Moving with the Bigs: Consider the Risks
Mon Cheri Bridals: Master of Retention
Corrections or additions?
These articles by Bart Jackson and Michele Alperin were prepared
for the March 14, 2001
edition of U.S. 1 Newspaper. All rights reserved.
Opening New Worlds: Aleena Shapiro
Looking for a change of routine, perhaps a little
glamour?
Or personal entree into the world of international politics? If your
answer is “yes” and you have skills that would be valuable
to foreign businesses, you may want to consider international clients.
Aleena R. Shapiro did not make an explicit decision to seek
international clients. She stumbled onto them as a tax lawyer when
she was structuring international business deals for clients who
wanted
to minimize taxes paid to the United States government, avoid double
taxation, and meet the requirements of United States tax laws.
Shapiro is a partner in the New York law firm Shapiro and Wender LLP.
She and Judith Firth, managing director of WJM Associates, speak
on “Meeting Your Client’s Global Needs: Consulting Practices with
International Clients,” on Monday, March 19, at 6 p.m. at the
Institute of Management Consultants at the Doral Forrestal. Cost:
$65. Call 609-896-4457.
Shapiro finds that doing international work at her own firm has its
perks. When she left a large law firm to start her own, she brought
along a client who managed luxury castle hotels in Ireland. She says,
“I had originally worked as a junior tax associate in a large
firm, and suddenly I got to be the one visiting these hotels.”
Shapiro got a chance to experience the international art world when
a client in the United States was donating works by a family artist
to museums around the world. Once the deals were completed, Shapiro
was treated to museum openings of the artist’s work at exhibitions
in Germany.
Beyond the fun and travel, international work offers a chance to watch
political events unwind. When the Soviet Union collapsed, says
Shapiro,
Russians arrived in America to do deals. At first they did not
understand
capitalism, because — until 1990 — they had viewed all
capitalism
and all business as bad. When they began to be entrepreneurs, they
had to be taught that some things are good to do and some — even
though they are entrepreneurial and make money — are not good.
This work, says Shapiro, meant “sociopolitical and economic
involvement
in the world situation — where you are right in middle of what
is happening in world events.”
Shapiro offers suggestions to potential international consultants:
Focus on developed countries. When targeting a country,make sure it is worth your while. “Some countries have fewerbusinessopportunities and are not developed enough to appreciate what Americanbusinessmen can bring to them.”Join professional organizations in the countries you aretargeting . Because English is now the international businesslanguage,the opportunities for cooperation are even greater.Be aware of political and economic situations. Politicsin a target country can present obstacles to foreign businesses. InChina, for example, Shapiro finds that the government quashesentrepreneurialinstincts. “If you are representing people in the United Stateswho are manufacturing in China,” she says, “you must be awareof the potential for clients getting caught up with the governmentand losing out.” The Chinese government will not allow a foreignbusiness to own a controlling interest in a Chinese company, whichaffects the stability and longevity a foreign investor can expectfrom a business there.Expect cultural and language barriers. “Culturalbarriersare sometimes interesting and sometimes frustrating,” saysShapiro.She tells of a client who for the last six months has been tryingto give away property to the Catholic Church in Hungary. Shapiro,as intermediary, has found communications difficult. Every time eitherside writes a letter, it must be translated. Recently the Hungariansaddressed a letter incorrectly, causing a two-month delay.Coordinate work electronically. Shapiro advises stayingin touch with home electronically and taking notes while abroad. Sheis in the habit of dictating memos as she goes, because she findsit is easy to forget details after a long trip home.Shapiro entered the world of tax law almost serendipitously.After receiving both her bachelor’s and master’s degrees in historyfrom the University of Michigan, she taught high school for a coupleof years. After some time as a housewife with young children and lotsof volunteer work, she decided to take the LSATs on a lark. “Assoon as I started at NYU’s law school,” she says, “I knewit was the right thing