i just read a great article from the december issue of inc magazine titled “saving broadway books: a story about blogs, books, burritos, and a son who wouldn’t let his mother’s business fail” (it’s not online currently). it’s a great story which is even more important in these economic times.

like most locally owned bookstores, broadway books, located in portland, oregon, has seen it’s fair share of trying times with the proliferation of larger chains and online sellers such as amazon.com. in december of 2008, owner roberta dyer was worried that sales were going to be so low that the future of her store was uncertain. a phone conversation with her son, aaron, sparked an unexpected change. aaron sensed the despair in his mother’s voice and decided to do something about it. he typed a plea for help on his blog, everydaydude and linked it on twitter. he wrote that when he returned home the next january he would buy a burrito for everyone that spent $50 or more at broadway books. incidentally, the post went viral after being retweeted and emailed among friends. a simple request from aaron made for an exceptional month of sales. most importantly, it provided a reminder to everyone in the area how important local businesses are to the economy.

i love everything about this story. i love hearing about entrepreneurs and how they fight through the tough times. i love how the change in behavior was inspired by a blog post and twitter. i love how the local community continues to support the cause of broadway books even after the media frenzy died down.

i love all of this because i’m struggling through many of the same issues. the local stores we sell to are feeling pressure by larger bookstores and chains. the local bookstores in columbus are as much of a tradition as dotting the “i”. when was the last time you went to an OSU game and didn’t stop in either conrad’s or college traditions? how important are these stores to you? what would happen if they had to close? would you eventually accept buying from barnes & noble or wal-mart or footballfanatics.com? did you notice when long’s bookstore was bouth out? you may not realize it, but these local stores (buckeye room, buckeye corner and house of lala included) are feeling the crunch. every time i call in about an invoice, if they don’t tell me straight out, i can hear it in their voice, “times are not easy. sales aren’t what they should be”.

i hate hearing the pain in their voices. i know they are being honest with me. just this year, one of my favorite buckeye stores, gridirons sports in findlay, ohio, was forced to close due to this pressure. gridirons was owned by some of the nicest, hardest working people i’ve ever met. and i’m in the same situation as them. we’re just the little guy. larger websites with larger advertising budgets drown out our website so most people searching don’t find us in a google search. we have to compete for stores’ attention with unfamiliar, more expensive products. we have to hope that the customer will realize the value of our shirt on the shelves and not judge it by it’s price tag.

at jupmode.com we’re selling premium t-shirts. i know we’re not making shirts for every fan out there. most ohio state, toledo, or bowling green fans aren’t too thrilled about spending over $20 on a t-shirt when they can just as easily find a suitable buckeyes, rockets, or falcons shirt for $10 or $15. it’s difficult to explain the difference is worth the shirt. we think we have the most original and comfortable collegiate t-shirts available. our shirts provide more than just a university mascot or faded logo. look at our new helmet stripe design or our shoulder wrap tee or our buckeye candy v-neck or our undefeated national champs t-shirt. for cripes sakes we invented the jim tressel t-shirt! i know it was our idea, but i don’t know of a more novel t-shirt. it’s a shirt pieced together with a red body and white sleeves and has a tie silkscreened on. it’s what the tuxedo t-shirt would look like if the creator had any idea on how to get it done.

those of you familiar homage clothing can attest to the benefits of spending a little more for something that you truly love. everyone that buys a shirt from homage has the same response: it’s the softest, coolest shirt they own. homage is a columbus, ohio based company using american made t-shirts and local printers. i wear my homage shirts more than any other shirts in my wardrobe. they’re comfortable, fit well, and they’re cool. and, homage supports a lot of great causes – they made the club trillion shirts that benefit a kid again, a columbus charity.

the point is, it’s important for us to stimulate the local economy. chances are buying from larger chains will not do that. besides, when was the last time you bought something from one of these stores and really enjoyed it? i mean, loved it. like it was instantly your favorite shirt or jacket or hat. i’m willing to bet never.

naturally, i believe companies like ours, and many others out there, are what will provide our economy with a much needed boost. we are creating and maintaining jobs within the US every step along the way. we are putting money back in to support local jobs: from buying the shirts domestically to having them printed in ohio to having them sold in your local stores.

i guarantee you there is not another company out there that is happier to have your business, appreciation and support than JUPMODE. we will always do our best to make you look good.

Too often, we sleepwalk through our careers.  We do our jobs to the best of our abilities, but we never think about what will happen if our company fails or if they lay us off.  We also limit our ability to move up professionally or earn more money because we are unaware of open positions and new opportunities.

What can we do to have more control over our careers?  Take the time to learn more about either our industry or our profession.  If you work in a field like marketing, media, or consulting, you need to focus on companies in a specific industry.  On the other hand, if your profession (accounting, human resources, sales) will let you work across industries, you will benefit from focusing on your area of expertise.  Some job seekers will benefit from looking at both industry and profession.  Find the formula that works best for you.

How can you learn more?

1.  Read news, online publications and blogs related to your industry.

2.  Have the news brought to you: subscribe to RSS feeds and online news letters that fit your career interests.

3.  Use Google Alerts to receive email updates about industry news.

4.  Look for new businesses that might need your skills.  A good start pointing for this would be to read local business publications.  You should also check out Inc magazine’s lists.

5.  Track trends in technology and new products that might affect how you work. 

6.  Know who industry experts are and what they are saying.  Look for conferences or professional events.  Speakers at these events are usually the people you should be listening to.

7.  Attend industry events and network.  Find out how other professionals in your field learn about changes and opportunities. 

