firms and accounting firms, cranking out the billable hours. Today, professional service firms are asking more of their associates and managers—they need to bring in business, too. Brian Hemsworth, president of Newman Grace, gives us some tips and tricks for turning  younger professionals into rainmakers.

We’ve got all that and more in our newest issue, so sit back and click away as you enjoy Southern California Professional Magazine issue #2!

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Young attorneys and accountants have traditionally been a firm’s worker bees. Senior partners throw tons of work at them, and they’re expected to crank out the billable hours. And if they do that long enough, one day they may become partners—some of whom bring in new business, while others just continue on the “worker bee” route.

“It’s all changing,” a managing partner at a Los Angeles firm recently declared over lunch. “Finding new clients isn’t something just for senior partners anymore. The economy has taught us that we have to market the firm, and everyone has to do their part.”

When asked about new hires and associates, he responded, “If they ever want to make partner at our firm, they need to learn how to bring in clients. The day will soon be here when you won’t make partner at a firm without a developed book of business.”

Two Reasons It’s More Important

The economy downslide of 2008 triggered a series of actions that caught law firms and accounting firms off guard. Business slowed, clients were slow to send in their payments, and the phone wasn’t ringing like it had before.

Law firms felt the effects almost instantly, and 2009 was a down year for many firms. Divorce became “too expensive” for some law firm clients. Litigation gave way to settlements and mediation, which reduced billable hours and workloads. Bankruptcy attorneys did well, but real estate transactions dried up, which affected a lot of Southern Cali­fornia law firms.

Accounting firms felt the effects a little later. Many accountants had a profitable year in 2009, when clients locked-in losses and needed to account for them. The following year, 2010, was the year that many accounting firms felt the slowdown.

The second trigger is marketing itself. Until Bates v. Arizona State Bar (1977), it was considered unethical to advertise legal services. And while attorney advertising seems to be everywhere, there are many firms that have personnel who still reject the notion, feeling it belittles the firm.

In the early 2000s, attorney marketing began to increase. This, in large part, has occurred in the more “retail” oriented areas of practice, such as personal injury, class action litigation and family law. But in the past five years, more traditional areas of law have adopted the practice. Law firms focused on business and transactions have joined the ranks, and today marketing and business development is on the rise in most areas of practice.

It’s interesting to note that this rise has also paralleled the shift of marketing dollars from traditional advertising to Internet and alternative forms of marketing. Firms that traditional advertised in “yellow pages” phone directory ads have diverted their budgets to more website, Internet and search engine advertising.

The pressure of a slowing economy and the rise of marketing is forcing senior partners to work harder to bring in business, and that’s given rise to asking even more of younger attorneys and accountants.

What’s In It For Young Professionals?

Other than maintaining a Facebook presence, a lot of young professionals don’t like the notion of marketing. At a recent training session, a young accountant asked, “What’s in it for me? Why should I bring in business if I’m not a partner?” There is not one reason—there are three.

First, learning to bring in business increases your value to the firm. Cranking out the client work is important, but learning client service, client development and new business techniques makes you a more rounded professional. Learning what attracts clients to a firm will help you become better at taking care of the clients you already have. This is particularly important when you consider that it takes far less time and money to keep an existing client happy than it does to go out and find a new one.

Second, business development increases our chances of upward mobility in your firm. Once senior members of your firm see you not only handling your current clients, but bringing in new ones, you will be marked as a long term asset to the firm. They will want to keep you. And to keep you, sooner or later they will invite you to the partners’ table.

The third reason young professionals should learn business development is to prepare for a career future that may include breaking out on their own. A legal recruiter recently mentioned that she is seeing an increase of younger attorneys leaving firms, sometimes solo and sometimes with a few others, and opening their own shops. Generation Y (also known as millennials) are on a fast track to life. They live faster and communicate faster. They want to achieve, but they are also concerned with the environment, family and quality of life. This leads to some Gen Y professionals to feel less inclined to stay in the trenches at big firms for long periods of time.

Three Key Strategies For Young Professionals

If you’re a senior partner, you don’t need to worry about teaching young associates how to network online. Gen Y created social media, and they own it. You may help them focus their efforts, but they’ve got the technology down.

Possibly the most important strategy you can teach a young professional is offline social networking. While conducting a recent training session for young professionals at a firm, the managing partner made it extremely clear to, “Get your butts out of the office and go see our clients—in person!”

Millennials have grown up with emails, instant messages and texting. While this works well with their network of friends, it does not work so well with clients. A client recently complained that one of his best young accountants had a bad habit of expecting clients to email him back quickly, and if they didn’t, the accountant just emailed again. It never dawned on him to pick up the phone and make a call, or better yet, go see the client face to face.

Part of offline social networking means getting face time with clients, pressing the flesh, and learning to have a chat over a cup of coffee. While these things are less comfortable for young professionals, this is the way most clients want to network. Study after study shows that people who hire attorneys and accountants not only want a referral, they also want to meet and get to know their trusted advisor before beginning the engagement.

Senior professionals tend to market themselves. Even if they work at a large, well-known firm, they market themselves because they know one true thing: if the client comes in, they will enjoy the largest share of the profits.

Younger professionals have less experience, so it’s harder for them to be perceived as experts and therefore justifying higher rates. This makes business development harder for many young professionals.

One strategy for clients with younger associates is to get them to market themselves as part of a larger team. Associates can ride the coattails of senior partners, leveraging the team’s experience and expertise. By doing this, potential clients can feel much safer engaging a firm because they know there is a depth of experience. They also feel more confident that there are several people working on their account. This also helps justify different billable rates, as most clients will understand that the rate of an associate three years out of school is different than a senior partner with 25 years in the field.

Young professionals can succeed using this technique by learning as much as they can about the senior partners on their team. They should know what schools they went to, what articles they have written, the latest case results they have achieved.

A third strategy for associates is to begin developing an expertise very early in their careers. This works very well when a young associate can focus on one specific area of a practice, and learn anything and everything about it. For example, an accountant who, in addition to his general tax practice, studies the tax strategies of Internet start-ups. In this case, since many Internet startups are engineered by young entrepreneurs, they are generally much more open to having a young accountant who can speak their own language.

Final Thoughts

The days of associates working in the background and not generating business are a thing of the past. Young professionals will increasingly need to generate income for the firm beyond their billable hours.

Senior management needs to know that young professionals will be most effective when they combine their own knowledge and skills with tried and true practices of the past. By learning what motivates them, giving them the tools to succeed, and compensating them for success, you can turn your younger staff into a business generating team. •

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