for me — maybe because I was going toschoollater and knew nothing was perfect.”She was editor of the Law Review, graduated in 1981, worked forWillkieFarr and two other large law firms, and obtained a master’s in taxlaw from NYU. Shapiro was living in White Plains, commuting to NewYork daily, going to law school one night a week. She describes thisperiod as “probably the most excruciating period of my life.”In 1989 she started her own firm. Her older daughter is her partner.Her younger daughter and her husband are also lawyers.Shapiro’s last piece of advice to international consultants is tohave a little fun. She relates that upon landing in Dublin one Sundayafternoon, she rushed over to the James Joyce museum, then went toa bookstore and bought every one of Joyce’s books, and still madeit on time to her 7 p.m. business meeting. In Germany, she playedhooky from a meeting and went to Dusseldorf for a shopping trip. Shesays, “l like to find time on each business trip for a smallamountof personal experience and growth.”— Michele AlperinTop Of PageDiscrimination’s CostYou be the judge. Acme Engineering offers an entry levelposition. Two applicants show up. First comes the chief engineer’sold fishing buddy, Jake. He is a blonde, blue eyed, white male, under40 (a group virtually beyond the needs of discrimination protectionin the eyes of New Jersey law.) The second candidate, Sally is a blackfemale whose education, experience and skills totally outshine hermale counterpart. The chief hires Jake. Sally files a hiringdiscriminationsuit. Who wins? Why?These questions will be addressed when John Thurman speaks ata meeting of the Worldwide Employee Benefit Network on “A GPSfor EEO” on Tuesday, March 20, at 8 a.m. at the offices of SmithStratton Wise Heher & Brennan at 600 College Road East. Cost: $30.Call 609-987-6772.Following his small town Kentucky childhood, Thurman graduated fromOberlin, then attended Harvard Divinity School before obtaining alaw degree from Vanderbilt. “I’m not sure the divinity master’smakes me kinder and gentler,” he says, “but perhaps it doeskeep me a bit more honest.” As partner at the MontgomeryCommons-basedlaw firm of Farrell & Thurman, he specializes in employment and laborlaw.”The real problem lies in management recognizing a few trees ofemployment disparity,” says Thurman, “but then mistaking themfor the whole forest of employees falling under protected status.”According to New Jersey and federal law, employers can in no waydiscriminatebased on sex, ancestry, race, or disability. Also, genetic testingis illegal.Even if all these categories are considered, most managers fail tocarry the disparity potential beyond the basic hiring and firinginterviews.But the discrimination liabilities extend long before and after,stretchingout into a briar patch of costly potential blunders.Thurman recites a few of the more subtle, common practices that canget you sued:Unfair Employment Standards. Thurman cites the old 1960scase of Duke Power Co., which demanded a high school diploma of allemployees. Upon protests, a thorough examination of the communityled to the discovery that this requirement made possible employmentwith Duke completely — and illegally — racially lopsided.The company had to drop the standard.Whistle Blowing Protection. If, on one dark midnight,an employee sees his foreman dumping a truckload of the company’shazardous waste into Lake Carnegie, and reports it, he can claim”whistleblower protection.” An employer cannot legally fire a whistleblower. Previously, it was necessary to report the dumping to anoutsidesource, perhaps the EPA. Now the same protection is extended to thosewho report it to company management first. This allows the firm toclean its dirty laundry without airing it.Negligent Hiring. The employer who fails to checkreferencesand hires a person with a record of violence can find himselfpersonallynamed in a suit when fists start flying in the workplace. An employercan refuse to hire a woman because of her violent history, but cannot necessarily reject her solely because of her felony record.In addition, the fact that an employee lied will not automaticallyfree an employer from liability for discrimination. Thurman citesa case of a youth who was hired by a bank, then fired for lying abouthis age. “Even if he had lied about his age,” Thurman says,”the bank would still owe some damages for the unfair agediscrimination.”Favoritism. Herein lies the answer to the discriminationsuit of Sally vs. Acme Engineering. Sally loses, based on establishedprecedent, because favoritism is not actionable in unfair hiring,says Thurman. Jake had a