We all work very hard, and don’t have enough time with our family and friends.  Even so, we need to carve out some time to study the factors that affect our professional success and our ability to manage our careers. 

Knowledge is power – give yourself the power to manage your career.

A couple weeks ago, I posted a response to a New York Times review of a new biography of Ayn Rand: Ayn Rand and the World She Made, by Anne C. Heller.  I was not impressed.  But after reading a more recent interview with the author, I’m glad to say that my disdain extends only to the reviewer (and Ms. Heller might just get another book sale).

Inc. magazine describes the biography as “surprisingly lurid,” but in the interview itself Heller comes across as level-headed and balanced at the NY Times book reviewer was sensationalistic.  This time, I’m impressed.

Here’s my favorite passage:

Among people who write and publish serious biographies, Rand had not even been thought of. She is considered a writer of unpleasant, anticommunist potboilers. I belong to a biographers’ group, and some of them were under the impression that she represented a “greed is good” philosophy and a Darwinian social code. I told them that I found her thinking more complex and challenging than they were giving her credit for. In any case, I wasn’t promoting her or her ideas. I was writing objectively about her life and work.

Even in dealing with some of the more scandalous aspects of Ayn Rand’s life, the tone of the interview remains just as Heller wants to be: objective.

And that’s something Rand would appreciate.

I found an article about a Minnesota-based maker of high-end athletic mouth guards in the Sunday edition of the Minneapolis StarTribune (ironically the article is only available in the print edition of the paper…what are they thinking? I’ll provide a link if/when they post it). While there is no strong design connection here, the story struck me as an excellent example of how a start-up company can use angel investors for that important initial funding surge. Bite Tech Inc. has developed “performance mouthware” technology that they claim reduces stress on the jaw and, in turn, improves the strength and endurance of athletes competing in sports ranging from football to golf. As the word has spread about this breakthrough product, pro athletes have been lining up to invest in the company. Adrian Peterson of the Minnesota Vikings, and NHLers Brett Hull and Marion Gaborik are among an impressive list of pros who have invested anywhere from $25,000 to $1 million each.

Angel investing is a common strategy for “phase one” or “first round” funding of the start-up process. Often, an angel investor is an affluent individual who provides capital—usually in exchange for convertible debt or ownership equity. According to Wikipedia, a small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital. Angels typically invest their own funds, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund. This strategy is similar to a “friends and family” approach which is a common way to gather seed money.

In a time when banks are being stingier than ever about small business loans, an angel strategy may make sense for designer/entrepreneurs who have a business concept that requires more money than they have easy access to. Our industry is filled with successful firm owners—many of whom are looking for new ways to build their business and generate revenue—hence, the design profession may be filled with potential angels.

So, where do you find these angels? Click here for an article from Inc.com that provides more information on this category and links to more resources.

An Innovate ND winner has been selected as one of 13 finalists from 900 applicants nationwide in the “Newpreneur of the Year” contest sponsored by alibaba.com and Inc.com, publisher of Inc. Magazine.

Competing for a chance to share in $100,000 in business grants is Paul Wolf of Mandan, whose Light Check device simplifies the process of testing trailer lights.

The 13 finalists, including Wolf, are profiled on alibaba.com and inc.com. Five finalists will be selected by online voting, which will run from Oct. 28 through Nov. 6 at www.inc.com/newpreneur/vote.html.

One of my favorite online eye candy stores, Modcloth, has recently received some much deserved acclaim. The husband and wife team behind the online vintage and retro inspired shopping phenomenon were awarded the number 2 and 3 slots of Inc.’s 30 Under 30 – America’s Coolest Young Entrepreneurs.   Susan Gregg Koger (24) and Eric Koger (25) launched their company in 2003, running it out of Susan’s dorm room in Pittsburgh, while they both attended Carnegie Mellon. Susan states she was just “a girl in the thrift store” – picking up items she wouldn’t ever wear, but just couldn’t resist – creating Modcloth was initially a way for these great vintage finds to get “a good home.”  Read more about their awesome story here and happy shopping.

A big CONGRATS!!!! to Susan and Eric for their success – I know I love contributing to it, so keep up the good work. Now if only I could get them to open an actual store here in Virginia … hmmm.

I‘ve been paying a lot of attention to Starbucks as of late.  What began as an assignment for my MBA coursework has grown into an addiction.  For those of you keeping score at home, this is my third SBUX-related addiction.

Sadly, I’m not hooked on the tasty goodness of the Pumpkin Spice Latte or those delicious Cranberry Bliss Bars.  Instead, I’m a spectator witnessing an iconic institution … hmmm, how to phrase this? … over-roast itself.

A few weeks back, I described what makes for an excellent organization.  I was thinking about SBUX, as well as many other companies.  Don’t get me wrong, I’m not reversing the engines or changing course.  I’m not fickle.  Well, not that fickle.

But even excellent organizations don’t get “it” right 100% of the time.

You’re a coffee house, SBUX.  People COME TO YOU for coffee.  At HOME, people use your whole bean or pre-ground coffee.  So why-oh-why then would you willing associate yourself with the lowest common denominator in your industry’s product lineup?

I’m speaking of Via, which I blogged as being an 8oz. flavorless mistake with a coffee-like aroma.  The bigger questions regarding Via is: Why? What was the need, SBUX; was Folgers crystals posing a hostile takeover threat?  Are you testing the market’s perimeter; seeing if perhaps McDoanld’s will follow you here as well?  Or are you trying to create a monopoly so that you can become the Wal-Mart of coffee and thereby destroy your brand identity?

