The internet is a wonderful thing!

Sam Thacker, the Finance Expert at AllBusiness.com (He helps companies find financing),  someone I have never met who lives in another part of the country, posted an announcement on Sunday about my “Are you smarter than an economist?” contest.

Although Sam and I live in different parts of the country and have never met, it is clear from reading each other’s posts that we both do our best to provide sound advice on our blogs, advice that businesses can really use.

Here is the link to his blog about my blog.  While  you are there, take a few minutes to read some of his posts and/or listen to his podcasts.  They are packed with great info!

Every manager knows the axiom “What gets measured is what gets done,” but too often managers overlook key measurements.

An example: When cash is tight, and profits are lagging, managers, boards of directors and lenders often focus on reducing inventories.  Measuring dollar value of inventory and inventory turns can certainly be useful; however, if  there is no report that shows the AGE of the inventory (how old the inventory is and whether or not it is obsolete) and no report that measures stockouts, inventory reductions may produce undesirable, unintended consequences.

When a company holds old or obsolete items and reduces the size of its inventory, the dollars tied up in inventory do decline, but the % of  “bad”  inventory  increases, and the entity may find itself without  materials needed to deliver orders on time and/ or to stock its shelves with the products that customers want.

In addition, if a company does not write down old or write off obsolete inventory (and, yes, this still happens!), the company is inflating its bottom line.  Since financial statements are the scorecard of the business, if financial statements are not accurate, then management’s decisions are based upon misleading information.

Renee’s Rule™: What gets measured matters.

Today, I was interviewed by TheDeal.com about prospects for Eddie Bauer after its Chapter 11 filing.  Click here to read the interview.  (It’s short.)

Some years ago, I recruited a first-rate controller to a client company.  To accept the position, she had to sell her home and move to a new city to take a job in a troubled company. She proved to be a wonderful person who did a superb job.

Part of her job was to try to get better rates for health insurance, so she contacted several benefits brokers, one of whom landed the account.

Today, I learned that the “winning” broker and controller are getting married, and I am as happy as I can be about it!

In turnarounds, I am always an agent of change–but this is the first time I know about  that I was an agent of romance!

The “headline” of my post today is the headline of the June 9th post on the VC Task Force Blog.  The post features some of the high points of Kristin Jones’ recent interview of me.

If you are not familiar with VC Task Force, it is a Bay Area-based organization designed to assist all stakeholders in the venture community.  Take a peek–Lots of heavy hitters are involved.

When I’ve abandoned almost all hope of ever finding good customer service anywhere ever again, I stop by Pearl Ace Hardware to reassure myself that there IS actually ONE place that really “gets it.”

Pearl Ace Hardware may be the best store on the planet. On-line reviews reflect this, and all of my friends and neighbors feel the same way.  I’ll bet that this is one retailer that  is profitable  in spite of the downturn.

Why? Because this store truly understands the marketing equation:

Renee’s Rule™:  Providing what your customers want/need + great customer service = loyal customers +  steady stream of revenue.

They ALWAYS have what I need.  They ALWAYS have knowledgeable, friendly staff available to help.   No problem finding what I seek; no trouble finding someone to answer questions; no long check-out lines; no surly clerks.   It is Customer Service Heaven on Earth!

When I check out, I inevitably find myself saying to the clerk, “I just love this store!”   (And trust me, Reader, I am P-I-C-K-Y.)

Some retailers compete by having the largest selection of merchandise–being a “one-stop-shop.”

Some compete by having great “customer service”–being super-nice to customers.

Too many businesses have neither; too few manage to have both.

If every cloud really does have a silver lining, perhaps the silver lining of this downturn will be that we will see a return to first-rate customer service.  After all, survival may depend on it.

Renee’s Rule™:  There is a connection between customer service and sales.