prior claim of relationship/affection onthe hirer. Acme, under the law, holds the right to give its oldfriendspreferential treatment. This also gives managers the right to choose,within limits, specific individuals for new jobs in, for example,a corporate reshuffling. But watch out, this law only works if therelationship existed well before the hiring.Gender discrimination. This Hydra most frequently raisesher many heads during office restructurings and promotions. Managerstypically shuffle compensation, lateral moves, promotions, and officesizes with more of an eye toward immediate need than equalopportunity.”It becomes the job of the human resources professional,”says Thurman, “to act as the watchdog. He must review the entireoperation with an eye toward his people and challenge management to`prove your employee concerns to me.’”Complainants need to have a genuine grievance. “Frivoloussuits are now meeting some tough courts,” Thurman says. Employeesseeking to unfairly rob deep pockets by launching a suit because,”Hey, what’s the worst that can happen?” are finding out.Judgments can include the employer’s legal fees, court costs, anda fine.— Bart JacksonTop Of PageMoving with the Bigs: Consider the RisksThe financial resources of large companies constantlytempt the smaller players in the corporate world. But for the smallerentrepreneur to establish a sales relationship with these corporationsis not easy, and the obstacle is mistrust. “The presumption onthe part of a large company,” explains Katherine Kish,”isthat they are taking more of a risk working with small companies.”To increase trust and engender confidence, the small company mustmake itself look more like a large company. Katherine Kish of MarketEntry, John Cassimatis of the Pacesetter Group, and JamesScott of Scarlett Systems are speaking on “Landing the bigone! Is this the best move for your company?” on Wednesday, March21, 7:30 p.m. at the Princeton Chamber of Commerce Business CouncilBreakfast. Steven Portrude of Harwill-Express Press is themoderator.Cost: $21. Call 520-1776.When seeking a large corporate client, small companies must preparecarefully and be aware of potential problems:Do your homework. “Learn everything you possibly canabout the organization you want to sell to,” says Kish. Theprocessis much faster today, when necessary information is quickly availableon the Web.Find strategic partners. Big companies are looking forcomplete solutions. Says Kish: “If you are small, how can yoube mighty?” A small company can cover any weaknesses in itsproductor service by allying itself with strategic partners whose qualityof work and service complement its own. A strategic partner, forexample,may offer superior project management capabilities. With the helpof partners, a small company can appear bigger and stronger, andpresenta more sophisticated face to a large corporation.Have reference accounts. Use references to show that thesmall company has done similar work for similar companies. Sharevignettes,or case studies, that document what the company accomplished foranothercompany, for example, increasing sales by 14 percent by institutingyour benchmark program at the XYZ corporation.Create a powerful niche. If a small company is the bestor the only source within a geographic area of a specialized serviceor product, a large company is more likely to choose it as a businesspartner. An example would be a printer who, in addition to all theusual printing services, specializes in hand-assembled product samplekits. A nearby pharmaceutical that needs such kits for their salespeople to hand to doctors would be likely to hire this printer.Persevere. Big companies tend to make it difficult topenetrate their elaborate communication systems. Be willing to investthe time it takes to get through the system.Submit precise proposals and statements of work. Precisionmakes it clear to potential clients that you understand the work thatis required. It also avoids the problems and misunderstandings thatoccur when one of the parties to an agreement is not totally clearabout what is to be done. Although smaller companies can afford morecasual working relationships, large companies have many more peopleinvolved in decisions, in deliverables, and in fulfillment of workand hence require clear contracts, proposals, and statements of work.Expect a long sales process. “Be prepared for thefact that it often takes longer to sell to a large organization,”says Kish. A seller must be prepared to jump through many hoops andgo through many layers to get to a decision. She describes situationswhere negotiating the contract takes so long