Up Close and Blurry is a high-level investigation into  . . .

ORGANIZATIONAL EXCELLENCE (?) – STARBUCKS

Introduction & Background

For all intents and purposes, there are effectively two Starbucks’: The first is the well-known, revered and reviled, coffee franchise that existed from 1971 through July 2008 Starbucks.  The second is the post-July 2008 Starbucks.

More is known about the former, as there is nearly 37 years of evidence to review.  The latter is the hopeful Phoenix, trying to be reborn from, and rebranded after its financial conflagration of July 2008.

That firestorm was the result of Starbucks’ pursuit of rapid and widespread  (read: unsustainable) and overzealous (read: reckless) expansion.  While the flames may have subsided, the ashes had not settled.  In July 2008, Starbucks began closing 600 stores and terminating 12,000 full- and part-time employees (Starbucks.com).  That was the announcement in July 2008; by January 2009, however, the company announced that the number of store closings would be increased to 900 (Flynn, 2009).

To their credit, Starbucks earned praise in the public relations realm for how they handled the closings.  They first notified employees, rather than announce to the media.  In addition, Starbucks leadership placed the responsibility for the need downsize on their own shoulders, as well as the poor global economy  (Schade, 2008, p. 10).

Little is known about the new Starbucks, other than what it is reporting to its stakeholders.  Regardless, for both Starbucks’, organizational excellence in all business areas is a seemingly paramount core value.  They strive to optimize, expedite, streamline and manage costs, all without sacrificing quality or injuring the mythical Starbucks experience.  Nevertheless, while the majority of their initiatives are spot on, others make one wonder what Starbucks was thinking.

Below, I break out a few areas of the Starbucks Corporation to detail their pursuit of organizational excellence.

Corporation to Consumer Interface

Understanding that its products, services, and overall experience are what customers purchase, Starbucks has invested heavily in Business Process Management (BPM).  While the true dollar figures are unknown, the extent of their efforts can be witnessed in the accounts below.

First: The Customer.

Starbucks conducts extensive research regarding its customers’ wants and needs.  This focuses heavily upon flavor, and there’s an entire team of coffee testers at the company’s Seattle headquarters (The science, 2009).  It also focuses on selection.  For example, the sale of espresso, which did not begin until 1982 when Howard Schultz, now CEO of Starbucks, experiences the drinks popularity in Italy and pushes the company to follow suit (A brief history, 2009).

Starbucks fumbled when it deviated from its core business, which it describes as “all things coffee” (Starbucks.com, 2009).  The introduction of foods beyond simple baked goods proved to be a debacle, one from which the company did not learn as they have launched, canceled and re-launched the initiative numerous times.  And while the average consumer did not notice, the company’s skeptics and shareholders did.

What stands out about this blunder is that, in my opinion, it demonstrates Starbucks’ misunderstanding of its market, meaning it is confused about whom it is serving (the customer) and with whom it is competing with (its competitors).  A company cannot have an achievable long-term strategy if these two inputs are shifting or unknown.

Second: The Store.

Each location is designed to be welcoming. This is a sensory experience, with sights, sounds, smells, and tastes recognized as playing critical roles.  Employees are told that Starbucks stores should be the customers’ “third place” – third to home and work, that is.  In fact, on their website’s jobs page, they describes the store as providing “a sense of belonging,” likening it to “a haven,” which provides escapism from “the worries outside, a place [to] meet with friends. It’s about enjoyment at the speed of life—sometimes slow and savored, sometimes faster.  Always full of humanity” (Starbucks, 2009).

A portion of that humanity was lost, however, when Starbucks optimized the store-building process utilizing a so-called kit of parts approach.  Opening six locations per day, the cookie-cutter was necessary, but it ultimately robbed the stores of their uniqueness, leaving customers with the feeling that Starbucks had no soul (Moore, J., & Williams, P., 2007).  As a result, Starbucks is now redesigning many of its locations based upon customer inputs and the corporation’s own research (Introducing a new store design, 2008).  New stores will feature local flavor, a more relaxed atmosphere, and new names.

Starbucks is renaming stores and removing the company’s name, logo and moniker, all in an effort to appear less corporate, more local, and more inviting (Allison, 2009).  This constitutes the third brand in the company’s line up, as they already own Seattle’s Best.  In my opinion, Starbucks is quickly venturing into brand-dilution territory.

Third: The Employee.

The Starbucks experience relies upon properly trained employees with positive attitudes serving quality products quickly.  Starbucks has gone to great lengths to remove the variables from the customer service process.  This includes extensive foundational training for all employees, from baristas to corporate leaders (Weber, 2005).  Additionally, it means adopting kaizen principles, ensuring that continuous improvement makes the entire process –for customers and employees alike– as efficient and positive as possible (Glover, 2008).

However, quite often the process does not always work, and the reason is simple: Starbucks’ process for churning out smiles and lattes did not grow with the company.  As Inc. Magazine’s Joel Spolsky (2009) discovered during a horrible Starbucks experience, Starbucks achieved its status by conducting operations research.  However, with the company’s rapid expansion, HR theory and store realities are divergent.  On an unofficial Starbucks site called Starbucks Gossip, employees and customers alike lament just how out of touch corporate seems to be from the front lines.

The Corporation and the Community

Starbucks operates within the framework of an extremely diverse Corporate Social Responsibility program.  Under the CSR umbrella is everything from Starbucks’ social agenda, to employee healthcare, to environmentalism.

First: The Employee.

Employees who work more than 20 hours per week are eligible for healthcare.  The company picks up 75% of the cost.  In a 2004 interview with BusinessWeek, Schultz reported that the company would spend more on employee healthcare costs than on its source product: coffee beans.  The rationale was simple: it’s the right thing to do.  But the reasoning is also personal, as Schultz reported that it is linked to his impoverished childhood, a childhood which he recounted bearing witness to his father’s “fractured American dream” due, in part, to a lack of healthcare (O’Connell, 2004).

Second: Society.

Starbucks’ social agenda includes rights for domestic partnership, universal healthcare, support of supplier and workplace diversity, and voting.  Its employee benefits include the standard fare, but they are available to same-sex or domestic partnership relationships (Starbucks.com, 2009).  It’s been involved for many years lobbying for universal healthcare, to include involving Sen. Bill Bradley in the effort, though Starbucks insists they are not involved in political activism (O’Connell, 2004).

Their CSR efforts include Starbucks RED, an effort to combat AIDS in Africa; Starbucks V2V, an online community action forum; and Starbucks Shared Planet.  The latter includes numerous CSR activities, including ethical sourcing/supplier programs, environmental stewardship, and community service (Starbucks, 2009). The company’s efforts extend as far away as Rwanda, where the company has established a partnership with coffee producers to provide certified-100% Fair Trade coffee (Starbucks.com, 2009).

The “All Things to All People Business” Model

Starbucks relentlessly pursues providing consumers with the highest quality products, services, and experience. If nothing else, Starbucks is an innovative tactician.  However, as with the previous areas, many of their business choices seem to be in contradiction with their espoused overarching strategy. For this reason, it is obvious that Starbucks has embraced the notion that failure is a learning opportunity, not a point of contention. Though, they may want to rethink the scope of their failure allowance, as it seems entirely too permissive.

The company’s product line goes far beyond drinks.  Starbucks has become as well known for their music as their odd array of names for drink sizes.  The drink size names, by the way, led to a hugely successful YouTube video wherein a customer enters into a Suess-ian tongue twister (Small is tall, 2008).  Later, Dunkin Donuts used the popularity of the original video to introduce its coffee to the market, as well as itself as the common person’s Starbucks.  This is quite similar to the McDonald’s coffee campaign that simply stated, “four bucks is dumb. now serving espresso,” (Ankarcrona, 2008).  The point being, Starbucks’ popularity and unpopularity has invited competition and given them a soapbox from which they can preach . . . while selling their own coffee.

The company has its own XM Radio channel, free iTune downloads on Tuesdays, and a line of CDs sold through their stores.  However, none of these are fairing well for the coffee purveyor.  It was reported that the average Starbucks was selling two CDs per week, though corporate disputes this and claims the music units sells 4 millions CDs per year (Sandoval, 2009).  Regardless, Starbucks announced that in-store CDs would be scaled back to four selections per-store, as the company “refocuses on [its] core business” (Sandoval, 2009).

Perhaps Starbucks has cleared away the “too big to fail” haze.  Whereas the company heretofore employed a top-down, command and control approach to business decision, they’ve now opened the forum to the consumer and employee. Since March 2008, Starbucks has been using a blog called “My Starbucks Idea,” to solicit ideas concerning their products, environment, and social involvement.  The site is active, with many employees, and even Howard Schultz himself, weighing in with ideas.  Still, the company is behind the power curve, as a site called Starbucks Gossip has been actively doing the same thing since August 2004.  Except, this site is not as polite with their comments as the company’s site (Romenesko, 2009).

Conclusion

Starbucks routinely receives industry and activist accolades; among them: “Best 100 Companies to Work For,” “Most Ethical Companies” “Most Admired Corporations” “100 Best Corporate Citizens” “Best LGBT Places to Work” and more. The list of honors, available on their website, is quite impressive and stretches back to the mid-1990’s (Starbucks.com, 2009).

Admittedly, the company does many things well and, to use a subjective term, correctly.  For example, as defined by Dessler (2009), Starbucks’ hiring practices are designed to ensure a candidate is suited to help the organization achieve its desired end goal.  The mandatory 24 hours of training within the first few weeks reinforces this.  And the company’s investment in more efficient processes, equipment, and policies all lend themselves to an environment that is supposed to enhance the Starbucks experience (Dessler, 2009, p. 11-13. Kinicki & Kreitner, 2009, p. 36-41).

According to Kinicki and Kreitner (2009), Starbucks is conducting its HR business correctly.  They have established Total Quality Management (TQM) principles, and reinforced them with policies and training (p. 11).  Nevertheless, one must question the choice to purchase an $11,000 espresso machine for every Starbucks location in the midst of closing 900 stores.   This is precisely what Schultz did after drinking an espresso made with a Clover espresso maker.  In fact, he thought the cup of espresso was so good that he bought the Clover  company (Hanon, 2008).  Meanwhile, 12,000+ employees are being terminated.

Additionally, as noted earlier, the corporate HR office in Seattle has become divorced from the realities of the front lines.  Operations processes should be focused on creating value, improving efficiencies, and enhancing the Starbucks experience, instead they appear to lack focus.  They obviously have a grasp on the big picture, as Kinicki and Kreitner (2009) explained, Starbucks has cultivated plenty of Human and Social Capital (p. 15).  Nevertheless, they are misspending that resource by neglecting the details.