that the work was nearlycomplete before the contract was signed. “Big companies respondon their own time tables,” she says. “They often forget thatthere is a small company out there that needs to make commitmentsto supplies and to gear up.”Expect multiple meetings before a decision is reached.Different layers of decision-makers must be part of any agreement,and they usually cannot meet at the same time.Give the right message to the right people. “Whendealing with multiple layers of people in a large organization,”says Kish, “make sure you are saying the right things to peoplewho can hear them.” Talk to users about function; to managersabout the advantages of a service or product; and to decision-makersabout the benefits.Don’t get sidetracked spending time with the wrongpeople .”It is easy for a large organization to absorb all the time asmall company has to give and more,” warns Kish. If too much timeand energy are lost, a potentially successful venture can turn intoa money-losing proposition.Understand the business. “If you are working witha large company,” maintains Kish, “you have to be less ofa sales person and more of a business person.” A small companymust make a special reach to understand a corporation’s business,its concerns, and its timetable.Be a great communicator. Speak with confidence and inspireconfidence.Be visible in the community. Kish suggests that it isimportant for smaller entrepreneurs to be involved in good works withlocal charities and non-profits. These organizations provide a neutralground where they can show capability and leadership. They can alsobe a good place to meet people from large corporations and to buildrelationships with them. “People buy from other people,” saysKish, “from people they trust.”Kish has a BA from Allegheny College and a master’s in educationfrom Antioch University. She has worked for NBC, Harcourt BraceJovanovich,and Singer. In 1982 she created Market Entry, a strategic marketingand business development firm that specializes in launching orrepositioningproducts, services, or companies (E-mail: info@marketentryinc.com).Kish has also been active in fighting discrimination against womenin business, including leadership in a class action suit on behalfof 2,000 women while she was at NBC. She has been active in NJAWBOsince 1987, where she helped develop the EXCEL entrepreneurialtrainingprogram for women and minority business owners.The biggest challenge for a small company seeking a large corporateclient is to reduce risk by increasing familiarity. “Risk is whenyou are first working with people you don’t know or don’t look likeyou or are from another geographic area,” says Kish. “Everytime that there is an unfamiliarity, it is a little more difficultfor people to work together.”— Michele AlperinTop Of PageMon Cheri Bridals: Master of RetentionThe key to attracting and retaining employees lies inthe personality of the owner, says Stephen Lang. Given that40 percent of his 60 employees at Trenton-based Mon Cheri Bridalsworked for him at other companies, he would appear to be a masterof the art.Lang, Bill Hogan of the Hogan Leadership Group, and RobertWest of the Karr Barth Benefits Group speak on “Attractingand Retaining Talented Employees in a Tight Labor Market” onWednesday,March 21, at 8 a.m. at the Greenacres Country Club, sponsored by theMercer Chamber of Commerce. Cost: $25. Call 393-4143.Lang’s 10-year-old wholesale bridal and formal wear firm is locatedon Whitehead Road (www.moncheribridals.com), and one of his modelsis scheduled to be featured on the television show “Friends”on Thursday, March 15. His recipe for success is multi-faceted,involvingboth the way he interacts with his employees and the kind of corporateculture he has established:Mentor employees. “People’s classical definition ofan employee is someone who works for you,” says Lang. “Mydefinition is someone who works with you.” He describes himselfas being like a coach for a professional sports franchise, gettingthe most out of each individual to produce a winning team. Langbelievesit is an employer’s responsibility to guide employees to fulfillingtheir potential. “Too many people expect employees to reach alevel of professionalism on their own,” he says.Empower employees. Although the owner is key in creatingan attractive and effective business culture, eventually he musttransferresponsibility to his employees. “I try to leverage myself throughthe people around me,” he says. “If I take a steering wheeland put my hands in the 10 a.m. and 2 p.m. positions, I want my peopleto push my hands off the wheel and take control.”Look for a good fit. Choose