That is a true statement of Starbucks by and large.  While the organization provides for its employees hierarchy of needs (a la Maslow), it fails to provide for its own.  The inability to remain focused on its core business has led to failure repeatedly, and these repeated failures have been within the same arena: The company’s brand identity.  Is Starbucks a music store? A café? A coffee bar? The MarComm professional and Life Cycle Manager in me fears that even Starbucks executives do not know.

Starbucks does many things very well.  They have built a successful empire with a loyal following, and they have set the standard for quality.  They have also illustrated that, minus the recent meltdown, a company can be extremely successful while financing 75% of their employees’ healthcare, respecting the environment, and upholding high standards of product quality, staff performance, and meeting the mythical Starbucks experience.  These attributes make them an excellent organization.

Where they appear to be falling short is in their focus on the core business, growing their organizational structure and procedures to reflect their current size, and delegating managerial authority to the correct levels.  These three areas:  1) Business strategy and planning, 2) business process management, and 3) operational management are the company’s vulnerabilities.   Push on any one of these too hard, and the organizational becomes a house of cards.

Organizational excellence rating: C+

References

A brief history of starbucks.

A full-bodied talk with mr. starbucks.

Coffee war brews between mcdonald’s, starbucks.

Dessler, G. (2009). A Framework for Human Resource Management (5th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

How hard could it be?: Good system, bad system.

Introducing a new store design.

Kinicki, A., & Kreitner, R. (2009). Oranizational behavior: Key concepts, skills & best practices. (4th ed.). Boston: McGraw Hill.

Preserving the Starbucks Counter Culture.

Small is tall.

Solving starbucks problems: loss of store soul.

Starbucks.com

Starbucks and kaizen.

Starbucks, awaiting recovery, says profit fell 77%.

Starbucks gossip.

Starbucks scaling back music offering.

Starbucks tests new names for stores.

The coffee fix: Can the $11,000 clover machine save starbucks?

The next starbucks.

The science of coffee.

]]> http://hrchitectvendornews.wordpress.com/2009/10/23/cornerstone-ondemand-recognized-for-311-percent-revenue-growth-by-deloitte%e2%80%99s-2009-technology-fast-500-%e2%80%a6from-cornerstone-ondemand/ Fri, 23 Oct 2009 19:40:47 +0000 mattlafata http://hrchitectvendornews.wordpress.com/2009/10/23/cornerstone-ondemand-recognized-for-311-percent-revenue-growth-by-deloitte%e2%80%99s-2009-technology-fast-500-%e2%80%a6from-cornerstone-ondemand/

Talent management software firm advances its ranking among the fastest-growing technology companies in North America

HRchitect featured Cornerstone OnDemand in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. Charles Coy participated in the HRchitect WebMingle on January 16, 2009. Cornerstone OnDemand participated in the Talent Management Systems Beauty Pageant in December 2008, where they were crowned the winner. Cornerstone OnDemand also participated in the Learning Management Systems panel on June 10, 2009 as part of theHRshow event. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation.

Cornerstone OnDemand Inc., a leading provider of Software-as-a-Service (SaaS)-based learning and talent management solutions, today announced it has advanced its ranking from no. 431 to no. 388 on Deloitte’s 2009 Technology Fast 500 list of fastest-growing technology companies in North America.  Rankings are based on percentage of fiscal year revenue growth during the five year period from 2004 to 2008.  Cornerstone grew 311 percent during this period. 

Despite the down economy, Cornerstone continues to outperform its competitors, enjoying triple-digit growth of new client bookings and a nearly 300 percent surge in active subscribers over the past year.  Cornerstone is also significantly expanding its global reach via the company’s strong-performing European division and strategic reseller partnerships with firms such as ADP Employer Services, which has more than 550,000 clients worldwide. 

“It is an honor to be recognized by Deloitte and the Technology Fast 500 as one of North America’s fastest growing technology companies,” said Adam Miller, President and CEO of Cornerstone OnDemand.  “Cornerstone’s momentum over the past few years can be attributed to the quality and innovation of our software, our dedication to providing best-in-class client service, and the success of our global sales teams and reseller channels.  We will continue to invest in these key areas to ensure the success of our clients and the continued growth of the company into 2010.”  

In addition to the Technology Fast 500, Cornerstone recently was ranked among the top 100 fastest growing private software companies in the U.S. by Inc. magazine.  Miller also was named 2009 CEO of the Year by the Technology Council of Southern California.

For more information about Cornerstone OnDemand, visit www.cornerstoneondemand.com.

 
Matt Lafata, HRchitect

Bug Music has been honored in Inc. magazine’s “Inc. 500: Fastest Growing Privately Held Companies” annual issue. Claiming #99 overall and #2 in Media, the only music publishing company to make the list, Bug Music was noted for their remarkable 1,564.5% three-year growth with annual revenues topping $77 million.

A trans-formative acquisition strategy, international platform expansion, and an innovative approach into new sectors of music publishing are the core corporate factors adding to Bug’s financial growth. Bug today boasts a catalog of over 250,000 songs with a significant majority of the Company’s earnings coming from music owned by Bug. Among the many corporate developments that have contributed to this performance include:
* July 2006 investment by Crossroads Media/Spectrum Equity Investors
* June 2007 secures $250,000,000 credit facility led by JP Morgan
* June 2007 acquisition of major independent Windswept Holdings, including the owned catalogs Trio/Quartet Music and Hitco Music
* August 2008 acquisition of Selectracks, establishing a significant presence in the production music segment and creating opportunities for Bug writers
* July 2006 to June 2009 – over 25 catalog acquisitions
* Continual top independent ranking in market share in Billboard top publishing charts
* A new partnership agreement with one of the music industry’s most prolific songwriting and producing companies, Arthouse Entertainment, co-owned by American Idol judge Kara DioGuardi
* The 2009 launch of a joint venture record label with global chart-topping band Kings of Leon and the label’s first album release with The Features “Some Kind of Salvation”
* New publishing and development agreements as diverse as the legendary Joan Jett and her Blackheart Records, Academy Award winners Three Six Mafia, punk rocker Iggy Pop, Kings of Leon, Grammy winning R&B/Hip-Hop producers Tim & Bob, rock icon Scott Weiland, indie hipsters Grizzly Bear and pop star Tina Parol

“We are ecstatic about the recognition we have just received from Inc. magazine,” said John Rudolph, CEO Bug Music. Bug Music recently registered its fifth consecutive quarter of market share growth in Q2, making the Company the leading independent music publisher with the largest quarter-to-quarter growth.

Outskirts Press, the fastest growing full-service self-publishing and book marketing company is among the top 5 companies that Inc. Magazine and Menlo Park,
California VC firm Foundation Capital cherry picked from the Inc. 500 list as being the “best of the best.”

To identify the best of the best, Inc. Magazine asked a panel of venture capitalists to review their annual Fast 500 list of the fastest-growing privately held companies in America. The Fast 500 was announced in the September issue of Inc. Magazine. Outskirts Press was the only self publisher on the list, at #268, with a 3-year growth rate of 850%. In the October issue, Inc. Magazine recognized 5 companies from the list, including Outskirts Press, as being the “best of the best.”

“I love the conceit of the company,” Foundation Capital’s Adam Grosser said. “Blogs and wikis have made it easy for people to get their views out there, but if you have something long to say—like a play or a book—then it’s incredibly hard.”

Not so for authors using the full-service custom self publishing services of Outskirts Press, which publishes approximately 160 unique, high-quality books each month. The competitive difference and contributing factor to Outskirts Press authors’ successes is that, unlike competing companies in the industry, Outskirts Press also offers their writers marketing support and services for book promotion after publication. Indeed, one Outskirts Press author, Gang Chen of Irvine California, recently earned over $111,000 in author royalties in just six months.

“In this day and age of blogs and quote-unquote ‘free publishing’, truly successful authors have the potential to separate themselves from the pack by publishing with a full-service, custom publishing company that provides support before, during and after publication,” said Outskirts Press CEO Brent Sampson.

The top five Inc. Magazine “Best of the Best” companies as identified by the panel of venture capitalists were Kiva Systems of Woburn, Massachusetts; SkullCandy of Park City, Utah; Centro of Chicago, Illinois; Outskirts Press of Parker, Colorado; and Enalasys of Calexico, California.

Look for the October issue of Inc. Magazine on newsstands and publish with confidence with Outskirts Press.

This post won’t find its place among my direct self-publishing and book marketing tips, but an recognized advancement in the publishing world worthy of mention.

Coming off a recognition as #268 on Inc. Magazine’s top 500 fastest growing privately held US companies, self-publishing option, Outskirts Press, was recently placed among Inc.’s “Best of the Best” as determined by a panel of leading adventure capitalists. Only 5 of the original 500 made the list.

The top five Inc. Magazine “Best of the Best” companies as identified by the panel of venture capitalists were Kiva Systems of Woburn, Massachusetts; SkullCandy of Park City, Utah; Centro of Chicago, Illinois; Outskirts Press of Parker, Colorado; and Enalasys of Calexico, California.

- Karl

Vantage Hospitality Group, headquartered in the Coral Springs Financial Plaza has become the only hotel company to receive a presitigious honor from Inc. Magazine for four years in a row. Vantage is once again included on Inc. Magazine’s 500/5000 list, an exclusive ranking of the nation’s fastest growing private companies. Vantage is located within the Coral Springs Community Redevelopment Agency (CRA) area of concentration and CFO on the CRA Board of directors.

          Vantage’s national acclaim, along with the accomplishments of other downtown companies, helps advance the CRA’s mission of attracting continued redevelopment to downtown Coral Springs. The city’s successful partnership with the CRA has resulted in previously completed projects including the One Charter Place redevelopment, Charter School improvements, Sample Road Facade Improvement Program, Sample Road Infrastructure improvements and the Downtown Pathways initiative which promotes dual purpose pathways that link the downtown area with other cultural and recreational activities.

Burlingham joined Inc. magazine in January 1983 as a senior editor and became executive editor six months later, a position he held for the next seven years. In 1990, he resigned and became editor-at-large. He subsequently wrote two books with Jack Stack, the co-founder and CEO of Springfield Remanufacturing Corp. and the pioneer of open-book management. One of the books, The Great Game of Business, has sold more than 300,000 copies. Another, A Stake in the Outcome, has also done well and gotten great reviews. Burlingham is currently an editor-at-large of Inc. magazine, co-founder of the Small Giant Community with Paul Spiegelman, author of Small Giants: Companies That Choose To Be Great Instead of Big, and co-author with Norm Brodsky of The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up.

Here is an excerpt from my interview of Burlingham. The complete interview is also available.

Morris: You suggest that all of the 14 companies have “the magic of mojo.” What does that mean and how is it evident?

Burlingham: I define mojo as the organizational equivalent of charisma. When a leader has charisma, you want to follow him or her. When a business has mojo, you want to be associated with the company. You want to buy from it, sell to it, work for it, wear its t-shirts and caps, read articles and books about it, go hear its leaders speak, and so on. I think of it as the feeling you get when you’re in presence of greatness in business. But I admit it’s a little like Justice Potter Stewart’s definition of pornography: It’s hard to define, but you know it when you see it.