employees whose personalitiesfit with the business climate. Lang told the story of a recentintervieweewho had skills he needed, but was quite timid. At the second interviewhe raised the issue of her timidity and told her that if she werewilling, he could work with her to overcome it; otherwise, he says,”my managers would eat her up.” She decided not to take thejob.Develop potential. Lang tries to place his employees wheretheir natural skills will make them successful. He points out thathis head merchandiser started off as a customer servicerepresentative,and the person who handles international sales began as anadministrativeassistant.Promote from within. “People know that if they comehere,” we run so lean that there are always future opportunities,”Lang says. “If you are good, you’ll get the nod.” Hence Langencourages his managers to groom for succession.Create a team feeling. Lang brings together his employeeson occasion to “feel the sensation of success.” He tells themthat each person’s efforts are interrelated and ultimately affectsales.Foster a positive climate. “So many people go to workand hate their jobs,” says Lang. For years, he disliked the peoplehe worked for and felt he was treated like a number. “I try totreat people as people,” he says. To him, a company is just aname, and its essence is the people who work there. He encourageshis people to resolve differences of opinion. “I don’t toleratefighting, screaming, and yelling,” he says. “This is yoursecond family, and you have to treat people accordingly.”Make working fun. Lang always tells his employees,”Thebest thing in the world for me and you would be to sit in sweats andwatch TV.” But, he says, “coming to work should be the secondbest thing to being retired and on your own.”Offer generous salaries and benefits. Lang pays hisemployeeswell, and has always picked up at least 50 percent of the cost ofmedical, dental, eyeglass, and prescription coverage. He also matchesemployees’ 401K contributions up to six percent of their salaries,and brings in consultants to coach his employees on how to investtheir money so that they will be able to retire at 65. “Anemployeeis an asset like anything else, and lots of employers forgetthat,”says Lang. “A happier employee is going to stay with you,”he says.Offer a flexible work environment. “We are flexiblein understanding family needs,” says Lang, “and nobody isfearful about talking about them.” One woman with small childrennow works full-time from home, responding to E-mail from the company’swebsite. Another employee does not begin work until 9:30 a.m., becauseshe has to get her kids off to school first.Have a vision. Lang says a business must have a philosophyto be successful, and he believes it is the owner’s responsibilityto fashion the business’ persona. “It should emanate from thetop and cascade through the organization,” he says.Demand excellence. “I demand excellence every dayfrom my people, because I demand it from myself,” says Lang.”Iask them to go the extra mile.”Ask for a little slack. Although his employees may notagree with his every decision, Lang expects them to be loyal, because”his batting average is so high,” and they should give himlicense to be wrong 20 percent of the time.Go the extra mile. One employee of Lang’s company is ahandicapped person, who does a variety of odd jobs. The company hasadopted him and the three people who live with him at a group housesponsored by the state. He says, “He is so important to us herethat at Christmas we have stopped doing a formal exchange of gifts.Instead we hold a program for the people in his house.” Employeesbring in gifts for the employee and his housemates. “I can’t tellyou what that did for morale,” he says.Lang graduated in 1977 from the State University of New York at Albanywith a bachelor’s in business administration and received an MBA fromHofstra University in 1979. For the next four years he worked inmarketingand product development, first for American Cyanamid and then forGulf & Western. He then worked for two bridal gown manufacturers,Alfred Angelo in Pennsylvania and Bridal Originals in St. Louis. In1991, he started his own company. He contacted an Asian supplier andinvited her to become his partner. She accepted, and Mon Cheri wasborn. Its product line includes wedding gowns, both formal andinformal,mother of bride, flower girl, first communion, cocktail, and promdresses.Lang hires with a long view. “When I hire you,” he tellsprospectiveemployees, “I make the artificial assumption that you’re goingto retire here.”— Michele AlperinPrevious StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