Morris: Several large companies, Southwest Airlines for example, also seem to have “mojo.” Is it the same? Please explain.

Burlingham: Well, yes and no. There’s no question that large companies can have mojo as I’ve defined it—the organizational equivalent of charisma. But a company inevitably winds up having to make trade-offs as it grows. I know people who worked at Whole Foods when it was still relatively small, and CEO John Mackey was someone they actually ran into from time to time. There was a tremendous esprit de corps and a fanatical commitment to the quality of the products the company sold—especially the prepared products. People felt very close to one another, to the company’s leaders, and to customers and suppliers. You clearly can’t have that kind of intimacy in a company the size of Whole Foods today. But does it have mojo? I think so, although it probably varies from store to store.

I suspect the same is true of Southwest Airlines. What it had when it was a small airline flying out of Love Field is different from what it has now. Not necessarily better or worse. Just different. Of course, Southwest and Whole Foods also have a lot more influence now than they had when they were very small. Southwest has revolutionized the airline industry and set a new standard for excellence in commercial aviation. Whole Foods has helped change the eating habits of millions of people, not to mention the way our food is produced. Could it have done that if Mackey had decided to keep it a small giant, with one fabulous store in Austin, rather than expand to 275 locations? Probably not.

Morris: Once a company has “mojo” (however defined), what must it do to keep it?

Burlingham: Well, it must protect its gross margins, as the Reell example shows. Beyond that, it must focus on the relationships it has with all the groups of people it comes in contact with. If you think about it, that’s the overriding message of the small giants: They have great relationships with customers, suppliers, employees, neighbors, and other community members. If you want to hold onto your mojo, you need to keep nurturing those relationships, doing all the things you did to build them in the first place.

* * *

If you wish to read the complete interview, please contact me at interllect@mindspring.com.

Burlingham invites you to check out these Web sites:

http://www.smallgiantsbook.com/

http://www.smallgiantscommunity.com/default.aspx

http://www.theknack.info/

Despite economy, Cornerstone achieves record-level success in first half of 2009, announces strategic investments across the company to ready growth into 2010

HRchitect featured Cornerstone OnDemand in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. Charles Coy participated in the HRchitect WebMingle on January 16, 2009. Cornerstone OnDemand participated in the Talent Management Systems Beauty Pageant in December 2008, where they were crowned the winner. Cornerstone OnDemand also participated in the Learning Management Systems panel on June 10, 2009 as part of theHRshow event. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation.

Cornerstone OnDemand Inc., a leading provider of on-demand learning and talent management software and services, today announced that despite the current economic climate, the company has performed at record levels for the third straight quarter.  New client bookings for the first half of 2009 were up by more than 100 percent from the previous year, led by the addition of more than 742,000 new users.  Named among the top 100 fastest-growing private software companies in the U.S. by Inc. magazine, Cornerstone also recently announced plans for investing in the company’s continued growth. 

“Momentum is in Cornerstone’s favor,” said Adam Miller, President and CEO of Cornerstone OnDemand.  “Now is the time for us to step on the gas, advance the company’s strong competitive position, and ready the company for massive growth into 2010.  This includes investing in the success of our clients, in the quality and innovation of our software, in direct and indirect sales distribution, and in the development and success of Cornerstone’s valued team members.” 

Cornerstone is broadening the scope of its alliances operations in an effort to scale existing partner initiatives, expand the company’s referral network and improve partner enablement.  To lead these efforts, the company has promoted former Senior Director of Strategy and Research, David Somers, to Vice President of Alliances and Strategy. 

In addition to leveraging its relationship with ADP® Employer Services, the company is expanding its direct sales teams in order to increase Cornerstone’s share of mid-market business.  The move supports the recent launch of Cornerstone Business Edition, the company’s talent management solution built specifically for medium-sized organizations.  The sales team also is bolstering its vertical expertise, hiring specialists in key market segments such as healthcare and the public sector. 

Strategic investments and hires in other areas across the company, such as client services, consulting, product development and software infrastructure, allow Cornerstone to continue to scale its operations, serve its rapidly growing client base, further extend its international reach and significantly expand its market share. 

“While other talent management software vendors have faced workforce reductions, mergers and consolidations, Cornerstone has been the exception,” commented Miller.  “We are continuing to invest to ensure the success of our clients and the strength of our team.”

Other company highlights include: 

• Global Client Wins:  To date, more than 2.7 million active users in 141 countries use Cornerstone’s Software-as-a-Service (SaaS)-based solutions.  Second quarter client wins include American Bankers Association; Money Advice Trust; New York Presbyterian Hospital; ValleyCrest; two respected international non-profit organizations; a UK-based investment and insurance firm; and a leading European financial services company, among others.   
• Product Innovation:  In May, the company expanded its Succession Management platform.  Designed to help organizations better engage, motivate and retain valued employees, features such as detailed resumes, career preferences and job profiles lay the groundwork for major new functionality focused on employee career management.   
• Strategic Alliances:  Cornerstone has significantly expanded its global footprint via new strategic reseller relationships with premier organizations such as ADP Employer Services, with more than 550,000 clients worldwide, and Australia-based Talent2, the leading talent management and HR outsourcing firm in the Asia-Pacific region.  
• Empowering Communities:  The company continues to expand the Cornerstone OnDemand Foundation, which leverages the company’s expertise in workforce development, education and software deployment, as well as other organizational assets, for philanthropic and community benefit.  United Way of the Bay Area and Goodwill Industries of San Francisco, San Mateo and Marin Counties have joined Teach for America, Oxfam America and Save the Children as strategic non-profit partners of the Foundation. 

 For more information about Cornerstone OnDemand, visit www.cornerstoneondemand.com.

 
Matt Lafata, HRchitect

HARD TO WORK Sam Calagione (he’s the one with his feet on the table) and his employees sample a new batch of Festina Pêche in the brewery’s tasting room.

I love “The Way I Work” articles by entrepreneurs in Inc. magazine.  They recently ran a really great one, by Sam Calagione, the founder of Dogfish Head Brewery.  At the very end of the article, he revealed his evening reading habits:

I obsessively notch the pages, even when I’m reading fiction. If it’s notched up and folded back, it means it’s an actual idea that applies to Dogfish. If it’s notched down, it’s more about the feeling — part of what’s written reflects our off-centered philosophy. Every word that I read, I filter through this Dogfish prism. Every thought that I have in some way pertains to Dogfish. It’s kind of sick in a way — that Dogfish is that prevalent in my thought patterns. But after 5:30, I stop focusing on the nuts and bolts of the business and let my mind wander to the more fun and creative parts. I feel like that’s pretty healthy.

Ditto.  I am exactly like that.  I secretly feel kind of sheepish about this…I mean there is life beyond Grommet.  (And I still want my three sons to think I think about them 24/7, as is their natural birthright.)  But if you really love doing something (and you have a huge responsibility to do it well…) then  obsessiveness seems to be a requirement.

I’m not sure I could think about beer all day.  (Well on a really tough day I do, but only in a one-dimensional get-to-consumption way.)

Indecisive?

Hunch.com hopes you are – because it’s relying on your questions to build a community of answer-seeking users.

Inc. magazine recently profiled the company in its latest issue – and asked other business owners how Hunch can get the word out about its service. The company has benefited from steady positive buzz, but it hasn’t yet launched a formal marketing campaign. No sweat. Five entreprenuers offer different suggestions on how to put Hunch on the top of the heap.

Idea No. 1: Create Personality Profiles

John Vechey – co-founder of PopCap Games, a video game publisher in Seattle – thinks Hunch should keep track of users’ answers and use that information to create mini personality profiles. The more questions a user answers, the more refined the profile would become. Vechey thinks this tactic will keep people coming back to the site, and it will allow Hunch to add contextual advertising that “comes across as fun and highly appropriate for each person.”

Idea No. 2: Use Celebrities

“I would harness the power of celebrities,” said Anne-Marie Faiola, founder and CEO of Bramble Berry, a soapmaking supplier. She adds that Hunch could have a celebrity “question of the week.” When a celeb asks a question, Hunch can blog or Twitter the answer. Faiola thinks her method would result in more clicks on sponsored links, which is Hunch’s planned route of generating revenue.

Idea No. 3: Develop Partnerships

Genevieve Thiers – founder and CEO of Sittercity, an online community that connects parents with caregivers – thinks Hunch should partner with other Web sites. For example, she said, “Maybe Hunch could offer relationship advice on a site like Match.com or travel answers on a site like Orbitz.com.”

Idea No. 4: Focus on Social Integration

“Every time a user gets an answer to a question on Hunch, there should be an option to share the result on Twitter or Facebook,” said Gay Gaddis, founder and CEO of T3, a marketing firm that specializing in digital campaigns. “If people see their friends using the site, they will likely be intrigued to try it.”

Idea No. 5: Prove It Works

Cal McAllister – co-founder and creative director of the advertising agency Wexley School for Girls – thinks Hunch has the potential to be perceived as a fortune-telling tool instead of a functional tool. He offers two ideas for Hunch to prove it isn’t a hack: a) script a show online in which people choose a challenge, and for one day they make all their decision using Hunch, and b) appear at a big event where Hunch is demoed live – like on the JumboTron of a baseball game.

Caterina Fake – the brains behind Hunch (and also the co-founder of the photo-sharing site Flickr) – took these pitches into consideration, saying that she liked the ideas about creating personality profiles, partnering with other sites, and integrating social networks. But promoting the site through huge events and celebrities isn’t something she wants to do. “It doesn’t make sense to do something on a JumboTron, because we are online, and people find out about Web sites through other sites,” she said. “We also don’t feel like we need famous names to get the word out.”

What do you think? If you were tasked with providing a marketing idea for an online company to get its word out, how would you do it? Do you agree with the ideas above – or do you have something completely different to bring to the table?

Let us know by leaving your comment…

Inc. Magazine announced it’s prestigious Inc. 500 list today, and FTRANS is listed as #345.  From 2005 to 2008, FTRANS achieved a record 718.4% growth making it one of the fastest growing private companies in America.  Congrats to all of the FTRANS team for the accomplishment and hard work!

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By Deon Roberts, Online Roberts

New Orleans company iSeatz received a big honor when Inc. magazine named it the fastest-growing privately held company in Louisiana for the second year in a row.

The online travel reservation service, which started in New Orleans, has offices outside of Louisiana, including in other countries.

CityBusiness talked to CEO and founder Kenneth Purcell for a story about the honor. I found the following quote interesting.

“My absolute commitment is that any new person that we hire, if they want to work for iSeatz, they have to move to New Orleans or they don’t get the job,” he said.

It’s like one man’s attempt to try to reverse any “brain drain.” I wonder how many other New Orleans-based companies with offices elsewhere have the same stance.•